Asian tech stocks rebound as oil slumps and Nvidia faces espionage probe

Key points

• SoftBank Group surged 13.4% in Tokyo, while Advantest and Tokyo Electron rose 2.36% and 4.73% respectively, leading the Asian tech recovery.
• South Korean chipmakers SK Hynix and Samsung Electronics gained 5.2% and 3.9%, though the broader Kospi index fell 0.8% after earlier rising 1.7%.
• Nvidia shares dropped more than 4% despite the broader market rally, as the company announced a board-level investigation into CEO Jensen Huang over claims of an affair with an alleged Chinese spy.
• Oil prices slumped, with Brent crude falling 5.9% to $92.57 per barrel, driven by renewed hopes for diplomatic talks to end the US-Iran conflict.
• The Nasdaq Composite climbed 2.74% and the S&P 500 rose 2.35%, marking their best day since April 8, following a previous week of heavy losses in AI infrastructure stocks.

Background

This volatility follows a period of significant capital outflows from South Korean equities, where foreign investors withdrew $131 billion in 2026 as AI enthusiasm cooled. Samsung Electronics recently reported record third-quarter operating profits of 106.5 trillion won, but shares fell due to vague shareholder return plans. The current market swing reflects ongoing tensions between strong AI demand and concerns over the sustainability of massive capital expenditures in the semiconductor supply chain.

How outlets are covering it

CNBC emphasizes the broad-based recovery in Asian chipmakers, attributing the surge to a rebound in Wall Street and falling oil prices, while noting investor caution regarding AI infrastructure costs. Yahoo Finance highlights the divergence between the general market rally and Nvidia’s decline, framing the CEO scandal as a 'one-off story' that does not yet threaten the broader AI sector. Al Jazeera focuses on the political driver, linking the initial sell-off to Democratic midterm victories and potential restrictions on data centers, while JP Morgan analysts note that AI demand remains strong despite valuation resets. The outlets differ in their emphasis: CNBC and Al Jazeera focus on macro and political factors, while Yahoo Finance isolates the Nvidia-specific corporate crisis.

Why it matters

The sharp reversal in tech stocks signals heightened sensitivity to political and geopolitical risks, particularly regarding AI infrastructure funding and US-China relations. The divergence between broad market gains and Nvidia’s decline illustrates how corporate governance issues can decouple individual stocks from sector trends, while the oil price drop reflects shifting geopolitical dynamics that may influence energy costs and inflation expectations.

What to watch

Investors will monitor the outcome of the Nvidia board’s investigation into CEO Jensen Huang and any potential congressional inquiries. Market sentiment will also depend on whether the rebound in tech stocks sustains or if concerns over AI capital expenditures and political restrictions on data centers trigger another sell-off. Oil prices may continue to fluctuate based on the progress of US-Iran diplomatic talks.