# Nvidia Outlook Boosts Tech Stocks, Warsh's Jackson Hole Debut

An episode of [Bloomberg Daybreak: Asia Edition](https://invisiblenetwork.ai/podcast/1663863437), 28 Aug 2026, 18 min.

Audio: https://podtrac.com/pts/redirect.mp3/traffic.omny.fm/d/clips/e73c998e-6e60-432f-8610-ae210140c5b1/58e85be7-dbb5-4043-afed-af80014dc0b3/69111621-3415-429c-834b-b4b400321102/audio.mp3?utm_source=Podcast&in_playlist=27143354-63aa-4ac5-965d-af80014dc0d3

Business and finance news from the Asia-Pacific. Nvidia Corp., the chipmaker at the heart of the artificial intelligence boom, projected sales growth of 70% for the next fiscal year, sending its shares on their biggest one-day rally since April 2025. The company's shares rose 8.7% to $227.98 in New York on Thursday, adding about $442 billion in market value. For more on the markers, we spoke to Sunny Bangia. He covers Asia Equities for Bloomberg News. Plus - Asian shares posted a modest gain, while US stock futures slipped, as traders held back ahead of Federal Reserve Chair Kevin Warsh's Jackson Hole speech for clues on the path of interest rates. Bloomberg's Paul Allen spoke to Betsey Stevenson, Professor of Public Policy and Economics at the University of Michigan See omnystudio.com/listener for privacy information.

## Transcript

[0:02] Speaker 1: Bloomberg Audio Studios. Podcasts. Radio. News.
[0:10] Speaker 2: Welcome to the Daybreak Asia podcast. I'm Doug Krisner.
[0:13] Speaker 3: In the U.S.
[0:14] Speaker 2: Equity market on Thursday, we had a rally among tech
[0:17] Speaker 2: shares following that blockbuster outlook from NVIDIA. It was after
[0:21] Speaker 2: the bell on Wednesday, the chipmaker said that revenue in
[0:24] Speaker 2: the next fiscal year will grow about 70%. So today,
[0:28] Speaker 2: shares in NVIDIA were up nearly 9%, and that gain
[0:32] Speaker 2: added some $ 442 billion to NVIDIA's overall market cap. For
[0:38] Speaker 2: a closer look at trading in the Asia-Pacific, I'm joined
[0:40] Speaker 2: by Sunny Bangya. Sunny is in our studios in Sydney.
[0:45] Speaker 2: Thank you so much for being here. What are you
[0:48] Speaker 2: observing right now when it comes to chip stocks, particularly
[0:51] Speaker 2: in South Korea? I know that the NVIDIA news broke
[0:54] Speaker 2: after the bell in the US on Wednesday. So Asia
[0:57] Speaker 2: had a chance to respond in the Thursday session. But
[1:00] Speaker 2: I'm seeing kind of a lackluster tone right now when
[1:03] Speaker 2: it comes to the chip stocks in the APAC region.
[1:08] Speaker 3: That's correct. The NVIDIA results were quite spectacular, particularly the
[1:12] Speaker 3: forward guidance that the CFO gave on the earnings call.
[1:17] Speaker 3: It's very unlike NVIDIA, but also just unlike any semiconductor
[1:21] Speaker 3: company to give forward guidance. But the guidance was as
[1:24] Speaker 3: much for investors as it was for the supply chain
[1:27] Speaker 3: in Asia. It was a discussion, I guess, to say, well,
[1:31] Speaker 3: there's revenue being missed, not just by NVIDIA, but also
[1:34] Speaker 3: its Asian supply chain business partners, such as SK Hynix, TSMC,
[1:40] Speaker 3: and Samsung Electronics. So whilst the stocks did respond well yesterday,
[1:45] Speaker 3: they did fade into the afternoon, and then the momentum
[1:48] Speaker 3: hasn't really carried on today. I guess it's sort of
[1:52] Speaker 3: opens up more questions. Will the Asian supply chain respond
[1:56] Speaker 3: and increase CapEx? Because it's obviously lost revenue for everyone
[2:00] Speaker 3: in this space.
[2:01] Speaker 2: So I was struck by news today that SK Hynix
[2:03] Speaker 2: is looking at ways to deepen its cooperation with the
[2:07] Speaker 2: Japanese flash memory maker Kyokusa Holdings. Now, I know that
[2:11] Speaker 2: SK Hynix already has a significant indirect state in Kyokusa.
[2:17] Speaker 2: Can you give me a sense of what the strategy
[2:19] Speaker 2: here is? What may be at play?
[2:22] Speaker 3: That's a very interesting observation because a lot of what
[2:26] Speaker 3: we're heading down in terms of the roadmap for a
[2:28] Speaker 3: lot of these memory companies is increasing amount of co-design
[2:34] Speaker 3: with the partners. So you've seen a lot of co-design
[2:38] Speaker 3: between NVIDIA and its partners in terms of HBM and
[2:43] Speaker 3: stacking and ensuring where memory is placed relative to chip.
[2:47] Speaker 3: But also it's important where NAND is placed relative to
[2:50] Speaker 3: GPU and relative to DRAM And so the partnership probably
[2:54] Speaker 3: indicates that there needs to be more of a code
[2:57] Speaker 3: design roadmap that both companies have to embark on going forward.
[3:03] Speaker 3: And obviously, this is an important way to improve efficiency
[3:08] Speaker 3: for the chip and in terms of improving efficiency for
[3:11] Speaker 3: memory makers so that memory costs can be kept under
[3:15] Speaker 3: relative control. But also, it's important that the Western players
[3:20] Speaker 3: stay ahead of the game Because in China, you've got
[3:23] Speaker 3: YMTC and you've got CXMT also looking to move into
[3:28] Speaker 3: HBM memory as well.
[3:30] Speaker 2: So I'm glad that you mentioned a company like CXMT.
[3:34] Speaker 2: To what extent will they be able to compete with
[3:37] Speaker 2: a company like SK Hynix right now?
[3:40] Speaker 3: Yeah, I mean, this is the big question for the
[3:43] Speaker 3: memory market, because it is increasingly an emerging player on
[3:49] Speaker 3: the scene. And They've had quite significant success in mobile
[3:55] Speaker 3: DRAM and really using now this current tight market in DRAM,
[4:01] Speaker 3: which is leading to great profits across the whole space,
[4:05] Speaker 3: but it's also leading to very high profits for CXMT.
[4:09] Speaker 3: And those profits, we will find out on the earnings
[4:12] Speaker 3: call this evening, are they now looking to expand capacity
[4:15] Speaker 3: in HBM? And it's inevitable that they try because this
[4:19] Speaker 3: is obviously the big bottleneck for China, getting HBM3 and
[4:24] Speaker 3: moving up the DRAM stack. So I think, you know,
[4:30] Speaker 3: the important thing to watch is that there is a
[4:33] Speaker 3: lot of effort by the Chinese government to support this sector.
[4:38] Speaker 3: A lot of the big Chinese tech stocks have all
[4:40] Speaker 3: invested in a mutual fund that will allow for investments
[4:44] Speaker 3: in this space. So, I mean, there is a big
[4:47] Speaker 3: sovereign initiative to push CXMT into HBM and compete against
[4:53] Speaker 3: the Western players.
[4:54] Speaker 2: So, what is your sense of the degree to which
[4:57] Speaker 2: Western players will need to expand production capacity? And if
[5:01] Speaker 2: that is the case, how is that going to be funded?
[5:05] Speaker 3: Yeah, that's, look, I mean, if we just take NVIDIA's
[5:08] Speaker 3: forecast of 70% and then you know, look at what they,
[5:12] Speaker 3: you know, are arguing they could do without the supply
[5:15] Speaker 3: chain constraints, which isn't, you know, which is 100% growth
[5:19] Speaker 3: versus a 70%, that sort of amounts to about 120
[5:24] Speaker 3: billion US dollars of loss revenue for NVIDIA. So when
[5:28] Speaker 3: you sort of take that through, really what we're saying
[5:31] Speaker 3: is there's not enough capacity in wafers at TSMC, There's
[5:36] Speaker 3: not enough capacity with the memory makers, the three large
[5:39] Speaker 3: memory makers. So look, the interesting thing is that the
[5:44] Speaker 3: capex to revenue at a lot of these memory makers
[5:49] Speaker 3: and TSMCs has actually been falling. So there is a
[5:52] Speaker 3: lot of scope to rise. These companies are producing records
[5:55] Speaker 3: amount of free cash flow. The memory makers' cumulative leave
[5:58] Speaker 3: will nearly approach a trillion dollars of free cash flow. Now,
[6:02] Speaker 3: they are committing that to buybacks, which makes total sense.
[6:05] Speaker 3: They need to support their share prices. But also, there's
[6:08] Speaker 3: a lot of free cash flow there to redirect to CapEx.
[6:12] Speaker 3: But these things take time. And, you know, these, you know,
[6:14] Speaker 3: clean rooms take one to two years to start. So
[6:17] Speaker 3: I think it's, you know, TSMC and the memory makers
[6:20] Speaker 3: really are probably going to work closely with NVIDIA and
[6:25] Speaker 3: supply chain. And, you know, in the results, NVIDIA has
[6:28] Speaker 3: made very large pre-commitments to the supply chain, over $ 169
[6:34] Speaker 3: billion just for the quarter. So that's an important signal
[6:39] Speaker 3: being sent to the supply chain in Asia that NVIDIA
[6:41] Speaker 3: is opening up its wallet and using its balance sheet
[6:45] Speaker 3: to encourage these companies to expand capacity.
[6:47] Speaker 2: Sonny, I'm curious about the adoption of AI across the Asia-Pacific.
[6:52] Speaker 2: We know what's been happening in the States between OpenAI
[6:55] Speaker 2: and Anthropic, two of the leading names. We have seen
[6:58] Speaker 2: the situation on the mainland in China. Deep Seek, obviously,
[7:01] Speaker 2: was the seminal moment. But I'm curious about how AI
[7:05] Speaker 2: is being adopted in jurisdictions like Japan, South Korea, Taiwan.
[7:11] Speaker 2: Can you shed some light?
[7:14] Speaker 3: Of course. I mean, this part of the world has,
[7:18] Speaker 3: through legacy, when we look at different technology cycles, was
[7:22] Speaker 3: a very fast adopter of the Internet boom. In many
[7:26] Speaker 3: of these markets, you know, payments is all digital. They've
[7:31] Speaker 3: already bypassing the rails. So this technology is essentially getting
[7:40] Speaker 3: backboned by the existing infrastructure. And so the adoption is
[7:45] Speaker 3: definitely at a consumer level very high. And there's a
[7:49] Speaker 3: lot of interest to test this out. it's where it's
[7:53] Speaker 3: probably lagging is at the enterprise level. And, and, and
[7:56] Speaker 3: I don't think that's going to be the case for forever.
[7:59] Speaker 3: I think just, just naturally the adoption of Claude cowork and,
[8:06] Speaker 3: and Codex have been very us, you know, let's call
[8:10] Speaker 3: it Western hemisphere at the moment, heavy. And, and as the,
[8:14] Speaker 3: as those products have been very successful, it's, it's moved
[8:18] Speaker 3: in through the enterprise enterprises of a lot of us
[8:21] Speaker 3: companies and, That is something I think that's going to
[8:24] Speaker 3: happen in Asia as well. Enterprise adoption will rise. And
[8:28] Speaker 3: that's an Asian perspective ex-China. I think what's happening in
[8:32] Speaker 3: China is quite different. In China, there's obviously, it's almost
[8:37] Speaker 3: like a different universe. You've got this open source ecosystem. Alibaba,
[8:44] Speaker 3: Tencent are really pushing the adoption hard in terms of
[8:49] Speaker 3: their user base, both consumer and enterprise.
[8:52] Speaker 1: Losses are rising.
[8:53] Speaker 3: When we saw in Alibaba's results last week, losses for
[8:56] Speaker 3: Quen have risen, and that's probably because they're subsidizing adoption.
[9:00] Speaker 3: So I think what we'll see in China is that
[9:02] Speaker 3: adoption really now takes off. Now, you've got some really
[9:05] Speaker 3: high-quality models at that mid- to low-end tier in China.
[9:11] Speaker 3: We will see that the next few quarters will be
[9:13] Speaker 3: interesting to see. Do the losses rise, or does the
[9:16] Speaker 3: Chinese ecosystem move to make profits? I think China, I mean,
[9:20] Speaker 3: as much as compute is constrained In the rest of
[9:22] Speaker 3: the world, computers absolutely, totally constrain inside China as well.
[9:27] Speaker 3: So the Chinese model makers need to raise prices and
[9:30] Speaker 3: make revenue a bit like their U.S. counterparts.
[9:32] Speaker 2: Sonny, great insights. Thank you so very much, Bloomberg. Sonny Bangya,
[9:36] Speaker 2: he covers Asian equities for us here. Sonny, joining from
[9:40] Speaker 2: our studios in Sydney on the Daybreak Asia podcast. Welcome
[9:51] Speaker 2: back to the Daybreak Asia podcast. I'm Doug Krisner. Markets
[9:54] Speaker 2: will soon focus on the speech from Fed Chair Kevin
[9:57] Speaker 2: Walsh on Friday morning at the Jackson Hole Symposium. The
[10:00] Speaker 2: question is whether Walsh will provide clues on how the
[10:04] Speaker 2: Fed intends to tackle inflation. Now, a lack of clarity
[10:08] Speaker 2: may add a bit of volatility to longer maturity treasuries.
[10:11] Speaker 2: That's where we begin our conversation with Betsy Stevenson. Betsy
[10:15] Speaker 2: is former chief economist at the U.S. Department of Labor
[10:18] Speaker 2: and She spoke with Bloomberg TV host Paul Allen.
[10:21] Speaker 4: Betsy, thanks so much for your time today. As I
[10:24] Speaker 4: was mentioning there, Treasury futures really not pricing in a
[10:27] Speaker 4: lot of chance of a market moving words from Kevin
[10:31] Speaker 4: Walsh in his Jackson Hole speech. What are you expecting
[10:34] Speaker 4: to hear?
[10:37] Speaker 1: Well, there is a lot of pressure on a first
[10:39] Speaker 1: debut speech at Jackson Hole. What is he going to say?
[10:44] Speaker 1: But honestly, I don't think we're going to hear a lot.
[10:47] Speaker 1: That's my guess. We'll see if I'm wrong. But, you know,
[10:51] Speaker 1: he has definitely taken the approach that— You know, if
[10:55] Speaker 1: he tells too much, he just ends up potentially bringing
[10:59] Speaker 1: more political heat on him and on the Fed. And
[11:04] Speaker 1: so he's really taking this sort of wonky approach. But
[11:08] Speaker 1: he also doesn't really talk about politics. He doesn't really
[11:12] Speaker 1: talk about Fed policy in quite the same way that,
[11:16] Speaker 1: you know, we have heard other central bank presidents talk about.
[11:20] Speaker 1: And so I think people are waiting to see if
[11:22] Speaker 1: they get a little bit more out of, like, what's
[11:25] Speaker 1: his approach, which is different from his forecast. He's been
[11:28] Speaker 1: very careful to say, I don't want to tell you
[11:29] Speaker 1: my forecast because I don't want to bias you. Or
[11:32] Speaker 1: maybe he doesn't want to upset President Trump. But he
[11:36] Speaker 1: is also not really telling us, like, how does he
[11:38] Speaker 1: think the economy works? And where does he think things
[11:40] Speaker 1: are going? And what would he do? And how does
[11:42] Speaker 1: he balance these competing risks? And I think people are
[11:47] Speaker 1: going to be parsing it to see if they get
[11:49] Speaker 1: a better understanding of those kinds of attitudes from him.
[11:54] Speaker 4: Do you feel like there's any risks with this sort
[11:56] Speaker 4: of guidance light approach? Or, you know, to Kevin Walsh's point,
[12:00] Speaker 4: is it just better to step back and let the
[12:01] Speaker 4: markets function, let them do their job?
[12:07] Speaker 1: Well, you know, their job is to react to information.
[12:10] Speaker 1: And the Fed, actually, they have some information, and they
[12:14] Speaker 1: should be sharing that information with the markets so that
[12:17] Speaker 1: they can absorb that information quickly. So I don't know
[12:20] Speaker 1: that this idea of the Fed knows things, but they're
[12:23] Speaker 1: not going to tell you because they want you to
[12:24] Speaker 1: go discover it for yourself isn't necessarily the best thing.
[12:27] Speaker 1: You know, there's sort of two ways to think about
[12:30] Speaker 1: forward guidance. One is like, I'm going to tell you
[12:33] Speaker 1: what I'm going to do. And I think... You know,
[12:35] Speaker 1: that doesn't make sense from anybody's perspective right now, because honestly,
[12:38] Speaker 1: it's the decisions are so data dependent. Nobody knows what
[12:41] Speaker 1: they're going to do. So they don't want to give
[12:43] Speaker 1: make any promises. And I think Chair Powell had moved
[12:46] Speaker 1: away from promises. But there's a different aspect of forward guidance,
[12:49] Speaker 1: which is this is what I think I'm most likely
[12:51] Speaker 1: to have to do based on what I'm hearing from
[12:53] Speaker 1: other people. Or, you know, this is what my expectation is.
[12:58] Speaker 1: And then there's something even more narrower than that, which
[13:01] Speaker 1: is this is what we're hearing when we look out
[13:04] Speaker 1: and talk to people in the community. And I think
[13:06] Speaker 1: he has been really— I' m going to keep all the cards
[13:08] Speaker 1: close to my chest— And I think people want to
[13:11] Speaker 1: see him move those cards away just a tiny bit,
[13:13] Speaker 1: which isn't necessarily the same thing as giving forward guidance.
[13:17] Speaker 1: Just how is he thinking about the fact that, you know,
[13:20] Speaker 1: the economy is really strong. GDP in the third quarter
[13:23] Speaker 1: looks like it's going to come in really strong.
[13:25] Speaker 2: But.
[13:26] Speaker 1: It seems to be doing it without a lot of workers,
[13:28] Speaker 1: so we don't see strong employment. And yet we also
[13:32] Speaker 1: see inflation that is really persistently sticky above their target.
[13:37] Speaker 1: How are they putting those things together? That's what we
[13:39] Speaker 1: all want to know.
[13:42] Speaker 4: Yeah, you mentioned jobs there, and I'd like to get
[13:44] Speaker 4: your view as a former economist for the U.S. Labor Department.
[13:50] Speaker 4: We do have jobless claims near an historic low. Pricing
[13:53] Speaker 4: pressures remain elevated, as you mentioned. How durable would the
[13:57] Speaker 4: jobs market be if the Fed did decide to tighten it?
[14:03] Speaker 1: You know, I think the job market, I will say,
[14:05] Speaker 1: is very difficult for anybody to analyze well right now
[14:10] Speaker 1: because we have had big changes in our immigrant population,
[14:15] Speaker 1: both how we treat immigrants who are here and also
[14:17] Speaker 1: how we attract immigrants. Immigrants to the United States. And
[14:20] Speaker 1: so that's changed the labor market in ways that make
[14:23] Speaker 1: it harder to parse the data. That said, as you
[14:26] Speaker 1: pointed out, everything looks pretty good in the labor market.
[14:30] Speaker 1: Unemployment remains reasonably low, even if, you know, it's it's
[14:34] Speaker 1: sort of pointed upwards over the last six months. Still
[14:38] Speaker 1: historic lows. Unemployment insurance claims are at historic lows, although
[14:42] Speaker 1: be careful there because one of the things we're seeing
[14:45] Speaker 1: is the people who are unemployed are staying unemployed for
[14:48] Speaker 1: a really long time, and so they're not eligible for
[14:51] Speaker 1: unemployment insurance. So we could have unemployment rising. with unemployment
[14:56] Speaker 1: insurance claims staying low. That's what I mean when it's,
[14:59] Speaker 1: you got to parse this very complicated data. But what
[15:02] Speaker 1: I will say is when we look at those estimates
[15:05] Speaker 1: for third quarter GDP, and when we look at consumer spending,
[15:08] Speaker 1: it's strong enough that I think that the economy can
[15:12] Speaker 1: tolerate coming a little bit harder after inflation. So I
[15:17] Speaker 1: know that they're a little anxious to do that. And
[15:20] Speaker 1: I don't think Anyone wants to raise rates right before
[15:23] Speaker 1: an election. And I think that was true long before
[15:26] Speaker 1: this president came into office.
[15:29] Speaker 4: No, very politically charged time to be acting. Betsy, before
[15:33] Speaker 4: we let you go, I'd just like to get your
[15:34] Speaker 4: view on the persistent debt and deficit issue in the
[15:38] Speaker 4: United States as well. The bond market's sending pretty clear
[15:40] Speaker 4: signals that it would like to see something get done.
[15:43] Speaker 4: If nothing gets done, how do you see the Fed reacting?
[15:49] Speaker 1: Well, I mean, as you said, the challenge is everybody
[15:53] Speaker 1: wants to borrow. And when everybody wants to borrow, the
[15:57] Speaker 1: money is going to go to who's willing to pay
[15:59] Speaker 1: the most. And, you know, the United States has been
[16:03] Speaker 1: in a situation where, you know, Government spending has stayed
[16:08] Speaker 1: persistently two, three, four, sometimes five percentage points above government
[16:14] Speaker 1: revenue in good times and in bad times now for
[16:17] Speaker 1: quite some time. And that has got to be fixed.
[16:20] Speaker 1: That can't be an ongoing equilibrium because it's too big
[16:25] Speaker 1: of a gap. And that is, I think, the bond
[16:28] Speaker 1: market saying you need to get your house in order.
[16:32] Speaker 1: And I think the challenge is that, you know, there's
[16:35] Speaker 1: not a lot of spending people want cut. We don't
[16:37] Speaker 1: want to see things like Social Security or Medicare, which
[16:41] Speaker 1: are big ticket items, getting cut. And really the only
[16:44] Speaker 1: solution is going to be to do more to raise
[16:47] Speaker 1: some revenue. But nobody likes those solutions either. So I think...
[16:54] Speaker 1: Your guess is as good as mine as what's going
[16:56] Speaker 1: to finally cause push coming to shove and some decision
[17:00] Speaker 1: being made about how to address this problem. And the
[17:03] Speaker 1: bond market's certainly trying to be one of those pushes.
[17:07] Speaker 2: That was Betsy Stevenson, former chief economist at the U.S.
[17:10] Speaker 2: Department of Labor, speaking with Bloomberg TV host Paul Allen,
[17:14] Speaker 2: bringing you their conversation here on the Daybreak Asia podcast.
[17:19] Speaker 2: Thanks for listening to today's episode of the Bloomberg Daybreak
[17:23] Speaker 2: Asia Edition podcast. Each weekday, we look at the story
[17:26] Speaker 2: shaping markets, finance, and geopolitics in the Asia Pacific. You
[17:31] Speaker 2: can find us on Apple, Spotify, the Bloomberg Podcast YouTube channel,
[17:35] Speaker 2: or anywhere else you listen. Join us again tomorrow for
[17:38] Speaker 2: insight on the market moves from Hong Kong to Singapore
[17:42] Speaker 2: and Australia. I'm Doug Krisner, and this is Bloomberg.

Shows are listed from Apple Podcasts' charts and directory, and Podcast Index where it is used. Every show and episode belongs to its publisher and plays from the publisher's own feed; this site hosts none of them.