Nvidia is often described as the most important stock in the world, so investors everywhere were glued to their screens on Wednesday as the AI giant reported earnings.
The numbers were predictably impressive. Third-quarter revenues of $35.08 billion (€33.66 billion) were almost twice as high as a year earlier, and comfortably beat analyst estimates of $33.25 billion. Guidance of $37.5 billion was slightly above analyst estimates but below the so-called whisper numbers ($39 billion to $41 billion).
With a $3.6 trillion market capitalisation, the world’s most valuable company is a market-moving force. Before the report, Bank of America estimated Nvidia’s earnings report was more likely to move markets than upcoming Federal Reserve decisions or inflation data. As it happened, Nvidia shares were little changed following earnings.
[ AI chip leader Nvidia forecasts fourth-quarter revenue above estimatesOpens in new window ]
Nvidia’s astonishing growth – up almost tenfold since ChatGPT’s launch two years ago, accounting for more than 7 per cent of the S&P 500 – means attention is often focused on the increasingly top-heavy nature of the US market, but this is not just an American issue. Nvidia accounts for 4.3 per cent of the MSCI All-Country World Index (ACWI) – more than all but two countries (the US and Japan), and roughly equivalent to France and Germany combined.
For investors everywhere, the future is an increasingly Nvidia-centric one.
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