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Nvidia results lift technology sentiment

Nvidia’s stronger-than-expected results and upbeat revenue outlook reinforced confidence in artificial-intelligence (AI) investment, lifting US equity futures and underpinning gains among South Korean technology shares on Thursday. Wall Street had closed broadly flat on Wednesday as investors waited for the chipmaker’s figures, while major European indices ended modestly higher. Asian markets were mixed on Thursday, however, with losses in Japan, Australia and Hong Kong offsetting advances in Korea and mainland China. The Jackson Hole Economic Policy Symposium begins on Thursday.

  • Date
  • Author Shane Strowmatt, Senior Investment Writer
  • Reading time 5 minutes

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Chipmaker Nvidia reported second-quarter revenue of USD 96.2 billion after the bell on Wednesday, exceeding market expectations, while adjusted earnings per share reached USD 2.22. Data-centre sales rose to USD 89 billion, up 117% from a year earlier and supported by continued investment in AI infrastructure. The company forecast third-quarter revenue of about USD 108 billion, also above market expectations, while CFO Colette Kress said revenue could grow 70% in the fiscal year 2028. Strong demand from hyperscalers and a rapidly expanding base of AI-cloud, industrial and enterprise customers suggests the AI infrastructure build-out remains robust, despite concerns about the returns on substantial investment in the sector. Nvidia shares gained 5.4% in after-hours trading after the announcement.

US stocks little changed before Nvidia results

US equity markets finished largely unchanged on Wednesday as investors avoided major positions before chipmaker Nvidia’s quarterly results after the close. The Dow Jones Industrial Average fell 0.2% to 53,463.88 points, while the S&P 500 was little changed at 7675.70 points and the Nasdaq-100 added 0.1% to 29,224.52 points.

US core PCE inflation holds steady

US core personal consumption expenditures inflation remained at 3.3% year-on-year in July, unchanged from June, while prices rose 0.2% month-on-month after a 0.1% increase in June, data showed on Wednesday. The monthly reading suggested underlying price pressures were easing gradually, but inflation remained above the Federal Reserve’s (Fed) 2% target. The figures arrive as Fed officials meet in Jackson Hole amid disagreement over whether to maintain interest rates or raise them, with energy costs and renewed US-Canada tariff tensions posing upside risks. Fed Chair Kevin Warsh is due to make his first Jackson Hole speech on Friday.

Asian stocks mixed after Nvidia results

Asian equities traded unevenly on Thursday after Nvidia’s stronger-than-expected results boosted confidence in AI investment. Korea’s KOSPI rose 1.1%, supported by gains in Nvidia-linked chipmakers, while the Bank of Korea also raised its policy rate by 25 basis points to 3%. Japan’s Nikkei 225 fell 0.4%, Australia’s S&P/ASX 200 lost 1.1% and Hong Kong’s Hang Seng Index declined 0.3%, while mainland China’s CSI 300 gained 0.5%.

Corporate and economic calendar

Corporate news in focus: Quarterly figures from Marvell and Pernod Ricard.

Economic data in focus: Jackson Hole Economic Policy Symposium begins, German GfK Consumer Climate (08:00), European Central Bank monetary policy meeting minutes (13:30), US weekly initial jobless claims (14:30) and US trade balance (14:30).

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Editor: Alessandro Fezzi
Source: LGT Bank (Switzerland) Ltd.