See the full story in the original article.
Read the original on Yahoo Finance ↗
Keywords
NVDAsemiconductorsChinaartificial intelligence
Open a keyword to see other news on the same topic.
Related tickers and likely impact
NVDA
▲ Likely positiveNvidia
Relevance: high
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.2T |
| Close on 10/19/2026 | 217.09 |
| Change that session | +1.38% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- DeepSeek teams up with Huawei to challenge Nvidia
DeepSeek is working with Huawei Technologies to design AI chips tailored to its models, with Huawei engineers stationed at its offices to incorporate feedback. DeepSeek plans to use Huawei's Ascend 950DT chips for model training as soon as the end of 2026, and Huawei plans to prioritize DeepSeek for most of its Ascend 960DT chips expected in the first quarter of 2027. According to Epoch AI, Nvidia's B300 delivers roughly seven times the raw arithmetic performance of Huawei's Ascend 950, and training a frontier model could require more than 10,000 Huawei chips working together for weeks. DeepSeek is also using the open-source TileLang to reduce reliance on Nvidia's CUDA ecosystem, while still seeking access to Nvidia's advanced processors. If the collaboration succeeds, it could offer a blueprint for other AI developers and a major step in reducing China's dependence on US technology.
- Nvidia Reportedly Sees Alibaba, ByteDance, Tencent Order $35B In RTX PRO 5500 Chips Amid US Export Curbs
Reuters reported that Alibaba, Tencent, ByteDance and other Chinese firms have ordered over $70 billion worth of Nvidia's RTX PRO 5500 workstation graphics cards, with the three named companies accounting for more than 3 million units worth over $35 billion. Total orders from Chinese customers exceed 6 million units. Nvidia reportedly told partners it cannot guarantee fulfillment because demand exceeds planned production, and one source said it may deliver only 5% to 10% of the total order amount. The orders come as U.S. export controls bar sales of Nvidia's Blackwell-based B300 and limit H200 sales to case-by-case approval. Chinese companies reportedly want the less powerful RTX PRO 5500 mainly for AI inference, and NVDA stock edged 0.18% lower in pre-market trade.
- ByteDance, Alibaba and Tencent order $35 billion of Nvidia chips: Reuters
Nvidia has told customers it cannot guarantee fulfilling orders for its RTX PRO 5500 graphics cards, as demand from Chinese tech companies exceeds planned production, according to Reuters. ByteDance, Alibaba and Tencent ordered more than 3 million cards worth over $35 billion, at about $11,400 each. Nvidia reportedly told partners they might receive only 5% to 10% of requested quantities, and it can produce no more than 3 million RTX PRO 5500 cards globally in 2027. Total orders from Chinese customers exceed 6 million units. The RTX PRO 5500 is among the most powerful Nvidia chips still available to Chinese buyers under U.S. export restrictions, which bar the B300 and require case-by-case licensing for the H200.
- US chip bans help Huawei: Nvidia down to 34% of China market
According to IDC data cited by Reuters and TechNode, Nvidia's share of AI chips for data centers in China fell to 34% in the first half of 2026, with the company shipping 678,000 chips, down 44% from a year earlier. Huawei was the biggest beneficiary, shipping 572,000 chips, up sharply from more than 300,000 a year earlier, and holding a 28% share. The article attributes the shift to tightening U.S. export restrictions on advanced chips, which pushed Chinese data centers to move orders to domestic suppliers. The top five domestic chip designers now account for 47% of AI chip consumption in China, surpassing Nvidia. For Vietnam, the article notes that as Chinese software is optimized for Huawei and Alibaba chips, technical leaders will need to weigh software compatibility to avoid being caught between the two diverging technology standards.
- China Moves to Control AI Tech Exports While Taiwan Cracks Down on Smuggling
- Super Micro (SMCI) Won Over $60 Billion in Orders, Is the Discount Deserved?
A contractor linked to Super Micro Computer (SMCI) pleaded guilty earlier this month to helping ship servers with advanced Nvidia chips to China, a case prosecutors say involved billions of dollars of U.S. AI technology, though the company says it was not named as a defendant and its operations are unaffected. Sales for the fiscal year ended June reached $39.1 billion, up from $22.0 billion, with CEO Charles Liang citing more than $60 billion in new orders, several hundred added enterprise customers, and a record backlog. Management guides to $65.0 billion to $72.0 billion in fiscal 2027 sales, and sales have grown about 61.5% a year over five years. Gross margin was 10.8% for the full year but rose to 17.5% in the June quarter, with net income of $1,178 million, while the trailing 12-month operating margin was 7.09%. The article notes the stock trades at a much lower multiple of expected earnings than the sector, and that one strong quarter does not yet prove a new margin level.
Related markets
Latest news
- Why Is Nike Stock Falling, and Is It a Buying Opportunity?
Nike's stock has fallen 41.7% over the past year and 76.5% over the past five years, even though the company remains profitable and has a turnaround plan. The article blames a lack of innovation, failure to keep pace with changing consumer tastes, a shift away from wholesalers toward direct sales, and weakness in China, where Greater China sales fell 22% to $1.1 billion in Q1 fiscal 2027. Total first-quarter sales fell 4% to $11.2 billion, and net income fell 2% to $712 million. Nike expects fiscal 2027 revenue to drop by a high-single-digit percentage and plans to cut 1,400 jobs. The author argues there are few near-term catalysts to reignite investor interest, so betting on a rebound carries both risk and opportunity cost.
- Investors look to earnings to reset the bull market. The key level to watch on the S&P 500
The S&P 500 remains in an uptrend but is chopping around a flat 50-day moving average, a level first reached 11 weeks ago. AI-hardware stocks have sold off sharply, bank shares are trading poorly after results, credit markets are under strain, and the Nasdaq has retreated 5%. JP Morgan's Jason Hunter leans cautious, saying a further drop of about 2.5% to 7500 would cost the market the benefit of the doubt. The article recalls 2018, when the S&P 500 fell 19% in the fourth quarter of a midterm year even as earnings grew more than 20%, while tightening now comes from higher Treasury yields, wider credit spreads and a stronger dollar. Bank of America's Aditya Bhave maintains a non-consensus call for an October Fed rate hike, while Morgan Stanley's Mike Wilson argues Chairman Warsh should acknowledge the tightening.
- Why AI could make universal basic income necessary
In the Loop host Ejaaz Ahamadeen explores a scenario in which AI replaces both mental and physical human work, and asks whether higher-order creativity would make universal basic income necessary. He notes that OpenAI, Google, Elon Musk and, by extension, SpaceX have all discussed the idea, with Anthropic taking the first steps in that direction. He argues that human purpose has always been to invent and innovate, and that with more free time people could focus on higher-order thinking, such as managing fleets of AI agents. Still, he admits to an unsettling feeling, since Anthropic's own announcement acknowledged that the resulting disruption is unknown.
- Will Interest Rates or Chips Decide the AI Trade?
On October 19, Jim Cramer said on Mad Money that investors should focus more on interest rates than on whether GPUs hold their value, and set a warning level at a 30-year Treasury yield above 6%. The 30-year yield closed at 5.48% that day, after reaching 5.67% on October 7. The article cites rising pressure on AI infrastructure: Oracle's interest expense rose 55% to $1.4 billion in fiscal Q1 2027 with free cash flow of −$5.4 billion, and Equinix expects its blended cost of capital to rise about 150 basis points. Panelists also flagged a duration mismatch, with long-term debt backed by contracts customers can walk away from, as when Microsoft vacated a UK lease that Anthropic reportedly took over. Nvidia's finance chief projected top-five hyperscaler capex of nearly $800 billion in 2026 and $1.3 trillion in 2027, so a growth slowdown could hit stock prices hard.
- Novo's next-generation obesity drug shows 25% weight loss in women in late-stage analysis
Novo said its next-generation obesity drug CagriSema led to an average 25% weight loss among women at 68 weeks in a new analysis following a late-stage trial, versus 3% with placebo. The result assumes all patients stayed on treatment without interruption, and Novo says further work is needed to confirm two post-study analyses. A separate analysis of about 1,900 women found weight loss of 26.7% in premenopausal, 24.8% in perimenopausal and 23.1% in postmenopausal women. The drug is expected to launch early next year, though investors have been lukewarm after earlier trial results fell short of expectations, and analysts forecast $11.84 billion in 2028 obesity sales per FactSet consensus.
- Up 35%, Should You Buy SpaceX Stock Right Now?
SpaceX (SPCX) shares have risen about 35% from their August low as investor confidence grows, though they remain roughly 10% below their first-day closing price. The company's second-quarter report showed revenue up 92% year over year and a net loss cut almost in half. Starlink subscriptions doubled to 12 million, with more than 11,000 satellites in orbit, while xAI revenue rose 247% and it signed multiyear contracts with Alphabet and Anthropic. The author argues that a price-to-sales multiple of 68, far above the S&P 500's average of 3.8, does not justify the risk given a major lockup ending in December and the company's lack of profit, though he would consider buying at a different valuation.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.