Asian tech stocks surge as Palantir earnings fuel global AI rally

Palantir Technologies ↘ 1.58% delivered a blowout second-quarter earnings report on Monday that sent ripples across global technology markets, lifting AI-related stocks from Wall Street to Tokyo as investors renewed their confidence in the sector's growth trajectory.

Palantir's Results Spark Broad Rally

Palantir reported second-quarter revenue of $1.94 billion, up 93% year over year and well ahead of the $1.80 billion Wall Street had expected. Adjusted earnings came in at 41 cents per share, topping consensus estimates of 35 cents. The company raised its full-year 2026 revenue guidance to between $8.15 billion and $8.16 billion, a sharp increase from its prior forecast of $7.65 billion to $7.66 billion. CEO Alex Karp called the demand "otherworldly," according to Fox Business.finance.yahoo+3

The results ignited a relief rally across AI and semiconductor names. Broadcom ↗ 0.55% shares rose more than 6% on Tuesday, according to Benzinga, as investors interpreted Palantir's beat-and-raise quarter as evidence that enterprise AI spending remains robust. The Nasdaq Composite gained 2.41% and the S&P 500 added 1.21% on the session.benzinga+1

Asia Tech Stocks Follow Wall Street Higher

The momentum carried into Wednesday's Asian session. SoftBank Group shares surged as much as 14% in Tokyo trading, according to CNBC, as the broader region's technology stocks tracked Wall Street's overnight record-setting session. Chip equipment maker Tokyo Electron added 3.64%, Advantest jumped 7%, and memory chipmaker Kioxia rose 6.34%.cnbc+1

Ortus Advisors strategist Andrew Jackson said in a note Wednesday that the rally in U.S. semiconductor stocks reinforced the bullish outlook for Asian AI names, pointing to a surge in Arm Holdings ↗ 4.41% overnight on optimism over higher AI-related data center royalties.primexbt

Valuations in Focus

The moves come as SoftBank prepares to report its own quarterly earnings, with Reuters reporting that the company is expected to post net profit of 148.4 billion yen over the April-June quarter. The conglomerate has become Japan's most valuable company this year on the strength of its AI-linked investments. Palantir's U.S. commercial revenue grew 149% year over year to $764 million, while U.S. government revenue rose 90% to $809 million — numbers that reinforce the breadth of AI adoption across both public and private sectors.reuters+2