Nvidia stock volatile despite strong earnings; Micron and SanDisk rise after hours

While not yet reflected in the current guidance, it is expected to act as a positive factor in the future. Nvidia's production is understood to be proceeding normally and smoothly.

Expectations are particularly high for leading companies like Nvidia, and investors want to see if these companies can prove their value with actual results. A sentiment has formed where companies that saw significant gains in the first half are now being asked to show real performance.

Market curiosity is growing regarding Nvidia's $500 million financial platform agreement with OpenAI. Clarification is needed on how much capital is going into OpenAI and the extent of the guarantees. Furthermore, concerns are being raised across big tech companies about potential liabilities from future contract volumes not reflected in financial statements, necessitating an explanation for Nvidia's $200 million potential risk. The market also has questions about the reasons for the decrease in cash flow.

Personal Consumption Expenditures (PCE) inflation slightly exceeded expectations by 0.1%, but core PCE met estimates. Consequently, the prevailing market view is that the rise in PCE inflation is not enough to trigger a September rate hike. While inflation remains high, many believe it's not high enough for the Federal Reserve (Fed) to raise rates. According to CME FedWatch, the forecast for a September rate freeze remains at 64%, with a December rate hike being more likely.

Whether Powell expresses a hawkish or dovish stance, the market wants any form of message that will give hints about the direction of the economy. Preparations should also be made for the possibility of unexpected market movements if hawkish remarks are made.

This indicates a significant moderation in volatility, despite the continued presence of market uncertainties. While optimism prevails in the market, some concerns about valuation burden and policy changes still exist.

These moves raise concerns that intensified competition in AI technology could lead to reduced profitability for US frontier models. The global competition for AI technology leadership is becoming fiercer.

AI company Anthropic is focusing on securing computing power, even at the expense of free cash flow. This is seen as a proactive strategy to prepare for potential data center delays and maintain a competitive edge. They are actively acquiring necessary computing resources, demonstrating a commitment to strengthening technological competitiveness. Such investments highlight the importance of computing infrastructure as a core resource in the AI industry.

Salesforce has allayed market concerns by consistently reporting revenue growth. The announcement of an expanded partnership with AI company Anthropic was a crucial factor in the sharp rise in stock price. This partnership suggests that Salesforce is securing future growth engines through business expansion utilizing AI technology.

Meta has settled a lawsuit alleging that its social media platforms caused addiction in children. This settlement is expected to cost Meta a total of $16.7 billion, including $10 billion in legal fees. Additionally, Meta has agreed to limit Instagram usage for users under 18 to two hours per day and block usage at night. This reflects societal demands for digital well-being for children and adolescents.

Meta has set a conditional clause stating it would only bear 70% of the cost if it were to implement these measures alone, emphasizing shared responsibility with other platforms.

Foldable phone shipments are anticipated to exceed 10 million units this year, and Apple's entry into the foldable market is attracting significant attention.

Initially, these will be issued primarily in dollars, with plans to expand to euros and G7 currencies. This move is interpreted as traditional financial institutions expanding into the digital asset market.

Bitcoin is gaining momentum, emerging as a hedge against a weakening dollar. Some experts predict that the price of Bitcoin could reach $150,000 by mid-next year. Amidst this optimistic market sentiment, Goldman Sachs has also raised its price targets for Coinbase and Robinhood, indicating a positive outlook on the cryptocurrency market.