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
S&P 500 +0.8%, Nasdaq +1.4%, led by tech rebound
Nvidia beats sales estimates, shares up after hours
Bitcoin jumps near US$69,000
Investors shrug off recent AI disruption fears
Nvidia Restores Confidence in AI Narrative
Shares of Nvidia Corp climbed about 1.5% after hours after forecasting fiscal Q1 sales of US$78 billion, well above the US$72.8 billion consensus.
Key point: Nvidia’s guidance reinforces confidence that AI demand remains robust despite recent doubts over spending sustainability.
Market watchers see Nvidia as the bellwether of the AI boom, and its strong outlook helped lift a US$700 billion S&P 500 ETF in late trading.
Tech Leads Second Straight Day of Gains
During regular trading:
S&P 500: +0.8%
Nasdaq 100: +1.4%
Dow Jones: +0.6%
MSCI World Index: +0.8%
The rebound followed earlier volatility sparked by a report warning about AI disruption risks across industries.
AI Worries Seen as Overblown?
A survey by Wolfe Research suggests:
Most investors believe the recent AI “wrecking ball” fears are exaggerated
The “broadening out” trade — expanding gains beyond mega-cap tech — remains intact
Morgan Stanley strategists noted:
Increasing mentions of quantifiable AI benefits in earnings calls
Growing evidence of real productivity gains from AI adoption
Crypto & Macro Moves
Bitcoin: +8% to ~US$69,164
Ether: +12% to ~US$2,075
10-year US Treasury yield: 4.05% (+2bps)
Dollar index: -0.2%
Bitcoin’s sharp rally reflects revived risk appetite tied to tech momentum.
Corporate Highlights
Salesforce gave cautious guidance
Snowflake disappointed on outlook
Advanced Micro Devices to buy US$150m stake in Nutanix
Circle Internet Group surged on strong stablecoin demand
Lowe’s flagged soft housing outlook
Trump’s AI Push
US President Donald Trump is set to meet tech leaders including:
Amazon
Meta Platforms
Microsoft
Alphabet
The administration aims to secure commitments for funding electricity costs tied to energy-intensive AI data centres.
Bottom Line
Nvidia’s strong outlook has reignited belief in the AI-driven bull market.
While concerns about AI disruption and excessive spending linger, record earnings growth and improving corporate margins continue to underpin equities. For now, the AI trade is back in focus — and markets are responding.
Key Takeaways
Nvidia beats reignite AI momentum
Tech stocks lead broad rally
Crypto surges alongside equities
AI disruption fears seen as overstated
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