NVIDIA’s Spectacular Surge: Unveiling the Roaring 20s in Tech
NVIDIA (NASDAQ:NVDA) experienced a whirlwind of activity in after-hours trading as investors absorbed the remarkable results that exceeded expectations. After initially dipping by 6%, the stock soared 9% post-market, then surged even higher by 13% in pre-market trading. The company reported an astounding 265% revenue increase compared to the previous year, with a 22% rise in the prior quarter. Revenues reached $22.1bn, surpassing the forecasted $20.55bn, while earnings per share stood at $4.93 against the expected $4.64. Notably, Data Center sales, which now dominate the business, spiked by a staggering 409% to $18.40 billion, with a significant portion going to major cloud providers.
CEO Jensen Huang expressed confidence in the company’s growth prospects, stating that the conditions are excellent for continued expansion in 2025 and beyond. Despite a decline in Data Center sales to China due to US government licensing requirements, Huang remains optimistic about future prospects, emphasizing the global surge in demand across various sectors.
The positive news from NVIDIA had a ripple effect on the market, with AI and semiconductor companies also experiencing gains. ARM, AMD (NASDAQ:AMD), ASML, Infineon, and Supermicro all saw their shares rise following NVIDIA’s stellar performance.
On the European front, indices rallied, with the DAX reaching a new high thanks to gains in the automotive sector. The Stoxx 600 also hit a fresh intra-day record, although Nestle’s decline weighed on the food and beverage industry. The FTSE 100 posted a modest increase, staying below the 7,700 resistance level.
In the financial sector, Lloyds (LON:LLOY) shares dipped as the company set aside £450m to cover a car finance probe by the FCA. Rolls-Royce (LON:RR), on the other hand, saw its shares surge by 8% after beating profit forecasts for the year. Meanwhile, Mercedes in Germany reported higher-than-expected Q4 sales and increased shareholder returns.
Elsewhere, the FOMC meeting minutes revealed a cautious approach toward easing policy, emphasizing the need for sustainable inflation progress. The Leading Economic Index declined, reflecting economic challenges similar to those during a recession.
Amidst ongoing economic concerns, Germany adjusted its growth outlook downwards, signaling a more subdued economic outlook. Flash manufacturing PMI for Germany and the Eurozone fell below expectations, highlighting underlying economic challenges in the region.
In the forex market, the USD weakened as risk sentiment improved, with EUR/USD and AUD/USD surpassing their 200-day SMAs. GBP/USD also rallied, surpassing key resistance levels as market sentiment favored riskier assets.
Overall, the market remains optimistic following NVIDIA’s impressive performance, despite lingering economic uncertainties across various regions. The positive momentum in tech and AI sectors reflects a broader trend of resilience amid evolving market conditions and investor sentiment.
