Recently, Nvidia released its latest financial report, and despite the challenges brought about by the United States' export controls on China, the overall performance still significantly exceeded market expectations. Stimulated by this positive news, its stock price rose about 5.46% on May 29 to close up $7.36, becoming the core driving force for the recovery of the global semiconductor sector.
Nvidia's earnings report was bright and the market reacted positively
Nvidia's financial report shows that its AI chip business continues to grow strongly, and the company still achieved revenue and profit performance that exceeded expectations despite the U.S. government's restrictions on its export of H20 chips to China. The market generally believes that this result not only demonstrates NVIDIA's dominance in the AI wave, but also reflects the continued strong demand for global computing power.
Global semiconductor stocks rose in response
As the "weather vane" of the semiconductor and artificial intelligence sectors, NVIDIA's strong earnings report quickly caused a resonance in the global market.
1. In the Asian market, Japan's Tokyo Electron closed up more than 4%, and South Korea's SK hynix (Nvidia's high-bandwidth memory supplier) rose nearly 2%.
2. In the European market, the stock prices of related companies such as ASM International, BE Semiconductor Industries and ASML have risen.
3. In the U.S., there was a positive ripple effect, with Marvell up 7% in pre-market trading and Qualcomm shares also recording significant growth.
Why does Nvidia have a "driving effect"?
The rise in Nvidia's share price triggered a rebound in global semiconductor stocks, reflecting its core position in the industry chain and the transmission mechanism of market sentiment.
image: Nvidia's earnings exceeded expectations, driving a comprehensive rebound in global semiconductor stocks
First, the role of the industry's "wind vane" is prominent
NVIDIA has a share of more than 90% of the global AI chip market, and its GPUs are widely used in large-scale model training and high-performance computing centers. Investors generally see their earnings reports as a barometer of industry fundamentals. Once the revenue and profit exceed expectations, it usually means that the downstream demand is strong, which will drive the expected improvement of the entire industrial chain.
Second, upstream and downstream enterprises benefit from linkage
Nvidia's improved performance is a direct benefit to its supply chain partners. For example, SK hynix, which provides HBM (high-bandwidth memory), and packaging and test plants, all saw their stock prices rise in anticipation of an increase in orders. At the same time, its expansion may also drive the demand for equipment and material procurement, which in turn will be beneficial to semiconductor equipment manufacturers such as Tokyo Electron and ASML.
Third, market sentiment and global capital flows have a magnifying effect
As a technology giant with a market capitalization of more than a trillion dollars, the rise in Nvidia's stock price has boosted the risk appetite of the overall market, and funds have also flowed from defensive assets to the growing technology sector. In addition, due to the highly globalized semiconductor industry, the dynamics of leading U.S. companies can quickly affect Asian and European markets, such as Tokyo Electron and ASML, and the stock price fluctuations of companies such as Tokyo Electron and ASML are closely related to NVIDIA.
Fourth, rebuilding confidence in growth amid policy headwinds
Although Nvidia wrote off $4.5 billion in inventory due to its inability to ship H20 chips to China, and is expected to lose $2.5 billion in revenue, its overall earnings report is still better than market expectations, indicating that the global demand for AI computing power is extremely resilient. This move not only alleviates the industry's concerns about the "impact of export restrictions", but also helps to break the outside world's doubts about the "AI demand bubble" and rebuild investors' long-term confidence in the semiconductor industry.
Summary
The contrarian growth shown by Nvidia's financial report not only once again consolidated its leading position in the field of AI chips, but also became a key catalyst to boost confidence in the global semiconductor sector. Against the backdrop of geopolitical risks and industrial adjustments, NVIDIA proved to the market with a brilliant report sheet that the core driving force of the AI wave is still continuing, and the growth in demand for computing infrastructure is reshaping the entire semiconductor ecosystem.
