Nvidia surprised the street with another major beat to guidance estimates for its Q2 earnings release - arguably the most widely watched corporate earnings report globally in 2023, with the stock +9% higher in after-hours trading.
However, in the following Asia trading session - which is the world's first region to start the full trading day, and thereby the first to react to the A.I. giant's strong quarter and optimistic guidance - the various market reactions were surprisingly tepid. Shares of TSMC, SK Hynix, Advantest and other "A.I. plays" were consistent in being fairly muted. The broader Nikkei225 and Nasdaq 100 index futures were also limited in both upside and in volume traded.
Weston Nakamura walks through these market cues out of Asia, which point to a potentially disappointing market response on NVDA shares themselves at US market open later, as well as other A.I. thematic shares globally.
Weston also provides the market background of what had helped drive the A.I. and NDX momentum from last quarter, as well as the August market sell-off for critical context in understanding NVDA and A.I. momentum plays.
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