Asian technology shares ride high on AI optimism after Nvidia’s ‘stunning’ results – business live
Asian technology shares rose after Nvidia reported quarterly revenue of $96bn, nearly double the previous year, and forecast $108bn for the third quarter, above Wall Street expectations. The results revived confidence in AI-related investments after recent technology share sell-offs, reinforcing Nvidia’s importance as a barometer of demand for artificial intelligence infrastructure.
Nvidia shares gained 4.7% in after-hours trading to $219.53, while South Korea’s Kospi rose 1.3% and Samsung Electronics climbed 3%; Chinese, Singaporean and Taiwanese markets also advanced, though Japan and Australia fell. Nvidia, valued at about $5tn, said demand for its Blackwell AI chips remained ahead of supply, but analysts cautioned that investors may later question whether the large spending on AI infrastructure can sustain such rapid revenue growth and generate adequate returns.
- Nvidia’s strong results lifted Asian technology shares.
- AI chip demand remains ahead of supply.
- Investors still question the boom’s long-term durability.
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Artificial intelligence has become a major focus for technology companies, which are spending heavily on data centres and specialised computer chips to develop and run AI systems. Investors often watch chipmakers closely because their sales can indicate how much demand there is for this equipment.
Nvidia is a US company best known for designing powerful graphics and AI chips. Its products are used by large technology firms and cloud computing providers, while Asian companies such as Samsung and Taiwanese chip suppliers play important roles in making components and equipment for the wider industry.
Share prices in technology markets can move together when expectations about AI spending change. The sector’s growth depends on companies continuing to invest, and on those investments eventually producing services and profits that justify the cost.
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The case for
Nvidia’s results provide unusually concrete evidence that AI investment is translating into exceptional demand, rather than resting solely on speculation. Supporters argue that revenue nearly doubling, guidance above expectations and Blackwell chips remaining supply-constrained show that companies see real strategic value in AI infrastructure; the resulting rise in Asian technology shares reflects confidence in a broad productivity and innovation cycle.
The case against
Critics can accept that current demand is strong while questioning whether it justifies valuations and spending plans built around prolonged hypergrowth. They argue that customers are committing vast sums to infrastructure before the commercial returns from AI are fully proven, so any slowdown in investment, supply normalisation or disappointing end-user revenues could expose the sector to a sharp reassessment.
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