AI-driven rally lifts US and Asian stocks as chip makers surge

U.S. equity markets closed the quarter on track for their best performance in six years, with the S&P 500 up about 14% year‑to‑date and the Nasdaq set to finish the quarter around 20% higher. The rally is anchored in massive corporate AI spending – JPMorgan estimates five megacap firms will spend roughly $730 billion on AI‑related capex in 2026 – and the resulting strength in semiconductor shares such as Nvidia (+2.6%), AMD (+7.7%) and Intel (+6.0%).

The AI‑driven market surge is not limited to the United States. Asian exchanges rose after Korea’s Kospi jumped 1.3% on chip‑maker gains, and South Korean chipmakers Samsung and SK Hynix announced over $500 billion of investment in domestic chip and AI capacity. Japan’s Nikkei and Taiwan’s Taiex also recorded gains, while European indices were broadly higher, led by technology stocks and a recovery in AI‑linked sectors.

At the same time, analysts warn of a developing AI bubble. Nuveen’s CIO Anders Persson urged investors to be selective, citing stretched valuations, higher default risk in software and private‑credit exposure, and the danger of over‑funding AI projects that may not translate into earnings. Fund flows reflect growing caution: global equity‑fund inflows fell 86% week‑over‑week, with U.S. equity funds posting a net outflow of $35.3 billion.

Other market signals include a modest rise in oil prices, a stable U.S. dollar, and mixed performance in commodities. Overall, the rally highlights both the powerful capital allocation to AI infrastructure and the emerging concerns over valuation, funding structures, and the sustainability of the AI‑driven growth narrative.