Latest news with #JoshGilbert
Euronews
6 days ago
- Business
- Euronews
Nvidia shares surge as earnings beat despite chip export restrictions
Nvidia reported first-quarter earnings for fiscal year 2026 that exceeded market expectations and provided an upbeat outlook for the current quarter. This comes despite an estimated $8 billion (€7.1 billion) loss due to US chip export restrictions affecting sales to China. Nvidia's share price jumped nearly 5% in after-hours trading, placing it just 8% below its all-time high in January. Year-to-date, the stock is set to return to a positive return amid the price surge. Nvidia is now the world's biggest company, surpassing Microsoft and Apple in market capitalisation. 'Investors entered this quarter looking for signs that Nvidia could alleviate short-term concerns. What they received was a clear message that demand remains robust,' said Josh Gilbert, a market analyst at eToro Australia. Sales revenue from Nvidia's core business, data centres, increased by 73% year-on-year to $39.1 billion (€34.7 billion), reaching a new record. However, this represented a deceleration from 93% growth in the previous quarter. Despite the slower pace, the result aligned with market expectations, as some analysts had anticipated weaker figures due to regulatory headwinds. Overall revenue rose 69% to $44.1 billion (€39.2 billion), while earnings per share came in at $0.96 (€0.85), both ahead of expectations. CEO Jensen Huang attributed the sustained growth to strong global demand for artificial intelligence (AI), particularly from major cloud service providers. Nvidia's most advanced AI chip, Blackwell, 'is now in full-scale production across system makers and cloud service providers,' said Huang. 'Global demand for Nvidia's AI infrastructure is incredibly strong. AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate. Countries around the world are recognising AI as essential infrastructure—just like electricity and the internet—and Nvidia stands at the centre of this profound transformation,' he added. The company expects revenue of $45 billion (€40 billion), plus or minus 2%, for the current quarter. 'This outlook reflects a loss in H20 revenue of approximately $8.0 billion due to the recent export control limitations,' it stated. The US government required Nvidia to obtain export licences for its H20 GPUs destined for China during the first quarter. Although the H20 chips had previously been approved, the new rules led to $4.5 billion (€4 billion) in write-downs due to excess inventory. Without this, the company would have generated an additional $2.5 billion (€2.2 billion) in sales. As a result, Nvidia's gross margin for the first quarter stood at 61%. It would have been 71.3% had the charges not occurred. 'The $50 billion China market is effectively closed to the US industry,' Huang said. 'As a result, we are taking a multibillion-dollar write-off on inventory that cannot be sold or repurposed.' Nvidia expects a non-GAAP gross margin of 72.0%, plus or minus 50 basis points, for the current quarter. For context, the margin was 73.5% in the fourth quarter of 2024 and 79% during the same quarter of the previous fiscal year. In an interview with Bloomberg TV, Huang noted that Nvidia is exploring alternatives to the H20 chip. However, the company must obtain approval from the US government for any such measures. Nvidia is among the tech giants supporting President Donald Trump's ambitious AI initiatives in the United States, announced in January. The company also unveiled a partnership with Saudi Arabia's HUMAIN to build AI factories in the kingdom during a recent visit to the region that coincided with Trump's trip. These developments were highlighted in the earnings report in the section for data centre. 'While sales in China are clouded by export restrictions, the Middle East looks set to become the new launchpad for Nvidia's next phase of growth,' Gilbert added.
Khaleej Times
26-05-2025
- Business
- Khaleej Times
UAE markets show resilience amid global trade optimism
The UAE's financial markets displayed cautious optimism this week, with the Dubai Financial Market (DFM) General Index climbing 0.37 per cent and the FTSE ADX General Index edging up 0.07 per cent. The modest gains reflect a broader global market pause, driven by US President Donald Trump's decision to extend the deadline for proposed 50 per cent tariffs on EU goods until July 9, 2025. This move has fuelled hopes that trade tensions, which have loomed over global markets, may be easing, providing a temporary boost to investor sentiment in the UAE and beyond. In Dubai, the stock index reached a 17-year high last week, underpinned by robust first-quarter earnings and a thriving non-oil economy. Investors increasingly favour UAE stocks over the larger Saudi market, drawn by the country's economic diversification and resilience. Abu Dhabi's market, while quieter, saw steady trading, supported by rising oil prices and limited corporate developments. Aldar Properties, a key player in Abu Dhabi, reported strong revenue from a recent project, though its shares dipped slightly. Similarly, GFH Financial Group maintained a positive outlook from FAB Securities, buoyed by solid Q1 results, despite minor share price declines. The UAE's markets are navigating a complex global landscape. Trading volumes remained subdued due to holidays in the US and the UK, but the extension of the EU tariff deadline has provided a reprieve. Josh Gilbert, a market analyst at eToro, noted that investor sentiment has strengthened over the past month, with markets looking past the 'trade war noise'. He emphasised that the provisional trade truces with the EU and China signal progress, though the lack of permanent resolutions keeps the risk of escalation alive. 'The willingness of the US administration to negotiate is encouraging, but without structural changes to tariff policy, uncertainty persists,' Gilbert said. Regionally, the UAE boosted its financial ties with Azerbaijan through a new agreement aimed at enhancing regulatory exchanges. This deal underscores the UAE's strategic push to deepen economic collaboration, potentially influencing sectors like banking and investment in the coming months. The accord aligns with the UAE's broader vision to position itself as a global financial hub, leveraging its stable economic environment and strategic geographic position. Globally, markets reflected similar optimism. Japan's Nikkei 225 surged over 1.7 per cent, driven by hopes of a US-Japan trade deal, while EuroStoxx futures rose 1.6 per cent, and S&P 500 futures gained about 1.0 per cent, according to Ipek Ozkardeskaya, senior analyst at Swissquote Bank. She highlighted the significance of the postponed EU tariff deadline, which gives European officials until July 9 to negotiate. However, Ozkardeskaya cautioned that upcoming economic data, including May flash inflation figures from major European economies and the US Personal Consumption Expenditures (PCE) report, will be critical in shaping market trajectories. A stronger euro may have mitigated the impact of rising oil prices, she noted, but inflationary pressures remain a concern. Despite the positive sentiment, risks persist. Last week's unexpected tariff threat on Apple underscored the unpredictability of US trade policy under Trump, a dynamic that continues to challenge markets. Gilbert pointed out that while trade progress supports risk assets, investor focus remains on dominant tech stocks, with dip-buying evident during pullbacks. Nvidia's upcoming earnings report is expected to be a key market catalyst, potentially influencing global and UAE investor sentiment. According to market analysts, the UAE's markets are well-positioned to capitalise on their non-oil growth and regional financial partnerships. However, their trajectory will depend on global trade outcomes and economic indicators. As negotiations continue and key data releases loom, UAE investors remain cautiously optimistic, balancing local strengths with global uncertainties, they said.
Trade Arabia
07-05-2025
- Business
- Trade Arabia
UAE investors see real estate and construction ‘most promising'
Real estate and construction stocks continue to capture investor attention across the UAE with strong fundamentals, says eToro's recent Retail Investor Beat survey. According to the survey, 52.5% of investors see real estate and construction as the most promising sector over the next 12 months, ahead of even the fast-growing technology sector, which came in at 42%, says Josh Gilbert, Market Analyst at eToro. Dubai and Abu Dhabi's property markets remain two of the hottest globally, fuelled by population growth, foreign investment, and demand for premium developments. This strength has translated into solid returns for listed developers in the last year, such as Emaar Properties (+72%) and Aldar (+40%). Aldar's Q1 results, reported in late April, showed why this real estate is attracting investor attention with a 33% rise in net profit and a 42% jump in development sales. What's helping businesses like Aldar and Emaar is the UAE's stable economic environment, which continues to support their growth. Developers like Emaar and Aldar are also integrating sustainable practices, with projects like Dubai Hills Estate targeting green certifications, enhancing long-term investor appeal, Gilbert says. 'Although it's been a great year, the period ahead doesn't come without risks. Developers across the UAE are growing increasingly concerned about the rising price of key construction components such as steel, aluminium, etc., driven by President Donald Trump's tariff rollout. Those cost pressures could cloud projects from a timing perspective. 'Uncertainty from tariffs could drive investors to focus on stability and yield, something property in the UAE can offer. Therefore, the positive is that real estate in the region will be seen as something of a safe haven, which would mean continued demand for developers. Emaar, for example, doubled its dividend to AED 8.8 billion, fuelled by record property sales and strong market demand. That dividend looks set to keep increasing over the next few years as its cash flow continues to grow with continued market expansion and growth,' Gilbert says. Another advantage is the region's diversified trade relationships, which help cushion against sharp import cost spikes. However, ongoing global supply chain volatility could still push up material costs and pressure short-term profitability.
Gulf News
05-05-2025
- Business
- Gulf News
Bitcoin vs Gold: Which asset will shine brighter in 2025 for global investors?
Dubai: In the ever-evolving world of investing, two titans continue to dominate the 'store of value' conversation: gold and Bitcoin. As markets face continued volatility and global economic uncertainty, investors are once again asking—where should I park my money in 2025? For centuries, gold has been the ultimate safe haven. Its reputation is built on reliability during downturns and its ability to preserve wealth when traditional assets like stocks falter. 'When markets turn gloomy, gold often shines,' says Josh Gilbert, a market analyst at eToro. 'It helps cushion portfolio losses, which is why gold remains a staple in diversified portfolios.' But younger investors with a higher risk appetite are increasingly turning to Bitcoin. In just over a decade, it's gone from a niche digital asset to one of the top performers of the 21st century. With a fixed supply of 21 million coins and growing institutional adoption, Bitcoin is now viewed by many as a modern counterpart to gold. Regulatory clarity helps As regulatory clarity improves and crypto products mature, more UAE-based investors are holding both assets—gold for stability, Bitcoin for potential upside. Gilbert notes, 'Bitcoin is a promising but still maturing asset. A small allocation has proven it can boost portfolio returns—but with high volatility.' That volatility is no secret. In 2022, when inflation spiked globally, gold held its ground while Bitcoin plunged 65%. Yet, over longer timeframes, Bitcoin's gains have far outpaced gold. This trade-off—potential for high reward versus lower risk—is central to the debate. Gilbert adds, 'If seeing gold hold value helps you stay invested elsewhere, it's doing its job. It provides the discipline and calm many investors need during downturns.' By contrast, Bitcoin is seen more as a speculative diversifier. 'It might play a role in a portfolio,' he says, 'but it's not a proven safe haven in the way gold is.' Don't pick one over the other So, which will win in 2025? The answer may be: both. Bitcoin's digital edge, built-in scarcity, and increasing legitimacy point to continued growth. Gold, on the other hand, remains a time-tested anchor during turbulent times. 'As institutional adoption grows, Bitcoin is shedding its purely speculative image and moving toward mainstream acceptance,' Gilbert explains. 'It deserves a place in portfolios—but for now, gold remains the more reliable hedge.'
Observer
05-05-2025
- Business
- Observer
Gold's low volatility keeps it ahead of Bitcoin
When markets turn gloomy, gold often shines. Investors call gold a 'haven' because it tends to hold its value, or even increase, during uncertain or volatile periods. Gold has historically had a low or negative correlation with traditional assets like stocks and bonds. That means when stocks are falling, gold often outperforms, helping cushion portfolio losses. This diversification benefit is one of the key reasons why gold is often suggested as part of a balanced portfolio. In recent years, a new contender has entered the scene: Bitcoin. Often dubbed 'digital gold,' Bitcoin has attracted a following of investors who see it as the modern equivalent of gold—a store of value and hedge against fiat currency debasement. Both gold and Bitcoin share some similarities: neither is tied to a company's earnings or bond interest payments, and both have limited supplies (gold by nature, Bitcoin by code), according to Josh Gilbert, market analyst at eToro. The first major difference between them is volatility. Gold has earned its safe-haven reputation over centuries, whereas Bitcoin is still arguably in its infancy and has behaved more like a high-risk asset throughout its history. If your primary aim is portfolio insurance and stability during crises, gold's long history and lower volatility make it the more reliable choice. Bitcoin is more of a speculative diversification; it might play a role in a portfolio, but it's not a proven haven in the way gold is. As institutional adoption grows and regulatory clarity improves, bitcoin and crypto are gradually alleviating their purely speculative image and growing toward mainstream acceptance as assets that deserve a place in investment portfolios. This built-in scarcity underpins the idea that Bitcoin should hold its value when inflation erodes the purchasing power of dollars. Over the past decade, Bitcoin's price appreciation has well outpaced inflation. However, in 2022, when inflation in the U.S. and Europe hit decade highs, bitcoin's price fell 65% for the year, even as gold stayed roughly flat. At the same time, bitcoin has also outperformed gold, but not without its ups and downs, which aren't for the faint-hearted. Some younger investors with a high-risk tolerance and long-time horizon might favour Bitcoin or high-growth stocks as their 'alternative' asset and skip gold entirely. In my experience, the question of gold in a portfolio often comes down to this: Does it help you stay disciplined and calm? If you know you have a bit of gold helps you not panic-sell your stocks in a downturn because you see something in your portfolio holding value, then gold is doing its job. For now, investors see it as a long-term store of value, not a haven. Bitcoin is a promising but still a maturing asset, and a small allocation has proven that it can increase gains in a portfolio, but with a high level of portfolio, but with a high level of volatility. However, it still falls short of the consistency that traditional hedges like gold offer.
