Asia chip stocks soar after Wall Street AI rally; LG jumps on Nvidia cooling nod

Asian chip stocks rallied on Tuesday, tracking a sharp rebound in U.S. technology shares as renewed confidence in artificial-intelligence spending lifted the sector.

South Korea’s tech-heavy KOSPI rose 1.5%, while Hong Kong’s Hang Seng gained 0.4% and the Shanghai Shenzhen CSI 300 added 0.7%.

Japan’s markets were closed on Tuesday and will remain shut through Wednesday for public holidays, with trading set to resume Thursday.

Wall Street set the tone overnight. The Nasdaq Composite jumped 2.3% to a record close, the S&P 500 gained 1.5% and the Dow rose 0.7%, led by semiconductor and other AI-linked stocks. The Philadelphia Semiconductor Index surged 4.3%, while AMD jumped nearly 10% and briefly topped a $1 trillion market value. Intel and Arm also posted double-digit gains.

The momentum carried into Asian trading, with Nasdaq 100 Futures up 0.3%. Lower oil prices and softer Treasury yields also supported the risk-on mood, helping ease some of the pressure that had weighed on technology valuations.

South Korean chipmakers led the regional move. SK Hynix climbed 2.5%, while Samsung Electronics gained 2%.

The rally extended across the Asian AI supply chain. Japan’s cash market was closed for a holiday, but Kioxia jumped 9.4% in its latest session, while Murata Manufacturing rose 4.5% and Largan gained 2.3%.

Taiwan Semiconductor Manufacturing added 0.4%. South Korea’s LG Innotek surged 6.7%, while Taiwan-listed supplier Foxconn rose 1.5%.

LG Electronics was another major mover, jumping 6% after Nvidia qualified its 2.6-megawatt coolant distribution unit for the chipmaker’s DSX AI Factory platform.

Chinese semiconductor shares also strengthened, with Semiconductor Manufacturing up 2.5%, Cambrian Technologies 2.4%, SMIC 1.8% and NAURA Technology 1.7%.

The moves suggest investors are continuing to favor companies tied directly to AI infrastructure even as concerns over the economics of AI models remain.

Mainland Chinese shares rose, with the Shanghai Composite up 0.3%. Hong Kong technology stocks were mixed: Alibaba gained 2.6%, Baidu rose 3%, JD.com added 1.2% and Tencent jumped 5.6%, while Z.AI fell 1.3%, Xiaomi and Meituan edged down 0.1%.