Nvidia Fuels Global Rally; Goldman & Boeing Management Changes
Today’s podcast covers the surge in futures, particularly the 2% gain for the NASDAQ futures following another blowout quarter from Nvidia. The AI darling is up more than 12% in early trading, with the world’s most valuable chipmaker predicting better-than-expected revenue of $24 billion in the current period. Nvidia CEO Jensen Wang is optimistic about the future, citing excellent conditions for continued growth. Demand for Nvidia’s latest products is expected to exceed supply for the rest of the year, impacting other tech stocks as well.
Nvidia’s Impact on Global Markets
- Shares of Super Micro computer surge by 15%
- Other tech stocks on the rise: Advanced Micro Devices, Planeter, and Marvel Technologies by 6%
- Applied Materials up by almost 4%, Intel up by about 2%
- Impact on European stocks
The AI Party Rolls On in Europe
- Euro Stoxx 600 hits a record high
- Optimism around economic growth fuels rally
- AI chip demand boosts shares for be semiconductor and ASML
The surge in Japanese stocks with the Nik 225 index rallying over 2% is a milestone, and Nvidia’s earnings overshadow a hawkish tone from the minutes of the Federal Reserve’s latest policy meeting. Former Fed Vice Chairman Richard Clarida notes concerns about cutting rates too quickly and inflation data influencing rate cut decisions.
Political and Corporate Developments
- President Biden weighs unilateral action to tighten migrant rules
- Management changes at Goldman Sachs
- Boeing’s removal of head of 737 Max unit
Rivan Automotive’s Struggles
- Shares down by 14% in early trading
- Company plans to cut 10% of its salaried workforce
- Production guidance falls below Wall Street’s expectations
While Rivan Automotive grapples with stagnant demand, Mercedes announces a $3.2 billion share buyback program amid better than expected cash flow. In other news, legal battles surrounding extradition, criminal cases, and sentencing make headlines in New York and around the world.
Hot Take
The surge in Nvidia’s earnings marks a game-changing moment for AI and Tech Bulls, with Nvidia being the rising tide lifting all boats. While headwinds like China restrictions pose risks, Nvidia’s strong outlook justifies its valuation, and the company remains resilient in navigating challenges.
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