Tech stocks soar as SK hynix adds to rising AI confidence
Technology firms surged across Asia on Wednesday after blockbuster earnings from chip giant SK hynix helped boost optimism in the AI trade ahead of results from Wall Street titans Microsoft and Alphabet.
Technology stocks rose across Asia on Wednesday following strong earnings from chipmaker SK hynix, which added to growing confidence in the AI sector ahead of results from major US tech companies Microsoft and Alphabet. Oil prices increased as investors watched Israel's upcoming election, which could impact Prime Minister Benjamin Netanyahu's strategy against Iran.
After a recent dip due to concerns over high investment spending, profitability, and financial health, AI-linked firms regained momentum. SK hynix reported a staggering 632% increase in third-quarter operating profit to $62.8 billion, driven by soaring demand for its advanced semiconductors. The company has now reported record revenue and operating profits for six consecutive quarters.
Analyst Stephen Innes highlighted that SK hynix demonstrated that the companies benefiting from the AI arms race are the ones actually receiving the money. This boost in AI optimism followed similar filings from Anthropic, the parent company of Claude AI, which reported a massive 1,300% revenue surge in its first half, and Broadcom, which secured a $63 billion financing deal to expand infrastructure for Anthropic.
The AI sector's positive outlook has been reinforced by commitments to future investments. SK hynix's shares surged nearly 9%, and rival Samsung showed an eight percent increase. The Seoul Kospi index climbed over 6%, while Japan's Nikkei 225 rose more than 1%, with Kioxia surging over 10%. Other Asian markets also saw gains, including TSMC in Taiwan and chipmakers in Hong Kong, Shanghai, Sydney, Singapore, and Wellington.
US tech giants Microsoft, Alphabet, Amazon, Apple, and Intel are scheduled to report earnings later in the day. However, traders are also watching the Federal Reserve's policy decision, with expectations of a potential interest rate hike in December. Meanwhile, crude prices jumped more than 1% following Israel's general election results, with Netanyahu vowing to form a new coalition and form a partnership with US President Donald Trump to confront the alleged threat from Iran.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
