Nvidia announced that revenue for the three months ending in October surged 62 percent to $57 billion, fueled by strong demand for chips
Asian stock markets witnessed a relief rally on Thursday, supported by Nvidia’s standout earnings. Technology-driven markets in Japan, South Korea and Taiwan led the gains after Nvidia CEO Jensen Huang highlighted robust demand for the company’s AI chips from major cloud providers, downplaying fears of an AI-driven market bubble.
The optimism was backed by the world’s most valuable company projecting quarterly revenue well above Wall Street expectations, easing some of the AI-driven valuation concerns that had weighed on markets in recent sessions.
Markets surge on strong Nvidia earnings
The positive sentiment extended across major regional stock markets. Japan’s Nikkei 225 surged 2.65 percent, South Korea’s Kospi jumped 2.31 percent and Taiwan’s Taiex rallied 3.18 percent, driven by strong gains among tech manufacturers in the AI supply chain.
Notable movers included TSMC, which rose 4.3 percent, Samsung Electronics was up 4.97 percent, SK Hynix gained 1.96 percent and Tokyo Electron surged 5.31 percent.
MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 0.97 percent, recovering from a one-month low, while S&P 500 e-mini futures gained 1.29 percent.
In the American stock market, Wall Street shares ended a four-day losing streak ahead of Nvidia’s earnings, as investors weighed whether concerns over AI-driven valuations had been exaggerated. Nasdaq futures surged 1.84 percent.
In its quarterly earnings report on Wednesday, Nvidia announced that revenue for the three months ending in October surged 62 percent to $57 billion, fueled by strong demand for chips used in AI data centers. Sales from that segment alone rose 66 percent to over $51 billion.
The company’s fourth-quarter revenue forecast of around $65 billion also exceeded analyst expectations, lifting Nvidia shares roughly 4 percent in after-hours trading. The company’s shares are currently trading 2.85 percent higher at $186.52.
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Chinese market eases as lending rates remain unchanged
In contrast, Chinese stock markets lagged, with Hong Kong’s Hang Seng Index slipping 0.40 percent and a mainland benchmark, the CSI 300, losing 0.56 percent.
Earlier, the People’s Bank of China kept benchmark lending rates unchanged for the sixth consecutive month. While the decision was widely anticipated, concerns over a sluggish economic recovery in China have fueled market speculation for additional stimulus.
Meanwhile, the U.S. dollar index, which measures the greenback against six major currencies, rose 0.2 percent to 100.3, remaining near a two-week high. The U.S. dollar rose 0.2 percent against the yen to 157.48, following the Japanese currency’s drop to a ten-month low during U.S. trading hours and a record low against the euro.
The yen has steadily weakened since Prime Minister Sanae Takaichi’s election as party leader, losing over 6 percent of its value despite rising Japanese yields amid concerns about the borrowing required to fund her stimulus plans.
Meanwhile, the euro fell 0.2 percent against the dollar to $1.1517.
Brent crude climbed 0.5 percent to $63.8 a barrel as markets weighed the latest U.S. proposals to resolve the Ukraine conflict and braced for a U.S. deadline for companies to halt dealings with two major Russian oil firms.
Cryptocurrencies recovered some recent losses, with both bitcoin and ether up roughly 2 percent.
Meanwhile, precious metals traded erratically, with spot gold last down 0.6 percent at $4,055.19 after earlier rising as much as 0.7 percent.
