Dear valued client,
Markets finished in positive territory this week, catalyzed by Nvidia’s earnings. The chipmaker’s highly anticipated earnings report exceeded expectations, showcasing the impressive growth of the AI revolution. With quarterly sales soaring to $22.1 billion, a remarkable 265% increase from the previous year, and net profit reaching $12.3 billion, Nvidia’s performance solidified its position as a leading player in the tech industry. CEO Jensen Huang emphasized the global surge in AI demand, underscoring Nvidia’s role in driving this trend. Goldman Sachs calls it “the most important stock on planet Earth.” However, challenges such as US-China tensions and emerging competition pose potential threats to its future growth. Despite these hurdles, Nvidia’s stellar performance and market influence remain unparalleled, making it a standout entity in the tech landscape.
Canadian inflation data indicates a notable decline in price growth, coming in at 2.9% for January (compared to 3.4% in December and 3.1% in November), within the Bank of Canada’s target range. Despite this positive trend, grocery prices remain slightly elevated at 3.4%, while rent continues to increase. However, Statistics Canada highlights significant price reductions in airfare (-14.3%), contributing to the overall decrease in inflation. Declines in natural gas and oil prices further support this downward trajectory.
Putin made headlines this week, not just on account of the second anniversary of his invasion of Ukraine, but also because of the death of his political rival. Alexei Navalny was a prominent Russian opposition leader and anti-corruption activist who died while serving a prison sentence in Russia. The official cause of death reported by Russian authorities was a heart attack. However, Navalny’s supporters and international observers raised concerns about the circumstances surrounding his death, suspecting foul play. He gained widespread recognition for his investigations into corruption among Russia’s political elite and for his vocal criticism of President Vladimir Putin and the ruling United Russia party. Yulia Navalnaya, widow of Alexei Navalny, pledged to uphold her late husband’s mission in a social media video following his death. In the video, she emphasized their vision for a liberated Russia. She called upon supporters to unite in their indignation towards those who cut short their aspirations. In addition to facing obstacles, including denied access to Navalny’s body by morgue officials and the prospect of waiting another two weeks for its return, Ms. Navalnaya remains steadfast in her accusation that Vladimir Putin played a role in her husband’s untimely death.
“There are three constants in life… change, choice, and principles.” – Stephen Covey
Have a terrific weekend,
PW
