Nvidia smashes earnings, warns on China 29/05/2025

HOT stories for today

US market wrap:

• The Dow Jones Industrial Average moved lower Wednesday afternoon, pressured by declines in Merck (MRK) and Nike (NKE) shares. The blue-chip index was recently down 248 points, or 0.6%, with losses in these two names contributing significantly to the slide. Merck fell 1.83%, shedding $1.34, while Nike dropped 1.67%, down $1.04—together pulling the Dow down by around 15 points.
• The dip in equities followed the release of the FOMC minutes from the May 6–7 meeting, which underscored continued uncertainty surrounding fiscal and trade policy. “Participants noted that the Committee might face difficult tradeoffs if inflation proves to be more persistent while the outlooks for growth and employment weaken,” the minutes stated. But markets staged a strong overnight rebound after a federal trade court struck down Trump’s reciprocal tariffs.

Nvidia smashes earnings, warns on China

• Nvidia (NVDA) posted blowout Q1 fiscal 2025 earnings on Wednesday, driven by relentless demand for AI infrastructure, particularly within its booming data center division. The company exceeded Wall Street’s expectations, reporting revenue of $44.06 billion, a 69% year-over-year increase, and adjusted earnings per share of $0.96, beating the $0.93 consensus estimate. The standout performer was Nvidia’s data center segment, which surged 73% year-over-year to $39.1 billion, powered by accelerating demand for AI chips across cloud, enterprise, and hyperscale clients.
• Looking ahead, Nvidia guided for $45 billion in revenue for the current quarter, slightly under analysts’ expectations of $45.9 billion, citing the impact of U.S. export restrictions to China. The company flagged some inventory write-downs tied to the ban on selling advanced AI chips to Chinese customers. To offset the loss of access to the Chinese market, Nvidia is diversifying its global footprint. Notably, it secured a deal to supply AI chips to Humain, a Saudi-backed startup, as it expands into alternative growth markets. Shares of Nvidia rose around 3% in after-hours trading, signaling investor confidence despite geopolitical headwinds. The report reaffirms Nvidia’s dominance in the AI hardware race, even as trade tensions and regulation reshape its global strategy.

Stock’s on the move:

• HP (HPQ) - shares tumbled 15% after the company issued weaker-than-expected guidance. It projected fiscal Q3 adjusted earnings between 68 and 80 cents per share, missing the 90-cent consensus from LSEG. Its Q2 results also fell short of estimates, disappointing investors.
• Salesforce (CRM) - rose 1% following a strong fiscal Q1 earnings beat. The company posted adjusted EPS of $2.58, slightly above the $2.54 expected, and lifted its full-year forecast. Revenue also topped forecasts at $9.83 billion versus the expected $9.75 billion.
• C3.ai (AI) - shares jumped 14% after reporting a smaller-than-expected quarterly loss. The company posted a 16-cent loss per share for fiscal Q4, beating the 20-cent loss forecast. Revenue came in at $109 million, ahead of the $108 million consensus.
• Agilent Technologies (A) - climbed 6% after delivering solid fiscal Q2 results. The company reported adjusted EPS of $1.31 on $1.67 billion in revenue, topping analyst expectations of $1.26 EPS and $1.63 billion in sales, according to FactSet.

Watchlist: NVDA, COIN, NTNX, AMD, SOUN, CRM, A, MRVL, AI



 

Today’s action

• Asia-Pacific markets traded mostly higher on Thursday after a U.S. federal trade court decision. South Korea’s Kospi jumped 1.76%, while the Kosdaq added 0.83%. Japan’s Nikkei 225 climbed 1.63%, and Hong Kong’s Hang Seng Index rose 0.84%. 
• Overnight, U.S. futures surged following the court’s decision. The S&P 500 futures were up 1.6%, the Nasdaq 100 futures gained 2%, and Dow futures advanced 511 points, or 1.2%. Adding to the momentum, strong earnings from AI giant Nvidia helped lift sentiment across global markets. The U.S. Court of International Trade ruled Wednesday that Trump had overstepped legal limits in imposing tariffs under the guise of reciprocity, ordering the reversal of the contested measures. Traders will now digest the ruling alongside key macroeconomic updates due later today, including U.S. GDP data and weekly jobless claims.

Bitcoin

• Bitcoin (BTC) soared to an all-time high of $111,970 on May 22, marking a major milestone for the cryptocurrency market. The rally is being fueled by a wave of institutional investment and growing optimism around U.S. regulatory policy. The surge comes amid a clear shift in Washington’s tone on digital assets.
• Speaking at the Bitcoin 2025 Conference, Vice President JD Vance announced that the Trump administration is committed to fostering growth in the crypto sector. He outlined plans to ease regulatory burdens and encourage broader adoption of blockchain technologies and digital currencies. The combination of bullish institutional momentum and a more supportive policy stance has reignited investor enthusiasm, cementing Bitcoin’s role as a leading asset in the evolving financial landscape.
  Watchlist: Bitcoin: 100 000-112 000, Ethereum:1500-2800, Solana: 80-183

Forex

• The Japanese Yen (JPY) fell sharply Thursday after a U.S. court blocked Trump’s “Liberation Day” tariffs, boosting risk sentiment and pressuring safe-haven assets. Concerns over Japan’s debt levels and continued USD strength—fueled by hawkish FOMC minutes—pushed USD/JPY to a two-week high, though gains may be limited by diverging BoJ–Fed outlooks. 
• Meanwhile, EUR/USD slipped for a third straight session, trading near 1.1240, as the dollar rallied ahead of key U.S. economic data, including GDP and jobless claims. Cautious ECB commentary also weighed on the euro.
  Watchlist: EUR/USD: 1.0700-1.1600, USD/JPY: 140-151

Basic Materials
 

• Gold (XAU/USD) extended its losing streak to a fourth day, dipping to around $3,245 during Thursday’s Asian session. A U.S. court's move to block Trump’s tariffs lifted risk appetite, pressuring safe-haven assets like gold. Additional drag came from continued U.S. dollar strength and hawkish FOMC minutes. Still, U.S.-China trade tensions and broader geopolitical risks helped limit further downside.
• Meanwhile, West Texas Intermediate (WTI) crude edged up to $62.15, gaining 0.88%, after OPEC+ opted to keep its production policy unchanged. The move, along with a reported 4.236 million-barrel draw in U.S. inventories, supported oil prices ahead of July’s key output decision.
  Watchlist: GOLD 2600-3500, US Oil: 55.60-70.00
  
   

Key Economic Events Today:

EST time
08:30 am: USD Prelim GDP
08:30 am: USD Unemployment Claims
08:30 am: USD FOMC Member Barkin Speaks
10:00 am: USD Pending Home Sales
10:40 am: USD FOMC Member Goolsbee Speaks
11:00 am: USD Crude Oil Inventories
14:00 pm: USD FOMC Member Kugler Speaks


Earnings

BMO (Before the US Market opens)
RY          Royal Bank of Canada
CM          Canadian Imperial Bank
LI            LI Auto
AMC (After the US Market closes): COST, DELL, MRVL, NTAP

 

The TEFS Analyst team wishes you a successful day!