Live Markets: Mixed picture: Nvidia down, European tech up

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29/08/2024 12:02

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      STOXX 600 up 0.7%
    

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      Tech stocks rise
    

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      Spirits makers surge
    

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      Wall St futures higher
    

  
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    MIXED PICTURE: NVIDIA DOWN, EUROPEAN TECH UP
    Nvidia  NVDA.O  shares have rebounded from their Thursday after-hours 7% decline and are
down 1.8% in premarket trading as traders try to get a grip on the implications of its forecasts
which initially disappointed investors. 
    Meanwhile European tech is the best performing sector today, up 1.8, with chip stocks doing
even better. The Netherland's ASML  .ASML  is rising 2.9%, German chipmaker Infineon  IFXGn.DE 
is up 1.5% and STMicro  STMPA.PA  is adding 2.6%. 
    Along with some sanguine analyst reactions, they reveal a more nuanced reaction to Nvidia's
results. 
    Bank of America analysts for example have reiterated their 'Buy' rating on Nvidia - "Unique
growth at very reasonable valuation, ignore quarterly noise," they say. 
    Morningstar also said it sees no signs of an AI slowdown. 
    "Our confidence in Nvidia remains, as the company is still prospering from insatiable demand
for graphics processors, or GPU, and related products used in data centers to run artificial
intelligence," they wrote.
    But they add that Nvidia’s earnings beat wasn’t as eyepopping as in quarters past, something
Morningstar says may explain why shares fell after hours.
    Dan Coatsworth, investment analyst at AJ Bell reflected on how investors may be digesting
results, pointing out that the top end of analysts' forecasts was $0.71 earnings per share
compared to the $0.68 earnings per share which the company achieved. 
    "It looks like investors might not have taken the average of analyst forecasts to be the
benchmark for Nvidia’s performance, instead they’ve taken the highest end of the estimate range
to be the hurdle to clear," wrote Coatsworth in a note. 

    (Lucy Raitano)
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     THURSDAY'S OTHER LIVE MARKETS POSTS: 
    BURBERRY TO CHECK OUT OF FTSE 100 NEXT WEEK CLICK HERE
        STOXX 600 RISES TO 6-1/2 WEEK HIGH 
    CLICK HERE   
    EUROPEAN FUTURES STEADY AFTER NVIDIA RESULTS CLICK HERE
    NVIDIA WATCH PARTY OVER, BACK TO INFLATION VIGIL CLICK HERE
    

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Historical investor reaction to Nvidia results    https://reut.rs/3Xkoqbm
European equities rise, Wall St futures soft    https://reut.rs/4dDD96Y
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