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Asian tech shares rise on AI optimism
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The gist
Asian tech shares rose after Nvidia reported doubling quarterly revenue to nearly $100bn. The AI trade's revival signals sustained demand for chips despite recent sell-offs.
Background
Nvidia, the world's most valuable company with a $5tn market cap, reported second-quarter revenue of $96bn, doubling from a year earlier, and forecast third-quarter revenue of $108bn, above Wall Street expectations. CEO Jensen Huang declared the AI industry had reached a 'golden age', boosting confidence in the AI trade after a recent sell-off in tech shares. Asian markets, particularly South Korea and Japan, have been major beneficiaries of the AI frenzy.
How it unfolded
- Aug 26, 2026Asian stocks stuttered as investors awaited Nvidia's earnings, with oil prices falling on hopes of Strait of Hormuz reopening.
- Aug 26, 2026Nvidia reported after market close: quarterly revenue doubled to nearly $100bn, with Q3 forecast above expectations.
- Aug 27, 2026Asian tech shares rose on AI optimism; South Korea's Kospi gained 1.5% to 6,909.81, and Japan's Nikkei rose 0.6%.
Who’s saying what
- Analysts
- Kathleen Brooks of XTB described Nvidia's figures as 'nothing short of stunning'.
- Expert
- Susannah Streeter of Wealth Club said the 'AI juggernaut is rumbling on' with Nvidia smashing expectations.
- Caution
- Investors remained cautious about whether massive AI spending can turn profits, as seen in the earlier sell-off.