Nvidia launches US$500bn AI compute financing initiative

Market Commentary

South African Market Summary

South African equities ended Friday sharply higher, with the JSE All Share gaining 1.92% to 117,518.36 and the Top 40 advancing 2.18% to 109,593.01. The local market was closed on Monday for the Women’s Day public holiday. Investors now turn to manufacturing and second-quarter employment data today, followed by mining production figures on Thursday, for further indications of domestic economic momentum. South Africa’s net foreign reserves increased to US$71.76 billion in July from US$71.34 billion in June. Elsewhere, Premier Foods’ planned fruit-canning closure raised employment and agricultural supply-chain concerns, while the FSCA is investigating possible market manipulation involving small share trades used to influence larger contracts-for-difference positions.

European Market Summary

European equities were little changed on Monday, with the STOXX 600 holding near its record high at 660.45 as investors awaited eurozone employment and US inflation data. Energy shares led gains, rising 1.3% as oil prices advanced for a fourth consecutive session amid continued Middle East uncertainty. London markets eased after last week’s gains, while Imperial Brands declined following reports of planned job cuts. Attention is also turning to Thursday’s UK GDP release, with the economy expected to have expanded 1.1% year on year in the second quarter. Labour-market conditions showed tentative improvement in July, as permanent job placements stabilised and starting salaries increased at a faster pace.

US Market Summary

US equities ended lower on Monday as renewed uncertainty over reopening the Strait of Hormuz weighed on sentiment and semiconductor shares came under pressure. The S&P 500 and Nasdaq retreated from recent highs after President Donald Trump demanded compensation from Iran, complicating prospects for a broader agreement. Intel fell 4.1% after announcing plans to raise US$15 billion through a share sale, adding to weakness across chipmakers. Investors also reassessed the Federal Reserve outlook after July payrolls unexpectedly declined by 23,000, reducing expectations for a September rate increase to around 52%. Earnings remain supportive, with roughly 85% of reporting S&P 500 companies beating estimates, while Cisco and Applied Materials report later this week.

Asian Market Summary

Asian equities traded cautiously on Tuesday as investors remained focused on uncertainty surrounding the global inflation outlook. Singapore sharply upgraded its 2026 growth forecast to 4.5%–5.5%, from 2%–4%, after stronger-than-expected first-half performance and continued support from AI-related industries and exports. The government said the economic impact of the US-Iran conflict had been less severe than initially feared as inventory drawdowns and alternative energy sources limited the increase in global energy prices. Separately, Chinese robotics company Unitree said its US$900 million Shanghai initial public offering was more than 8,000 times oversubscribed by retail investors, underscoring intense demand for exposure to the country’s robotics and artificial-intelligence sector.

Commodity Market Summary

Gold advanced for a third consecutive session on Tuesday, reaching its highest level in more than two months as investors positioned ahead of US inflation data for further guidance on the interest-rate outlook. Oil prices steadied near one-week highs as fading prospects for a US-Iran agreement kept supply risks elevated. Brent and US crude had risen on Monday after President Donald Trump demanded compensation from Iran, complicating efforts to secure a peace deal and reopen the Strait of Hormuz. Trump later said the US had control of the waterway and had cleared Iranian mines. Supply concerns were reinforced after Saudi Aramco postponed the restart of its 400,000-barrel-per-day Jazan refinery to 30 August following Houthi attacks.

Currency Market Summary

The South African rand weakened modestly against the US dollar on Monday, while sterling was little changed against both the dollar and euro as investors awaited UK growth data and developments surrounding the Strait of Hormuz. The yen steadied at around ¥158.93 per dollar after weakening sharply in the previous session, having surrendered almost half of the gains triggered by recent coordinated US-Japan intervention. The Australian dollar traded near an eight-week high ahead of the Reserve Bank of Australia’s policy decision. The US dollar was broadly steady as higher oil prices supported demand amid fading hopes for a US-Iran agreement. Attention now turns to Wednesday’s US CPI report, followed by producer prices and retail sales later this week.

Domestic Company News 

Thungela Resources Limited (TGA) -1.55%
Thungela Resources expects earnings per share of R10.75–R11.10 for the six months ended June 2026, representing an increase of 457%–475% from R1.93 a year earlier. Attributable earnings are forecast between R1.3 billion and R1.4 billion. Headline earnings per share are expected to rise 140%–158% to R4.60–R4.95, with headline earnings of R580 million–R630 million. Reported earnings include a R1.0 billion non-cash profit from the sale of the Kleinkopje mining right, which is excluded from headline earnings. Thungela said performance continued to reflect volatile market conditions, while several areas of judgement remain under final review. Interim results are scheduled for release on 17 August 2026.

Spur Corporation Limited (SUR) +0.00%
Spur Corporation expects reported earnings to decline after recognising a R129.5 million provision relating to its arbitration dispute with GPS Food Group, including R74.6 million in damages, interest and estimated legal costs. EPS is expected to fall 31%–41% to 199.13–232.88 cents, while HEPS should decline 34%–43% to 193.73–224.32 cents. Excluding the non-recurring provision, adjusted HEPS is forecast to increase 5%–13% to 356.87–384.06 cents, reflecting stronger underlying trading performance. Spur intends to appeal the arbitration award, with a hearing scheduled for February 2027. Management said existing cash reserves are sufficient to cover the provision, leaving liquidity and dividend declarations unaffected. Annual results are due on 20 August 2026.

Eastern Platinum Limited (EPS) -43.20%
Eastern Platinum will appoint chairman Changyu Liu as interim President and Chief Executive Officer from 13 August 2026, succeeding Wanjin Yang. The company said operations will continue in the ordinary course and are not expected to be affected by the leadership change, adding that the transition is unrelated to operational performance or financial reporting. Eastplats has begun a search for a permanent President and CEO and will provide a further update once the process advances. The company owns PGM and chrome assets across South Africa’s Bushveld Complex, including the Crocodile River Mine, where it currently mines and processes ore from the Zandfontein underground section to produce PGM and chrome concentrates.

Global Company News

Nvidia Corporation (NVDA) -2.86%
Nvidia has partnered with six major financial institutions to establish compute-financing platforms targeting more than US$500 billion in third-party capital for artificial-intelligence infrastructure. The company signed agreements with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR, while CEO Jensen Huang said Nvidia could backstop up to US$125 billion, or 25% of potential transactions. The initiative is designed to expand access to Nvidia-based computing capacity for AI developers, enterprises, governments and cloud providers, while creating long-duration investment opportunities for institutional capital. Nvidia said the platforms should provide dedicated pools of funding at attractive rates, although individual commitments, detailed financial terms and the timetable for deploying the capital were not disclosed.

Intel Corporation (INTC) -4.06%
Intel plans to raise US$15 billion through a share sale to help fund the expansion of its contract chip-manufacturing business as it invests heavily in new facilities and advanced packaging capacity. The group is seeking to challenge foundry leader TSMC while responding to stronger demand for processors linked to artificial-intelligence workloads. Bloomberg reported that the offering could increase to about US$20 billion, with investor demand exceeding US$100 billion, although Reuters could not independently verify those figures. Intel raised its 2026 capital-expenditure forecast to US$20 billion in July and recently committed €5 billion to expand its Irish manufacturing hub. The company will also give underwriters an option to purchase up to US$2.25 billion in additional shares.

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