Nvidia doubles AI market forecast to $1 trillion by 2027

South African Market Summary

South African equities advanced, with the JSE All Share index rising 1.43% to 116,562.25 and the Top 40 gaining 1.50% to 108,891.15, reflecting improved market sentiment. Supporting the outlook, two-year ahead inflation expectations eased marginally to 3.6% from 3.7%, according to the Bureau for Economic Research. This moderation is constructive for monetary policy, as it aligns with the SARB’s preferred inflation gauge. However, geopolitical risks, including tensions linked to the Iran conflict, continue to cloud the broader inflation and interest rate trajectory.

European Market Summary

European equities recovered, with the STOXX 600 rising 0.45% to snap a three-day losing streak, supported by easing oil prices and gains in real estate and energy sectors. The FTSE 100 advanced 0.6%, as improved sentiment offset early session weakness ahead of the Bank of England’s policy decision. However, macro risks remain elevated, with UK consumer confidence falling to its lowest level since January 2025, reflecting concerns around the economic impact of escalating Middle East tensions and potential implications for growth and inflation.

US Market Summary

U.S. equities closed sharply higher, supported by gains in AI-related stocks, with Meta advancing 2.3% following reports of significant workforce reductions to enhance efficiency and fund AI investment. The rebound reflects renewed strength in technology shares, despite the S&P 500 remaining approximately 2% lower year-to-date. Oil prices eased, although energy dynamics remain a key macro focus ahead of central bank meetings. The Federal Reserve is expected to hold rates steady, with rate-cut expectations now pushed beyond October. Economic data was modestly supportive, with industrial production rising slightly above forecasts.

Asian Market Summary

Asia-Pacific markets advanced, supported by gains in technology and automotive stocks following Nvidia’s bullish AI revenue outlook and expanding partnerships with regional carmakers. Semiconductor leaders Samsung Electronics and SK Hynix rose strongly, reflecting renewed optimism around memory demand linked to AI infrastructure. Investor sentiment was further supported by signs of progress in EU-Australia trade negotiations, which may enhance regional trade flows. The positive momentum underscores Asia’s leverage to the global AI investment cycle, with semiconductor and export-oriented sectors remaining key beneficiaries of sustained demand.

Currency Market Summary

The South African rand strengthened as a softer U.S. dollar offset reduced expectations for near-term Federal Reserve rate cuts amid elevated energy prices. The pound rebounded modestly but remains near three-month lows, reflecting ongoing uncertainty around the Middle East conflict and its implications for global growth and inflation. The dollar retreated from recent highs ahead of a week of key central bank decisions, including the Bank of England, which is expected to keep rates unchanged. Currency markets remain sensitive to geopolitical risks and shifting monetary policy expectations.

Commodity Market Summary

Oil prices rebounded more than 2%, driven by escalating supply concerns as disruptions in the Strait of Hormuz threaten a key global energy chokepoint handling roughly 20% of oil and LNG trade. The ongoing U.S.-Israel conflict with Iran and limited allied support for securing shipping routes have heightened risks of supply shortages and inflationary pressure. Gold prices edged higher as investors balanced geopolitical risks with expectations of limited prolonged disruption. Markets remain focused on the potential macro impact, particularly ahead of key central bank policy decisions globally.

MTN Group Limited (MTN) +7.00%

MTN reported a robust FY2025 performance, driven by strong contributions from Nigeria and Ghana, with service revenue increasing 22.9% to R218.5 billion and EBITDA rising 64.0%. Data and fintech remained key growth drivers, with data revenue up 37.7% and fintech transaction value surpassing $500 billion. Headline EPS surged 1058% to 1,274 cents, supported by operational leverage and improved margins. The Group strengthened its balance sheet, reducing net debt-to-EBITDA to 0.3x. A final dividend of 500 cents (+45%) and an enhanced capital allocation framework underscore confidence in medium-term growth.

Sun International Limited (SUI) +10.55%

Sun International reported mixed FY2025 results, with group income rising 7.1% (excluding Table Bay Hotel) to R12.9 billion, supported by continued momentum in Sunbet and market share gains in land-based casinos. Headline earnings per share increased 38.7% to 692 cents, while adjusted HEPS rose 6.4%, reflecting operational resilience despite a 12.7% decline in EPS. The balance sheet remains robust, with net debt-to-EBITDA at 1.5x. Shareholder returns were enhanced through a 6.5% increase in the ordinary dividend and a 100-cent special dividend, signalling confidence in cash generation.

Channel VAS Investments Limited (OPA) +1.88%

Optasia delivered a strong FY2025 performance, exceeding IPO guidance, driven by robust user growth and expanding fintech activity. Total service users increased 43% to 432 million, while revenue surged 76% to $265.4 million. Adjusted EBITDA rose 52% to $114.5 million, with margins remaining resilient at 43.2%. Normalised net income increased 57%, supporting a 48% rise in normalised EPS. Free cash flow grew 41% to $44.9 million, reflecting solid conversion. Improved take rates and low default levels underscore the scalability and quality of the Group’s AI-driven lending platform.

Nvidia Corporation (NVDA) +1.65%

Nvidia highlighted a significant expansion in its artificial intelligence opportunity, forecasting a potential $1 trillion revenue addressable market by 2027, up from $500 billion previously. The Group is accelerating its strategy in AI inference computing, where competitive intensity is rising, through new processor launches and technology integration. While Nvidia continues to dominate AI training, management emphasised growing demand for real-time AI applications. CEO Jensen Huang’s commentary at GTC reinforced confidence in sustained demand, helping to ease investor concerns around growth durability and capital allocation within the evolving AI ecosystem.

Dollar Tree Inc. (DLTR) +6.42%

Dollar Tree provided cautious FY2026 guidance despite potential near-term tariff tailwinds, forecasting revenue of $20.5–$20.7 billion and EPS of $6.50–$6.90, broadly in line with expectations. Management highlighted policy uncertainty and delayed tariff benefits due to inventory timing, while consumer spending remains constrained. Margin pressures from wage inflation, shrinkage and heightened competition persist, particularly against larger peers. Strategic investments in store formats and multi-price offerings aim to support growth. Fourth-quarter performance was stable, with revenue meeting expectations and earnings modestly outperforming, reflecting resilient operational execution in a challenging retail backdrop.

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