Nvidia Sparks AI Rally: Asian Markets Poised to Rise

Asian markets are anticipated to open with gains on Thursday, mirroring a positive trend on Wall Street. This bullish momentum was largely driven by an upbeat first-quarter revenue forecast from Nvidia Corp., projecting between $76.4 billion and $79.6 billion, exceeding estimates of $72.8 billion. Nvidia's shares saw a significant rise in after-market trading, influencing peers like Broadcom Inc. and Micron Technology Inc.

The robust performance on Wall Street saw the S&P 500 climb 0.8% and the Nasdaq 100 rise by 1.4%. In other market movements, Treasuries experienced a decline, and the dollar weakened. Bitcoin's price also surged past $69,000, signaling a notable shift in cryptocurrency market sentiment. Nvidia's optimistic outlook is expected to reinvigorate the AI trade, countering concerns that stock valuations have outpaced fundamental growth.

This forecast suggests that the substantial build-out of AI computing infrastructure remains on track. It could provide crucial support for earnings expectations throughout the semiconductor supply chain and offer a fresh impetus for Asian chipmakers. The results may also offer market stability as investors continue to assess the long-term economic impact of AI. This comes after recent market jitters, including concerns about AI risks and a report on potential industry impacts, alongside a poll suggesting investor optimism about the AI "wrecking ball" being overblown.

In other economic news, oil prices showed volatility due to balanced expectations of OPEC production increases and bearish US data against escalating pressure on Iran over its nuclear program. Several Asian countries are set to release key economic data, including industrial production for Singapore and an interest rate decision in South Korea. Meanwhile, President Donald Trump is scheduled to meet with tech executives to discuss commitments regarding data center energy consumption, and has indicated plans to increase global tariffs.

Corporate highlights include mixed outlooks from Salesforce Inc. and Lowe's Co.'s, while Qantas Airways Ltd. reported increased profit. First Solar Inc. issued a sales forecast below analyst estimates, and Intuitive Machines Inc. announced a significant equity investment. Key market movements include a rise in Hang Seng and ASX 200 futures, a dip in the Bloomberg Dollar Spot Index, and a slight decrease in Bitcoin and Ether prices.