Quick Read China approved H200 chip imports after reversing its rejection from the previous week. Nvidia shares gained 8% from recent lows. CEO Huang visits China as shares consolidate. Investors rethink 'hands off' investing and decide to start making real money After a relatively sluggish start to 2026, Nvidia (NASDAQ:NVDA) shares finally seem ready to pick up traction. Just when it seemed like the GPU titan was about to lead the Magnificent Seven lower, shares went on to gain close to 8% from ...

Core Insights - Nvidia Corp's stock has increased by 1.6% to $187.81 following approval from Beijing for Chinese companies, including Alibaba, to prepare orders for H200 chips, with expected orders of approximately 1.5 million chips, translating to nearly $30 billion in revenue [1] Stock Performance - The stock has experienced a pullback from its record high of $212.19 on October 29, but the 160-day moving average has provided long-term support, preventing further declines in late December and earlier this month; year-over-year, Nvidia's stock shows a 27.6% increase [2] Options Market Activity - There has been significant activity in the options market, with 821,000 calls and 481,000 puts traded; the most popular contract is the weekly 1/23 190-strike call, followed by the 187.50-strike call, with new positions being opened [2] - Nvidia's options are currently well-priced, with a Schaeffer's Volatility Index (SVI) of 37%, which is higher than just 3% of all readings from the past year [3]

Company Overview - Proactive is a financial news publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company operates with a team of experienced and qualified news journalists across key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] Market Focus - Proactive specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - The content delivered by the company includes insights across various sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Utilization - Proactive is recognized for its forward-looking approach and enthusiastic adoption of technology to enhance workflows [4] - The company employs automation and software tools, including generative AI, while ensuring that all content is edited and authored by humans to maintain quality and best practices in content production [5]

Core Viewpoint - Nvidia is a key player in the AI space, highlighted during the Consumer Electronics Show (CES) in Las Vegas, which has drawn significant investor attention [1] Group 1: Nvidia's Market Position and Performance - Nvidia has the supply to meet strong demand for its H200 chips from China, indicating robust market conditions [2] - The company's market capitalization stands at $4.57 trillion, making it the largest in the world, which suggests limited upside potential but analysts remain optimistic about future share price appreciation [3] - Analysts from Bank of America express a positive outlook on AI-related semiconductor stocks, including Nvidia, despite anticipated market volatility [4] Group 2: Innovations and Future Outlook - Nvidia introduced Alpamayo, the world's first thinking model for autonomous driving, which enhances the capabilities of autonomous vehicles [3] - Analysts believe Nvidia is well-positioned to capture 70%-80% of the value created by the shift to parallel processing, thanks to its flexible ecosystem that offers a low cost of ownership as AI models evolve [5] - There is growing enthusiasm for Nvidia shares as 2026 progresses, which could benefit ETFs like QQQ and QQQM [5]

Core Viewpoint - Nvidia stock experienced gains following reports that China plans to approve imports of certain H200 chips [1] Group 1 - Nvidia's stock performance is positively influenced by the potential approval of H200 chip imports by China [1]

Core Insights - Nvidia's next generation of chips is in "full production" and can deliver five times the AI computing power compared to previous models, specifically for chatbots and AI applications [1] Group 1: Chip Development and Performance - The new chips, including the Vera Rubin platform, are expected to debut later this year and consist of six separate Nvidia chips, with the flagship device featuring 72 graphics units and 36 new central processors [3] - The performance improvements are attributed to a proprietary type of data that Nvidia hopes the industry will adopt, allowing for significant performance gains despite only having 1.6 times the number of transistors [4][11] Group 2: Market Competition - Nvidia continues to dominate the AI model training market but faces increasing competition from traditional rivals like Advanced Micro Devices and customers such as Alphabet's Google, who are developing their own AI chips [5][12] - The company is also addressing competition from its own customers, as Google and others work to reduce reliance on Nvidia's technology [12] Group 3: Technological Innovations - New storage technology called "context memory storage" is being introduced to enhance chatbot responsiveness during simultaneous user interactions [6] - Nvidia is launching a new generation of networking switches featuring co-packaged optics technology, which is essential for connecting thousands of machines [8] Group 4: Software Developments - Nvidia is expanding the availability of its software, Alpamayo, which assists self-driving cars in decision-making and provides a record for engineers [9] - The company emphasizes the importance of open-sourcing both the models and the data used for training to build trust in AI systems [10]

Market Overview - The U.S. stock market opened with mixed results, with the Russell 2000 (+0.06%), Nasdaq (+0.04%), and S&P 500 (+0.03%) starting in positive territory, while the Dow (-0.09%) remained flat [2] - All four major indexes were reported to be slightly down, indicating a potential fourth consecutive day of declines for the S&P 500 [3] Company-Specific Developments - Nvidia's stock rose by 0.84% after placing a significant order with TSMC (+1.5%) due to strong demand in China for its new H200 chip, with over 2 million orders from Chinese firms and only 700,000 units in stock [3] Labor Market Insights - Initial jobless claims for the week of Dec. 27 were reported at 199,000, lower than the expected 220,000, marking the lowest level since late November [5] - There has been a sustained decline in jobless claims over the past four weeks, with Continuing Claims for the week of Dec. 20 at 1.866 million, down from 1.923 million the previous week [6] - The labor market is showing signs of slowing rather than collapsing, which may impact expectations for future rate cuts by the Federal Reserve [7]

Group 1: Market Overview - The Christmas week began with positive momentum from Big Tech, particularly driven by Nvidia's H200 chip, although gains were limited as traders sought safe-haven assets [1] - The U.S. economy showed stronger-than-expected growth at 4.3% for Q3, while durable goods orders fell by 2.2% in October [1] - The S&P 500 Index achieved a record close during the Christmas Eve session, and all three major indexes posted healthy weekly gains despite initial concerns about a "Santa Claus" rally [2] Group 2: Drug Industry Developments - Biohaven's treatment for major depressive disorder did not meet its primary objective in a phase 2 study, impacting its stock performance [3] - Novo Nordisk received FDA clearance for its GLP-1 pill, indicating a positive development for the company [3] - Vanda Pharmaceuticals is seeking approval for its antibody treatment for psoriasis, which could enhance its market position [3] Group 3: Technology Sector Highlights - Nvidia continues to attract bullish sentiment despite its stock's volatility, reflecting strong investor confidence [4] - Tesla reached new record highs, showcasing its ongoing growth and market interest [4] - Micron Technology extended its record-breaking performance, indicating robust demand in the semiconductor sector [4] Group 4: Upcoming Economic Reports - The upcoming week will feature key economic reports, including November's pending home sales and the minutes from the December FOMC meeting, which could influence market sentiment [5]

Group 1 - Nvidia's stock has risen due to reports regarding its H200 chip for the Chinese market, with shipments expected to start in mid-February using existing stock [5] - The company plans to resume production of the H200 chip, with new orders anticipated in the second quarter of 2026 [5] - Analysts have indicated that Nvidia's stock appears 'cheap' amid the recent developments [10] Group 2 - The stock market has shown positive trends, with the S&P 500 and Nasdaq rallying following a favorable inflation report, particularly benefiting AI stocks [10] - There is a concern regarding six AI-related S&P 500 stocks that are accumulating significant debt, described as a "silent time bomb" [7][10] - The market is witnessing increased interest in AI stocks, with notable breakouts emerging [10]

Group 1: Nvidia - Nvidia's stock is up approximately 30% in 2025, driven by its dominance in AI infrastructure with its GPUs and a strong software moat through its CUDA platform [1][2] - The company's NVLink interconnect system enhances its GPUs' performance by allowing them to function as a unified powerful unit, preventing vendor mixing [3] - Nvidia is well-positioned for 2026 with increased data center capex spending from major cloud companies and the recent approval to sell its H200 chip to commercial Chinese customers [4] - The stock is attractively valued with a forward P/E ratio under 23 times 2026 estimates and a PEG ratio below 0.7, indicating it may be undervalued [5] Group 2: Alphabet - Alphabet's key advantage lies in its independence from Nvidia, having developed its own custom AI chips, which provides a cost advantage in cloud computing and AI model training [6] - The company is expected to continue strong growth in 2026 as AI infrastructure spending increases, benefiting from its proprietary technology [7]