Nvidia Rejoins the $3 Trillion Club
just now
Nvidia (NVDA) made a return to the $3 trillion valuation on Tuesday, largely due to a significant deal with a state-supported AI company from Saudi Arabia.
The company saw its shares jump nearly 6%, bringing its market cap close to $3.2 trillion, only trailing Microsoft (MSFT) and Apple (AAPL).
In its partnership with Humain, part of Saudi Arabia’s Sovereign Wealth Fund, Nvidia unveiled plans for an AI supercomputer packed with 18,000 GB300 chips. Over the next five years, they aim to sell “hundreds of thousands” of high-end GPUs. Interestingly, this announcement lined up with President Trump’s four-day visit to the Middle East, marking his first major trip abroad during his second term.
Nvidia was the third US company to hit the $3 trillion mark in June 2024. Unlike Microsoft and Apple, the chip maker’s journey to this milestone began with the generative AI surge triggered by the rollout of ChatGPT in late 2022.
After reaching the $3 trillion milestone, Nvidia’s stock experienced fluctuations, previously tracking sideways until early January when its market cap peaked at around $3.66 trillion. Throughout that period, it remained in competition with Microsoft and Apple for the world’s top company status.
However, the stock faced considerable turbulence, losing approximately $1.3 trillion in value from January to April, as Wall Street expressed concerns over the economic sustainability of AI and trade tensions with China. Last month, a solid revenue report from major tech firms and a more lenient tariff approach from the White House helped boost stocks. Nvidia is set to release its first-quarter results on May 28.
–Colin Raidley
Robinhood Shares Surge After Bank of America Boosts Price Target
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Shares of Robinhood Markets (Hood) experienced a significant spike on Tuesday after Bank of America revised its price target upward.
The new target is set at $65, an increase from $60, suggesting a 13% upside from Monday’s close of $57.43. Following this, Robinhood’s stock climbed 9%, closing at $62.57, yielding nearly a 70% gain so far in 2025.
Bank of America noted Robinhood’s impressive organic growth potential “without significant cost inflation.” They emphasized that the brokerage is engaged in several major initiatives, suggesting that only a few need to succeed for this growth to continue. These projects include upgrades to the desktop platform Robinhood Legend and the upcoming AI-powered customer service assistant, Cortex, expected by late 2025.
–Andrew Kessel
Nvidia Boosts Semiconductor Stocks
1 hour 48 minutes ago
Nvidia (NVDA) and various semiconductor stocks saw notable increases on Tuesday amid positive sentiment around new partnerships and trade negotiations.
Nvidia’s shares rose about 6% following President Trump’s announcement of AI chip supplies to Saudi AI startup Humain, coinciding with his Middle East tour.
As part of the collaboration with Humain, Nvidia, through CEO Jensen Huang’s announcement on stage in Riyadh, intends to deploy “hundreds of thousands” of advanced GPUs equipped with the 18,000 GB300 Grace Blackwell AI supercomputers alongside Nvidia’s networking technology.
AMD confirmed it will partner with Humain, earmarking up to $10 billion over the next five years to create a transcontinental AI computing center connecting Saudi Arabia and the United States.
Amid discussions about a potential $1 trillion investment in the region, President Trump is also slated to visit Qatar and the UAE.
The White House has not yet responded to requests for comments regarding the chip collaborations.
Additionally, stocks in other chip giants like Broadcom (AVGO) and Micron Technology (MU) climbed, lifting the PHLX Semiconductor Index (SOX) by around 3%. Monday’s gains followed a U.S.-China agreement to lower import tariffs for a 90-day period.
–Kara Greenburg
Super Micro Shares Rally Following Positive Recommendation
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Super Microcomputer (SMCI) stocks surged on Tuesday after Raymond James initiated coverage with an “outperform” rating and set a price target of $41.
The stock jumped roughly 15%, surpassing $38, although it still trails behind its value from a year ago, having lost more than half since then.
Analysts at Raymond James suggest that Supermicro is positioning itself as a leader in AI-Optimized Infrastructure, with market research firm Dell’Oro estimating the company controls about 9% of the $145 billion AI platform market—potential for growth ahead.
Earlier this month, other analysts had lowered their targets due to diminished sales forecasts, highlighting customer indecision amid economic challenges.
However, Super Micro stock has remained volatile, partly due to worries around its accounting practices after downgrades in forecasts and past disappointments. The company narrowly dodged a delisting threat due to financial statement arrears in February.
–Andrew Kessel
Goldman Sachs Raises S&P 500 Forecast
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Analysts at Goldman Sachs are becoming more optimistic about the S&P 500’s growth potential after the U.S. and China agreed to relax tariffs on imports for 90 days.
They predict the S&P 500 could rise to around 6,500 points in the next year, up from a previous target of 6,200. The index was just under 5,900 around noon on Tuesday.
Goldman Sachs attributes this optimism to what they see as low risks regarding tariffs, along with expected economic growth and diminished recession risks. The recent agreement with China will drop tariffs on imports from 145% to 30% by Wednesday, while China will reduce tariffs on U.S. goods from 125% to 10%.
The S&P 500 also managed to secure a 22% increase from its earlier lows in April, signaling a return to positive territory for 2025.
–Andrew Kessel
Honda’s Stocks Drop Amid US Tariff Concerns
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Shares of Honda Motor Company (HMC) declined on Tuesday after Japanese automakers expressed worries about profit declines due to uncertainties surrounding new U.S. tariffs. The company is also postponing its plans for a new electric vehicle supply chain in Canada due to falling demand.
For the fiscal year ending March 31, 2026, Honda is slashing its forecast to around 250 billion yen ($1.69 billion), down 70% from the previous year. Operating profits are expected to fall from 59% to 500 billion yen ($3.38 billion), with sales projections dropping from 6.4% to 20.3 trillion yen ($13.727 billion).
Toshihiro Mibe, Honda’s president and CEO, noted in an analyst call that the tariffs could impact the company negatively by 650 billion yen ($4.4 billion) in the current fiscal year. “I think the impact of tariffs will continue to change over time. We have to think about these major changes happening,” Mibe remarked.
He added that Honda is exploring ways to address this issue, suggesting that if tariffs persist, the company may need to enhance production capacity in the U.S.
Additionally, Mibe mentioned that plans for electric vehicle operations in Canada set for April 2024 will be delayed by about two years, citing the cooling EV market in North America.
Honda shares have dropped over 5% recently. Still, despite today’s downturn, the stock has seen slight gains since the start of the year.
–Bill McCall
UnitedHealth Shares Decline After CEO Change and Suspended Outlook
6 hours 31 minutes ago
Shares of UnitedHealth Group (UNH) tumbled in early trade on Tuesday following the announcement of new leadership and the suspension of their 2025 outlook.
The company revealed that Andrew Witty has stepped down as CEO for personal reasons, and former CEO Stephen Hemsley will take over the role again, transitioning from his tenure from 2006 to 2017.
Moreover, UnitedHealth has decided to suspend its annual outlook. The company noted that even though care activities have ramped up, they expanded benefit types more than in the first quarter, and healthcare costs for many Medicare Advantage beneficiaries exceeded expectations.
This suspension follows recent revisions to their profit forecast, where first-quarter results fell short of expectations, culminating in a record drop of 22% on April 17—the worst single-day performance since 1998.
UnitedHealth shares decreased 13% in early trading, contributing to a decline in the Dow. Other insurance stocks like CVS Health (CVS), Centene (CNC), Humana (Hum), and Elevance Health (ELV) also faced sharp declines this morning.
–Aaron McDade
Nike Stock Levels Surpass Monday’s Surge
7 hours 10 minutes ago
Nike (NKE) shares gained in pre-market trading following a price surge on Monday triggered by news of impending tariff cuts between the U.S. and China.
This development is rather positive, especially since 15% of Nike’s revenue came from China last quarter, making the region crucial in their global supply chain. Analysts highlighted the potential for significant cost reductions for large companies like Nike despite previous tariff concerns.
Nike saw a 37% dip from late February to early April due to fears of rising production costs and profit margin pressures stemming from U.S. tariffs. Fortunately, the stock has rebounded by 20% since its recent lows, which ended Monday at just under $63 after climbing over 7% the previous day.
As the stock struggles to reclaim previous heights, it has woven within a rising triangle pattern before breaking above the top trendline during Monday’s session.
Volume during Monday’s movement was notably elevated, indicating conviction among larger market players. Furthermore, the price momentum was bullish, supported by a relative strength index bounce above neutral.
Key overhead levels to track on Nike’s charts are $63, $71, and $79, while significant support lies around $59.
–Timothy Smith
Major Index Futures Show Mixed Signals After Monday’s Gains
8 hours 10 minutes ago
Futures tied to the Dow Jones industrial average dipped by 0.5%.
S&P 500 futures were down by 0.1%.
In contrast, Nasdaq 100 futures were up 0.1%.
