Asian stocks, particularly semiconductor manufacturers, saw significant gains, with a closely watched gauge of chipmakers experiencing its largest single-day increase since April 2025. This rebound followed a turbulent period where the group had seen its biggest monthly slide since 2008. The optimism was largely fueled by Alphabet's plans to spend up to $200 billion this year on artificial intelligence computing power, which investors believe will translate into increased orders for Asian suppliers. Analysts like Josh Gilbert from Etoro APAC & Mideast noted that this confirmed the continued acceleration of the AI build-out, benefiting the underlying infrastructure.
Key beneficiaries included SK Hynix Inc., which saw its shares climb as much as 6.5% and derives over 7% of its sales from Alphabet. Taiwanese chip designer MediaTek Inc., reportedly developing custom processors for Alphabet, also rose by as much as 5.2%. South Korean chipmakers Samsung Electronics and SK Hynix both jumped more than 2%. The Kospi, a bellwether for AI investments, added 2.5%, while MSCI’s Asia Pacific equities gauge increased by 0.8%.
The broader tech sector also saw strong performance, with Microsoft Corp. surging 16%, adding roughly $450 billion to its market value, and Amazon.com Inc. jumping after reporting accelerated cloud-computing revenue for the fifth consecutive quarter, easing concerns about its AI spending returns. UBS Chief Investment Office's Ulrike Hoffmann-Burchardi, while constructive on the AI growth story, advised investors to manage concentration risk by diversifying into defensive tech stocks. Despite the rally, caution remained as Nasdaq 100 futures dropped 0.3% and Alphabet slid more than 3% in extended trading due to its higher-than-expected capital expenditure outlook for 2026, reaching as much as $205 billion. Meta Platforms Inc. also announced commitments of almost $700 billion in future spending for AI data centers and cloud computing.
While the rebound was significant, some strategists, like Michael Ball from Markets Live, viewed it more as a "positioning squeeze than the start of a durable risk-on move." Investors are now eagerly awaiting earnings from Microsoft, Meta Platforms, and Amazon.com for further guidance on capital spending. The focus for future earnings calls is shifting from mere AI ambitions to the return on invested capital, as highlighted by Mark Malek from Siebert Financial. Apple Inc. retreated after its sales grew slower than anticipated in China and its services business.
