Afp Business Asia

Stock markets mostly climbed Thursday but a rally lost momentum after mixed US jobs data offset bumper earnings from chip titan Nvidia that had eased fears of an AI bubble.Europe’s main equity indices closed higher as Wall Street came off the boil following a strong open. Asia’s leading stock markets ended mixed.Investors cheered an earnings report from AI bellwether Nvidia, released after US markets closed Wednesday, which topped expectations on fierce demand for its advanced chips.Chief executive Jensen Huang brushed off fears of an artificial intelligence bubble that has caused global equities to wobble.”Nvidia’s results have completely changed the market mood and pushed out any bubble fears for another day,” said Jim Reid, managing director at Deutsche Bank. Shares in the chipmaker — which last month became the world’s first $5 trillion stock — eased after rallying at the start of Wall Street trading Thursday. The upbeat earnings were offset by data showing the US jobless rate creeping higher in September and hiring exceeding analyst expectations. “This report is unlikely to massively shift the needle for the December Fed meeting which looks like a pause,” Joshua Mahony, chief market analyst at traders Scope Markets, said of the Federal Reserve’s next interest-rate decision due in December.The dollar traded mixed against its main rivals following the update.Thursday’s jobs publication marked the first official snapshot of the labour market’s health in more than two months, owing to a 43-day government shutdown in the United States, that ended last week.Minutes from the Fed’s October policy meeting, released Wednesday, suggested officials are against cutting rates for the third time in a row next month.- Key figures at around 1645 GMT -New York – Dow: UP 0.5 percent at 46,383.31 pointsNew York – S&P 500: UP 0.6 percent at 6,678.42 New York – Nasdaq Composite: UP 0.7 percent at 22,712.03 London – FTSE 100: UP 0.2 percent at 9,527.65 (close)Paris – CAC 40: UP 0.3 percent at 7,981.07 (close)Frankfurt – DAX: UP 0.5 percent at 23,278.85 (close)Tokyo – Nikkei 225: UP 2.7 percent at 49,823.94 (close)Hong Kong – Hang Seng Index: FLAT at 25,835.57 (close)Shanghai – Composite: DOWN 0.4 percent at 3,931.05 (close)New York – Dow: UP 0.1 percent at 46,138.77 (close)Euro/dollar: UP at $1.1536 from $1.1526 on WednesdayPound/dollar: UP at $1.3087 from $1.3048Dollar/yen: UP at 157.31 yen from 157.01 yen Euro/pound: DOWN at 88.14 from 88.33 penceBrent North Sea Crude: UP 0.3 percent at $63.33 per barrelWest Texas Intermediate: UP 0.3 percent at $59.27 per barrelburs-ajb/bcp/tw

Germany’s finance minister said Thursday Beijing had made a “clear” commitment on ensuring rare earth supplies, following the first visit to China by a minister from Chancellor Friedrich Merz’s government.Germany and China have long had deep economic ties, but those have frayed in recent times over issues ranging from claims of unfair trade practices to protectionism.One particularly thorny issue has been China’s moves to restrict exports of rare earths, crucial to many sectors worldwide from automotive to electronics.But after wrapping up a visit to Beijing and Shanghai, Finance Minister Lars Klingbeil said he had received a “clear commitment from the Chinese side that there will be reliable access and supply chains for rare earths and critical raw materials, and that the Chinese side stands by this”.”This was a very important point, publicly committed to, and we will remind the Chinese side of this,” added Klingbeil, who is also German vice chancellor, as he visited Singapore following his China trip.China dominates the mining and processing of rare earths but has been tightening control over their export this year, against the backdrop of rising geopolitical tensions, especially with Washington.Beijing introduced sweeping new measures last month, before it agreed to suspend some export restrictions following talks between the US and Chinese presidents.Manufacturers in Germany, Europe’s industrial powerhouse, had been particularly hit by the export curbs.The difficulties in the China-Germany relationship were illustrated last month when Foreign Minister Johann Wadephul cancelled a visit to China at the last minute, saying that meetings with key officials could not be arranged. But there are signs that both sides want to improve their crucial economic relationship, particularly as the United States pursues its “America first” agenda under President Donald Trump.Klingbeil took part in an annual “financial dialogue” between German and Chinese officials in Beijing on his trip.This had sent “a clear signal of German-Chinese cooperation”, he said. “That was my goal in coming here, and it worked well. I believe I was able to contribute to ensuring good German-Chinese relations.”

Stock markets rallied on Thursday after bumper earnings from chip titan Nvidia eased fears of an AI bubble and overshadowed a mixed US jobs report.All three major Wall Street indices jumped at the open, following gains in Europe and Asia.Investors cheered an earnings report from AI bellwether Nvidia, released after US markets closed Wednesday, which topped expectations on fierce demand for its advanced chips.Chief executive Jensen Huang also brushed off fears of an artificial intelligence bubble that had recently caused global equities to wobble.”Nvidia’s results have completely changed the market mood and pushed out any bubble fears for another day,” said Jim Reid, managing director at Deutsche Bank. Shares in the chipmaker — which last month became the world’s first $5 trillion stock — rose around four percent on Thursday.The upbeat report overshadowed a delayed US September jobs report, which showed that hiring exceeded analyst expectations while the jobless rate crept up. Due to the record-long government shutdown, Thursday’s figures were the last official major labour market data released ahead of the Federal Reserve’s meeting in December.Minutes from the Fed’s October policy meeting, released Wednesday, suggested officials are against cutting rates for the third time in a row next month.”For as much focus as this jobs report garnered … it’s being overshadowed by Nvidia’s blowout earnings results,” said eToro US investment analyst Bret Kenwell.London, Paris and Frankfurt all advanced on Thursday after a largely positive session in Asia, which saw Japan surge nearly three percent.Tech stocks led the gains in Asia. South Korea’s Samsung and SK hynix, Taiwan’s TSMC and Japanese investment giant SoftBank all enjoyed a strong day.In company news, shares in US retail giant Walmart rose around four percent after it reported higher quarterly revenue and raised its outlook.- Key figures at around 1445 GMT -New York – Dow: UP 1.3 percent at 46,757.92 pointsNew York – S&P 500: UP 1.6 percent at 6,751.19 New York – Nasdaq Composite: UP 2.2 percent at 23,050.65 London – FTSE 100: UP 0.7 percent at 9,571.77Paris – CAC 40: UP 1.0 percent at 8,029.24Frankfurt – DAX: UP 1.1 percent at 23,418.09Tokyo – Nikkei 225: UP 2.7 percent at 49,823.94 (close)Hong Kong – Hang Seng Index: FLAT at 25,835.57 (close)Shanghai – Composite: DOWN 0.4 percent at 3,931.05 (close)New York – Dow: UP 0.1 percent at 46,138.77 (close)Dollar/yen: UP at 157.61 yen from 157.01 yen on WednesdayEuro/dollar: UP at $1.1541 from $1.1526Pound/dollar: UP at $1.3115 from $1.3048Euro/pound: UP at 88.98 from 88.33 penceWest Texas Intermediate: UP 0.8 percent at $59.92 per barrelBrent North Sea Crude: UP 0.7 percent at $63.96 per barrel

Clothing items sold by Asian e-commerce giant Shein contain dangerous chemicals at levels well in excess of EU rules, Greenpeace charged in a report published on Thursday.A spokesman for Shein told AFP that “as a precaution we will withdraw the articles that we can identify from our marketplace worldwide”.Greenpeace Germany said 18 clothing items out of 56 that it sent for testing “contained dangerous chemicals that exceed the limits in the EU’s REACH chemical regulation, sometimes severely”.Among the products was a children’s mermaid costume which exceeded the REACH limits on formaldehyde, the group said.It also said adult jackets had high amounts of phthalates, chemicals used to make plastics more flexible which have been linked to numerous health problems.Greenpeace said in a statement that the substances “especially affected workers and the environment in the countries of production”.”However consumers are also exposed to the chemicals through skin contact, sweat or breathing in fibres,” the campaign group said.When the garments are “washed or disposed of, the substances enter rivers, soils and the food chain”.The spokesman for Shein said the company “takes product safety very seriously and is committed to offering customers safe products that meet the relevant rules”.”As Greenpeace did not provide the test results in advance, we have not yet been able to evaluate them,” he said, adding that the company was investigating Greenpeace’s claims.Shein has faced various controversies over its business model and products.Earlier this month France moved to suspend Shein’s online platform following outrage over its sale of childlike sex dolls.European retailers say they face unfair competition from overseas platforms, such as Shein, AliExpress and Temu, which they claim often do not comply with the EU’s stringent rules on products.The European Commission has said it will propose a draft law next year to tackle these issues.Last week EU states also agreed to scrap a bloc-wide duty exemption on low-value orders from the likes of Shein to help tackle a flood of cheap imports into the bloc.In October a German consumer organisation said its tests of a selection of products sold by Temu and Shein found that most of them did not conform to EU safety standards, with some of them potentially “poisonous” and others posing fire risks.At the time Shein said the products in question had been withdrawn.

Most stock markets rallied on Thursday after strong earnings from chip titan Nvidia eased fears of an AI bubble.Investors’ attention turned to the delayed US September jobs report, due later in the day, for clues about the outlook for interest rates.London, Paris and Frankfurt all advanced after a largely positive session in Asia.Japan surged around three percent, while Hong Kong ended flat and Shanghai closed slightly lower.Global equities have struggled recently on warnings that tech valuations may be due a pullback after this year’s record-breaking rally.But Wednesday’s report from AI bellwether Nvidia topped expectations on fierce demand for its advanced chips, with chief executive Jensen Huang brushing off fears of a bubble.”Nvidia’s results have completely changed the market mood and pushed out any bubble fears for another day,” said Jim Reid, managing director at Deutsche Bank. Shares in the firm — which last month became the world’s first $5 trillion stock — rose more than five percent in post-market trade, while S&P 500 and Nasdaq futures also soared.Tech stocks led the gains in Asia. South Korea’s Samsung and SK hynix, Taiwan’s TSMC and Japanese investment giant SoftBank all enjoyed a strong day.However, SPI Asset Management’s Stephen Innes warned: “This is still a market balancing on a wire stretched between AI euphoria and debt-filled reality.”The upbeat report helped counterbalance minutes from the Federal Reserve’s October policy meeting, which suggested officials are against cutting rates for the third time in a row next month.A run of soft labour market reports had previously boosted bets on a string of rate reductions, lifting equities in turn.But Fed boss Jerome Powell dampened the mood last month when he warned that a December cut was “not a foregone conclusion”.Thursday’s release of US jobs data for September — delayed by the government shutdown — will be closely watched.”Unless we see a particularly concerning jobs report today, it looks likely that the next rate cut comes in 2026,” said Joshua Mahony, chief market analyst at Scope Markets.The data carries extra weight as the Bureau of Labor Statistics said it would not publish its October figures, instead rolling them into November’s full report on December 16.The pullback in US rate cut expectations sent the dollar to its strongest level against the yen since January, spurring talk of an intervention by Japanese authorities.The yen was already under pressure from concerns about Japan’s fiscal outlook before the expected release of a stimulus package by Prime Minister Sanae Takaichi. Worries that she will push for more borrowing have hit the currency and sent bond yields to record highs.In company news, shares in Games Workshop jumped more than 10 percent on London’s FTSE 100 after it forecast strong earnings and increased dividends.- Key figures at around 1115 GMT -London – FTSE 100: UP 0.8 percent at 9,579.48 pointsParis – CAC 40: UP 0.8 percent at 8,020.69Frankfurt – DAX: UP 1.1 percent at 23,408.01Tokyo – Nikkei 225: UP 2.7 percent at 49,823.94 (close)Hong Kong – Hang Seng Index: FLAT at 25,835.57 (close)Shanghai – Composite: DOWN 0.4 percent at 3,931.05 (close)New York – Dow: UP 0.1 percent at 46,138.77 (close)Dollar/yen: UP at 157.47 yen from 157.01 yen on WednesdayEuro/dollar: DOWN at $1.1518 from $1.1526Pound/dollar: UP at $1.3066 from $1.3048Euro/pound: DOWN at 88.14 from 88.33 penceWest Texas Intermediate: UP 0.9 percent at $59.95 per barrelBrent North Sea Crude: UP 0.7 percent at $63.97 per barrel

Images of Taiwanese President Lai Ching-te holding a plate of sushi were posted on social media on Thursday in a show of support for Tokyo after reports that China will halt Japanese seafood imports.The row between Japan and China was triggered by new Japanese Prime Minister Sanae Takaichi suggesting this month that Tokyo could intervene militarily in any attack on Taiwan.China claims democratic Taiwan as part of its territory and has threatened to use force to bring the self-ruled island under its control.Lai, an outspoken defender of Taiwan’s sovereignty and detested by China, has accused Beijing of “severely” affecting regional peace in the escalating spat.A photo of a smiling Lai holding a plate of sushi was posted on his Facebook page.”Today’s lunch is sushi and miso soup,” a message posted with the photo said, along with the hashtag #Yellowtail from Kagoshima and scallops from Hokkaido.Similar photos were posted on Lai’s X account, with the message and hashtag written in Japanese.A video of Lai suggesting to followers that now “might be a good time to eat Japanese cuisine” was also shared on his Instagram page.”It fully shows the strong friendship between Taiwan and Japan,” Lai said as he held the plate of sushi.China’s foreign ministry branded Lai’s posts a “stunt”.The posts followed media reports in Tokyo on Wednesday that China will suspend Japanese seafood imports. Neither government has confirmed the move.China has already summoned Tokyo’s ambassador and advised its citizens against travel to Japan after the clash over Takaichi’s comments.The release of at least two Japanese movies will also be postponed in China, according to state media.Chinese foreign ministry spokeswoman Mao Ning said on Thursday that Japan should “behave with dignity” and take “concrete actions”, including retracting Takaichi’s statement, to repair ties.”Simply asserting that its position (on Taiwan) remains unchanged does nothing to address China’s concerns”, she said at a regular news conference.Japan’s Chief Cabinet Secretary Minoru Kihara said last week his country’s position on Taiwan was “unchanged” despite Takaichi’s remarks. Taiwanese Foreign Minister Lin Chia-lung said the Chinese Communist Party (CCP) “has used tactics such as economic coercion and military intimidation to bully other countries” but urged Taiwanese to travel to Japan and buy Japanese products.”At this critical moment we must support Japan to be able to stabilise the situation, to stop the CCP’s bullying behaviour,” he said on Thursday.US ambassador to Japan George Glass vowed that Washington would stand by Tokyo during the dispute. “Coercion is a hard habit to break for Beijing,” Glass wrote on X on Thursday. “But just as the United States stood by Japan during China’s last unwarranted ban on Japanese seafood, we will be there for our ally again this time.”burs-sam/pbt

Most Asian markets rallied on Thursday after blowout earnings from chip powerhouse Nvidia cooled worries over an AI bubble and overshadowed a US Federal Reserve report that dealt a blow to hopes for a December interest rate cut.Global equities have struggled of late owing to warnings that valuations — particularly in the tech sector — have been overdone and are due a pullback, and possibly a sharp correction, following a record-breaking rally this year.Wednesday’s report from Nvidia — one of the torchbearers of the AI revolution — was therefore seen as a bellwether on the industry.And it topped expectations on fierce demand for its sophisticated chips, with chief executive Jensen Huang brushing off the recent concerns.”There’s been a lot of talk about an AI bubble,” he told an earnings call. “From our vantage point, we see something very different.”Shares in the firm — which last month became the world’s first $5 trillion stock — rose more than five percent in post-market trade, while S&P 500 and Nasdaq futures also soared.Tech firms led the gains in Asia. South Korea’s Samsung and SK hynix, Taiwan’s TSMC and Japanese investment giant SoftBank all enjoyed a strong day.Among broader markets, Tokyo, Seoul and Taipei were up between 1.9 percent and 3.2 percent.Sydney, Singapore, Wellington, Mumbai, Bangkok and Jakarta were also well up, as well as London, Paris and Frankfurt.Hong Kong pared gains to end flat and Shanghai finished lower.However, SPI Asset Management’s Stephen Innes said: “Nvidia’s latest forecast has, for now, dulled the sharpest edges of the AI-bubble anxiety that had gripped global markets.”But make no mistake: this is still a market balancing on a wire stretched between AI euphoria and debt-filled reality. “Nvidia’s results may have bought the tape a reprieve, but they haven’t rewritten the script — they’ve simply reminded traders why they still cling to the idea that one last Santa-rally can be extracted from the AI supercycle.”The reading helped offset minutes from the Fed’s October policy meeting suggesting officials are against cutting rates for the third time in a row next month.Bets on a string of reductions going into 2026 have been part of the driver of this year’s stocks rally — helped by a softening labour market — but the persistence of big price gains has started to take a toll.”Many participants suggested that, under their economic outlooks, it would likely be appropriate to keep the target range unchanged for the rest of the year,” the minutes said.Fed boss Jerome Powell said after last month’s decision that a December move was “not a foregone conclusion”.Thursday is expected to see the release of US jobs data for September, which was delayed by the government shutdown. However, the Bureau of Labor Statistics said it would not publish its October figures, instead rolling them into November’s full report on December 16.Rodrigo Catril at National Australia Bank said: “The question that follows is whether there will be enough information in December for Fed officials to make a decision.”He said the removal of the October report “leaves policymakers without a key piece of evidence for the December (policy meeting), prompting traders to sharply scale back expectations for a rate cut next month” to just 28 percent.The pullback in US rate cut expectations saw the dollar rally to 157.73 yen, its strongest since January, spurring talk of an intervention by Japanese authorities.Top government spokesman Minoru Kihara told reporters officials were “currently observing one-sided and rapid movements in the foreign exchange market, and we are concerned about it”.The yen was already under pressure from concerns about Japan’s fiscal outlook before the expected release of a stimulus package by Prime Minister Sanae Takaichi. Worries that she will push for more borrowing have hit the currency and sent bond yields to record highs.- Key figures at around 0815 GMT -Tokyo – Nikkei 225: UP 2.7 percent at 49,823.94 (close)Hong Kong – Hang Seng Index: FLAT at 25,835.57 (close)Shanghai – Composite: DOWN 0.4 percent at 3,931.05 (close)London – FTSE 100: UP 0.7 percent at 9,572.10 Dollar/yen: UP at 157.47 yen from 157.01 yen on WednesdayEuro/dollar: DOWN at $1.1520 from $1.1526Pound/dollar: UP at $1.3067 from $1.3048Euro/pound: DOWN at 88.15 from 88.33 penceWest Texas Intermediate: UP 0.4 percent at $59.70 per barrelBrent North Sea Crude: UP 0.4 percent at $63.79 per barrelNew York – Dow: UP 0.1 percent at 46,138.77 (close)

Shoppers could face higher prices for phones, laptops and other gadgets next year, manufacturers and analysts warn, as AI data centres hoover up memory chips used in consumer electronics.The world’s biggest tech companies are ploughing head-spinningly huge sums into building the hardware that powers artificial intelligence tools like ChatGPT.Their insatiable demand is snarling up a supply chain kept tight on purpose by chipmakers who are keen to avoid price drops that dent profits, experts say.In 2026, supply chain pressure for memory chips “will be far greater than this year”, Lu Weibing, president of Chinese electronics giant Xiaomi, said this week.”Everyone will likely observe that retail prices for products will see a significant increase,” he told an earnings call.William Keating, head of semiconductor and tech consulting firm Ingenuity, expects the same.”All companies that manufacture PCs, smartphones, servers etc will be impacted by the shortage,” Keating told AFP.”End result: consumers will pay more.”In high demand are key chips known as DRAM and storage components called NAND, which are found in everyday gadgets but are also needed to help process the vast amounts of data crunched by generative AI.That’s driving up memory chip prices, which in turn is turbocharging revenue for the firms that produce them such as South Korea’s Samsung and SK hynix, and Micron and SanDisk in the United States.”AI-related server demand keeps growing, and this demand significantly exceeds industry supply,” Kim Jae-june of Samsung Electronics said last month.- ‘Keep prices high’ -Samsung said Sunday that it plans to build a new semiconductor plant in South Korea to meet the soaring demand, while SK hynix recently reported its best-ever quarterly performance, “driven by the full-scale rise in prices of DRAM and NAND”.Industry analysts TrendForce have lowered their 2026 global production forecasts for smartphones and notebook laptops.”The memory industry has begun a robust upward pricing cycle,” which “forces downstream brands to hike retail prices,” TrendForce said.Cars may also be affected, although Keating noted that a smaller portion of their tech relies on memory chips.Last week China’s largest contract chipmaker SMIC said customers were hesitant to place orders owing to uncertainty over how many phones, cars, or other products the memory chip industry can supply.The cause of the shortage is two-fold. AI-driven demand is greater than anticipated, but memory chip makers have also been “drastically cutting” spending on expanding capacity in recent years, Keating explained.”Keep capacity tight, keep prices high is basically their mantra,” he said.”They’ve done this deliberately to ensure that there’s no repeat of the most recent memory price collapse, which cost the memory makers tens of billions in losses.”Price jumps for memory chips “are huge and the trend is continuing”, said Stephen Wu, founder of the Carthage Capital investment fund.”Consumers and enterprises should expect higher memory prices, longer lead times, and more take-or-pay contracts through at least early 2026,” Wu said.burs-kaf/dan

Asian markets rallied Thursday after blowout earnings from chip powerhouse Nvidia cooled worries over an AI bubble and overshadowed a Federal Reserve report that dealt a blow to hopes for a December interest rate cut.Global equities have struggled of late owing to warnings that valuations — particularly in the tech sector — have been overdone and are due a pullback, and possibly a sharp correction, following a record-breaking rally this year.Some market-watchers have warned that the hundreds of billions of dollars pumped into artificial intelligence will not likely realise any profits for some time, while others point out that infrastructure to meet demand is not yet in place.Wednesday’s report from Nvidia — one of the torchbearers of the AI revolution — was therefore seen as a bellwether on the industry.And it topped expectations on fierce demand for its sophisticated chips, with chief executive Jensen Huang brushing off the recent concerns.”There’s been a lot of talk about an AI bubble,” he told an earnings call. “From our vantage point, we see something very different.”Shares in the firm — which last month became the world’s first $5 trillion stock — rose more than five percent in post-market trade, while S&P 500 and Nasdaq futures also soared. In Asia, tech firms led the gains. South Korea’s Samsung and SK hynix, Taiwan’s TSMC and Japanese investment giant SoftBank all enjoyed a strong day. Among broader markets, Tokyo briefly jumped more than four percent, while Seoul and Taipei were more than two percent higher.Hong Kong, Shanghai, Sydney, Singapore, Wellington and Jakarta were also well up.However, SPI Asset Management’s Stephen Innes said: “Nvidia’s latest forecast has, for now, dulled the sharpest edges of the AI-bubble anxiety that had gripped global markets.”But make no mistake: this is still a market balancing on a wire stretched between AI euphoria and debt-filled reality. “Nvidia’s results may have bought the tape a reprieve, but they haven’t rewritten the script — they’ve simply reminded traders why they still cling to the idea that one last Santa-rally can be extracted from the AI supercycle.”The reading helped offset minutes from the Fed’s October policy meeting suggesting officials are against cutting rates for the third time in a row next month.Bets on a string of reductions going into 2026 have been part of the driver of this year’s stocks rally — helped by a softening labour market — but the persistence of big price gains has started to take a toll.”Many participants suggested that, under their economic outlooks, it would likely be appropriate to keep the target range unchanged for the rest of the year,” the minutes said.Fed boss Jerome Powell said shortly after last month’s decision that another move in December was “not a foregone conclusion”.Meanwhile, investors are awaiting the release Thursday of US jobs data for September, which was delayed by the government shutdown. But the Bureau of Labor Statistics said it would not publish its October figures, instead rolling them into November’s full report on December 16.But Rodrigo Catril at National Australia Bank said: “The question that follows is whether there will be enough information in December for Fed officials to make a decision.”He said the removal of the October report “leaves policymakers without a key piece of evidence for the December (policy meeting), prompting traders to sharply scale back expectations for a rate cut next month” to just 28 percent.The pullback in US rate cut expectations saw the dollar rally, hitting 157.47 yen, its strongest since January.The yen was already under pressure from concerns about Japan’s fiscal outlook ahead of the expected release of a stimulus package by Prime Minister Sanae Takaichi. Worries that she will push for more borrowing have hit the currency and sent bond yields to record highs.- Key figures at around 0230 GMT -Tokyo – Nikkei 225: UP 3.1 percent at 50,025.10 (break)Hong Kong – Hang Seng Index: UP 0.2 percent at 25,886.11Shanghai – Composite: UP 0.3 percent at 3,956.42Dollar/yen: UP at 157.10 yen from 157.01 yen on WednesdayEuro/dollar: DOWN at $1.1516 from $1.1526Pound/dollar: DOWN at $1.3038 from $1.3048Euro/pound: DOWN at 88.31 from 88.33 penceWest Texas Intermediate: UP 0.5 percent at $59.71 per barrelBrent North Sea Crude: UP 0.3 percent at $63.72 per barrelNew York – Dow: UP 0.1 percent at 46,138.77 (close)London – FTSE 100: DOWN 0.5 percent at 9,507.41 (close)

Nvidia shares climbed Wednesday after it beat quarterly earnings expectations on fierce demand for its sophisticated chips that power artificial intelligence.The solid results come amid increasing talk among Wall Street analysts of an AI bubble, with all eyes on how Nvidia, the industry’s bellwether company, will weather the doubts.”There’s been a lot of talk about an AI bubble,” Nvidia chief executive Jensen Huang said on an earnings call.”From our vantage point, we see something very different.”Jensen reasoned that companies around the world are shifting from classical computing machines and software relying on CPUs to AI-infused systems needing graphics processing units (GPUs) that are Nvidia’s specialty.Add to that software programs rapidly adapting to the AI age and a trend of AI “agents” capable of independently tending to computer work, according to Jensen.”Nvidia is chosen because our singular architecture enables all three transitions across every phase of AI,” Jensen said.”Our customer financing is up to them. We see opportunity to grow for quite some time.”AI is already paying off for internet giants in the form of improved recommendation engines and efficiencies, according to Jensen.”The internet has trillions of pieces of content,” Jensen said.”How could they possibly figure out what to put in front of you and your tiny screen, unless they have really sophisticated recommender systems to do so well — that has gone generative AI.”AI industry rivals have been pouring billions of dollars into Nvidia’s prized GPUs to power the technology despite questions regarding how the investments will pay off.Wedbush analyst Dan Ives referred to Nvidia earnings as a “pop the champagne” moment for the tech sector and a sign that worries of an AI bubble are overstated.- China sales stalled -Nvidia reported profit of $31.9 billion on record-high quarterly revenue of $57 billion, sending shares up more than 5 percent.It also took in some 60 percent more money in the quarter than it did during the same period the prior year, according to earnings figures.”Blackwell sales are off the charts, and cloud GPUs are sold out,” Huang said, referring to the latest model of its state-of-the-art hardware.”The AI ecosystem is scaling fast — with more new foundation model makers, more AI startups, across more industries, and in more countries.”Revenue in the current quarter is expected to be $65.0 billion, nearly $3 billion more than forecast by Wall Street analysts.Most of the money brought in during the recently ended quarter came from Nvidia’s unit devoted to GPUs for data centers.Nvidia was valued at more than $4.5 trillion based on the number of outstanding shares.In the period, Nvidia announced strategic partnerships with OpenAI to deploy at least 10 gigawatts of systems for next-generation AI infrastructure, while Anthropic will adopt one gigawatt of compute capacity using Nvidia’s latest systems.Nvidia is caught up in President Donald Trump’s trade war with China, where Beijing has responded by expressing national security concerns about Nvidia chips and urging Chinese businesses to rely on local suppliers instead.Sales of H-20 GPUs, which are designed for the Chinese market due to US restrictions on exports of AI chips to that country, tallied only $50 million in the quarter, according to chief financial officer Colette Kress.”Sizable purchase orders never materialized in the quarter due to geopolitical issues and the increasingly competitive market in China,” Kress said on an earnings call.”To establish a sustainable leadership position in AI computing, America must win the support of every developer and be the platform of choice for every commercial business, including those in China.”