Before the bell: calm before the storm

Nvidia Beats Expectations, But Investors Remain Unimpressed. According to CEO Jensen Huang, demand for data center chips, such as the Hopper and Blackwell, remains immense.

While the average European stock closed 0.5% lower yesterday, Brussels’ Bel20 index bucked the trend, gaining 0.5%. The index was buoyed by Argenx (+4%), which announced positive results for its blockbuster drug Vyvgart in treating myositis, a muscle inflammation disease. UCB (+3.4%) also surged after receiving FDA approval for a new treatment. In the U.S., market movements were minimal, with the S&P 500 unchanged and the tech-heavy Nasdaq down by just 0.1%. Investors largely held back, awaiting Nvidia’s highly anticipated earnings report (more on that shortly). One of the day’s major losers was Target (-21.4%), which posted disappointing results and cut its full-year outlook.

This morning, Tokyo’s Topix index fell 0.6%, while Hong Kong’s Hang Seng index slid 0.3%. In Belgium, Gimv announced a 9.4% increase in the net asset value of its portfolio, alongside a capital raise. Meanwhile, IBA reported a 22% rise in revenue. In Europe and Belgium, we await consumer confidence survey results for November, while in the U.S., unemployment figures and earnings from companies like John Deere, Warner Music Group, Intuit, and Copart will be in focus.

Measuring Success

U.S.-based Keysight Technologies, a manufacturer of various testing equipment, reported quarterly revenue of 1.29 billion dollars, beating analyst expectations of 1.26 billion dollars, despite a slight decline compared to the previous year. Earnings per share came in at 1.65 dollars, exceeding forecasts. Investors responded positively, sending the stock up nearly 9%. Keysight, formerly part of Hewlett-Packard, specializes in tools for testing electronic devices during design and production phases. Earlier this year, the company acquired Leuven-based chip design and service firm Easics in a smaller-scale deal.

AI Storm Fizzles Out

The most anticipated earnings report of the week is in: Nvidia beat expectations. Revenue surged by 94% to 35.1 billion dollars, well above the 33.1 billion dollars analysts had predicted. Profit per share also exceeded expectations at 0.78 dollars, and the company’s guidance was stronger than expected. However, for a company with a market capitalization that recently hit 3.6 trillion dollars—making it the most valuable company in history—such stellar results no longer suffice to excite investors. While Nvidia’s results hinted at potential for significant market moves, none materialized. The stock fell 2.5% in after-hours trading. CEO Jensen Huang noted overwhelming demand for Hopper and Blackwell AI chips but acknowledged the company’s inability to meet that demand fully. Investors will now wait patiently for Nvidia’s next quarterly update.

Did You Know…

The U.S. Department of Justice is urging Alphabet (Google’s parent company) to divest products such as the Chrome browser or the Android operating system? The DOJ argues that these measures would enhance fair competition in the market.

This article was translated from Dutch and was originally published on Spaarvarkens.be.