There were earlier big gains for technology stocks in Asia after chip giant Nvidia posted record quarterly revenue of US$81.6 billion, blowing past analyst forecasts on the voracious demand for artificial intelligence hardware.
Sentiment was also boosted by Elon Musk’s filing for a public sale of SpaceX shares, which could be the largest initial public offering in history as the rocket and satellite company seeks to raise up to US$75 billion.
“This could be a blockbuster summer for IPOs with OpenAI also expected to list in the coming weeks,” said Kathleen Brooks, research director at XTB.
“How the market absorbs these new listings will be crucial for the future of the AI trade, as both companies are at the heart of the AI revolution,” she said.
South Korea’s benchmark Kospi index surged 8.4 per cent, helped by Samsung Electronics shares after unions paused an 18-day strike.
Japan’s Nikkei index ended with a gain of 3.1 per cent.
But the positive sentiment dissipated in European trading, where stocks ended mostly lower.
Despite Nvidia’s profit growth, the company’s shares failed to get a boost as they have in previous quarters. They initially edged higher but finished down 1.8 per cent.
Also lower was Walmart, which tumbled 7.3 per cent as traders fretted over the company’s cautious forecast and the company’s commentary on consumers.
“The high income customer is spending with confidence into many categories while the lower income consumer is more budget conscious and perhaps navigating financial distress,” said Walmart Chief Financial Officer John David Rainey.
