Taiwan’s Taiex index surged 3.9%, marking its best daily performance since May, led by a 3.2% gain in TSMC and a 9.9% jump for MediaTek. South Korea’s Kospi mirrored this optimism, rising 4.5% behind significant rallies in Samsung Electronics and SK Hynix. In Japan, Advantest climbed 7.0%, while in Hong Kong, semiconductor foundries SMIC and Hua Hong Grace Semiconductor posted gains of 8.8% and 17% respectively.

This recovery follows a volatile period characterized by investor anxiety over the viability of AI capital expenditure. Patrick Munnelly of Tickmill Group noted that while the market is no longer in full liquidation mode, the current stabilization remains fragile. The focus now shifts to Intel and Alphabet, whose quarterly reports are expected to provide the first clear signal of whether record AI investment is translating into revenue, margins, and sustainable cash flow. Analysts suggest that while the rally in semiconductor stocks could resume next month, the threshold for positive market reaction remains exceptionally high.