Podcast Exploring Themes Driving Global Markets, Nomura - The Week Ahead

Nomura – The Week Ahead

Podcast Exploring Themes Driving Global Markets

Nomura - The Week Ahead

We explore the main themes that will drive global markets over the coming week, discussing the key market moving events and risks to keep on your radar.

Cross Asset Strategy

<ul><li>Global equities finished the week on a high note, with Nvidia's strong earnings boosting markets, especially in Japan.</li><li>European yields rose due to strong PMIs, while the dollar weakened and the euro and pound strengthened.</li><li>In the US, core PCE inflation is expected to be strong, with potential temporary factors contributing to the high readings.</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

Global equities finished the week on a high note, with Nvidia's strong earnings boosting markets, especially in Japan.European yields rose due to strong PMIs, while the dollar weakened and the euro and pound strengthened.In the US, core PCE inflation is expected to be strong, with potential temporary factors contributing to the high readings.This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

The Week Ahead – US Core PCE, Euro Area Flash Inflation and Japan CPI

Product Marketing Manager, Criat

Raghav Chandra Mathur

Product Marketing Manager

Next-Generation Credit Analytics Provider

Criat

Criat specializes in new-generation data-driven credit analytics. Leveraging our industry-leading DeepCredit analytical technologies, we produce daily-updated forward-looking credit assessment and valuation to help financial institutions stay ahead of risks. Coupled with use-case-driven applications, we extract insights, answer questions and enable smarter credit decisions.

Thematic (Sector/Industry)

<ul><li>Chipmakers and chip-making tool providers are set to continue benefitting from the surge in demand that has rallied the equity prices for the companies that are at the forefront of AI-related semiconductor research, development, and production.</li><li>One of the key drivers in the resurgence of new chip demand is the acceleration of upgrade demand for PCs and smartphones to meet the novel generative AI needs, while companies build up storage and data center capabilities to transition to utilizing generative AI capabilities in their operations.</li><li>However, so far, the benefit of the market rally has been disproportionately felt across the industry.</li></ul>

Chipmakers and chip-making tool providers are set to continue benefitting from the surge in demand that has rallied the equity prices for the companies that are at the forefront of AI-related semiconductor research, development, and production.One of the key drivers in the resurgence of new chip demand is the acceleration of upgrade demand for PCs and smartphones to meet the novel generative AI needs, while companies build up storage and data center capabilities to transition to utilizing generative AI capabilities in their operations.However, so far, the benefit of the market rally has been disproportionately felt across the industry.

AI-Driven Semiconductor Rally Leaves Small-Cap Chipmakers Behind

Taiwan Tech Focused Senior Analyst

Patrick Liao

Equity Bottom-Up

TSMC (Taiwan Semiconductor Manufacturing) / Equity Bottom-Up

TSMC (Taiwan Semiconductor Manufacturing)

<ul>
<li>Usually, February is typically the month with the fewest working days of the year, and therefore, revenue is likely to be at its lowest as well.</li>
<li>We consider that the Taiwanese government may desire TSMC to build fabs in countries aligned with those who signed the "Wassenaar Arrangement." </li>
<li>The price hike of <a href="https://www.smartkarma.com/entities/nvidia-corp" target="_blank" data-smartkarma-citation="entities:5891:1" rel="noopener">NVIDIA Corp (NVDA US)</a> by US$785.38 on February 22 in the US market could signal an important development in the AI sector.</li>
</ul>


Usually, February is typically the month with the fewest working days of the year, and therefore, revenue is likely to be at its lowest as well.
We consider that the Taiwanese government may desire TSMC to build fabs in countries aligned with those who signed the "Wassenaar Arrangement." 
The price hike of NVIDIA Corp (NVDA US) by US$785.38 on February 22 in the US market could signal an important development in the AI sector.


TSMC (2330.TT; TSM.US): The Implications of Feb Sales, TSMC 2nd Japanese Fab and NVDA Stock Price.

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>Nvidia’s share price rose in after-hours trading post earnings.</li><li>Q4 revenue was US$22.1bn, up 265% YoY and 22% QoQ, exceeding company’s guidance of US$20bn by 10% and beating Bloomberg consensus by 8%.</li><li>GPM was 76%, steadily increasing from 74% during the previous quarter and 63.3% from FY4Q23. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Nvidia’s share price rose in after-hours trading post earnings.Q4 revenue was US$22.1bn, up 265% YoY and 22% QoQ, exceeding company’s guidance of US$20bn by 10% and beating Bloomberg consensus by 8%.GPM was 76%, steadily increasing from 74% during the previous quarter and 63.3% from FY4Q23. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Global Multi-Asset Investment Strategist, True Insights

Jeroen Blokland

Global Multi-Asset Investment Strategist

Build Well-Diversified Multi-Asset Portfolios

True Insights

Our research helps investors build well-diversified multi-asset portfolios and profit from market developments. In addition, our unique and proven Macro – Sentiment – Valuation (MSV) investment framework ensures a consistent flow of new investment opportunities. Together with our market views, these opportunities will be reflected in our live ETF-based Global Multi-Asset Portfolios.

<ul>
<li>Nvidia's blowout earnings number is another example of how grasping exponential growth trends is extremely difficult for human investors.</li>
<li>Unlike what is often assumed, Nvidia, for now, qualifies as a quality stock, revealing relentless competitive power, low debt, and reasonable valuation.</li>
<li>Nvidia's weight with Quality ETFs is bigger than its weight in the MSCI World Index, adding to quality stock outperformance.</li>
</ul>


Nvidia's blowout earnings number is another example of how grasping exponential growth trends is extremely difficult for human investors.
Unlike what is often assumed, Nvidia, for now, qualifies as a quality stock, revealing relentless competitive power, low debt, and reasonable valuation.
Nvidia's weight with Quality ETFs is bigger than its weight in the MSCI World Index, adding to quality stock outperformance.


Nvidia: A Quality Stock that Shows Human Investors Are Unable to Discount Exponential Growth

United States

NVIDIA Corporation designs, develops, and markets three dimensional (3D) graphics processors and related software.  The Company's products provide interactive 3D graphics to the mainstream personal computer market.

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NVIDIA Corp (NVDA US)

The Week Ahead – US Core PCE, Euro Area Flash Inflation and Japan CPI

Global equities finished strong due to Nvidia earnings, Nikkei hit all time highs supported by strong PMIs, US yields remained flat while European...

Nomura – The Week Ahead

AI-Driven Semiconductor Rally Leaves Small-Cap Chipmakers Behind

Chipmakers and chip-making tool providers are set to continue benefitting from the surge in demand that has rallied the equity prices for the...

Criat

TSMC (2330.TT; TSM.US): The Implications of Feb Sales, TSMC 2nd Japanese Fab and NVDA Stock Price.

February's few working days may lead to low revenue; Taiwanese government may want TSMC to build fabs in Wassenaar Arrangement countries; NVIDIA's...

Patrick Liao

Semi - Nvidia Continues to Impress

Q4 revenue was US$22.1bn, up 265% YoY and 22% QoQ, exceeding company’s guidance of US$20bn by 10% and beating Bloomberg consensus by 8%.

CMB International

Nvidia: A Quality Stock that Shows Human Investors Are Unable to Discount Exponential Growth

It's a myth that media-hyped stocks like Nvidia are unable to add to a quality stock-selection strategy. The latest blowout earnings numbers...

Jeroen Blokland

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

The Week Ahead – US Core PCE, Euro Area Flash Inflation and Japan CPI

Global equities finished strong due to Nvidia earnings, Nikkei hit all time highs supported by strong PMIs, US yields remained flat while European...

Nomura – The Week Ahead

AI-Driven Semiconductor Rally Leaves Small-Cap Chipmakers Behind

Chipmakers and chip-making tool providers are set to continue benefitting from the surge in demand that has rallied the equity prices for the...

Criat

TSMC (2330.TT; TSM.US): The Implications of Feb Sales, TSMC 2nd Japanese Fab and NVDA Stock Price.

​February's few working days may lead to low revenue; Taiwanese government may want TSMC to build fabs in Wassenaar Arrangement countries; NVIDIA's...

Patrick Liao

Semi - Nvidia Continues to Impress

Q4 revenue was US$22.1bn, up 265% YoY and 22% QoQ, exceeding company’s guidance of US$20bn by 10% and beating Bloomberg consensus by 8%.

CMB International

Nvidia: A Quality Stock that Shows Human Investors Are Unable to Discount Exponential Growth

It's a myth that media-hyped stocks like Nvidia are unable to add to a quality stock-selection strategy. The latest blowout earnings numbers...

Jeroen Blokland

February's few working days may lead to low revenue; Taiwanese government may want TSMC to build fabs in Wassenaar Arrangement countries; NVIDIA's...