Asian, European chipmakers rebound after Nvidia, ASML earnings

Chipmakers in Asia and Europe rebounded on Wednesday after strong corporate earnings from Dutch group ASML Holding added to industry leader Nvidia’s overnight rally.

The rebound came after US chipmaker Nvidia closed up 9 percent on Tuesday, recouping some of the heavy losses that wiped $600 billion off its market value earlier in the week as investors worried about the threat to US supremacy in artificial intelligence posed by China’s DeepSeek.

The emergence of DeepSeek, which is touted to develop AI tools at a fraction of the cost of US competitors, has been called a contemporary “Sputnik moment.”

Japan’s technology-heavy Nikkei 225 index closed up 1 percent after a recovery in semiconductor stocks and artificial intelligence investor SoftBank.

The Stoxx Europe 600 benchmark rose 0.5 percent, led by ASML Holding. The chip equipment manufacturer announced earnings that exceeded analysts’ expectations, and its shares rose 11.5 percent in Amsterdam. Nvidia shares rose another 0.6 percent in pre-market trading on Wednesday.

Futures markets pointed to further recovery in the US, with contracts tracking the Nasdaq up 0.4 percent and those tracking the S&P 500 up 0.1 percent.

Overreaction

“Markets have taken a calmer view of developments in China with AI, and perhaps it is a reflection that Monday’s moves were an overreaction,” said Mitul Kotecha, head of emerging markets macro and currency strategy at Barclays.

Goldman Sachs’ Asian market analysts said in a note on Tuesday night that “oversold high-quality stocks may also provide some investment opportunities,” adding, “We think strong companies will further strengthen.”

In Tokyo, Nvidia supplier Advantest closed up 4.4 percent, while semiconductor company Tokyo Electron rose 2.3 percent. SoftBank ended the day with an increase of 2.4 percent.

Markets in the rest of Asia were also lively on Wednesday. India’s Nifty 50 rose almost 1 percent in afternoon trading, while Australia’s ASX 200 closed up 0.6 percent. China, South Korea, and Taiwan were closed for the Lunar New Year holiday.

However, analysts warned that the recovery has yet to fully undo Monday’s panic falls as investors digest the results of US tech’s heavy investment in artificial intelligence in light of DeepSeek’s successes.

“There was no recovery as if nothing had happened. It’s just a reflection that Monday’s move was a bit overdone,” said Kotecha from Barclays.