Asian chip stocks staged a powerful rally on Thursday after Nvidia's blockbuster earnings and guidance reaffirmed the AI demand narrative, while Samsung Electronics averted an immediate strike that had threatened global semiconductor supply chains.
Nvidia reported first-quarter fiscal 2027 revenue of $81.6 billion, an 85% jump year-over-year, beating already elevated expectations. The chipmaker also authorized an additional $80 billion in share buybacks and raised its dividend, underscoring its cash-generating strength. The results sent ripple effects across Asia.
SoftBank soared 20% in Tokyo, adding roughly $35 billion in market value, its sharpest rally in years. The conglomerate's majority-owned chip designer Arm Holdings climbed 15%. SoftBank's heavy AI bets, including over $30 billion in OpenAI, suddenly looked more credible to investors after fiscal 2025 results showed $45 billion in gains tied to that stake.
The rally extended well beyond SoftBank. Taiwan Semiconductor Manufacturing Co. (TSMC), Nvidia's key manufacturing partner, rose about 2%. South Korea's SK Hynix, central to high-bandwidth memory for AI chips, jumped 8%. Japan's Renesas gained 7%, Tokyo Electron advanced 5.4%, Advantest added 2.8%, and Samsung Electronics climbed 6.7%. The MSCI Asia ex-Japan index surged 2.6%, while South Korea's KOSPI jumped more than 7%.
Samsung received an additional boost after its union suspended planned industrial action following a tentative pay agreement, easing fears of a strike by nearly 48,000 workers that could have disrupted one of the world's most important semiconductor supply chains. A shareholder group warned the deal might be illegal, leaving some risk on the table.
The Nvidia effect also lifted Japan's Nikkei 225 by 3.6% and Taiwan's benchmark by 3.5%. CEO Jensen Huang said growth prospects remain strong as governments and companies continue to invest heavily in AI infrastructure. Analysts at Wedbush summed up the sentiment: “The chip landscape remains Nvidia's world with everybody else paying rent.”
Beyond chips, calmer signals from the Strait of Hormuz—tankers carrying about 6 million barrels of oil passed through—helped ease supply concerns. Brent crude rose 0.6% to $105.68. However, minutes from the Federal Reserve's April meeting showed policymakers still worried about inflation and open to further rate increases, keeping upward pressure on US yields.
