Asian technology shares ride high on AI optimism after Nvidia’s ‘stunning’ results – business live
Investors breathe sigh of relief after AI bellwether Nvidia reports doubling in quarterly revenue to nearly $100bn More on Shein . The company, which sells £5 dresses and £11-£15 jeans, is set to price its initial public offering (IPO) at HK$48.56 a share, near the midpoint of its HK$47.60 to HK$49.50 range, Reuters reported. The IPO will value the company at about a quarter of its nearly $100bn…
Investors welcomed the news after Nvidia reported a doubling of quarterly revenue to nearly $100 billion. The company's earnings call impressed analysts, who tackled a variety of concerns surrounding AI spending, competition, memory costs, margins, financing arrangements, open-source models, and China's market. Nvidia managed to address each concern effectively, highlighting its strong ecosystem, robust demand, and solid guidance.
Despite a 75% gross margin, investors were comfortable with the explanation provided, and the company's financing strategies were also viewed positively. With strong data center sales and a growing customer base, Nvidia's rapid revenue growth is attributed to its increasing presence in various market segments, including hyperscalers, industrial, and enterprise clients.
The company's investments in AI companies, such as Intel and SpaceX, have also proven fruitful. Analysts view Nvidia's results as a significant boost for the AI industry and the US stock market as a whole, following a volatile period for technology stocks.
Written by urgent.news from Guardian Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
