Quick Summary Nvidia posted a 75.2% adjusted gross margin , among the highest in Big Tech AI hyperscalers plan US$650B capex in 2026 , much flowing to Nvidia Rivals like AMD, Alphabet and Amazon are gaining traction Long-term margin sustainability remains the key investor question Margins Steal the Show While investors already expected strong demand, NVIDIA Corp surprised with something even more impressive: Adjusted gross margin of 75.2% , the highest since late 2024 — and management expects similar levels next quarter. For a nearly US$5 trillion company , that margin signals extraordinary pricing power in AI hardware. AI Spending Wave Still Intact AI hyperscalers are forecasting ~US$650 billion in capex for 2026 , up roughly 60% from 2025. Nvidia remains the primary beneficiary as demand for data centre GPUs continues to surge. But maintaining 75% margins depends on two big factors: 1️⃣ Supply Constraints Rising memory costs remain a ris...
Quick Summary
Asian equities extended gains after a tech-led rebound on Wall Street
Nasdaq 100 rose 1.1%, easing weeks of AI-related volatility
South Korea hits record highs, best-performing market globally
Focus now shifts to Nvidia earnings, a key AI sentiment driver
Asia Builds on US Tech Momentum
Asian markets opened higher after US software and semiconductor stocks rebounded from the recent “AI scare trade.”
MSCI Asia-Pacific Index: Up for a third straight session
Japan, South Korea, Australia: Opened higher
South Korea’s Kospi: Up to 1.2%, extending a 43% gain this year — world’s best-performing stock market
Key point: Asia continues to outperform global peers and has largely avoided the sharp tech sell-offs seen in the US.
Wall Street Recap: Software Bounce
The rally was led by:
Nasdaq 100: +1.1%
S&P 500: Higher
Strength in battered software names
Sentiment improved after Anthropic signalled its AI chatbot would integrate with businesses rather than disrupt them — calming fears of widespread displacement.
Earlier in the week, AI concerns had triggered selling across:
Software
Insurance brokerage
Wealth management
Cybersecurity
The rebound was also supported by:
A major AI chip deal between Advanced Micro Devices and Meta Platforms
All Eyes on Nvidia
The main risk event now is earnings from Nvidia.
Investors are looking for:
Another blockbuster beat
Strong forward guidance
Confirmation that the AI spending boom remains intact
This report could either calm or reignite AI-related volatility.
FX, Bonds & Commodities
US 10-year yield: 4.04%
Dollar index: Steady
Yen: Around 155.86 per dollar
Gold: +0.1% to US$5,150
Bitcoin: +0.2% (~US$64,191), but still heading for worst month since 2022
Oil edged higher after recent geopolitical concerns.
Macro Backdrop
Markets are also monitoring:
President Donald Trump’s State of the Union address
Ongoing tariff uncertainty
Potential policy shifts in Japan under PM Sanae Takaichi
Despite volatility in US equities, Asian markets remain relatively insulated due to:
Strong semiconductor exposure
Resilient domestic demand in key economies
Bottom Line
Asia is riding the AI supply chain tailwind while the US grapples with AI disruption fears.
The next catalyst is Nvidia’s earnings — a result that could either reaffirm the AI supercycle or revive concerns about overheated valuations.
For now, risk appetite is stabilising, but investors remain cautious.
Key Takeaways
Asian stocks extend gains on US tech rebound
South Korea leads global performance
Nvidia earnings are the pivotal event
AI volatility not fully resolved
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