Finance
Morning Bid: Nvidia delivers, but good no longer cuts it
Published by Global Banking & Finance Review®
Posted on February 26, 2026
3 min readLast updated: February 26, 2026
Quick Summary
Nvidia’s solid beat failed to excite investors, leaving shares flat as Asia rallied and U.S./European futures eased. Oil stayed firm on Iran tensions, while the yen steadied on BoJ signals.
Nvidia Beats, Yet Markets Shrug as AI Euphoria Demands More from Investors
A look at the day ahead in European and global markets from Rae Wee
Post-Earnings Market Reaction
With expectations riding so high for Nvidia, even a solid beat in its earnings did little to satisfy investors chasing bigger returns on their artificial intelligence bets.
Nvidia Beat Meets Higher Bar
Shares of the world's most valuable company traded flat after hours, reversing a short-lived bounce in the wake of its results that showed January-quarter sales surpassed analyst expectations and a forecast for current-quarter revenue above market projections.
After all, with markets used to solid revenue beats from the chipmaker for 14 successive quarters, Wednesday's outcome hardly knocked the lights out.
Asia Stocks Rally
At the very least, however, it put concern over AI-driven market disruption and attendant costs on the back burner. Stocks in Asia rose in a relief rally on Thursday, though U.S. and European futures traded lower.
Shifting Sentiment on AI Trade
Investors have blown hot and cold on the AI trade in recent weeks, worried about returns on investment and its potential to upend entire industries, yet hesitant to sit on the sidelines.
Analysts have also said the AI boom is no longer going to be the tide that lifts all boats.
Geopolitics: U.S.-Iran Talks and Oil
Elsewhere, geopolitics continued to cast a cloud over markets.
U.S. and Iranian negotiators are due to meet in Geneva later on Thursday for their third round of talks this year about the latter's nuclear activity. At the same time, the U.S. has built up one of its biggest military deployments in the Middle East ahead of possible strikes on the Islamic Republic.
State of the Union Remarks
U.S. President Donald Trump had briefly laid out his case for a possible attack on Iran in his State of the Union speech earlier this week, saying his preference was to solve the problem through diplomacy, but that he would not allow Tehran to have a nuclear weapon. Iran has said its nuclear activity is for civilian energy production.
Oil Prices Stay Elevated
That U.S. rhetoric kept oil prices elevated on Thursday, as investors fretted about potential supply disruption in the event of a conflict.
Yen and BOJ Policy Signals
In currencies, the yen was back under the spotlight, as it languished near a two-week low after Japan's government nominated two academics seen by markets as strong advocates of economic stimulus to join the board of the Bank of Japan.
The move surprised market participants who viewed it as a reflection of Prime Minister Sanae Takaichi's easy monetary policy preferences, throwing into question the outlook for further central bank interest rate hikes.
Potential Near-Term Rate Hike
The currency found support on Thursday after the Yomiuri newspaper reported that BOJ Governor Kazuo Ueda left open the possibility of a near-term rate hike, while hawkish board member Hajime Takata similarly called for gradual policy tightening.
Thursday’s Market Watchlist
Key developments that could influence markets on Thursday:
* U.S.-Iran talks * U.S. weekly jobless claims(By Rae Wee; Editing by Christopher Cushing)
Key Takeaways
- •Nvidia beat expectations but the post-earnings market reaction was muted.
- •Asia equities rose in relief, while U.S. and European futures softened.
- •Investors remain selective on the AI trade as returns and costs are questioned.
- •Geopolitical risk from U.S.–Iran tensions kept oil prices supported.
- •Yen steadied after BoJ signals tempered earlier weakness from dovish board picks; U.S. jobless claims eyed.
Frequently Asked Questions about Morning Bid: Nvidia delivers, but good no longer cuts it
1What is the main topic?
The piece covers the global market open after Nvidia’s earnings, highlighting a muted stock reaction, shifting sentiment toward AI-related trades, and broader macro drivers.
2Why did markets react cautiously to Nvidia’s results?
Despite a beat, investors remain wary about AI investment payoffs and sector concentration risks, prompting a mixed reaction in equities and futures.
3How did geopolitics influence markets?
Heightened U.S.–Iran tensions supported oil prices and kept risk appetite in check as negotiators head to Geneva for further nuclear talks.
4What’s moving currencies, particularly the yen?
The yen initially weakened on expectations of a dovish BoJ board but steadied after signals that policy tightening remains possible.
