Asian tech stocks rally on SK hynix earnings and AI optimism

Technology shares across Asia gained on Wednesday following SK hynix's report of a 632% increase in third-quarter operating profit to US$62.8 billion, driven by strong demand for its advanced semiconductors. The company said it has posted record revenue and operating profit for six consecutive quarters, prompting analysts to note that the AI sector is receiving substantial financial backing.

Stephen Innes of SPI Asset Management commented that while Wall Street debates the sustainability of AI spending, SK hynix's results demonstrate that capital investment is yielding returns. Anthropic, the firm behind Claude AI, disclosed a first-half revenue rise of about 1,300% and announced significant upcoming capital expenditures, further reinforcing optimism about the AI supply chain. Chris Weston of Pepperstone highlighted the company's revenue growth and planned infrastructure investments as evidence of a long-term opportunity in the sector.

SK hynix shares climbed nearly 9%, and Samsung, which reports earnings on Thursday, rose more than 8%, lifting South Korea's Kospi index above 6%. Japan's Nikkei 225 advanced over 1%, led by chipmaker Kioxia, which jumped more than 10%, while Advantest and Tokyo Electron also posted gains. Markets in Taipei, Hong Kong, Shanghai, Sydney, Singapore and Wellington followed suit, and the Nasdaq in New York added over 1%.

Investors are awaiting earnings from Microsoft, Alphabet, Amazon, Apple and Intel, as well as the Federal Reserve's policy decision, which is expected to keep rates unchanged. Attention also turned to Israel's general election results; Prime Minister Benjamin Netanyahu indicated a willingness to work with President Donald Trump on regional security issues, while opposition candidate Gadi Eisenkot called for a new administration.