Asian semiconductor stocks advanced on Wednesday, recovering from a prior week's selloff, as investors positioned ahead of Nvidia's second-quarter earnings report scheduled for the same day.
South Korea's KOSPI index led regional gains with an 1.8% increase, while Japan's Nikkei 225 rose 0.9% and China's CSI 300 climbed 1.2%. The broader TOPIX index in Japan added 0.6%, while Hong Kong's Hang Seng and Shanghai Composite each gained 0.8%. The Philadelphia Semiconductor Index, which had registered one of its steepest weekly declines of the year, showed signs of stabilization.
Among individual movers, LARGAN Precision surged nearly 10%, while Sony advanced 1.5%. Taiwan Semiconductor Manufacturing (TSMC) gained 0.2%. South Korean chipmakers SK Hynix and Samsung Electronics rose 1.9% and 1.8%, respectively, supported by aggressive shareholder return policies including buybacks and dividend increases. Chinese tech names also participated in the rebound, with SMIC up 3.5%, Xiaomi gaining 4.3%, Meituan rising 2.5%, Tencent adding 1.5% and Alibaba up 1.8%. Kioxia fell 2.2%, TDK slipped 0.4% and Murata ended flat.
The recovery followed a heavy selloff in global tech and semiconductor stocks driven by elevated U.S. Treasury yields, profit-taking after an AI-driven rally and concerns over long-term financing costs. Nvidia, the sector's bellwether, entered its longest losing streak since 2022 before Wednesday's rebound.
Nvidia is expected to report second-quarter fiscal revenue of approximately $92 billion and adjusted earnings per share of $2.09, according to consensus estimates. The company's suppliers, including SK Hynix and Samsung Electronics, which provide high-bandwidth memory for AI data centers, remain closely tied to Nvidia's performance trajectory.
Investors remain cautious amid risks including high financing costs for high-growth valuations and political resistance to rapid expansion of AI data center infrastructure.
