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
Time of India
40 minutes ago
- Time of India
Elon Musk backs JD Vance — and Trump's not happy: Michael Wolff says the President is paranoid
Elon Musk backs JD Vance — and Trump's not happy: Michael Wolff says the President is paranoid: The story of Elon Musk backing JD Vance has taken a serious turn — and President Donald Trump isn't pleased. According to veteran political author Michael Wolff, the President is growing paranoid, even suspicious, of his own Vice President. With Trump currently in the White House and Vance just one heartbeat away, this isn't just political gossip — it's a sign of real tension at the top. Why is Trump worried about Elon Musk supporting his own VP, JD Vance? In a report published by Raw Story, journalist Michael Wolff revealed that President Trump is becoming increasingly anxious about Elon Musk's influence — and the way it's shaping JD Vance's political identity. Elon Musk, the billionaire CEO of Tesla and X (formerly Twitter), has reportedly suggested that Vance would make a better president than Trump himself. In private, Musk has allegedly encouraged key donors and Silicon Valley insiders to look to Vance as a long-term successor. That idea, according to Wolff, has deeply unsettled Trump. Even though Vance is his running mate and now serves as Vice President of the United States, Trump is said to see him as 'too close to Musk' and a potential rival rather than a loyal partner. Is Trump's fear of being replaced by Vance real or just political paranoia? Wolff says the fear is real — and growing. 'He's always been paranoid, but this is different,' Wolff told Raw Story. 'Trump sees Musk's money, his power on social media, and the way he talks about Vance — and he's starting to think there's a plot.' Live Events Wolff claims Trump is even considering 'loyalty tests' for his vice president, privately questioning whether Vance is more committed to the MAGA movement or to Musk's vision of tech-backed nationalism. The timing matters here. We're deep into 2025, with Trump now in his second term, and Vance being groomed by many on the right as the future of the Republican Party. That kind of speculation — especially when amplified by Musk — is enough to trigger Trump's deep political insecurities. How has JD Vance responded to Trump's growing suspicion? Vice President JD Vance has publicly downplayed the rift, but his words reveal the pressure he's under. In a recent interview, Vance said, 'I'm the vice president to President Trump. My loyalties are always going to be with the president.' He also called Musk's recent comments a 'huge mistake' that stirred up unnecessary division. Vance has spent the past year carefully balancing his loyalty to Trump with his appeal to younger conservatives and Silicon Valley influencers. That balancing act has worked — until now. As Musk continues to throw subtle shade at Trump and hint at a post-Trump GOP, Vance is increasingly caught in the middle. Behind closed doors, some Republican insiders say Vance is being advised to 'stay in his lane' — not to appear too ambitious, not to align too closely with Musk, and definitely not to outshine the president. But that's easier said than done when Musk has nearly 200 million followers on X and regularly fuels speculation about Vance's future. What role did the Epstein post play in escalating the drama? Things really boiled over when Musk posted — and then deleted — a message on X hinting that Trump's name might be found in Jeffrey Epstein's court records. No evidence was provided, and Musk has since gone silent on the matter. But the damage was done. Wolff said this was the moment that sent Trump over the edge. 'That was a silver bullet. Even if there's nothing there, just the suggestion of it reactivates all of Trump's worst fears.' The deleted post was widely screenshotted and shared across social media, giving critics of Trump a new narrative — and giving Musk's feud with the president a deeply personal edge.
India.com
an hour ago
- India.com
One statement by US President Trump and Elon Musk hits jackpot due to...
One statement by US President Trump and Elon Musk hits jackpot due to... New York: Amid the deteriorating relationship between the most powerful man and the richest man in the world over the 'One Big Beautiful Bill,' United States President Donald Trump said that he is not going to get rid of Elon Musk's companies — Tesla and Starlink. Following this positive statement shares of the electric vehicle manufacturing company Tesla skyrocketed by 5 percent. This development led to a jump of USD 13.9 billion in the wealth of the company's CEO Elon Musk. According to Bloomberg Billionaires Index, Musk's net worth has now reached USD 356 billion. However, his wealth has decreased by USD 76.2 billion this year. It is worth noting that Tesla is one of the world's leading electrical vehicle companies with a market cap of USD993.92 billion. It is ranked 11th in the list of top valuable companies in the world. Microsoft is the world's most valuable company with a value of USD3,513 trillion. It is followed by Nvidia (USD3.478 trillion), Apple (USD 3,045 trillion), Amazon (USD2.303 trillion) and Google's parent company Alphabet (USD2.114 trillion). Meta Platform, Saudi Aramco, Broadcom, TSMC and Berkshire Hathaway are included in list. Who Are In The Top 10 Recent ranking of the world's wealthiest people put Mark Zuckerberg in the second position with a net worth of USD245 billion. Jeff Bezos, Larry Ellison, Bill Gates, Steve Ballmer, Larry Page, Warren Buffett, Bernard Arnault, and Sergey Brin also mentioned in the top ten. Mukesh Ambani and Gautam Adani are ranked 17th and 20th in the richest persons list, with net worths of USD105 billion and USD84.8 billion.
The Hindu
an hour ago
- The Hindu
Vietnam, India key markets to watch as tariffs likely disrupt tech market in Asia: S&P
Vietnam and India are key markets to watch outside of China as tariffs are likely disrupting the tech market in Asia, said S&P Global Ratings in a report titled ''Tariff Disruption In Asia Tech: Vietnam And India Are Key Markets To Watch Outside Of China.' ''Most companies have plans to expand production outside of China. Understanding where production is shifting to elsewhere in Asia was important to predicting the consequences of reciprocal tariffs on countries outside of China,'' said Clifford Kurz, Credit Analyst at S&P Global Ratings. For example, he observed, Vietnam and India were countries of choice for the assembly of smartphones and PCs, given their low labour costs. Tariffs on these countries could heighten the risk across the technology supply chain for these products,'' he said. While shifting supply chains would be costly, many have already diversified their production enough to offset some of the tariff risk related to China, Mr. Kurz added. Apple and its key suppliers may be the most disrupted, given their production reliance on China, however, India now accounts for nearly a fifth of all final assembly before shipment to the U.S., as per the document. 'No one knows exactly where the dust will settle on U.S. tariffs for Asia's tech-manufacturing sector. But trade barriers will very likely be the highest between the U.S. and China,'' it cautioned adding, 'The most vulnerable companies are those with the largest reliance on China's integrated technology production infrastructure and the U.S. as a major end market.' It further said, advanced chipmakers were less vulnerable, in part because such chipmakers have high bargaining power and have a growing proportion of revenue and profit from AI. AI chipmakers were also less exposed to China's chip restriction risk. 'While shifting supply chains will be costly, many have already diversified their production enough to offset some of the tariff risk related to China. Or at least enough such that the U.S. market can be supplied by non-China production,' said Mr. Kurz.
