Introduction: Nvidia ignores AI bubble concerns
good morning. Welcome to our regular coverage of business, financial markets and the global economy.
For today’s investors, there will be one less risk event and one more remaining. Nvidia Some impressive financial results eased nerves.
The chip makers at the center of the artificial intelligence boom beat Wall Street forecasts and provided strong forecasts for future performance, allaying fears of a bubble bursting and boosting the market.
jensen fanFounder and CEO of Nvidatried to allay fears of a bubble by declaring, “We have entered a virtuous cycle of AI.”
yellow He told analysts last night.
“There is a lot of talk about the AI bubble.
From our perspective, we see something completely different. As a reminder, Nvidia is different from other accelerators. We excel at every stage of AI, from pre-training to post-training to inference. ”
Revenue increased 62% year over year, reflecting huge demand for chips to power AI systems. The company reported data center sales of $51.2 billion, higher than the expected $49 billion.
And crucially for market sentiment, Nvidia is growing faster than expected. The company expects fourth-quarter sales to be approximately $65 billion. Analysts had expected the company to issue guidance of $61 billion.
Nvidia stock rose 5% in after-hours trading. Kyle Rodda Senior Financial Market Analyst capital.com, He calls the results “almost perfect” and explains:
Stocks have been rising after hours, pushing up U.S. futures, and Asian stock markets are likely to follow suit. As investors parse the details during the day, something could go wrong. But in the words of Ice Cube, today could be a good day after several weeks of intense trading, especially the past three days.
Nvidia’s strong financial results may allay fears that valuations for companies in the AI revolution are dangerously high, leaving the market vulnerable to a crash. These concerns have been exacerbated by the appointment of two major investors. Softbank and peter teal – I recently sold my Nvidia stock.
Asia-Pacific markets are rebounding today (more on this later), and European stock exchanges are expected to open higher.
Will appear again today
A second concern that has hit stocks in recent days is that the U.S. central banker may not cut interest rates as quickly as expected.
The long-awaited US jobs report for September is finally due to be released today and should provide insight into whether the labor market continues to cool.
The non-farm employment statistics for September predict that the number of employees will increase by 50,000 people and the unemployment rate will remain at 4.3%. weak reading maybe Urging the Fed to cut interest rates in December…
agenda
-
9.30am GMT: ONS data on young people not in education or training.
-
10a, GMT: Eurozone construction statistics for September
-
1:30pm GMT: September US non-farm payrolls report
-
3 p.m.: October U.S. home sales statistics.
main events
JD Sports announces profit will remain at lower end of expectations
In the City this morning, retailer JD Sports couldn’t match Nvidia’s bright outlook.
JD Sports told investors that this year’s profits will be near the lower end of current market expectations.
The leisurewear company reported an improving trend in comparable sales in North America, resilient sales in Europe and improved organic sales in the UK.
But it also cautioned that it was “taking a pragmatic approach” to its outlook for the current year, as “macro and consumer indicators have become increasingly weak in recent weeks”.
Regis Schultz CEO of JD Sports Fashionsays:
“We are navigating a year of volatile external factors with disciplined execution, as reflected in our strong third quarter. In the short term, we enter a key trading period and remain mindful of recent weak macro and consumer indicators in our key markets.”
All of this has led us to take a pragmatic approach to profitability in FY26. We remain confident in the industry and JD Group’s overall positive trajectory over the medium term, and this is well reflected in our commitment to strengthening shareholder returns. ”
Deutsche Bank: NVIDIA’s results completely changed the mood of the market
Jim Reid, market strategist at Deutsche Bank, said Nvidia’s results completely changed the mood of the market after several weak trading sessions.
This morning he told his client:
U.S. payrolls are moving fast today after Nvidia’s earnings and U.S. data started to return to normal overnight as markets desperately sought information.
It’s fair to say that Nvidia’s results completely changed the mood of the market and banished fears of a bubble in one day. Chipmakers achieved significant sales ($57 billion vs. $55.2 billion estimate) And it gave a strong revenue outlook for the current quarter ($65 billion vs. $61.9 billion expected).
The company’s CFO suggested that NVIDIA could further exceed its recent goal of $500 billion in revenue in the coming quarters.
Asia-Pacific stocks soar after Nvidia bailout
There was a rally of relief in Asian markets today after Nvidia’s market-record profits cheered investors.
Nvidia’s CEO jenson Huang’s Upbeat predictions about the future of AI also contributed to the stock’s rise in Japan. Nikkei Shimbun The index rose 2.6%.
Korean Kospi Index rose 2%, Taiwan TW50 The index rose 3.6%.
Ipek OzkardeskayaSenior Analyst swiss quotessaid Nvidia delivered another impressive and record-breaking result, adding:
What may have changed the market response is that Huang said, “We have entered a virtuous cycle of AI. The AI ecosystem is rapidly expanding, with more new foundational modelers, more AI startups, more industries, more countries. AI goes everywhere and does everything at once.”
Introduction: Nvidia ignores AI bubble concerns
good morning. Welcome to our regular coverage of business, financial markets and the global economy.
For today’s investors, there will be one less risk event and one more remaining. Nvidia Some impressive financial results eased nerves.
The chip makers at the center of the artificial intelligence boom beat Wall Street forecasts and provided strong forecasts for future performance, allaying fears of a bubble bursting and boosting the market.
jensen fanFounder and CEO of Nvidatried to allay fears of a bubble by declaring, “We have entered a virtuous cycle of AI.”
yellow He told analysts last night.
“There is a lot of talk about the AI bubble.
From our perspective, we see something completely different. As a reminder, Nvidia is different from other accelerators. We excel at every stage of AI, from pre-training to post-training to inference. ”
Revenue increased 62% year over year, reflecting huge demand for chips to power AI systems. The company reported data center sales of $51.2 billion, higher than the expected $49 billion.
And crucially for market sentiment, Nvidia is growing faster than expected. The company expects fourth-quarter sales to be approximately $65 billion. Analysts had expected the company to issue guidance of $61 billion.
Nvidia stock rose 5% in after-hours trading. Kyle Rodda Senior Financial Market Analyst capital.com, He calls the results “almost perfect” and explains:
Stocks have been rising after hours, pushing up U.S. futures, and Asian stock markets are likely to follow suit. As investors parse the details during the day, something could go wrong. But in the words of Ice Cube, today could be a good day after several weeks of intense trading, especially the past three days.
Nvidia’s strong financial results may allay fears that valuations for companies in the AI revolution are dangerously high, leaving the market vulnerable to a crash. These concerns have been exacerbated by the appointment of two major investors. Softbank and peter teal – I recently sold my Nvidia stock.
Asia-Pacific markets are rebounding today (more on this later), and European stock exchanges are expected to open higher.
Will appear again today
A second concern that has hit stocks in recent days is that the U.S. central banker may not cut interest rates as quickly as expected.
The long-awaited US jobs report for September is finally due to be released today and should provide insight into whether the labor market continues to cool.
The non-farm employment statistics for September predict that the number of employees will increase by 50,000 people and the unemployment rate will remain at 4.3%. weak reading maybe Urging the Fed to cut interest rates in December…
agenda
-
9.30am GMT: ONS data on young people not in education or training.
-
10a, GMT: Eurozone construction statistics for September
-
1:30pm GMT: September US non-farm payrolls report
-
3 p.m.: October U.S. home sales statistics.
