HONG KONG: Tech firms rallied in Asian trade on Friday on optimism that the boom in artificial intelligence (AI) would continue despite the resignation of Nvidia chief Jensen Huang, with eyes on next week’s mega initial public offering (IPO) of US firm Anthropic.
Investors were also watching the Middle East crisis after US President Donald Trump called on Vice President JD Vance to focus on domestic issues rather than negotiations with Tehran, signaling fading interest in a peace deal.
Chip giant Nvidia has been hit since reports emerged that Huang, a pivotal figure in the AI explosion of recent years, had two extramarital affairs, including one with a woman accused of spying for China.
After days of speculation, he stepped down on Thursday in the face of a boardroom revolt. Chief financial officer Colette Kress will replace him on an interim basis.
Nvidia’s share price has fallen about a fifth since news of the first affair broke at the end of last month. It dropped around 14 percent after Huang’s resignation but rebounded on bargain-hunting to close a little over 4 percent down, and was up 1 percent in after-hours trade.
The crisis had raised concerns about the AI boom, which was already stuttering over questions about profitability. But observers pointed out that business would continue and Huang’s departure would not affect short-term projects already under way.
Nvidia’s competitors benefited, with Broadcom and Advanced Micro Devices both rallying in New York, though all three main Wall Street indexes ended lower.
Asia had a more positive end to the week. Seoul, Tokyo and Taipei, home to the region’s biggest AI-linked firms, climbed between 1.3 and 3 percent. South Korea’s SK hynix and Samsung posted strong gains, along with Taiwan’s TSMC and Japan’s Kioxia.
Shanghai, Jakarta and Manila also rose, while Hong Kong, Sydney, Singapore and Wellington fell.
Business as usual
“Now that he has taken the decision to resign, the question that needs asking is whether recent events matter in the context of the wider business given that Nvidia is one of the front runners in the AI trade,” wrote Michael Hewson of MCH Market Insights.
“Business is likely to continue as before and with the numbers out next week the noise around its CEO while unwelcome doesn’t change the business case for Nvidia, even if it raises some questions about its corporate governance.”
He added there was a danger Nvidia “might become collateral damage in the aftermath as Democrats take aim at a business that has aligned itself closely to the Trump administration”.
Traders were also gearing up for next week’s market debut of Anthropic, the creator of the Claude chatbot, after an IPO expected to have raised more than $60 billion.
The listing is seen as a gauge of how long the AI spending boom can last amid concerns over huge spending on data centers and software, and possible regulation after the Democrats swept Congress last week.
Both main oil contracts eased on Friday after big gains the day before, when Trump appeared to turn his back on a peace deal with Iran.
“We don’t need a deal with Iran. Those days have long since passed. We’ve got their money, Hundreds of Billions of Dollars, and we’ve got their Strait!” Trump wrote on his Truth Social platform.
His comments followed a sharp drop in crude prices this month on optimism that he would push for a long-term deal with Tehran, after he said he would not restart military action against Iran.
Traders were also watching currency markets after the dollar rose back above 160 yen for the first time since early September, on bets the US Federal Reserve will keep raising interest rates into the new year. The dollar’s advance fueled fresh speculation that Japanese authorities will step in to support the yen.
Key figures at around 0230 GMT
Tokyo – Nikkei 225: UP 1.6 percent at 61,816.72 (break)
Seoul – Kospi: UP 1.3 percent at 5,410.58
Hong Kong – Hang Seng Index: DOWN 0.6 percent at 23,874.05
Shanghai – Composite: UP 0.2 percent at 3,662.84
West Texas Intermediate: DOWN 0.4 percent at $88.38 per barrel
Brent North Sea crude: DOWN 0.3 percent at $95.52 per barrel
Euro/dollar: UP at $1.1059 from $1.1055 on Thursday
Pound/dollar: UP at $1.3236 from $1.3235
Dollar/yen: UP at 159.89 yen from 159.84 yen
Euro/pound: UP at 83.55 pence from 83.53 pence
New York – Dow: DOWN 0.4 percent at 52,297.09 (close)
London – FTSE 100: UP 0.3 percent at 10,863.09 (close) — AFP