CNBC Daily Open: Nvidia earnings beat and AI deals ease market jitters

Strong earnings from Nvidia, fresh AI investments, and optimism around enterprise software gave global markets a breather after weeks of AI-driven volatility.

Global markets found some relief as upbeat earnings, investments, and policy signals from the artificial intelligence ecosystem helped calm investor nerves rattled by fears of AI-led disruption.

The biggest catalyst was Nvidia, which posted better-than-expected fiscal fourth-quarter results. The chipmaker reported 75% revenue growth in its core data center business, underscoring sustained demand for AI computing. Shares rose in extended trading following the announcement.

Speaking to CNBC, Nvidia CEO Jensen Huang dismissed concerns that AI agents would undermine enterprise software companies. Instead, he argued that AI systems would rely even more heavily on existing software tools to boost productivity, calling fears of widespread software displacement “misguided.”

Investor sentiment was further supported by an analyst upgrade for Oracle, which, along with Nvidia’s results, helped lift Wall Street. The Dow Jones Industrial Average jumped around 300 points, while the S&P 500 and Nasdaq Composite also closed firmly higher.

Still, caution lingered. Dan Niles of Niles Investment Management warned that technological booms often lead to overcapacity before winners and losers emerge, adding that some software companies may struggle to survive the transition.

That uncertainty was reflected in mixed reactions across software stocks. Salesforce issued softer guidance for its upcoming quarter, sending its shares lower after hours, despite posting its fastest revenue growth in two years.

AI funding and global cues

Adding to the positive momentum, venture firm Thrive Capital invested roughly $1 billion into OpenAI, valuing the AI startup at about $285 billion. The investment reinforced confidence in long-term AI growth prospects.

In Asia, tech stocks rallied, with Japan’s Nikkei 225 hitting a record high amid expectations of accommodative monetary policy. European tech shares were also in focus, with analysts expecting Nvidia’s strong guidance to benefit semiconductor and infrastructure players.

Policy and product developments

Meanwhile, major U.S. technology firms are set to sign a pledge committing to secure their own power supplies for new AI data centers during a White House meeting scheduled for March 4.

In the consumer tech space, Samsung launched its third “AI phone” lineup, placing artificial intelligence features at the center of its Galaxy S26 series amid ongoing global memory chip shortages.

On the geopolitical front, U.S. President Donald Trump defended his trade agenda in a recent address, even as a Supreme Court ruling struck down parts of his tariff strategy, raising questions over the durability of recent trade deals.