Despite another earnings beat, Nvidia failed to ignite fresh enthusiasm among investors accustomed to blockbuster surprises. January-quarter revenue topped expectations and forward guidance came in above forecasts, yet shares traded flat after hours, reversing an initial bounce. After 14 consecutive quarters of strong outperformance, markets appear to demand increasingly larger upside to justify lofty artificial intelligence valuations. While the results helped ease immediate fears about AI-related disruption and cost pressures, they did little to restore the powerful momentum that previously lifted the entire sector. Asian equities rose modestly in relief, though U.S. and European futures edged lower as investors reassessed growth expectations. Analysts also caution that the AI boom may no longer “lift all boats,” particularly as Nvidia’s revenue growth shows signs of gradual moderation.

Geopolitical tensions added another layer of uncertainty. U.S. and Iranian officials are set to hold talks in Geneva amid heightened military deployments in the Middle East, keeping oil prices elevated on supply concerns. Meanwhile, currency markets focused on Japan after Prime Minister Sanae Takaichi nominated two academics seen as supportive of stimulus to the board of the Bank of Japan. The yen initially weakened but found support following comments from Governor Kazuo Ueda suggesting a near-term rate hike remains possible. Together, earnings fatigue and geopolitical risks are tempering the once-unquestioned AI trade.