Global semiconductor stocks climbed sharply this week after Nvidia Corp. CEO Jensen Huang reignited investor optimism around artificial intelligence during his appearance at the World Economic Forum (WEF) in Davos, Switzerland. His comments reinforced the long-term growth narrative of AI, pushing chipmakers’ shares higher across Asia, Europe, and the United States.
The rally underscores how central artificial intelligence has become to global technology markets, even as geopolitical tensions, valuation concerns, and macroeconomic uncertainty continue to dominate headlines.
AI Optimism Drives Global Chip Rally
Shares of Samsung Electronics Co., the world’s largest memory chipmaker, surged as much as 5% on Thursday, reaching an all-time high. The rally helped propel South Korea’s benchmark Kospi index above the historic 5,000 level for the first time.
The momentum followed a strong session on Wall Street, where the Philadelphia Semiconductor Index jumped more than 3% on Wednesday, also hitting a new record. Nvidia, now widely seen as the backbone of the AI hardware ecosystem, was a key driver of the gains.
Market sentiment was already fragile due to heightened geopolitical risks. However, confidence improved after U.S. President Donald Trump withdrew tariff threats against several European countries linked to support for Greenland. That easing of trade tensions, combined with Nvidia’s bullish outlook, created a powerful catalyst for risk-on trading.
Davos and the “AI Revolution”
Speaking at Davos, Jensen Huang emphasized that the global build-out of artificial intelligence infrastructure would require investments measured in trillions of U.S. dollars. His remarks resonated strongly with investors who see AI as a multi-decade transformation rather than a short-term trend.
“Davos is all about the AI Revolution,” wrote Dan Ives, an analyst at Wedbush Securities, in a client note. “Despite geopolitical uncertainty, one message is clear: U.S. tech companies are leading the AI revolution, with China trailing significantly behind.”
Huang’s comments reinforced the view that demand for AI chips, data centers, and advanced computing infrastructure will continue accelerating well into 2026 and beyond.
Strong Fundamentals Support the AI Boom
The AI rally has persisted despite concerns that semiconductor stocks may be overvalued after years of strong gains. Analysts argue that fundamentals remain solid, supported by massive capital expenditure plans and rapidly growing demand for data storage and computing power.
Upcoming earnings reports from major technology players could further shape investor expectations. Intel Corp. is set to release its financial results later this week, potentially offering insights into capital spending across the chip industry. Results from Apple Inc. and Meta Platforms Inc. are also expected next week and may shed light on AI-related investments.
“The expansion of AI infrastructure and surging demand for data storage are tightening overall supply,” said Ha Seok-Keun, Chief Investment Officer at Eugene Asset Management Co. “The market is increasingly pricing in the strengthening foundations of the semiconductor industry.”
Notable Movers Across Asia
Beyond Samsung, several other semiconductor stocks posted significant gains. In Tokyo, shares of Disco Corp. soared 17% after the semiconductor equipment manufacturer reported earnings that exceeded market expectations. The results highlighted strong demand for advanced chipmaking tools used in AI and high-performance computing.
Taiwan Semiconductor Manufacturing Co. (TSMC), Asia’s largest listed company and the world’s leading contract chipmaker, climbed as much as 1.7%. As a key supplier to Nvidia, Apple, and other tech giants, TSMC is widely viewed as a primary beneficiary of the AI boom.
Chinese technology stocks also moved higher after reports that Jensen Huang plans to visit China later this month. The visit is seen as an effort to re-engage with a critical market for Nvidia, even as U.S. export controls continue to limit access to advanced AI chips.
Massive Funding Still Flowing Into AI
Despite the enormous capital requirements associated with AI development, investor appetite remains strong across both public and private markets. There are few signs of funding fatigue.
OpenAI CEO Sam Altman has reportedly met with major investors in the Middle East to secure funding for a new investment round worth at least $50 billion. The discussions value OpenAI at an estimated $750 billion to $830 billion, highlighting the extraordinary scale of capital being deployed in the AI sector.
Such figures underscore why many investors believe the AI cycle is still in its early stages, even after years of rapid growth.
Looking Ahead: AI’s Dominance Through 2026
As artificial intelligence continues to reshape industries ranging from cloud computing and consumer electronics to healthcare and autonomous systems, semiconductor companies are expected to remain at the center of this transformation.
While risks remain — including regulatory scrutiny, geopolitical conflict, and supply-chain constraints — the consensus among many analysts is that AI-driven demand will outweigh these challenges in the medium to long term.
Jensen Huang’s message at Davos reinforced that belief: building the future of AI will not be cheap, but it will be massive in scale — and semiconductor companies are positioned to benefit the most.
