South Korea's leading semiconductor manufacturers staged a powerful comeback on Friday, with SK Hynix surging more than 25% and Samsung Electronics climbing over 20%, as renewed optimism surrounding artificial intelligence (AI) spending sparked a broad rally across global technology stocks.
The sharp gains followed a strong overnight performance on Wall Street, where robust quarterly earnings from Microsoft and Amazon restored investor confidence in AI-related investments and cloud infrastructure demand.
SK Hynix was on track to record its strongest single-day gain on record if the rally held through the close of trading, while Samsung posted one of its biggest daily advances in recent years. Other South Korean technology companies also participated in the rally, with LG Innotek gaining more than 11% and Seoul Semiconductor advancing nearly 8%.
The rebound extended across Asia, lifting several major Japanese semiconductor companies.
Testing equipment manufacturer Advantest climbed almost 18%, while Tokyo Electron gained nearly 9%. Chip equipment supplier Disco rose more than 13%, Lasertec added over 12%, and Renesas Electronics advanced more than 10%. Technology investment giant SoftBank Group, whose portfolio includes chip designer Arm, also rose more than 9% during the session.
The rally marked a dramatic turnaround after a difficult week for semiconductor stocks. Earlier losses had been driven by investor concerns over stretched AI valuations and increasing competition from Chinese memory chip manufacturers, prompting widespread selling across the sector.
Investor sentiment shifted sharply after the iShares Semiconductor ETF (SOXX) climbed more than 8% overnight, reflecting renewed buying interest in AI-linked companies.
The turnaround was largely fueled by stronger-than-expected earnings from two of the world's largest technology companies.
Amazon shares rose more than 9% in extended U.S. trading after the company reported second-quarter revenue that exceeded Wall Street expectations, supported by continued strength in its cloud computing division.
Microsoft also delivered impressive results, with its shares climbing 16% during Thursday's regular trading session after reporting faster-than-expected growth in its Azure cloud platform. The results reinforced expectations that enterprise spending on artificial intelligence infrastructure remains strong despite recent market volatility.
Market analysts said the earnings reports helped ease concerns that technology companies might slow investment in AI development.
Andrew Jackson, Head of Equity Strategy at Ortus Advisors, said Microsoft's quarterly performance had reignited confidence across the technology sector.
He noted that stronger Azure cloud growth, combined with disciplined capital expenditure, reassured investors that major technology companies remain committed to artificial intelligence investment while maintaining financial discipline.
Analysts added that investors were encouraged by signs that cloud providers continue to generate solid returns from AI-related spending, reducing fears that heavy investment in data centres and advanced semiconductor infrastructure would weigh on profitability.
The renewed optimism quickly spread throughout the global semiconductor industry, with investors returning to companies viewed as key beneficiaries of long-term AI adoption.
The latest rally underscores how closely semiconductor stocks remain tied to developments in artificial intelligence, cloud computing and data centre investment. As demand for advanced AI chips continues to expand, market participants will closely monitor upcoming corporate earnings and capital spending plans from major technology companies for further indications of the sector's growth trajectory.
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