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Nvidia up 12% as it plans a new AI chip for China 🤖
Chips for China: A Reuters report found Nvidia may be set to launch an AI chip specifically for China by mid-2024.
US restrictions: Nvidia plans to launch three new chips, but it’s the China-focused one that has investors excited, as it could avoid restrictions the US government put in place for chipmakers.
A crucial market: China accounts for around 20% of Nvidia’s revenue across its largest divisions, so investors will be keeping a close eye as the story continues to develop.
*Ratings are provided by analysts at Zacks, a leading investment research firm
Crocs climbs 9% after a positive 2024 outlook 🐊
Crocs’ comeback: Many investors thought Crocs had its day after it fell out of fashion in 2008. But since 2019, Crocs’ annual sales have tripled, thanks to a post-pandemic boom and Gen Z adoption.
A very Merry Christmas: Investors expected Crocs’ revenue to fall by up to 4% over Christmas from last year, but it gained 1%. Crocs expects 2023 revenue to reach $3.95bn.
Snapping Crocs: But what stole the headlines was Crocs’ outlook for 2024. It estimates revenue will jump another 3% to 5%, leading to investors snapping up shares.
*Ratings are provided by analysts at Zacks, a leading investment research firm
Boeing shares descend 8% following flight scare 🛩️
Turbulence: The Federal Aviation Administration has ordered temporary grounding of 171 of the 737 Max planes. Why? Because a plug door blew off an aircraft whilst airborne. No one was seriously injured.
A bad look for Boeing: Two of Boeing’s customers, Alaska and United Airlines, have had to pause flights, causing losses in revenue. The dip in share price caused the Dow Jones to slip 0.4%, its lowest level since mid-December.
Mayday, Mayday: Viral videos of the incident could further jeopardise Boeing’s future deliveries, including to China, which hasn’t accepted a Max since the 2019 grounding. Has Boeing just given European rival Airbus a major advantage?
*Ratings are provided by analysts at Zacks, a leading investment research firm
What have we learned this week? 🤓
Nvidia shares swing based on China: The AI boom led to Nvidia gaining 250% last year, but now, investors look towards its relationship with China.
Fashion stocks had a strong Christmas: As well as Crocs, Abercrombie & Fitch and Lululemon also lifted their holiday-quarter forecasts.
Boeing may have lost China for good: The 737 Max is Boeing’s lead aircraft, but China haven’t bought any since its 2019 incident. Now, it’s even more unlikely they’ll be submitting an order any time soon.
Stock announcements 👀
Apple: The tech giant will start taking pre-orders for its $3.5k Vision Pro mixed-reality headset on January 19th and start shipping on February 2nd.
Johnson & Johnson: Pharma giant J&J has said it’ll buy cancer-treatment maker Ambrx for $2bn.
Uber: After launching in-app ads in 2022, Uber said it’s on track for $1bn in ad sales by the end of 2024.
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*Figures and ratings correct as of January 10th 2024.
Past performance does not guarantee future results. Capital at risk when investing. This content is for educational purposes only. Shares does not provide investment advice. If you are unsure about anything, please seek advice from an authorised financial advisor.
