كتب : Hatem Maher
Vladimir Koman converted a penalty after two minutes to give Hungary an early lead in the game that took place at Mubarak Stadium in Suez.
Things went from bad to worse for Italy when Matteo Gentili was sent off for a second bookable offense 19 minutes from time.
The Azzurri still managed to level the score on 82 minutes when left-back Antonio Mazzotta raced onto a superb through pass and hit a powerful left-footed shot that left the keeper with no chance.
Their celebrations were cut short when they were reduced to nine men two minutes later, with Francesco Bini receiving a straight red card for a wild challenge on Koman.
However, Hungary did not have much time to make use of their two-man numerical advantage as Adrian Szekeres was dismissed for elbowing an opponent.
The match went into extra time and further exciting incidents were to follow.
Nemeth restored Hungary's lead in the 112th minute after Italy defenders were caught napping but Giacomo Bonaventura restored parity again just one minute later with a low shot from the edge of the area.
Italy had to play with just eight men in the dying minutes after Michelangelo Albertazzi was sent off after picking up two yellow cards.
They were made to pay for that as Nemeth scored his second of the night to hand Hungary a thrilling victory.
Hungary will face Ghana, who defeated Korea Republic 3-2 earlier on Friday, in the semi final.