MARKETS: A muted reception to Nvidia’s strong results

The reaction of investors to the manufacturer of artificial intelligence chips Nvidia’s the result was disappointing, even though the company clearly exceeded the market’s expectations. Both turnover and especially profit grew strongly, exceeding analysts’ expectations.

The company announced its results on Wednesday after Wall Street closed. In the aftermarket, the share was up 0.2 percent.

“The market’s expectations regarding Nvidia were already priced very high, so there was little room for further growth,” said Dilin Wuresearch strategist at Pepperstone Group for Bloomberg. While Nvidia emphasized strong growth in AI computing demand and temporarily sustainable margins, “the potential threat to market share from its own chips” was not fully addressed, he noted.

Vaisu’s reaction suggests that investors may demand clearer evidence of sufficient earnings growth to justify high valuation multiples before the AI-led rally continues.

The Hang Seng index of the Hong Kong stock exchange was down 0.8 percent. Mainland China saw a gentler decline.

The Nikkei 225 index of major Japanese companies was up 0.1 percent and the broader Topics index was up 1.0 percent.

The Kospi index of South Korea’s semiconductor-focused stock exchange roared with a 3.5 percent rise.

European stock exchanges are expected to open cautiously based on futures. The Euro Stoxx 50 index future was down 0.2 percent.

On the foreign exchange market, the yen strengthened by 0.2 percent against other major currencies.

You got 1.18 dollars for the euro and 156.04 yen for the dollar.