Chipmakers surge on AI spending hopes as investors look past Middle East tensions

Asia stocks climb as chipmakers rebound on AI spending hopes despite Iran tensions By Investing.com

Investing.com -- Asian stocks rallied on Friday, led by a sharp rebound in semiconductor shares, as investors looked past renewed Middle East tensions to refocus on the long-term artificial intelligence investment theme following fresh signs that chipmakers are preparing for another wave of spending. The gains came despite another escalation in the Middle East after fresh U.S. strikes on Iran drew retaliatory missile and drone attacks against U.S.-aligned countries, keeping risks around the Strait of Hormuz and global oil supplies firmly in focus. Investors instead focused on signs that the AI investment cycle remains intact after another week of heavy capital spending announcements from major chipmakers. Nasdaq 100 Futures rose 0.3% and S&P 500 Futures gained 0.1% in Asian trade. Unlock premium AI, semiconductor and macro insights with InvestingPro AI spending narrative regains momentum The rebound marked a sharp reversal from this week's technology-led selloff, with South Korea once again setting the tone for regional trading. The KOSPI surged 4.2%, clawing back part of this week's sharp losses after officially entering bear-market territory on Thursday, although the benchmark remained on track for a weekly decline of over 6% so far. Samsung Electronics Co Ltd (KS:005930) rebounded 4.9% after leading this week's selloff, while SK Hynix Inc (KS:000660) gained 1.5% after pricing its $26.5 billion U.S. American depositary share offering, which attracted demand exceeding seven times the shares available. SK Hynix's ADSs will begin trading under the ticker SKHY, giving U.S. investors direct access to one of Nvidia's biggest high-bandwidth memory suppliers. Despite its recent correction, the stock remains up roughly 680% over the past 12 months. The improved sentiment came after Micron Technology Inc (NASDAQ:MU) said it would increase planned U.S. investment to roughly $250 billion through 2035 to expand memory-chip production. Japan followed South Korea higher, with the Nikkei 225 climbing about 2%, trimming its weekly loss to roughly 0.9%, while the TOPIX gained 0.7%. Sentiment was boosted after reports that Japan's Government Pension Investment Fund (GPIF) is considering increasing its allocation to domestic equities, providing a fresh tailwind for the broader market alongside renewed buying in technology stocks. Murata Mfg Co (TYO:6981) climbed about 3.9%, Kioxia Holdings Corp (TYO:285A) gained roughly 5.7% after Bain Capital completed its exit from the flash-memory maker on Thursday. Taiwan markets were closed for a public holiday. Geopolitics remain in focus, data-heavy week ahead Markets also monitored renewed exchanges between the United States and Iran after fresh military strikes and retaliatory attacks further strained the fragile ceasefire reached last month. While oil prices remained supported, investors largely shrugged off geopolitical risks, keeping their attention on corporate investment and earnings prospects. Meanwhile, this week's central bank meetings highlighted diverging policy paths across the region after Bank Negara Malaysia kept its overnight policy rate unchanged at 2.75%, while the Reserve Bank of New Zealand raised its official cash rate by 25 basis points and signalled further tightening may be needed. Focus now shifts to a busy week of regional catalysts, with China's June trade figures, second-quarter GDP, retail sales and industrial production, Singapore's advance GDP estimate, India's June inflation report and the Bank of Korea's policy meeting expected to shape sentiment across Asian markets. Elsewhere, Hong Kong's Hang Seng climbed 1.8% to its highest level since June 17, while mainland China's Shanghai Shenzhen CSI 300 and Shanghai Composite added 0.2% and 0.4%, respectively, as investors continued positioning for further policy support from Beijing ahead of next week's trade data. Singapore's FTSE Straits Times Singapore rose 0.5%. Australia's S&P/ASX 200 gained 0.7%, supported by uranium miners after Australia and India agreed to deepen cooperation on uranium exports. Paladin Energy rose about 5%, Boss Energy jumped more than 8%, and Deep Yellow rallied around 9%, reflecting optimism that the agreement could strengthen long-term demand for the country's uranium alongside the global nuclear power buildout.

Wall St futures dip as traders assess AI boom, fresh Iran tensions By Investing.com

Investing.com - U.S. stock futures were hovering around both sides of the flatline on Tuesday, with investors assessing both the sustainability of the artificial intelligence boom and renewed Middle East tensions. Get premium Wall Street insights with InvestingPro - now 60% off By 06:01 ET (10:01 GMT), the Dow futures contract had risen by 120 points, or 0.2%, S&P 500 futures had dipped by 8 points, or 0.1%, and Nasdaq 100 futures had fallen by 262 points, or 0.9%. The main averages on Wall Street rose on Monday, pushing the Dow up above the 53,000 level for the first time. Driving sentiment was a jump in technology stocks, particularly chipmakers like Advanced Micro Devices and Western Digital. Broadcom also advanced on the news that it was partnering with iPhone-maker Apple to develop new custom chips. The Philadelphia semiconductor index, which tracks the chip sector, rebounded after a decline last week. Although debate has swirled around the sustainability of massive spending on AI, demand appears to remain robust for the high-end memory chips and data centers powering the nascent technology. Samsung Electronics provided further proof of this on Tuesday, when the South Korean firm unveiled preliminary quarterly operating profit which was almost 20 times higher than a year ago. Operating profit came in at 89.4 trillion won in the quarter ended in June, or around $58 billion, compared to 4.7 trillion in the corresponding quarter last year. The total also surpassed income generated in 2024 and 2025, combined. Still, Samsung's stock fell by more than 6% in Seoul trading, hinting at the sky-high expectations investors have for chip manufacturers and the broader AI boom. The tech sector is now grappling with "a fresh bout of doubt and pain this morning," analysts at Vital Knowledge said in a note. Shares of chip stocks globally sold off on Tuesday. "The reaction to Samsung speaks to one of the biggest risks facing markets over the coming weeks: Q2 earnings results are likely to be quite robust on an absolute basis [...], but unlike with the Q1 season, expectations are presently very bullish [...], which means the bar is quite elevated," the analysts wrote. Much of the focus this week is also on the publication on Wednesday of minutes from the Fed's June meeting. At the gathering, the central bank left interest rates unchanged at a range of 3.5% to 3.75%, although several officials projected that a borrowing cost hike may be coming this year. Meanwhile, new Fed Chair Kevin Warsh has stressed that he does not want the Fed to offer forward guidance on rates, but did note at an event last week that inflation risks have eased. The market is divided over the Fed's interest rate trajectory will follow with Warsh at helm of the Fed, analysts at Neuberger said. According to the CME FedWatch Tool, traders now see about a 56% chance of a rate hike as soon as September, down from 60% before the release of the employment figures. Oil prices have broadly retreated following an interim ceasefire deal between the U.S. and Iran in June, yet edged higher once again on Tuesday amid reports of new attacks on vessels in the Strait of Hormuz. Meanwhile, U.S. payrolls data last week was softer than anticipated. Beyond rates, investors will be keeping tabs on President Donald Trump's trip to Turkey for a NATO summit due to begin on Tuesday. Trump has been at odds with Washington's European allies, especially over the war in Iran. On Monday, Trump said the U.S. would either notch a long-term peace deal with Iran or "finish the job," suggesting that military options remain on the table as Iran adopt a defiant stance during the funeral of former Supreme Leader Ayatollah Ali Khamenei, who was killed by strikes at the beginning of the war in late February. Elsewhere, the quarterly corporate earnings season will gather pace this week, with Levi's Strauss & Co, PepsiCo (NASDAQ:PEP), and Delta Air Lines (NYSE:DAL) all slated to report. Investors will also be SpaceX's inclusion in the Nasdaq-100 on Tuesday, an event expected to generate elevated trading volumes alongside continued scrutiny of the AI sector's momentum.

Wall Street climbs, oil slides as investors bet on AI growth over Middle East tensions

WASHINGTON, July 10 (Reuters) - Stocks climbed and oil prices slipped somewhat as investors retained AI-related enthusiasm and shrugged off the ongoing dispute between the U.S. and Iran. All three major U.S. indices ended the day higher Friday, with the Dow Jones Industrial Average rising 0.29%, the S&P 500 climbing 0.42%, and the Nasdaq Composite gaining 0.29%. MSCI's gauge of stocks across the globe was last up 0.4%. While the renewed back-and-forth attacks have further eroded the fragile three-week-old U.S.-Iran ceasefire, markets have mostly taken developments in the Middle East in their stride, although investors continue to eye oil prices and the potential for ensuing inflation. SK HYNIX'S U.S. DEBUT South Korean chipmaker SK Hynix hit U.S. markets Friday with a boom, as its U.S.-listed shares jumped 14% in their Nasdaq debut, after the firm raised about $26.5 billion, indicating strong investor appetite to gain exposure to the AI supply chain. The blockbuster offering, which will finance new factories and equipment to meet surging AI chip demand, is set to be the world's second-biggest share sale after SpaceX's record-breaking IPO last month. Oil prices took a step back Friday, as investors awaited clarity on the fraying ceasefire between the U.S. and Iran. U.S. President Donald Trump said Friday that the two nations will continue to negotiate, but the June agreement to halt military action was "over." Both nations claimed military actions in recent days in the Gulf, reigniting a conflict that upended global energy trade by disrupting navigation through the Strait of Hormuz. Despite looming concerns, U.S. crude prices fell 0.74% to $71.55 a barrel, while Brent fell to $75.99per barrel, down 0.41% on the day. "Oil prices have also remained remarkably calm despite the conflict spilling over (once again) into some neighbouring countries," said BMO Senior Economist Carl Campus in a note. "While there are several factors that could be helping prevent a bigger surge ... perhaps it's simply a reflection of the underlying optimism regarding ongoing talks." In currency markets, attention remained on the Japanese yen, which firmed sharply after Japanese Finance Minister Satsuki Katayama's comments suggesting repatriation could be in store for Japanese investors. It was last 0.4% stronger at 161.71 per U.S. dollar. The frail yen has been hanging around its lowest level in 40 years in recent days as traders kept a watch for official intervention from Tokyo. [FRX/] The dollar otherwise was mostly muted as investors awaited catalysts to gauge the path of U.S. interest rates. The dollar index, which measures the greenback against a basket of currencies, including the yen and the euro, rose 0.05% to 100.96. The yield on benchmark U.S. 10-year notes rose 2.22 basis points to 4.561%. (Reporting by Pete Schroeder in Washington; additional reporting by Neil Mackenzie in London and Ankur Banerjee in Singapore; Editing by Tom Hogue, Jan Harvey, Susan Fenton, Nick Zieminski, Aurora Ellis and Deepa Babington)

Asian stocks surge as investors focus more on AI than Middle East attacks

SINGAPORE, July 10 (Reuters) - Asian stocks rose sharply on Friday, led by chip and AI firms as investors brushed off concern over the stalled recovery of energy supplies through the critical Strait of Hormuz, with tit-for-tat attacks escalating between the U.S. and Iran. The renewed back-and-forth attacks have further eroded the fragile three-week-old ceasefire, bringing the spotlight back on oil prices and what they could mean for inflation and the global rates outlook. Japan's bond market and currency lurched higher after Finance Minister Satsuki Katayama said on Friday the government wants to explore ways to encourage pension funds, including the Government Pension Investment Fund (GPIF), to increase their holdings of domestic financial assets. Brent crude futures were set for a 5% week-on-week rise, the strongest weekly performance since early May. But at $76.03 per barrel, Brent has given up most of the gains it picked up when the conflict began at the end of February. "I'm looking at updates from the Middle East and things don't look good, but investors seem incredibly resilient to those risks at the moment, with tech again driving markets higher," said Nick Twidale, chief market strategist at ATFX Global in Sydney. Japan's Nikkei rose 1.8% while South Korea's KOSPI, the epicentre of the AI rally, gained 4%. Chip bellwethers SK Hynix and Samsung Electronics were up 1% and 3%, respectively, while Taiwan markets were closed due to a typhoon. That left the MSCI's broadest index of Asia-Pacific shares outside Japan 1.3% higher. "We will start on the front foot again in Asia, but I'm still very cautious that we are not pricing in enough event risk that the Strait of Hormuz may be closed again in the coming days," Twidale said. Investors have taken the escalation in stride this week, keeping their focus instead on the AI theme that has propelled global stocks to record highs but spurred worries about the sustainability of the red-hot rally. Overnight, the tech-heavy Nasdaq ended sharply higher after Micron Technology's plans to invest more than $250 billion in the U.S. through 2035 buoyed chip stocks, with the Philadelphia SE Semiconductor Index rising 3%. SK HYNIX U.S. DEBUT AWAITS Attention will be on SK Hynix's U.S. market debut later on Friday after the firm priced its American Depositary Receipts at $149 on Thursday, raising about $26.5 billion, indicating strong investor appetite to gain exposure to the AI supply chain. The blockbuster offering, which will finance new factories and equipment to meet surging AI chip demand, is set to be the world's second-biggest share sale after SpaceX's record-breaking IPO last month. Sam Konrad, investment manager for Asia Equity Income at Jupiter Asset Management, said the listing could mean that the SK Hynix ADR trades at a premium to the local shares, but it could still help re-rate the South Korean-listed shares. "If SK Hynix re-rates, that should help support a re-rating in Samsung Electronics too, especially when they release details of their shareholder return plans," said Konrad, who holds shares in both South Korean firms. SK Hynix's South Korean shares have surged an eye-popping 238% this year, taking the broader benchmark to record highs and making the KOSPI the world's best-performing major stock market since the start of 2025. But the AI mania has also spurred sharp swings in recent weeks as investors fret about sky-high valuations and worry about the sustainability of their massive profit growth. In currency markets, all eyes remained on the Japanese yen, which hung around its lowest level in 40 years as traders kept a watch for official intervention from Tokyo. The yen got a lift from Katayama's comments and was last 0.5% firmer at 161.51 per U.S. dollar. [FRX/] The dollar otherwise was mostly muted as investors awaited catalysts to gauge the path of U.S. interest rates. Traders are pricing in 34 basis points of hikes for the year but that may change depending on the inflation pressure from the war. In commodities, gold looked set to post a 1% decline for the week and was last at $4,113 per ounce in early trading. [GOL/] (Reporting by Ankur Banerjee in Singapore; Editing by Sonali Paul and Jamie Freed)

Stocks falter on AI worries, oil spikes on Iran concerns

LONDON/WASHINGTON, July 7 (Reuters) - Global stocks fell on Tuesday as technology shares slid despite blockbuster results from Samsung Electronics, with investors remaining concerned about the sustainability of the AI-driven rally, while oil prices rose on renewed Middle East tensions. The tech-heavy Nasdaq Composite was down 0.97% in early trading Tuesday, while the S&P 500 slipped 0.32%. The Dow Jones Industrial Average was flat. Stocks took a step backwards despite Samsung Electronics forecasting a 19-fold jump in April-June operating profit to 89.4 trillion won ($58.4 billion), a third straight quarter of record operating profit for the world's largest memory-chipmaker. Rather than reassuring investors, the results triggered heavy selling in Samsung and rival SK Hynix shares, weighing on South Korea's Kospi and other technology-heavy Asian markets. Investors have increasingly questioned whether profit growth linked to artificial intelligence can be sustained if supply bottlenecks in key components such as memory chips ease. "This is a record for Samsung, but rather than placate the markets, these strong results have led to fears that the AI chip sales boom cannot be sustained," Kathleen Brooks, research director at XTB, said. Further weighing on markets was a Reuters report that Chinese startup DeepSeek was developing its own AI chip, which could reduce its reliance on other major chipmakers to train and run its AI models. SK Hynix is due to join the Nasdaq this week in a $28 billion listing, one of the world's largest new share sales, as the chipmaker seeks to capitalise on the AI boom. In Europe, where exposure to volatile AI-linked stocks is more limited, the STOXX 600 slipped 0.16%, as losses in semiconductor and tech stocks offset gains in oil and gas shares. Energy stocks got a lift from crude prices gaining on the back of signs that U.S.-Iran peace talks were losing momentum. MSCI's gauge of stocks across the globe was down 0.36%. Adding to market concerns, Iran's Revolutionary Guards fired at least two missiles at commercial ships transiting the Strait of Hormuz on Monday, Axios reported, citing two U.S. officials. The ships suffered significant damage, but there were no casualties, the report said. Brent crude futures rose about 1.9% to $73.37 a barrel. NATO MEETING SET TO START IN TURKEY U.S. President Donald Trump, who has pressed Europe to boost defence spending and clashed with European leaders over the Iran war and Greenland, is due to attend a NATO meeting in Turkey beginning on Tuesday. Trump said on Monday the U.S. would either reach a deal with Iran or "finish the job," renewing his threat of military action as Tehran projects defiance following the funeral of Supreme Leader Ayatollah Ali Khamenei. In currency markets, the dollar index, which tracks the U.S. currency against six others, was little changed at 100.87. The yen clawed above 40-year lows to trade a touch stronger on the day at 161.9 to the dollar. Traders were alert for intervention given signs of a possible shift in strategy by Japanese authorities. The yield on benchmark U.S. 10-year notes was up 2.4 basis points at 4.503% ahead of the release on Wednesday of the minutes of the Federal Open Market Committee's latest meeting. These may give investors more of a steer on how new Federal Reserve chair Kevin Warsh is approaching monetary policy. (Additional reporting by Satoshi Sugiyama in Tokyo; Editing by Mark Potter and Kevin Liffey) By Amanda Cooper and Pete Schroeder