Global markets rallied on Wednesday as Nvidia’s massive Taiwan expansion and a wave of European corporate deal-making boosted investor confidence, helping stocks shrug off renewed geopolitical tensions in the Middle East.
From record highs in Taiwan’s semiconductor sector to takeover battles in Europe, risk appetite remained strong across global markets.
Semiconductor Stocks Surge on Nvidia’s $150 Billion AI Pledge
The global semiconductor sector led gains after Nvidia CEO Jensen Huang announced plans to scale the company’s annual spending in Taiwan to $150 billion – a dramatic increase from levels seen just four to five years ago.
As part of the expansion, Nvidia will begin construction of “Constellation,” a new office complex in northern Taipei expected to open by 2030. The site will house 4,000 employees, roughly four times Nvidia’s current local workforce.
“Taiwan is the epicenter of the AI revolution,” Huang said, adding that “physical AI” – the integration of artificial intelligence with hardware – is expected to transform the manufacturing industry.
Taiwan’s Taiex Hits Record Highs
Taiwan’s benchmark Taiex index climbed 1.7% to a record close following the announcement, while major Nvidia supply-chain partners posted strong gains:
- MediaTek jumped 8.8%
- Delta Electronics advanced 7.2%
- TSMC rose 1.3%
Nvidia is projected to surpass Apple as TSMC’s largest customer this year.
The company’s planned Taiwan spending highlights the scale of the ongoing AI boom, even as Nvidia recently reported record quarterly revenue of $81.6 billion for the quarter ending April 26. Nvidia is also pursuing a separate $500 billion infrastructure investment plan in the United States over four years.
Shifts in the Asian Semiconductor Landscape
While Taiwanese chip stocks rallied, mainland Chinese semiconductor firms moved sharply lower. Cambricon fell 5% and Hygon dropped 7%, reversing earlier gains linked to Huawei’s new “LogicFolding” chip engineering approach for smartphones and data centers.
The divergence reflects broader shifts within the regional semiconductor industry. Nvidia’s revenue from Taiwan surged more than 50% year-over-year last quarter, while revenue from mainland China and Hong Kong was cut in half due to regulatory restrictions.
Broader optimism in the sector was also supported by South Korea’s SK Hynix and U.S.-based Micron reaching milestone market valuations of $1 trillion.
European Equities Advance Amid Corporate Bids and Automotive Growth
European stocks also moved higher despite geopolitical concerns. The pan-European Stoxx 600 index gained 0.3% in afternoon trading, with markets in London, Paris, Frankfurt, and Milan all trading in positive territory.
AkzoNobel Rejects Blockbuster Takeover Bid
Dutch paint manufacturer AkzoNobel, maker of Dulux products, surged nearly 21% after rejecting a joint takeover proposal from Nippon Paint and Sherwin-Williams valued at 73 euros ($85) per share.
The company said the offer failed to reflect its long-term value and lacked sufficient certainty for shareholders, while reaffirming its commitment to a planned merger with Axalta.
Automotive Sector Accelerates
Europe’s automotive sector gained 2.6% after ACEA data showed new EU car registrations rose 5.1% year-over-year.
Major automakers posted broad gains:
- Renault rose nearly 4%
- Stellantis advanced 2.8%
- Mercedes-Benz gained 2.8%
- Volkswagen climbed 2.3%
- BMW added 2.1%
Geopolitical Friction Fails to Dampen Market Momentum
Markets remained resilient despite escalating tensions involving Iran.
Investors monitored developments after U.S. Central Command carried out what it described as “self-defense” strikes targeting missile launch sites and vessels in southern Iran.
Iran’s foreign ministry called the attacks a “gross violation” of the fragile ceasefire, while U.S. Secretary of State Marco Rubio said the Strait of Hormuz would be reopened “one way or the other.”
The comments contrasted with earlier remarks from President Donald Trump, who said on Truth Social that peace negotiations were “proceeding nicely.”
Crude Oil Pulls Back Below $100
Despite Middle East tensions, oil prices moved lower, easing some inflation concerns:
- Brent crude futures fell 2.5% to $97.12 per barrel
- West Texas Intermediate (WTI) dropped 3.5% to $90.65 per barrel
Global Market Outlook
The rally extended across global markets. Benchmark indices in Japan and South Korea reached record highs, while U.S. stock futures held steady after a technology-driven rally pushed both the S&P 500 and Nasdaq Composite to fresh records earlier in the week.