Nvidia tops estimates with record Q2 revenue of $46.7bn as AI demand drives data centre sales

South Africa

The Top 40 index lost 0.41% yesterday as it reached 94,362.4 points, while the All Share index shed 0.42% to close at 102,006.7 points. Capitec Bank Holdings has overtaken FirstRand as Africa’s most valuable bank, extending a run of record profits under new leadership. Spur Corporation’s shares slipped after an arbitrator ruled partially against the group in its dispute with GPS Food Group. Curro surged 52% after Jannie Mouton Stigting launched a R7.2bn buyout offer that would see the private schools operator delist. Meanwhile, Nersa’s settlement with Eskom means consumers face R54bn in higher tariffs, while South Africa continues to struggle with HNWI outflows.

Europe

The Stoxx 600 edged 0.1% higher, retracing part of Tuesday’s sharp fall, though political risks in France weighed on sentiment. Concerns mount over Prime Minister François Bayrou’s ability to survive a September confidence vote tied to spending cuts, with the prospect of fresh elections if he fails. Corporate results have been resilient, with 52% of reporting firms beating expectations, though banks lagged after a Goldman downgrade. Luxury names provided upside, lifting the personal and household goods sector to a one-month high.

United States

US equities advanced, with the S&P 500 closing at a record and the Nasdaq 100 touching a one-week high, driven by software gains as MongoDB jumped over 37% on strong guidance. Fed official John Williams struck a dovish tone, suggesting rate cuts remain possible. Mortgage applications slipped, while Q2 GDP is set for a modest upward revision. Earnings momentum remains robust, with 82% of S&P 500 firms beating forecasts, driving the strongest profit growth in four years at +9.1% year-on-year.

Asia

Asia-Pacific markets traded mixed as the Bank of Korea held rates at 2.5%, noting modest growth but highlighting risks from housing prices and debt. Inflation forecasts were nudged up to 2% for 2025, with GDP seen at 0.9%. In Australia, Lynas Rare Earths announced a A$750m discounted equity raise to expand processing and exploration, sending shares into a trading halt. Investors are also monitoring India after secondary US tariffs on exports kicked in, raising total duties to 50% from Wednesday.

Currencies

The rand weakened as the dollar staged a tentative rebound, though broader sentiment points to Fed easing expectations. The greenback pared earlier gains against the euro and yen, with traders awaiting key US data including GDP, PCE inflation, and consumer sentiment. Dollar pressure has been compounded by political interference risks, as President Trump escalates efforts to influence Fed policy, including moves to replace Governor Lisa Cook. The market remains sensitive to both macro data releases and ongoing Fed independence concerns.

Commodities

Oil prices retreated as investors weighed strong pre-holiday demand against a likely slowdown after the US summer driving season. US crude inventories fell 2.4m barrels, more than expected, underscoring near-term consumption strength. Markets are also monitoring India’s response to US pressure on Russian oil imports, with new 50% tariffs raising questions about trade flows and supply dynamics into the final quarter of 2025.

Bid Corporation Limited (BID) -3.67%

Bidcorp reported a resilient FY25 performance despite a challenging trading backdrop. Revenue rose 4.3% to R235.6bn (+6.8% cc), while trading profit advanced 6.4% to R12.9bn (+9.3% cc). Cash generation remained strong at 122% of trading profit, with 108% of EBITDA converted to cash. Headline EPS increased 6.5% to 2,562.7c (+9.6% cc). The board declared a final dividend of 600c, taking the full-year payout to 1,160c, up 6.4%, consistent with policy. Bidcorp continues to demonstrate disciplined capital allocation and robust cash conversion.

OUTsurance Group Limited (OUT) +2.47%

OUTsurance delivered strong FY25 results, supported by robust premium growth, favourable claims trends in SA, lower reinsurance costs, and higher investment income. Normalised earnings are expected to rise 27–32% to c.R3.8bn, with OUTsurance SA, Youi and Life all posting double-digit growth, partly offset by start-up losses in Ireland. At group level, OGL guides for NEPS of 299.8–313.6c (+30–36%), HEPS of 290.3–304.1c (+26–32%) and EPS of 297.4–313.3c (+12–18%). Results are due 15 September.

Afrimat Limited (AFT) -3.74%

Afrimat signalled early signs of recovery after a difficult FY25, with Q2 FY26 showing operational and sales improvements. Key drivers included higher local iron ore volumes, stable international demand, and a marked uplift in aggregate sales. Operational efficiencies at Nkomati and successful Holcim systems integration delivered meaningful cost savings. While the group continues to prioritise cash generation and debt reduction, management reaffirmed confidence in its diversified model, noting steady turnaround progress across recent, more complex acquisitions, underpinning long-term strategic resilience.

Curro Holdings Limited (COH) +50.31%

Curro reported a mixed set of H1 FY25 results, with revenue up 4.7% y/y to R2.7bn despite a 1.4% decline in average learner numbers to 71,749. EBITDA held steady at R625m, while recurring headline earnings dipped 1.8% to R224m. RHEPS and HEPS were broadly flat at 40.3c, though EPS fell 36.1% to 25.7c due to a R74m impairment on land earmarked for future school developments. No interim dividend was declared, consistent with policy to distribute 20% of RHEPS annually.

Putprop Limited (PPR) +2.75%

Putprop guided to a strong uplift in FY25 earnings, with EPS expected at 110.13–128.49c, up 19.9–39.9% y/y, and HEPS at 56.21–65.51c, up 20.8–40.8% y/y. The performance reflects continued operational improvements following a solid FY24 base, with growth across core property investments. Results are due on or about 3 September 2025, with management noting that the trading statement has not yet been reviewed by auditors. The update signals a resilient financial performance despite ongoing pressures in the South African property sector.

Spur Corporation Limited (SUR) -0.13%

Spur announced that an arbitrator has issued a part award in the long-running dispute with GPS Food Group. The arbitrator ruled in favour of GPS on the merits of Claim A (alleged oral JV agreement linked to a rib processing facility), though no damages quantum has yet been determined. Claim B was not awarded. Spur intends to appeal within 30 days, triggering a review by a three-member panel, whose ruling will be final. Management emphasised that liquidity and dividend policy remain unaffected.

Nvidia Corporation (NVDA) -0.09%

Nvidia delivered another record quarter, posting Q2 revenue of $46.7bn, ahead of consensus $46.05bn and its prior $44.1bn peak. Data centre sales contributed $41.1bn, underscoring AI demand momentum, with analysts expecting this to remain the core growth driver. Net income surged 42% y/y to $25.8bn, while adjusted EPS of $1.05 beat forecasts. Top-line growth of 6% highlights sequential resilience despite a high base. With robust demand for AI infrastructure, Nvidia continues to outperform expectations, cementing its position as the sector’s key earnings bellwether.

ByteDance Inc. (Not Listed)

ByteDance is launching a new employee share buyback that values the TikTok-owner at over $330bn, up from $315bn six months ago. Employees will be offered $200.41 per share, signalling confidence in future cash flow generation and ongoing revenue growth. Q2 revenue rose 25% y/y to c.$48bn, extending Q1’s $43bn and surpassing Meta’s quarterly sales. The programme, self-funded rather than investor-backed, underscores strong balance sheet flexibility. ByteDance continues to consolidate its lead in global social media revenues while investing heavily in AI and Nvidia-powered infrastructure.

Kohl’s Corporation (KSS) +24.00%
Kohl’s shares rallied 24% after beating expectations with adjusted Q2 EPS of $0.56 (vs $0.29 est.) and revenue of $3.35bn (vs $3.32bn est.), despite a 5% y/y sales decline. Interim CEO Michael Bender acknowledged ongoing challenges, with lower- and middle-income customers trading down, but highlighted efforts to reintroduce categories, expand exclusive affordable brands, and reset discounting. Full-year guidance was narrowed, with EPS seen at $0.50–0.80. Despite leadership turmoil and three years of declining revenue, management reiterated its focus on restoring growth and profitability.

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