Nvidia Earnings Surpass Expectations Again, AI faith ignites the global stock market! [Learn Premium Weekly Review]

Nvidia's earnings dazzled the market. AI faith ignites the global stock market!

After the market closed on Wednesday, February 21, all eyes were on AI giant Nvidia $NVIDIA(NVDA.US)$ as it released its Q4 earnings report. The performance crushed the peers, and the stock price surged 16% the next day. Its single-day market value increased by more than $200 billion, creating a record for the highest single-day market value jump in U.S. stock history. Nvidia's financial report highlights included:

1. Revenues of $22.1 billion, greatly surpassing analysts' expectations of $20.41 billion, with quarterly income even exceeding the full-year income of 2021.

3. Guidance for the next quarter was optimistic, forecasting revenues of $24 billion and a gross margin of 76.3%, also beating market expectations.

4. For the upcoming year, Huang committed to introducing innovative new products that will help drive the development of the AI industry, while demand for the company's next-generation products is expected to far exceed supply.


Japan stocks continue to hit new highs, worth investing in?

On Thursday, February 22, the $Nikkei 225(.N225.JP)$ , which has been hitting new highs since 2024, hit another all-time high of 39,098.68!

Since the bubble economy of 1980, the Japanese economy has been continuously sluggish, and companies have maintained the status quo for many years, lacking innovation and the economy has hardly grown.

With some economic policies and reform plans in recent years, such as loose monetary policy, large-scale fiscal stimulus, corporate governance reform, etc., the operating mode of Japanese companies is changing, and these changes are injecting vitality into the economy. At the same time, the huge interest rate differential between the U.S. dollar and the yen has continued to weaken the yen, which has improved the export competitiveness of Japanese companies and, to some extent, their profitability.

Due to the improvement in corporate profits and the tightening of U.S. monetary policy, a large amount of foreign capital flowed into the Japanese stock market, pushing up the stock market. In 2023, foreign capital flowing into the Japanese stock market reached as high as $43.39 billion, the largest inflow since 2014.

Opportunity Mining: In the 2023 fourth-quarter earnings report season, $Microsoft(MSFT.US)$ and $NVIDIA(NVDA.US)$ achieved significant growth thanks to AI, resulting in increased market value and profits; Microsoft maintained its position as the world's most valuable company; Although $Apple(AAPL.US)$ returned to growth, it still faced challenges of innovation; $Amazon(AMZN.US)$ efficiency enhancement efforts boosted profits; while $Alphabet-C(GOOG.US)$ advertising business suffered due to the impact of short videos; $Meta Platforms(META.US)$ successfully reformed and increased shareholder returns; $Tesla(TSLA.US)$ price sharp drop with experiencing a period of product stagnation and slow growth.

Currently, the "Magnificent 7" responses to challenges and opportunities in AI are beginning to diverge.