Devon Funds Morning Note - 20 November 2025

Friday 21st November 2025

Results are IN

Global

Nvidia’s highly anticipated results have been released at market close after gaining 2.9% in trading hours and influencing tech names to close higher as the tech heavyweights saw gains to finish the session. Indices held their breath as the S&P 500 added 0.4%, the Dow Jones gained 0.1%, while the Nasdaq pushed 0.6% higher.

At the bell, Nvidia reported blockbuster Q3 earnings, with revenue jumping 56% year-on-year to $54.9 billion and adjusted earnings per share (EPS) up 55%, fuelled by surging demand for its AI-focused data centre chips. The company’s data centre business was a standout, now contributing nearly 90% of total quarterly revenue, as tech giants continue aggressive spending on AI infrastructure and Nvidia’s newest Blackwell chip line ramps up deliveries. Forward guidance was equally strong, with Nvidia forecasting Q4 revenue of $62.2 billion, well ahead of analysts’ expectations, signalling persistent growth in AI compute demand across cloud, enterprise, and hyperscaler customers.

CEO Jensen Huang highlighted substantial long-term orders topping $500 billion and broadening partnerships (notably with Intel and OpenAI), reinforcing Nvidia’s position as the leading supplier for advanced AI applications. Even as concerns swirl around macro risks and potential sector overheating, the bullish forward guidance is reassuring that AI infrastructure spending remains strong and validates high sector valuations for now.

Overall, Nvidia’s results are a net positive for broader market sentiment and tech leadership, at least in the near term, but heightened volatility and cyclical concerns persist as investors digest the durability of the AI boom.

Elsewhere, Oil prices are down over 2% the after US government data revealed rising inventories of crude and refined products, reinforcing concerns about oversupply in the global market. Market sentiment was further weighed by an Axios report suggesting the US is quietly formulating a new strategy to end the Ukraine-Russia conflict, reportedly inspired by Trump’s Gaza peace push.

MP Materials has jumped 8.6% after news of a major joint venture deal with the US Department of Defence and Saudi Arabian Mining Company (Maaden) to build and operate a rare earth refinery in Saudi Arabia. Through this partnership, MP Materials and the US government will jointly hold a 49% stake in the facility, while Maaden will retain a majority interest.

UK and European markets finished mixed in the latest session: the FTSE 100 rose 0.5% Germany’s DAX edged up 0.1%, and France’s CAC 40 gained 0.2%, while the pan-European Stoxx 600 was flat, reflecting a cautious but stabilising tone in the region.

Things are heating up in Asia as China has reinstated its ban on imports of Japanese seafood mere weeks after lifting restrictions, escalating a diplomatic dispute with Tokyo that centres on remarks by Japan’s new Prime Minister Sanae Takaichi about possible Japanese involvement in a Taiwan conflict. The move came amid heightened warnings from Chinese officials, who formally notified Japan of “further severe countermeasures” if Takaichi refuses to retract her pro-Taiwan statements. The Nikkei 225 closed 0.3% lower, while the Shanghai Composite closed flat.

New Zealand

The Kiwi market finished flat in the latest session, inching lower by 0.1% as trading was subdued ahead of the cautious sentiment in global equities. Notable decliners on the day were Contact (-1.8%), Chorus (1.5%), and Mainfreight (1.3%), while gainers saw Sanford continue to rally on their results, adding 6.0%, AFT Pharmaceuticals gained 2.9%, and Napier Port Holdings increased 2.6% at close.

Napier Port Holdings (NPH) delivered a strong result with operating income reaching $64.2m, meeting expectations with steady volumes and ongoing capex projects putting the business on a stable footing. The company’s published tariff schedule and infrastructure levies point to further upside in FY26, as higher access charges could boost FY25 revenue by an estimated $11m. NPH will also increase the total annual dividend to 14.5 cents per share, up from 9 cents the year prior.

Kathmandu Brands (+5.5%) has gained momentum from its latest quarterly update, showing a solid turnaround in both sales and profitability with group sales up 7.9% year-on-year for the first quarter of FY26. Rip Curl’s direct-to-consumer same-store sales climbed 3% and overall sales rose 6.6%, driven partly by new store openings and a return of positive wholesale momentum, while Kathmandu’s sales jumped 13.9% amid a strong run-rate in recent months. Although both brands benefited from cycling softer results last year, the underlying trend is improving, with Kathmandu seeing double-digit sales and profit growth in the latest period.

Lastly, Radius Residential Care jumped 6.7% on its results, delivering a strong first-half FY26. The aged care support provider’s net profit after tax surged 221%, while revenue rose 17% to $111 million as high occupancy drove record performance, bolstered by improved bed mix, higher accommodation supplements, and the full integration of new acquisitions.

Australia

The Australian share market posted another decline, with the ASX 200 slipping 0.2%, following the continued sell-off as the index fell for the sixth day out of the last seven. Across the market, Banks led the declines while Materials showed strength in gold and rare earths names – Lynas Rare Earths and Iluka Resources both added 5.6% and 2.2% respectively.

Standout performer was agricultural chemical company, Nufarm, which rallied 10.8% on its FY25 update, while Droneshield shares tumbled 19.6% on the abrupt resignation of its US CEO Matt McCrann, raising concerns about leadership stability and future growth. In mergers and acquisitions news, Webjet Group jumped 16.6% after receiving a non-binding indicative offer (NBIO) from Helloworld at $0.92 per share, which already owns 17.27% of Webjet and has been granted due diligence, sparking speculation of a potential takeover.

Further to this, Webjet announced its first-half results with earlier guidance reflecting a year-on-year drop of 11% in earnings and a 4% decrease in total transaction value, largely due to increased technology costs and subdued domestic leisure travel demand. Despite these headwinds, the company maintained a strong balance sheet, holding $111.9 million in net cash. Strategically, management remains committed to a FY30 goal of $3.2 billion in total transaction volume, even as near-term performance is weighed by weaker brand sentiment following ACCC findings, actioning a $9m penalty on misleading statements.

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