Tech firms extend rally in Asia as traders look past Huang's downfall

Detailed summary

Tech firms rallied Friday in Asian trade on optimism that the AI boom would continue despite the downfall of Nvidia mastermind Jensen Huang, with eyes on the mega-IPO of US titan…

Tech firms rallied Friday in Asian trade on optimism that the AI boom would continue despite the downfall of Nvidia mastermind Jensen Huang, with eyes on the mega-IPO of US titan Anthropic next week.

Investors were also keeping tabs on the Middle East crisis after Donald Trump called on Vice President JD Vance to focus on domestic issues rather than negotiations with Tehran, signalling fading interest in a peace deal.

Chip titan Nvidia has been sideswiped since reports emerged that Huang -- a pivotal figure in the artificial intelligence explosion in recent years -- had carried on two extramarital affairs, including with a woman accused of spying for China.

After days of speculation, he stepped down on Thursday in the face of a boardroom revolt. He will be replaced on an interim basis by chief financial officer Colette Kress.

The crisis has seen Nvidia's share price fall about a fifth since news of the first affair broke at the end of last month.

It fell around 14 percent after Huang's resignation but rebounded on dip-buying to end a little more than four percent down, while it was up one percent in after-hours trade.

While the crisis had raised concerns about the AI boom, which had already been stuttering owing to profitability questions, observers pointed out that business would continue and Huang's departure would not affect short-term projects already in the works.

The firm's competitors benefitted, with Broadcom and Advanced Micro Devices both rallying in New York, though all three markets on Wall Street ended lower.

Seoul, Tokyo and Taipei -- home to the region's biggest AI-linked firms -- climbed between 1.3 and three percent, with South Korea's SK hynix and Samsung well up along with Taiwan's TSMC and Kioxia of Japan.

Opening of the article, excerpted from The Daily Star. To read the rest, open the article on the publisher's site.