
Nvidia leaves China's 'DeepSeek ghost' behind with $1 trillion rally; reason includes Microsoft, Meta, Google and Amazon
Nvidia Corp shares have surged $1 trillion in two months, with investors betting on further gains as concerns fade and optimism grows, according to Bloomberg. Nvidia's recent earnings report addressed key worries, including U.S. restrictions on advanced
semiconductor sales to China
, AI spending outlooks, and Nvidia's ability to scale up its Blackwell chip supply. With this the stock left behind the huge dent that China's DeepSeek made in US stock market in January this year. DeepSeek set off a $969 billion bomb of value by the US technology stocks in the S&P 500. Nvidia was battered most in the carnage. Nvidia alone lost $596 billion in value, which is more than more than 485 S&P 500 stocks are individually worth.
Nvidia's nearly $600 billion drop in value in one day is reportedly more than 200% larger than the No. 2 hit: A $194 billion loss at Broadcom.
'Those questions have been answered in the positive for Nvidia,' said Thomas Martin, senior portfolio manager at Globalt Investments. 'It's time to ramp back up your ownership,' Bloomberg reported.
After a two-and-a-half-year rally driven by demand for AI chips, Nvidia's stock fell earlier in 2025 due to fears over President Trump's trade policies and potential reduced spending by major customers. Since April's low, the stock has climbed over 45%, reaching a $3.4 trillion market value, just behind Microsoft, per Bloomberg.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Pinga-Pinga e HBP? Tome isso 1x ao dia se tem mais de 40 anos
Portal Saúde do Homem
Clique aqui
Undo
Major clients like Microsoft, Meta, Alphabet, and Amazon, which drive over 40% of Nvidia's revenue, are projected to spend $330 billion on AI infrastructure in 2026, up 6% from this year, according to Bloomberg's analyst estimates. 'We just haven't seen any kind of slowdown in AI spending,' said Samuel Rines of WisdomTree, who believes Nvidia's price-to-earnings ratio could hit the high 30s or low 40s.
Nvidia trades at 29 times projected profits, below its decade-long average of 34, and its PEG ratio of under 0.9 is the lowest among the Magnificent Seven, report noted. Despite risks from U.S. tariffs and reliance on China for 13% of Q1 revenue, deals with Middle Eastern governments and a strong product pipeline are expected to mitigate challenges.
Analysts are overwhelmingly positive, with only one of 78 rating Nvidia a sell and an average price target of $170, implying a 24% gain, Bloomberg data shows. Despite this, Nvidia is owned by only 74% of long-only funds, trailing Amazon, Apple, and Microsoft, suggesting room for more buying, per Bank of America data cited by the report.
'There were a lot of investors that really got out of this market prematurely and now they're kind of being forced back into it,' said CFRA Research's Angelo Zino, according to Bloomberg.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Mint
42 minutes ago
- Mint
Oil Surges as US Orders Partial Evacuation of Iraqi Embassy
Oil surged as the US government ordered a partial evacuation of its embassy in Iraq amid rising security risks. West Texas Intermediate futures jumped 4.9% to settle above $68 a barrel, the largest gain since October, as the Trump administration reduced embassy staff in Iraq and permitted military service-members' families to leave the region in response to ongoing security concerns. The UK Navy also issued a rare warning to mariners that higher tensions in the Middle East could affect shipping. The developments compounded speculation about possible supply disruptions in the Middle East after AFP reported that Iran threatened to target US military bases in the region if conflict breaks out. 'Iranian rhetoric has turned notably more hostile, and these threats are being substantiated by real-world developments,' said Rebecca Babin, a senior energy trader at CIBC Private Wealth Group. 'While geopolitical rallies are often seen as selling opportunities, this situation carries the added complexity of potential Israeli military action if negotiations break down, which is keeping traders more cautious about selling into the rally.' Elsewhere, President Donald Trump told the New York Post he's 'less confident' about whether he can convince Tehran to agree on shutting down its nuclear program. He also posted on social media that a trade deal with China was 'done,' subject to the approval of President Xi Jinping. Oil had been weighed down by expectations that a trade war between the world's two largest economies would hurt demand and that a deal with Iran would bring back sanctioned barrels, adding to rising OPEC supplies. Prices have recovered in recent sessions, supported by easing trade tensions and the outlook for summer demand. A monthly report from the US Energy Information Administration underscored the oil market's current uncertainties. While the agency expects supply to eclipse demand by 800,000 barrels a day this year, the most since it began publishing a forecast for 2025, it also doesn't see US crude production topping last month's levels before the end of next year, a sign that lower prices are curbing some supply. Signs of market tightness have also appeared along the futures curve. Earlier this week, the February-March WTI spread flipped to backwardation — where near-term prices are higher than longer-dated ones — for the first time since April, with several subsequent months following suit earlier today, signaling concerns about oversupply are easing. To get Bloomberg's Energy Daily newsletter in your inbox, click here. This article was generated from an automated news agency feed without modifications to text.


Indian Express
an hour ago
- Indian Express
Trump says China trade deal ‘done': 55% tariff, supply of rare earth minerals
President Donald Trump said Wednesday that the United States has reached a trade agreement with China, including an easing of curbs imposed by Beijing on export of rare earth minerals and magnets that are key inputs for industries ranging from automobiles to electronics. 'Our deal with China is done, subject to final approval with President Xi and me,' Trump said in a post on Truth Social. He said China would supply 'any necessary rare earths' and magnets, while the US would make concessions on allowing Chinese students to attend American universities. The Trump administration had recently begun to clamp down on the presence of Chinese nationals on US college campuses. 'We are getting a total of 55% tariffs, China is getting 10%. Relationship is excellent!' Trump wrote, without elaborating. Bloomberg quoted a White House official as saying that the agreement allows the US to charge a 55 per cent tariff on imported Chinese goods, which, crucially, includes a 10 per cent baseline 'reciprocal' tariff, a 20 per cent tariff for fentanyl trafficking, and a 25 per cent tariff reflecting pre-existing tariffs (imposed by Trump in his first term, that the Biden administration persisted with). China would charge a 10 per cent tariff on American imports, the official said. Though the details of the deal were still unclear, analysts predicted that China seems to have gained the upper-hand after its rare earth restrictions prompted US carmakers, including Ford Motor and Chrysler, to cut production. Significantly, Trump said a final deal is subject to approval from him and Chinese President Xi Jinping. Chinese state media said earlier Wednesday that Beijing had reached a 'framework' for an agreement with the US during talks in London, but there was no official response from China on Trump's subsequent claims on Truth Social. Earlier, both the negotiating sides said they had agreed in principle to a framework for dialling down trade tensions between the world's two biggest economies. After the meeting in London — the second time the two sides have met in the last couple of months, since Trump's sweeping tariff onslaught — there were indications of a reconciliation. What is beginning to get clearer after the second meeting is that this is perhaps not how the US imagined the trade war to unfold. China is beginning to dictate the direction of the bilateral talks, with the US almost seen as requesting for much-needed concessions on the resumption of supplies of critical inputs. In the first round of talks in Geneva, the US delegation led by Treasury Secretary Scott Bessent had asked the Chinese to cut its tariffs in tandem with theirs, primarily because the Americans were facing the heat back home from the early fallout of the high tariffs, including empty shelves at grocery stories and surging prices of daily use commodities. In London, the US side is learnt to have specifically asked the Chinese to 'suspend or remove' restrictions on rare earths magnets, which had forced a supply-chain crunch. The London meeting follows a call between Trump and Xi on June 5, which was initiated by the White House — the first call since Trump's reciprocal tariff announcement. After the London talks, US Commerce Secretary Howard Lutnick said the deal should result in restrictions on rare earth minerals and magnets 'being resolved'. 'We have reached a framework to implement the Geneva consensus… Once the Presidents approve it, we will then seek to implement it,' he said. 'The two sides have, in principle, reached a framework for implementing the consensus reached by the two heads of state during the phone call on June 5 and the consensus reached at the Geneva meeting,' the BBC quoted China's Vice Commerce Minister Li Chenggang as saying. Chinese export controls over rare earth minerals were high on the agenda of the meetings. While Beijing has not imposed an outright ban on the export of rare earth magnets, the process has been made very difficult; it could take a long time to source, posing shortage risks. Rare earth magnets, especially neodymium-iron-boron (NdFeB) magnets, are crucial for EV manufacturing. They provide the strong magnetic fields needed for efficient and powerful electric motors, including traction motors that drive EVs. These magnets also play a major role in other EV components like power steering systems, wiper motors and braking systems. China has a virtual stranglehold over these rare earth magnets. In May, talks held in Geneva led to a temporary truce after the tit-for-tat tariff increases by both sides, which led to duties that peaked at 145 per cent. Trump called the outcome of the talks in Switzerland a 'total reset', which brought US tariffs on Chinese products down to 30 per cent, while Beijing cut duties on US imports to 10 per cent. Both sides also agreed to a 90-day deadline to try to reach a trade deal. However, the US and China have since accused each other of breaching the deal. The US has said that Beijing has been dragging its feet on opening up exports of rare earth metals and magnets while the Chinese claim that Washington has restricted its access to American goods such as semiconductors and other related technologies linked to artificial intelligence. US Trade Representative Jamieson Greer had said China had failed to roll back restrictions on exports of rare earth magnets. In the run-up to this week's talks, the Chinese Ministry of Commerce said on Saturday that it had approved some applications for rare earth export licences. The problem for the US is that the Chinese side has wrested some advantage, especially by leveraging its strategy of weaponing its dominance in key sectors. Rare earth minerals and magnets is one such area, where the US is now desperate for concessions. Both sides have since claimed breaches on non-tariff pledges, but the Americans clearly seem more eager for a reconciliation, given the impact of the Chinese blockade on its key manufacturing sectors. These Chinese trade blockades are already impacting companies in other geographies. Hamamatsu-based small car maker Suzuki Motors, for instance, said last week it plans to suspend the production of its flagship Swift compact hatchback due to China's rare earth restrictions, becoming the first Japanese automaker to be impacted. There are similar worries among other manufacturing entities across the world, including in the US. Anil Sasi is National Business Editor with the Indian Express and writes on business and finance issues. He has worked with The Hindu Business Line and Business Standard and is an alumnus of Delhi University. ... Read More
&w=3840&q=100)

Business Standard
an hour ago
- Business Standard
Samsung assembled more mobile phones in India than Apple last year
Korean firm makes more phones across most segments and has higher volumes: S&P report Surajeet Das Gupta New Delhi Listen to This Article Samsung's global volume share of final assembling of smartphones in India might not get the same focus as that of Apple Inc because of the latter's aggressive export strategy and higher average selling price leading to higher value. But in terms of volume, the reality is that Samsung is much higher than its US rival. A research by S&P Global shows that Samsung's share of global final assembly volume of smartphones in India in 2024 was at 25 per cent compared to only 15 per cent of the Cupertino-based Apple Inc in the same period. For Samsung, its biggest exposure