markets

Luke Kawa1/29/25

Microsoft tumbles after its AI-enhanced cloud business fails to make it rain

Shares of Microsoft initially tumbled nearly 6% after its critical Azure cloud business brought in slightly less money than expected in the final three months of 2024. The stock since pared much of those losses.

The 31% growth (in constant currency terms) for that segment matched the lowest analyst’s estimate.

Adjusted earnings per share of $3.23, however, managed to beat the projected $3.12.

While AI may be additive to the company’s returns, that contribution wasn’t big enough or fast enough this quarter. Chairman and CEO Satya Nadella said that the firm’s AI business has an annual revenue run rate of $13 billion; AI tools added 13 points to Azure’s revenue growth this quarter, one percentage point better than the prior quarter.

These AI-linked outlays are poised to increase, management said.

“We expect capital expenditures to increase in coming years to support growth in our cloud offerings and our investments in AI infrastructure and training,” according to the 10-Q.

Separately, Microsoft is saying that DeepSeek ripped off OpenAI’s ChatGPT, but added one of those models to its cloud nonetheless.

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Tasha Matsumoto

Stocks rebound from yesterday’s sell-off but still post weekly losses

The rally was broad-based, with every sector ETF rising.

Chicago Bulls Dennis Rodman (91) and Michael Jordan (23) in action, rebounding vs Charlotte Hornets

How bitcoin’s moves show that the stock market is actually fueled by vibes

Bitcoin has been strongly correlated with the S&P 500; the low-volatility stocks within the S&P 500 have not.

Roller coaster steel car full of riders

markets

Luke Kawa11/21/25

Nvidia spikes on report that the Trump administration is considering letting Nvidia sell its best Hopper chips to China

One big headline really can change price action.

Shares of Nvidia popped 2% after Bloomberg reported that the Trump administration is internally discussing the idea of letting Nvidia sell its H200 chips to China. These chips, unlike the H20, are not the nerfed versions that Nvidia designed specifically for sale to China, but rather are its best chips from its Hopper generation, which preceded Blackwell.

The president had mused about allowing Nvidia to sell Blackwell chips to China ahead of talks with Chinese President Xi in late October, but this item was reportedly axed from the agenda at the last minute, per The Wall Street Journal.

Nvidia’s success in 2025 has come despite, not because of, its China business. New export restrictions weighed on its ability to send H20 chips to the world’s second-largest economy. The company took a $4.5 billion impairment charge in its Q1 earnings related to this export ban, and said Q2 sales would have been $8 billion higher if these curbs were not in effect.

After Nvidia reached a deal with the Trump administration that restored its ability to ship that chip, China reportedly responded by banning its domestic technology companies from buying these semiconductors.

“Sizable purchase orders [for the H20] never materialized in the quarter due to geopolitical issues and the increasingly competitive market in China,” CFO Colette Kress said on a conference call with analysts on Wednesday.

Ahead of Nvidia’s earnings report, this headline had hit the wires:

*TRUMP: IF NVIDIA’S HUANG IS HAPPY, I’M HAPPY

Well, the CEO didn’t seem too thrilled by the market’s reaction to the chip designer’s strong Q3 results. Perhaps this will cheer him up.

Pharmaceutical Company Eli Lilly Headquarters

Eli Lilly jumps into the tech-dominated $1 trillion club

Lilly is crossing $1 trillion in market cap just as Wall Street is getting jittery over a potential AI bubble.

J. Edward Moreno11/21/25

Max Knoblauch11/21/25

Airlines climb on falling oil prices as the US pushes for a Russia-Ukraine peace deal

Oil prices fell on Friday, with West Texas Intermediate crude futures down more than 2% amid a US push for a peace plan between Russia and Ukraine. The US has reportedly pitched a deal that would see Ukraine cede land to Russia and agree to never join NATO.

As the market repeatedly shows: what’s bad for crude is good for airlines, which stand to benefit from lower fuel costs. Shares of major US carriers are up on oil’s price action, with Southwest Airlines up more than 5% and the rest of the big four airlines — American Airlines, Delta Air Lines, and United Airlines — up more than 3%.

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