Bloomberg Daybreak: Europe Edition Nvidia Underwhelms, $1.5 Trillion on Defense, Europe Warms To EV’s
Aug 28, 2025
Robert Lee, a senior analyst at Bloomberg Intelligence, joins to discuss Nvidia's recent underwhelming revenue forecast, signaling a slowdown in AI spending. He highlights NATO's projected defense spending of over $1.5 trillion by 2025 amid rising geopolitical tensions. The conversation also dives into Europe’s booming electric vehicle market, which posted its highest growth in 15 months, reflecting shifting consumer preferences. Additionally, Lee touches on how global market trends are reshaping investor sentiments and technology landscapes.
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AI Boom Momentum Is Cooling
- NVIDIA's guidance matched expectations but lacked significant outperformance, prompting profit-taking.
- The company's scale makes repeated large beats harder, so easing momentum explains the share drop.
China Exposure Carries Major Uncertainty
- NVIDIA excludes up to $5 billion of potential China sales due to geopolitical uncertainty.
- The company warns U.S.-China tensions could legally and practically limit its China market access.
Mexico To Increase Tariffs On China
- Mexico plans to raise tariffs on Chinese imports to protect local industry and align with U.S. pressure.
- The hikes will target sectors like cars, textiles and plastics and likely pass given the ruling coalition.