Asian semiconductor stocks rallied after Nvidia’s blockbuster earnings and bullish outlook eased concerns that the AI investment boom may be peaking, although stubborn US inflation kept broader market sentiment cautious. — AFP pic First Published: Thursday, 27 Aug 2026 1:37 PM MYT HONG KONG, Aug 27 — Asian chip firms rallied today following more blockbuster earnings from Nvidia that eased worries over the AI investment boom, though the euphoria was tempered by US data showing stubbornly high inflation.In a highly anticipated report, the world’s most valuable company shattered forecasts by unveiling revenues more than doubled on-year in the second quarter and said it expected another blowout in July-September.Nvidia is considered the bellwether for the AI spending frenzy, with its results largely determined by mega purchases from AI giants such as OpenAI, Amazon, Microsoft and xAI.The firm has led an eye-watering rally by tech firms over the past year and in October became the first to hit a market capitalisation of $5 trillion owing to scorching demand for its chips.However, the investors have been growing increasingly worried about when the vast sums of cash being pumped into the AI sector will see a meaningful return, if ever.That saw a painful selloff in July that wiped trillions off valuations. While firms have enjoyed a slight recovery this month, traders remain uncertain.Nvidia’s report helped soothe some of those fears, with CEO Jensen Huang saying: “The AI infrastructure buildout is at full steam.”Charu Chanana ay Saxo Markets wrote: “This was another beat-and-raise quarter from Nvidia, but the biggest positive was not the quarterly beat itself.“It was management effectively telling investors that AI demand remains supply-constrained even at this scale, and guiding to around 70 per cent revenue growth in fiscal 2028.“That is a powerful counter to the narrative that the AI capex cycle is already peaking.”Shares in Nvidia, which reported as Wall Street closed, rose around 5 per cent in after-hours trade.Asian firms followed suit, with South Korea’s SK hynix and Samsung up from 2 to 3 per cent with Japan’s Kioxia more than 4 per cent higher. Taiwan’s TSMC also advanced.However, broader markets struggled.Seoul and Taipei rose with Shanghai, but there were losses in Tokyo, Hong Kong, Sydney, Singapore, Wellington and Manila.The tepid performance came after figures showed the Federal Reserve’s preferred gauge of inflation remained stuck at a three-year high of 3.7 per cent in July.Another report showed GDP growth for the second quarter came in at 1.5 per cent, in line with estimates.The personal consumption expenditure reading has been above the central bank’s 2 per cent target for more than five years, with upward pressure mostly coming from surging oil prices caused by the Iran war.It comes as central bankers and other economic policy makers prepared to kick off their annual Jackson Hole symposium in Wyoming, where investors will be keeping a close eye on Fed boss Kevin Warsh’s speech hoping for clues about his plans for interest rates.The latest figures “are hardly recessionary signals and provide little reason to expect any hint of dovishness from Kevin Warsh”, wrote Matt Simpson, a market analyst at City Index.Still, hopes for an easing of inflation down the line have been helped by oil continuing to fall this week as Iran and Oman edge towards a deal to open a temporary shipping corridor in the Strait of Hormuz.Both main contracts have dropped more than 8 per cent since Friday.However, analysts have noted that the details have remained sketchy, including whether there will be a fee to access the waterway. — AFP