Lead
On Feb. 23, 2026 at 10:27 PM UTC (updated Feb. 24, 2026 at 6:57 AM UTC), Asian equities broadly inched higher as the artificial-intelligence-driven “scare trade” showed signs of cooling. Contracts for the S&P 500 futures rose about 0.2%, and European markets were set for a firmer open. Major semiconductor names — SK Hynix, Samsung Electronics and Taiwan Semiconductor Manufacturing Co. — climbed to record levels as investors rotated into chipmakers viewed as the backbone of AI infrastructure. The move suggested a tentative stabilization in sentiment after recent AI-related volatility in U.S. stocks.
Key Takeaways
- Asian shares ticked up on Feb. 23–24, reversing some prior weakness tied to AI-related selling pressure.
- S&P 500 futures advanced roughly 0.2%, signaling firmer U.S. open expectations despite recent U.S. drag.
- SK Hynix, Samsung Electronics and TSMC all reached record highs as traders bought chip-equipment and wafer makers.
- European markets were poised for a stronger open, reflecting improved risk appetite across regions.
- Traders described chipmakers as “picks and shovels” for AI, driving sector concentration in recent flows.
- The short-term trend points to cooling of the so-called AI “scare trade,” but volatility remains a near-term risk.
Background
Since late 2025 and into early 2026, markets have oscillated on the prospects of artificial intelligence reshaping company earnings and cost structures. A wave of selling — dubbed the “AI scare trade” by some market participants — reflected investor concern that AI could both concentrate profits in a handful of firms and disrupt established revenue streams. That pattern heightened volatility in technology- and growth-oriented equities, prompting some investors to pare risk across U.S. benchmarks.
At the same time, parts of the semiconductor supply chain have been reframed as essential to AI deployment. Analysts and traders have repeatedly referred to leading chipmakers and equipment suppliers as the “picks and shovels” of the AI build-out, arguing that demand for high-performance chips could underpin revenue growth. Policymakers, large cloud providers and hyperscalers are among the key demand-side stakeholders whose capital expenditure plans influence chip-sector outlooks.
Main Event
On Feb. 23 trading in Asia showed a measured rebound: regional indices ticked upward while U.S. equity-index futures gained modestly. The S&P 500 futures rose about 0.2%, a move interpreted as stabilization after recent downward pressure in earlier sessions. European bourses were priced for a stronger open as risk sentiment improved across time zones.
Investor flows concentrated into semiconductor names, pushing SK Hynix, Samsung Electronics and TSMC to record intraday and closing levels. Market participants cited accelerating demand for AI-capable processors and renewed appetite for firms supplying data-center hardware. That buying behavior contrasted with broader, more defensive positioning evident in earlier weeks.
Traders said the rotation reflected both tactical repositioning and a recalibration of risk: some had trimmed growth exposure during the height of AI worries and were now redeploying capital into perceived beneficiaries. Liquidity conditions and near-term macro data also shaped trading, but the chip rally was the dominant narrative through the Asian session. Exchanges reported orderly trading without major dislocations during the moves.
Analysis & Implications
The modest recovery in Asian shares and the uptick in S&P futures suggest the AI-driven sell-off may have been at least partially price-discovery rather than a structural regime change. If chipmakers are correctly seen as essential suppliers to AI infrastructure, sustained capital expenditure from cloud providers could support semiconductor revenues over multiple years. However, markets have a history of overshooting on both the upside and downside when new technologies pivot investor expectations.
Concentration risk is a key concern: heavy inflows into a narrow group of names can amplify volatility and create fragility if macro conditions shift. Valuation discipline will matter as investors weigh near-term earnings momentum against longer-term margin pressures and potential supply-side adjustments. Central-bank policy, interest-rate trajectories and China demand dynamics remain important moderating factors for regional equities.
For corporate strategy, the rally underscores how quickly capital can reprice firms perceived as critical to AI deployment. Companies in the semiconductor ecosystem may find greater access to financing and stronger negotiation leverage with large cloud buyers, but they will also face scrutiny over margin sustainability and capital intensity. Policy-makers and regulators may monitor market concentration and cross-border supply dependencies as strategic technologies gain prominence.
Comparison & Data
| Asset | Move / Status |
|---|---|
| S&P 500 futures | +0.2% (Feb. 24, 2026 AM UTC) |
| Asian equities | Inched higher (Feb. 23–24 session) |
| European shares | Set for stronger open |
| SK Hynix, Samsung, TSMC | All reached record highs |
The table summarizes the immediate market moves referenced in Asia and ahead of European trading on Feb. 24, 2026. The notable feature is the sector-specific strength in semiconductors, which contrasts with a more muted, broad-based advance across regional indices. Market participants should treat futures moves as indicative but not definitive of cash-session outcomes, and remain mindful of overnight developments that can reverse sentiment.
Reactions & Quotes
Market participants and observers reacted to the intraday shifts with mixed interpretations. Some framed the moves as a technical rebound led by sector rotation, while others cautioned that headline-driven flows could resume if new information about AI’s corporate impact emerges.
“Investors are rotating back into names most directly tied to AI infrastructure, but the broader risk picture hasn’t fully normalized,”
a Hong Kong-based fund manager
That manager emphasized that position adjustments can be rapid and that liquidity conditions will determine whether gains hold. Separately, sell-side strategists pointed to valuation spreads within technology as a potential source of renewed dispersion in returns.
“Chipmakers remain the logical beneficiaries of AI capex, but investors should watch order-book trends and end-market demand for confirmation,”
an equity strategist at a global bank
Analysts added that corporate capital-expenditure announcements and cloud spending data in coming quarters will be key to validating the recent rally. Public comment from major cloud providers and semi manufacturers will also be monitored for signs of durable demand.
Unconfirmed
- Whether the chipmaker rally marks a sustained shift in leadership or a short-term technical rebound is not yet confirmed and depends on upcoming demand data.
- Claims that AI will materially reduce broad corporate earnings in the near term remain debated and lack definitive, economy-wide evidence.
- Any suggestion that the recent moves have permanently altered market structure is unverified pending further trading sessions and earnings reports.
Bottom Line
The near-term picture on Feb. 23–24, 2026 shows tentative stabilization after AI-driven selling, with Asian shares and S&P 500 futures edging higher and chipmakers reaching record levels. That pattern reflects investor belief that semiconductors are essential to AI rollout, but it does not negate ongoing macro and valuation risks that could reintroduce volatility.
Market participants should watch incoming earnings, capital-expenditure guidance from cloud and hyperscale providers, and order-book reports from semiconductor companies to assess whether the recent moves are durable. For now, the rally underscores sector concentration and the importance of careful risk management as markets price technological disruption into asset values.
Sources
- Bloomberg — news report summarizing market moves and intraday developments.