Asian stock markets climbed Thursday following chipmaker Nvidia's impressive quarterly results that surpassed Wall Street expectations. The tech company's 73% revenue jump to $68 billion helped calm investor concerns about artificial intelligence investments paying off.
Markets across Asia experienced gains Thursday following impressive financial results from technology giant Nvidia, though U.S. futures declined as investors processed the chipmaker’s performance that exceeded analyst predictions.
Japan’s Nikkei 225 reached the historic 59,000 milestone for the first time before settling with a 0.2% increase to close at 58,715.33. SoftBank Group, which focuses heavily on artificial intelligence ventures, saw its stock price jump 3.5%, while Tokyo Electron, another chip manufacturer, dropped 2.8%.
Japanese markets received additional support when Prime Minister Sanae Takaichi selected two economists known for supporting low interest rate policies to join the central bank’s board.
South Korea’s Kospi experienced a significant 2.3% rally to 6,222.29, powered by technology sector gains. The index broke through the 6,000 barrier for the first time Wednesday and has climbed an impressive 44% year-to-date, recovering from political turmoil that culminated in former President Yoon Suk Yeol receiving a life sentence.
Samsung Electronics, South Korea’s largest publicly traded corporation, soared 5.5%, while memory chip producer SK Hynix advanced 2.5%.
However, not all Asian markets participated in the rally. Hong Kong’s Hang Seng declined 0.4% to 26,656.29, and Shanghai’s Composite index slipped 0.1% to 4,144.08.
Australia’s S&P/ASX 200 managed a 0.5% gain to 9,174.50, while Taiwan’s Taiex increased 0.2% and India’s Sensex traded 0.3% higher.
Nvidia’s financial performance carries significant weight in global markets due to its status as the world’s most valuable corporation and largest component of the S&P 500, while also leading the artificial intelligence technology revolution.
The California-based company reported quarterly revenue that soared 73% compared to the previous year, reaching $68 billion. Management also projected $78 billion in revenue for the upcoming quarter, surpassing what analysts had anticipated.
Company CEO Jensen Huang emphasized continued strong demand, stating that demand for Nvidia chips is still “skyrocketing.”
During an earnings conference call, Huang declared: “AI is here, AI is not going to go back.”
Following the earnings announcement after Wednesday’s market close, Nvidia shares gained 0.2% in after-hours trading.
The strong financial results helped reduce investor anxiety about whether artificial intelligence investments represent genuine value and will generate returns, though market participants remain cautious.
Thomas Mathews, who leads Asia Pacific markets at Capital Economics, wrote in Thursday research that “strong profit growth, as emphasized by recent earnings reports,” including Nvidia’s performance, supports optimism for S&P 500 performance in 2026. He projects the index will reach 8,000 by year-end.
Wednesday’s U.S. trading session saw the S&P 500 climb 0.8% to 6,946.13. The Dow Jones Industrial Average advanced 0.6% to 49,482.15, while the Nasdaq composite posted a 1.3% gain to 23,152.08.
In early Thursday commodity trading, U.S. benchmark crude oil increased 16 cents to $65.58 per barrel, while Brent crude, the global standard, rose 21 cents to $71.90 per barrel.
Precious metals declined Thursday, with gold prices dropping 0.3% and silver falling 2%.
Currency markets saw the U.S. dollar weaken to 155.89 Japanese yen from 156.39 yen, while the euro strengthened to $1.1817 from $1.1812.