Nvidia earnings top forecasts but stock falters in after-hours
- Asian shares varied on August 28, 2025, as Wall Street's modest gains brought the S&P 500 to a record high.
- Nvidia's earnings report showed strong revenue, though stock prices fell in after-hours trading due to concerns over AI sales growth.
- Market responses indicate mixed investor sentiment toward tech companies amidst global economic shifts.
On Thursday, August 28, 2025, Asian shares exhibited a mixed performance following modest gains on Wall Street, which saw the S&P 500 reach another all-time high. Despite these gains, concerns were mounting ahead of Nvidia's highly anticipated earnings report, which would reveal crucial insights into the technology sector's performance. U.S. futures rose while oil prices experienced a decline. Notably, in China, shares of Cambricon Technologies, a computer chip maker, surged 15.7%, becoming the highest priced stock on Shanghai's exchange, outperforming established players like Kweichou Moutai. The Shanghai Composite index gained 1.1%, while significant declines were noted in key sectors. For instance, companies like JD.com faced demand difficulties due to reduced spending among Chinese consumers, resulting in an overall mixed sentiment in the Chinese market. Japan’s Nikkei 225 experienced a 0.7% rise, navigating near record levels, which contrasted sharply with ongoing tensions regarding a trade agreement with the United States. The postponement of a scheduled trade envoy trip to Washington reflected the uncertainty enveloping discussions about tariffs on Japanese exports. In Australia, the S&P/ASX 200 index showed a slight increase of 0.2%, whereas Taiwan's TAIEX index fell by 1.2%. Other Southeast Asian markets, including stock indexes in Jakarta and Kuala Lumpur, demonstrated positive momentum, but the Manila index reflected a downturn of nearly 1%. Reactions were mixed among technology companies, which led gains in the U.S. markets, counterbalancing declines in communication services and other sectors. After the market closed on August 27, Nvidia's quarterly earnings report released indicated a performance that exceeded Wall Street's forecasts for both earnings and revenue. However, the company did note a slower-than-expected growth rate in AI chip sales, resulting in a 3.2% decline in the stock during after-hours trading, following a slight 0.1% drop in the regular session. This news prompted concerns about future growth potential in a sector that has seen rapid advancements and demand in recent years. As investors weigh the implications of this report in the context of broader market trends, the focus remains on how both Nvidia and the tech sector will navigate through anticipated shifts in consumer behavior and economic conditions.