|
| What are this week’s market risks or opportunities? |
|
|
| This week, Trump flew to Beijing for the first U.S. presidential visit since 2017, and brought the CEOs of Nvidia, Apple, Meta, Tesla, Goldman Sachs, and a dozen others into the room. |
|
| On the agenda were chips, AI, market access, and the rules of global tech competition for the next decade. |
|
| Three companies with high stakes from the Beijing summit: Nvidia (chip export policy could unlock up to $5B in China revenue), Meta (Beijing ordered it to reverse an AI acquisition — that gets resolved or it gets worse), and Apple (China is both its factory and its fastest-growing AI market). |
|
| The decisions made at this summit will play out in markets for months. Until then. All eyes will (again) be on Nvidia’s earnings next week as the chip giant continues to set the tone in the markets. |
|
|
|
| Should I consider this trade? |
|
|
| With Nvidia at an all-time high, there are two very different reads on where it goes from here. |
|
| The bull case: the four biggest hyperscalers — Alphabet, Amazon, Meta, and Microsoft — are forecasting combined 2026 capital expenditures of more than $700 billion, and Jensen Huang expects $1 trillion in revenue from Nvidia’s next two chip generations through 2027. The mean analyst target sits at $269.95, or 27.5% above current levels. Our Fair Value model is more conservative at just 2.7%. |
|
| The bear case: Amazon, Google, and other major customers are building their own chips to reduce dependence on Nvidia. Amazon’s in-house chip business has crossed a $20 billion annual revenue run rate, and Broadcom is designing custom chips for Google through 2031. The customers funding Nvidia’s growth are also its emerging competition. |
|
| Wednesday’s number that matters most is forecast. A raised outlook keeps the rally going, but anything short of that gives investors who’ve been sitting on big gains a reason to cash out, even on a strong quarter. |
|
|
|
|
|
|
| Which trades should I consider? |
|
|
| Nvidia at all-time highs not your entry point? Two other names worth watching for chip sector spillover: Applied Materials (AMAT), which makes the equipment chipmakers need to scale AI production, is held in three ProPicks AI strategies this month (Tech Titans, Quality Compounders, and Beat the S&P 500) and up 12.22% month to date. |
|
| Teradata (TDC) is a data analytics company that tracks enterprise AI budgets more than semiconductor cycles, so a disappointing Nvidia quarter doesn’t take it down with the rest of the sector. |
|
| It’s up 16.95% this month, shows 24.8% Fair Value upside, and is held across three ProPicks AI strategies: Tech Titans, Mid-Cap Movers, and Top Value Stocks. At 11.2x forward earnings, it’s cheaper than almost anything else in the AI space. |
|
| We’ve only seen a single stock appear across three strategies a handful of times, and this month there are two. |
|
|
|
|
|
|
| Data correct to 14.05.2026 |
|
