Nvidia Signals Strong AI Demand Despite Supply Constraints
Nvidia chief executive Jensen Huang has said the company has sufficient supply to support “very, very robust growth” driven by the artificial intelligence boom. However, he also warned that supply limitations remain a concern as demand for advanced chips continues to expand.
Speaking at a conference in Taipei on Tuesday, Huang addressed an audience of chipmakers and computer hardware manufacturers. His remarks came a day after Nvidia unveiled a new chip designed to compete with products from rival manufacturers Advanced Micro Devices and Intel.
Nvidia Remains a Key AI Market Indicator
Nvidia is widely regarded as a barometer of the artificial intelligence sector because its chips power data centres around the world. Therefore, comments from Huang are closely watched by investors seeking clues about the pace of AI-related growth.
While his assessment highlighted strong demand prospects, the broader market reaction in Asia remained cautious. Investors focused instead on geopolitical developments and concerns about whether the ceasefire between the United States and Iran would hold.
As a result, sentiment across regional markets remained fragile. MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.1%, while S&P 500 e-mini futures declined 0.4%.
Geopolitical Tensions Influence Market Mood
Market participants also monitored developments in the Middle East. Oil prices eased as traders reassessed the risk of supply disruptions.
Brent crude fell 0.7% to $94.30 a barrel, giving back some earlier gains. The move followed reports that Iran had threatened to suspend talks with the United States.
At the same time, Lebanon announced a partial ceasefire between Hezbollah and Israel earlier in the week. Consequently, hopes emerged that tensions in the region could ease. Nevertheless, uncertainty persisted after the Israeli military reported intercepting two projectiles fired from Lebanon on Tuesday.
Asian Markets Experience Volatility
Asian equity markets reflected the uncertain backdrop. Korean shares experienced particularly sharp swings during trading.
The market initially rose 1.7% and reached a new intraday record high. However, momentum quickly reversed, and the benchmark later fell as much as 3.3%.
Meanwhile, shares in Hong Kong and mainland China provided some stability and helped limit broader regional losses. Even so, investors remained cautious as geopolitical risks continued to influence trading decisions.
European Futures Point Higher
Despite weakness in parts of Asia, early European market indicators suggested a more positive start to trading.
Pan-European futures rose 0.4%, while German DAX futures gained 0.3%. In addition, FTSE futures edged 0.1% higher, indicating a modestly stronger opening for major European markets.
Andrew Left Found Guilty of Securities Fraud
In the United States, attention also turned to a significant legal development involving prominent investor Andrew Left.
A U.S. jury found Left guilty of securities fraud on Monday, according to the Justice Department. The verdict represents a setback for a group of short sellers who have frequently challenged public companies in the United States and abroad with allegations of fraud and poor management.
The ruling is likely to draw attention across financial markets, where short sellers have long played a controversial role in exposing corporate weaknesses while also attracting criticism from targeted companies.
With inputs from Reuters