Tech Stocks Surge in Asia Amidst Strong Earnings and AI Optimism

Published on 28 October 2026 – 6:32 GMT+1

Market Reaction to Earnings Reports

On Wednesday, technology stocks across Asia experienced a substantial boost following the impressive earnings report released by SK hynix, a leading semiconductor manufacturer. The report indicated a remarkable operating profit increase of 632%, reaching $62.8 billion (€54.2 billion) for the third quarter, primarily driven by the soaring demand for its advanced semiconductor products.

Impact on the AI Sector

This surge in profitability comes at a time when investor sentiment in the AI sector was beginning to waver due to concerns over significant investment spending and profitability metrics. However, SK hynix’s performance has reignited confidence, with analysts noting that it serves as a reminder of the substantial returns on investment from the ongoing AI revolution. Stephen Innes from SPI Asset Management stated, “While Wall Street argues over whether the AI arms race can keep financing itself, SK hynix has just reminded the market that somebody on the other side of all that capex is receiving the cheque.”

Industry Developments Fuel Optimism

Further encouraging signals were sent by Anthropic, the parent company of Claude AI, which reported a staggering 1,300% revenue increase in its IPO filing. Additionally, a financing initiative worth $63 billion (€54.4 billion), announced by Broadcom in collaboration with major financial players such as Citi, Blackstone, and Morgan Stanley, aims to expand capacity for Anthropic. Chris Weston from Pepperstone remarked, “The AI trade has undoubtedly received a healthy shot in the arm from Anthropic’s filing, reinforcing the longer-term opportunity across the AI supply chain.”

Regional Stock Movements

The positive sentiment in the tech sector was reflected in market movements. Shares of SK hynix jumped nearly 9%, while its South Korean competitor Samsung saw over an 8% increase ahead of its forthcoming earnings report. Consequently, the Kospi index in Seoul surged over 6%. Meanwhile, the Nikkei 225 in Japan climbed more than 1%, with notable gains from companies like Kioxia, Advantest, and Tokyo Electron.

Impending Reports and Economic Outlook

Investors are also keenly awaiting earnings reports from major tech players such as Microsoft and Alphabet, scheduled for release later today, with Amazon, Apple, and Intel to follow on Thursday. Additionally, attention is focused on the Federal Reserve’s impending policy decision. While a steady interest rate is anticipated, analysts will closely analyze Chair Kevin Warsh’s commentary for indications regarding future rate adjustments, particularly a potential hike in December.

Geopolitical Influences

In parallel, crude oil prices experienced a rise of over 1%, influenced by the outcomes of Israel’s general elections, which are pivotal for Prime Minister Benjamin Netanyahu’s ongoing strategies concerning Iran. As election results unfolded, Netanyahu expressed a commitment to form a new coalition, and his stance includes a collaborative effort with U.S. President Donald Trump to address threats posed by Iran, contrasting with opposition candidate Gadi Eisenkot’s call for change.

In summary, the performance of SK hynix and other developments within the tech sector have fostered a renewed sense of optimism in Asia’s markets, especially amidst significant evolutions in the AI landscape and geopolitical dynamics.

Additional sources • AFP