Impact of New Chip Export Restrictions Beyond Nvidia and AMD
Posted 57 minutes ago
Tech losses influenced major indices on Thursday, extending the previous day’s sell-off due to concerns over stricter export regulations to China that could have significant ramifications.
The technology sector was the weakest in the S&P 500, with Nvidia shares (NVDA) declining over 3% in recent trading, making it one of the biggest decliners on the Dow Jones Industrial Average. The stock had plunged nearly 7% on Wednesday after Nvidia announced an expected $5.5 billion charge due to new restrictions on its H20 chips sales to China.
Advanced Micro Devices (AMD), which also indicated it would likely be impacted by the new export restrictions, saw its shares drop by 1%. Other semiconductor stocks, including Broadcom, Micron Technology, and server maker Super Micro Computer, as well as various AI hardware manufacturers, also faced declines.
Bank of America analysts noted that increased AI export limitations are expected to affect other crucial AI-related firms, raising concerns about potential restrictions in additional sectors. Morgan Stanley analysts echoed this sentiment, stating that Nvidia’s reported loss suggests a low likelihood of being able to bypass these new restrictions, alongside the prospect of broader sales limits of American AI hardware starting in May.
According to Wedbush analysts, it is unlikely that tech companies will issue guidance in the upcoming month due to the uncertain backdrop. They view Nvidia’s situation as concerning but not surprising, given the ongoing U.S.-China trade conflict, predicting further tensions before any significant negotiations can resume.
American Express Exceeds Expectations as Consumer Spending Remains Strong
Posted 1 hr 24 min ago
American Express (AXP) reported first-quarter results that surpassed expectations, driven by robust consumer spending.
The credit card giant announced earnings per share (EPS) of $3.64, with revenue rising 7% year-over-year to $16.97 billion. Analysts had projected earnings of $3.47 and revenue of $16.94 billion. Net interest income reached $4.17 billion, slightly above the consensus estimate of $4.10 billion.
CEO Stephen Squeri stated that consumer spending trends in the first quarter aligned with or exceeded last year’s levels. The company maintained its annual forecast of 8% to 10% revenue growth and an EPS target of $15.00 to $15.50, contingent on macroeconomic conditions.
UnitedHealth’s Shares Fall After Lowering Profit Outlook
Posted 2 hr 20 min ago
Shares of UnitedHealth Group (UNH) tumbled after the healthcare giant reported first-quarter results that fell short of analysts’ expectations and reduced its profit guidance for 2025, citing rising costs in its Medicare segment.
UnitedHealth reported adjusted EPS of $7.20 on revenues that grew 10% year-over-year to $109.58 billion, missing the anticipated $7.25 and $111.46 billion, respectively.
The company revised its 2025 EPS forecast down to a range of $24.65 to $25.15 and adjusted EPS to $26 to $26.50, having previously expected EPS of $28.15 to $28.65. UnitedHealth attributed these changes to increased activity levels in the Medicare Advantage sector and unexpected shifts in Optum Health member profiles affecting planned reimbursements.
Eli Lilly Shares Surge After Weight-Loss Pill Trial Success
Posted 3 hr 23 min ago
Eli Lilly (LLY) shares soared following positive results from a late-stage clinical trial for its oral weight-loss medication, which showed statistically significant efficacy and a safety profile similar to injectable GLP-1 treatments.
The initial results from Phase 3 trials for orforglipron demonstrated superior weight loss compared to a placebo and improvements in A1C levels, especially with higher doses. The drug exhibited side effects akin to those of Eli Lilly’s other weight-loss medications, with gastrointestinal issues reported by 10% to 26% of participants, depending on the dosage.
Monitor Key Levels for Nvidia Following Recent Decline
Posted 4 hr 5 min ago
Nvidia (NVDA) shares continued to decline in early trading following a nearly 7% drop on Wednesday, attributed to a projected $5.5 billion charge due to new U.S. export restrictions affecting its AI chips sales to China.
The stock, which had recovered slightly after hitting a low earlier in the month, has lost about 20% of its value since the start of the year amidst uncertainty surrounding U.S.-China trade policies and tech spending.
Investors should keep an eye on key support levels for Nvidia at $96 and $76, while resistance levels are critical around $130 and $150.
Stock Index Futures Show Mixed Reaction After Previous Day’s Sell-Off
Posted 5 hr 3 min ago
Futures linked to the Dow Jones Industrial Average were down 1.4%, while S&P 500 futures increased by 0.5% and Nasdaq 100 futures rose by 0.9%, reflecting a mixed reaction following Wednesday’s market downturn.
