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U.S. lawmakers are demanding that the Department of Commerce disclose the approval status of NVIDIA's H200 chip exports to China and publish it within 48 hours after the license is granted. Senator Elizabeth Warren and Representative Gregory Meeks hope to hold a briefing before the license is issued to assess the chip's military potential and the reactions of allies. The Trump administration allowed the sale of the H200 chip but required a 25% fee, aimed at reducing demand for Chinese chips and maintaining the competitive edge of U.S. companies
The article compares Tesla and Nvidia as investment options for 2026. Tesla's stock is driven by excitement over its AI and robotics projects, but its profitability is declining due to rising costs and slowing growth. Nvidia, however, is capitalizing on AI opportunities with its GPUs and has a strong cash flow and reasonable valuation. While Tesla's valuation is speculative, Nvidia offers a better risk-reward profile for 2026, trading at 37.2 times forward earnings compared to Tesla's 292.9.
Asian markets rallied as optimism for US interest rate cuts and easing AI fears boosted investor sentiment. Precious metals hit record highs due to rate cut expectations. US data showing rising unemployment and slowing inflation provided the Federal Reserve room to lower borrowing costs. Tech stocks, led by Nvidia and Tesla, drove gains. Geopolitical factors, including US actions against Venezuela, influenced oil prices. Key indices in Tokyo, Hong Kong, and Shanghai rose, while oil prices dipped slightly.
The Christmas rally in the US stock market drives Hong Kong stocks to challenge 26,000. The three major US indices rose on Monday, with the Dow up 227 points, the S&P up 43 points, and the Nasdaq up 121 points. Heavyweights like Nvidia, Tesla, Oracle, and Micron performed strongly. Geopolitical tensions and expectations of interest rate cuts by the Federal Reserve pushed up gold and silver prices. Goldman Sachs strategists expect a wealth of investment opportunities in US small-cap stocks next year. After the Bank of Japan raised interest rates, the yen fell instead of rising
Dan Ives, lead technology analyst at Wedbush Securities, expects Microsoft's stock to rise nearly 30% by 2026, driven by AI growth. He reiterates a Buy rating with a $625 price target, 29% higher than current levels. Ives believes Microsoft's AI investments will pay off, adding $25 billion to revenue by fiscal 2026. MSFT stock has a consensus Strong Buy rating among analysts.
