U.S.-China trade news is pressuring TMC's valuation and making investors question what comes next.TMC The Metals Company (TMC -8.59%) stock is getting hit with a wave of sell-offs in Tuesday's trading. The company's share price is down 8.2% as of 1:30 p.m. ET, amid declines of 0.1% for both the S&P 500 (^GSPC -0.20%) and the Nasdaq Composite (^IXIC -0.16%).TMC's stock is under pressure today following news that the U.S. has taken a key step to help facilitate a trade deal with China. While a trade deal coul ...

Key Takeaways KLA projects Q4 revenues of $3.075B and EPS of $8.53, reflecting strong year-over-year growth.AI and advanced packaging gains are boosting KLAC's momentum despite chip complexity challenges.Tariffs and higher tax rates are expected to pressure margins and weigh on quarterly profitability.KLA Corporation (KLAC) is set to report its fourth-quarter fiscal 2025 results on July 31.For the fourth quarter of fiscal 2025, KLAC expects revenues of $3.075 billion, plus/minus $150 million. The Zacks Cons ...

Summary of Key Points from the Conference Call Industry Overview - The focus of the conference call was on the impact of the Trump administration's tariff policies on global equities, particularly the S&P 500, which reached a new all-time high following a dramatic rally after "Liberation Day" on April 2, 2025 [13][38]. - The call highlighted the ongoing negotiations between the US and China regarding tariffs, with indications that the US lacks leverage over China in these discussions [6][15]. Core Insights and Arguments - **Tariff Policies**: The expectation is that tariffs may stabilize at a universal rate of 10% and 20% for China, with potential negotiations on specific tariffs related to fentanyl [18][30]. - **US Dollar Trends**: The US dollar is experiencing a structural decline, failing to rally during risk-off moves, which suggests a potential regime change in global currency dynamics [4][55]. - **Emerging Markets**: A weaker dollar is anticipated to benefit emerging market equities, allowing for more accommodative monetary policies [5]. - **Big Tech Capital Expenditure**: Concerns were raised about the potential misallocation of capital by major tech companies in the AI sector, with an estimated US$327 billion expected to be spent this year [3][97]. - **Private Equity Industry**: The private equity sector is relieved by the reduced risks of a US recession due to the tariff de-escalation, with significant recovery in private equity stock performance noted [108][109]. Additional Important Points - **China's Trade Surplus**: China continues to report record trade surpluses, underscoring its dominance in global manufacturing [6]. - **US Current Account Deficit**: The US current account deficit has risen to 6% of GDP, the highest since 2006, indicating significant economic pressures [79]. - **Income Distribution**: The top 1% of Americans accounted for 22.4% of total gross individual income and 40.4% of income taxes paid in 2022, highlighting extreme income inequality [90]. - **Renminbi Usage**: China's cross-border goods trade settlement in renminbi has increased significantly, indicating a shift towards trade outside the US dollar [47][50]. This summary encapsulates the critical insights and trends discussed during the conference call, providing a comprehensive overview of the current economic landscape and its implications for various sectors.

Core Viewpoint - The AI boom is transforming the global economy, prompting investors to seek companies that provide exposure to this growth without excessive valuations [1] Company Overview - Marvell Technology (NASDAQ: MRVL) is highlighted as a key player in the AI sector, specializing in advanced semiconductors essential for data centers and AI networking [2] - The company's stock price has recently experienced a significant pullback, creating an attractive entry point for investors [3][4] Valuation and Market Position - Marvell's stock has declined approximately 35% in the first half of 2025, with its current trading valuation at about 25 times projected forward earnings per share (EPS), compared to the Nasdaq-100's average P/E ratio of 34 to 40 [4][5] - This valuation presents a rare opportunity for value-conscious growth investors, as Marvell's long-term growth potential appears disconnected from its current stock price [5] Growth Strategy - Marvell has outlined a multi-year growth strategy focused on dominating lucrative segments of the data infrastructure market, particularly through custom silicon (ASIC) development [6][7] - The company aims to increase its market share in the custom silicon market from 5% in 2023 to 20% by 2028, potentially generating $11 billion in annual revenue from this segment [8] - Additionally, Marvell plans to expand its data center market share from 13% to 20% of a projected $94 billion market by 2028, targeting nearly $19 billion in annual revenue [9] Technological Advantage - Marvell is a leader in developing next-generation 2-nanometer (2nm) chips, which offer 15% higher performance and consume up to 35% less power than current 3nm technology [10] - This efficiency is crucial in an industry where electricity usage is a significant operational cost, positioning Marvell favorably to attract new clients [11] Investment Appeal - Marvell Technology presents a compelling investment case due to its attractive valuation, transparent growth roadmap, and technological advantages in a performance-driven market [12][13]