U.S. Tech Earnings Rekindle AI Investment Confidence, SK Hynix and Samsung Shares Surge

Following strong financial results from Microsoft (MSFT-US) and Amazon (AMZN-US), investment momentum in artificial intelligence (AI) has reignited, sparking robust buying across global markets. South Korean and Japanese semiconductor stocks experienced a collective surge on Friday (31st).

South Korean tech giant SK Hynix (KR000660) stood out with exceptional performance, seeing its share price surge over 25% during trading in Seoul. If sustained, this rally could mark the largest single-day gain in the company's history.

Samsung Electronics (KR005930) also delivered strong results, rising over 20%, which lifted supply chain partners such as LG Innotek and Seoul Semiconductor, up 11.2% and 7.8% respectively.

This wave of optimism quickly spread to Japan's semiconductor market. Chip equipment manufacturers led a broad-based rally, with Advantest's stock soaring nearly 18%, Tokyo Electron rising 9%, and both Disco and Lasertec gaining over 12%. Renesas Electronics also climbed more than 10%.

Notably, SoftBank Group, a key barometer for AI investment due to its stake in UK chip design leader Arm, was also swept up in the market frenzy, with shares surging over 9%.

This global rebound in tech stocks closely mirrored the strong overnight performance in U.S. markets. The iShares Semiconductor ETF (SOXX-US) rose more than 8% last night, indicating investors are actively repurchasing shares of chipmakers tied to the AI theme.

Andrew Jackson, Head of Equity Strategy at Ortus Advisors, noted that Microsoft's better-than-expected quarterly results acted as a catalyst for market sentiment, effectively reversing recent selling pressure on tech stocks and reigniting strong demand for risk assets and the future of artificial intelligence.