Latest news with #DeepSeek-driven
Yahoo
20-03-2025
- Business
- Yahoo
Chinese Shares' Premium to Hong Kong Peers Poised for 2020-Low
(Bloomberg) -- The price gap between mainland China stocks and their counterparts listed in Hong Kong is poised to reach a more than four-year low, as optimism in artificial intelligence drives investors to the city's market. Despite Cost-Cutting Moves, Trump Plans to Remake DC in His Style Amtrak CEO Departs Amid Threats of a Transit Funding Pullback New York Subway Ditches MetroCard After 32 Years for Tap-And-Go NYC Plans for Flood Protection Without Federal Funds The Scary Thing About the Wildfire That Was Stopped A measure of onshore shares' premium to their Hong Kong peers is close to surpassing an October-low, bringing it near the lowest level since June 2020. This comes as a gauge of Chinese firms listed in Hong Kong surged 24% this year, while the mainland benchmark CSI 300 Index only gained 1.5%. Tech giants listed in Hong Kong are benefiting from a DeepSeek-driven rally, while sentiment toward onshore shares remained capped by a soft economic recovery. The financial hub's outperformance is also helped by strong buying from mainland investors. To be sure, Beijing's plans to boost consumption may trigger a reversal of the trend. After months of mostly outflows, a $2.5 billion exchange-traded fund tracking the largest and most liquid stocks in mainland China saw its biggest inflow this week since October. In the longer term, the premium 'could be lower than in the past due to increasing southbound ownership in Hong Kong, which is now at a similar level compared to foreign active funds' ownership,' UBS Group AG strategists including James Wang wrote in a note. Some level of premium should remain given the higher liquidity and turnover in Hong Kong, as well as the lack of ability to short onshore shares, they said. Tesla's Gamble on MAGA Customers Won't Work How TD Became America's Most Convenient Bank for Money Launderers The Real Reason Trump Is Pushing 'Buy American' A New 'China Shock' Is Destroying Jobs Around the World The Future of Higher Ed Is in Austin ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
01-03-2025
- Business
- Yahoo
Why Wall Street Analysts Say Nvidia Could Be a DeepSeek 'Beneficiary'
This week's post-earnings losses brought Nvidia's stock near the January lows that came after a DeepSeek-driven plunge. Analysts have largely remained bullish, pointing to Nvidia's strong outlook on the back of growing AI demand. Several also said they expect Nvidia to benefit from DeepSeek's emergence and growing (NVDA) stock has had a tough start to 2025, with this week's post-earnings plunge dragging shares back near the January lows that came after a DeepSeek-driven selloff. Its shares edged higher Friday as the stock found some support after plunging over 8% Thursday, but that still left the stock roughly 7% lower for the week and year. Analysts have largely remained bullish, pointing to Nvidia's strong outlook on the back of growing AI demand. Their optimism comes as investors appear uncertain about the path ahead for the recently highflying stock, shares of which have added about half their value over the past 12 months. Chinese startup DeepSeek's claims that its AI model could keep up with American rivals at a fraction of the cost and computing resources had raised worries demand for Nvidia's most advanced chips could slow, but several analysts said they believe Nvidia stands to benefit from DeepSeek's emergence and growing competition. During Wednesday's earnings call, CEO Jensen Huang said that demand for AI inference is accelerating as new AI models emerge, giving a shoutout to DeepSeek's R1. DeepSeek "has ignited global enthusiasm,' Huang said, adding that "nearly every AI developer" is applying R1 or adopting some of DeepSeek's innovations into their own technology. Rather than diminishing the need for advanced chips, Huang said, next-generation AI will likely require significantly more computing power as applications become more sophisticated, leaving Nvidia poised for growth. Citi and JPMorgan analysts said following the call that they were reassured by Huang's comments around DeepSeek and the expected trajectory of computing needs. Wedbush analysts said they believe Nvidia will ultimately end up a "DeepSeek beneficiary." Analysts at Bank of America suggested competition from China could also push American firms to act with greater urgency on AI developments, rather than scale back spending. In recent earnings calls, several of Nvidia's Big Tech buyers, including Meta (META), Microsoft (MSFT), Amazon (AMZN) and Google parent Alphabet (GOOGL), did exactly that—announcing plans to raise their capital expenditures to fuel AI ambitions. Read the original article on Investopedia Sign in to access your portfolio
Globe and Mail
24-02-2025
- Business
- Globe and Mail
Nvidia Stock: UBS Expects ‘Strong Results' When the Company Reports Q4 Earnings
Investors in chip major Nvidia (NVDA) are starting to breath again as hype over Chinese startup DeepSeek and its lower-cost AI model dies down. After seeing its market cap erode by a massive $589 billion in a single day on DeepSeek-driven panic, Nvidia shares have started to recover. And encouragingly for Nvidia shareholders, UBS believes the company will report Street-beating numbers for its fiscal fourth quarter on Feb. 26. UBS Is Bullish on Nvidia Reiterating its 'Buy' rating on the Jensen Huang-led firm, UBS analyst Timothy Arcuri commented, 'We expect a strong set of results with guidance that is in-line to better than FQ1 (April) investor bogeys of ~$42.5-43B for total revenue and ~ $38.5B-39B for data center. … With the big inflection in Blackwell compute board production in 2H of NVDA's FQ4 (Jan), we also believe many customers have pivoted to Blackwell SKUs that are more immediately available (e.g. B200 on the air-cooled HGX platform) and have avoided waiting for the GB200 rack power issues to be fully resolved, as customers are clamoring to get Blackwell installed even a month or two earlier.' Arcuri's optimism about Nvidia is built on solid ground with the stock still up a sizeable 70% over the past year. Nvidia Is a Consistent Outperformer Nvidia has cemented itself as a dominant force in the semiconductor industry, boasting an astonishing market capitalization of $3.3 trillion. Over the past decade, the company has delivered exceptional financial performance, with its revenue and earnings growing at compound annual growth rates of 37.84% and 59.72%, respectively. The latest quarterly results further underscore Nvidia's momentum. In the third quarter of its fiscal 2025, the company reported $35.1 billion in revenue, exceeding Wall Street's forecast of $33.2 billion. Earnings per share came in at $0.81, surpassing analysts' expectations of $0.75. This marks the eighth consecutive quarter in which Nvidia has outperformed earnings projections, reinforcing its status as a market leader. Beyond revenue and profitability, the company's cash flow and balance sheet highlight its financial health. Operating cash flow surged to $17.6 billion, more than doubling from $7.3 billion in the same period a year earlier. With a robust cash reserve and no short-term debt, Nvidia remains well-positioned to sustain its growth trajectory. Consequently, analysts project the company will maintain its rapid expansion, with revenue and earnings expected to surge by 93.64% and 189.37%, respectively — growth rates that significantly outpace the broader industry averages of 6.38% and 11.19%. Key Catalysts Nvidia's financial strength gives it the firepower to continue its dominance in AI, which is reflected by its 90% market share in the chip sector. This dominance is further reinforced by the introduction of its Blackwell GPU architecture, a major leap forward in artificial intelligence and high-performance computing. Designed for peak efficiency, Blackwell delivers up to 2.5 times faster AI training and an astonishing 15 times higher inference speeds compared to its predecessor, Hopper. The escalating competition among tech giants like Amazon (AMZN), Microsoft (MSFT), Meta (META), and Google (GOOGL) in the AI and cloud computing sectors also bodes well for Nvidia. According to these companies are projected to allocate a staggering $320 billion toward AI investments in 2025. With such substantial capital flowing into data centers, the demand for Nvidia's GPUs is poised to surge even further, reinforcing its integral role in powering next-generation AI infrastructure. Adding to this momentum, President Donald Trump's Stargate initiative represents an unprecedented shift in private sector investment in AI hardware. Backed by OpenAI, SoftBank (SFTBY), and Oracle (ORCL), Stargate comes with $500 billion in funding over the next four years. The initial $100 billion funding directed toward Texas-based data centers will significantly boost demand for Nvidia's chips. Beyond AI processors, Nvidia's near-monopoly in GPU-powered cloud computing is another pillar of its dominance. Approximately 93% of GPU-based cloud instances rely on Nvidia's hardware, thanks to deep integration with leading cloud providers such as Microsoft Azure and Google Cloud. The company's Hopper and Blackwell architectures are specifically designed to scale AI capabilities in the cloud, further solidifying its unassailable market position. The total addressable market for Nvidia remains vast, encompassing opportunities in cloud infrastructure, AI accelerators, Edge AI, data analytics, and data center modernization. Crucially, these sectors are deeply interconnected, where Nvidia's full-stack approach creates powerful network effects and significant switching costs through its CUDA ecosystem and enterprise AI solutions, reinforcing its grip on the future of AI computing. Analyst Opinion on NVDA Stock Overall, analysts have attributed a rating of 'Strong Buy' for the stock with a mean target price of $176.95. This denotes upside potential of about 30% from current levels. Out of 43 analysts covering the stock, 37 have a 'Strong Buy' rating, two have a 'Moderate Buy' rating, and four have a 'Hold' rating.
Bloomberg
21-02-2025
- Business
- Bloomberg
Alibaba Adds $123 Billion in Value in Stunning Comeback Rally
It's been Alibaba's day, week and month. The company has added $123 billion in market value in February, helped by a DeepSeek-driven rally in Chinese tech stocks, its tie-up with Apple to roll out AI features in China and Beijing's rehabilitation of co-founder Jack Ma. Its shares rose 15% in Hong Kong on Friday alone after Alibaba reported higher sales and said it will boost spending on AI over the next three years. The surge comes after the company was earlier hammered by a government crackdown on the tech industry and a post-Covid slump in its business. Even after jumping almost 60% this month, Alibaba shares are still down by more than half from their 2020 peak, meaning there's still plenty of room for the rally to continue. —Richard Frost Standard Chartered will hand back $1.5 billion more to shareholders as it reported fourth-quarter earnings that beat estimates, boosted by a strong performance in its trading and wealth business. The London-headquartered bank announced a fresh buyback which would bring total shareholder distributions to $4.9 billion since 2023. The bank is in the midst of a corporate cost-saving program. CEO Bill Winters saw his total pay package jump 46% to £10.7 million ($13.6 million).
Globe and Mail
18-02-2025
- Business
- Globe and Mail
Rigetti Computing Stock Faces Heat From Chinese Quantum Startup. Is RGTI a Buy or Sell?
Rigetti Computing (RGTI) is down more than 10% on Tuesday following reports that a China-based startup Origin Quantum has surpassed 20 million in remote visits to its prototype machine. The company's third-generation 'Wukong' is a 72-qubit quantum computer with fully independent intellectual property. Origin Quantum is already being compared to DeepSeek, the Chinese artificial intelligence (AI) startup that erased $1 trillion from the U.S. stock market with the launch of its low-cost, super-efficient AI model in late January. Other quantum stocks, including D-Wave (QBTS) and IonQ (IONQ) are also down significantly on Tuesday. Origin Quantum Is Not a Threat to Rigetti Computing While the Origin Quantum development is drawing significant attention on Tuesday, there's reason to believe it's not an immediate threat to Rigetti Computing stock. For starters, the China-based startup is not a publicly listed company, which means it's not in direct competition for investor capital with the likes of RGTI. Plus, the DeepSeek episode has already taught us that startups being posed as serious competition to established names often prove to be more hype than substance. This is evidenced in the swift recovery in Nvidia (NVDA) stock following the short-lived DeepSeek-driven selloff in the final week of January. RGTI Is Ahead of Origin Quantum in Technology Shares of Rigetti Computing may be worth buying on the weakness also because Origin Quantum's prototype machine that made headlines today is a 72-qubit quantum computer. In comparison, RGTI has already launched an 84-qubit Ankaa-3 system, which means it's already ahead of the Chinese startup in terms of technology. Moreover, Rigetti generated $2.4 million in revenue in its latest reported quarter. In comparison, Origin Quantum is a pre-revenue company at the time of writing. Finally, titans, including Nvidia and Microsoft (MSFT), have partnered with Rigetti Computing, which, for investors, mean a huge mark of confidence in its future prospects. That's why Rigetti Computing stock is up more than 50% versus its recent low even after today's decline. Should You Buy the Dip in Rigetti Computing Stock? All in all, the Origin Quantum news on Tuesday does rather little to disrupt the long-term bullish momentum in Rigetti Computing stock. Wall Street currently has a consensus 'Strong Buy' rating on RGTI shares. While the mean target of $11 suggests potential upside of 5% from current levels, the high target of $17 signals the possibility of a 63% rally from here.
