Nvidia faces new AI Rival: Huawei 29/04/2025

HOT stories for today

 

US market wrap:

• Stocks opened the week on uneven footing, with optimism lifting the S&P 500 while tech names dragged on broader gains ahead of a high-stakes earnings week for tech and fintech giants. Treasury Secretary Scott Bessent added to the cautious mood, remarking that progress on tariff negotiations now rests with China, as the U.S. administration targets finalizing up to six deals per week.
• The S&P 500 managed to edge higher by less than 0.1% on Monday, extending its winning streak, while the Dow Jones Industrial Average rose about 0.3%. Meanwhile, the Nasdaq Composite dipped 0.1%, weighed down by tech sector softness. All three major indexes experienced sharp swings throughout the session. The Dow fell more than 240 points at its intraday low before rebounding to close roughly 300 points higher. The S&P 500 and Nasdaq both plunged more than 1% earlier in the day before staging a late-session recovery.

Nvidia faces new AI Rival: Huawei

• Nvidia (NVDA) shares slipped 2% Monday after reports that Chinese tech giant Huawei is testing a new artificial intelligence chip aimed at rivaling Nvidia’s H100 processors. According to The Wall Street Journal, Huawei plans to ship more than 800,000 units of its Ascend 910B and 910C chips this year to major domestic clients such as ByteDance and state-owned telecom operators. The news comes as Nvidia grapples with a $5.5 billion write-off after U.S. restrictions barred sales of its H20 chips to China — the highest-performing AI hardware it was previously allowed to export.
• While Nvidia’s latest Blackwell architecture continues to lead the global AI market, Huawei’s state-supported initiatives could reshape the competitive landscape within China, particularly due to easier access to homegrown chips. Despite the buzz, analysts suggest Nvidia’s technological edge remains intact. Huawei’s upcoming Ascend 910D chip, expected to begin sampling next month, would showcase rapid innovation but is unlikely to match Nvidia’s performance — limiting its appeal outside Chinese borders.
   

Stocks on the move:

• NXP Semiconductors (NXPI) — Shares of the chipmaker slid 7.5% despite beating Wall Street estimates on both revenue and earnings for the first quarter. The decline followed news that Rafael Sotomayor will succeed Kurt Sievers as CEO.
• Woodward (WWD) — The aerospace components manufacturer surged 4.6% after delivering strong fiscal second-quarter results. Woodward reported earnings of $1.69 per share (excluding items) on revenue of $884 million.
• Universal Health Services (UHS) — Shares of the healthcare facility operator dropped 2.3% after posting $4.10 billion in first-quarter revenue, missing the $4.16 billion consensus estimate from analysts surveyed by LSEG.
• F5 (FFIV) — The cloud solutions provider advanced nearly 2% after its fiscal second-quarter earnings topped expectations. F5 posted adjusted earnings of $3.42 per share on $731 million in revenue, outperforming analysts’ projections of $3.10 EPS and $719 million in revenue.
   

Today’s action

• Asia-Pacific markets traded mostly higher on Tuesday as investors assessed the potential fallout from U.S. President Donald Trump’s tariffs ahead of a heavy week of corporate earnings and economic data out of Wall Street. Market participants also kept a close watch on ongoing trade negotiations between the U.S. and regional economies. On the mainland, China’s CSI 300 index dipped 0.13%, while Hong Kong’s Hang Seng Index trimmed gains to finish up 0.12%. Japanese markets remained closed for a public holiday.
• In the U.S., futures hovered near the flatline after the S&P 500 notched its fifth consecutive winning session. About one-third of S&P 500 companies are set to report earnings this week, keeping traders on edge. Economic reports on home prices, consumer confidence, and job openings are also due Tuesday morning. S&P 500 futures edged up 0.14%, Nasdaq 100 futures gained 0.2%, and Dow Jones Industrial Average futures added 50 points, or 0.12%.

Watchlist: SPOT, NVDA, KO, AZN, HON, PFE, TSLA, PLTR

Bitcoin
 

• Bitcoin (BTC) showed resilience on April 28, 2025, trading around $95,489 with a market capitalization of $1.89 trillion and 24-hour volume of $21.47 billion. The cryptocurrency moved within a tight intraday range between $92,953 and $95,857, consolidating just below a major resistance zone. On the daily chart, Bitcoin maintained a bullish structure, climbing from a recent low of $74,434 to a peak near $95,857.
• Volume analysis indicated strong underlying buying pressure during the rally, although trading volumes have eased slightly in recent sessions. Candlestick patterns revealed small red candles at the highs, suggesting a possible consolidation phase. A decisive breakout above the $96,500 resistance, accompanied by strong volume, could ignite fresh bullish momentum and push BTC toward the $98,000 to $100,000 range.
  Watchlist: Bitcoin: 74 000-100 000, Ethereum:1500-2600, Solana: 80-150
   

Forex
 

• The EUR/USD pair edged lower to around 1.1375 during Tuesday’s Asian session as the Euro weakened against the US Dollar. Growing expectations of a European Central Bank (ECB) rate cut in June and mixed signals on US-China trade negotiations weighed on sentiment. Despite the dip, the pair retains a positive bias above the key 100-day EMA, supported by a bullish RSI indicator. Immediate resistance is seen at 1.1400, while initial support lies at 1.1315.
• The Japanese Yen (JPY) remained under pressure during Asian trading as signs of easing US-China trade tensions reduced demand for safe-haven assets. Meanwhile, dip-buying in the US Dollar lifted USD/JPY to fresh daily highs near the mid-142.00s. However, further JPY losses may be limited, with hopes for a US-Japan trade agreement and geopolitical risks offering some support. Additionally, traders may stay cautious ahead of the Bank of Japan's (BoJ) upcoming policy meeting.
  Watchlist: EUR/USD: 1.0700-1.1600, USD/JPY: 140-144
   

Basic Materials
 

• West Texas Intermediate (WTI) crude oil prices struggled to find direction during Tuesday’s Asian session, hovering around $61.75 — just above the one-and-a-half-week low touched on Monday. Persistent concerns that the US-China trade war could hurt global fuel demand weighed on sentiment. Additionally, OPEC+ plans to boost output and perceived progress in Iran nuclear negotiations added further pressure.
• Gold (XAU/USD) drifted lower on Tuesday, failing to extend Monday’s rebound from the key $3,265–$3,260 support zone. Signs of easing US-China trade tensions and partial recovery in the US Dollar added pressure on the precious metal. However, ongoing Fed rate cut expectations and lingering geopolitical risks could help limit deeper losses for gold in the near term.
  Watchlist: GOLD 2600-3500, US Oil: 57.00-70.00

Key Economic Events Today:

EST time
08:30 am: USD Goods Trade Balance
08:30 am: USD Wholesale Inventories
09:00 am: USD S&P/CS Composite-20 HPI
10:00 am: USD JOLTS Job Openings
10:00 am: USD CB Consumer Confidence

Earnings

BMO (Before the US Market opens)
KO            Coca-Cola Company
AZN          Astrazeneca Plc
HON         Honeywell Int.
PFE          Pfizer Inc.
SPOT       Spotify
AMC (After the US Market closes): V, BKNG

The TEFS Analyst team wishes you a successful day!