CATL's 46% Rise in Hong Kong Sends Premium Over China to Record
CATL's shares have surged 46% in Hong Kong following a May debut. They are now 30% more expensive than those trading in Shenzhen after adjusting for currency differences. That's a rare markup, as the majority of the roughly 150 dual-listed companies suffer a discount in the city, partly due to a difference in taxes for mainland investors.
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Prediction: Nvidia's New China Deal Will Be a Game-Changer. Here's Why
Key Points While most of Nvidia's revenue hails from the U.S. and Europe, the Chinese market represents an estimated $50 billion opportunity. Recent changes to tariff policies and export controls have stifled Nvidia's potential in China throughout 2025. Nvidia and the U.S. government have formed a deal structure that helps pave the way for Nvidia to reclaim dominance in the key Asian market. 10 stocks we like better than Nvidia › Although it's only August, 2025 has already played out like a modern-day Greek tragedy for semiconductor powerhouse Nvidia (NASDAQ: NVDA). Its year has been marked by a litany of setbacks, comebacks, and everything in between. Earlier this year, more than $1 trillion of Nvidia's market value was wiped out. Yet today, the company boasts a market cap of $4.4 trillion -- reclaiming the crown as the most valuable company in the world. At the center of Nvidia's headaches in 2025 is China -- and no, not because of DeepSeek. The real culprit has been a wave of sweeping tariff policies and export controls that have curtailed Nvidia's influence in the Chinese AI market. Now, after months of negotiations with regulators in Washington, it appears that the tide may be turning. Nvidia could be on the precipice of reestablishing its presence in one of its most crucial Asian markets. Let's unpack the details of Nvidia's new deal structure in China and examine why it should be celebrated as a massive win for investors. How big an opportunity is China for Nvidia? According to accounting and consulting firm Deloitte, the global total addressable market (TAM) for semiconductors, as measured by sales, reached $627 billion in 2024. Deloitte projects that the market will grow at a compound annual growth rate (CAGR) of 19% over the coming decades -- ultimately reaching $2 trillion by 2040. Outside of the U.S., China remains one of the most important markets fueling demand for high-performance chipsets, particularly graphics processing units (GPUs). Nvidia CEO Jensen Huang has estimated that the AI opportunity in China alone could be worth as much as $50 billion. In 2024, Nvidia generated $130 billion in revenue, with China capturing roughly 13% of this sum. During the first quarter of 2025, Nvidia's $5.5 billion of China sales accounted for roughly 12.5% of total revenue. This leveling trend underscores how the current administration's policies toward China have started to constrain Nvidia's growth potential in the region. Why is Nvidia's new China deal so important? According to multiple news outlets, Nvidia has reached an agreement with Washington regarding its operation in China. Under the terms, Nvidia will pay 15% of its China-based sales to the U.S. government. In effect, the arrangement provides Nvidia with a pathway to penetrate this critical market through its tailored H20 chips. While this might initially resemble a tax, investors should avoid viewing it through that lens. First, the agreement applies to sales of Nvidia's AI chips rather than to profits, unlike traditional forms of taxation. Moreover, the 15% rate does not appear to be variable in structure like a royalty, which is typically tied to intellectual property (IP) and subject to fluctuate. While this deal might appear unusual at first glance, these structures are not without precedent in global business practices. For example, energy companies that extract natural resources or commodities in foreign countries often operate under similar revenue-sharing agreements with host nations in exchange for distribution rights. In my view, dedicating a modest share of sales to secure access to China represents a strategic trade-off. In the long run, it allows Nvidia to preserve its dominant position in one of the world's most important AI markets and prevents domestic rivals such as Huawei from eroding its competitive moat. Is Nvidia stock a buy? While Nvidia's forward price-to-earnings (P/E) ratio has been expanding recently, levels remain muted compared to peaks reached previously during the AI revolution. In my view, part of this multiple compression reflects concerns surrounding China -- perhaps overly so. Nvidia's new agreement in Washington offers the company renewed momentum, securing revenue in a critical market without forfeiting much in the way of profits -- even with the 15% remittance to the U.S. government. Over the long term, I see this arrangement as a strategic mechanism for Nvidia to strengthen its position overseas and deliver durable growth across the global AI infrastructure market. As these fundamentals take hold, I think the company's valuation multiples could expand further, potentially driving the stock to new highs sooner than many investors may be expecting. For that reason, I see Nvidia stock as a no-brainer opportunity to buy hand over fist right now and hold for years to come. Do the experts think Nvidia is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Nvidia make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,070% vs. just 184% for the S&P — that is beating the market by 885.55%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $668,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,106,071!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Adam Spatacco has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Prediction: Nvidia's New China Deal Will Be a Game-Changer. Here's Why was originally published by The Motley Fool Sign in to access your portfolio
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2 hours ago
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New Zealand's a2 Milk full-year profit rises 21%
(Reuters) -New Zealand's a2 Milk Co reported a 21.1% rise in its full-year profit on Monday, driven by strong performance of its infant milk formula in its top market China. The infant formula maker's net profit after tax attributable came in at NZ$202.9 million ($120.12 million) for the year ended June 30, up from NZ$167.6 million a year ago. That beat the Visible Alpha consensus of NZ$202.2 million. ($1 = 1.6892 New Zealand dollars)
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Meme Stocks Are Back in 2025: 3 Smart Ways To Profit Now
If you paid attention to the stock market back in 2021, you might remember the 'meme stock' craze that pushed otherwise struggling companies to record highs. Explore More: Find Out: You might also remember those price surges were almost entirely the result of social media buzz rather than business fundamentals. Investors poured into the stocks mainly because they liked turning conventional Wall Street wisdom inside out — not because they thought the companies made good investments. At the time, it seemed like a passing fad. Suddenly, however, meme stocks are a thing again. Shares of Opendoor, Kohl's, Wendy's, American Eagle Outfitters and other 'embattled' companies have all seen recent surges similar to four years ago, Business Insider reported. This trend is certainly good for the companies. But is it good for investors? Most financial advisors warn against jumping on meme stocks because they tend to sink as fast as they rise. However, you can earn a profit if you follow the right rules. Here are three ways you can potentially cash in on meme stocks in 2025. Review the Fundamentals This is something you should do with any stock — review its business fundamentals to make sure it is on solid financial footing. But it's especially important with meme stocks. TD Bank recommended looking over the company's quarterly and annual reports, as well as its analyst reports. Once you've done that, ask yourself the following questions: Are the company's revenues rising? Are its earnings increasing year after year? Does it have a product lineup that makes sense to you? Does its current stock price have room to grow based on consensus analyst price targets? If the answer is 'yes' to these questions, then you might be able to cash in on a meme stock. I Asked ChatGPT: Pick Recognizable Brands At the very least, a meme stock should have a brand that is recognizable to most investors, according to Fidelity. Meme stocks are volatile enough. What you don't want is a stock that regular investors have never heard of. '[This] could mean those investments share features of a certain kind of trend trading, creating the potential for them to get caught up in irregular trading activity,' Fidelity noted. 'Following the herd or any other impetus that is not grounded in a strong fundamental basis for investing your money is never prudent.' Think Short Term — Not Long Term As Forbes noted, a couple of the more famous meme stocks didn't have much staying power in terms of share price. GameStop's price surged above $480 per share during its meme stock peak in early 2021, but it soon crashed back to reality and currently trades near $22. Similarly, AMC Entertainment hit an all-time stock high of $625.48 on June 2, 2021 during its meme surge, according to MacroTrends. Today, you can buy the stock for about $3 a share. Investors who were savvy (or lucky) enough to sell those shares at the peak cashed in big profits, but you can't depend on that kind of luck. A good rule of thumb is to sell as soon as you have earned a decent profit on the stock — and that usually happens quickly. More From GOBankingRates New Law Could Make Electricity Bills Skyrocket in These 4 States I'm a Self-Made Millionaire: 6 Ways I Use ChatGPT To Make a Lot of Money 5 Strategies High-Net-Worth Families Use To Build Generational Wealth 6 Popular SUVs That Aren't Worth the Cost -- and 6 Affordable Alternatives This article originally appeared on Meme Stocks Are Back in 2025: 3 Smart Ways To Profit Now Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
