Morning Bid: Chinese Markets Join the AI Craze
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 01 2025
0mins
Source: Reuters
Market Overview
- September Market Trends: The start of September has shown resistance, with much of Asia experiencing declines and Wall Street on holiday, leading to flat S&P 500 futures. Historically, September is a challenging month for markets.
- European and Chinese Markets: European share futures have remained stable, while China's market is buoyed by significant liquidity. Chinese blue chips rose over 10% in August, partly due to discussions about developing domestic alternatives to Nvidia's AI chips.
Notable Stock Movements
- Alibaba's Surge: Alibaba's Hong Kong shares surged nearly 19%, marking the largest single-day increase since early 2022, driven by optimism regarding its cloud business and reports of AI model training using Huawei chips.
- Japanese Market Reactions: The Japanese chipmaker Advantest saw a 9.1% drop, reversing some of its nearly 50% gains over the past three months. SoftBank Group, focused on AI investments, also fell by 6%, contributing to a 2% loss for the Nikkei index.
Trade Policy Implications
- Trump's Legal Challenges: Chinese investors are reportedly encouraged by President Trump's ongoing legal challenges regarding his tariff policies. While tariffs remain in place, a Supreme Court ruling expected in October could impact negotiations with trading partners.
- Potential Economic Consequences: If the Supreme Court upholds the appeals court ruling, it could nullify many trade agreements and diminish Trump's negotiating power. The Treasury may face logistical challenges in repaying over $100 billion collected from tariffs, raising questions about price adjustments by importers and the anticipated $3 trillion in tax revenue.
Upcoming Market Influences
- Key Economic Indicators: Important developments to watch include the release of European PMIs for August and EU unemployment data for July.
- ECB Leadership Engagement: A speech by ECB President Christine Lagarde and appearances by ECB Board members Piero Cipollone and Isabel Schnabel are also anticipated to influence market sentiment.
Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 264.97 USD with a low forecast of 200.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 184.840
Low
200.00
Averages
264.97
High
352.00
Current: 184.840
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
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.
