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Corporate earnings season is revealing a tale of two economies: technology companies riding the artificial intelligence wave to record profits while traditional sectors navigate more nuanced recoveries. The contrast is particularly stark in Asia, where memory chip makers are posting unprecedented gains while real estate trusts face mixed fortunes.
Memory Chip Titans Clash Over AI Future
SK Hynix has thrown down the gauntlet in the high-bandwidth memory race, declaring its intention to achieve “overwhelming dominance” in HBM4 production. The South Korean giant backed up its bold claims with record-breaking 2025 results, posting an operating profit of 47.2 trillion won ($33 billion) – surpassing rival Samsung Electronics’ total performance for the first time in company history.
The company’s confidence stems from its early lead in supplying Nvidia’s next-generation Vera Rubin platform, where SK Hynix has reportedly secured over two-thirds of the HBM4 supply volume. During its earnings call, executives emphasized that customer preference and established trust relationships provide competitive advantages that “cannot be matched in a short period of time.” However, they acknowledged that explosive AI infrastructure demand has created supply constraints, opening opportunities for competitors to gain ground.
Global Infrastructure Investment Drives Performance
The AI boom’s impact extends beyond memory chips. Swiss engineering giant ABB reported fourth-quarter earnings that exceeded analyst forecasts, prompting the company to announce a substantial $2 billion share buyback program. ABB’s strong performance reflects broader infrastructure investments, with the company benefiting from robust demand in rail and marine sectors alongside AI-related opportunities.
ABB’s management expressed confidence for 2026, citing record full-year orders and revenue while targeting further growth and margin improvements. The company’s optimistic outlook underscores how the AI infrastructure build-out is creating ripple effects across multiple industrial sectors, from specialized semiconductors to fundamental engineering services.
Mixed Signals From Traditional Sectors
While technology companies celebrate record profits, traditional sectors present a more complex picture. In Malaysia’s real estate investment trust sector, results varied significantly. Pavilion REIT demonstrated resilience with fourth-quarter net profit rising to RM203.25 million from RM180.69 million year-over-year, supported by strong retail fundamentals and contributions from newly acquired hotel assets.
Conversely, Sunway REIT maintained cautious optimism despite earnings affected by valuation-related movements. The trust pointed to resilient retail operations and hospitality segment recovery as positive indicators, though management remained measured in their outlook. Meanwhile, India’s Adani Power experienced a 19% decline in quarterly profit to Rs 2,480 crore, despite increased consolidated net profit, highlighting the uneven recovery across different markets and sectors.
Market Implications for 2026
The earnings divergence signals a broader shift in global investment flows toward AI-enabling technologies and infrastructure. SK Hynix’s explosive growth and ABB’s confident outlook suggest that companies positioned within the AI ecosystem continue to command premium valuations and investor attention. However, the mixed performance in traditional sectors like REITs and conventional power generation indicates that the AI boom’s benefits remain concentrated rather than broadly distributed.
For investors, the key question becomes whether current AI infrastructure spending represents sustainable long-term demand or a cyclical peak. SK Hynix’s acknowledgment of supply constraints and Samsung’s expected entry into full-scale HBM4 production suggests intensifying competition ahead, potentially pressuring margins despite strong demand fundamentals.
