Nvidia's Results Revive AI Rally and Support Global Advance

Investors returned to increase exposure to AI chipmakers, and the sharp rebound in tech stocks on Thursday powered another day of upswing on Wall Street. 

The S&P 500 index increased 0.6%, and the tech-heavy Nasdaq Composite gained 1.1% after Nvidia's quarterly results surpassed market expectations. 

Nvidia's solid growth in sales and earnings and outlook soothed investor jitters over the AI spending cycle; however, analysts warned chip sales are not the weakest link in the current AI boom. 

Debt-driven data centers built by leading tech companies, including Meta Platforms, Oracle, OpenAI, and Alphabet, are viewed by many as the pursuit of profitless market share.  

For now, Nvidia's results supported an advance in the broader AI ecosystem, including chipmakers AMD, Broadcom, Marvell Technology, Qualcomm, Western Digital, and electric power equipment makers and suppliers, including Eaton and GE Vernova.  

The U.S. Bureau of Labor Statistics is set to release long-delayed September nonfarm payrolls data on Thursday.

Economists are estimating payrolls to expand by 33,000, a slight uptick from an increase of 22,000 in August.  

U.S. Stock Movers 

Nvidia Corp., the AI chip maker at the center of a seven-month-long market rally, reported revenue soared 62% from a year ago to a record $57 billion in its latest quarter, soothing market nerves.  

Revenue soared 62% to $57 billion from $35.1 billion, net income advanced 65% to $31.9 billion from $19.3 billion, and diluted earnings per share jumped to $1.30 from 78 cents a year ago. 

Data-center segment revenue soared to a record $51.2 billion, up 25% from the previous quarter and up 66% from a year ago.

During the first nine months of fiscal 2026, the company returned $37 billion to shareholders in the form of shares repurchased and cash dividends. 

The company had $62.2 billion remaining under its share repurchase authorization at the end of the fiscal third quarter.

The company's current-quarter revenue guidance exceeded market expectations, easing worries that surging valuations were ahead of fundamentals. 

The company estimated revenue in the fiscal fourth quarter of $65 billion, plus or minus 2%, and earlier the company announced a strategic partnership with OpenAI to deploy at least 10 gigawatts of Nvidia systems for OpenAI’s next-generation AI infrastructure. 

CEO Jensen Huang said demand for its Blackwell chips is "off the charts," confirming that AI chip demand is not likely to cool in the near future as leading tech companies continue to build large data centers.  

Following Nvidia's stronger-than-expected quarterly results and outlook, AI supply chain-driven stocks rallied in Japan, South Korea, and Taiwan. 

Palo Alto Networks decreased 4.5% to $191.60 after the company announced its fiscal first quarter results ending in October.  

Revenue increased 16% to $2.5 billion from $2.1 billion, net income decreased to $334 million from $351 million, and diluted earnings per share eased to 47 cents from 49 cents a year ago. 

The cybersecurity company estimated fiscal second quarter revenue to range between $2.57 billion and $2.59 billion, representing annual growth between 14% and 15%. 

In addition, the company forecast diluted non-GAAP net income per share in the range of $0.93 to $0.95, using 711 million to 715 million shares outstanding. 

U.S. Movers: Nvidia Corp.

Nvidia Corp., the AI chip maker at the center of a seven-month-long market rally, reported revenue soared 62% from a year ago to a record $57 billion in its latest quarter, soothing market nerves.  

Revenue in the quarter ending in October soared 62% to $57 billion from $35.1 billion, net income advanced 65% to $31.9 billion from $19.3 billion, and diluted earnings per share jumped to $1.30 from 78 cents a year ago. 

Data-center segment revenue soared to a record $51.2 billion, up 25% from the previous quarter and up 66% from a year ago.

During the first nine months of fiscal 2026, the company returned $37 billion to shareholders in the form of shares repurchased and cash dividends. 

The company had $62.2 billion remaining under its share repurchase authorization at the end of the fiscal third quarter.

The company's current-quarter revenue guidance exceeded market expectations, easing worries that surging valuations were ahead of fundamentals. 

The company estimated revenue in the fiscal fourth quarter of $65 billion, plus or minus 2%, and earlier the company announced a strategic partnership with OpenAI to deploy at least 10 gigawatts of Nvidia systems for OpenAI’s next-generation AI infrastructure. 

Nvidia's strong revenue growth eased market worries that the race to build data centers could slow down in the near future, after CEO Jensen Huang said that demand for its Blackwell chips is "off the charts." 

Following Nvidia's stronger-than-expected quarterly results and outlook, AI supply chain-driven stocks rallied in Japan, South Korea, and Taiwan. 

U.S. Movers: Nvidia Corp.

Nvidia Corp., the AI chip maker at the center of a seven-month-long market rally, reported revenue soared 62% from a year ago to a record $57 billion in its latest quarter, soothing market nerves.  

Revenue in the quarter ending in October soared 62% to $57 billion from $35.1 billion, net income advanced 65% to $31.9 billion from $19.3 billion, and diluted earnings per share jumped to $1.30 from 78 cents a year ago. 

Data-center segment revenue soared to a record $51.2 billion, up 25% from the previous quarter and up 66% from a year ago.

During the first nine months of fiscal 2026, the company returned $37 billion to shareholders in the form of shares repurchased and cash dividends. 

The company had $62.2 billion remaining under its share repurchase authorization at the end of the fiscal third quarter.

The company's current-quarter revenue guidance exceeded market expectations, easing worries that surging valuations were ahead of fundamentals. 

The company estimated revenue in the fiscal fourth quarter of $65 billion, plus or minus 2%, and earlier the company announced a strategic partnership with OpenAI to deploy at least 10 gigawatts of Nvidia systems for OpenAI’s next-generation AI infrastructure. 

Nvidia's strong revenue growth eased market worries that the race to build data centers could slow down in the near future, after CEO Jensen Huang said that demand for its Blackwell chips is "off the charts." 

Following Nvidia's stronger-than-expected quarterly results and outlook, AI supply chain-driven stocks rallied in Japan, South Korea, and Taiwan. 

Nvidia Corp., the AI chip maker at the center of a seven-month-long market rally, reported revenue soared 62% from a year ago to a record $57 billion in its latest quarter, soothing market nerves.  

Revenue soared 62% to $57 billion from $35.1 billion, net income advanced 65% to $31.9 billion from $19.3 billion, and diluted earnings per share jumped to $1.30 from 78 cents a year ago. 

Data-center segment revenue soared to a record $51.2 billion, up 25% from the previous quarter and up 66% from a year ago.

During the first nine months of fiscal 2026, the company returned $37 billion to shareholders in the form of shares repurchased and cash dividends. 

The company had $62.2 billion remaining under its share repurchase authorization at the end of the fiscal third quarter.

The company's current-quarter revenue guidance exceeded market expectations, easing worries that surging valuations were ahead of fundamentals. 

The company estimated revenue in the fiscal fourth quarter of $65 billion, plus or minus 2%, and earlier the company announced a strategic partnership with OpenAI to deploy at least 10 gigawatts of Nvidia systems for OpenAI’s next-generation AI infrastructure. 

Nvidia's strong revenue growth eased market worries that the race to build data centers could slow down in the near future, after CEO Jensen Huang said that demand for its Blackwell chips is "off the charts." 

Following Nvidia's stronger-than-expected quarterly results and outlook, AI supply chain-driven stocks rallied in Japan, South Korea, and Taiwan. 

Target Corp. decreased 2.5% to $86.60 after the company reported a decline in sales and earnings in the fiscal third quarter ending in September. 

Revenue fell 1.5% to $25.3 billion from $25.7 billion, net income dropped 19.3% to $689 million from $854 million, and diluted earnings per share edged up to $1.14 from $1.12 a year ago. 

For the fourth quarter, the company reiterated its estimate of "low-single-digit decline in sales," and the full-year diluted earnings per share estimate was revised lower to between $7.70 and $8.70. 

Dolby Laboratories edged up 0.6% to $64.96 after the audio and imaging company's fiscal first-quarter outlook fell short of market expectations. 

Revenue in the fiscal fourth quarter ending in September increased to $307 million from $305 million, net attributable income plunged to $49.3 million from $58.6 million, and diluted earnings per share dropped to 51 cents from 61 cents a year ago. 

Onsemi increased 3.3% to $47.04 after the company's board authorized a new three-year stock repurchase program of $6 billion starting January 1, 2026.

The current stock buyback program, which is scheduled to end at the end of 2025, has acquired about $2.1 billion of stock, using 100% of the company's free cash flow in 2025. 

Earlier in the month, the company said revenue decreased to $1.6 billion from $1.8 billion, net income fell to $255 million from $410.7 million, and diluted earnings per share decreased to 63 cents from 93 cents a year ago. 

Home Depot plunged 6% to $336.48 after the home improvement retailer lowered its same-store sales outlook and muted third-quarter results. 

Revenue increased 1.1% to $41.4 billion from $40.2 billion, net income inched lower 1.3% to $3.60 billion from $3.64 billion, and diluted earnings per share fell to $3.62 from $3.67 a year ago. 

Comparable sales increased 0.2% from a decline of 1.3%, comparable customer transactions declined to 1.6% from 0.6%, and the average ticket advanced 2% to $90.39 from $88.65 a year ago, respectively.  

The do-it-yourself store retailer acknowledged the ongoing consumer uncertainty, the weakening housing market, and the expected post-storm seasonal renovation demand that failed to materialize. 

Home Depot estimated total fiscal 2025 sales to increase 3.0%, including $2.0 billion in sales from the recent acquisition of GMS, and comparable sales growth to be "slightly positive" in the comparable 52-week period. 

The company forecast diluted earnings per share to decrease 6% from $14.91 in the fiscal year 2024. 

Walt Disney Company decreased 7.7% to $107.61, and the streaming media and theme park operator reported mixed quarterly results. 

Revenue in the third quarter was flat at $22.5 billion, net income increased to $1.3 billion from $460 million, and diluted earnings per share soared to 73 cents from 25 cents a year ago. 

The Entertainment segment revenue decreased 6% to $10.2 billion, Sports increased 2% to $4 billion from $3.9 billion, and the Experiences segment advanced 6% to $8.8 billion from $8.2 billion a year ago, respectively. 

The company's board declared a cash dividend of $1.50 per share, payable in two installments of $0.75 per share, payable on January 15, 2026, to shareholders on record on December 15, 2025, and on July 22, 2026, to shareholders on record on June 30, 2026.

StubHub Holdings plunged 19.3% to $15.22 despite the company reporting better-than-expected results in the third quarter. 

Revenue increased 8% to $468.1 million from $433.8 million, net income expanded to $1.3 billion from $45.9 million, and diluted loss per share expanded to $4.27 from a loss of 15 cents.

Gross merchandise sales rose 11% to $2.4 billion and advanced 24% excluding the impact of Taylor Swift's "Eras" tour. 

Net loss of $1.3 billion, reflecting a one-time stock-based compensation charge of $1.4 billion related to the company’s initial public offering, representing the GAAP-required recognition of multiple years of stock-based compensation to employees. 

The ticketing company listed its stock on the New York Stock Exchange in September and, together with Series O preferred equity, raised approximately one billion in gross proceeds. 

StubHub stock came under heavy pressure after the company's chief executive said during a conference call that the company will not be issuing a forward-looking guidance for the current quarter. 

Applied Materials dropped 5% to $211.74 despite the semiconductor equipment maker reporting better-than-expected fiscal fourth-quarter results. 

Revenue decreased 3% to $6.8 billion from $7.05 billion, net income rose 10% to $1.9 billion from $1.8 billion, and diluted earnings per share rose 14% to $2.38 from $2.09 a year ago. 

The company estimated fiscal first quarter revenue of $6.8 billion with a band of plus or minus $500 million and non-GAAP diluted earnings per share of $2.18 with a band of plus or minus 20 cents.  

Sweetgreen dropped 10% to $5.23 after the salad chain reported a wider-than-expected quarterly loss. 

Revenue in the third quarter ending on September 25 decreased 0.6% to $172.4 million from $173.4 million, net loss expanded to $36.2 million from $20.8 million, and diluted loss per share expanded to 31 cents from 18 cents a year ago. 

Same-store sales continued to shrink as the salad chains' core customers retrenched spending amid the cost of living crisis and avoided high-priced restaurants. 

Same-store sales decreased 9.5%, compared to an increase of 5.6% in the prior-year period. 

The company said it remained profitable at the restaurant level and earned $22.5 million compared to $34.9 million, but restaurant-level profit margin shrank to 13.1% compared to 20.1% a year ago, respectively. 

Firefly Aerospace soared 25% to $23.36 after the company reported better-than-expected third-quarter results. 

Revenue increased to $30.8 million from $22.4 million, net loss expanded to $140.3 million from $46.2 million, and diluted loss per share shrank to $1.50 from $3.57 a year ago. 

Outstanding shares jumped to 93.8 million from 12.9 million in the quarter a year ago. 

In the latest quarter, the Texas-based company recorded a one-time charge of $30 million to extinguish debt and $42.2 million in change in the fair value of warrant liability. 

Operating loss expanded to $62.2 million from $34.2 million in the quarter a year ago. 

Firefly estimated 2025 full-year revenue to be between $150 million and $158 million. 

Cisco Systems jumped 6.5% to $78.80 after the networking gear company's latest quarterly results surpassed market expectations. 

Cisco Systems said revenue in the fiscal first quarter ending on October 25 rose 8% to $14.9 billion from $13.8 billion, net income advanced 5% to $2.9 billion from $2.7 billion, and diluted earnings per share increased 6% to 72 cents from 68 cents a year ago.

Japan's Stock Indexes Jumped 3%; Yen and Bonds Turned Lower Amid Stimulus Plan Size Worries

Stocks in Japan advanced in a broad market rally, powered by a rebound in AI-linked stocks following Nvidia's stronger-than-expected quarterly results.

The Nikkei 225 Stock Average soared nearly 3%, and the broader Topix advanced 2%, as AI bubble worries receded. 

The 4-day market slumped after benchmark indexes soared as investors stepped up to increase exposure to AI-linked stocks and technology companies. 

Nvidia's revenue in the third quarter soared 67% from a year ago to a record $57 billion, and the company's current quarter revenue estimate surpassed market expectations. 

Nvidia's strong revenue growth eased market worries that the race to build data centers could slow down in the near future, after CEO Jensen Huang said that demand for its Blackwell chips is "off the charts." 

However, the Japanese bond and currency markets danced to a different tune, and investors worried that Prime Minister Takaichi's plan could worsen Japan's fiscal debt problem. 

Investors anticipate the stimulus budget to be as large as 25 trillion yen. 

The yen dropped to a new 10-month low of 157.45 against the U.S. dollar, and the yield on Japan's 10-year bonds rose above 1.8%, the highest level since 2008. 

Japan Indexes and Stocks

The Nikkei 225 Stock Average jumped 2.8% to 49,903.96, and the broader Topix advanced 2% to 3,309.39.  

SoftBank Group advanced 2.8% to ¥19,310.0, Tokyo Electron jumped 5.5% to ¥32,570.0, and Advantest Corp. increased 8.6% to ¥20,795.0. 

Kioxia Holdings jumped 4.3% to ¥11,305.0, and last week the company announced net income in the fiscal second quarter plunged 62%. 

However, the memory chip maker, spun off from Toshiba Corp., held out for strong sales in the current quarter.