Shares of semiconductor companies surged across global markets after Nvidia Chief Executive Officer Jensen Huang delivered an upbeat message at the World Economic Forum in Davos, calling for trillions of dollars in investment to power the next phase of artificial intelligence growth.
Huang’s remarks reignited investor enthusiasm for AI-related assets, sending chipmakers’ stocks sharply higher from Asia to the United States and pushing key sector benchmarks to record levels.
In South Korea, Samsung Electronics, a major producer of memory chips critical for AI applications, jumped as much as 5% on Thursday to an all-time high. The rally lifted the country’s benchmark Kospi index above the 5,000-point mark for the first time, underscoring the scale of investor optimism.
The momentum followed a strong session in the U.S., where the Philadelphia Semiconductor Index climbed more than 3% on Wednesday, driven by gains in Nvidia and other AI-linked heavyweights, closing at a fresh record.
Market sentiment was further buoyed by improving risk appetite after U.S. President Donald Trump stepped back from earlier threats to impose tariffs on certain European countries over their support for Greenland, easing near-term geopolitical concerns.
Against that backdrop, Huang told delegates in Switzerland that the global expansion of artificial intelligence infrastructure would require trillions of dollars in capital, reinforcing expectations of a prolonged investment cycle benefiting chipmakers, equipment suppliers, and data-center operators.
“Davos this year is entirely about the AI revolution,” wrote Dan Ives, analyst at Wedbush Securities, in a research note. “Despite the obvious geopolitical anxiety in a rapidly changing world, what Davos clearly shows is that U.S. technology is leading this revolution, with China trailing by a wide margin.”
The AI-driven rally has continued into 2026, defying concerns over elevated valuations and persistent geopolitical tensions. Investors are now looking ahead to upcoming earnings from Intel, due later Thursday, for clearer signals on capital expenditure plans across the sector, followed by results from Apple and Meta Platforms next week.
“The expansion of AI infrastructure, combined with a sharp rise in demand for data storage, is intensifying supply shortages,” said Ha Seok-keun, chief investment officer at Eugene Asset Management. “The market has already begun pricing in these strong structural fundamentals.”
Among the day’s biggest movers, shares of Japan’s Disco Corp., which makes semiconductor manufacturing equipment, surged 17% in Tokyo after reporting earnings that exceeded expectations. Taiwan Semiconductor Manufacturing Co., Asia’s largest listed company, rose as much as 1.7%.
Chinese technology stocks posted mixed performance following strong gains earlier in the week, supported by Beijing’s renewed push for technological self-sufficiency.
Huang is expected to visit China in late January as part of efforts to reopen a critical market for Nvidia’s chips amid ongoing regulatory and trade challenges.
Despite the enormous funding requirements associated with AI expansion, investor appetite remains strong. Sam Altman, CEO of OpenAI, is currently in talks with major Middle Eastern investors to raise at least $50 billion as part of a broader fundraising effort.
The discussions could value OpenAI at between $750 billion and $830 billion, highlighting the scale of capital now flowing into artificial intelligence, and reinforcing the message delivered in Davos that the AI boom is far from over.
Follow the latest news on Google News
