Nvidia Surpasses Q3 Expectations with $35.08B Revenue, Projects $37.5B for Q4

LOCAL MARKET COMMENTARY

On the Johannesburg Stock Exchange, the Top 40 index climbed 0.84%, closing at 76,940 points, while the All Share index advanced 0.89% to end the day at 85,274 points. In economic developments, October inflation eased significantly to 2.8%, down from 3.8% in September—a rare event over the past two decades. With inflation sitting well below the South African Reserve Bank's 4.5% target midpoint, economists anticipate a 25-basis-point reduction in the repo rate during Thursday's policy announcement. Meanwhile, South African business sentiment reached its highest level since Q1 2022, buoyed by stable electricity supply and improved political conditions, fostering a more favourable business environment.

EUROPEAN MARKET COMMENTARY

European markets closed mixed on Wednesday as investors kept an eye on escalating tensions in the Ukraine-Russia conflict. The FTSE 100 fell following a surprising jump in U.K. inflation to 2.3% in October. In the eurozone, wage growth accelerated in the third quarter, highlighting persistent labour market tightness and supporting a cautious approach to cutting interest rates despite some signs of economic cooling.

US MARKET COMMENTARY

The Nasdaq closed lower on Wednesday, pausing after a strong rally, as concerns over Russia-Ukraine tensions and disappointing results from Target weighed on sentiment. Meanwhile, the Dow closed higher and the S&P 500 ended flat. Nvidia, the AI chipmaker, saw its stock decline during the session and further after hours, as its fourth-quarter revenue forecast, though slightly above estimates, fell short of some investors' high expectations.

ASIA MARKET COMMENTARY

Asia-Pacific markets mostly declined this morning, with Chinese stocks opening slightly lower and Hong Kong's Hang Seng dipping as markets remained rangebound, despite some global funds aligning with domestic money in tariff-resistant sectors. Investors are also closely watching Indian conglomerate Adani Group after U.S. prosecutors indicted its chairman, Gautam Adani, in New York on allegations of involvement in a multibillion-dollar bribery and fraud scheme.

CURRENCY MARKET COMMENTARY

South Africa's rand weakened on Wednesday, pressured by a strong dollar, despite domestic inflation falling to its lowest level in over four years. Investors remained cautious ahead of the South African Reserve Bank's policy announcement due today. Meanwhile, the U.S. dollar held firm this morning as traders awaited details on President-elect Donald Trump's policy plans and assessed the likelihood of less aggressive interest rate cuts by the Federal Reserve.

COMMODITY MARKET COMMENTARY

Gold prices rose for the fourth consecutive session this morning as escalating Russia-Ukraine tensions boosted safe-haven demand. Meanwhile, oil prices edged higher, driven by supply concerns stemming from the ongoing conflict, as investors also awaited comments from Federal Reserve policymakers on future interest rate moves.

Reinet Investments SCA (RNI) -0.38%

Reinet’s net asset value (NAV) stood at EUR 6.6 billion as of 30 September 2024, representing an annual growth rate of 9.0% since March 2009, including dividends. The NAV rose by EUR 407 million (6.6%) since March 2024, with NAV per share increasing to EUR 36.25 from EUR 34.02 in March and EUR 30.89 a year earlier. During this period, EUR 96 million in commitments were funded, though no significant new commitments were made. Dividend income included EUR 68 million from British American Tobacco and EUR 235 million from Pension Insurance Corporation Group. Reinet also distributed a dividend of EUR 0.35 per share, totaling EUR 64 million.

African Media Entertainment Limited (AME) -7.04%

Shareholders are advised that for the six months ended 30 September 2024, headline earnings per share and earnings per share are expected to range between 240 and 260 cents, reflecting an increase of 16% to 25% compared to 207.3 and 207.5 cents, respectively, for the same period in 2023. The company is finalizing its results, which are expected to be published on SENS around 29 November 2024.

Ninety One Limited (NY1) +2.64%

For the period ending 30 September 2024, assets under management grew by 3% to £127.4 billion, while average assets under management increased 1% to £126.7 billion. However, net outflows rose to £5.3 billion. Profit before tax declined 10% to £93.3 million, with adjusted operating profit falling 9% to £88.6 million, and the profit margin narrowing to 30.5% from 32.6%. Basic and headline earnings per share dropped 12% to 7.8p, adjusted earnings per share fell 11% to 7.3p, and the interim dividend per share was reduced by 8% to 5.4p.

Momentum Group Limited (MTM) +2.39%

In 1QF2025, recurring premiums increased by 8% to R1,073 million, while single premiums rose 3% to R15,681 million. New business, measured by PVNBP, grew 5% to R20,645 million. Total direct expenses rose 8% to R3,235 million. Momentum Wealth’s assets under administration expanded by 17% to R280 billion, and health members under administration grew 2% to 1.279 million.

NVIDIA Corporation (NVDA) -0.76%

Nvidia exceeded expectations for its third-quarter earnings, reporting adjusted earnings per share of 81 cents (vs. 75 cents expected) and revenue of $35.08 billion (vs. $33.16 billion expected). The company projects fourth-quarter revenue of $37.5 billion, plus or minus 2%, slightly above analyst forecasts, implying year-over-year growth of 70%, though slower than last year’s 265% growth. Nvidia's quarterly revenue surged 94% from the previous year, though growth has slowed compared to prior quarters. Net income more than doubled to $19.3 billion, driven by robust demand for AI chips, with a gross margin of 73.5%, exceeding estimates due to increased sales of higher-margin data centre chips.

Target Corporation (TGT) -21.41%

Target missed Wall Street's expectations for third-quarter earnings and revenue, with earnings per share at $1.85 (vs. $2.30 expected) and revenue at $25.67 billion (vs. $25.90 billion expected). Compa

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