Nvidia H100 chip in the server room of Yotta Data Services Pvt. Data Center in Navi Mumbai, India, Thursday, March 14, 2024.
Dheeraj Singh | Bloomberg | Getty Images
This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
Russia warns of nuclear reaction
The Russian Defense Ministry said that Ukraine used six US-made missiles to “attack a facility in the Bryansk region of Russia.” CNBC could not independently verify the reports. On Tuesday, Russian President Vladimir Putin updated the country’s nuclear doctrine, widening the demand Use nuclear weapons in response.
Markets recover from jitters
U.S. stocks ended mostly higher on Tuesday after falling on news of rising geopolitical tensions. shares super microcomputer up 31%. The pan-European Stoxx 600 index fell 0.45% to close at its lowest level in more than three months. At the same time, Eurostat confirmed that the euro zone’s annual inflation rate was 2% in October.
Qualcomm’s new billion-dollar business
Qualcomm The chipmaker announced at its investor day on Tuesday that it expects to earn an additional $22 billion in annual profits by 2029. Qualcomm said the PC chips it launched earlier this year will contribute $4 billion in sales. It’s part of Chief Executive Cristiano Amon’s push to diversify Qualcomm’s smartphone chip business.
Stable venture capital in Europe
Venture capital firm Atomico said it expects European startups to receive $45 billion in investment from venture capital firms by the end of 2024. That’s down from $47 billion last year, but Atomico believes Europe’s financing situation has “stable.” Atomico predicts that by 2034, the entire European technology ecosystem may be worth $8 trillion.
(PRO) S&P has room to grow in 2025
Goldman Sachs See S&P 500 Index By 2025, the index will reach 6,500 points, which would represent a gain of nearly 10% from Tuesday’s closing price on the back of a strong U.S. economy and expanding corporate profit margins. The bank’s team of equity strategists, led by David Kostin, recommends five strategies to capitalize on growth in the S&P next year.
bottom line
“The conflict is escalating…I would obviously like to see some kind of immediate, knee-jerk reaction,” said Tiffany McGhee, CEO and chief information officer of Pivotal Advisors.
However, the retreat to less risky assets is only temporary. Stocks fell briefly on the news, but most U.S. stock indexes closed higher on Tuesday. this S&P 500 Index Added 0.4% and Nasdaq Index rose 1.04%, although Dow Jones Industrial Average down 0.28%.
It seems that once investors digest these geopolitical events, they view other factors as more important to the market. As McGee points out, “This is the third year of the conflict, and while initially we saw prices spike… they have now leveled off,” she said.
One of these factors is NVIDIA The income will be paid out tomorrow. With expectations for the report so high, the chipmaker’s shares surged 4.9%.
In fact, the options market suggests that Nvidia’s profits will have a larger impact on the S&P than U.S. employment data, general consensus, wrote Gonzalo Asis, an equity analyst at Bank of America Securities. Inflated data and even the Federal Reserve meeting.
Investors won’t just focus on Nvidia’s sales last quarter. They want to know whether the chip maker’s next-generation Blackwell chips can maintain or even solidify Nvidia’s dominance in the artificial intelligence chip industry. Last month, Chief Executive Jensen Huang called demand for Blackwell “insane,” but concerns grew yesterday with a report that chips in custom servers were overheating.
Past results are not indicative of future performance. This is something every investor knows. However, given Nvidia’s performance over the past two years, it’s hard to imagine another asset that offers investors the same sense of security.
—CNBC’s Ruxandra Iordache, Katrina Bishop, Brian Evans, Samantha Subin and Pia Singh contributed to this report.
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