Asian technology shares surged on Wednesday, led by a record earnings report from South Korean chipmaker SK hynix, which helped restore confidence in the artificial-intelligence trade after weeks of jitters over heavy capital spending and profitability.
SK hynix, a key supplier of high-bandwidth memory chips used in AI servers, said third-quarter operating profit jumped 632% year-on-year to 7.03 trillion won (€4.7 billion), its sixth consecutive quarter of record revenue and profit. The company cited explosive demand for its advanced semiconductors, a signal that the AI boom is translating into real cash flows.
“While Wall Street argues over whether the AI arms race can keep financing itself, SK hynix has just reminded the market that somebody on the other side of all that capex is receiving the cheque,” said Stephen Innes, managing partner at SPI Asset Management.
The upbeat mood was reinforced by Anthropic, the AI startup behind Claude, which revealed in its IPO filing that first-half revenue surged about 1,300% and that it plans heavy investment in computing infrastructure. The filing, released Monday, was followed by a $63 billion (€54.4 billion) financing package from Broadcom, Citi, Blackstone and Morgan Stanley to build new capacity for Anthropic.
“The AI trade has undoubtedly received a healthy shot in the arm from Anthropic's filing, with its incredible revenue growth, improving compute economics and substantial commitments to future infrastructure investment reinforcing the longer-term opportunity across the AI supply chain,” said Chris Weston, head of research at Pepperstone.
Asian markets surge, European futures follow
In Seoul, SK hynix shares jumped nearly 9%, while rival Samsung Electronics, which reports earnings Thursday, added more than 8%. The Kospi index closed up over 6%. Tokyo’s Nikkei 225 climbed more than 1%, with chipmaker Kioxia soaring over 10% and Advantest and Tokyo Electron gaining 3% and 4% respectively. Taipei’s market was lifted by TSMC, while Hong Kong, Shanghai, Sydney, Singapore and Wellington also advanced.
The rally tracked gains on Wall Street, where the Nasdaq rose more than 1% on Tuesday. European futures pointed to a firmer open, with investors in Frankfurt, Paris and Amsterdam watching the tech sector closely. The Stoxx Europe 600 technology index has been volatile this month as markets weighed the sustainability of AI-driven valuations.
“European investors are taking their cues from Asia and the US,” said a senior trader at a Frankfurt-based asset manager. “The SK hynix numbers are a reminder that the AI supply chain is global, and European chip equipment makers and software firms are part of it.”
Fed decision and Middle East tensions in focus
Later on Wednesday, the US Federal Reserve will announce its policy decision. Markets expect rates to remain unchanged, but attention will focus on the statement and comments from Chair Kevin Warsh for hints about a possible December move. A hawkish tone could temper risk appetite globally.
Meanwhile, oil prices rose more than 1% as investors monitored the results of Israel’s general election. Polls suggested a tight race between Prime Minister Benjamin Netanyahu’s Likud party and the opposition, with Netanyahu vowing to form a new coalition and work with US President Donald Trump to eliminate what he called the “existential threat” posed by Iran.
For European readers, the tech rally offers a counterpoint to broader concerns about inflation and geopolitical instability. The AI boom has been a key driver of equity markets on both sides of the Atlantic, and European companies—from ASML in the Netherlands to Infineon in Germany—are integral to the semiconductor supply chain.
As the earnings season continues, with Microsoft and Alphabet reporting later Wednesday and Amazon, Apple and Intel on Thursday, investors will look for further evidence that AI spending is translating into profits. The SK hynix result, and Anthropic’s filing, have provided that evidence for now.
