Asian chip stocks rebounded on Wednesday, with South Korea’s KOSPI leading regional gains as investors positioned ahead of Nvidia’s upcoming earnings report, which is poised to test the resilience of the AI trade.
The KOSPI advanced 1.8%, while Japan’s Nikkei 225 rose 0.9% to 66,262.16, extending a modest recovery after a period of volatility. China’s CSI 300 climbed 1.2%, and the Shanghai Composite added 0.8%, reflecting cautious optimism across major regional markets. Hong Kong’s Hang Seng gained 0.8%, contributing to the broad-based advance.
Among individual movers, LARGAN Precision surged nearly 10%, outpacing gains at SK Hynix and Samsung Electronics, which both rose around 1.8%. Sony added 1.5%, while Taiwan Semiconductor Manufacturing (TSMC) edged up 0.2%. Kioxia declined 2.2%, and TDK slipped 0.4%, with Murata little changed. SMIC jumped 3.5%, while Xiaomi, Meituan, Tencent, and Alibaba all posted gains between 1.5% and 4.3%.
The rebound follows a sharp selloff last week, which pushed Nvidia into its longest losing streak since 2022. Elevated U.S. Treasury yields and profit-taking contributed to the downturn, leaving the AI trade at a critical juncture. Nvidia’s fiscal second-quarter results, due Wednesday, are expected to provide clarity on demand for AI chips. Wall Street forecasts revenue of about $92 billion and adjusted earnings per share of $2.09.
The earnings release will serve as a key test for investor sentiment, with the broader AI trade closely watching for signs of sustained demand amid rising borrowing costs and market volatility.
