Morning Bid: Chinese Markets Join the AI Craze
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 01 2025
0mins
Should l Buy NVDA?
Source: Reuters
Market Overview
- September Market Trends: The start of September has shown resistance, with much of Asia experiencing declines and Wall Street on holiday, leading to flat S&P 500 futures. Historically, September is a challenging month for markets.
- European and Chinese Markets: European share futures have remained stable, while China's market is buoyed by significant liquidity. Chinese blue chips rose over 10% in August, partly due to discussions about developing domestic alternatives to Nvidia's AI chips.
Notable Stock Movements
- Alibaba's Surge: Alibaba's Hong Kong shares surged nearly 19%, marking the largest single-day increase since early 2022, driven by optimism regarding its cloud business and reports of AI model training using Huawei chips.
- Japanese Market Reactions: The Japanese chipmaker Advantest saw a 9.1% drop, reversing some of its nearly 50% gains over the past three months. SoftBank Group, focused on AI investments, also fell by 6%, contributing to a 2% loss for the Nikkei index.
Trade Policy Implications
- Trump's Legal Challenges: Chinese investors are reportedly encouraged by President Trump's ongoing legal challenges regarding his tariff policies. While tariffs remain in place, a Supreme Court ruling expected in October could impact negotiations with trading partners.
- Potential Economic Consequences: If the Supreme Court upholds the appeals court ruling, it could nullify many trade agreements and diminish Trump's negotiating power. The Treasury may face logistical challenges in repaying over $100 billion collected from tariffs, raising questions about price adjustments by importers and the anticipated $3 trillion in tax revenue.
Upcoming Market Influences
- Key Economic Indicators: Important developments to watch include the release of European PMIs for August and EU unemployment data for July.
- ECB Leadership Engagement: A speech by ECB President Christine Lagarde and appearances by ECB Board members Piero Cipollone and Isabel Schnabel are also anticipated to influence market sentiment.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 264.97 USD with a low forecast of 200.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 171.880
Low
200.00
Averages
264.97
High
352.00
Current: 171.880
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Nvidia vs. Oracle: Compelling Investment Stories
- Nvidia's Market Performance: Nvidia's stock has surged over 700% in the past three years, pushing its market capitalization beyond $4 trillion, making it the largest company globally, which highlights its dominant position in high-performance AI applications and attracts significant investor interest.
- Oracle's Market Challenges: Oracle, with a market cap of $440 billion, has seen its stock drop over 52% since last September, primarily due to high spending on AI infrastructure and a debt exceeding $100 billion, raising concerns about its financial health among investors.
- Financial Performance Highlights: Oracle's recent Q2 FY2026 earnings report revealed a 14% year-over-year revenue increase to $16.05 billion, with net income soaring 95% to $6.13 billion, including a $2.7 billion pre-tax gain, showcasing its strong growth potential in the cloud computing sector.
- Future Growth Expectations: Despite facing debt pressures, Oracle's forward price-to-earnings ratio stands at just 19.8, indicating that its stock is at a two-year low, and analysts expect significant revenue growth in the future, potentially providing a good buying opportunity for investors.
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- Strong Debut Performance: Montage Technology's shares surged approximately 60% on their Hong Kong debut, climbing from the offering price of HK$106.89 to HK$171, indicating robust market demand for its high-performance semiconductors and reinforcing its position in the cloud computing and AI sectors.
- Significant Fundraising: The IPO raised $902 million, reflecting strong investor interest in Chinese AI and semiconductor firms, particularly as the public tranche was oversubscribed by more than 700 times and the international offering was nearly 38 times covered.
- Intensifying Market Competition: Despite Montage's successful listing, competition is heating up, with Huawei and its chip unit HiSilicon holding a leading share of the domestic market, suggesting that the push for self-sufficiency will lead to fiercer rivalry within the industry.
- Evolving Policy Landscape: As the Chinese government intensifies efforts for self-sufficiency in advanced chips, the recent approval for Nvidia's H200 imports under specific conditions highlights the uncertainty in policy that could impact market dynamics.
See More
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- Palantir Financial Performance: Palantir Technologies reported a 70% revenue increase in Q4, reaching $1.4 billion, marking its tenth consecutive acceleration, while non-GAAP net income surged 79% to $0.25 per share, indicating strong growth potential in the AI sector.
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- Comfort Systems Business Advantage: Comfort Systems operates over 50 subsidiaries in HVAC and electrical services, serving diverse industries such as healthcare, manufacturing, and technology, with its modular construction capabilities significantly reducing time and costs, enhancing market competitiveness.
- Strong Financial Growth: Comfort Systems reported a 35% revenue increase to $2.4 billion in Q3, with GAAP net income rising 101% to $8.25 per share, and a 66% increase in revenue backlog, indicating robust future sales growth.
See More
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- Hedge Fund Accumulation: Billionaires Ken Griffin and Cliff Asness increased their stakes in Palantir Technologies during Q3, a stock that has surged 2,000% since January 2023, indicating robust market demand and investor confidence.
- Strong Performance of Comfort Systems: Israel Englander and Steven Cohen also bought shares of Comfort Systems in Q3, which has seen a 970% increase in stock price since January 2023, reflecting strong growth potential in the HVAC and data center cooling systems market.
- Palantir's Impressive Financials: Palantir reported a 70% year-over-year revenue increase to $1.4 billion in Q4, with non-GAAP net income soaring 79% to $0.25 per share, showcasing its strong performance and market leadership in the AI software sector.
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See More
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- Market Pullback Impact: AI stocks experienced a brief 10% pullback in early 2026, yet they remain near recent highs, indicating sustained market interest and potential in this sector.
- ETF Investment Opportunity: The Global X Artificial Intelligence & Technology ETF (NASDAQ: AIQ) invests across the AI ecosystem, with 28% allocated to non-tech companies, enhancing its resilience in the current macroeconomic environment.
- Capital Expenditure Growth: As companies like Meta increase AI capital expenditures, the scope of AI investment is broadening, providing strong growth opportunities for the ETF's diversified portfolio, which is expected to drive future performance.
- Interest Rate Expectations: The market is pricing in two potential interest rate cuts in 2026, which would support growth in AI-related stocks and improve financials, thereby boosting investor confidence.
See More
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- Big Tech Valuation Loss: According to FactSet, major tech companies collectively lost over $1 trillion in valuation over the past week, with Amazon alone shedding more than $300 billion, indicating a significant decline in market confidence that could impact future investment decisions.
- Sex Crime Scandal Exposure: Prominent Silicon Valley figures, including Google co-founder Sergey Brin and LinkedIn co-founder Reid Hoffman, have been linked to files related to sex offender Jeffrey Epstein, which may have long-term reputational consequences for their companies and exacerbate public trust issues in the tech industry.
- Japanese Election Outcome: Japan's ruling Liberal Democratic Party secured a supermajority in the recent election, reinstating Sanae Takaichi as Prime Minister, which grants her broad authority to boost spending and suspend certain food taxes; this result has bolstered Japanese stocks and strengthened the yen to 156.88 against the dollar, reflecting renewed investor confidence.
- U.S. Market Rebound: The Dow Jones Industrial Average closed above 50,000 for the first time, marking a strong market rebound, while the S&P 500 and Nasdaq Composite rose by 1.97% and 2.18%, respectively, a trend that could attract more investors back into the market and drive economic recovery.
See More
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- Nvidia's Market Performance: Nvidia's stock has surged over 700% in the past three years, pushing its market capitalization beyond $4 trillion, making it the largest company globally, which highlights its dominant position in high-performance AI applications and attracts significant investor interest.
- Oracle's Market Challenges: Oracle, with a market cap of $440 billion, has seen its stock drop over 52% since last September, primarily due to high spending on AI infrastructure and a debt exceeding $100 billion, raising concerns about its financial health among investors.
- Financial Performance Highlights: Oracle's recent Q2 FY2026 earnings report revealed a 14% year-over-year revenue increase to $16.05 billion, with net income soaring 95% to $6.13 billion, including a $2.7 billion pre-tax gain, showcasing its strong growth potential in the cloud computing sector.
- Future Growth Expectations: Despite facing debt pressures, Oracle's forward price-to-earnings ratio stands at just 19.8, indicating that its stock is at a two-year low, and analysts expect significant revenue growth in the future, potentially providing a good buying opportunity for investors.
See More
Montage Technology Shares Surge 60% on Hong Kong Debut, Raising $902 Million
- Strong Debut Performance: Montage Technology's shares surged approximately 60% on their Hong Kong debut, climbing from the offering price of HK$106.89 to HK$171, indicating robust market demand for its high-performance semiconductors and reinforcing its position in the cloud computing and AI sectors.
- Significant Fundraising: The IPO raised $902 million, reflecting strong investor interest in Chinese AI and semiconductor firms, particularly as the public tranche was oversubscribed by more than 700 times and the international offering was nearly 38 times covered.
- Intensifying Market Competition: Despite Montage's successful listing, competition is heating up, with Huawei and its chip unit HiSilicon holding a leading share of the domestic market, suggesting that the push for self-sufficiency will lead to fiercer rivalry within the industry.
- Evolving Policy Landscape: As the Chinese government intensifies efforts for self-sufficiency in advanced chips, the recent approval for Nvidia's H200 imports under specific conditions highlights the uncertainty in policy that could impact market dynamics.
See More
Investment Trends in Semiconductor Stocks
- Palantir Financial Performance: Palantir Technologies reported a 70% revenue increase in Q4, reaching $1.4 billion, marking its tenth consecutive acceleration, while non-GAAP net income surged 79% to $0.25 per share, indicating strong growth potential in the AI sector.
- Valuation Challenges: Despite Palantir's high P/E ratio of 214 and projected earnings growth of 45% annually over the next three years, the current valuation raises caution among investors, as the stock could face a potential 50% drop in the future.
- Comfort Systems Business Advantage: Comfort Systems operates over 50 subsidiaries in HVAC and electrical services, serving diverse industries such as healthcare, manufacturing, and technology, with its modular construction capabilities significantly reducing time and costs, enhancing market competitiveness.
- Strong Financial Growth: Comfort Systems reported a 35% revenue increase to $2.4 billion in Q3, with GAAP net income rising 101% to $8.25 per share, and a 66% increase in revenue backlog, indicating robust future sales growth.
See More
Hedge Fund Billionaires Increase Stakes in Tech Stocks
- Hedge Fund Accumulation: Billionaires Ken Griffin and Cliff Asness increased their stakes in Palantir Technologies during Q3, a stock that has surged 2,000% since January 2023, indicating robust market demand and investor confidence.
- Strong Performance of Comfort Systems: Israel Englander and Steven Cohen also bought shares of Comfort Systems in Q3, which has seen a 970% increase in stock price since January 2023, reflecting strong growth potential in the HVAC and data center cooling systems market.
- Palantir's Impressive Financials: Palantir reported a 70% year-over-year revenue increase to $1.4 billion in Q4, with non-GAAP net income soaring 79% to $0.25 per share, showcasing its strong performance and market leadership in the AI software sector.
- Future Outlook for Comfort Systems: Comfort Systems achieved a 35% revenue increase to $2.4 billion in Q3, with a 3 percentage point expansion in operating margin and a 66% rise in revenue backlog, indicating significant future sales growth potential with an expected annual growth rate of 39% over the next three years.
See More
Analysis of Investment Prospects for AI ETFs
- Market Pullback Impact: AI stocks experienced a brief 10% pullback in early 2026, yet they remain near recent highs, indicating sustained market interest and potential in this sector.
- ETF Investment Opportunity: The Global X Artificial Intelligence & Technology ETF (NASDAQ: AIQ) invests across the AI ecosystem, with 28% allocated to non-tech companies, enhancing its resilience in the current macroeconomic environment.
- Capital Expenditure Growth: As companies like Meta increase AI capital expenditures, the scope of AI investment is broadening, providing strong growth opportunities for the ETF's diversified portfolio, which is expected to drive future performance.
- Interest Rate Expectations: The market is pricing in two potential interest rate cuts in 2026, which would support growth in AI-related stocks and improve financials, thereby boosting investor confidence.
See More
Big Tech Loses Over $1 Trillion in Valuation
- Big Tech Valuation Loss: According to FactSet, major tech companies collectively lost over $1 trillion in valuation over the past week, with Amazon alone shedding more than $300 billion, indicating a significant decline in market confidence that could impact future investment decisions.
- Sex Crime Scandal Exposure: Prominent Silicon Valley figures, including Google co-founder Sergey Brin and LinkedIn co-founder Reid Hoffman, have been linked to files related to sex offender Jeffrey Epstein, which may have long-term reputational consequences for their companies and exacerbate public trust issues in the tech industry.
- Japanese Election Outcome: Japan's ruling Liberal Democratic Party secured a supermajority in the recent election, reinstating Sanae Takaichi as Prime Minister, which grants her broad authority to boost spending and suspend certain food taxes; this result has bolstered Japanese stocks and strengthened the yen to 156.88 against the dollar, reflecting renewed investor confidence.
- U.S. Market Rebound: The Dow Jones Industrial Average closed above 50,000 for the first time, marking a strong market rebound, while the S&P 500 and Nasdaq Composite rose by 1.97% and 2.18%, respectively, a trend that could attract more investors back into the market and drive economic recovery.
See More
