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Asian technology stocks recorded strong gains during trading on Wednesday, October 28, 2026, driven by exceptional results from South Korea’s SK Hynix, which boosted optimism about the continuation of the artificial intelligence boom, coinciding with anticipation of the results of Microsoft, Alphabet and Amazon, and the US Federal Reserve’s decision on interest rates.
The recovery came after a wave of anxiety in the technology sector this month, stemming from questions about the scale of investments in artificial intelligence and the ability of companies to convert these expenditures into sustainable profits.
SK Hynix’s profits boost confidence in the AI sector
SK Hynix, one of the leading producers of advanced memory chips used in artificial intelligence applications, announced that its operating profit rose by 632% during the third quarter, reaching $62.8 billion, according to figures in the report.
The company said it had posted record levels of revenue and operating profit for six consecutive quarters, an indication of strong demand for advanced semiconductors.
The results reflected the importance of companies that provide the infrastructure needed to run artificial intelligence models, as the huge investments that technology companies make in data centers and cloud computing are converted into revenue for chip and equipment suppliers.
Stephen Innes of SPI Asset Management noted that the company’s results remind investors that massive capital spending on artificial intelligence is matched by beneficiaries who generate actual revenue and profits.
Asian technology stocks rebound broadly
The strong results were reflected in Asian markets, with SK Hynix shares rising by about 9% during trading, while shares of its rival Samsung climbed by more than 8% ahead of its anticipated results announcement on Thursday.
This pushed South Korea’s Kospi index up by more than 6%. Japan’s Nikkei index also rose by more than 1%, with shares of memory company Kioxia surging by more than 10%, along with gains in Advantest and Tokyo Electron.
The gains extended to Taiwan, supported by the performance of semiconductor companies, and markets in Hong Kong, Shanghai, Sydney, Singapore and Wellington also recorded notable increases.
The Asian moves came as an extension of the gains recorded on Wall Street, where the Nasdaq index rose by more than 1% during the previous session.
Anthropic boosts optimism about AI spending
The sector received an additional boost after Anthropic, the developer of the artificial intelligence model “Claude”, revealed in its initial public offering documents that first-half revenues had increased by approximately 1300%, while also indicating significant investment needs in infrastructure.
Broadcom, in collaboration with Citi, Blackstone and Morgan Stanley, also announced a $63 billion financing structure to develop new capabilities related to Anthropic.
Chris Weston, head of research at Pepperstone, said that Anthropic’s data boosted confidence in long-term growth opportunities across the AI supply chain, particularly with revenue growth, the evolution of computing economics, and infrastructure investment commitments.
These developments bring the debate back to the heart of the investment bet on artificial intelligence: can companies generate sufficient returns to justify the massive spending? The results from chip suppliers indicate that some beneficiaries have already begun to make significant gains, but the sustainability of these profits will remain linked to continued demand and the size of future spending.
The results of the tech giants and the Federal Reserve’s decision are in the spotlight.
All eyes are on Microsoft and Alphabet announcing their results after the US market closes on Wednesday, while Amazon, Apple and Intel are expected to announce their results on Thursday.
Investors will focus on cloud computing performance, AI services revenue, and capital expenditure to see if current growth can be sustained without putting undue pressure on cash flows and profitability.
Meanwhile, investors are awaiting the Federal Reserve’s decision on Wednesday, with expectations that interest rates will remain unchanged. Fed Chair Kevin Warsh’s remarks and the accompanying statement will be closely watched for clues about the next move, especially as markets have priced in the likelihood of a rate hike in December.
Oil prices rise as Israel’s election results are awaited
In the energy markets, oil prices rose by more than 1% as investors monitored the results of the Israeli elections and their potential impact on the future confrontation with Iran.
Initial polls showed a close race between the ruling Likud party and the opposition, while Prime Minister Benjamin Netanyahu pledged to form a new coalition, indicating the possibility of working with US President Donald Trump to confront what he described as the Iranian threat.
In contrast, opposition candidate Gadi Eisenkot said that voters had chosen change, and that he would seek to form a new government.
These developments increase geopolitical uncertainty at a time when oil markets remain sensitive to any escalation that could threaten supplies and shipping in the Middle East.
Summary
Gains in Asian technology stocks reflect a return of optimism about artificial intelligence, supported by strong results from chip companies and signs of rapid revenue growth for some AI firms.
But the most important test for the markets will be the results of Microsoft, Alphabet and Amazon, and their ability to prove that the huge spending on artificial intelligence is generating tangible economic returns, while awaiting the path of US interest rates.
As for oil, it will remain hostage to political and military developments in the Middle East, making upcoming trading sessions governed by investors’ reactions to company results, central bank decisions, and geopolitical news.
