Asian stocks posted their biggest gain in nearly four months as investors piled into chipmakers, after blockbuster earnings from major tech firms reinforced optimism over AI demand.The MSCI Asia Pacific Index climbed as much as 4.3%, putting the gauge on track for a second week of gains despite sharp market swings earlier. South Korea’s Kospi led the rally, surging as much as 17% thanks to heavyweights Samsung Electronics Co. and SK Hynix Inc., while Taiwanese stocks also gained more than 7%.The move followed a sharp rebound in global tech shares after firms including Amazon.com Inc. and Microsoft Corp. unveiled aggressive spending plans alongside strong earnings, reinforcing confidence in the artificial intelligence trade. Overnight, the Philadelphia Semiconductor Index notched its biggest advance in over a year as the tech giants signaled there was little sign of slowing their ambitions to expand AI infrastructure.“Today’s surge reflects investors temporarily switching off the alarm around technology stocks,” said Hebe Chen, a senior market analyst at Vantage Global Prime. “The earnings have given investors fresh reason to believe the AI demand engine is still running, unleashing bargain hunting and short covering across the names hit hardest.”The rebound offers investors some relief after a week of whipsaw trading fueled by growing concerns over the sustainability and eventual payoff of the AI industry’s spending spree. Those worries heightened on Wednesday when investors offloaded shares of SK Hynix despite the memory-chip maker reporting a sixfold jump in quarterly profit.On Friday, shares of Samsung and SK Hynix surged more than 25%, marking their biggest one-day gains in decades. Some traders are urging caution, though, warning that investors may still be better served rotating into under owned markets like Singapore and Thailand. Sectors with less AI exposure are “worth exploring further as the AI trade has become crowded,” said Sat Duhra, a portfolio manager at Janus Henderson Investors.Published on July 31, 2026