Nvidia(US:NVDA) Di Yi Cai Jing·2025-11-24 12:05Core Insights - The market's hope for a recovery in tech stocks was pinned on Nvidia's earnings report, but despite a strong performance, selling pressure continued in the tech sector, with funds shifting towards more defensive areas like healthcare [2][3] Group 1: Nvidia's Earnings and Market Reaction - Nvidia reported a remarkable quarterly revenue growth of 65% year-over-year, marking a return to acceleration for the first time in two years, with data center revenue increasing by 66% [3] - Despite the strong earnings, concerns about an "AI bubble" persisted, leading to a sell-off in tech stocks rather than a rebound [3][4] - Institutional investors have been reducing their tech positions, with funds flowing into defensive sectors, particularly healthcare [2][3] Group 2: Concerns Over AI Investment Returns - There are growing worries about the sustainability of cash flows in the AI sector, as companies like Oracle and Meta are heavily leveraging to maintain capital expenditures [4][5] - The need for substantial capital investment in AI raises questions about the industry's ability to generate sufficient returns, with estimates suggesting a need for $650 billion in annual cash flow by 2030 to achieve a 10% return on cumulative capital [5][6] Group 3: Macroeconomic Factors Impacting Market Sentiment - The probability of a Federal Reserve rate cut in December has significantly decreased, which poses a risk to growth stocks sensitive to interest rates [6][7] - Recent employment data showed mixed signals, complicating the Fed's decision-making process, with the unemployment rate rising to 4.4%, the highest in four years [6][7] - Concerns about inflation and rising long-term Treasury yields are also affecting market sentiment, with a significant portion of U.S. debt concentrated in the short-term [8]