Markets
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Luke Kawa

Nvidia’s tumble rolls on as CEO Jensen Huang continues to talk about the one thing going wrong for the chip designer

Nvidia is down again in premarket trading as CEO Jensen Huang continues to talk about perhaps the one thing that isn’t going well for the world’s largest publicly traded company: China.

The chip designer has dropped more than 9% in the three days ended Thursday. That’s its biggest such tumble since April 7, the three sessions that followed President Donald Trump’s Rose Garden tariff announcements on April 2.

“Currently, we are not planning to ship anything to China,” Huang said on Friday while in Taiwan, per Reuters.

As it relates to Blackwell chips, this is the equivalent of me saying that I have no plans to ship raw elephant ivory tusks back home to Canada. For starters, I don’t have any, and secondly, it wouldn’t be legal.

And on the H20 side, China simply does not want the nerfed chips; or more precisely, policymakers are not allowing their tech champions to act upon any potential desire to get their hands on those GPUs. As Huang noted, the ball is in China’s court here.

“It’s up to China when they would like Nvidia products to go back to serve the Chinese market. I look forward to them changing their policy,” he said, per Reuters.

It’s not clear that analysts were ever expecting much of a pickup in Nvidia’s China business, even after export restrictions on the H20 were lifted.

Huang also further watered down his stance on the state of the AI race after the Financial Times reported that he said, “China is going to win the AI race,” earlier this week.

Not to get too deep into the sausage-making process of news here, but when an outlet as credible and prestigious as the FT is putting quotes around words and attributing them to the leader of the most valuable publicly traded company in the world, I personally feel fairly confident that those words were actually said.

“That’s not what I said,” Huang said, per Reuters. “What I said was that China has very good AI technology. They have many AI researchers.”

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Luke Kawa
BEAR NECESSITIES
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The insanity over the Starbucks “Bearista” cups tells you everything you need to know about the US economy and markets

Upper-income consumers and megacap tech companies are both a) doing well and b) supply constrained.

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Luke Kawa

Retail traders are “skipping the dip” this time

Here’s one noteworthy feature of the recent market downturn that has the S&P 500 poised for its worst week since reciprocal tariffs were announced in early April: retail traders seemingly aren’t eager to buy the weakness in single stocks the way they used to be.

JPMorgan strategist Arun Jain has flagged that retail traders instead appear to be “skipping the dip.”

“In contrast to the behavior observed during the post-Liberation Day selloff, retail investors did not seize the opportunity to buy-the-dip on Tuesday, with a few exceptions such as META,” he wrote of the day where the benchmark US stock index fell 1.2%. “In fact, they scaled back their ETF purchases and turned net sellers in single stocks.”

Then on Thursday, when the S&P 500 fell 1.1%, Jain estimated that retail traders sold $261 million in single stocks.

With that intel, it’s little wonder why the carnage this week has been particularly intense in more speculative single stocks that had been favored by the retail community, including IREN, IonQ, Rigetti, Cipher Mining, Bloom Energy, and Oklo.

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Max Knoblauch

Archer Aviation plunges on $650 million share sale following its third-quarter results

Air taxi maker Archer Aviation is deep in the red on Friday morning after reporting its third-quarter results after the bell Thursday. The stock is down more than 12%.

Investors don’t appear to be thrilled about the company’s $650 million direct stock offering, announced alongside its results.

The move marks at least the third major equity raise, and dilution, for Archer this year. The company raised $300 million from a new stock sale in February, and sold $850 million worth of shares in June.

On Archer’s earnings call Thursday, interim CFO Priya Gupta said the company came to the decision after “substantial inbound interest.” According to Gupta, the company has heard from government and commercial partners that liquidity is a “key driver to their decisions of who to partner with.” With its latest share sale, Archer said its total liquidity is more than $2 billion.

Archer Aviation sinks after reporting better-than-expected Q3 loss, announces it will acquire LA’s Hawthorne Airport

Archer Aviation sinks after reporting better-than-expected Q3 loss, announces it will acquire LA’s Hawthorne Airport

The move marks at least the third major equity raise, and dilution, for Archer this year. The company raised $300 million from a new stock sale in February, and sold $850 million worth of shares in June.

On Archer’s earnings call Thursday, interim CFO Priya Gupta said the company came to the decision after “substantial inbound interest.” According to Gupta, the company has heard from government and commercial partners that liquidity is a “key driver to their decisions of who to partner with.” With its latest share sale, Archer said its total liquidity is more than $2 billion.

Matt Phillips
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Top AI energy trade Constellation Energy slips on earnings

The largest nuclear power provider in the US has soared on the prospect of relentless demand from data centers.

Constellation Energy reports earnings

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