TSX rises amid U.S.-China trade deal optimism By Investing.com
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 07 2025
0mins
Source: Investing.com
Canadian Stock Market Update: Canada's main stock exchange saw a slight increase, driven by optimism surrounding U.S.-China trade talks and rising gold and oil prices, while the S&P/TSX composite index rose 153.3 points or 0.6%.
U.S. Market and Economic Outlook: U.S. stock indexes showed mixed results as trade negotiations with China began, with concerns over economic data and the Federal Reserve's upcoming interest rate decision influencing market performance; oil prices rose due to falling crude stocks, while gold prices declined amid improved risk appetite.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy GOOG?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to fall
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 362.290
Low
255.00
Averages
336.08
High
400.00
Current: 362.290
Low
255.00
Averages
336.08
High
400.00
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Massive Agreement Signed: SpaceX has entered a $920 million monthly compute capacity lease agreement with Google, involving 110,000 Nvidia GPUs, effective from October 2026 to June 2029, marking a significant expansion of SpaceX's ambitions beyond rocket launches and satellite operations.
- Market Demand Driven: Despite operating some of the world's most advanced AI data centers, Google still requires additional compute capacity for training generative models, indicating its strategic flexibility in infrastructure and a strong reliance on Nvidia hardware.
- Nvidia's Victory: The agreement centers around Nvidia's GPUs, and despite Google's investment in its own TPUs, the choice to rent Nvidia's compute capacity underscores the unmatched competitiveness of Nvidia in the AI chip sector, further solidifying its market position.
- Industry Outlook: As AI workloads increase, the advantages of Nvidia's general-purpose GPUs in terms of flexibility and software ecosystem become more pronounced, with the SpaceX-Google partnership demonstrating Nvidia's indispensable role in AI infrastructure and signaling strong future growth potential.
See More
- Deal Scale: SpaceX has signed a multiyear cloud computing agreement with Google, leasing access to 110,000 Nvidia GPUs for $920 million per month starting October 2026 until June 2029, marking a significant expansion of SpaceX's business beyond rocket launches and satellites.
- Market Dynamics: Google's choice to rent Nvidia's compute capacity suggests that despite increasing competition from ASICs, Nvidia's general-purpose GPUs still offer unmatched flexibility and software ecosystem, potentially alleviating investor concerns about Nvidia's market share erosion.
- Strategic Implications: This agreement not only creates a new revenue stream for SpaceX but also highlights Google's need for AI infrastructure, indicating that even industry giants are seeking external resources to meet their computing demands, thereby reinforcing Nvidia's dominant position in the AI chip market.
- Future Outlook: As AI workloads grow, the demand for high-performance GPUs will continue to rise, and the SpaceX-Google partnership serves as proof of Nvidia's foundational role in the AI data center chip realm, which may influence future investment decisions.
See More
- Historic IPO: SpaceX plans to issue over 555.5 million shares at $135 each, raising approximately $75 billion and achieving a valuation of about $1.77 trillion, positioning it as the seventh or eighth most valuable company globally, highlighting its significant role in the rapidly growing space economy.
- Revenue Growth and Losses: Despite generating $18.7 billion in revenue in 2025, a 33% year-over-year increase, SpaceX recorded a net loss of $4.9 billion, indicating financial challenges amid rapid expansion, while adjusted EBITDA of $6.6 billion suggests potential profitability.
- Intensifying Competition: SpaceX's Starlink segment generated $11.4 billion in revenue in 2025, up 50%, but faces threats from competitors like Amazon, necessitating ongoing market share growth to maintain profitability in a competitive landscape.
- AI Business Outlook: SpaceX's AI segment achieved $3.2 billion in revenue in 2025, despite a $6.3 billion operating loss due to R&D spending; however, a $920 million monthly deal with Alphabet is expected to significantly improve its financial outlook.
See More
- Stock Performance Volatility: Intel's shares have surged 427% over the past year, yet they have declined over 16% since hitting a 52-week high on May 11, indicating investor concerns about its future prospects amid a broader semiconductor market downturn.
- Major Order Secured: Reports indicate that Google has placed an order with Intel's foundry unit for over three million of its custom Tensor Processing Units (TPUs) by 2028, which could significantly enhance Intel's competitiveness in the AI processor market and potentially boost its stock price.
- Foundry Business Growth: Intel's foundry business generated $5.4 billion in revenue in Q1 2026, marking a 16% year-over-year increase and accounting for 40% of the company's total revenue, showcasing strong performance particularly through partnerships with major clients like Tesla and Apple.
- Future Growth Potential: Despite Intel's high price-to-earnings ratio of 141, analysts anticipate solid earnings growth driven by new customer orders, which could provide long-term growth momentum and bolster investor confidence in the company's prospects.
See More
- Surge in Foundry Orders: Google has partnered with Intel to manufacture over three million Tensor Processing Units (TPUs) by 2028, indicating significant market demand for Intel's foundry services, which is expected to further boost the company's revenue growth.
- Significant Revenue Growth: Intel's foundry business generated $5.4 billion in revenue in Q1 2026, marking a 16% year-over-year increase and accounting for 40% of the company's total revenue, showcasing its strong performance in the semiconductor market, outpacing the overall 7% revenue growth.
- Expanding Customer Base: In addition to Google, Intel has secured a foundry order from Tesla and is in talks with Apple, which will provide long-term growth potential for Intel's foundry business and enhance its competitive position in the market.
- Optimistic Market Outlook: Despite Intel's high price-to-earnings ratio of 141, analysts anticipate that its earnings growth will exceed expectations, and with the ongoing development of its foundry business, investors maintain an optimistic view on its future performance, potentially driving the stock price higher.
See More
- FSD Software Uncertainty: Piper Sandler analyst Alexander Potter noted that Tesla's Full Self-Driving (FSD) software faces uncertainty primarily due to the lack of universally accepted data for directly comparing metrics like disengagements and crashes; nevertheless, he believes Tesla has effectively achieved Level 4 autonomy.
- FSD Subscription Expansion: Tesla is rolling out FSD subscription services and expanding its robotaxi offerings while working to secure permits for robotaxi infrastructure and planning to build the Cybercab without a steering wheel or pedals, which will enhance its competitive edge in the market.
- FSD Expansion in Europe: Tesla is expanding the availability of FSD Supervised in Europe, with Denmark becoming the fourth country to gain approval, following the Netherlands, Lithuania, and Estonia; Tesla claims this technology is seven times safer than human driving.
- JPMorgan's Market Outlook: JPMorgan highlighted Tesla's unmatched advantage in the competitive landscape, forecasting an earnings inflection point by 2028 and approximately 50% annual earnings growth through 2030, raising its price target from $145 to $475, reflecting a positive outlook on Tesla's future.
See More










