Latest news with #DeepSeek-led
Business Times
22-07-2025
- Business
- Business Times
Chinese investors snap up Hong Kong stocks as flows near record
[HONG KONG] Mainland Chinese investors' purchase of Hong Kong-listed stocks is approaching an annual record, driving a rally that has made a key benchmark in the city one of the world's best performers. Southbound net inflows expanded by another HK$2.7 billion (S$440.8 million) on Tuesday (Jul 22), taking this year's total to HK$800 billion, a whisker away from 2024's previous record of HK$808 billion. The accelerated buying came as the Hang Seng China Enterprises Index gained 24 per cent this year, in a rally fuelled by DeepSeek-led technology breakthroughs, mainland investors' hunt for quality assets and global funds' diversification needs. Also driving the southbound flows is a less robust onshore market, where the CSI 300 benchmark has risen 4.7 per cent in the same period. Southbound flows may exceed HK$1 trillion this year, according to estimates by China International Capital Corp (CICC) analysts including Kevin Liu. They expect the purchases to taper in the current half year as mainland mutual and insurance funds run low on dry powder. Mutual funds may add only HK$100 billion for the rest of the year before they approach the 50 per cent cap for Hong Kong equity positions that applies to most funds, while insurance firms may buy another HK$200 billion, CICC's analysts estimate. The level of mainland investor participation has climbed with the inflows, with southbound turnover accounting for 47 per cent of the Hong Kong market's year-to-date average and up about 10 percentage points from 2024's level. Still, there may be room for retail demand to increase, as exchange-traded funds' turnover was less than 1 per cent of the total last month under the stock link between Hong Kong and the mainland. BLOOMBERG
Yahoo
17-07-2025
- Business
- Yahoo
Major analyst revamps Nvidia stock price target after China surprise
Major analyst revamps Nvidia stock price target after China surprise originally appeared on TheStreet. Chip giant Nvidia () continues writing new chapters in the AI playbook. A smashing success thus far, 2025 has been marked by blockbuster earnings and historic market cap highs. 💵💰💰💵 Yet, there were a few moments when the momentum seemed to slip, as if something major had stalled. However, a seismic breakthrough may have repositioned Nvidia to be the center of AI and the one defining its future. Nvidia: A $4 trillion juggernaut fueled by AI demand Nvidia's performance in 2025 has been nothing short of historic. It started off the year with fireworks, as its fiscal Q4 results in February blew past expectations. Revenue surged to $39.3 billion, a massive quarter that helped erase the sting of the Deep Seek-led $600 billion market cap drop in January. Its Q1 earnings print was perhaps even more posted $44.1 billion in sales for the quarter ending April 27, up a superb 69% year-over-year. Data center sales skyrocketed 73% to $39.1 billion, fueled by relentless demand for generative AI. Wall Street didn't hesitate, either. The stock's up over 22% year-to-date, having surpassed the $4 trillion market cap (the first company to do so). A huge part of what's driving its fundamentals and stock is Blackwell. Nvidia's new Blackwell AI chips have taken the data center business by storm, now accounting for roughly 50% of total sales. Their performance edge, along with Nvidia's robust CUDA ecosystem, has made Nvidia a no-brainer for enterprise and hyperscale AI customers. Needham lifts Nvidia stock forecast to $200 as China sales path reopens Needham is the latest Wall Street giant to crank up Nvidia's price target, and the jump is big. The firm bumped its price target to $200 from $160, while maintaining a buy rating, following Nvidia's confirmation that it's gearing up to resume H20 chip sales to China. U.S. government assurances that export licenses for those chips will be granted have cleared the path for Nvidia to restart a sales channel — worth billions — that's been locked for months.N. Quinn Bolton and his team note that the April export controls led to $2.5 billion in H20 product being impacted for Q1 fiscal 2026. Also, the restrictions froze an additional $8 billion worth of orders lined up for Q2. That sales freeze in particular hit the hardest, since the H20 was designed specifically to comply with earlier restrictions. Now, Needham expects a rebound. The firm is modeling a whopping $3 billion in H20 shipments per quarter beginning in Q3 (October), stretching over multiple quarters. It also flagged a much deeper product push that could underscore the company's China comeback. Nvidia is looking to build localized variants of its Blackwell GPUs like the B30, B40, and RTX 6000D, with shipments expected to begin early in August or September. These chips will be export-compliant and tailor-made for customers navigating the geopolitical climate. More Tech Stock News: Cathie Wood drops bold message on Apple, Tesla stock Unsung AI stock pops after joining S&P 500 Wall Street giant shares bold message on S&P 500's Magnificent 7 For Nvidia, it couldn't come at a better time. Following months of geopolitical whiplash, a clear path back into the China AI market could help Nvidia regain sales, solidify its footprint, and reestablish momentum in the region. Dan Ives and Gene Munster turn up the volume on Nvidia Wall Street's tech bulls are also singing the praises of Nvidia's China pivot. Wedbush's Dan Ives hails the H20 sales reset as a 'watershed moment' and a 'monster win' for CEO Jensen Huang after his meeting with President Donald Trump. Ives calls this a high-stakes poker move in the U.S.-China tech race, helping Washington retain leverage in the AI arms race. The firm expects Street estimates to 'go up meaningfully' as China reopens, considering the market contributes 15% of Nvidia's revenue. Gene Munster of Deepwater Asset Management is perhaps even more aggressive. He feels the update should add a hefty 10% to Nvidia's consensus sales estimates over the next four quarters. Also, Nvidia's growth could hit 35% or more for its current fiscal year. In short, Munster believes the market is underestimating how early we're placed in the investment cycle. China's demand for H20 chips shows that this boom still has legs. Investors seem to agree, with Nvidia stock popping 4% on the news. But if Munster and Ives are right, this rally might just be the warm-up analyst revamps Nvidia stock price target after China surprise first appeared on TheStreet on Jul 17, 2025 This story was originally reported by TheStreet on Jul 17, 2025, where it first appeared. 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
Miami Herald
17-07-2025
- Business
- Miami Herald
Major analyst revamps Nvidia stock price target after China surprise
Chip giant Nvidia (NVDA) continues writing new chapters in the AI playbook. A smashing success thus far, 2025 has been marked by blockbuster earnings and historic market cap highs. Don't miss the move: Subscribe to TheStreet's free daily newsletter Yet, there were a few moments when the momentum seemed to slip, as if something major had stalled. However, a seismic breakthrough may have repositioned Nvidia to be the center of AI and the one defining its future. Nvidia's performance in 2025 has been nothing short of historic. It started off the year with fireworks, as its fiscal Q4 results in February blew past expectations. Revenue surged to $39.3 billion, a massive quarter that helped erase the sting of the Deep Seek-led $600 billion market cap drop in January. Its Q1 earnings print was perhaps even more impressive. Related: Nvidia CEO hits Warren Buffett milestone Nvidia posted $44.1 billion in sales for the quarter ending April 27, up a superb 69% year-over-year. Data center sales skyrocketed 73% to $39.1 billion, fueled by relentless demand for generative AI. Wall Street didn't hesitate, either. The stock's up over 22% year-to-date, having surpassed the $4 trillion market cap (the first company to do so). A huge part of what's driving its fundamentals and stock is Blackwell. Nvidia's new Blackwell AI chips have taken the data center business by storm, now accounting for roughly 50% of total sales. Their performance edge, along with Nvidia's robust CUDA ecosystem, has made Nvidia a no-brainer for enterprise and hyperscale AI customers. Needham is the latest Wall Street giant to crank up Nvidia's price target, and the jump is big. The firm bumped its price target to $200 from $160, while maintaining a buy rating, following Nvidia's confirmation that it's gearing up to resume H20 chip sales to China. U.S. government assurances that export licenses for those chips will be granted have cleared the path for Nvidia to restart a sales channel - worth billions - that's been locked for months. Related: Google Brain founder has an unexpected one-word message on AI N. Quinn Bolton and his team note that the April export controls led to $2.5 billion in H20 product being impacted for Q1 fiscal 2026. Also, the restrictions froze an additional $8 billion worth of orders lined up for Q2. That sales freeze in particular hit the hardest, since the H20 was designed specifically to comply with earlier restrictions. Now, Needham expects a rebound. The firm is modeling a whopping $3 billion in H20 shipments per quarter beginning in Q3 (October), stretching over multiple quarters. It also flagged a much deeper product push that could underscore the company's China comeback. Nvidia is looking to build localized variants of its Blackwell GPUs like the B30, B40, and RTX 6000D, with shipments expected to begin early in August or September. These chips will be export-compliant and tailor-made for customers navigating the geopolitical climate. More Tech Stock News: Cathie Wood drops bold message on Apple, Tesla stockUnsung AI stock pops after joining S&P 500Wall Street giant shares bold message on S&P 500's Magnificent 7 For Nvidia, it couldn't come at a better time. Following months of geopolitical whiplash, a clear path back into the China AI market could help Nvidia regain sales, solidify its footprint, and reestablish momentum in the region. Wall Street's tech bulls are also singing the praises of Nvidia's China pivot. Wedbush's Dan Ives hails the H20 sales reset as a "watershed moment" and a "monster win" for CEO Jensen Huang after his meeting with President Donald Trump. Ives calls this a high-stakes poker move in the U.S.-China tech race, helping Washington retain leverage in the AI arms race. The firm expects Street estimates to "go up meaningfully" as China reopens, considering the market contributes 15% of Nvidia's revenue. Gene Munster of Deepwater Asset Management is perhaps even more aggressive. He feels the update should add a hefty 10% to Nvidia's consensus sales estimates over the next four quarters. Also, Nvidia's growth could hit 35% or more for its current fiscal year. In short, Munster believes the market is underestimating how early we're placed in the investment cycle. China's demand for H20 chips shows that this boom still has legs. Investors seem to agree, with Nvidia stock popping 4% on the news. But if Munster and Ives are right, this rally might just be the warm-up act. Related: Apple's quiet shake-up could redefine its future The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
NDTV
11-07-2025
- Business
- NDTV
Alibaba Loses $100 Billion Amid Battle In China's Food Delivery Market
A protracted battle in China's food-delivery market has chopped $100 billion in market value from Alibaba Group Holding Ltd., with no end in sight for damage to profits and investor confidence. Its shares have plunged 28% from a March high in Hong Kong, nearly double the loss in a gauge of Chinese tech peers. Rivals Inc. and Meituan have dropped by similar measures amid daily headlines on government efforts to contain the destructive hyper-competition being dubbed "involution." At least four brokers, including Goldman Sachs Group Inc. and HSBC Holdings Plc, have cut their price targets by an average of 8% since late June as the latest phase of the yearslong turf war continues to escalate. "It could last longer than expected," said Luo Jing, investment director at Value Partners Group Ltd. in Hong Kong. "The players are financially stronger than in the previous round, with more cash and better cash flow positions." Alibaba's food-delivery strategy has distracted investors away from the DeepSeek-led AI boom that drove its shares up more than 80% in just two months earlier this year. The company has merged its delivery unit into its core business and boosted subsidies since formal entry to the space in February. It's a costly fight. Nomura Holdings Inc. estimates about $4 billion has been burned on discounts in the June quarter alone by Alibaba, Meituan and It sees Alibaba dictating the intensity and scale of the coupon war going forward. Sector leader Meituan said Saturday that it was going into "attack" mode versus Alibaba, while announced a new incentive scheme this week. The companies' extreme moves have drawn much criticism from the government over the potential disastrous impact to the industry, as well as warnings on driver health and food safety. Alibaba might sustain a loss of 41 billion yuan ($5.7 billion) in its food-delivery business for the 12 months through next June, according to Goldman Sachs, equal to about a third of its net income for the fiscal year ended March. "Aggressive investment in food delivery, insta-shopping will meaningfully damp its near-term earnings outlook," HSBC analysts including Charlene Liu wrote in a note this week, cutting their price target for Alibaba by 15%. The consensus estimate for Alibaba's 12-month forward earnings per share is down about 6% since early May. Analysts are still overwhelmingly bullish, with 44 buy ratings on the Hong Kong shares and no holds or sells. The stock also remains historically cheap at a price-to-earnings ratio of less than 11 times. In terms of upside risks, UOB Kay Hian Holdings Ltd. analyst Julia Pan notes that the government may step in to curb price competition if the market takes a heavy blow and margins get squeezed further. Alibaba's current valuation is low enough to trigger some dip buying, she added. But investors may remain cautious until a definitive end to the steep discounts, especially if they trigger more earnings downgrades and constrain investment in all-important AI business. "We do need to watch for price competition that evolves into a situation where certain companies decide to gain market share at the expense of profitability," said Nicholas Chui, a Franklin Templeton portfolio manager. "As a stock picker, we would avoid those stocks."
Business Times
11-07-2025
- Business
- Business Times
Alibaba risks deepening US$100 billion rout as turf war heats up
[HONG KONG] A protracted battle in China's food-delivery market has chopped US$100 billion in market value from Alibaba Group Holding, with no end in sight for damage to profits and investor confidence. Its shares have plunged 28 per cent from a March high in Hong Kong, nearly double the loss in a gauge of Chinese tech peers. Rivals and Meituan have dropped by similar measures amid daily headlines on government efforts to contain the destructive hyper-competition being dubbed 'involution'. At least four brokers, including Goldman Sachs and HSBC Holdings, have cut their price targets by an average of 8 per cent since late June as the latest phase of the years-long turf war continues to escalate. 'It could last longer than expected,' said Luo Jing, investment director at Value Partners Group in Hong Kong. 'The players are financially stronger than in the previous round, with more cash and better cash flow positions.' Alibaba's food-delivery strategy has distracted investors away from the DeepSeek-led artificial intelligence (AI) boom that drove its shares up more than 80 per cent in just two months earlier this year. The company has merged its delivery unit into its core business and boosted subsidies since formal entry to the space in February. It's a costly fight. Nomura Holdings estimates that about US$4 billion has been burned on discounts in the June quarter alone by Alibaba, Meituan and It sees Alibaba dictating the intensity and scale of the coupon war going forward. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Sector leader Meituan said on Saturday (Jul 5) that it was going into 'attack' mode versus Alibaba, while announced a new incentive scheme this week. The companies' extreme moves have drawn much criticism from the government over the potential disastrous impact to the industry, as well as warnings on driver health and food safety. Alibaba might sustain a loss of 41 billion yuan (S$7.3 billion) in its food-delivery business for the 12 months till next June, according to Goldman Sachs, equal to about a third of its net income for the fiscal year ended March. 'Aggressive investment in food delivery, insta-shopping will meaningfully damp its near-term earnings outlook,' HSBC analysts including Charlene Liu wrote in a note this week, cutting their price target for Alibaba by 15 per cent. The consensus estimate for Alibaba's 12-month forward earnings per share is down about 6 per cent since early May. Analysts are still overwhelmingly bullish, with 44 buy ratings on the Hong Kong shares and no holds or sells. The stock also remains historically cheap at a price-to-earnings ratio of less than 11 times. In terms of upside risks, UOB Kay Hian Holdings analyst Julia Pan notes that the government may step in to curb price competition if the market takes a heavy blow and margins get squeezed further. Alibaba's current valuation is low enough to trigger some dip buying, she added. But investors may remain cautious until a definitive end to the steep discounts, especially if they trigger more earnings downgrades and constrain investment in the all-important AI business. 'We do need to watch for price competition that evolves into a situation where certain companies decide to gain market share at the expense of profitability,' said Nicholas Chui, a Franklin Templeton portfolio manager. 'As a stock picker, we would avoid those stocks.' BLOOMBERG
