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- 📈 Nvidia's $44B AI Revenue Surge
📈 Nvidia's $44B AI Revenue Surge
Trump Bans China Chip Software, Telegram Partners With Musk's xAI, Dick's Holds Guidance Despite Tariffs, E.l.f. Acquires Rhode for $1B, US Cuts Moderna Bird Flu
Evelio Silvera
May 29, 2025
Good morning.
⚡ The Fast Five → Trump Bans China Chip Software, Telegram Partners With Musk's xAI, Dick's Holds Guidance Despite Tariffs, E.l.f. Acquires Rhode for $1B, US Cuts Moderna Bird Flu
🔎 Market Trends → US stocks end lower, focus now on Nvidia results; US Futures Rally on Nvidia’s Blowout Earnings
And now…
⏱️ Your 5-minute briefing for Thursday, May 29, 2025:
MARKET BRIEF
Before the Open
As of market close 05/28/2025.
Pre-Market
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Fear & Greed
Markets in Review
Fed Flags Tariff Turbulence, But Resilient Pockets Shine Through
Stocks pulled back Wednesday as Fed minutes revived inflation jitters. The S&P 500 and Dow each slipped 0.6%, while the Nasdaq dropped 0.5%. Utilities led the losses across all sectors.
The Big Picture:
Markets digested a familiar yet thorny issue: tariffs. Fed meeting minutes revealed policymakers are increasingly wary that rising trade barriers could fuel inflation and dent growth, putting the central bank in a policy bind.
But there’s a silver lining. While monetary policy remains in a holding pattern, recent tariff de-escalations—including a 90-day U.S.-China truce and a delayed EU tariff deadline—signal momentum toward diplomacy.
Meanwhile, oil prices firmed and regional factory data showed manufacturing sentiment improving, suggesting the economy may be sturdier than headlines imply.
Market Movers:
Okta (OKTA) dropped 16% after reiterating guidance and highlighting macro risks. Investors expected more clarity on growth traction.
Abercrombie & Fitch (ANF) soared 15%, raising full-year sales guidance on strong Q1 execution. Apparel, it turns out, can still surprise.
WTI crude edged up 1.1% to $61.58, holding gains as OPEC+ kept output steady in its latest review.
What They’re Saying:
“Tariff levels remain elevated and will likely soften domestic spending while nudging inflation higher through year-end.” — Thomas Feltmate, TD Economics
WHAT WE’RE WATCHING
Events
Today: Bureau of Economic Analysis - Prelim Gross Domestic Product (GDP) q/q - 8:30am
Why You Should Care: It's the broadest measure of economic activity and the primary gauge of the economy's health
Today: Department of Labor - Unemployment Claims - 8:30am
Why You Should Care: Although it's generally viewed as a lagging indicator, the number of unemployed people is an important signal of overall economic health because consumer spending is highly correlated with labor-market conditions. Unemployment is also a major consideration for those steering the country's monetary policy
Earnings Reports
Today: Costco, Dell Technologies, Ulta Beauty, Best Buy, Gap, Inc., Bath & Body Works, Burlington Stores
Tomorrow: Coca-Cola, Shoe Carnival, Toro Corp., Canopy Growth Corporation
MARKET BRIEF
Leading News
Nvidia's AI Goldmine Keeps Glittering Despite China Speed Bumps
Photo Credit: Maria Shialiabavvia
Why it matters:
The chip giant's $44.1 billion quarterly revenue proves AI demand isn't just hype—it's reshaping the global economy, even as geopolitical tensions create expensive detours.
Zoom Out:
Nvidia (NVDA) just delivered another reminder that we're witnessing the iPhone moment of artificial intelligence. Revenue surged 69% year-over-year, with data center sales—the AI engine room—jumping 73% to $39.1 billion.
The China export ban on H20 chips cost Nvidia $10.5 billion over six months, yet the company still crushed expectations. That's like losing a limb and still winning the marathon.
Jensen Huang's declaration that China's $50 billion AI market is "effectively closed to U.S. industry" sounds ominous, but history suggests innovation finds new channels when old ones get blocked.
Key Insights:
Cloud giants are all-in: Major providers account for just under 50% of data center revenue, with Microsoft deploying "tens of thousands" of Blackwell chips—a vote of confidence that speaks louder than any analyst report
Diversification paying off: Gaming revenue jumped 42% to $3.8 billion, while automotive/robotics grew 72%—proof that Nvidia isn't a one-trick AI pony
Margin compression reality: Gross margins of 61% (would've been 71.3% without China charges) show geopolitical costs are real but manageable
Market Pulse:
"Global demand for Nvidia's AI infrastructure is incredibly strong," CEO Jensen Huang noted, as AI token generation surged tenfold in just one year.
Bull’s Take:
Smart money sees through the China noise to the underlying demand tsunami. Nvidia's moat keeps widening while competitors scramble to catch up—making every dip a potential buying opportunity for patient investors.
Headlines
Trump Blocks Chip Design Software Firms From Selling In China (link)
Telegram, Musk-owned xAI partner to distribute Grok to messaging app's users (link)
Dick's Sporting Goods stands by full-year guidance — even with tariffs looming (link)
Walmart To Open 45 Gas Stations, In Bid To Compete With Costco (link)
E.l.f. Beauty to acquire Hailey Bieber skincare brand Rhode in deal valued up to $1 billion (link)
US cancels more than $700 million funding for Moderna bird flu vaccine (link)
CRYPTO
Fear & Greed
Headlines
DAILY SHARE
On the Socials
*Hat-tip to alifarhat79
All content provided by Investor Lookout and Bull Street is for informational and educational purposes only and should not be taken as trading or investment recommendations.
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