In the latest discussion, Nvidia reaches record highs after getting approval to resume AI chip sales to China, a game-changer for its CEO. Citigroup also shines bright with a 3.7% increase, announcing major stock buybacks following impressive stress test results. On the flip side, Wells Fargo sees a decline as it lowers its net interest income forecast. The team dives into these market dynamics, highlighting significant gains and losses among key players.
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insights INSIGHT
Nvidia's AI Chip Sales Revival
Nvidia received government assurances to resume AI chip sales to China, reversing previous export restrictions.
This lift is expected to add billions to Nvidia's revenue and signifies a major policy shift in U.S. chip curbs.
insights INSIGHT
Citigroup's Market Gains Soar
Citigroup's shares rose to their highest since 2008 due to increased stock buybacks enabled by strong regulatory stress test results.
The bank also benefited from record trading volumes amid tariff-induced market volatility, boosting revenue.
insights INSIGHT
MP Materials and Apple's Strategic Pact
MP Materials shares surged nearly 20% after Apple committed $500 million to buy rare earth magnets and establish a recycling line.
This partnership supports Apple's $500 billion U.S. investment pledge over the next four years.
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Listen for comprehensive cross-platform coverage of the US market close as heard on Bloomberg Television, Bloomberg Radio, and YouTube with Romaine Bostick, Scarlet Fu, Emily Graffeo, and Tim Stenovec.
On this episode of Stock Movers:
- Nvidia (NVDA) notched record highs after the close, after news that the company, along with AMD, plan to resume sales of some AI chips in China after securing Washington's assurances that such shipments would get approved. US government officials told Nvidia they would green-light export licenses for its H20 artificial intelligence accelerator, and AMD received similar assurances from the US Commerce Department for its MI308 chips. The move is seen as a win for Nvidia's Chief Executive Officer Jensen Huang, who has branded US chip curbs a "failure", and is expected to add billions to Nvidia's revenue this year, according to the company.
- Citigroup (C) shares closed up 3.7%, the highest level since 2008 after the bank said it would ramp up stock buybacks following a strong result in regulatory stress tests. The company plans to repurchase at least $4 billion of shares this quarter, Chief Financial Officer Mark Mason said Tuesday on a call with analysts. That’s more than the $3.75 billion the firm bought back in the entire first half of the year, and the plans helped push the stock past $90 for the first time since the financial crisis.
- Wells Fargo (WFC) shares are down after the bank lowered its full-year guidance for net interest income after another quarter of tepid growth amid the ongoing trade war. The San Francisco-based lender posted $11.7 billion in NII — income from lending minus the cost of deposits — for the three months through June, falling just short of analysts’ estimates of $11.8 billion. That prompted Wells Fargo to lower its full-year NII growth target to little changed from last year, down from its previous guidance of 1% to 3% growth, driven by lower NII in the bank’s markets business.
Stock Movers