Finance
Morning Bid: Nvidia kills the buzz as profit merely awesome, not legendary
Published by Global Banking and Finance Review
Posted on August 28, 2025
3 min readLast updated: January 22, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on August 28, 2025
3 min readLast updated: January 22, 2026
Nvidia's earnings, while strong, fell short of perfection, impacting tech stocks globally. Asian markets showed mixed responses, and bond markets remained stable.
A look at the day ahead in European and global markets from Gregor Stuart Hunter
Tech stocks are pulling back after Nvidia released earnings that any other CEO would probably kill for.
The chip designer and AI bellwether reported a beat to analysts' estimates and forecast Q3 revenue that was higher than Wall Street estimates. But a miss on data centre revenue and questions over China forecasts sent its shares sliding more than 3% in after-hours trading.
"Nvidia's results had to be blemish free and, despite being objectively good, they weren't perfect," said Kyle Rodda, senior market analyst at Capital.com. "With the stock trading at such a high valuation, any bad news was going to be punished."
Following two days of gain that have pushed U.S. markets to a record high, S&P 500 e-mini futures fell 0.1% and Nasdaq futures tumbled 0.2% after Nvidia's results. MSCI's broadest index of Asia-Pacific shares outside Japan swung between gain and loss, and was last down 0.3%.
SPILLOVER
The chill was felt across the Asian tech sector, as Taiwan Semiconductor Manufacturing Co tumbled 1.7% and Samsung Electronics slipped 0.7%, hinting at what may be in store for Dutch chipmaker ASML in the European session.
Nvidia's Chinese competitors surged, with SMIC gaining 8.3% and Cambricon Technologies - whose shares have almost tripled since mid-July - adding another 7.1% after the company on Wednesday said it had swung into profit. The two chipmakers pushed the STAR 50 Index of Chinese growth stocks to a gain of as much as 5%.
REINING IN EXPECTATIONS
French bonds steadied, with the yield on 30-year bonds pulling back from the highest level since November 2011 on Wednesday as traders dialled back expectations of the hit to government borrowing costs from the country's political crisis.
In trade news, Japanese stocks fluctuated between gain and loss, with the Nikkei 225 last up 0.6%, after Kyodo news agency reported on Thursday that Japan's top trade negotiator Ryosei Akazawa cancelled a planned visit to the United States, where he was set to iron out details of a trade deal agreed last month.
Key developments that could influence markets on Thursday:
* Earnings: Pernod Ricard, CD Projekt, Brunello Cucinelli * Eurozone data: Money-M3 Annual Growth for July * Business Climate, Economic Sentiment, IndustrialSentiment, Services Sentiment and Consumer Confidence for August(Reporting by Gregor Stuart Hunter; Editing by Christopher Cushing)
A tech stock refers to shares of companies that operate in the technology sector, including those involved in software, hardware, and IT services.
Market volatility refers to the rate at which the price of securities increases or decreases for a given set of returns. It indicates the level of risk associated with the price fluctuations.
The bond market is a financial market where participants can issue new debt or buy and sell debt securities, primarily bonds.
An earnings report is a quarterly or annual financial statement that publicly traded companies must file, detailing their revenue, expenses, and profits.
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