🤩 Nvidia takes the stage

What’s going on here?

Nvidia was never going to squander its moment in the spotlight at the Consumer Electronics Show in Las Vegas, but its opening keynote was a proper mic drop moment.

What does this mean?

Nvidia revealed a $3,000 desktop PC touted as a “personal AI supercomputer”, and a flashy new set of graphics cards, powered by its latest Blackwell chips. Then it went beyond screens with its latest work in “physical AI”, including models for humanoid robots and self-driving cars. Overall, the pacey stage show highlighted Nvidia’s hand-in-glove deals with giants like Toyota and MediaTek – and the many ways this $3.6 trillion company is embedding its chips and software into autonomous vehicles, robotics, data centers, and more. Nvidia even saw its valuation pop to an all-time high just as its CEO hit the stage – a fitting Vegas spectacle.

Why should I care?

Zooming out: Multitrillion-dollar baby.

Nvidia’s betting that robotics will be the next multitrillion-dollar frontier. If that gamble pays off, the titan will dominate more than just the industry’s chips: it’ll own the software behind those AI-driven machines too. And that could propel the company forward even further. If autonomous vehicles take off, Nvidia’s revenues could really hit high speeds. Meanwhile, those $3,000 AI desktops will put powerful tools in the hands of developers, letting them cook up advanced models at home and driving even more demand for the company’s tech.

For markets: Open road.

It’s not just Nvidia making AI waves: the record-breaking $97 billion in AI startup funding last year – OpenAI, Anthropic, and xAI, we’re looking at you – showed a broad industry that’s all-in on AI. The ripple effects have sent Asian chip stocks rising, boosted by fresh demand for next-gen processors. If these cross-continent plays tell you anything, it’s that AI isn’t just a flash in the pan: it’s a global thoroughfare, with plenty of lanes for savvy investors to pull into.

What’s going on here?

The Pentagon just added tech firm Tencent and battery maker CATL to its blacklist, accusing both of having ties to China’s military.

What does this mean?

The designation isn’t an official sanction, but US firms that work with blacklisted companies risk being barred from future defense contracts. So it’s a major market shakeup. Tencent, China’s most valuable listed company and the world’s heftiest gaming publisher, saw its shares drop about 7% on the news. And CATL – the world’s biggest EV battery maker – saw its fall 3%. Both companies have denied having any links to the Chinese military. And they weren’t alone in making it into the Pentagon’s bad books: shipping giant Cosco and oil firm Cnooc also got the scarlet letter, sending their shares lower too.

Why should I care?

Zooming in: Power plays.

About a third of the world’s EV batteries are made by CATL. Unsurprisingly, its biggest customer is US giant Tesla – but lately, it’s been exploring ways to license its tech to Ford and GM. Tencent, meanwhile, owns a hefty 40% stake in US-based Epic Games – the maker of Fortnite – as well as a smaller chunk of Activision Blizzard. If the blacklist designation affects those gaming and tech partnerships, the ripple effects could be huge. It’s a good reminder: Chinese stocks may sell for cheap, but geopolitical tensions can make them a risky bet.

The bigger picture: Investing in red, white, and blue.

US stock valuations might look pricey compared to places like China, but that doesn’t mean you should chase cheaper markets. It’s been this way for years, yet US stocks keep delivering strong performances. And that’s because they have what other markets don’t: seemingly unstoppable earnings growth, powered by tech firms like the Magnificent Seven. Warren Buffett famously said, “Never bet against America”, and that advice is hard to ignore.