JPMorgan Sees a Hidden Surge Brewing

Welcome to the US Crypto News Morning Briefing—your essential rundown of the most important developments in crypto for the day ahead.

Grab a coffee and settle in because markets are moving, and not in small ways. What started as another busy week of earnings and economic data has quickly changed into something more significant. Somewhere between Nvidia’s eye-popping numbers and JPMorgan’s latest call, traders are suddenly talking about an “everything rally,” and even Bitcoin miners are waking up to the buzz.

Crypto News of the Day: JPMorgan Predicts ‘Everything Rally’ as Nvidia Posts $57 Billion Q3 Revenue

JPMorgan’s trading desk forecasts an “everything rally” after Nvidia exceeded expectations with $57 billion in quarterly revenue and a $65 billion guidance, triggering a 5% after-hours surge and adding over $200 billion to the chipmaker’s market value.

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Nvidia’s impressive earnings report bolstered belief in the AI investment cycle. Gains spread across chipmakers, and Bitcoin rose above $91,000, with risk appetite returning to markets after a multi-day slide.

Nvidia projected an even stronger fourth quarter, guiding revenue to $65 billion versus the $62 billion anticipated by analysts.

Nvidia’s upbeat report sparked gains in other chipmakers. AMD, Micron, Broadcom, and Intel all climbed in after-hours trading, reflecting optimism for the semiconductor sector.

The results reinforced investor confidence that AI infrastructure spending remains on track despite recent volatility.

JPMorgan and Goldman Sachs See Buying Opportunity

After the S&P 500 Index fell 3.4% over four days, JPMorgan’s trading desk issued a bullish note. Andrew Tyler reiterated a dip-buying stance, emphasizing stable fundamentals and stating the investment thesis is not reliant on Federal Reserve policy shifts.

The bank highlighted Nvidia earnings and the September nonfarm payrolls report as major catalysts for potential new market highs.

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Goldman Sachs mirrored JPMorgan’s optimism. Partner John Flood described the recent market drop as a “real buying opportunity” ahead of Nvidia’s earnings, anticipating a year-end rally.

The investment bank stated that hedge funds have de-risked, while discretionary investors remain underweight and are poised to deploy capital.

November has been the S&P 500’s weakest month since 2008, with a 3% decline month-to-date.

Bitcoin Mining Stocks Surge on AI Optimism

Bitcoin mining stocks like Cipher Mining, IREN, and Hut 8 leapt in pre-market trading after Nvidia’s strong guidance. The surge reflected growing acknowledgment of miners’ expanding role in AI infrastructure and high-performance computing.

Nonetheless, institutional investors, including Peter Thiel and SoftBank, have recently trimmed their holdings in Nvidia and major AI companies, signaling wariness over high valuations.

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A Bank of America survey revealed that 45% of fund managers see an AI bubble as the primary threat to markets. Global regulators, including the Bank of England and the IMF, warn of risks from potential AI and crypto bubbles.

Skeptics Question Nvidia’s Shareholder Value Creation

Amidst strong market enthusiasm, investor Michael Burry raised concerns regarding Nvidia’s stock-based compensation. Burry examined financial data since 2018, highlighting a gap between reported earnings and true value creation for shareholders.

Burry’s analysis suggests stock-based compensation has masked Nvidia’s real earnings strength. The company posted $205 billion in net income and $188 billion in free cash flow since 2018.

Despite this, its share count rose by 47 million, even after $112.5 billion in repurchases. The dynamic raises questions about whether headline numbers fully reflect value for shareholders.

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This debate captures ongoing tensions in market sentiment. While JPMorgan and Goldman Sachs highlight strong fundamentals and structural AI demand, skeptics point to valuation risks and possible headwinds.

As investors digest Nvidia’s results and changing economic data, the coming weeks will reveal whether the “everything rally” expectation comes true or volatility persists.

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Here’s a summary of more US crypto news to follow today:

Crypto Equities Pre-Market Overview