Global chip stocks surge as record tech rebound spreads to Asia

Semiconductor and artificial intelligence stocks roared back to life this week, with Morgan Stanley's ↗ 0.42% TMT Momentum Factor posting its largest single-day gain on record on Tuesday, surging more than 12% in a move that surpassed even the best single-session performances during the dot-com bubble.FuTu News

The rally extended into Asian trading on Wednesday, as the MSCI Asia Pacific Index climbed 1.2% and South Korea's Kospi jumped nearly 6% to 7,149.23, according to Reuters. Samsung Electronics rose more than 5% and SK Hynix surged over 8% in Seoul trading. Japan's Nikkei 225 gained 1.76%.1450 AM 99.7 FM WHTC | Holland+2

Record Short Squeeze on Wall Street

Tuesday's U.S. session saw the Philadelphia Semiconductor Index gain 4.6%, while Micron Technology ↗ 1.51% surged over 12% and Intel ↘ 2.02% rose approximately 8.6%. Goldman Sachs's The Goldman Sachs Group, Inc. ↗ 1.38% High-Beta Momentum Long Index climbed roughly 8.5%, its strongest single-day performance since April 2025.조선일보+1

The rebound followed the sector's worst stretch in years. Morgan Stanley's TMT Momentum Factor had dropped 35.9% over 17 days through mid-July, its steepest decline in the index's 27-year history. The Kospi had fallen more than 20% from its June record, entering bear-market territory.X+1

Goldman Sachs and UBS Group ↗ 1.34% said the momentum selloff is nearing its end and recommended gradually increasing positions, while BTIG cautioned that the rebound has reached a critical resistance zone and market breadth remains weak.FuTu News

AI Spending Debate Persists

Data showing Korean semiconductor exports nearly tripled during the first weeks of July helped catalyze the buying, along with stronger-than-expected Taiwanese export orders for June, according to Reuters. Investors are now focused on Alphabet's ↗ 0.38% earnings report this week for fresh guidance on AI-related capital expenditure plans.FinancialJuice+2

The debate over whether massive AI infrastructure spending will generate commensurate returns continues to loom over the sector. Taiwan's Taiex rose 1.34% on Wednesday, while the VanEck Semiconductor ETF ↘ 1.05% climbed roughly 4.5% during Tuesday's session. As Westpac analysts noted, "equity markets shrugged off geopolitical risks, focusing instead on tech sector returns."1450 AM 99.7 FM WHTC | Holland+2