nvidia profits — nvidia profits — Nvidia’s latest earnings report has left investors feeling less than ecstatic as the results were merely awesome, but not legendary. The chip designer and key player in the AI sector reported earnings that surpassed analysts’ estimates and issued a Q3 revenue forecast above Wall Street expectations. However, a shortfall in data centre revenue and uncertainties surrounding its performance in China caused its shares to fall more than 3 per cent during after-hours trading.
According to Kyle Rodda, senior market analyst at Capital.com, “Nvidia’s results had to be blemish free and, despite being objectively good, they weren’t perfect. With the stock trading at such a high valuation, any bad news was going to be punished.” This sentiment reflects the heightened scrutiny on tech stocks, particularly those like Nvidia, which have experienced significant price increases.
Following two consecutive days of gains that propelled U.S. markets to record highs, futures for the S&P 500 fell by 0.1 per cent while Nasdaq futures dropped by 0.2 per cent in the wake of Nvidia’s report. The broader MSCI index for Asia-Pacific shares outside Japan also saw volatility, swinging between gains and losses before settling down by 0.3 per cent.
The reaction in Asia was palpable, with major tech companies feeling the chill. Taiwan Semiconductor Manufacturing Company saw its shares decline by 1.7 per cent, and Samsung Electronics slipped by 0.7 per cent. This prompted speculation about potential impacts on Dutch chipmaker ASML in the European trading session.
Conversely, Nvidia’s Chinese competitors experienced a surge in their share prices. SMIC gained an impressive 8.3 per cent, while Cambricon Technologies, which has seen its stock nearly triple since mid-July, added another 7.1 per cent after announcing a profitable quarter. This momentum contributed to a 5 per cent gain in the STAR 50 Index of Chinese growth stocks.
In European markets, French bonds steadied with the yield on 30-year bonds retreating from its highest level since November 2011. Traders appeared to be reassessing the potential impact of the country’s political crisis on government borrowing costs.
Meanwhile, Japanese stocks were marked by fluctuations as the Nikkei 225 index rose by 0.6 per cent. This movement followed a report from the Kyodo news agency indicating that Japan’s chief trade negotiator, Ryosei Akazawa, cancelled a planned visit to the United States, where discussions were to take place regarding a recently agreed trade deal.
