Asian chip stocks plummet as Nvidia’s slowing revenue growth worries investors
Semiconductor-related stocks in Asia mostly fell on Thursday after Nvidia’s profit forecast failed to meet some investors’ lofty expectations.
Although Nvidia’s Third quarter results Despite beating analysts’ expectations and giving a strong forecast for the quarter, its shares fell 2.5% in after-hours trading to $142.20 each.
“No matter how well a company does…if the guidance is below the whisper high end, you may see some selling pressure,” Futurum Group CEO Daniel Newman told CNBC’s “Squawk Box Asia” following the report.
The sentiment has spread to Asia, with stocks linked to Nvidia suppliers and other chip companies mostly falling.
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— Anne Bao
Adani Group chairman Gautam Adani charged with fraud in New York, shares plunge
Gautam Adani, the billionaire chairman of India’s Adani Group, was indicted in New York federal court on suspicion of involvement in a massive bribery and fraud scheme, sending the company’s shares tumbling on Thursday.
The 62-year-old billionaire and seven other defendants are accused of paying more than $250 million in bribes to Indian government officials to secure solar contracts that could generate more than $2 billion in profits.
Adani Enterprises, the flagship company of the Indian group, fell 23%, while Adani Green Energy, the company at the center of the storm, fell 18.95%. Adani Energy fell 20%.
Adani Power fell 14.48%, Adani Port fell 20% and the group’s retail arm Adani Wilmar fell 10%.
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——Li Yingshan
CNBC Pro: HSBC lists 3 “undervalued” Asian stocks to watch in 2025 – one with 63% upside potential
HSBC said Asian markets will look “very different” in 2025 given China’s new policy measures, India’s economic slowdown and Southeast Asian countries’ investment in new infrastructure.
The bank’s analysts noted that despite this, there are several stocks that could “benefit from these changes in Asia as they are best positioned to capture growth opportunities from these opportunities. Our analysts take a bottom-up perspective.” I also like this.”
“In highlighting these stocks, we decided to look beyond the general hold consensus and our goal was to highlight quality stocks that are relatively undervalued,” they said. They listed three of their top ideas.
CNBC Pro subscribers can read more here.
— Amala Balakrishna
Deutsche Bank says ‘significant correction’ comes after stock markets have been so nervous in the past
Deutsche Bank macro strategist Henry Allen said in a note to clients this week that stocks always pull back when valuations are as stretched as they are now.
“Turning points may come quickly, and … when valuations are initially stretched, room for further upside may be limited,” Allen noted. “(E)storical examples of high returns have often been accompanied by sizable returns. reversal.”
The bank cited the current high reading as Cyclically Adjusted Price to Earnings Ratio (CAPE) Posted by economist Robert Shiller, who argued that “the S&P 500’s CAPE ratio has been higher than it is today on only two other occasions in the last century.”
In the period before the dot-com bubble of the late 1990s and the global financial crisis of 2008, “because valuations were already so high to begin with, there was little room for further upside, and each time was followed by a major correction.” Lun wrote. “In fact, both times CAPE ratios got to where they are today and then there were major corrections.”
——Scott Schniper
Fed Governor Bowman says inflation progress has ‘stalled’
Federal Reserve Governor Michelle Bowman said on Wednesday that progress toward returning inflation to the central bank’s target has slowed.
“We have not yet achieved our inflation target, and as I have noted before, progress in lowering inflation appears to have stalled,” Bowman said in remarks in West Palm Beach, Florida. “I think the price stability aspect of our mission is more challenging. “There are big risks, especially with the labor market still close to full employment, but it’s also possible that we could see labor market conditions worsen.”
Recent data shows that while the all-item consumer price index edged higher in October and core interest rates have indeed remained stable at around 3.3% since August, the Fed is close to its 2% inflation target.
Inflation concerns led Bowman to vote against a 0.5 percentage point cut in September, although she voted for a 25 percentage point cut earlier this month, which she had preferred in her original move. The policymaker said she carries out her duties and considers the inflation mandate “in an independent manner, relying on facts, analysis, my own experience and judgment.”
“In some cases, this resulted in me deviating from my colleagues’ views,” she said.
— Jeff Cox
European Markets: Here are the opening calls
European markets are expected to open higher on Wednesday.
British FTSE 100 The German stock index is expected to open 4 points higher at 8,106 German DAX Index France rises 46 points to 19,108 CAC Up 23 points to 7,252 points, Italy FTSE MIB It rose 118 points to 33,567, according to IG data.
Proceeds will come from Severn Trent and British Land. The data release includes UK inflation data.
— Holly Elliot
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