Nvidia pushes back on AI bubble narrative as Blackwell drives Q3 beat, shares jump
Investing.com-- Asian technology stocks rallied on Thursday, rebounding from recent losses as stronger-than-expected earnings and positive commentary from bellwether Nvidia helped clear some concerns over a tech bubble.
Nvidia surged over 5% in U.S. aftermarket trade, while other major U.S. tech stocks also rallied. These gains spilled over into the Asian session.
Nvidia suppliers Samsung Electronics and SK Hynix surged over 4% in South Korean trade. In Japan, Advantest Corp rallied some 8%, while Softbank Group added about 3%. Tokyo Electron, which builds chipmaking equipment, surged 4.6%.
TSMC, the world’s largest contract chipmaker and a key Nvidia supplier, surged 4.5%, while contract electronics giant Hon Hai Precision added 3.5% in Taipei trade.
Outside Nvidia suppliers, broader Asian tech stocks also advanced. Australian data center operator Nextdc jumped 3.5%, while software firm WiseTech Global added 3%.
Nvidia clocked stronger-than-expected earnings and flagged an upbeat outlook for the current quarter. CEO Jensen Huang also dismissed concerns over an AI-fueled bubble in tech valuations.
Huang also reiterated that AI-fueled demand for Nvidia’s chips remained strong beyond just Wall Street’s hyperscalers, and that the company was set to continue benefiting from this trend in the coming quarters.
His comments spurred optimism over the AI trade, drawing investors back into tech shares after weeks of selling. Concerns over an AI bubble had ramped up in the run-up to Nvidia’s earnings.