Media365
South Korean semiconductor giants SK Hynix and Samsung Electronics staged a powerful comeback on Friday, with shares soaring more than 25 per cent and 20 per cent, respectively, after blockbuster earnings from Microsoft and Amazon reignited investor confidence in artificial intelligence (AI) spending.
The rally followed a sharp rebound in U.S. technology stocks overnight, where the iShares Semiconductor ETF (SOXX) surged more than 8 per cent as investors returned to AI-linked chipmakers after stronger-than-expected cloud business performance from the two technology giants.
SK Hynix was on track for its biggest single-day gain on record, while Samsung Electronics also posted one of its strongest sessions in years. The rally extended beyond the two heavyweights, with LG Innotek rising over 11 per cent and Seoul Semiconductor gaining nearly 8 per cent.
The optimism spread across Asia’s semiconductor sector. In Japan, Advantest surged nearly 18 per cent, Tokyo Electron climbed close to 9 per cent, while Disco and Lasertec advanced more than 13 per cent and 12 per cent, respectively. Renesas Electronics also gained over 10 per cent, and SoftBank Group, seen as a key AI investment proxy due to its stake in Arm Holdings, jumped more than 9 per cent.
The surge marks a dramatic turnaround after semiconductor stocks suffered heavy losses earlier this week amid concerns over stretched AI valuations and rising competition from Chinese memory chipmakers.
Investor sentiment improved after Microsoft reported stronger-than-expected Azure cloud growth, reinforcing confidence that demand for AI infrastructure remains robust. Amazon also beat analysts’ expectations on second-quarter revenue, driven by continued strength in its cloud computing business, prompting its shares to rise sharply in after-hours trading.
Market participants viewed the earnings as evidence that spending on AI infrastructure remains healthy despite concerns over escalating capital expenditure.
According to Andrew Jackson, Head of Equity Strategy at Ortus Advisors, Microsoft’s quarterly results triggered a strong “risk-on” rally in AI-related stocks. He noted that investors were reassured after Azure exceeded expectations while the company maintained disciplined capital expenditure, suggesting the market continues to reward profitable AI investment rather than aggressive spending at any cost.
The latest rally underscores how closely global semiconductor stocks remain tied to the earnings and investment outlook of major U.S. technology companies. With AI demand continuing to drive cloud infrastructure investment, investors are once again betting that chipmakers supplying advanced memory and computing hardware will remain among the biggest beneficiaries of the AI boom.
