Source: Yahoo Finance

Nvidia almost Sparkled

Nvidia’s Q3 earnings report set the stage for optimism across tech-heavy markets. The company announced record quarterly revenue of $35.1 billion, representing a 94% year-on-year increase compared to $33.16 billion expected by analysts. Data center revenue of $30.8 billion, which skyrocketed by 112% compared to the previous year. With earnings per share of $0.81 and beating analyst expectations by almost 8%, Nvidia even more reinforced its position as the leader in AI-driven technologies.

Despite these stellar results, Nvidia’s stock did not experience significant volatility. This can be attributed to the company’s guidance for the next quarter, which, while positive, did not significantly surpass investors’ expectations. Investors expected next quarter’s revenue to be $37.1 billion and Nvidia’s guidance was set at $37.5 billion, plus or minus 2%. This tempered response indicates that the AI rally remains intact, as Nvidia’s consistent performance underlines its long-term growth potential in a rapidly expanding sector.

The Effect on the Asian Stock Market

This robust performance acted as a catalyst for global markets, particularly in Asia, where on Friday indices saw notable gains on hopes of a refueled AI rally. Japan’s Nikkei 225 added 1%, reaching 38,415.32, lifted not only by Nvidia-inspired tech momentum but also by domestic factors such as slowing inflation, which dipped to 2.3% in October. South Korea’s Kospi rose by 1.2%, while Australia’s S&P/ASX 200 climbed by 1%, as optimism about tech innovation and Nvidia’s leadership rippled through the region.*

However, not all Asian markets joined the rally. The Shanghai Composite fell 0.4%, reflecting the country’s challenges despite the global enthusiasm. The geopolitical backdrop also cast a shadow, with Russia’s unprecedented use of a ballistic missile in Ukraine unsettling markets and reminding investors of the fragile global security environment.

Source: Yahoo Finance

Bitcoin’s climb to $100,000

The cryptocurrency market was another major beneficiary of Nvidia’s success. Bitcoin surged by nearly 10% this week, briefly surpassing $99,000 before stabilizing near $98,000.* Nvidia’s advances in AI have fueled optimism in blockchain technology, where its GPUs are critical for mining operations and powering decentralized networks. Furthermore, political support has added momentum to the cryptocurrency market, with U.S. President-elect Donald Trump pledging to make the United States a global hub for cryptocurrency innovation and even proposing the creation of a strategic reserve of Bitcoin.

Conclusion

Nvidia’s consistent results and their far-reaching impact highlight the transformative power of technology in shaping global markets. While geopolitical uncertainties, such as the ongoing conflict in Ukraine or the Middle East, present challenges, the resilience of the tech sector, led by AI innovation, remains a dominant force. Nvidia’s performance this quarter is a clear testament to how a single company’s advancements can influence traditional markets, bolster Asian stocks, and propel Bitcoin closer to the coveted $100,000 milestone. The AI rally, it seems, really is far from over.

* Past performance is no guarantee of future results.