Home / Business and Economy / Nvidia Earnings: All Eyes on AI Giant
Nvidia Earnings: All Eyes on AI Giant
19 Nov
Summary
- Nvidia reports Q3 results, facing investor scrutiny amid market downturn.
- US equities extended losses for four consecutive days, impacting indices.
- Fund managers report low cash levels, signaling potential market shifts.
US equities continued their downward trend for a fourth consecutive day, with the Dow Jones falling 500 points and the S&P 500 and Nasdaq also experiencing losses. This market hesitancy is driven by investor concerns over capital expenditure for AI monetization, upcoming results from AI chipmaker Nvidia, and a delayed jobs report. Elevated market valuations are also prompting investors to withdraw funds.
A Bank of America survey revealed that global fund managers' cash levels have dropped to 3.7%, a level historically preceding equity market downturns and treasury outperformance over the subsequent one to three months. Fund managers also expressed concerns that companies are overinvesting and that AI monetization poses the biggest market risk.
All attention is now on Nvidia, the world's most valued company, as it prepares to release its third-quarter financial results. Despite increasing competition, demand for Nvidia's products remains strong, with analysts anticipating another robust quarter. However, JPMorgan Chase & Co. Vice Chairman Daniel Pinto warned of potential ripple effects across the market from any correction in the AI segment, suggesting valuations need reassessment.
