Nvidia recently delivered earnings that surpassed forecasts, yet its data centre revenue—a cornerstone of its AI push—fell just short of expectations. This miss has understandably left some investors questioning the pace of its AI growth.
While the company announced a stock buyback and provided upbeat guidance, shares dipped in after-hours trading. With the data centre segment seeing a 56% year-over-year rise to $41.1 billion, the slight shortfall from the anticipated $41.34 billion underscored the challenges of predicting AI demand.
Nvidia’s overall performance remains impressive, having outpaced earnings expectations in 11 of the last 12 quarters. Nevertheless, recurring post-earnings stock declines suggest that market sentiment isn’t entirely at ease. On a related note, the gaming division—once the flagship of Nvidia—continues to be a significant part of its strategy, harking back to its legacy among tech enthusiasts.
Elsewhere in the market, the S&P 500 reached a new closing high with a modest gain of 0.24%, while Europe’s Stoxx 600 edged up by 0.1%. In Canada, shares of Canada Goose leapt over 15%, sparked by news of Bain Capital’s interest in taking the company private.
The broader financial landscape also saw the Federal Reserve stand firm on its independence amid political pressures—a reminder for all investors to keep a watchful eye on monetary policies. Moreover, Nvidia CEO Jensen Huang recently hailed TSMC as a smart investment, echoing sentiments from analysts at Morningstar and Macquarie.
Even pop culture is making waves in the markets; Taylor Swift’s engagement to NFL player Travis Kelce sent ripples through stocks like Signet Jewelers and Ralph Lauren.
