The Nvidia and AI exuberance prompted a wider rally in tech shares, with Wall Street and eurozone indices reaching new records
Asian shares jumped Friday following a day of record highs in Japanese, US and European markets after demand for AI-powering chips drove tech gains.
Investors celebrated on Thursday as very strong profits reported by US chip giant Nvidia, seen as a bellwether for the AI boom, helped boost Tokyo’s benchmark index past a record high set in 1989.
The Nvidia and AI exuberance prompted a wider rally in technology shares, with the Wall Street and eurozone indices reaching new highs.
Investors in Asia are entering Friday’s trading session riding the bull of hope, buoyed by the U.S.-led surge in mega tech stocks that has driven a global stock market boom, Stephen Innes, managing partner of SPI Asset Management, stated in a note.
The remarkable rise witnessed across global markets on Thursday, led by Nvidia’s impressive 16.5% jump, is expected to set a positive tone for Asian markets on Friday, he added.
Shanghai, Sydney, Seoul, Taipei, Wellington and Mumbai, Bangkok, Manila and Kuala Lumpur were all higher. Jakarta and Singapore were lower, while Hong Kong was flat.
Tokyo markets are shut Friday for a public holiday, after the Nikkei 225’s record close up 2.2% at 39,098.68, boosted by Nvidia’s quarterly gains.
Nvidia shares on Thursday soared over 16%, lifting its market value to around $2 trillion, after it reported quarterly profits increased to $12.3 billion on record high revenue.
Tom Hulick at Strategy Asset Managers told Bloomberg that demand for artificial intelligence was “surging worldwide across companies, industries and nations”.
We own NVDA and continue to hold the company. This is an exciting momentum play that we have been promoting and participating with for a few years now, he said.
