Asian markets faltered on Wednesday as investors held their breath ahead of Nvidia’s crucial third-quarter earnings, a release that could set the tone for global tech stocks.
Japan’s Nikkei, already the worst-performing major index in November with a 7pc drop in US dollar terms, surrendered early gains to trade flat. Mainland Chinese markets were steady, while Hong Kong’s Hang Seng slipped 0.5pc.
Nvidia — whose GPUs power the world’s artificial-intelligence boom — has been the driving force behind a record-setting global equity rally, lifting almost any stock with even a vague link to AI. But the momentum is wobbling. The tech-heavy Nasdaq fell 1.2pc on Tuesday, marking a second straight day of losses and dragging the index more than 6pc below its late-October record.
All eyes are now on Nvidia’s earnings, due after the US market close. Analysts expect a blockbuster performance, forecasting a 56pc jump in revenue to $54.9bn (£41.8bn) for the three months to October, according to LSEG data.
But some warn that expectations have run too hot.
“It looks like Nvidia’s stock price has been priced for perfection, so GPU demand must continue to grow strongly for many more years for the stock to stay up,”
said Wong Kok Hoi, founder and CEO of APS Asset Management in Singapore.
Wall Street’s mood was equally downbeat on Tuesday. The S&P 500 slid 0.8pc to 6,617.32, clocking its fourth straight day of losses. The Dow Jones Industrial Average fell 1.1pc to 46,091.74, while the Nasdaq dropped 1.2pc to 22,432.85.
