Tech Stock Rally: SoftBank, SK Hynix, Samsung Electronics

Asian technology stocks jumped on Tuesday, following a rebound on Wall Street overnight as a sharp drop in oil prices lifted confidence while fresh chip buying spread across Asia, following last week’s sharp sell-off.

The Japanese tech investment giant SoftBank Group rose 13.88%, while chip testing equipment maker Avantest gained 4.63%.

Semiconductor equipment manufacturer Tokyo Electron increased by more than 6.05%, while Lasertec And Disco advanced 7.73% and 6.81% respectively.

South Korean chipmaker SK Hynix jumped 6.69%, while Samsung Electronics rose 4.74%. Samsung SDI climbed 9.88%. that of Taiwan TSMC added 2.24%.

China’s tech-heavy ChiNext price index rose 1.46%.

These gains follow a strong session on Wall Street, where the tech-heavy Nasdaq Composite climbed 2.74%, while the S&P 500 rose 2.35% to record its best day since April 8.

The rally came after a sharp selloff in global tech stocks last week, fueled by concerns that Democrats’ landslide victory in the U.S. midterm elections could lead to tighter restrictions on data center development, which could impact demand for artificial intelligence chips and infrastructure.

“That’s not to say the tech selloff is over. While it appears investors are taking advantage of last week’s drop to increase their exposure to chip and other AI-adjacent stocks, there’s a risk it’s a little premature to stock up and buy the dip,” said David Morrison, senior market analyst at Trade Nation.

Beyond the political uncertainty surrounding potential restrictions on data center development, investors are also increasingly wary of the huge capital expenditures required to build AI infrastructure. Questions about how quickly these investments will translate into meaningful profits have weighed on confidence in companies across the semiconductor supply chain.