Market Overview

Asian chipmakers and AI‑related equities surged sharply on Friday, mirroring an overnight rally in U.S. tech stocks. Samsung Electronics (ticker 000660) jumped 29.95%, while SK Hynix (005930) rose 26.81%, recouping much of their July declines. Despite these gains, Samsung remains down 21% for the month and SK Hynix is on track for a 35% drop year‑to‑date.

Index Performance

South Korea’s KOSPI (KS11) surged over 18% on the day, yet the index is still more than 20% below its July start. Japan’s Nikkei 225 (JP225) climbed 4% Friday, but remains down 8.1% for July. The broader Asian market reflected similar strength, with the Nikkei’s listed gain of +3.86% in the headline snapshot.

Leading Movers

  • Softbank Group rallied nearly 14%.
  • Tokyo Electron (8035) advanced 6.24%.
  • Advantest (6857), a key Nvidia supplier, surged 15%.
  • TSMC (2330) rallied 10%, reinforcing its status as the world’s largest contract chipmaker.
  • Hon Hai Precision Industry (2317) rose 9.2%.
  • Chinese AI stocks joined the rally: Z.AI up 15.5% and Minimax up 13%, the latter unveiling a new advanced AI model.

U.S. Tech Earnings Influence

U.S. earnings lifted sentiment: Microsoft shares jumped +15.51%, and Amazon rose +3.90% after reporting a stellar June quarter driven by cloud and AI revenue growth. Microsoft did not raise its capital‑expenditure guidance for the year, easing concerns over overstretched AI spending. In contrast, Apple, Meta, and Alphabet posted modest results that did not dominate market narratives.

Trading Dynamics

The rally was amplified by month‑end bargain buying, as investors re‑entered positions after an extended July rout in tech equities. While concerns over stretched AI valuations and rising U.S. interest rates persisted, the earnings beat and the influx of buying pressure kept the sector’s momentum alive.

Outlook

The article notes that recent earnings suggest AI‑related spending and chip demand are unlikely to decelerate in the coming quarters, supporting continued optimism for the sector despite lingering valuation debates.