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- 🗞️ Nvidia Stuns Wall Street
🗞️ Nvidia Stuns Wall Street
PLUS: Tech stocks rebound
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Market Performance
S&P 500: 6,642.16 ⬆️ 0.38%
Nasdaq: 22,564.23 ⬆️ 0.59%
Dow Jones: 46,138.77 ⬆️ 0.1%
Nvidia Surges on EPS and Revenue Beat
Nvidia silenced AI skeptics with blockbuster third-quarter results that sent shares surging by more than 5% in pre-market trading.
The chipmaker posted earnings of $1.30 per share on revenue of $57.01 billion, handily beating Wall Street's expectations, and guided fourth-quarter sales to $65 billion versus the $61.66 billion analysts anticipated.
CEO Jensen Huang revealed the company is sitting on $500 billion in orders for 2025 and 2026 combined, with CFO Colette Kress noting "the number will grow."
Data center revenue hit $51.2 billion, crushing estimates and growing 66% year over year, driven by the new GB300 chips.
Source: App Economy Insights
Cloud GPUs are sold out," Huang declared, directly addressing concerns about whether demand from tech giants like Microsoft, Amazon, Google, and Meta is sustainable.
With these hyperscalers collectively planning to spend over $380 billion on AI infrastructure this year, Nvidia's growth runway remains remarkably long.
Our Takeaway
Despite concerns about an AI bubble, Nvidia's results prove the infrastructure buildout is far from over.
With massive order backlogs and sold-out inventory, the company remains the indispensable backbone of the AI revolution.
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Market Overview 📈
Wednesday brought welcome relief for investors after four consecutive days of losses. The S&P 500 and Nasdaq posted gains, breaking their losing streak ahead of Nvidia's highly anticipated earnings report.
The tech-heavy indices were lifted by Alphabet, which surged 3% to an all-time high following the debut of its Gemini 3 AI platform on Tuesday.
The Federal Reserve minutes released yesterday revealed significant division among officials regarding future rate cuts.
While the committee approved an October cut, many members expressed skepticism about additional reductions in December, citing ongoing inflation concerns despite a softening labor market.
Markets had widely anticipated another cut, making this hawkish tone a potential headwind.
Adding to market concerns, the Bureau of Labor Statistics announced it won't release full October employment data due to the recent government shutdown, pushing the November jobs report to December 16.
This delayed data complicates the Fed's decision-making process heading into its final policy meeting of the year.
The dollar index hit a fresh high of 99.792, its strongest level since early November, while Bitcoin dropped nearly 4% to briefly touch $89,243, its lowest point since April.
The cryptocurrency's 5% year-to-date decline reflects broader risk-off sentiment and concerns about elevated valuations across speculative assets.
Stock Moves Deciphered 📈
⚡️ Constellation Energy (CEG)
Constellation Energy shares jumped 5% after the Trump administration announced a $1 billion federal loan to restart the Crane Clean Energy Center nuclear plant in Pennsylvania, formerly known as Three Mile Island Unit 1.
The loan covers most of the project's $1.6 billion cost and supports the company's power purchase agreement with Microsoft to meet surging data center demand.
The plant is expected to generate power again in 2027, marking a significant milestone in nuclear energy's resurgence.
⚒️ Lowe's (LOW)
Lowe's rallied by more than 4% despite cutting its full-year earnings guidance, as its third-quarter results exceeded expectations.
The home improvement retailer earned an adjusted $3.06 per share, beating estimates of $2.97, demonstrating resilient execution amid choppy consumer spending.
While the company lowered its full-year profit range to $7-$8 per share from $7-$9, investors focused on the strong quarterly beat and the company's ability to navigate a challenging retail environment.
🤖 Applied Materials (AMAT)
Applied Materials climbed more than 4% following a robust fourth-quarter earnings report that surpassed analyst expectations across both revenue and earnings.
The semiconductor equipment manufacturer benefits enormously from insatiable demand for AI infrastructure, as chipmakers race to expand production capacity.
With companies like Nvidia selling out of GPUs and hyperscalers planning massive capital expenditures, Applied Materials is positioned at a critical chokepoint in the AI supply chain.
Headlines You Can't Miss 👀
🤝 Blue Owl Capital called off the merger of its two private-credit funds after investor backlash over restricted redemptions and potential 20% paper losses.
🛍️ Target slashed full-year earnings guidance to $7-$8 per share from $7-$9, citing choppy consumer spending and increased price sensitivity among shoppers.
💰 Brookfield Asset Management launched a $100 billion AI infrastructure fund in partnership with Nvidia and Kuwait Investment Authority, with $5 billion already committed.
📉 QuantumScape was downgraded by HSBC, with an analyst citing a lack of transparency into contract economics, despite shares rallying 141% year to date.
🏪 TJX Companies rose 3% after Q3 earnings beat expectations by $ 0.06 to $ 1.28 per share, showing resilience in the off-price retail sector.
💵 U.S. trade deficit plummeted 23.8% to $59.6 billion in August, driven by a steep 5.1% drop in imports amid tariffs that are affecting global trade flows.
🔋 ON Semiconductor gained 4% after the board approved $6 billion stock buyback program over the next three years, starting January 2026.
Trending Stocks 📊
🚀 Alphabet (GOOGL)
Alphabet shares surged 3% to an all-time high following Tuesday's debut of Gemini 3, its latest AI model.
The enhanced platform delivers better answers to complex questions with significantly less prompting than its predecessor, requiring less context to understand user intent.
🍔 DoorDash (DASH)
DoorDash shares fell 4.6% despite Jefferies upgrading the stock to buy with a $260 price target.
The firm believes the 20% decline over the past month has created an attractive entry point, citing underappreciated advertising revenue opportunities and strong execution fundamentals.
🔋 Plug Power (PLUG)
Plug Power plummeted 11% after announcing plans to offer $375 million in senior convertible notes due in 2033.
The hydrogen fuel cell developer's debt offering raised immediate dilution concerns among investors already wary of the company's path to profitability.
What’s Next?
Key market and macro news 👇
💰Tech sector continues reporting with additional follow-up analysis on Nvidia's guidance expected throughout the week
🛒 Retail earnings season winds down with investor focus shifting to holiday spending forecasts
💸 Dollar strength and bond market movements to remain key indicators of inflation expectations
👩💼 The Bureau of Labor Statistics is scheduled to release the delayed September nonfarm payrolls report, a crucial indicator of the labor market's strength and potential inflation.
🏠 The release of October's existing home sales figures will provide insight into the health of the housing market, which is sensitive to interest rate changes.
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