Latest news with #DowJonesMarketData
Mint
21-07-2025
- Business
- Mint
AI is dividing the fortunes of the Magnificent Seven
The 'Magnificent Seven" stocks are starting to grow apart. They are not quite heading to splitsville, but some of the market's tech heavyweights have made more headway in artificial intelligence—and that has put a strain on their relationship. At least with respect to their recent relative stock performance. 'They are in therapy," said Dan Morgan, senior portfolio manager at Synovus Trust, of the Magnificent Seven's diverging paths. Alphabet, Apple, Meta Platforms, Microsoft, Nvidia and Tesla have lorded over the stock market in recent years, linked by the outsize role they share in the economy's future and the significant slice they comprise in the benchmark S&P 500 index. This year, though, shares of Nvidia, Meta and Microsoft have climbed about 20% or more, while Apple and Alphabet are down 16% and 2%, respectively. Each will soon deliver a quarterly scorecard to investors, with Alphabet and Tesla set to report earnings Wednesday, followed by Meta, Microsoft and Apple the following week. 'It was inevitable. They all can't run in lockstep forever because they do different things," said Jamie Cox, managing partner at Harris Financial Group. 'Now, the winners and losers stratification is upon us." The Magnificent Seven still have a strong grip over the market. Their stocks led the tariff-induced selloff in April, and then helped lift the market all the way back during its march toward new highs. Those big names represent about 35% of the S&P 500, according to Dow Jones Market Data, and investors don't expect that to change soon. One major reason the seven were grouped together in the first place was that those seven companies were spearheading the AI push, Michael Hartnett, the Bank of America strategist who is credited with coining the term 'Magnificent Seven" in 2023, has said. But 'right now, we're seeing a pretty big divergence in the fundamentals," said Ivana Delevska, founder and chief investment officer of Spear. Apple, for instance, has failed to woo investors with its AI efforts. Last year, it introduced its Apple Intelligence service to great fanfare, only to come up short on its promises. The company has said it would share updates about its AI-powered Siri in the coming year, meaning it might not reach the market until late 2026. Morgan, of Synovus, said he recently trimmed his Apple holdings for the first time in years. When a client was looking to make a donation, he recommended gifting Apple equities, something he wouldn't have done years ago. Other investors have reduced Apple positions in favor of Nvidia or Microsoft. 'Apple is on a park bench eating an apple, watching the AI revolution go by on the highway," said Dan Ives, managing director of Wedbush Securities and one of Wall Street's biggest AI bulls. Google's parent company, Alphabet, faces antitrust scrutiny in the U.S. and Europe, along with mounting concern that AI chatbots such as ChatGPT will eat into Google's dominant search business. Some investors see plenty of upside potential. Google has a significant trove of user data available, something analysts say could help advance its AI models beyond competitors. Its AI overviews, which appear atop some search-results pages, are gaining traction, as are its Gemini AI tools. 'We believe that the perceived 'missteps' in AI with Google will correct and that Google will figure this all out," wrote Jeff McClean, chief executive officer of Solidarity Wealth. Tesla, a ticker long beloved by individual investors, has diverged from its Magnificent Seven counterparts for very different reasons, including flagging electric-vehicle sales and Elon Musk's foray into politics. Musk has pushed to transform Tesla, down 18% this year, from an EV maker into a robotics and artificial-intelligence company. The CEO recently said Tesla shareholders would vote on investing in xAI, one of his other companies. 'In the Mag Seven, there's the cool kids table—and Apple, Tesla and Alphabet, they're by the kitchen at the bad table, wishing they were at the cool kids table," Ives said. The other half of the tech-stock group has continued to reap the rewards of AI optimism. The chip giant Nvidia has been the clearest winner in the AI race thus far. The world's first $4 trillion company has split off from the Magnificent Seven more than any other. Its stock has more than tripled in the past two years. Meta and Microsoft are well-positioned too, investors said. Amazon, whose shares are up 3% year to date, has been affected by tariffs and the uncertainty regarding them. The company has invested in the AI startup Anthropic. Wall Street will be parsing second-quarter results for indications that these large tech companies are continuing to invest big in artificial intelligence. That is important given lofty valuations: Six of those seven companies recently traded at more than 25 times their expected earnings over the next year, compared with an S&P 500 average of 22.35. Alphabet was the only one below that bar. 'Earnings are going to have to be really spectacular to push these stocks significantly forward from here," said Cox of Harris Financial. 'I don't know if that's possible." In the second quarter, the Magnificent Seven are expecting 14% year-over-year net-income growth, significantly outpacing the 3% decline expected for the other 493 companies in the S&P index, according to a recent report from Morgan Stanley. Given that all seven companies have strong exposure to AI, or enough capital to make acquisitions and catch up, it is possible this divergence is temporary, according to some investors. 'The Mag Seven friends could reunite at the party over the next year, but it all depends on how they navigate the AI revolution," said Ives, the Wedbush managing director. The previous era was defined by FAANG—Facebook's parent, Meta; Amazon; Apple; Netflix; and Google's owner, Alphabet—until that group fizzled in 2023. If these companies' stocks continue heading in wildly different directions, that might leave the door open for a newly named group of hot stocks—and the Magnificent Seven could go the way of FAANG or the Nifty Fifty. Some investors are already wondering about what moniker will be next. Write to Roshan Fernandez at
Yahoo
11-07-2025
- Business
- Yahoo
Can Anything Stop Nvidia? The First $4 Trillion Company
Nvidia has officially become the first °company to cross the $4 trillion market capitalization mark, marking a historic milestone for the chipmaker at the heart of the artificial intelligence revolution. On July 9, Nvidia shares briefly surged past the symbolic threshold before settling just below it, closing nearly 2% higher at around $163 per share. The rally helped lift the Nasdaq Composite to a new record, powered by intense investor enthusiasm for AI-related stocks. Founded in 1993 by Jensen Huang, Nvidia began as a niche player designing graphics cards for video gamers. Today, it stands as a symbol of the AI era, having evolved into a dominant force that powers the infrastructure behind generative AI, large language models, and data-intensive applications. Over the last four years, Nvidia's valuation has skyrocketed from $500 billion in 2021 to just under $4 trillion—a nearly eightfold increase that reflects its central role in the AI hardware ecosystem. Nvidia's chips—known as GPUs (graphics processing units)—are now considered the gold standard for AI development. The company's rapid ascent has turned it into a barometer for the AI industry and Wall Street's go-to bet on the future of computing. According to LSEG data reported by Reuters, Nvidia's market value now exceeds the entire publicly listed equity markets of the United Kingdom, and it is worth more than Canada and Mexico's stock markets combined. Only Apple and Microsoft have come close to similar valuations, with Apple peaking at $3.915 trillion and Microsoft recently valued at $3.742 trillion. What's more striking is Nvidia's outsized influence on U.S. equity benchmarks. It now accounts for 7% of the S&P 500's total value, and together with Apple, Microsoft, Alphabet, and Amazon, the group represents 28% of the index. This concentration means that investors in passive S&P 500 funds are increasingly exposed to the performance and outlook of the AI sector, whether they realize it or not. According to Dow Jones Market Data, Nvidia is now worth as much as the 216 smallest companies in the S&P 500 combined. This level of concentration is rare in financial history and underscores how the AI trade has become the dominant force in global markets. The surge in Nvidia's stock is underpinned by insatiable demand for its AI chips, especially from tech giants racing to build next-generation data centers. Microsoft, Amazon, Meta Platforms, Alphabet, and Tesla have all ramped up capital expenditure to secure access to Nvidia's top-tier processors. In just two years, Nvidia's quarterly revenue has exploded from $7.2 billion to $44.1 billion, thanks to this relentless appetite for AI infrastructure. The company's gross margin exceeds 70%, underscoring its dominant pricing power in a high-demand environment. Despite its meteoric rise, Nvidia has faced periods of volatility. Earlier this year, it saw its stock plunge nearly 20% after the launch of DeepSeek, a surprisingly powerful and inexpensive Chinese chatbot developed using only 2,000 Nvidia H800 chips—far fewer than typical AI models require. The development raised questions about whether future AI breakthroughs might be possible with lower-cost infrastructure. Geopolitical tensions have also played a role. In April, tariff-related developments under the Trump administration triggered significant volatility across semiconductor stocks. A temporary 90-day tariff pause sparked a rally, only for sentiment to shift again when Trump raised tariffs on China to 125%. While semiconductors were initially exempt, the U.S. Commerce Department hinted that new tariffs on chip imports could arrive within weeks. The Trump administration also blacklisted several Chinese firms on national security grounds, requiring U.S. chipmakers to obtain government licenses for exports. To mitigate political and logistical risks, Nvidia is reshoring parts of its supply chain. It recently announced plans to build AI supercomputers entirely in the U.S., with more than a million square feet of manufacturing and testing spacededicated to the production of Blackwell chips in Arizona and Texas. Mass production is expected to begin within 12 to 15 months, reflecting a strategic pivot toward supply chain resilience. Nvidia continues to demonstrate a powerful uptrend on the daily chart. The stock closed at $162.82, up 1.76% yesterday, marking an impressive gain of nearly 89% from its early-April low around $85. This explosive rally reflects the market's ongoing enthusiasm for Nvidia's role at the center of the AI revolution, but also raises questions about how long the momentum can hold without a pause. The Ichimoku Cloud confirms the bullish outlook. Price action remains well above the green cloud, indicating that the trend is not only strong but well-established. The leading span A (the green cloud boundary) is sharply rising above span B, and the price remains comfortably above the Tenkan-sen (red conversion line) and Kijun-sen (blue base line). This alignment reflects bullish market sentiment with no visible signs of weakness in trend direction. The current positioning of the Ichimoku elements also means that any pullback toward the Tenkan-sen or Kijun-sen could be seen as a buying opportunity in a trending market, rather than a signal of reversal if the uptrend movement continues. Momentum is strong but approaching overheated levels. The Relative Strength Index (RSI) stands at 73.67, indicating overbought conditions. While an RSI above 70 can suggest the stock is overbought in the short term, in strong uptrends like this one, overbought readings can persist for long periods without leading to significant corrections. However, this also implies the stock could enter a consolidation phase soon, or see a modest retracement to digest recent gains. Nvidia continues to post higher highs and higher lows, maintaining a classic uptrend formation. The resistance at $164.50 around the record high, reached during the session, remains the next level to watch. A confirmed break above this zone could trigger further upside, potentially into price discovery mode, as there is little technical resistance beyond this level. On the downside, there are several near-term support levels. These include $158.10 and $155.00—previous resistance zones that may now serve as support—as well as $152.96, which marks the base of the recent breakout. While volume is not shown in the chart, the size and shape of the candles—strong, tall bodies with minimal wicks—suggest broad buying interest and conviction among investors. Volatility remains high, and sharp intraday moves should be expected, especially with Nvidia trading near all-time highs and in the spotlight of macroeconomic and policy developments, so external risks could also cloud the near-term outlook. Heightened geopolitical tensions, particularly around tariffs or new export restrictions involving China, could weigh on sentiment and trigger renewed volatility. Another potential catalyst for price movement is the upcoming earnings season. With expectations running high and Nvidia priced for perfection, any sign of slowing momentum or softer forward guidance—even if revenues remain strong—could spark a wave of profit-taking. As earnings approach, investors may become more cautious, especially given how heavily Nvidia's stock performance is tied to broader AI optimism. Sources: Wall Street Journal, Reuters, Nvidia's Website, Investopedia, Barron's This article was originally posted on FX Empire Can Anything Stop Nvidia? The First $4 Trillion Company Spot Outliers Like AI Giant NVIDIA Before They Pop Credo's Revenue Soars, Attracts Big Money Inflows Earnings and Inflows Push Heico Shares Up 34% Meta Shares: What's Next After Record Performance? Fragile Middle East Truce Heightens Geo-political, Macroeconomic Risks, Including for Europe
Mint
10-07-2025
- Business
- Mint
How Nvidia became the world's first $4 trillion company
Next Story Robbie Whelan , Asa Fitch , Muhammad Shumail , The Wall Street Journal The chip maker at the beating heart of the AI boom is embedded in gaming, data centers and crypto mining. Jensen Huang, CEO of Nvidia. Gift this article Nvidia became the first company in history to reach a market value of $4 trillion, beating rivals Apple and Microsoft to the milestone in Wednesday morning trading on the Tech-heavy Nasdaq exchange. Nvidia became the first company in history to reach a market value of $4 trillion, beating rivals Apple and Microsoft to the milestone in Wednesday morning trading on the Tech-heavy Nasdaq exchange. The AI chip giant has seen its fortunes surge over the past three years thanks to the rise of generative artificial intelligence, an emerging technology that promises to revolutionize business and remake how humans interact with technology across the globe. Nvidia, based in Santa Clara, Calif., designs the chips, known as graphics processing units, or GPUs, that power the AI industry. The rally in Nvidia's shares caps a remarkable run and comes barely two years after the company notched a $1 trillion closing valuation for the first time. The AI chip maker which closed at $162.88 a share and just shy of the $4 trillion mark, is now worth as much as the 214 smallest companies in the S&P 500 combined, according to Dow Jones Market Data. Apple and Microsoft have come close to the $4 trillion mark. Apple closed with a market cap of $3.915 trillion in late 2024, and Microsoft had a valuation of $3.708 trillion last week. Founded by Taiwanese-American engineer Jensen Huang in 1993, Nvidia initially had a much more niche purpose: making personal-computer game graphics better. Its ascendance from a graphics-chip designer catering mainly to videogamers into the digital arms dealer at the red-hot center of the AI boom has been meteoric. Earlier this year Nvidia faced one of its biggest challenges ever when DeepSeek, a lower-priced Chinese chatbot, launched after being developed much more quickly and cheaply than most large language models. DeepSeek, which was developed using about 2,000 Nvidia H800 processors—significantly fewer than most competitors use—proved that developers could create powerful AI software more cheaply and without using as much computing power as previously believed necessary. Nvidia's stock tumbled nearly 20% on that news but has more than recovered on the promise of higher spending by the company's biggest customers. In its early years, Nvidia grew with the gaming industry, becoming, alongside Advanced Micro Devices, a market leader. But Huang had bigger ambitions. There was a wider range of computational tasks that he thought his chips could accelerate. About a decade and a half ago, Nvidia planted the seeds for that to happen by developing software that allowed people to use its chips for purposes other than graphics processing. The development of cloud computing and an increased focus on scientific computing led Huang's company to a new frontier: data centers powered by Nvidia's processors. Their uses expanded from there, including for cryptocurrency mining, where they flourished for a time. It also led to their wide use in machine learning, computer vision and other nascent AI applications. Starting in the early 2010s, the company began producing increasingly powerful chips, naming each new 'architecture," or design, for famous physicists and other scientists such as James Clerk Maxwell, Johannes Kepler, Alan Turing and Ada Lovelace. For roughly two decades, Nvidia fell into a regular pace of releasing a new generation of chips every two to four years. More recently, as AI technology has ramped up, that cycle has shortened dramatically—now, the company says that it aims to maintain a cadence of releasing a new generation of chips every year. In March 2022, the company released its Hopper generation of chips, which proved a massive hit with AI software developers for its improvements in memory and computing power. Nvidia sold millions of its Hopper H100 chips in 2023 alone, helping power the company past a market value of $2 trillion. Last year, Nvidia released its newest microarchitecture, Blackwell, which represented its most powerful GPUs yet, including the B200, which crams 208 billion transistors onto a chip roughly the size of four Scrabble tiles arranged in a square. Demand has been nearly insatiable for these chips, as large customers such as Meta Platforms, OpenAI and Google-owner Alphabet race to accumulate the firepower to develop the most sophisticated chatbots and other large language models ever made. Any AI chip Nvidia could make was quickly snapped up, even though they cost tens of thousands of dollars each. Tech companies boasted about how many thousands of Nvidia chips they were buying; sprawling data centers were built to house them. Huang took on an almost Steve Jobsian aura—part-celebrity, part-oracle—cutting a distinctive figure with his signature black leather jackets. There have been some ups and downs. Both the Biden and Trump administrations have placed strict limits on Nvidia's ability to sell many of its most powerful AI chips in China, treating them almost as strategic national-security assets. In October 2023, the Biden White House curbed China sales of the company's H800 chip, a processor that Nvidia had begun offering just seven months before. Then, in April of this year, the Trump administration limited sales of another chip, the H20, to China, leading Nvidia to take a $5.5 billion write-down. 'With the current export controls, we are effectively out of the China data-center market, which is now served only by competitors such as Huawei," an Nvidia spokesman said Wednesday. Nvidia's revenue rose in tandem with its stock price. Two years ago, it had $7.2 billion of revenue in its May quarter. This year it had $44.1 billion—an enormous number for a business with a gross profit margin above 70%. Write to Robbie Whelan at Asa Fitch at and Muhammad Shumail at Topics You May Be Interested In Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
CNBC
10-07-2025
- Business
- CNBC
CCTV Script 09/07/25
On Tuesday local time, after Trump threatened to impose a 50% tariff on copper, U.S. copper futures prices surged—at one point rising by about 17% before pulling back. However, by the close of trading, prices still ended at a record high. Overnight, July-delivery COMEX copper futures rose by 66.05 cents per pound to settle at $5.645 per pound, a gain of about 13%. According to Dow Jones Market Data, this marked the largest single-day increase for that futures contract since 1968. Trump's copper tariff threat comes at a time when the U.S. and countries around the world are projecting a significant increase in copper demand over the next decade. Data centers, automakers, and utility companies are increasingly relying on copper as a key material to build power grids, produce electric vehicles, and support the development of AI and digital infrastructure. According to the U.S. Geological Survey, refined copper consumption in the U.S. in 2024 is around 1.6 million tons. Although the U.S. has abundant copper resources, it still depends on imports from key trading partners to meet demand. Chile is the largest source, accounting for 38% of imports, followed by Canada at 28%, and Mexico at 8%. Research from Morgan Stanley shows that net imports account for 36% of total U.S. copper demand. As a result, Trump's tariff threat has triggered a clear price premium for U.S. copper futures over the global benchmark, London copper futures. According to Bart Melek, Head of Commodity Strategy at TD Securities, when adjusted for exchange rates, U.S. copper prices are currently about $2,000 per ton higher than those in London. This is a significant spread that could attract more copper into U.S. warehouses, thereby putting pressure on global copper supplies. Reporting by the Financial Times also shows that many traders have rushed to ship copper into the U.S. ahead of potential tariff implementation. Large volumes of copper have already flowed into the U.S. from Europe and Asia. Some analysts describe copper trading now as the most sentiment-driven in the entire metals market. Meanwhile, regarding Trump's claim that he would impose tariffs as high as 200% on foreign-made pharmaceuticals, the U.S. pharmaceutical lobby groups have issued warnings, saying that medicines have traditionally been exempt from tariffs and that adding tariffs would raise costs and risk supply shortages. PhRMA, the largest pharmaceutical lobby group in the U.S., reiterated its opposition to tariffs on medicines in a new statement. The group said that every dollar spent on tariffs means one less dollar available for domestic manufacturing or future medical innovation. In 2024, total U.S. pharmaceutical imports amounted to around $212 billion, making medicines the country's fifth-largest import category. Experts warn that imposing tariffs on pharmaceuticals could lead to higher drug prices for Americans.'That would be potentially disastrous for every person, because we need those pharmaceuticals, and it takes those companies a very long time to produce them here in the US."
Wall Street Journal
09-07-2025
- Business
- Wall Street Journal
Nvidia Becomes World's First $4 Trillion Company
A rally in Nvidia's shares lifted its market capitalization above $4 trillion on Wednesday, a world first that caps a remarkable run for the artificial-intelligence chip maker. Nvidia stock pared gains and recently stood a little over 2.1% higher at $163.44 a share. That put it on course for an end-of-day level slightly below the threshold. The minimum level for Nvidia to retain a $4 trillion valuation at the close is $163.934, according to Dow Jones Market Data.
