AI Earnings Beat Drives Asian Chipmaker Rebound as Oil Spikes

Key points

• SpaceX shares jumped 8.1% after reporting Q3 revenue of $14.6 billion, up 161% year-on-year, driven by Starlink and AI compute growth.
• Super Micro Computer surged 16% after raising quarterly revenue guidance to $18.5–$19.5 billion, significantly above its previous $14.5–$15.5 billion forecast.
• The MSCI Asia Pacific index climbed 1.1%, with South Korea’s KOSPI rising 3.7% and Taiwan’s Taiex gaining 1.4% as semiconductor stocks led the recovery.
• Samsung Electronics and SK Hynix rose 7.1% and 6.2% respectively, while Japan’s Kioxia and Murata Manufacturing gained over 3%.
• Netflix shares fell nearly 6% in after-hours trading due to a weaker-than-expected fourth-quarter revenue outlook, despite a third-quarter earnings beat.
• Brent crude traded above $110 per barrel as attacks near the Strait of Hormuz threatened supplies, fueling inflation concerns despite strong tech earnings.

Background

This rebound follows a recent selloff in Asian chipmakers driven by concerns over AI spending sustainability and Chinese competition, as noted in earlier coverage from October 16 and 20. The current recovery aligns with a broader AI boom, where peers like Dell and HPE have also posted gains, though the market remains sensitive to guidance and valuation concerns.

Why it matters

The strong earnings from AI infrastructure providers signal robust demand for computing power, potentially justifying the substantial capital being poured into the sector. However, divergent moves in data-center stocks and rising oil prices highlight ongoing risks related to inflation and supply chain disruptions, which could impact future market stability.

What to watch

Investors will closely watch Meta Platforms and Tesla for updates on AI investment and consumer demand as they report earnings later on Wednesday. The performance of these companies will provide further evidence on whether AI infrastructure spending can sustain current market valuations.