CNBC Daily Open: Could Nvidia’s greatest obstacle be itself?

Nvidia beats expectations, but shares slip
Nvidia third-quarter earnings bushed expectations, but shares dropped 2.5% successful extended trading. The company's gross surged 94% twelvemonth connected twelvemonth to $35.08 cardinal successful the 4th ended Oct. 27. Net income rocketed 109% from a twelvemonth agone to $19.3 billion. Sales of Nvidia's next-generation spot Blackwell volition beryllium limited by supply, not demand, said the company.

Adani charged successful New York with fraud
Shares of companies successful India's Adani Group plunged aft its Chair Gautam Adani was indicted successful a New York national tribunal connected charges regarding a bribery and fraud scheme. Adani Green Energy, the steadfast astatine the halfway of the allegations, slumped 17.9%. Shares of Adani capitalist GQG Partners besides cratered astir 20%. Adani and different defendants are accused of paying Indian authorities officials implicit $250 cardinal successful bribes to get star vigor proviso contracts worthy much than $2 cardinal successful profits.

The Dow breaks losing streak
U.S. markets traded mixed connected Wednesday up of Nvidia's net aft the bell. The S&P 500 was flat, the Dow Jones Industrial Average roseate 0.32% to interruption its four-day losing streak and the Nasdaq Composite slipped 0.11%. Asia-Pacific stocks were mostly down connected Thursday. A drop successful Asian spot stocks, pursuing Nvidia's net report, weighed down South Korea, Japan and Taiwan markets.

U.S. DOJ recommends Google breaks disconnected Chrome
Google volition divest its Chrome net browser, if the U.S. Department of Justice's recommendations are passed by a U.S. court. Further, the DOJ suggested preventing Google from entering into agreements with different companies to marque its hunt motor the default option. In August, a national U.S. justice ruled that Google holds a monopoly successful search.

[PRO] Asian markets to look antithetic successful 2025
China's stimulus measures, India's economical maturation slowing down and Southeast Asian countries ramping up concern volition alteration the scenery of Asian markets adjacent year, according to HSBC. For 2025, the slope picks 3 "underappreciated" but "quality stocks," with 1 having a potential 63% upside.

There's a conception successful science called the "hedonic treadmill."  It theorizes that arsenic radical execute success, their expectations emergence alongside. As a result, radical request an ever-increasing magnitude of betterment to consciousness the aforesaid grade of happiness they felt initially.

Nvidia seems a unfortunate of this concept. The chipmaker didn't disappoint successful presumption of third-quarter gross and nett income, compared with what analysts polled by LSEG had expected.

For the existent quarter, analysts forecast $37.08 cardinal successful existent 4th sales. The chipmaker predicts it volition bushed that by astir $400 million.

Despite that, Nvidia shares dropped astir 2.5% successful extended trading.

Investors are apt zooming successful connected the complaint astatine which Nvidia is increasing its numbers, compared with its past performance, not conscionable whether it's surpassing expectations.

Even though Nvidia's third-quarter gross soared 94% connected an yearly basis, it's a slower gait than Nvidia's maturation successful the erstwhile 3 quarters, erstwhile income roseate 122%, 262%, and 265%, respectively, arsenic CNBC's Kif Leswing notes.

The aforesaid goes for Nvidia's guardant guidance: A maturation of astir 70% for current-quarter sales, compared with a twelvemonth earlier. Take retired the champagne? No. Investors deliberation that warrants lone immoderate lukewarm beer, due to the fact that it's little than third-quarter maturation of 94%, and dramatically falls abbreviated of Nvidia's 265% annual growth successful the aforesaid play a twelvemonth prior.

The information that Nvidia's shares slipped successful extended trading aft specified a sterling study "tells you however overmuch the expectations crippled connected Nvidia has been ramped up," Aswath Damodaran, concern prof astatine New York University's Stern School of Business, told CNBC.

"They don't conscionable person to bushed expert estimates; they got to bushed them by 10%."

It appears that investors person enjoyed Nvidia's astounding show for truthful agelong they've go desensitized to it. Maybe it's clip to get disconnected the treadmill?

— CNBC's Kif Leswing, Samantha Subin and Brian Evans contributed to this report.