KUALA LUMPUR, Dec 5 (Bernama) -- Bursa Malaysia closed lower on Friday amid mixed regional market performance as investors turned cautious over a possible rate hike by the Bank of Japan (BOJ) and upcoming US economic data that may influence the Federal Reserve’s (Fed) interest rate decision next week. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) pared most earlier losses to settle 4.55 points easier, or 0.28 per cent, to 1,616.52 from Thursday’s close of 1,621.07. The benchmark index, which opened 0.37 of-a-point lower at 1,620.70, moved between 1,609.67 and 1,621.25 throughout the day. The broader market was negative, with decliners outpacing advancers 604 to 439. A total of 550 counters were unchanged, 1,151 untraded, and 18 suspended. Turnover declined to 3.17 billion units worth RM2.24 billion from 4.48 billion units worth RM2.75 billion yesterday. Rakuten Trade Sdn Bhd vice-presiden...
Nvidia delivered another revenue beat and forecast stronger sales ahead, yet its stock slipped as investors fixated on weakness in China and hints of more cautious cloud spending.
Q3 Outlook: Higher but Not Enough
Guidance: Revenue of US$54B ±2%, topping Wall Street’s US$53.14B consensus (LSEG).
Reaction: Shares fell 2.6% after hours, erasing US$110B in market cap — more than Intel’s entire valuation.
Why the sell-off: Analysts noted the forecast excluded China, leaving upside only if shipments resume.
China Question Mark
Nvidia halted shipments of its H20 chips to China amid US trade restrictions.
A deal with the Trump administration requires Nvidia to pay 15% commission on China sales in exchange for eased restrictions, though Beijing has cautioned local firms against imports.
Nvidia had earlier warned curbs could cost US$8B in July-quarter sales.
Q2 Performance Highlights
Revenue: US$46.74B (vs. US$46.06B est.), +56% YoY.
Data centre sales: US$41B, about half from large cloud providers, but slightly below expectations (US$41.42B est.).
Single deal: One non-China customer bought US$650M worth of H20 chips.
Buyback: Approved US$60B in share repurchases.
Strategic Growth Drivers
Sovereign AI push: Nvidia expects US$20B revenue this year from selling AI systems to governments.
Long-term view: CFO Colette Kress projected US$3T–US$4T in AI infrastructure spending by 2030, with US$600B already flowing in 2025.
Cloud providers: Meta, Microsoft and others remain heavy buyers, though analysts caution hyperscaler spending may tighten if near-term AI returns stay unclear.
Market Impact
Nvidia remains the AI rally bellwether, driving much of the S&P 500’s gains over two years.
But this earnings reaction was muted: “The smallest since Nvidia’s AI incarnation,” one strategist noted.
Investors are looking past blowout numbers to China risk, cloud capex discipline, and trade politics as key determinants of Nvidia’s trajectory.
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