Nvidia CEO Huang Says Chip Sales to Double Next Year; Japan, Korea Stocks Rally

Market Overview

Asian stock markets staged a strong rebound on September 18, with Japan and South Korea leading the charge. Japan's Nikkei 225 rose over 1%, while South Korea's KOSPI surged more than 2%. Major tech and semiconductor stocks posted significant gains.

Key Market Movements (as of 8:30 local time)

• South Korea's KOSPI: +2.32%
• Japan's Nikkei 225: +1.01%
• SK Hynix: +4.64%
• Samsung Electronics: +2.87%
• SoftBank Group: +5%+

Drivers Behind the Rally

Two key factors contributed to the market upswing:

1. Bank of Japan Policy Expectations: The BOJ is expected to raise its policy rate from 1% to 1.25% at the conclusion of its two-day meeting on Friday. This would mark the central bank's second rate hike in three months, making it the fastest tightening cycle since 1990.

1. Nvidia CEO's Optimistic Outlook: Jensen Huang projected that Nvidia's chip sales next year would double compared to this year, fueling investor enthusiasm.

Overnight U.S. Market Performance

Wall Street also closed higher, with the Nasdaq surging 1.69%. Major tech stocks broadly advanced:

• Nvidia: +2.54%
• Tesla: +2.27%
• Amazon: +2.13%
• Apple, Google, Microsoft, Meta: +1% or more
• Philadelphia Semiconductor Index: +3%+
• Arm: +8%+
• Intel: +7%+
• SanDisk: +6%+
• Micron Technology: +5%+
• SK Hynix: +4%+

Analysts noted that market panic following the Fed's rate decision quickly subsided, while international oil prices fell for a second consecutive day, helping to cool inflation expectations.

Japan's Inflation Data and Rate Outlook

Japan's Ministry of Internal Affairs reported on Friday that:

• August CPI (excluding fresh food): +1.7% year-on-year, below July's 1.8% and matching economist expectations
• CPI excluding fresh food and energy: +1.9%
• Headline CPI: +1.9%

Analyst Commentary

Derek Halpenny, analyst at MUFG, noted that if the BOJ fails to signal a rate hike of the magnitude the market expects in its Friday decision, the yen could weaken. He stated:

"The market widely expects the BOJ to raise rates by 25 basis points and may hint at further rate hike plans. That said, given that the market has already priced in cumulative rate hikes of 90 basis points over the next 12 months, BOJ Governor Kazuo Ueda's remarks may fall short of market expectations—a risk worth monitoring."

According to a Reuters poll, analysts expect Japan's policy rate to reach 1.5% by the end of March next year and 1.75% by the second quarter of 2027. Most analysts believe the terminal rate will be at least 1.75%.

Nvidia CEO's Bullish Forecast

Speaking at a summit in Scotland on September 17, Nvidia CEO Jensen Huang projected that the company's chip sales would double next year as AI continues to penetrate industries including healthcare, manufacturing, and financial services.

"I expect that next year, the number of chips Nvidia sells will be double what we sell this year. The reason is that AI is bringing tremendous value to different industries and economies. In almost every country where we do business, people want to invest in AI."

Huang emphasized that the current bottleneck is not demand but Nvidia's ability to produce chips.

Revenue Outlook

Nvidia previously disclosed that it expects revenue growth of 70% for the fiscal year ending January 2028, reaching approximately $673 billion. This forecast has prompted analysts to significantly raise their expectations.

While Nvidia does not disclose total chip sales volumes, its most well-known products include GPUs for data centers, such as the Blackwell and Rubin series. Last fall, Huang stated that Nvidia had delivered 6 million Blackwell GPUs over four quarters.

AI Safety Discussion

Huang attended the summit alongside representatives from Google's DeepMind, OpenAI, and Anthropic. His visit to the UK focused on AI safety discussions, a topic he has frequently addressed recently.

Huang does not support pausing AI development, stating:

"If a product is unsafe, we should restrict its launch and continue to refine the technology."

Wall Street Sentiment

Wall Street remains broadly bullish on Nvidia. According to TipRanks data, 30 analysts have given the stock a "Buy" rating over the past three months, with a consensus rating of "Strong Buy." The average analyst price target is $324.30, implying approximately 48% upside from current levels.

Editor: Luo Xiaoxia | Layout: Wang Lulu | Proofreader: Li Lingfeng

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