Nvidia (NVDA-US) delivered quarterly results and forward guidance that both blew past Wall Street expectations, injecting a powerful dose of confidence into an artificial intelligence investment theme that has faced mounting skepticism in recent weeks. US stocks opened broadly higher on Thursday (the 27th), with the Nasdaq Composite climbing more than 220 points at one point and the Philadelphia Semiconductor Index surging over 2%, signaling renewed conviction in AI infrastructure demand.<\/p>\n
Nvidia shares jumped as much as 6% in premarket trading before extending gains to more than 7% after the open, reaching $224.90 per share. The company reported second-quarter revenue of $96.22 billion (approximately NT$3.1 trillion), more than doubling from a year earlier, with adjusted earnings per share of $2.22\u2014both exceeding the $92.17 billion and $2.10 consensus estimates compiled by the London Stock Exchange Group (LSEG).<\/p>\n
What energized the market even more was Nvidia’s outlook. The company guided third-quarter revenue to $108 billion (approximately NT$3.4 trillion), also above market expectations. Additionally, Nvidia’s CFO struck an even more bullish long-term tone on the earnings call, projecting 70% revenue growth for fiscal 2028\u2014far surpassing the 44% to 45% analysts had previously modeled. That figure directly addressed recent concerns about whether AI capital expenditure can be sustained.<\/p>\n
CEO Jensen Huang said demand for AI accelerators continues to expand, noting that these chips are critical components for training and running AI models. In the previous four quarters, Nvidia’s stock had fallen the day after each earnings release, but this time the strong long-term guidance appeared to break that pattern. CNBC noted that Nvidia looks poised to reverse its recent habit of posting better-than-expected results only to see the stock sell off.<\/p>\n
UBS Group’s Global Wealth Management Chief Investment Officer Mark Haefele and his team published a report on Thursday morning that explicitly endorsed the AI theme. “We maintain conviction in the broader AI growth story and believe it remains a key driver of our positive market outlook,” the report stated.<\/p>\n
The report further explained that while persistent concerns about the sustainability of AI capital spending and the circularity of certain AI financing deals may continue to trigger periodic volatility in tech stocks, the second-quarter earnings season has demonstrated that fundamentals remain strong.<\/p>\n
Amanda Lyons, head of research at Energy Group Capital, offered a different lens on Nvidia’s results. She argued that the primary constraint on this AI cycle is not a lack of end demand but rather physical bottlenecks in memory and power. This not only pushes back the question of when the AI cycle might turn, but also gives investors reason to extend their earnings growth expectations for Nvidia and second- and third-tier beneficiaries of the AI buildout.<\/p>\n
Geoff Yu of BNY noted that earnings growth at core technology companies is critical because tech stocks are the primary driver of US equities and tech investment is a core engine of US economic growth. However, he cautioned that strong growth could simultaneously raise the risk of further monetary policy tightening\u2014which is currently the market’s baseline expectation.<\/p>\n
Led by Nvidia, semiconductor and technology stocks broadly advanced. Micron Technology rose 1%, while Arm gained 3%. Software giant Salesforce (CRM-US) surged more than 13% at the open after second-quarter results crushed expectations, with adjusted EPS of $5.90 versus the $3.27 analysts had projected. Cybersecurity firm CrowdStrike (CRWD-US) also rallied on upbeat guidance.<\/p>\n
Kioxia and SanDisk (SNDK-US) announced a joint venture valued at $31 billion (approximately NT$980 billion) to boost flash memory production, further lifting sentiment across the tech sector.<\/p>\n
Not all tech stocks benefited from the earnings glow, however. HP (HPQ-US) posted fiscal third-quarter results that beat Wall Street expectations and issued full-year profit guidance above consensus, but investors fretted over demand prospects for PCs and printers, sending the stock down more than 9% in early trading to $27.61 per share.<\/p>\n
On the macroeconomic front, the US personal consumption expenditures (PCE) price index rose 3.7% year-over-year in July, above the 3.6% consensus estimate and still well above the Federal Reserve’s 2% target. The CME FedWatch tool showed markets pricing in a 38.1% probability of a Fed rate hike in September. The yield on the 10-year US Treasury note climbed to around 4.66%.<\/p>\n
Investor attention now turns to the Jackson Hole Global Central Bank Symposium, which kicks off on the 28th. This will mark Federal Reserve Chair Kevin Warsh’s first speech at the event since assuming the role. With recent economic growth and inflation data running hot, markets are looking for clearer\u2014and potentially more hawkish\u2014policy guidance. Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management, said the latest inflation data is not enough to alter the September decision, but if subsequent data show the same trend, pressure on the Fed to act could mount.<\/p>\n
Notably, SpaceX\u2014which earlier this month was reported to have had its newly acquired AI agent Cursor exploited by Russian hackers\u2014slipped 0.31% on the Nasdaq to $139.01. The European Stoxx 600 index fell as declines in consumer stocks offset gains in technology. Wheat prices climbed to their highest level since July 2023, compounding inflation concerns alongside still-elevated energy prices.<\/p>\n
In Taiwan’s equity market, the TAIEX surged 663.16 points the previous day to close at 45,832.62, with turnover reaching NT$804.25 billion (approximately $25.4 billion). The three major institutional investor categories combined for net buying of NT$57.91 billion (approximately $1.8 billion), with foreign investors alone purchasing NT$36.61 billion (approximately $1.2 billion) on a net basis. Nvidia’s earnings could fuel further upside for AI servers, cooling, PCB, optical communications, and semiconductor supply chain names, though margin debt increased by NT$7.87 billion (approximately $248.1 million) in a single day\u2014a sign that retail money is clearly entering the market and that short-term positioning pressure warrants attention.<\/p>\n","protected":false},"excerpt":{"rendered":"Nvidia (NVDA-US) delivered quarterly results and forward guidance that both blew past Wall Street expectations, injecting a powerful…\n","protected":false},"author":2,"featured_media":121466,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[129],"tags":[18677,59276,59277,12796,30670,2328,6007,27570,223,1551,22431],"class_list":["post-121465","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ubs","tag-arm","tag-hp","tag-jackson-hole-global-central-bank-symposium","tag-jensen-huang","tag-kevin-warsh","tag-micron-technology","tag-nvidia","tag-salesforce","tag-ubs","tag-ubs-group","tag-us-federal-reserve"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/117168734653187990","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/121465","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=121465"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/121465\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/121466"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=121465"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=121465"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=121465"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}