Fu Peng on NVIDIA's earnings report: The market has grown indifferent to its financial results; going forward, attention should focus on how long the boosting effect from Jensen Huang's remarks will last.
53 minutes ago
Fu Peng, chief economist at Xinhuo Group, published an article noting that while NVIDIA’s latest financial results have beaten expectations for 15 consecutive quarters, the market has shown a lukewarm response to the figures themselves. Indicators such as stock prices and option volatility show that market investors are currently “more concerned about the future: whether the free cash flow at the center of future stock indices can be delivered smoothly, and how long the momentum of AI growth can be sustained. These issues actually carry more weight than single-quarter financial performance, so even if this quarter’s results exceed Wall Street expectations by a few percentage points, they cannot change the denominator side of valuation.” Fu Peng believes that Jensen Huang’s explicit statement in the earnings call that “the inflection point for AI has arrived” is essentially a move to calm the market, aimed at strengthening confidence in the formation of a closed-loop AI industry chain and easing concerns over overinvestment. Going forward, investors should observe how long it takes the market to digest this round of confidence boost, the elevated expectations brought by Jensen Huang, and how long this sentiment will last. If the sentiment fades quickly, it indicates the market’s typical mindset of “not acting until seeing results” (the Chinese idiom for waiting for concrete proof before acting). The impact of repeated confidence boosts and reassurances from manufacturers is actually gradually weakening, a trend that can be clearly observed from the duration of market volatility following each earnings call.
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