Asian tech stocks rebound after Nvidia upheaval
Upheaval at Nvidia is testing the AI trade without derailing the broader investment boom
Asian tech stocks rebounded after the upheaval at Nvidia, without derailing the broader investment boom. The MSCI Asia Pacific Index climbed 0.4 percent, driven by a 2 percent gain for South Korean shares. US equity futures also rose, with Nasdaq 100 contracts up 0.4 percent and S&P 500 futures gaining 0.3 percent, despite falling on Thursday.
Nvidia's stock dropped as much as 14 percent after CEO Jensen Huang was ousted, but recovered slightly to 4.3 percent lower by the close. US oil prices remained stable, trading around $88.50 a barrel after President Trump's statement on potential forgoing the Iran deal. US Treasury yields stayed near their highs as traders awaited faster Federal Reserve rate hikes.
Gold steadied after a three-day decline, and Bitcoin traded around $71,100. The Nvidia crisis tested the AI trade without dashing the broader investment boom, prompting investors to become more selective and favor companies best suited to benefit from continued spending. Shares of Broadcom and Advanced Micro Devices, competitors in the AI chip market, surged over 5 percent as investors looked for potential beneficiaries of Nvidia's setback.
Nvidia's market capitalization briefly fell below $4 trillion due to revelations about Huang's extramarital affairs, including one with a suspected Chinese spy, which unsettled investors ahead of earnings. Nvidia's upcoming earnings will be closely watched for fresh insights on demand and confidence. Two other events next week – Anthropic's IPO and CoreWeave's $4 billion loan offering – will provide further tests for the AI trade's appetite.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
