Introduction: Nvidia shrugs off AI bubble fears
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
It’s one risk event down, one to go, for investors today after Nvidia calmed nerves with some sizzling financial results.
The chipmaker at the heart of the artificial intelligence boom calmed fears of a bursting bubble – and pushed markets higher – by beating Wall Street forecasts, and giving a strong forecasts for its future performance.
Jensen Huang, founder and CEO of Nvida, tried to squish bubble fears, declaring that “We’ve entered the virtuous cycle of AI”
Huang told analysts last night:
“There’s been a lot of talk about an AI bubble.
From our vantage point, we see something very different. As a reminder, Nvidia is unlike any other accelerator. We excel at every phase of AI from pre-training to post-training to inference.”
Sales are up 62% year-over-year, reflecting the massive demand for its chips to power AI systems. The company reported $51.2bn in revenue from data-center sales, beating expectations of $49bn.
And crucially for market sentiment, Nvidia sees faster growth than expected. It is projecting fourth- quarter revenue of around $65bn; analysts had predicted the company would issue guidance of $61bn.
Nvidia’s shares jumped 5% in after-hours trading. Kyle Rodda, senior financial market analyst at capital.com, calls the results “practically spotless”, explaining:
The stock is up after hours and that’s pushed US futures higher, with Asian stock markets likely to follow suit. Something could go wrong as investors parse the details over the course of the day. However, after a torrid few weeks of trade, especially over the last three days, to paraphrase Ice Cube, today could be a good day.
Nvidia’s strong results may calm anxiety that the valuations of companies in the AI revolution have risen dangerously high, leaving the markets vulnerable to a crash. Those worries had heightened after two major investors – SoftBank and Peter Thiel – recently sold their stakes in Nvidia.
Asia-Pacific markets have rallied today (more on that shortly), and European bourses are set to open higher.
Also coming up today
The second fear which hit share prices in recent days is that US central bankers may not cut interest rates as quickly as hoped.
The long-awaited US jobs report for September is finally due to be released today, and should give insight into whether the labour market has continued to cool.
September’s Non-Farm Payrolls report is expected to show a rise of 50,000 jobs with the unemployment rate remaining at 4.3%. A weak reading might nudge the Federal Reserve towards a December rate cut…
The agenda
-
9.30am GMT: ONS data on young people not in education employment or training
-
10a, GMT: Eurozone construction data for September
-
1.30pm GMT: US non-farm payroll report for September
-
3pm: US home sales data for October
Key events
Johnson Matthey urges Reeves not to increase costs for businesses
Jasper Jolly
The boss of FTSE 250 metals group Johnson Matthey has said that chancellor Rachel Reeves should hold off increasing costs for British businesses ahead of next Wednesday’s budget.
Chief executive Liam Condon said that cost inflation was still a major issue for British industry, but that the government should also stick with plans to bring in new renewable energy supplies. He said:
The minimum is no additional cost for business. Every time costs go up, you’re making the case against investing in the UK.
In the UK cost of energy is too high versus almost anywhere in the world.
Johnson Matthey is investing in a new refinery to recycle platinum group metals in Royston, Hertfordshire. The company is negotiating with the UK government to qualify for discounts on electricity bills that are reserved for energy-intensive industries. The biggest electricity users receive a 90% discount on extra fees to the grid – paid by other users including households – under the British Industry Supercharger, but it is limited to companies in specific industries.
Johnson Matthey revealed a 38% increased in underlying profit this morning, excluding a catalyst technologies business it is selling to US conglomerate Honeywell.
The company’s main business, producing catalytic converters for petrol and diesel engines, has benefited from a slower-than-expected switch to battery electric vehicles.
Condon said that changes to US and EU rules were “really only catching up to the reality of the market”. He said that consumers had been unwilling to bear “horrendous prices” for electric vehicles, but they were now “getting to the right price point”.
European stock markets are rising across the board, as Nvidia’s results brighten the mood.
Here’s the situation:
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UK’s FTSE 100: up 72 points at 9,579, up 0.77%
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Germany’s DAX: up 241 points at 23,402, up 1%
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France’s CAC: up 90 points at 8,044, up 1.1%
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Spain’s IBEX: up 143 points at 16,031, up 0.9%
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Italy’s FTSE MIB: up 541 points at 43,192, up 1.25%
Matt Britzman, senior equity analyst at Hargreaves Lansdown, says risk appetite has raced back:
Nvidia bears the weight of the world but, like Atlas, it’s standing firm under that towering mountain of expectations.
Third quarter results delivered the goods and then some, a 4% beat on the top and bottom line came with a side of more good news in the form of a monster $65 billion revenue guide for the fourth quarter. While AI valuations are dominating the news feeds, Nvidia is going about its business in style.
There are certainly pockets of the AI space where valuations needed to take a breather, but Nvidia is not in that camp. In fact, while shares have performed well this year, the valuation has gotten more attractive as earnings growth has raced ahead.
Šefčovič: era of secure global supply chains is over
Lisa O’Carroll
European trade commissioner Maroš Šefčovič has said the decades-old global trading system with secure global supply chains is over.
In the wake of the most recent battle between the EU and China over the supply of chips for the auto industry, he told a conference in Brussels “everything could be weaponised”.
Trade he said is the “new tool” in the trade wars now causing geopolitical waves between China and the US, Europe and the US with import and export bans being imposed at will by Beijing.
“Europe for years, kind of relied upon the reliable global supply chains, this is a new situation. And suddenly we might have new tariffs, might have new exports controls.
Simply that system, which was built for decades, is not there anymore. Everything could be weaponised. So unfortunately, it became the new tool in this, I would say, geopolitical competition.”
A “well functioning World Trade Organization” with reforms was vital for the future of free trade, he added.
Games Workshop shares surge after trading update
Tabletop gaming company Games Workshop has muscled its way to the top of the FTSE 100 share index, after predicting sales and profits will be higher over the last six months.
In a brief trading update, Games Workshop told the City:
The Board’s estimate of the results for the six months to 30 November 2025, at actual rates, is core revenue of not less than £310 million (2024/25: £269.4 million) and licensing revenue of not less than £16 million (2024/25: £30.1 million). The Group’s profit before tax (“PBT”) is estimated to be not less than £135 million (2024/25: £126.8 million).
It also declared a dividend of £1.00 per share taking dividends declared so far in 2025/26 to £3.25 per share (up from £1.85 a year ago).
This has given Games Workshop’s shares a boost – they’re up 10% today at £177, nearly a year after being promoted to the FTSE 100 share index.
Fun fact, they were just £31 in January 2019, when my then-colleague Alex Hern wrote the definitive explanation of how, and why, interest in Warhammer 40,000 was booming:
FTSE 100 jumps after Nvidia results
The Nvidia relief rally has reached London.
After falling for the last five sessions, stocks are higher in early trading. The FTSE 100 share index has gained 56 points, or 0.6%, at the start of trading, to 9564 points.
Technology investors are leading the rally, with Polar Capital Technology Trust up 3.45% and Scottish Mortgage Investment Trust gaining 2.3%.
It’s another sign that Nvidia’s earnings have reassured investors.
Michael Brown, senior research strategist at brokerage Pepperstone, says:
NVDA duly delivered a classic ‘beat and raise’ after hours yesterday, not only topping both top-and bottom-line expectations, with EPS at $1.30 and revenues at $57.01bln in Q3, but also hiking Q4 revenue guidance to between $63.7bln and $66.3bln, above the consensus figure of $61.9bln. All of this, on margins well above 70%…I’m running out of superlatives to describe the figures at this stage, to be honest, though the market clearly isn’t, with NVDA popping as much as 5% after hours yesterday.
With the risk of Nvidia earnings now out of the way, and with the market seemingly content to buy back into the AI theme in the aftermath of the report, at least selectively anyway, I’m relatively confident to call an end to the recent slump that we’ve seen across the equity space, especially with spoos [the futures contract for the US S&P 500 share index] reclaiming the 50-day moving average this morning.
JD Sports says profits will be at lower end of expectations
In the City this morning, retailer JD Sports has not matched Nvidia’s cheery outlook.
JD Sports has told investors that profits this year will come in towards the lower end of current market expectations.
The leisurewear firm reports an improved trend in like-for-like sales in North America, resilient sales in Europe, and improved UK organic sales.
But, it also cautions that it is “taking a pragmatic approach” to its outlook for this financial year, due to “incrementally weaker macro and consumer indicators in recent weeks”.
Régis Schultz, CEO of JD Sports Fashion, says:
“We are navigating a year of volatility in external factors with disciplined execution, reflected in a solid Q3. In the near term, as we enter an important trading period, we are mindful of recent weak macro and consumer indicators in our key markets.
These lead us to take a pragmatic approach for our FY26 profit outturn. We remain confident in the overall positive trajectory for our industry and JD Group over the medium term, and this is well reflected in our commitment to enhanced shareholder returns.”
Deutsche Bank: Nvidia results have completely changed the market mood
After several weak trading sessions, Nvidia’s results have changed the mood in the markets, says Jim Reid, market strategist at Deutsche Bank:
He told clients this morning:
In a market baying desperately for information, today’s US payrolls follows rapidly on the back of Nvidia’s earnings last night and the start of the return to business as usual for US data.
It’s fair to say that Nvidia’s results have completely changed the market mood and pushed out any bubble fears for another day. The chipmaker delivered a decent revenue beat ($57.0bn vs $55.2bn estimate) and gave strong revenue guidance for the current quarter ($65bn vs $61.9bn est.).
The company’s CFO suggested that Nvidia could even exceed its recent target of $500bn of revenue for the next few quarters.
Asia-Pacific stocks soar on Nvidia relief
A relief rally has swept across Asian markets today after Nvidia’s market-topping earnings cheered investors.
Nvidia’s CEO Jenson Huang’s upbeat forecasts about the future of the AI also helped to send shares roaring higher in Japan, where the Nikkei index is up 2.6%.
South Korea’s KOSPI index is up 2%, while Taiwan’s TW50 index has jumped by 3.6%.
Ipek Ozkardeskaya, senior analyst at Swissquote, says Nvidia has delivered another set of impressive – and record-breaking – results, adding:
What might have made a difference in the market’s reaction is Huang saying that “we’ve entered the virtuous cycle of AI. The AI ecosystem is scaling fast – with more new foundation model makers, more AI startups, across more industries and in more countries. AI is going everywhere, doing everything, all at once.”
Introduction: Nvidia shrugs off AI bubble fears
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
It’s one risk event down, one to go, for investors today after Nvidia calmed nerves with some sizzling financial results.
The chipmaker at the heart of the artificial intelligence boom calmed fears of a bursting bubble – and pushed markets higher – by beating Wall Street forecasts, and giving a strong forecasts for its future performance.
Jensen Huang, founder and CEO of Nvida, tried to squish bubble fears, declaring that “We’ve entered the virtuous cycle of AI”
Huang told analysts last night:
“There’s been a lot of talk about an AI bubble.
From our vantage point, we see something very different. As a reminder, Nvidia is unlike any other accelerator. We excel at every phase of AI from pre-training to post-training to inference.”
Sales are up 62% year-over-year, reflecting the massive demand for its chips to power AI systems. The company reported $51.2bn in revenue from data-center sales, beating expectations of $49bn.
And crucially for market sentiment, Nvidia sees faster growth than expected. It is projecting fourth- quarter revenue of around $65bn; analysts had predicted the company would issue guidance of $61bn.
Nvidia’s shares jumped 5% in after-hours trading. Kyle Rodda, senior financial market analyst at capital.com, calls the results “practically spotless”, explaining:
The stock is up after hours and that’s pushed US futures higher, with Asian stock markets likely to follow suit. Something could go wrong as investors parse the details over the course of the day. However, after a torrid few weeks of trade, especially over the last three days, to paraphrase Ice Cube, today could be a good day.
Nvidia’s strong results may calm anxiety that the valuations of companies in the AI revolution have risen dangerously high, leaving the markets vulnerable to a crash. Those worries had heightened after two major investors – SoftBank and Peter Thiel – recently sold their stakes in Nvidia.
Asia-Pacific markets have rallied today (more on that shortly), and European bourses are set to open higher.
Also coming up today
The second fear which hit share prices in recent days is that US central bankers may not cut interest rates as quickly as hoped.
The long-awaited US jobs report for September is finally due to be released today, and should give insight into whether the labour market has continued to cool.
September’s Non-Farm Payrolls report is expected to show a rise of 50,000 jobs with the unemployment rate remaining at 4.3%. A weak reading might nudge the Federal Reserve towards a December rate cut…
The agenda
-
9.30am GMT: ONS data on young people not in education employment or training
-
10a, GMT: Eurozone construction data for September
-
1.30pm GMT: US non-farm payroll report for September
-
3pm: US home sales data for October
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