Tech Stocks Surge on Nvidia Outlook as Inflation Bites

Nvidia's robust AI revenue outlook has led to a surge in tech stocks, despite hot US inflation data and a Bank of Korea rate hike. The chipmaker's forward guidance indicated that demand for its advanced AI accelerators far outstrips supply.

The company reported quarterly results exceeding Wall Street's $91 billion revenue consensus, with figures closer to $92 billion. This triggered a relief rally across the semiconductor sector, with South Korean tech giants Samsung Electronics and SK Hynix rising 2 percent and 4 percent respectively in Asian trading.

However, the broader US indices, including the Dow Jones Industrial Average, edged lower following hotter-than-expected US inflation prints. The Personal Consumption Expenditures (PCE) price index showed sticky underlying price pressures in the services sector.

The Bank of Korea hiked its benchmark interest rate to combat stubborn price pressures, with core inflation in South Korea printing at 2.6 percent above the central bank's 2 percent target.