Quick Summary Nvidia posted a 75.2% adjusted gross margin , among the highest in Big Tech AI hyperscalers plan US$650B capex in 2026 , much flowing to Nvidia Rivals like AMD, Alphabet and Amazon are gaining traction Long-term margin sustainability remains the key investor question Margins Steal the Show While investors already expected strong demand, NVIDIA Corp surprised with something even more impressive: Adjusted gross margin of 75.2% , the highest since late 2024 — and management expects similar levels next quarter. For a nearly US$5 trillion company , that margin signals extraordinary pricing power in AI hardware. AI Spending Wave Still Intact AI hyperscalers are forecasting ~US$650 billion in capex for 2026 , up roughly 60% from 2025. Nvidia remains the primary beneficiary as demand for data centre GPUs continues to surge. But maintaining 75% margins depends on two big factors: 1️⃣ Supply Constraints Rising memory costs remain a ris...
Quick Summary
Global equities fell for a second day amid AI disruption fears and tariff uncertainty
S&P 500 down 1%, Nasdaq -1.1%
New US 10%–15% blanket tariffs deepen policy confusion
Gold volatile, Bitcoin extends losses
Markets Turn Cautious
Global shares extended losses as investors weighed:
Fresh US tariff changes by President Donald Trump
Geopolitical tensions
Renewed fears over AI-driven economic disruption
The MSCI All-World Index dipped for a second straight session.
In the US:
S&P 500 -1.0%
Nasdaq -1.1%
Despite the pullback, the S&P remains only ~2.5% below record highs, highlighting that the correction is still contained.
AI Disruption Narrative Gaining Momentum
A bearish report from Citrini Research sparked fresh debate over:
AI’s long-term impact on employment
Corporate profitability
Global economic structure
Concerns are growing that:
Massive AI-related capex and borrowing
- Concentration risk in AI mega-capscould make markets vulnerable to sentiment swings.
Key issue: Nvidia accounts for nearly 8% of the S&P 500 — making its earnings release this week pivotal.
Tariff Uncertainty Adds to Jitters
After the Supreme Court of the United States struck down Trump’s emergency tariffs, the administration introduced:
A new 10% across-the-board tariff
Later indicated it could rise to 15%
The tariffs are based on Section 122 of the Trade Act of 1974, creating further confusion over existing trade deals.
Logistics giant FedEx has sued for tariff refunds following the ruling.
Markets remain uncertain about:
Whether trade agreements still stand
Potential retaliatory measures
Refund implications
Currency & Commodity Moves
US dollar +0.75% vs yen (¥155.79)
Euro steady at US$1.1791
Gold -1.2% to ~US$5,170 (volatile)
Brent crude +0.1% to US$71.57
Bitcoin -2.2% to ~US$63,172
Ether -2.1%
The yen weakened after reports that Prime Minister Sanae Takaichi expressed concern over further rate hikes during talks with Kazuo Ueda.
What Investors Are Watching Next
The biggest catalyst ahead:
Nvidia earnings (after US close Wednesday)
Given Nvidia’s massive index weighting, results could determine whether:
AI fears deepen
Or confidence stabilises
Bottom Line
Markets are balancing two powerful forces: AI optimism vs AI disruption risk.
Add tariff confusion and geopolitical tension, and investors are turning cautious — but not panicked.
Volatility remains elevated, and with Nvidia earnings looming, the next decisive move may not be far away.
Key Takeaways
AI disruption fears weigh on tech stocks
Tariff policy uncertainty clouds outlook
Dollar strengthens, risk assets soften
Nvidia earnings could set next direction
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