A volatile week for artificial intelligence and crypto investments appears to be ending on a relatively positive note—or at least showing some signs of stability.
NVIDIA (NVDA) earnings on Wednesday provided what we view as a positive read-across for the AI investment theme, although the shares subsequently came under pressure because of the profit margin outlook.
Meanwhile, Bitcoin and other crypto assets experienced heavy selling pressure this week after a $1.5 billion cyberattack on a foreign crypto exchange (more on that below).
Representing around 6% of the S&P 500 Index, NVDA is an important stock to track for many reasons, even if one is not directly invested in the shares.
NVDA is the critical supplier of technology enabling the AI data center buildout that is driving growth across the economy.
It has been a few weeks since Chinese start-up DeepSeek caused the market to question the sustainability of AI-related investment.
NVDA’s revenue results, coming on the heels of reassuring capital spending announcements from several big tech companies, demonstrate the resilience of the AI investment theme.
This is positive for the stock market as a whole—and especially stocks that stand to benefit from the AI buildout.
