Nvidia Shares Rise as Analysts Boost Price Targets Following Strong Quarter

Nvidia shares rose about 2% in premarket trading after the company addressed concerns over DeepSeek and Blackwell, reporting a strong quarterly performance and raising guidance. Bernstein, Morgan Stanley, and Bank of America increased their price targets, with BofA setting the highest at $200 per share, though Citi analysts caution the stock may remain rangebound. Despite a strong quarter, doubts persist about Nvidia’s valuation and the current limitations of AI technology.

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Nvidia Reports 80 Percent Revenue Increase Driven by AI Chip Demand

Nvidia reported a nearly 80% year-on-year revenue increase, reaching $39.3 billion for the fourth quarter, driven by strong demand for its AI-focused microchips. Data center revenue surged 93% to $35.6 billion, accounting for over 90% of total revenues. Despite a significant one-day stock drop in January, shares rose 3.67% to $131.28 following the earnings announcement.

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U S Stock Market Declines Amid Economic Concerns and Corporate Earnings Reports

U.S. stock indexes drifted lower after an early gain, with the S&P 500 down 0.3% and the Dow Jones down 243 points. Advance Auto Parts fell 19% due to profit declines, while Super Micro Computer surged 12.3% after resolving financial reporting issues. Concerns about inflation and economic prospects loom, with upcoming reports expected to influence market sentiment.

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Nvidia and Apple Strategies Amid Market Developments and AI Innovations

Nvidia’s CEO Jensen Huang will present the Blackwell platform at an event in Taipei, highlighting its advanced video capabilities. As Nvidia prepares for its earnings report, demand for Blackwell is challenged by complex production processes. Meanwhile, Apple is poised to benefit from new initiatives in China, partnering with Alibaba and Baidu on AI features, potentially boosting iPhone 16 demand.

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AI Stocks Plummet Amid Competition from Chinese Startup DeepSeek

Artificial intelligence stocks are experiencing significant declines as Wall Street reacts to the rise of DeepSeek, a Chinese startup that may have developed a competitive AI model at a lower cost. Nasdaq futures are down nearly 4%, with Nvidia, the leading AI chip manufacturer, dropping 11% in premarket trading.Investors are advised to sell during parabolic moves, as evidenced by recent profit-taking in Nvidia, Microsoft, and Alphabet. The data center sector is facing turmoil, impacting major players like Eaton and Meta Platforms, which are also seeing substantial losses.

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US Implements New AI Chip Export Restrictions Before Trump’s Inauguration

The Biden administration has implemented stringent export restrictions on AI chips and technologies, aiming to maintain U.S. dominance and prevent adversaries from exploiting these systems. While allies like the UK and Japan are exempt, countries such as China and Russia face strict bans, with new licensing requirements for over 120 nations. The rules, effective mid-May, allow for adjustments under the incoming Trump administration, with hopes for industry input on potential changes.

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Stock Market Update Nvidia and Palantir Struggle as Moderna Gains

Dow futures are struggling to recover as Nvidia’s shares rise 1.8% after a significant drop, while Palantir Technologies continues to face pressure, down another 2% following a 7.8% decline. Moderna’s stock is up over 6% after a near 12% increase on news of the first bird-flu death in the U.S., as the company develops a vaccine. Meanwhile, MicroStrategy shares are down 1.4% after a 9.8% plunge, with bitcoin prices remaining below $96k.

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Nvidia’s Keynote Highlights AI Innovations and Partnerships at CES 2025

Wall Street anticipated a muted open as the S&P 500 and Nasdaq saw gains for a second consecutive session, driven by tech stocks, particularly Nvidia, which hit a record close. At CES, CEO Jensen Huang showcased new AI applications, including a groundbreaking video game chip and advancements in robotics, while highlighting Nvidia’s partnership with Toyota for self-driving technology, boosting shares of both companies.

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Wall Street Reacts to Strong Economic Reports and Rising Bond Yields

U.S. stock indexes faced pressure as positive economic reports led to rising bond yields, diminishing hopes for further interest rate cuts by the Federal Reserve. The S&P 500 fell 0.3%, with Nvidia dropping 5.1% after a strong product announcement, while Cintas rose 3.3% following its acquisition offer for UniFirst. In international markets, notable Chinese companies declined after being added to a U.S. Defense Department list linked to military ties, impacting the Hang Seng index.

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