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Tech 5: NVIDIA Results Rattle Investors, Trump Signals More Tech Deals to Come
“However, the long-term potential of AI can’t be ignored,” he told the Investing News Network, emphasizing his preference for top players like NVIDIA and Palantir Technologies (NASDAQ:PLTR) over smaller, debt-leveraged firms.
Reports that DeepSeek will train its newest AI models on Huawei chips and Cambricon Technologies' (SHA:688256) 4,300 percent revenue surge underscore the shifting AI landscape. Still, optimism wasn’t absent: NVIDIA CEO Jensen Huang pointed to accelerating global demand and unveiled a US$60 billion buyback program to reassure investors.
“All in all, the sector’s long-term trajectory remains bullish, with AI adoption accelerating across industries,” said Murillo.
Nasdaq Composite, NVIDIA and Dell Technologies performance, August 26 to 29, 2025.
Chart via Google Finance.
However, it wasn’t enough to reassure the public, and NVIDIA's share price fell over 4 percent between Wednesday (August 27) and Friday (August 29). As investors analyzed new inflation data that indicates tariffs are impacting prices, other AI-related stocks saw losses too, pulling the S&P 500 (INDEXSP:.INX) from its recent record highs.
With that, here's a look at some of the other drivers that shaped the tech sector this week.
1. Intel warns of adverse reactions to government equity stake
In a US Securities and Exchange Commission Form 8-K filing dated August 22, Intel (NASDAQ:INTC) warns that the federal government’s 10 percent stake in its business could cause “adverse reactions,” including litigation from investors, employees, customers, suppliers, partners and foreign governments.
The company also discloses a clause in the agreement that would raise the government’s stake to 15 percent if the company fails to meet set manufacturing thresholds.
Moreover, the filing states that, if this agreement prompts other government bodies to seek similar stakes, the varied agendas could diminish the voting power of other shareholders.
The comments come after the White House announced last week that it would take a 10 percent stake in the company in a deal worth around US$8.9 billion. On Monday, (August 25), President Donald Trump suggested he might pursue similar agreements with other American companies, posting on Truth Social:
“I will also help those companies that make such lucrative deals with the United States. I love seeing their stock price go up, making the USA RICHER, AND RICHER.”
Meanwhile, White House economic advisor Kevin Hassett told CNBC that the deal is part of a broader strategy to create a sovereign wealth fund that may include additional companies.
Later, during an interview on CNBC’s Squawk Box on Tuesday, Secretary of Commerce Howard Lutnick said Pentagon officials are considering acquiring equity stakes in leading defense contractors such as Lockheed Martin (NYSE:LMT).
2. Apple sets date to reveal fall product lineup
On Tuesday, Apple (NASDAQ:AAPL) invited media members and analysts to its next launch event, which is scheduled for September 9 at 10:00 a.m. PST.
The event, which will be live streamed from the iPhone maker's campus, is expected to be the venue for the introduction of the new iPhone 17 lineup and updated Apple Watch models.
The new iPhone series is rumored to include four models:
- iPhone 17
- iPhone 17 Pro
- iPhone 17 Pro Max
- A new iPhone 17 Air that will reportedly replace the iPhone 16 Plus. This new model is rumored to be exceptionally thin, potentially as slim as 5.5 millimeters, a major new design direction for Apple.
The new iPhones are also expected to feature a new "Liquid Glass"-based interface as part of iOS 26.
According to Bloomberg journalist Mark Gurman, who has a reputation for being one of the most accurate and prolific sources of leaks about Apple's future products, the company is planning three years of major iPhone redesigns, starting with the September release. Apple’s first foldable iPhone, code-named V68, is slated to arrive in 2026, according to Gurman. Apple's 2027 "iPhone 20" will feature curved glass edges to complement the upcoming Liquid Glass-based interface for iOS and other operating systems.
3. IBM, AMD to partner on quantum supercomputer
IBM (NYSE:IBM) and Advanced Micro Devices (AMD) (NASDAQ:AMD) said on Tuesday that they plan to collaborate to develop quantum-centric supercomputing.
The two companies, which have each fundamentally advanced the frontiers of quantum hardware and software, AI accelerators, CPUs and GPUs, said they will work together to “develop scalable, open-source platforms that could redefine the future of computing” by combining their strengths in quantum and high-performance computing.
“Quantum computing will simulate the natural world and represent information in an entirely new way,” said Arvind Krishna, chairman and CEO of IBM, adding that the firms' collaborative efforts will “build a powerful hybrid model that pushes past the limits of traditional computing.”
“We see tremendous opportunities to accelerate discovery and innovation,” said Dr. Lisa Su, chair and CEO of AMD.
In an interview with Axios, Jay Gambetta, IBM's quantum vice president, said he aims to get fault-tolerant quantum computers, a set of techniques and architectural designs that ensure a computation can proceed accurately even in the presence of errors, “by the end of this decade.”
4. Cost of Meta data center to exceed original estimate
During a cabinet meeting on Tuesday, Trump told reporters that Meta Platforms' (NASDAQ:META) Louisiana data center will cost the company around US$50 billion to build.
That's over 70 percent of the company’s projected CAPEX spending in its latest quarterly report.
“When they said US$50 billion for a plant, I said, ‘What the hell kind of plant is that?’” said Trump, revealing a photo of the proposed data center, Hyperion, superimposed over the island of Manhattan.
“When you look at this, you understand why it’s US$50 billion,” he added.
When the data center was announced, officials in Louisiana estimated the project would cost around US$10 billion. Meta has not confirmed this new estimate and declined to comment on Trump's remarks.
5. Fusion developer raises US$863 million for energy development
On Thursday (August 28), Commonwealth Fusion Systems, a leading nuclear fusion developer in the US, announced it has secured US$863 million in an oversubscribed Series B2 funding round.
Investors including Morgan Stanley (NYSE:MS) and NVIDIA contributed to this capital raise, which will facilitate the completion of Commonwealth's Spac fusion demonstration machine, as well as the commencement of construction on a new ARC power plant in Virginia.
“Investors recognize that CFS is making fusion power a reality. They see that we are executing and delivering on our objectives,” said the company’s CEO and co-founder, Bob Mumgaard. “This funding recognizes CFS’ leadership role in developing a new technology that promises to be a reliable source of clean, almost limitless energy — and will enable investors to have the opportunity to capitalize on the birth of a new global industry.”
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Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
NVIDIA Delivers Record Quarter as AI Demand Booms, but China Uncertainty Persists
“Blackwell is the AI platform the world has been waiting for, delivering an exceptional generational leap — production of Blackwell Ultra is ramping at full speed, and demand is extraordinary,” said founder and CEO Jensen Huang.
“The AI race is on, and Blackwell is the platform at its center,” he added.
The company’s data center division once again fueled growth as it generated US$41.1 billion in revenue, 56 percent higher than a year ago. Roughly US$33.8 billion of that total came from sales of NVIDIA's GPUs, while US$7.3 billion was from networking hardware that ties together large AI computing systems.
Sales of NVIDIA's Blackwell processors, launched in May, rose 17 percent quarter-on-quarter. The product line has quickly become the backbone of NVIDIA's data center business, accounting for a majority of the segment's revenue.
Wall Street reacts to NVIDIA results
Despite NVIDIA's strong numbers, company shares initially slipped in after-hours trading as some investors fretted about slower growth momentum in the data center division.
Regardless, the stock later pared its losses by turning positive on Thursday (August 28).
Overall, NVIDIA has surged 35 percent so far this year after nearly tripling in 2024.
NVIDIA performance, August 25 to 28, 2025.
Chart via Google Finance.
The company is guiding for revenue of US$54 billion, plus or minus 2 percent, in the October quarter.
However, that forecast does not assume any shipments of the H20, a chip that was designed for the Chinese market, but is currently sidelined by export restrictions.
Colette Kress, NVIDIA's CFO, told analysts the company could ship between US$2 billion and US$5 billion worth of H20 processors this quarter if geopolitical conditions allow.
No H20 sales to China
NVIDIA confirmed it had no H20 sales to China in its second quarter.
Instead, it benefited from releasing US$180 million in previously reserved H20 inventory to a customer outside of China, boosting reported revenue by US$650 million. The company previously said that the lack of H20 shipments cost it up to US$8 billion in potential sales in the second quarter alone.
Huang met with US President Donald Trump earlier this summer to lobby for licenses to export the H20, a chip that was developed specifically to comply with US trade restrictions.
Under a tentative deal, NVIDIA agreed to pay 15 percent of China H20 revenue to the US government in exchange for export approvals. However, the arrangement has yet to be codified into a formal agreement.
Blackwell and the China dilemma
Beyond H20, attention has shifted to NVIDIA's newest flagship processor, Blackwell.
On Wednesday’s (August 27) earnings call, Huang said there is “a real possibility” of bringing Blackwell to China.
“We just have to keep advocating the importance of American tech companies to be able to lead and win the AI race, and help make the American tech stack the global standard,” he said. Huang estimates that China represents a US$50 billion opportunity for NVIDIA this year, with growth of 50 percent annually. He argued it is better for Chinese AI firms to use NVIDIA chips, even if modified, rather than being forced to rely on domestic alternatives.
Trump, however, has expressed caution. Speaking at a press conference earlier this month, he said, “The Blackwell is super-duper advanced. I wouldn’t make a deal with that.”
However, he said he could allow a “somewhat enhanced in a negative way” Blackwell chip to be sold to China, further suggesting that such a version could be slowed by 30 to 50 percent to comply with US restrictions.
Even without China sales, NVIDIA maintains a bright outlook.
Huang told analysts the buildout of AI infrastructure is still in its early stages, further projecting that global spending on AI infrastructure could reach US$3 trillion to US$4 trillion by the end of the decade.
Furthermore, large cloud providers, which remain NVIDIA's biggest customers, have announced plans to spend tens of billions of dollars per quarter on AI infrastructure, ensuring a steady pipeline of demand for the company's chips.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.