Nvidia's stellar results, Jackson Hole in focus - what's moving markets
Investing.com — Nvidia delivers quarterly earnings that smash expectations as the chipmaker and AI darling proclaims that computing has entered a «new era.» The results push Nvidia shares higher in premarket trading. Meanwhile, a yearly gathering of central bankers in Jackson Hole, Wyoming is set to begin, with investors focused on comments from Federal Reserve Chair Jerome Powell on Friday.
1. Nvidia beats expectations
Nvidia's (NASDAQ:NVDA) second quarter revenues crushed lofty Wall Street estimates, sending shares higher in premarket U.S. trading on Thursday, as the California chipmaker was boosted by the intensifying frenzy over generative artificial intelligence.
Estimates heading into the earnings were already sky-high, with some sources reportedly calling for sales of $12 billion in the three months ended on July 30 and $14B in the third quarter.
But even those expectations proved to be modest. Revenue came in at $13.5B during the second quarter, more than doubling the prior mark of $6.7B. Nvidia also projected that sales in the current quarter, set to finish in October, would come in at $16B.
The numbers highlight how central Nvidia has become to this year's hype over AI. The group has long invested in manufacturing graphics processors that power the burgeoning technology, putting it in pole position to benefit from soaring AI demand.
«A new computing era has begun,» Nvidia Chief Executive Jensen Huang said in a statement on Wednesday, adding that the «race is on» to adopt generative AI.
2. Nvidia's suppliers rally
The global impact of Nvidia's stellar release was felt in Asia, where the firm's regional suppliers rose sharply on Thursday.
TSMC (TG:2330y) (NYSE:TSM), Asia's biggest chipmaker and a key supplier
Read more on investing.com
