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 stocks outperformed the US, avoiding Wall Street’s AI-driven sell-off
China and South Korea rebounded, led by semiconductor names
Gold and silver retreated after recent record highs
Asia-Pacific equities are up 12% YTD, vs a slight decline in the S&P 500
Asia Stays Resilient Despite US Tech Angst
Asian equities largely shrugged off a US market slide triggered by concerns that artificial intelligence could erode profits across multiple industries.
The MSCI Asia-Pacific Index swung between gains and losses, with:
Japan’s Topix +0.2% (after reopening from holiday)
South Korea +1.1%, recovering early losses
Shanghai Composite +0.6%
Hang Seng -1.8%
Key point: Asia has avoided the intense AI-driven rotation hitting US software and tech stocks.
Why Asia Is Outperforming
Asia is seen as a beneficiary of AI supply-chain demand, particularly in semiconductors
Investors are rotating into chipmakers in South Korea and Taiwan
US markets face added pressure from tariff uncertainty under Donald Trump
Year-to-date performance:
MSCI Asia-Pacific: +12%
S&P 500: -0.1%
This marks the strongest start relative to the US on record.
AI Trade: Winners vs Losers
While US software, insurance, and payment stocks have been caught in the “AI scare trade,” Asian chipmakers remain beneficiaries.
Shares of SK Hynix Inc jumped 4.2%, reflecting continued confidence in semiconductor demand.
Analysts say semiconductors, data centres and foundation model labs remain core AI beneficiaries.
Commodities & FX Moves
Gold -1% to ~US$5,174
Silver -2.5%
Bitcoin -0.7% to ~US$64,125
US dollar steady
10-year US Treasury yield: 4.04% (+1bp)
Precious metals retreated after a strong four-day rally of over 7%.
Tariff Uncertainty Still Lingers
Markets remain cautious after:
The US Supreme Court struck down Trump’s “reciprocal” tariffs
The White House proposed a new 15% across-the-board tariff
Additional national security tariff probes are reportedly under consideration
While volatility may be lower than last April’s shock, tariffs remain a persistent overhang.
Bottom Line
Asia’s equity resilience highlights a growing divergence from the US.
As Wall Street wrestles with AI disruption fears and tariff uncertainty, Asian markets — particularly semiconductor-heavy ones — are benefiting from being on the supply side of the AI boom, not the disruption side.
Key Takeaways
Asia outperforming US in 2026
Semiconductors lead gains
AI anxiety concentrated in US software stocks
Gold and silver cooling after surge
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