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Nvidia Delivers Blockbuster Results
20 Nov
Summary
- Nvidia's earnings and revenue surpassed expectations.
- Company guidance exceeded analyst projections, boosting stock.
- CEO Jensen Huang addressed AI bubble concerns directly.
Futures on Wall Street surged as Nvidia Corp. released results that exceeded expectations, significantly easing investor concerns about a potential AI bubble. The chipmaker surpassed both revenue and Earnings Per Share (EPS) forecasts, with its guidance for the ongoing quarter also proving stronger than anticipated. This performance led to a stock increase of over 5% in extended trading.
Nvidia CEO Jensen Huang directly addressed the market's apprehension regarding AI valuations during the company's earnings call. His reassurances come at a critical time, as concerns over AI stock prices were a primary driver of a recent market sell-off. The positive report from Nvidia has had a ripple effect, with shares of fellow chipmakers like Broadcom, Qualcomm, AMD, and TSMC experiencing gains ranging from 2.5% to 4% in after-hours trading.
Elsewhere, Federal Reserve meeting minutes suggested a divided stance on further interest rate cuts, impacting market expectations for the December policy decision. The US Dollar Index rose, while Gold prices remained relatively stable. All eyes are now shifting to the upcoming Non-farm payrolls data for September, which will provide crucial insights following the end of a significant government shutdown.
