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Nvidia shares fall after China opens investigation

Shares of artificial intelligence darling Nvidia were under pressure after a regulator in China said it was investigating the chipmaker for possible violations of the country’s antitrust law. This investigation was in relation to Nvidia’s acquisition of Israeli company Mellanox in 2020 and some agreements entered into during the acquisition, the Chinese government said on Monday.

Oracle falls after missing earnings forecast

Oracle shares fell 7% in extended trading on Monday after the database software company reported fiscal second-quarter results that missed analyst estimates and issued weaker-than-expected revenue guidance. expected. Revenue for the September quarter came in at $14.06 billion, versus expectations of $14.1 billion, while earnings per share came in at $1.47, versus expectations of $1.48.

26-year-old detained by police in connection with fatal shooting of UnitedHealthcare CEO

University of Pennsylvania graduate Luigi Mangione was detained by police as a “person of strong interest” in the murder of UnitedHealthcare CEO Brian Thompson after police found him carrying a pistol, a silencer, a mask and fake ID cards. Mangione had in his possession an alleged “ghost gun,” which lacks a serial limb, capable of firing 9mm bullets, authorities said.

Markets retreat from record highs 

The S&P 500 and Nasdaq Composite retreated from record highs on Monday, with technology stocks lagging. The tech-heavy Nasdaq lost 0.62%, while the S&P fell 0.61%. The Dow Jones Industrial Average fell 0.54%. In Europe, the pan-European Stoxx 600 closed higher for the eighth consecutive session, marking its longest winning streak since May.

[PRO] Investing in mid-caps may be the way to go in 2025

Mid-cap stocks could be the sweet spot for investors in 2025, having been outperforming recently. Many investors expect further gains for mid-caps, which offer better quality businesses than small-caps, as well as stronger growth prospects than large-caps.

The bottom line

Technology stocks have underpinned the impressive rally in US stocks this year. But they are not immune to the laws of gravity.

Big tech stocks underperformed the broader market in Monday’s session.

Oracle missed forecasts and Bank of America downgraded AMD. But perhaps the biggest news of the day was from Nvidia, whose shares have risen a staggering 188% this year. China’s State Administration for Market Regulation opened an investigation into the chipmaker in connection with the Mellanox acquisition and some agreements made during the acquisition. The news caused Nvidia shares to fall 2.6% overnight.

The development suggests that as the year winds down, the fight for technological dominance around the world may be intensifying.

Competition between the United States and China over chip manufacturing is heating up, and the Biden administration on Dec. 2 announced a series of restrictions targeting semiconductor toolmakers.

China then retaliated by banning exports of critical minerals like gallium, and on the same day, four of the country’s major industry associations said Chinese companies should be careful about buying American chips because they were “no longer safe.” and buy locally.

Previous trade skirmishes have focused on areas such as metals, agricultural products and automobiles. With a tougher stance toward China expected from the incoming Trump administration, could the next trade war focus on chips, which have arguably permeated every facet of our lives?