The Chip Figh

AI losers rise as Nvidia pressures winners

Nvidia falls heavily after its report. The bullish sentiment is dragging down a long list of companies targeting AI infrastructure and hardware.

At 16:20 Broadcom, the price rocket and memory company Western Digital, AMD, ASML and Lam Research are falling between 4.6 and 2.5 percent.

Alphabet is also falling heavily while Nvidia is down 5 percent.

On the other hand, several of the so-called AI losers continue to rise. Software companies such as Atlassian, Workday, Datadog are all going against the grain on a red Nasdaq.

Bloomberg writes that the market is nervous and has a hard time choosing which narrative to believe in the AI ​​issue. German software giant SAP's CFO Doug Tynan says that Monday was one of the strangest stock market days he has ever seen, when Citrini Research's report reaped several stock market victims.

– A hypothetical science fiction scenario from someone I’ve never heard of not only caused the market to fall, but also the White House to comment, he tells the news agency and continues:

– That was the bottom – that’s my assessment.

Experts applaud interim results – but see question marks

Experts praise Nvidia’s strong interim results that topped the high expectations.

– Those were very good numbers, quite solid, says Robert Næss, investment director at Nordea, to E24.

Carson Group’s chief market strategist Ryan Detrick says the report was the icing on the cake of a strong reporting season in the US.

– Once again, Nvidia is coming out with extremely impressive numbers straight from the top, he tells Bloomberg and states that continued record profits among companies like Nvidia justify that the bull market can continue.

But even though the report largely crushed expectations, there were some concerns. E24 notes that the gross margin landed at 71.1 percent against the expected 74.7 percent.

According to Bloomberg, CFO Colette Kress stated during the analyst conference that Chinese competitors are “making progress” and could affect Nvidia’s global competitiveness.

Kress also says that the supply situation for the most advanced chips remains strained and that the gaming segment did not meet market expectations. It is also too early to determine how much the next-generation platform Rubin will contribute to growth.

At 00.40, the stock has turned red from previously trading up over 3 percent.