Morning Macro 20th November
U.S. equities jump overnight (Nasdaq futures +1.9&) as Nvidia Q3 earnings destroy expectations, revenue +22% QoQ, sells out of cloud GPUs, will exceed USD200bn in full year earnings (and not a dime earned from China), while The Federal Reserve minutes moved down the markets’ expectations of a December rate cut to just 30%, driven largely by multiple references to inflation by a deeply divided FOMC. Meanwhile another day of Japanese debt fears, yields continue going vertical with 20Y & 40Y JGB yields both just printing record highs, and yet the currency falls another 1.1%.
Nvidia reports record Q3 FY26 results with $57B revenue (+22% QoQ, +62% YoY).
[RTRS] – WHITE HOUSE ASKS CONGRESS TO REJECT BILL CURBING NVIDIA EXPORTS-BLOOMBERG NEWS…… Huge!!!
If there’s any reason to stay bullish on the AI infrastructure buildout, it’s this chart of planned capacity that still needs to be built. An ‘AI Winter’ will be because of power constraints limit the volume of GPUs purchased as future generations require 2-3x the KW per rack. (Chart 1, Aterio, Goldman Sachs Global Investment Research)
BofA says a small percentage of data centres are AI ready. Power needs will only grow as future generations of GPUs are released. (Chart 2, BofA Global Research)
Data today – U.S. September jobs report, Philly Fed manufacturing data, Japan inflation
