Nvidia jumps after strong AI forecast

Nvidia shares rose more than 8% in the after-hours session after the company reported earnings. The graphics card company slightly beat its profit expectations, but its guidance for the next quarter beat analysts’ estimates, boosting the stock. “The activity around the AI ​​infrastructure we’ve built has just happened in the last 60 days,” Nvidia CEO Huang said. Nvidia, one of the world’s largest chip makers and a provider of data centers that facilitate artificial intelligence training, has become a key supplier of hardware to big tech companies like Microsoft Corp, which build services like conversational search engines. AI is one of the few areas where some technology companies are increasingly spending money, potentially adding billions of dollars to their operating costs. Many economists believe Nvidia is one of the best companies to benefit from such cost increases, as it controls about 80% of the market for graphics processing units, or GPUs, used to boost artificial intelligence. In the , US stock market, Nasdaq futures supported Nvidia about 0.77%, while Dow Jones and SandP 500 futures traded about 0.26% and 0. 2%, respectively. During the regular session of Wednesday, the Dow Jones traded 8 .50 points lower, while the SandP 500 ended the session 0.16% lower. Nasdaq rose about 0.13 percent. The moves followed the release of minutes from the Fed’s last meeting, which ended on February 1, and showed that Fed policymakers remain determined to fight inflation with higher interest rates. According to the minutes, inflation remained well above the Fed’s 2 percent target and the labor market was very tight, contributing to continued pressure on wages and prices. “The Fed has decided to release some slack in the labor market to ensure that inflation does not become entrenched at current high levels,” said Bill Adams, chief economist at Comerica Bank. “By mid-2023, CPI inflation is likely to have slowed below the Fed funds rate. However, if inflation surprises sharply again, or if the unemployment rate continues to decline, the Fed could raise more than we anticipate.” On Tuesday’s economic calendar, US GDP and jobless claims will be released Thursday afternoon, while earnings reports list Alibaba and Beyond Meat among the companies expected to publish quarterly. In the foreign exchange market, the dollar retreated slightly as many market participants digested the likelihood that the Federal Reserve would continue its tightening cycle, continuing to raise interest rates. Almost all members of the Federal Reserve favored slowing rates. However, they suggested that curbing rising inflation would be a “key factor” in raising interest rates. , The dollar fell from its weekly high against other major currencies in early Asia after rallying in Wednesday’s session following the release of the minutes. The Euro was up about 0.13% against the dollar, trading near 1.0618 after hitting a 7-week low of $1.0598 in the previous session. Oil prices rose on Thursday morning after Brent crude posted its biggest daily loss in seven weeks following the release of the central bank minutes, adding to concerns about the economy. U.S. crude futures were up about 37 cents at $80.97 a barrel by 0533 GMT, while West Texas Intermediate crude futures were up about 32 cents at $7 .27 a barrel. Both oil contracts lost more than $2 last session on concerns about tariffs. According to Haitong Futures analysts, many economists are reassessing the energy market, focusing on recovery of China’s energy needs and modest use by the United States and other major economies.

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