NAS100 soft amid strong Nvidia results and skeptical markets
NAS100 Analysis
Nvidia delivered blockbuster earnings with revenues rising 85% y/y in Q1 FY26 at the fastest pace in over a year, while gross margins remained lofty at 74.9%. Crucially, management expects sales to accelerate further in the current quarter and margins to stay stable [1]. The solid momentum reaffirms Nvidia's AI leadership, which supports the broader AI narrative as Google and Amazon keep raising their investments to build out the needed infrastructure.
Meanwhile, the AI story is filtering through to more players carrying the tech-heavy index this year. HBM darling Micron is reaping the benefits of a memory chip crunch, while Intel rides high on increased demand for CPUs driven by the rise of Agentic AI.
As a result, NAS100 remains well positioned to extend its AI-fuelled rally to new records. Still, the path is not straightforward, as underscored by today's softness. Wirth RSI diverging lower and broader pitfalls, NAS100 is vulnerable to declines that could test the EMA200 and the bullish bias.
Markets appear unimpressed by Nvidia's numbers as challenges to its dominance mount. China remains a thorn: the US has approved H200 shipments but management expects no sales to the country, depriving it of a key growth catalyst. Beijing is pushing for technological self-reliance and local players like Huawei, Alibaba and Baidu are building their own custom chips.
Trade and economic implications pose real-world hurdles for the semiconductor industry, pushing costs higher and making the construction and operation of data centres more expensive. Meanwhile, macroeconomic uncertainty could weigh on consumption and marketing budgets, in turn testing market patience for the massive capital expenditures.
Crucially, the spike in energy prices is pushing inflation higher. Last week's CPI and PPI reports pointed to broadening and persistent price pressures, raising the risk of second-round effects. The inflationary impulse has led markets to price out any Fed rate cuts for the year, while rate hike bets are on the rise. Wednesday's minutes from the April hold showed a "majority of participants" see "some policy firming" as appropriate should inflation stay above 2%. [2]
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. With extensive experience in market analysis and a strong foundation in international relations, he brings a unique perspective to financial markets. Nikos emphasizes not only technical analysis but also on fundamentals and the growing influence of geopolitics on financial trends.
As a Senior Financial Editorial Writer, he delivers comprehensive and forward-looking insights across a wide range of asset classes, including equities, commodities, and currencies. His work explores how macroeconomic events, political developments, and global policies impact market dynamics, providing readers with a deeper understanding of both short-term movements and long-term trends.
References
| Retrieved 21 May 2026 https://nvidianews.nvidia.com/news/nvidia-announces-financial-results-for-first-quarter-fiscal-2027 | |
| Retrieved 22 May 2026 https://www.federalreserve.gov/monetarypolicy/files/fomcminutes20260429.pdf |
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