Asian equity markets surged on Thursday as Nvidia’s blockbuster earnings eased mounting fears that the artificial intelligence boom had peaked, reigniting momentum across global technology stocks. After weeks of choppy sentiment and concerns over overextended valuations, Nvidia’s results and upbeat forecast injected a fresh wave of optimism into markets that had struggled to maintain their record-breaking pace.

Nvidia Delivers the Catalyst Investors Needed

Nvidia stunned Wall Street late Wednesday by reporting accelerating revenue growth after several quarters of deceleration, while issuing a fourth-quarter sales forecast of $65 billion, well above the $61.66 billion analysts had expected. Its shares climbed 5% in extended trading, setting the tone for global markets.

The results were particularly significant because investor psychology had turned shaky in recent weeks, with fears that the massive build-out of AI infrastructure  from chips to data centers  might be outpacing real economic returns. Nvidia’s numbers, however, reaffirmed that demand for its GPU architecture remains deep and broad, driven by hyperscalers, sovereign AI programs, and enterprise adoption cycles.

Tech Stocks Across Asia Surge in Response

The bullish sentiment quickly rippled across the Asia-Pacific region. Taiwan Semiconductor Manufacturing Co. (TSMC), Nvidia’s most critical production partner, jumped 3.6%. In South Korea, SK Hynix surged more than 4%, while Samsung Electronics gained 4.5% amid renewed confidence in memory-chip demand.

These moves helped propel Taiwan and South Korea’s benchmark indexes more than 2% higher. Japan’s Nikkei surged more than 3% and decisively reclaimed the psychologically important 50,000 level, reversing several sessions of heavy selling. AI-linked bellwethers including Advantest, SoftBank Group, and Tokyo Electron rose between 4% and 9%, underscoring how tightly regional markets remain linked to Nvidia’s performance.

AI Spending Remains Intense and Controversial

Despite Thursday’s relief rally, the broader conversation around AI valuations is far from settled. Some institutional investors remain concerned about the pace of capital expenditure by major cloud providers. Microsoft, Amazon, Google, and others are pouring tens of billions of dollars into AI data centers, capacity expansion, and new computing architecture.

Critics argue that some earnings strength at these firms may be flattered by changes in accounting — specifically, extending the depreciable life of high-cost AI compute hardware such as Nvidia GPUs. While the practice is permissible, it has stirred debate about whether current profitability accurately reflects the cash demands of the AI cycle.

Yet many portfolio managers point to the underlying resilience of the world’s largest tech companies. “The spending is real,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management, noting that hyperscalers and chip manufacturers continue to generate immense cash flows despite elevated investment.

A Rally Built on Fundamentals or a Temporary Lift?

Whether Nvidia’s results mark a durable turning point or simply a temporary relief rally will depend on how growth trends unfold into early 2026. Investors will watch closely for signs that AI-driven capex is producing lasting productivity gains rather than simply inflating valuations. For now, though, Nvidia’s earnings have provided the clearest evidence yet that demand remains strong and that the global tech rally may still have room to run.