"Markets expectations around Wednesday's quarterly earnings report by the most valuable publicly traded company in the world had risen to a fever pitch. Anxiety over billions in investment in artificial intelligence pervaded, in part because the US has been starved of reliable economic data by the recent government shutdown. Investors hoped that both questions would be in part answered by Nvidia's earnings and by a jobs report due on Thursday morning."
"with options markets anticipating Nvidia's shares could move 6%, or $280bn in value, up or down. Julian Emanuel, Evercore ISI's chief equities strategist, told the Financial Times that angst around peak AI' has been palpable. The anxiety has only been heightened by signs that some AI players, including Palantir's Peter Thiel, Japanese investor Masayoshi of SoftBank have recently sold off multi-billion positions in Nvidia if only (in the case of Softbank) to place those funds in OpenAI."
"Analysts had expected the chip behemoth to show more than 50% growth in both net income and revenue in its fiscal third quarter as the tech giants Microsoft, Amazon, Alphabet and Meta that represent more than 40% of Nvidia's sales continue to pour billions into the chipmaker. The company reported growth beyond even those lofty expectations. Nvidia reported $57.01bn in total revenues, beating investor expectations of $54.9bn in revenue. Sales increased 62% year-over-year, and profit rose 65% year-on-ye"
Investor expectations around Nvidia's quarterly earnings reached extreme levels amid limited US economic data. Anxiety centered on massive AI investment and whether Nvidia's results would validate that spending. Options markets priced potential 6% swings, and notable investors trimmed Nvidia positions, heightening fears of a peak-AI narrative. Michael Burry publicly shorted Nvidia and Palantir and warned of an AI bubble. Analysts forecasted over 50% growth in net income and revenue driven by major tech customers. Nvidia delivered results above expectations, reporting $57.01bn in revenues, a 62% year-on-year sales increase and profit growth around 65%.
Read at www.theguardian.com
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