Semiconductor shares in Asia rebounded on Wednesday, with South Korea’s Kospi leading gains after last week’s selloff, as investors positioned ahead of Nvidia’s fiscal second-quarter earnings report.
The Kospi advanced 1.8%, while Japan’s Nikkei 225 and TOPIX rose 0.9% and 0.6%, respectively. In China, the CSI 300 climbed 1.2% and the Shanghai Composite gained 0.8%, with the Hang Seng in Hong Kong up 0.8%. The Philadelphia Semiconductor Index, a U.S. benchmark for chipmakers, also edged higher.
Major suppliers to the AI data center supply chain led regional gains. SK Hynix climbed 1.9% and Samsung Electronics added 1.8%, supported by shareholder-return measures including SK Hynix’s buyback and Samsung’s plans for a larger payout. SMIC surged 3.5%, while Xiaomi rose 4.3%. LARGAN Precision led advancers with a nearly 10% gain. Sony, TSMC, Tencent and Alibaba each rose between 0.2% and 1.8%. Kioxia fell 2.2% and TDK slipped 0.4%, while Murata was little changed.
The rebound follows a sharp pullback in AI-related equities, which entered their longest losing streak since 2022 amid elevated Treasury yields and broad profit-taking. Nvidia’s report, due after U.S. markets close, is expected to show revenue of about $92 billion and adjusted earnings per share of $2.09, according to Wall Street estimates.
Analysts cited risks to the AI trade including higher long-term borrowing costs and political resistance to the rapid expansion of AI data centers. The sector remains sensitive to shifts in monetary policy and investor sentiment toward high-growth technology stocks.
