Nvidia stock downbeat despite blockbuster quarter

Good morning and welcome back. In today’s newsletter:

Nvidia stock downbeat despite blockbuster quarter
Marco Rubio warns on Iran’s ballistic missiles ahead of talks
UK government debt sales set to fall for first time in four years
The battle for the world’s most coveted elements

We start with the world’s most valuable company, whose shares barely moved despite reporting strong earnings.

What to know: Nvidia’s earnings and growth forecast met a muted response yesterday as anxiety about the sustainability of an AI investment boom weighed on the semiconductor company.

Nvidia said it expected revenue of $78bn for the current quarter, well above Wall Street expectations of $72.1bn. Its total annual revenue topped $200bn for the first time in its 2026 fiscal year, while its net income was $120bn.

Market reaction: Despite the nearly $6bn positive surprise, shares in the company at the heart of the AI sector ended flat in after-hours trading, reflecting a growing wariness about the huge spending by Nvidia’s largest Silicon Valley customers and a memory chip shortage.

Why it matters: Nvidia’s earnings came after weeks of market volatility triggered by worries about AI upending traditional industries, as well as a spending spree on data centres. Michael Acton has more from San Francisco.

Lobbying efforts: Silicon Valley rivals are spending big in their AI regulation campaigns, targeting midterm contests that could reshape Congress.
AI financing: Tech companies are increasingly turning to chip-backed loans as they hunt for ways to fund their investments.

Here’s what else we’re keeping tabs on today:

Central banks: European Central Bank president Christine Lagarde gives her views to the European parliament Committee on Economic and Monetary Affairs.
Diplomacy: Iranian foreign minister Abbas Araghchi will hold talks with US envoys Steve Witkoff and Jared Kushner in Geneva. More on US-Iran relations below.
US: Former secretary of state Hillary Clinton is due to appear at a House Committee on Oversight and Government Reform deposition as part of an investigation into Jeffrey Epstein. Her husband, former president Bill Clinton, will testify tomorrow.
Results: Allianz, AXA, Bouygues, Jupiter Fund Management, London Stock Exchange Group, Man Group, Ocado, Puma, Stellantis and WPP report earnings.

Join us for a live Ask an Expert Q&A with Ben Hall, the FT’s Europe editor, who will be answering your questions on how Europe should respond to a rocky transatlantic alliance.

Five more top stories

1. US secretary of state Marco Rubio has warned that Iran’s unwillingness to discuss its ballistic missile programme with Washington is a “big problem” ahead of key talks set for today that are aimed at averting American strikes on the Islamic republic.

2. UK government debt sales are forecast to drop for the first time in four years, a sign that chancellor Rachel Reeves’ effort to keep a lid on borrowing is easing pressure on the gilt market. Read what the expected fall in gross issuance means.

3. Engie has agreed to buy UK Power Networks for £10.5bn. The French utility announced it was purchasing Britain’s biggest electricity distribution company from CK Infrastructure Holdings, as it deepens its role in supplying power to households and businesses.

4. HSBC’s fees for non-executive directors have increased by almost £1mn, up 16 per cent from the previous year, even as they face criticism over the search to replace Sir Mark Tucker after his early departure left the chair role vacant for months. Read the full report.

5. Viktor Orbán’s rival is being handed a clear path to unseat the Hungarian prime minister in April’s elections as smaller opposition parties step aside to improve the chances of ending his 16 years in power. Read more on Péter Magyar’s quest for the country’s leadership.

News in-depth

After some of Blue Owl’s flagship funds were hit by a surge in redemptions, the New York-based investment group has been racing to shore up confidence. Its troubles have added to worries about the broader private capital sector.

We’re also reading . . .

Battle for Manchester seat: UK Prime Minister Sir Keir Starmer is in a rush to hold on to jaded Labour supporters ahead of a key by-election.
US carmakers: Profits at Ford and GM are set to recover this year, but a focus on large, high-margin vehicles could create a gap for Chinese rivals to exploit.
Add to cart: US researchers have studied how the shift to remote work has affected households’ shopping patterns. Soumaya Keynes checks out the findings.
Business of football: Top-flight European clubs lost more than €1bn last year despite record revenues of more than €30bn.

Graphic of the day

Dozens of the world’s naturally occurring elements are in high demand from industry, making them prone to shortages or vulnerable to international tensions. View our visual story showing the three classes of elements shaping global affairs.