DeepSeek Bursts Nvidia's Bubble
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Seven months ago, Matt Levine said 'people who got good at building computers that can pick stocks are pivoting to processing natural language.' The pivot is now complete, and Nvidia is $589 billion lighter today because of it:
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Yahoo
43 minutes ago
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Watch These AMD Price Levels as Stock Jumps to Highest Level Since January
Advanced Micro Devices shares closed at their highest level since January on Monday, lifted by optimism that trade discussions between the U.S. and China could lead to reduced export curbs. After breaking out from a descending broadening formation last month, AMD shares have traded mostly sideways just below the closely watched 200-day moving average. Investors should monitor major overhead areas on AMD's chart around $123, $145 and $175, while also watching a key support level near $ Micro Devices (AMD) shares will likely remain in focus after hitting their highest level since January on Monday, lifted by optimism that trade discussions between the U.S. and China could lead to reduced export curbs. Chipmakers rallied after White House National Economic Council Director Kevin Hassett said on CNBC early Monday that officials from Washington and Beijing intended to discuss the release of rare earth minerals to the U.S. and the expansion of Chinese access to American-made semiconductors during talks between the two countries taking place in London this week. In April, AMD cautioned its results would be affected by charges of roughly $800 million related to tightening restrictions on sales of its chips to China, while rival AI behemoth (NVDIA) warned it would take a potential $5.5 billion charge related to limits on exports of its H20 chip. AMD shares gained nearly 5% on Monday to close at around $122. The stock has risen nearly 60% from its early April-low, putting it back to where it started 2025, as investors assess whether the company can make further inroads into the booming AI chip market. Investors will learn more about AMD's plans for artificial intelligence at the company's "Advancing AI" event on Thursday, which features a keynote address from CEO Lisa Su. Below, we take a closer look at AMD's chart and use technical analysis to identify major price levels that investors will likely be monitoring. After breaking out from a descending broadening formation last month, AMD shares have traded mostly sideways just below the closely watched 200-day moving average (MA). More recently, the stock's price has nudged toward the May high, a move that has coincided with the relative strength index indicating strengthening price momentum. It's also worth pointing out that the shares registered their highest trading volume in nearly a month on Monday, indicating growing interest in the chipmaker's stock. Let's identify three major overhead areas on AMD's chart to monitor if the shares continue to trend higher and also locate a key support level worth watching during possible retracements. The first overhead area to monitor sits around $123. This area may provide resistance near the May swing high, which also closely aligns with last year's prominent early-August sell-off swing low. A decisive close above the 200-day MA could spark a rally toward $145. The shares may run into selling pressure in this location near a trendline that connects a range of corresponding trading activity on the chart between April and December last year. Further buying could see the stock's price test higher overhead resistance around $175. Investors who have accumulated shares at lower levels may decide to lock in profits in this region near notable peaks that developed on the chart in May and October 2024. During retracements in the stock, investors should keep a close eye on the $108 level. This area on the chart would likely attract buying interest near last month's pullback low and the stock's early-February trough. The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info. As of the date this article was written, the author does not own any of the above securities. Read the original article on Investopedia
Business Insider
an hour ago
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‘Time to Take a Pause,' Says Investor About Nvidia Stock
Nvidia (NASDAQ:NVDA) stock has roared back to life over the past two months, following a decidedly uncharacteristic drop earlier in the year. Shares have now climbed roughly 50% since hitting a post-Liberation Day low, driven by easing trade tensions, strong AI demand, and another impressive earnings report last month. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter That rebound comes despite several headwinds earlier in the year. The U.S.-China trade spat and fears of a broader pullback in AI-related capital expenditures had weighed heavily on investor sentiment. In particular, a targeted export restriction from the Trump administration on Nvidia's H20 GPUs resulted in a $4.5 billion hit during the last quarter. Still, it is hard to argue with Nvidia's stellar performance during Q1 Fiscal 2026, during which the company delivered record revenues of $44 billion, a year-over-year surge of 69%. The all-important data center segment grew at an even faster clip of 73%. While acknowledging the healthy earnings and NVDA's recovering share price, investor Johnny Zhang is not convinced that all the geopolitical hiccups are in the rearview mirror. 'I believe the 2H 2025 could bring more uncertainty, as the lagging effects of Trump's tariff policy and any setbacks on potential deals with China could create new volatility in the market,' explains the investor. Those concerns are not just theoretical. Zhang points to the unresolved H20 issue, stemming from U.S. export restrictions, as a key example. Nvidia is now expected to take an $8 billion inventory write-off as a result, and its margins are likely to decline further on a sequential basis. More broadly, the company has acknowledged it could forfeit access to a $50 billion total addressable market in China if those restrictions remain in place. Moreover, while Zhang believes that Nvidia will be able to navigate any economic slowdowns, the investor thinks there is a high possibility that the impact of the Trump tariffs will be felt during the latter part of the year. Against that backdrop, Zhang emphasizes that the recent rally in Nvidia's stock may not be sustainable without renewed visibility. He notes that further upside will hinge largely on AI spending trends in 2026, an outlook he calls 'highly uncertain.' In short, while Nvidia's fundamentals remain strong, its near-term growth path is anything but guaranteed. 'Chasing the stock's rally from here seems less compelling to me,' concludes Zhang, who gives NVDA a Hold (i.e. Neutral) rating. (To watch Zhang's track record, click here) Wall Street has a decidedly rosier view of NVDA. With 35 Buy, 4 Hold, and 1 Sell recommendations, NVDA continues to enjoy a Strong Buy consensus rating. Its 12-month average price target of $172.36 implies an upside north of 20%. (See )
Bloomberg
an hour ago
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TSMC's May Sales Surge 39.6% on Resilient AI Demand
Taiwan Semiconductor Manufacturing Co., the main chipmaker for Nvidia Corp. and Apple Inc., reported a 39.6% jump in May revenue after companies stockpiled chips in response to mounting trade uncertainty. The Hsinchu, Taiwan-based company's revenue reached NT$320.5 billion ($10.7 billion). That compares with a 48% gain during April. Analysts on average expect a 39% increase in TSMC's second-quarter sales. While sales in May appeared to be relatively healthy, they dropped 8.3% from April.
