Asian equities mostly advanced Thursday after Nvidia delivered stronger-than-expected earnings, helping calm investor anxiety over the sustainability of artificial intelligence-driven growth. While U.S. futures edged lower, regional markets reacted positively to signs that AI demand remains robust. The results reinforced confidence in semiconductor supply chains across Asia, though caution persists amid elevated valuations and macro uncertainty.

Nvidia Results Reignite Tech Optimism

Nvidia reported a 73% year-over-year surge in quarterly revenue to $68 billion and forecast $78 billion for the current quarter, exceeding analyst expectations. CEO Jensen Huang emphasized that demand for AI chips remains “skyrocketing,” underscoring continued hyperscaler and enterprise investment.

The earnings helped push the S&P 500 up 0.8% to 6,946.13, with the Nasdaq Composite rising 1.3% to 23,152.08. The Dow Jones Industrial Average gained 0.6% to 49,482.15. Despite a modest 0.2% after-hours move in Nvidia shares, the broader signal to global markets was clear: AI infrastructure spending has not meaningfully slowed.

Analysts at Capital Economics projected that sustained profit growth could propel the S&P 500 toward 8,000 by year-end 2026, highlighting how central Nvidia’s trajectory has become to global equity sentiment.

Asia’s Semiconductor Leverage on Display

Japan’s Nikkei 225 briefly crossed 59,000 for the first time before settling up 0.2% at 58,715.33. SoftBank Group gained 3.5%, reflecting its exposure to AI technologies, while Tokyo Electron declined 2.8% amid stock-specific adjustments.

South Korea’s Kospi surged 2.3% to 6,222.29, extending a remarkable 44% rally since the start of the year. Samsung Electronics jumped 5.5%, and SK Hynix gained 2.5%, underscoring Korea’s leverage to memory and AI chip demand.

Elsewhere, Australia’s S&P/ASX 200 rose 0.5%, Taiwan’s Taiex gained 0.2%, and India’s Sensex added 0.3%. Hong Kong’s Hang Seng slipped 0.4%, while Shanghai edged down 0.1%, reflecting a more cautious tone in mainland-linked equities.

Japanese equities also drew support from policy signals, as Prime Minister Sanae Takaichi appointed two economists perceived as favoring accommodative monetary policy to the Bank of Japan board, reinforcing expectations of gradual rate normalization.

Commodities and Currency Markets Signal Caution

In commodities, crude oil prices ticked higher, with WTI at $65.58 per barrel and Brent at $71.90, suggesting geopolitical and supply dynamics remain in play. Precious metals softened, with gold down 0.3% and silver falling 2%, indicating reduced immediate safe-haven demand following Nvidia’s earnings relief.

The U.S. dollar weakened slightly against the yen to 155.89, while the euro edged higher to $1.1817, reflecting modest shifts in currency positioning.

Looking ahead, the durability of the AI rally will depend not only on Nvidia’s momentum but also on broader corporate earnings follow-through and global macro stability. While strong semiconductor results have restored confidence for now, investors remain mindful that elevated multiples leave limited room for disappointment. The next phase of market performance may hinge on whether AI-driven capital expenditure translates into sustained profitability across the broader technology ecosystem.