Nvidia Revenue Forecast Sparks Global Market Rally, Chipmakers, Crypto Gain
Market Reactions and Key Developments Following Nvidia's Revenue Forecast
Aug 27 (Reuters) - A look at the day ahead in European and global markets from Gregor Stuart Hunter
Nvidia's Revenue Forecast and Market Impact
It's Nvidia's world now, we just live in it. In case there were any doubt, the chip designer forecast a 70% jump in revenue next fiscal year, a rare disclosure from the world's biggest company of sales so far ahead and a show of confidence from CEO Jensen Huang that demand for its AI chips will remain unabated as far as early 2028.
The stock was up almost 5% in after-hours trading, showing little sign of slowing down after a report in The Information that Nvidia has agreed to pay $12.9 billion to buy AI platform Hugging Face.
AI Platform Acquisition and Security Concerns
That's the same open-source platform that was hacked into last month by OpenAI, which created a swarm of approximately 700 AI agents which tried to cover their tracks, according to an independent investigation into the breach.
More details are trickling out about the behaviour of OpenAI's rogue agents, including the company's disclosure that some of the bots it spun up later broke into its own networks during tests gone wrong.
Global Market Movements
Asian and U.S. Markets
However unsettling for humanity that may be, all of that has been great news for Asian chipmakers in Nvidia's supply chain. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.5%, led by a 1.8% rise in the KOSPI, which shrugged off a 25-basis-point rate hike from the Bank of Korea. S&P 500 e-mini futures climbed 0.5%.
Commodities and Cryptocurrency
Oil and Gold Prices
In oil markets, Brent crude was down 0.5% at $87.40 and is on track to fall for a fourth consecutive day as Qatar's prime minister heads to Tehran in an effort to relaunch peace talks between the U.S. and Iran.
Gold rallied 0.7% to $4,624.14 after a pullback on Wednesday, while in cryptocurrency markets, bitcoin was up 0.5% at $78,822.84 while ether climbed 0.8% to $2,492.30.
Cryptocurrency Gains and Dollar Debasement Trades
All three are benefiting from the revival of so-called "dollar debasement trades" after the U.S. Treasury department intervened in bond markets last week, this month up 14%, 25% and 34% respectively.
European Market Outlook
In early European trades, pan-region futures were up 0.4%, German DAX futures edged 0.1% higher, and FTSE futures were down 0.4%.
Upcoming Earnings and Economic Events
Key Developments That Could Influence Markets on Thursday
Key developments that could influence markets on Thursday:
Earnings Announcements
Marvell Technology, Royal Bank of Canada, Pernod Ricard
Economic Events
Germany GfK/NIM Consumer Sentiment for September
France: Producer prices and unemployment data for July
Euro Zone: Money-M3 Annual Growth for July
(Reporting by Gregor Stuart Hunter; Editing by Saad Sayeed)
