Finimize - 👁️ Nvidia opened up

What’s going on here?

Nvidia – the world’s most valuable company – raked in record sales and profit in the third quarter.

What does this mean?

The chipmaker at the center of the AI frenzy just crushed it with $35.1 billion in sales – up a jaw-droppingly huge 94% from last year and easily outpacing Wall Street’s $33.2 billion prediction. And if that wasn’t enough, profit came in at a hefty $19.3 billion – comfortably ahead of the $17.5 billion analysts were banking on. But wait, as they say, there’s more: Nvidia’s outlook also didn’t disappoint, with its fourth-quarter sales target a tad higher than consensus. Still, investors are laser-focused on Nvidia’s ability to keep this party going and worried that supply chain hiccups and potential delays with its much-hyped Blackwell chip could bring the mood down. And let’s be honest, when your stock has already tripled this year, good outcomes just won’t cut it. Nvidia’s in the business of delivering epic results – anything less isn’t going to sit well with this crowd.

Why should I care?

The bigger picture: Lonely at the top.

Nvidia’s been churning out chips at top speed but is still struggling to meet demand. And investors have been circling like hawks, trying to see whether the company will deliver its much-hyped new processor for the January quarter. On paper, Blackwell sounds red hot, running 30 times faster than its older siblings. But there could be a snag: the chips have been overheating when connected on server racks – which could deal a major blow to tech giants like Google, Microsoft, and Meta, who need this tech to launch their new data centers. They know that any kinks in the chain could divert their AI-powered plans. And those smoking servers are a searing reminder that even Nvidia’s lightning-fast chips are only as fast as their weakest link – unlike the tech titans’ share prices, which seem to have no brakes.

What’s going on here?

Britain’s consumer prices popped higher in October after a brief oasis.

What does this mean?

Two months ago, the yearly pace of inflation in the UK was down at 1.7% – comfortably below the Bank of England’s (BoE’s) 2% target. But that might’ve been a fluke: consumer prices rose by an annual 2.3% in October. And sure, some of that increase was because utility bills jumped considerably higher when a government-imposed cap expired. But even the core inflation rate – which strips out energy and food items – sped up, rising at 3.3%. And since bad news tends to come in threes: services inflation also climbed faster than expected. Together, those uptempo moves suggest the BoE might have to roll slower with its interest rate cuts – or risk a price rise supernova.

Why should I care?

For you personally: Putting away the scissors.

Investors had been banking on another rate trim from the BoE this year, but that’s pretty much off the table now. They’ve moved on to tempering expectations for rate cuts next year, betting on just two and laying 40% odds on a third. So Britain may see higher-for-longer interest rates. And that could stifle consumer spending, complicating the already tricky growth prospects in the world’s sixth-biggest economy.

The bigger picture: House-price-warmings.

Keep in mind, the BoE did lower its key interest rate twice in the past year – dropping it to 4.75% from 5.25%. And those newer, lower mortgage rates gave Britain’s house prices a mild boost. They rose at an annual pace of 2.9% in September – a bit swifter than August’s 2.7%. The cost of renting, meanwhile, climbed 8.7%. See, a shortage of new homes – relative to demand – has helped keep prices climbing. And that might not change anytime soon: the UK’s housing minister said the government’s goal of building 1.5 million homes in the next five years looks unattainable.