1. Nvidia today is a data center business.

Overall, the results were good but not good enough to surpass sky-high expectations. Shares are down roughly 1% after the bell.

During the conference call, Jensen Huang shared this on AI market potential: “I believe that there will be no digestion until we modernize a trillion dollars worth of data centers.” On the inference market, he said: "…that's when AI has really succeeded. It's when every single company is doing inference inside their companies."

2. Asian stocks are down, as some of the region’s tech heavyweights are following Nvidia Corp.’s lackluster revenue forecast.

Sentiment has been week this month as investors brace for Donald Trump’s second presidency and the potential for higher tariffs particularly on China.

Concerns that the Federal Reserve may be less aggressive in easing, and the dollar’s recent strength, have sapped demand for Asian assets.

3. Goldman economists remain confident about continued growth throughout 2025.

“That said, with growth expectations already elevated, the current valuations are leaving them more vulnerable to any disappointments.”

Here is Goldman’s return forecast for all regions for 2025.

Japan is their top pick, with the tailwind of a weak yen. They also like the UK and China for their low PEG ratios.

4. A further rise in bond yield could trigger “risk-off” trading alerts.

Long-term interest rates have been rising, driving a wedge between the ‘typical’ relationship between bond yields and PE ratios.

As you can see below, the high P/E level (left scale) is out of sync with the current level of interest rates (reversed right scale).

5. The NYSE Pharmaceutical Index has dropped almost 5% since Kennedy’s nomination, while the S&P Biotech ETF has seen losses of nearly 10%.

But large-cap pharma companies are now trading at about a 35% discount to the S&P 500, as measured by their forward price-earnings ratios.

The discount is even larger—about 45% to 50%—if Eli Lilly, maker of a blockbuster obesity drug, is removed from the group, Chris Schott, an analyst at J.P. Morgan notes. While the cloud of uncertainty could persist for a while, he says “the potential for upside outweighs the potential for additional downside, especially for longer term investors.”

6. Are the manufacturers of Ozempic and Zepbound ready to meet demand?

The sharp divergence between demand and supply of GLP-1s is nearly unprecedented in modern pharmaceutical history in terms of its scale and its persistence. “This is a phenomenon like nothing we’ve seen since the advent of birth control,” says Scott Brunner, CEO of the Alliance for Pharmacy Compounding. “It’s even bigger than the HIV drugs in the 1990s or Viagra.”

7. “In the next 25 years we will consume more copper than humanity has consumed until now.”

Glencore estimates that global copper supply must grow by about one million metric tons a year through 2050.

That would require annually adding the equivalent of the world’s largest mine, Chile’s Escondida.

Even if such rich deposits are found, it can take decades to bring mines online.

That prevents miners from responding quickly to new demand, which leaves “scrap” to balance the market.

Scrap? Nearly half of demand will be met with recycled copper by 2050, up from about a third today, estimates energy-data firm Wood Mackenzie.

Copper producers are building up recycling capacity and “scrap recovery” is really determining, in some respects, what price level we will get to in the future.

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