CNBC Daily Open: Are investors missing the Nvidia forest for the AI tree?

Market watchers mightiness beryllium perplexed by the seemingly contradictory moves of Nvidia's shares successful extended trading.

The institution bushed expectations for its second-quarter results, and its guardant gross guidance besides surpassed expectations. A banal buyback was besides announced, but the banal fell.

The reason? Data halfway revenue, which serves arsenic a proxy for the company's AI prospects, came up abbreviated of estimates.

Nvidia's maturation successful caller years has been fueled by its information halfway business, which focuses connected graphics processors, oregon GPUs, and related products that nexus and standard them for ample deployments. Revenue from the part roseate 56% from a twelvemonth earlier to $41.1 billion, somewhat beneath the $41.34 cardinal estimation from StreetAccount.

However, it is important to enactment that the institution is not performing poorly. In fact, the chipmaker has topped net estimates successful 11 of the past 12 quarters, but its shares fell aft results connected 4 of those occasions, according to FactSet.

Could investors then, beryllium expecting excessively overmuch from the chipmaker?

Remember, Nvidia inactive has different engines to trust on, specified arsenic its gaming division. In fact, earlier the AI boom, Nvidia's gaming part was its largest gross driver, and the steadfast was much wide known among machine enthusiasts for its graphics cards, which they would instal successful their ain rigs.

Trees, forests and the Nvidia logo mightiness each beryllium green, but investors shouldn't miss the Nvidia wood for the AI tree.

Nvidia posts results beat. The tech giant reported better-than-expected earnings and gross connected Wednesday, and said income maturation this 4th volition stay supra 50%. However, the banal slipped successful extended trading, arsenic information halfway gross fell abbreviated of estimates for the 2nd consecutive period.

S&P notches caller closing high. The wide marketplace scale gained 0.24% astatine the extremity of the league and reached a caller closing precocious of 6,481.40 arsenic each 3 large U.S. indexes climbed connected Wednesday up of Nvidia's earnings. Over successful Europe, the pan-European Stoxx 600 inched up 0.1% arsenic markets remained mixed.

Canada Goose jumps. New York-listed shares of Canada Goose rose much than 15% Wednesday after a CNBC report that the winter-clothing maker's controlling shareholder, Bain Capital, has drawn involvement successful taking the institution private.

Fed continues to accent independence. New York Federal Reserve President John Williams connected Wednesday stressed the value of cardinal slope independence arsenic President Donald Trump looks to exert power implicit monetary policy. This follows unit from Trump connected the cardinal bank's leadership, including an onslaught connected Fed Chair Jerome Powell and attempting to occurrence Fed Governor Lisa Cook.

[PRO] Pros measure if TSMC is simply a "smart" buy. Nvidia CEO Jensen Huang's said past week that investors buying TSMC banal would beryllium "very smart." Analysts from Morningstar, Macquarie and GFM Asset Management share their thoughts with CNBC.