A powerful relief rally swept through Asia-Pacific financial markets today, propelled by record-breaking earnings from US chipmaker Nvidia that have reignited global investor confidence in the artificial intelligence sector.
Nvidia Fuels Market Optimism
The rally was triggered after Nvidia delivered another set of impressive, market-topping results. Investor sentiment was further buoyed by the upbeat forecasts from Nvidia's CEO, Jenson Huang, who provided a rosy outlook for the future of AI technology. His comments helped send shares roaring higher across the region, turning the trading session into a significant upswing.
Major Indices Post Significant Gains
The positive momentum was felt across key Asian markets. In Japan, the benchmark Nikkei index climbed 2.6%. South Korea’s KOSPI index also registered a strong gain of 2%. The most impressive performance was seen in Taiwan, where the TW50 index jumped by a substantial 3.6%.
The 'Virtuous Cycle' of AI
Ipek Ozkardeskaya, a senior analyst at Swissquote, highlighted that Nvidia's results were not just impressive but also record-breaking. She suggested that a key driver of the market's powerful reaction was CEO Huang's declaration. "What might have made a difference in the market’s reaction is Huang saying that 'we’ve entered the virtuous cycle of AI,'" Ozkardeskaya noted. Huang elaborated that "The AI ecosystem is scaling fast – with more new foundation model makers, more AI startups, across more industries and in more countries. AI is going everywhere, doing everything, all at once." This vision of pervasive, accelerating AI adoption provided the fuel for the day's substantial stock market gains.
