Nvidia is headquartered in Santa Clara, California.
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This report comes from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open keeps investors updated on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
Dow Jones index continues to fall
on Monday, Dow Jones Industrial Average It fell 0.25% for the eighth consecutive day, the longest losing streak since 2018. S&P 500 Index up 0.38% Nasdaq Index It rose 1.24% and closed at a new high. Asia-Pacific markets were mixed on Tuesday. China’s CSI 300 index rose about 0.4% after the legislative session It is said There are plans to increase the state budget deficit in 2025.
Correction: NVIDIA
NVIDIA Shares fell 1.7% to close at $132 on Monday. That’s down about 11% from November’s closing high of $148.88, putting Nvidia in correction territory. Still, Nvidia is up 166% this year, and a pullback doesn’t necessarily mean a continued downward trend. Additionally, other wafer manufacturers, e.g. Broadcomstill forging ahead.
Waymo paving the way in Tokyo
Waymo announced on Monday that it will begin testing its self-driving cars in Tokyo in 2025. This is the first time that an Alphabet company has entered the international market, and it is also a left-hand drive. Local taxi operator Nihon Kotsu and taxi app GO will become Waymo’s partners in Tokyo.
Investment incentives or deterrents?
Indonesia bans sales Apple’s iPhone 16 will launch in October as it law Companies are asked to invest or source parts from the country. The government is now asking Apple Invest US$1 billion Manufacturing mobile phone parts in Indonesia. However, analysts believe this strategy to attract investment may backfire.
(PRO) Small European companies too
U.S. small and medium-sized businesses have been attracting attention and capital inflows in recent weeks amid Trump’s ostensible focus on the domestic economy. Across the Atlantic, European companies of this size are also likely to outperform their larger peers over the coming month, Deutsche Bank strategists said.
bottom line
Playing the stock market feels like playing a Mario Kart game.
(For those unfamiliar with the fun of Mario Kart, it’s a racing game involving Nintendo’s Mario and his friends.)
One moment you’re comfortably ahead and the next moment someone’s falling behind you because you’re teetering on the turn.
Nvidia’s current situation is not enviable.
The frustrating thing for Nvidia and its shareholders is that besides After an investigation by Chinese regulators, there were no other major obstacles along the way: in fact, the company’s fundamentals are stable.
As Truist co-chief investment officer Keith Lerner pointed out, Nvidia’s position in the semiconductor and artificial intelligence industries remains unchanged. “You need Nvidia, you need their infrastructure chips,” Lerner said. “But I think the market is also indicating that there are other beneficiaries beyond that.”
The fact that the Nasdaq Composite hit a new high despite Nvidia’s decline suggests a shift toward other semiconductor and artificial intelligence-related stocks.
Most notably, Broadcom shares soared on Friday and Monday, driven by a strong fourth-quarter earnings report and raised price targets from banks.
“Momentum has been driving this stock,” said Kim Forrest, chief investment officer at Bokeh Capital Partners. “I don’t think momentum has completely killed it yet, but momentum will do what momentum does, which is to seek higher.” flight altitude.
The main difference between playing Stock Market and Mario Kart is that the latter is a zero-sum game – if your friend wins, you lose – but that’s not always the case with the former. You can own both Nvidia and Broadcom and benefit from whoever is the leader.
—CNBC’s Ari Levy, Samantha Subin, Brian Evans and Jess Pound contributed to this report.
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