The company said on Wednesday that third-quarter sales will be about $54 billion through October. That figure matched average Wall Street estimates, but some analysts had expected more than $60 billion, according to Bloomberg. The guidance raised concerns that the pace of AI investment may not be sustainable, particularly as Nvidia faces headwinds in China. Although the Trump administration recently eased export restrictions on some AI chips, Bloomberg noted that the policy shift has yet to produce a rebound in sales.

Nvidia shares fell 3% in extended trading following the announcement. The stock had already gained 35% this year, lifting the company's valuation beyond $4 trillion. Chief Executive Officer Jensen Huang rejected suggestions during a call with analysts that demand for AI infrastructure is waning. "The opportunity ahead is immense," Huang said, quoted by Bloomberg. "We see $3 trillion to $4 trillion in AI infrastructure spend by the end of the decade."

The company's board approved an additional $60 billion stock repurchase program. Nvidia still had $14.7 billion remaining under its previous buyback plan at the close of the second quarter, Bloomberg reported.

For the second quarter, which ended July 27, revenue rose 56% to $46.7 billion, narrowly topping analyst expectations of $46.2 billion. That gain added more than $16 billion year-on-year but marked the slowest percentage growth in over two years. Adjusted earnings per share were $1.05, ahead of the $1.01 forecast.

The data center unit, larger than any other single chipmaker, posted $41.1 billion in revenue, slightly under expectations of $41.3 billion. Gaming sales rebounded to $4.29 billion, beating the $3.8 billion projection. Automotive revenue reached $586 million, slightly short of estimates. The results suggested major data center operators may moderate spending if near-term AI application returns remain uncertain, analyst Jacob Bourne told Bloomberg.

Nvidia's challenges also stem from the US-China technology rivalry. In April, the Trump administration tightened restrictions on exports of advanced processors, cutting Nvidia off from the Chinese market. Washington later eased that ban, allowing some shipments in exchange for 15% of the revenue. But Bloomberg reported that the policy has yet to be fully codified, leaving uncertainty. Beijing has also encouraged Chinese entities to replace US suppliers.

Nvidia said it made no H20 chip sales to Chinese clients in the second quarter, a roughly $4 billion drop from the prior period. Its third-quarter forecast likewise excluded those sales. The company acknowledged legal and financial risks if the US government enforces its revenue-sharing plan. "Any request for a percentage of the revenue by the USG may subject us to litigation, increase our costs, and harm our competitive position and benefit competitors that are not subject to such arrangements," Nvidia said in a filing, quoted by Bloomberg.

Huang said Nvidia could still ship between $2 billion and $5 billion of H20 chips to China this quarter, depending on licensing approvals. Chief Financial Officer Colette Kress told analysts that demand remains high. "If we had more orders, we can bill more," she said. Huang added that Nvidia continues to push Washington to allow exports of its new Blackwell chips. "The opportunity for us to bring Blackwell to the China market is a real possibility," he said, quoted by Bloomberg. "We just have to keep advocating the sensibility of and the importance of American tech companies to be able to lead and win the AI race."

According to Bloomberg, Huang estimated that if more advanced products could be sold in China, Nvidia could tap into a $50 billion market growing 50% annually.

Founded 32 years ago, Nvidia has risen from a niche graphics card supplier to a dominant force in computing. As recently as 2022, it generated less annual revenue than it now earns in a quarter. The company is on pace to book $200 billion this year, with projections topping $300 billion by 2028, or about one-third of the global chip market.

Much of Nvidia's success comes from sales to a handful of hyperscale clients including Microsoft and Amazon, which together account for about half its business, Bloomberg reported. To reduce reliance on these customers, Huang is expanding into software, networking, and complete computing systems. He also pushes Nvidia's engineering teams to speed up innovation cycles.

For now, Nvidia dominates the AI chip market with little challenge. Efforts by rivals such as Advanced Micro Devices and in-house projects by cloud providers have not dented its share significantly. Yet the company remains constrained by supply, since it outsources production mainly to Taiwan Semiconductor Manufacturing Co. Meeting surging demand for its latest technologies continues to be a bottleneck.

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After a period of strong momentum, the weekly chart now points to fading strength. As The Tradable explained, institutional investors appear to be scaling back, and retail holders may find themselves exposed if the slowdown accelerates.

At its recent peak near $189.30, the stock appeared stretched. One market analysis posted on X, highlighted by The Tradable, warned that continued pressure on demand levels could drive NVDA down by roughly 18.36%, equating to about $32 per share, toward $143.63 in the short term.

The $175 mark is considered a key line in the sand. Analysts told The Tradable that while the chart technically retains a bullish structure, failure to remain above this threshold could quickly shift sentiment to bearish.

If the sell-off extends, some institutional buying interest has been spotted between $140 and $150. As reported by The Tradable, that area could represent either a major buying opportunity or a short-lived recovery depending on how traders respond.

Ultimately, Nvidia stock stands at a turning point. A slide below present levels would give weight to the $143 scenario, but holding above $175 might delay bearish expectations. According to The Tradable, the outcome of this week's trading session is likely to define the direction.

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Corporate earnings releases drove much of the market enthusiasm, with several major companies delivering results that surpassed analyst expectations. PepsiCo shares jumped more than 5% following better-than-expected earnings, while United Airlines gained 6% after the carrier beat earnings estimates, CNBC reported. The strong performance from these companies reflected broader trends in the current earnings season.

Quarterly earnings reports released during the week have consistently exceeded Wall Street's projections, fueling sustained investor confidence across multiple sectors. Approximately 50 S&P 500 components have reported their results thus far, with an impressive 88% of those companies exceeding analysts' expectations, according to FactSet data cited by CNBC. This performance has provided substantial support for the ongoing market rally.

Economic data releases on Thursday further reinforced positive sentiment about the US economy's underlying strength. The Labor Department reported that jobless claims for the week ending July 12 totaled 221,000, representing a decrease of 7,000 from the previous week, CNBC reported. This decline in unemployment claims suggested continued stability in the labor market.

Retail sales data provided additional encouragement for market participants, with June figures rising more than economists had anticipated. The US Census Bureau reported that retail sales increased 0.6% from May, significantly beating the 0.2% estimate from the Dow Jones consensus, according to CNBC. This robust consumer spending data reinforced confidence in the economy's consumer-driven growth.

"A reassuring retail sales result comes at the perfect time as earnings season kicks into gear," Bret Kenwell, eToro US investment analyst, told CNBC. "If earnings are more upbeat than expected and if management continues to tell a reassuring story about consumer spending, stocks could react favorably – even after a rally to record highs that some investors may view as overextended. At the end of the day, consumers are the backbone of the US economy."

Market volatility emerged from political developments affecting Federal Reserve leadership, creating temporary uncertainty among investors. Wall Street experienced a volatile trading session after President Donald Trump denied planning to fire Federal Reserve Chairman Jerome Powell from his position as Fed chief, CNBC reported. The political drama surrounding monetary policy leadership briefly disrupted market momentum.

Wednesday's trading session saw significant fluctuations after a White House official indicated that Trump "likely will soon" fire Powell from his post, according to CNBC. Equities initially declined on these reports but subsequently rebounded after Trump downplayed the speculation and stated he was "not planning on doing it," though he added that he does not "rule out anything."

The week's overall market performance has shown resilience despite the Federal Reserve leadership uncertainty. The S&P 500 is trading higher by 0.6% for the week, while the 30-stock Dow has gained 0.3%, CNBC reported. The Nasdaq has demonstrated particularly strong performance, jumping 1.5% for the week as technology stocks continued their upward trajectory.

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Nvidia's 5.6% jump translated to a market cap increase of $180 billion, bringing its total valuation to approximately $3.394 trillion. This estimate is derived from the gain: a 5.6% increase equating to $180 billion implies a pre-surge market cap of around $3.214 trillion. The stock's performance far outpaced the Nasdaq's 1.51% rise, underscoring Nvidia's outsized influence on the tech-heavy index.

The surge comes on the heels of Nvidia's latest quarterly earnings, which showcased a 69% sales increase to $44.06 billion, driven by soaring demand for AI infrastructure. CEO Jensen Huang highlighted the "incredibly strong" demand, noting that AI inference token generation–a key metric for AI workloads–had surged tenfold in the past year. Despite missing earnings expectations with adjusted earnings of 81 cents per share (versus 86 cents expected), the sales growth fueled investor enthusiasm. However, Nvidia also faced headwinds from export curbs, missing out on $2.5 billion in sales of its H20 products due to geopolitical restrictions.

This rally marks a significant recovery for Nvidia, which earlier in 2025 suffered a record-breaking $600 billion single-day market cap loss on January 27 after the report on China's DeepSeek spooked markets. This was the largest ever drop for a US company, fueled by the fear that China could manage without relying on the US-giant's advanced processors. That 17% drop, part of a broader sell-off in AI stocks, reflected concerns over AI infrastructure demand and export restrictions on products like the H800 chip. The May 29 rebound signals renewed investor confidence, bolstered by Nvidia's pivotal role in the AI boom and favorable market conditions.

Tariff ruling sparks optimism

A major driver of the day's market gains was a US trade court's decision to block most of President Trump's tariffs, ruling that he had overstepped his authority under the International Emergency Economic Powers Act (IEEPA). The ruling, reported by Reuters, invalidated tariffs imposed since January, providing immediate relief to US companies reliant on imports. The decision led to a surge in the US dollar against the euro, yen, and Swiss franc, while equities in Asia and Wall Street futures also rallied.

For tech companies like Nvidia, which depend on global supply chains for chip production, the tariff relief reduces costs and boosts profitability. A related post from @WeWin_Together at 13:32 UTC, titled "Call Your Tariffs," linked to further details on the ruling, highlighting its significance for the market. However, the ruling does not affect industry-specific tariffs (e.g., on steel or automobiles), and potential appeals could reverse the decision, leaving some uncertainty.

While Nvidia's performance and the tariff ruling dominated headlines, other developments painted a mixed picture of the global economy. @WeWin_Together reported that spot gold rose nearly 1% to $3,320.89 per ounce, reflecting potential investor hedging against inflation or geopolitical uncertainty. This coincided with news of North Korea shipping over 20,000 containers of munitions to Russia to support the Ukraine war–a development that could heighten global tensions. Despite these concerns, the market's upward trajectory suggests investors were more focused on tariff relief and AI-driven growth.

Nvidia's as an AI Bbellwether

Described as an "AI bellwether," Nvidia's performance is a barometer for the health of the AI sector. Its 69% sales growth and $180 billion market cap gain underscore the ongoing AI boom, with cloud service providers like AWS, Google Cloud, and Microsoft Azure increasingly relying on Nvidia's GPUs to meet surging demand. Analysts expect Nvidia's gross margins to reach the mid-70% range later in 2025, which could further propel its stock price if achieved.

Looking ahead, Nvidia's growth trajectory appears strong, but challenges remain. Export curbs continue to impact sales, and geopolitical tensions– could introduce volatility. The tariff ruling's long-term impact hinges on potential appeals, which could reinstate some duties and affect global supply chains.

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Amit reports the S&P 500 rose 0.50% and the Nasdaq Composite gained 1.13%, while the Dow Jones Industrial Average declined 0.20%. The Consumer Price Index came in at 2.8%, slightly below the expected 2.9%, with core CPI at 3.1%, also lower than anticipated.

"Shelter costs rose 0.3%, accounting for nearly half of the monthly CPI increase," Amit noted in his market recap. His analysis highlighted that "US egg prices surged 10.4% in February, with a notable 58.8% year-over-year increase," though "the cost for a dozen eggs has reduced by about $2 in the past week from an all time high at $8.25."

According to Amit, investors adjusted their expectations for interest rate cuts, with "probabilities for a rate cut at the FOMC meeting on March 19th is now 2% while probabilities for the May cut reduced from 40% to 27%."

In the technology sector, Amit reported that "Google unveiled Gemini Robotics, an AI model based on Gemini 2.0, designed to bring multimodal reasoning and embodied intelligence to robotics." He detailed that the company is "partnering with Apptronik, a humanoid robot startup, to develop advanced humanoid robots like Apollo."

Palantir announced "its sixth AIPCon, set for tomorrow," which will feature "new customer announcements, including Heineken, Walgreens, R1 RCM, RaceTrac, Ripcord, and others," according to Amit's analysis.

Amit also noted that "Goldman Sachs reduced its 2025 S&P 500 target to 6,200 from 6,500, citing weaker earnings, higher tariffs, and tighter conditions." The investment bank "lowered S&P 500 EPS to $262 from $268 and the valuation multiple to 20.6x from 21.5x."

Tesla's stock performance showed significant volatility, with Amit reporting the stock "hit a low of $215 on Monday and reversed over the past 2 days, up 10% today closing at $253." He observed that "Google Search interest for 'Buy a Tesla' has spiked to a multi-month high recently, with significant increases in Republican-leaning states like Nevada and Florida."

Mortgage rates continued their downward trend with Amit noting that "the average 30-year fixed-rate mortgage rate for conforming loans ($766,550 or less) in the US dropped to 6.67% for the week ending March 7, 2025, the lowest since early October."

The broader economic picture shows concerning trends, with Amit highlighting that "the US budget deficit ballooned to a record $1.15 trillion through the first five months of the fiscal year, while credit card debt surged to an all-time high of $1.21 trillion."

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Cramer reminded viewers there is always a bottom and recovery is possible. During his show, Cramer referenced the late CNBC anchor Mark Haines who correctly identified a market bottom on this exact date in 2009 during the financial crisis.

"So, in honor of the Haines bottom, remember, even when it's terrible out there, and it is terrible, stocks do bottom, and you have to do a little buying," Cramer told CNBC viewers. "The lack of clairvoyance of Haines, well, I plead guilty to that. But we know that you have to do some buying because, well, it's been right since 1979. So I have to ask you something, are you willing to bet that this time it's wrong?"

Cramer recalled on CNBC that several months before what became known as the "Haines Bottom," he had advised people to exit the market if they needed their money within five years. He acknowledged that sometimes withdrawing from the market can be prudent, noting that markets continued declining between his advice and Haines' accurate prediction.

The financial expert explained to CNBC audience that selling during steep market losses and economic uncertainty – which appears likely to continue under US President Donald Trump's administration – is understandable. People are capitulating to "get rid of the pain" and because they "don't want to lose the gain," according to Cramer.

However, for greater long-term returns, Cramer emphasized that investors should maintain positions in quality companies, pointing out that substantial gains often occur on just a few trading days each year. He mentioned that some investors have recently sold strong performers like Apple, Microsoft, Netflix and Meta.

"Think of it like this: Days like today are what kept you out of the big gains in the same stocks. Most people never get back," he stated on his CNBC program. "They don't buy, they forget, or they think that they can't tempt fate or the market's too brutal."

Cramer's advice comes amid growing market volatility and investor concern about economic conditions. The television host's references to the "Haines Bottom" serves as a historical reminder that even during severe downturns, markets eventually recover – a perspective that might provide some comfort to anxious investors watching their portfolios decline.

Financial analysts have noted that panic selling during market corrections often leads to missed opportunities when inevitable recoveries occur. Cramer's message aligns with traditional investment wisdom that long-term investors should view market declines as potential buying opportunities rather than reasons to exit entirely.

For many retail investors witnessing significant portfolio losses, the psychological challenge of remaining invested during volatility can be substantial. Yet Cramer's historical perspective suggests that discipline during difficult market conditions has traditionally been rewarded over time.

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