The MSCI Asia Pacific Index rose 1% to another all-time high, with South Korea’s Kospi Index — a bellwether for AI investments — jumping 1.9% to a record. Nvidia’s shares erased earlier gains in extended trading, even after the chipmaker forecast first-quarter revenue between $76.4 billion and $79.6 billion, topping estimates of $72.8 billion.
US equity-index futures were also a touch weaker after the underlying gauges rallied on Wednesday. Elsewhere, the dollar weakened for a second day, while Treasuries broadly held their losses from the prior session. Gold edged up and Bitcoin fell to trade around $68,300.
Wall Street benchmarks rallied Wednesday, with investors looking to Nvidia’s outlook to reinvigorate the AI trade and ease concern that valuations have run ahead of fundamentals. Asian chipmakers, at the heart of the AI supply chain, stand to benefit if the build-out remains intact, bolstering the region’s semiconductor earnings outlook and lending support to broader equity markets.
“Nvidia’s blowout earnings should offer Asia — especially Japan, Korea and Taiwan’s AI-linked names — a firm fundamental anchor and a welcome sigh of relief,” said Hebe Chen, senior market analyst at Vantage Global Prime. “Yet the after-hours seesaw shows this market is now trading for ‘more than great,’ demanding renewed acceleration rather than mere confirmation.”
After a remarkable run of sales growth, which turned Nvidia into the world’s most valuable company, investors have proven harder to satisfy. Nvidia signaled that concerns about an overheated AI economy will continue to dog the company.
Though the average Wall Street estimate was $72.8 billion, some analysts had projected numbers approaching $80 billion, according to data compiled by Bloomberg.Investors have been so sensitive that a report from a little-known firm called Citrini Research outlining the potential AI risks to various industries — using hypothetical scenarios set in the future — jolted markets earlier this week. The disruptive potential of the technology has roiled stocks across sectors for weeks in what’s become known as the “AI scare trade.”
Wolfe Research conducted a poll that suggests most investors bet the AI “wrecking ball” that’s roiled markets is largely “overblown,” said Chris Senyek. However, participants viewed the “broadening out” trade as alive.
