Nvidia Earnings Fail to Impress Amid AI Investment Jitters

Nvidia's latest earnings report, which surpassed analyst expectations, failed to excite investors seeking substantial returns from AI investments, resulting in steady share prices. Meanwhile, geopolitical tensions, notably involving U.S.-Iran negotiations and military movements, kept global markets on edge, influencing currency and oil price fluctuations.

Nvidia's recent earnings report has left investors wanting more as the results, despite exceeding analyst expectations, didn't generate the anticipated enthusiasm for the world's top-valued company. After-hours trading saw shares remain flat, undoing a brief bounce following the announcement, due to investor thirst for significant gains amid AI investments.

While Nvidia has consistently delivered impressive revenue for 14 quarters, the latest results momentarily tempered fears of AI-driven market upheaval. Despite this, Asian stocks enjoyed a relief rally, even as European and U.S. futures wavered. Simultaneously, skepticism persists over AI's promised widespread economic benefits.

On the geopolitical front, the market is cautious due to upcoming U.S.-Iran negotiations in Geneva concerning Iran's nuclear activities. Escalating tensions could potentially impact oil supply and prices, especially with increased U.S. military presence in the Middle East. Additionally, currency markets are reacting to Japan's unexpected nomination of economic stimulus advocates to the Bank of Japan's board, influencing yen valuations.

(With inputs from agencies.)