Synopsis
Asian markets are up for the fourth day. Concerns about artificial intelligence are easing. Nvidia’s sales forecast is optimistic. This is boosting Asian chipmakers. South Korea’s Kospi Index hit a record high. The dollar has weakened. Gold rose slightly. Bitcoin has fallen. Investors are watching Nvidia’s prospects for supporting the AI business.
P.A.Wall Street benchmarks rallied on Wednesday as investors looked to Nvidia’s prospects to reinvigorate the AI business and ease concerns that valuations may have outpaced fundamentals.
Asian stocks rose for a fourth day as recent turmoil caused by concerns about the impact of artificial intelligence eased, although gains were tempered by a muted response to Nvidia Corp.’s upbeat sales forecast.
THE MSCI Asia Pacific Index rose 1% to another all-time high, with South Korea’s Kospi index – a gauge of AI investment – jumping 1.9% to a record. Nvidia shares erased earlier gains in extended trading, even after the chipmaker forecast first-quarter revenue in the range of $76.4 billion to $79.6 billion, beating estimates of $72.8 billion.
U.S. stock index futures were also a bit weaker after underlying indicators rebounded on Wednesday. Elsewhere, the dollar weakened for a second day, while Treasuries broadly maintained their losses from the previous session. Gold rose slightly and Bitcoin fell to trade around $68,300.
Wall Street benchmarks rallied on Wednesday as investors looked to Nvidia’s prospects to reinvigorate the AI business and ease concerns that valuations may have outpaced fundamentals. Asian chipmakers, at the heart of the AI supply chain, could benefit if development remains intact, boosting the region’s earnings outlook in the semiconductor sector and providing support to broader stock markets.
“Nvidia’s runaway earnings should provide Asia – particularly Japan, Korea and Taiwan’s AI-related names – with a strong fundamental anchor and a welcome sigh of relief,” said Hebe Chen, senior market analyst at Vantage Global Prime. “Yet the after-hours shift shows that this market is now trading at a ‘beyond formidable’ level, requiring further acceleration rather than mere confirmation.”
After remarkable sales growth that made Nvidia the most valuable company in the world, investors proved harder to please. Nvidia signaled that concerns about an overheating AI economy would continue to weigh on the company.
Although Wall Street’s average estimate was $72.8 billion, some analysts were forecasting numbers approaching $80 billion, according to data compiled by Bloomberg.
Investors have been so sensitive that a report from a little-known company called Citrini Research outlining the potential risks of AI for various industries – using hypothetical scenarios set in the future – shook markets earlier this week. The technology’s disruptive potential has roiled stocks across sectors for weeks in what has become known as the “AI scare trade.”
Wolfe Research has conducted a poll that suggests most investors are betting that the AI ”wrecking ball” that has rocked markets is largely “overblown,” Chris Senyek said. However, participants viewed trade “expanding” as alive.
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(What’s moving Sensex And Clever Track latest market news, stock market advice, Budget 2025, Equity market on the 2025 budget And expert adviceon AND Markets. Additionally, ETMarkets.com is now on Telegram. For the fastest news alerts on financial markets, investment strategies and stock market alerts, subscribe to our Telegram feeds .)
Subscribe to AND Bonus and read it Electronic document on economic times Online.and Sensex today.
Most trending stocks: SBI share price, Axis Bank share price, HDFC Bank share price, Infosys share price, Wipro stock price, NTPC stock price
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