Date: 21st May 2026.
Strong NVIDIA Earnings: Why the Weak Reaction?
NVIDIA’s quarterly earnings report continues to deliver very strong results and guidance for the upcoming quarter, though the stock’s reaction was relatively weak in the short term. At times during the hours after NVIDIA’s report was made public, the stock rose, but at the moment it is trading 1.25% higher.
Economists argue that investors had already priced in a strong quarter and did not find the results surprising. In addition, the stock has already gained 70% over the past 12 months, suggesting traders are satisfied with both the gains and the current price. For this reason, the reaction remains relatively muted, although it supports the broader stock market.
The NASDAQ and US stock market are seeing both up and down price movement during this morning’s Asian session. This is partially due to traders waiting for the US market to open in order to digest the NVIDIA news, as well as the tug-of-war between positive earnings and geopolitical issues.
In regards to NVIDIA, the main story is still AI infrastructure demand. Earnings per share were $1.87 and revenue was just over $81 billion, both higher than expectations. Data Centre revenue now represents the overwhelming majority of NVIDIA’s business, driven by demand for AI chips, networking, and full-stack AI systems.
NVIDIA also reported record Data Center compute revenue of $60.4 billion and networking revenue of $14.8 billion, showing that growth is not only from GPUs but also from the broader AI infrastructure ecosystem.
In addition to this, investors are closely monitoring developments within the Middle East. Even though some reports suggest that the negotiations are close to producing a memorandum, the US President and Iran remain in a war of words. This morning, both the US Dollar and crude oil are trading higher due to this. Any escalation causing higher inflation and a further bond selloff can pressure the NASDAQ’s trend.
HFM - NASDAQ 15-Minute Chart
In the short term, if the price falls below $29,178.40, sell signals are likely to arise. However, if the price rises above $29,288.20, buy signals can strengthen further. All global indices are trading lower this morning, giving a slight bearish bias. However, markets will monitor the price action as the US session opens.
US President Donald Trump again demanded Iran’s compliance with White House conditions. However, Iran continues to insist on sanctions relief and access to frozen assets before negotiations continue. According to Al Arabiya, US and Iranian representatives may meet in Islamabad after the Hajj season, with this year’s main rituals falling on May 25-29. Mediators from Qatar, Saudi Arabia, Turkey, and Egypt have recently worked to bridge the gaps. Iran now needs to offer specific nuclear commitments, while the US must clarify the process for unblocking Iranian funds.
HFM - XAUUSD 1-Hour Chart
On the 1-hour chart, the price of Gold continues to trade below the key moving averages and below the VWAP. However, the price remains within the neutral level of the RSI and the MACD. For this reason, Gold is not experiencing sell signals from all indicators, but is seeing a bearish bias.
Please note that times displayed based on local time zone and are from time of writing this report.
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Michalis Efthymiou
HFMarkets
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
Strong NVIDIA Earnings: Why the Weak Reaction?
NVIDIA’s quarterly earnings report continues to deliver very strong results and guidance for the upcoming quarter, though the stock’s reaction was relatively weak in the short term. At times during the hours after NVIDIA’s report was made public, the stock rose, but at the moment it is trading 1.25% higher.
Economists argue that investors had already priced in a strong quarter and did not find the results surprising. In addition, the stock has already gained 70% over the past 12 months, suggesting traders are satisfied with both the gains and the current price. For this reason, the reaction remains relatively muted, although it supports the broader stock market.
The NASDAQ and US stock market are seeing both up and down price movement during this morning’s Asian session. This is partially due to traders waiting for the US market to open in order to digest the NVIDIA news, as well as the tug-of-war between positive earnings and geopolitical issues.
The NASDAQ Reacts to NVIDIA’s Strong Earnings Report
Over the past week, the NASDAQ formed a clear double bottom pattern, followed by a reversed head and shoulders pattern. Both patterns indicate upward price movement due to the index finding support. The key drivers will remain NVIDIA’s earnings report, as well as factors forming due to the US-Iran conflict.In regards to NVIDIA, the main story is still AI infrastructure demand. Earnings per share were $1.87 and revenue was just over $81 billion, both higher than expectations. Data Centre revenue now represents the overwhelming majority of NVIDIA’s business, driven by demand for AI chips, networking, and full-stack AI systems.
NVIDIA also reported record Data Center compute revenue of $60.4 billion and networking revenue of $14.8 billion, showing that growth is not only from GPUs but also from the broader AI infrastructure ecosystem.
In addition to this, investors are closely monitoring developments within the Middle East. Even though some reports suggest that the negotiations are close to producing a memorandum, the US President and Iran remain in a war of words. This morning, both the US Dollar and crude oil are trading higher due to this. Any escalation causing higher inflation and a further bond selloff can pressure the NASDAQ’s trend.
HFM - NASDAQ 15-Minute Chart
In the short term, if the price falls below $29,178.40, sell signals are likely to arise. However, if the price rises above $29,288.20, buy signals can strengthen further. All global indices are trading lower this morning, giving a slight bearish bias. However, markets will monitor the price action as the US session opens.
Gold Remains Under Pressure from the Dollar And Iran Conflict
The price of Gold continues to come under pressure from bond yields, the US Dollar, and global monetary policy. These three elements are tied to the conflict in the Middle East.US President Donald Trump again demanded Iran’s compliance with White House conditions. However, Iran continues to insist on sanctions relief and access to frozen assets before negotiations continue. According to Al Arabiya, US and Iranian representatives may meet in Islamabad after the Hajj season, with this year’s main rituals falling on May 25-29. Mediators from Qatar, Saudi Arabia, Turkey, and Egypt have recently worked to bridge the gaps. Iran now needs to offer specific nuclear commitments, while the US must clarify the process for unblocking Iranian funds.
HFM - XAUUSD 1-Hour Chart
On the 1-hour chart, the price of Gold continues to trade below the key moving averages and below the VWAP. However, the price remains within the neutral level of the RSI and the MACD. For this reason, Gold is not experiencing sell signals from all indicators, but is seeing a bearish bias.
Key Takeaways:
- NVIDIA delivered strong earnings and guidance, but the reaction remains weak because investors had already priced in a strong quarter.
- AI infrastructure remains NVIDIA’s main growth driver, with Data Centre revenue now representing the majority of the business.
- The NASDAQ remains sensitive to both NVIDIA’s performance and geopolitical risks, especially developments in the US-Iran conflict.
- Gold remains under pressure from a stronger US Dollar, higher bond yields, and uncertainty around global monetary policy.
Please note that times displayed based on local time zone and are from time of writing this report.
Click HERE to access the full HFM Economic calendar.
Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!
Click HERE to READ more Market news.
Michalis Efthymiou
HFMarkets
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
