Warren Buffett’s Berkshire Hathaway has increased its stake in Japan’s Mitsubishi Corp to 10.23%, crossing a symbolic ownership threshold and deepening the conglomerate’s presence in the Japanese trading house sector.

This latest move, executed through Berkshire’s wholly-owned subsidiary National Indemnity Company, raised stakes from 9.74% previously and reaffirms Buffett’s bullish stance on Japan’s multifaceted trading corporations.

Berkshire’s strategic expansion in Japanese markets

Berkshire Hathaway’s incremental purchases in Mitsubishi and Japan’s other sogo shosha (trading houses) date back to July 2019.

The company, under Warren Buffett’s guidance, now holds significant stakes in five major firms: Mitsubishi Corp, Mitsui & Co, Itochu Corp, Marubeni Corp, and Sumitomo Corp.

This strategy is underpinned by a yen-denominated debt funding approach, allowing Berkshire to borrow at low Japanese interest rates while benefiting from robust dividend yields and limiting currency risk exposure.

The conglomerate’s Japanese holdings have swelled in value—from an initial outlay of approximately $6 billion to a market value topping $23.5 billion as of late 2024.

This steadily growing share is a testament to Berkshire’s confidence in Japan’s trading houses, which manage vast portfolios covering materials, energy, logistics, and emergent tech investments.

Market reaction and impact on Japanese industry

News of Berkshire’s stake increase triggered an immediate 2.5% surge in Mitsubishi Corp’s stock price, outpacing the broader Nikkei 225 index and reinforcing market optimism for the sector.

Buffett’s investments have proven to be catalysts for Japanese trading house shares in 2025, driving fresh interest from both foreign and domestic investors.

Analysts continue to highlight the value opportunity in Japanese trading houses, noting their single-digit price-earnings ratios compared to stretched valuations in the US.

These companies, often described as the backbone of Japan’s supply chain and resource flows, are now being recognised globally for their capital discipline and consistent shareholder returns.

Governance reforms and long-term outlook

Berkshire’s crossing of the 10% ownership threshold marks more than just a statistical milestone.

It sends a strong signal about the direction of Japanese corporate governance, with Buffett’s approach advocating for increased transparency, board diversity, and capital efficiency.

Berkshire has pledged not to surpass 20% ownership nor to seek hands-on control, yet its influence is already visible in boardrooms and shareholder policies.

Looking forward, Berkshire Hathaway’s strategy appears to be built for patience—Buffett has described these Japanese positions as likely to be held for decades, with successor Greg Abel maintaining frequent contact with company executives.

By leveraging cheap financing, disciplined capital allocation, and a collaborative approach to governance, Berkshire is set to benefit from the long-term stability and innovation within Japan’s diversified trading houses.

Warren Buffett’s latest purchase not only elevates Berkshire Hathaway’s stake in Mitsubishi Corp above 10%, but also signals a broader commitment to Japan’s market and a model for shareholder engagement.

This move continues to shape industry sentiment, drive competitive valuations, and foster structural reform within one of Asia’s largest economies.

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Asian equities finished mostly higher on Thursday, with strong results from US chipmaker Nvidia helping ease concerns about slowing artificial intelligence demand.

Gains across the region were, however, tempered by worries over Federal Reserve independence and reports suggesting Mexico plans to raise tariffs on Chinese imports as part of its 2026 budget proposal.

Hong Kong declines as Meituan slumps

Hong Kong stocks retreated as price wars in the food delivery and electric vehicle sectors weighed on sentiment, alongside Nvidia’s cautious outlook.

The Hang Seng Index dropped 0.8 percent to close at 24,998.82, marking its third consecutive day of losses.

The Hang Seng Tech Index slipped 0.9 percent.

Among major movers, on-demand services giant Meituan plunged 12.6 percent to HK$101.70 after posting weaker-than-expected quarterly earnings.

Its rivals in the delivery space also came under pressure, with Alibaba Group Holding sliding 4.7 percent to HK$115.80 and JD.com falling 5 percent to HK$115.20.

Chinese shares advanced as optimism grew over localization in the chip sector.

Cambricon Technologies surged 15.7 percent and Semiconductor Manufacturing International Corp. climbed 11 percent. T

he benchmark Shanghai Composite Index gained 1.1 percent to 3,843.60, while the CSI 300 Index jumped 1.8 percent.

Japan supported by Buffett stake boost

Japanese markets advanced, aided by fresh investments from billionaire investor Warren Buffett.

The Nikkei average recovered from early losses to finish 0.73 percent higher at 42,828.79, while the broader Topix index added 0.65 percent to 3,089.78.

Mitsubishi Corp gained 1.9 percent after Berkshire Hathaway disclosed it had raised its stake in the trading house to 10.23 percent from 9.74 percent.

Rival Mitsui & Co rose 1.2 percent. Technology investor SoftBank rallied 3.2 percent, and chipmaking equipment supplier Tokyo Electron advanced just over 2 percent.

The Japanese government said economic revitalisation minister Ryosei Akazawa cancelled a planned trip to the United States for tariff negotiations due to technical reasons.

Other regional markets

South Korean stocks ended modestly higher after the Bank of Korea held interest rates steady, as widely expected, and raised its 2025 growth forecast.

The Kospi index edged up 0.29 percent to 3,196.32, with financial, defense and shipbuilding shares among the top gainers.

Australian markets also managed small gains, supported by banking stocks that offset declines in energy and mining.

The benchmark S&P/ASX 200 rose 0.22 percent to 8,980, while the broader All Ordinaries Index gained 0.11 percent to 9,241.10.

India’s Sensex and Nifty closed lower on Thursday as weak investor sentiment followed the United States’ decision to impose higher tariffs on India.

The Sensex fell 705.97 points, or 0.87 percent, to end at 80,080.57, while the Nifty declined 170.85 points, or 0.69 percent, to settle at 24,541.20.

Among the major laggards were Shriram Finance, HCL Technologies, Sun Pharmaceutical Industries, Tata Motors and Tata Consultancy Services, which slipped as much as 3 percent during intraday trade.

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On August 29, Germany will launch its second liquefied natural gas (LNG) import terminal at Wilhelmshaven port. 

This move by state operator Deutsche Energy Terminal (DET) is part of the country’s efforts to diversify its energy supply, according to a Reuters report. 

The unprovoked invasion of Ukraine by Russia in 2022 triggered a significant shift in Germany’s energy policy. 

Historically reliant on Russian pipeline gas, Germany was compelled to seek alternative energy sources to ensure its national security and economic stability.

This pivotal moment led to a strategic pivot towards global, seaborne liquefied natural gas (LNG) imports.

Shifting preferences

To mitigate its dependence on Russian supplies, Germany rapidly developed and deployed new LNG import terminals along its coast. 

These facilities, some of which were fast-tracked as floating storage and regasification units (FSRUs), allowed for the direct import of LNG from various international suppliers, thereby diversifying Germany’s energy portfolio. 

Countries such as the US, Qatar, and other producers of natural gas became increasingly important partners in Germany’s energy supply chain.

In parallel with the increased reliance on LNG, Germany also substantially ramped up its imports of pipeline gas from Norway. 

Norway, a long-standing and reliable energy partner, became an even more crucial source of natural gas for Germany. 

This dual approach of increasing both LNG imports and pipeline gas from Norway served to replace the substantial volumes previously supplied by Russia, which had accounted for a significant portion of Germany’s gas consumption. 

DET markets and operates floating terminals. These terminals convert liquefied natural gas back into gas, which is then fed into Germany’s gas network.

Boosting LNG capacity

DET announced that the commissioning and tests for Wilhelmshaven 2’s equipment have been completed.

These operations, which began in May, enable subsea gas transfer to an onshore head station, thereby minimising environmental impact, among other benefits.

DET managing director Peter Roettgen was quoted in the Reuters report:

Regular operations of the Wilhelmshaven 2 terminal with the floating storage and regasification unit “Excelsior” can now make their contribution to security of supply and to filling gas storage facilities before the next heating season.

In a significant development for the energy market, a recent sales round conducted by DET in July successfully allocated all available regasification slots for both 2025 and 2026. 

These crucial slots, which enable the conversion of LNG back into its gaseous state for distribution, were secured by various key players within the gas market. 

Future supply

This outcome underscores the robust demand for regasification capacity and signals active planning by market participants to ensure their future gas supply. 

US-based LNG company Excelerate Energy owns and operates the ship Excelsior. Additionally, DET has commissioned two other major partner firms.

Additionally, local management processes will be coordinated by German Gasfin Services, while Lithuanian KN Energies will be responsible for commercial and technical maintenance services.

This year, the vessel is projected to supply the onshore grid with up to 1.9 billion cubic meters of natural gas. 

This volume is sufficient to meet the heating demands of approximately 1.5 million households, each comprising four people residing in apartment buildings.

The amount is set to increase to 4.6 bcm in both 2026 and 2027.

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Snowflake shares soared 14% during Thursday premarket trading after the cloud data platform beat Q2 earnings estimates and raised its revenue forecast while signalling accelerating demand for its artificial intelligence offerings.

Revenue for the quarter rose 31.8% to $1.14 billion from a year ago against an expected $1.09 billion.

For the full year, Snowflake raised its product revenue guidance to just under $4.4 billion, higher than its previous $4.33 billion outlook and marginally above analyst estimates of $4.34 billion.

The rally, if sustained, would add more than $11 billion to the company’s market capitalization, lifting it well above $78 billion.

The surge underscores investor confidence that Snowflake is firmly positioned to benefit from a corporate wave of data modernization and AI adoption.

As companies invest heavily in integrating large language models and deploying AI applications, Snowflake has emerged as one of the sector’s most sought-after players.

“We have an enormous opportunity ahead as we continue to empower every enterprise to achieve its full potential through data and AI,” Chief Executive Sridhar Ramaswamy told investors.

Quarterly results beat Wall Street expectations

The company reported a narrower loss of $298 million, or 89 cents per share, compared with a loss of $316.9 million, or 95 cents per share, a year earlier.

Adjusted earnings stood at 35 cents per share, beating analysts’ consensus forecast of 27 cents, according to FactSet.

Revenue growth remained resilient, with Snowflake’s remaining performance obligations — a measure of future contracted sales — jumping 33% year-on-year to $6.9 billion.

Executives highlighted the breadth of enterprise engagement, noting that more than 6,100 accounts are now using Snowflake’s AI-driven services on a weekly basis.

“Thousands of customers are betting their business on Snowflake,” Ramaswamy said, adding that demand for its AI products is beginning to drive incremental revenue streams beyond its traditional data warehousing services.

Guidance lifted as AI adoption accelerates

For the full year, Snowflake raised its product revenue guidance to just under $4.4 billion, higher than its previous $4.33 billion outlook and marginally above analyst estimates of $4.34 billion.

Third-quarter product revenue is projected to come in between $1.12 billion and $1.13 billion, also slightly ahead of Wall Street’s forecast of $1.12 billion.

Executives credited the upgrades to a wave of adoption across industries including financial services, retail, and healthcare.

Snowflake’s platform, they said, is increasingly used for building data pipelines, training AI models, and deploying AI-enabled applications at scale.

“That’s a catalyst for next-generation databases, whether that be MongoDB, Snowflake or Databricks,” said Richard Clode, portfolio manager at Janus Henderson Investors, which holds Snowflake stock.

Analysts raise price targets after upbeat results

The stronger-than-expected results and raised guidance triggered a flurry of analyst upgrades.

Barclays lifted its price target to $255 from $219, maintaining an overweight rating and citing robust product uptake alongside strong customer pipelines.

At least seven other brokerages followed with upward revisions.

Piper Sandler raised price target to $285/ share from $215, also maintaining an overweight rating on the stock.

Data compiled by LSEG showed Snowflake is rated “buy” on average by 51 analysts, with a median price target of $255.

The stock has already risen about 30% so far in 2025, but remains among the most expensive names in the cloud software sector.

It trades at 142 times forward earnings estimates, compared with 76 times for MongoDB and 64 times for Datadog.

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Chinese AI chip company Cambricon Technologies delivered some impressive numbers that have everyone talking. The company saw its revenue skyrocket by 4,400% and actually turned a profit for the first time in a six-month period.

This development is a big deal geopolitically. With the US tightening restrictions on chip exports to China and Beijing pushing hard for tech independence, Cambricon is emerging as a real challenger to Nvidia’s dominance.

The timing couldn’t be better for them, especially with the Chinese government actively encouraging its biggest tech companies to buy domestic chips instead of foreign ones.

Cambricon’s financial turnaround sparks market euphoria

Cambricon pulled in 2.88 billion yuan (about $404 million) in just the first six months of 2025, that’s a mind-blowing 4,348% jump from the same period last year.

Here’s the kicker: after bleeding money for years, they didn’t just stop the losses, they completely flipped the script.

The company posted a hefty 1.04 billion yuan profit ($144 million), which is pretty remarkable when you consider they were down 533 million yuan just a year ago.

The markets took notice immediately. Cambricon’s stock jumped over 7% to hit an all-time high of 1,484.02 yuan, pushing the company’s value to around $80 billion.

What’s driving this incredible turnaround is basically a collision of politics, technology, and timing that couldn’t have worked out better for Cambricon.

On one side, US export restrictions are making life increasingly complicated for Nvidia. Even their watered-down H20 GPUs that are specifically designed to meet Chinese regulations is getting harder to sell to Chinese companies.

Meanwhile, Beijing isn’t being subtle about nudging its biggest players like Baidu and Alibaba to ditch foreign chips and go local instead.

The result? Chinese companies that used to automatically reach for Nvidia are suddenly shopping for alternatives right when Cambricon has chips ready to sell.

Can Cambricon dethrone Nvidia?

Cambricon’s stock surge isn’t just investors getting excited, it’s actually pointing to something much bigger happening in the tech world. The company is starting to prove it can go toe-to-toe with Nvidia in ways that actually matter.

A huge part of the recent momentum comes from DeepSeek, one of China’s hottest AI startups, announcing that its new V3.1 model works seamlessly with domestic chips.

It means Cambricon’s hardware isn’t just a backup option anymore and it’s good enough that cutting-edge AI companies are choosing it for their most advanced projects.

But let’s be real, Cambricon still has a mountain to climb. Sure, their new Siyuan 690 chip is designed to match Nvidia’s top-tier H100, but analysts aren’t exactly ready to call it game over for Team Green.

Nvidia’s still way ahead when it comes to software and the cutting-edge manufacturing processes that make their chips so powerful.

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On Thursday, a tanker laden with liquefied natural gas (LNG) from Russia’s sanctioned Arctic LNG 2 plant arrived at an import terminal in southern China.

This vessel had loaded its cargo at a Russian storage facility in June, according to ship-tracking data from Kpler and LSEG, quoted in a Reuters report.

This would mark the first cargo received from the Arctic LNG 2 project if the tanker unloads LNG at the terminal.

The project is currently subject to Western sanctions due to Russia’s conflict with Ukraine.

The Arctic Mulan LNG tanker

From February to April, the Arctic Mulan LNG tanker was observed idling off the Egyptian coast. 

Subsequently, in early May, it journeyed through the Suez Canal, Red Sea, and Bab al-Mandab Strait, as indicated by LSEG and Kpler data.

The vessel journeyed east through Southeast Asia, then north to Russia’s Kamchatka Peninsula, arriving at the Koryak floating storage unit (FSU) on June 3.

After loading, it sailed south, reaching China’s Beihai LNG terminal in southern Guangxi province on August 28, where it berthed.

“While discharge is not yet confirmed, this appears to be the first Arctic LNG 2 delivery since loadings began in August 2024,” Kpler analyst Go Katayama was quoted in the report.

The timing may align with President Putin’s upcoming visit to China, though the buyer remains unclear.

Russian President Vladimir Putin will be among several foreign heads of state and government attending a military parade in Beijing next week to mark the formal surrender of Japan during World War Two.

US sanctions targeting Russia’s oil and gas revenues now include the Arctic Mulan tanker.

This action affects the registered owners and managers of several LNG vessels.

Arctic Mulan, a tanker, is managed by Skyhart Management Services, an Indian company. 

Skyhart Management Services shares its registered address with Zinnia International Co, which is listed as the tanker’s registered owner.

This information is according to the shipping database Equasis.

Test of sanctions

According to Rystad Energy analyst Jan-Eric Fahnrich, the tanker’s journey to China seemed to be primarily a test of Washington’s position on sanctions, especially considering the almost non-existent Chinese spot demand for LNG.

He said in the report:

US President Donald Trump’s reaction will likely dictate whether this remains a one-off transaction, or it opens the door for a number of vessels currently eastbound via the Northern Sea Route.

Arctic LNG 2, a project 60% owned by Russia’s Novatek, aimed to be one of Russia’s largest LNG plants, with a target annual output of 19.8 million metric tons. 

However, despite loading several cargoes onto sanctioned tankers over the past year, its future is uncertain due to sanctions.

According to Kpler data, eight cargoes were loaded from Arctic LNG 2 onto sanctioned LNG vessels last year.

Of these, four were discharged into the Koryak FSU, which, according to the same Kpler data, has exclusively received cargoes from Arctic LNG 2.

So far this year, five cargoes have been loaded from the project. All sanctioned tankers travelled east via the Northern Sea Route.

Of these, two are currently located north of Russia, and the remaining three are near the Koryak FSU.

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Dow futures edged higher on Thursday, showing investors are feeling pretty decent about what’s coming down the pipeline. The futures were up around 86 points, about 0.2% as traders positioned themselves ahead of some key economic reports dropping today.

Everyone’s basically waiting to see the latest unemployment numbers and pending home sales data, which should give us a better read on how the economy’s actually doing.

The mood seems cautiously optimistic, helped along by tech stocks continuing to hold their ground and this general feeling that the US economy is chugging along at a steady pace.

5 things to know before Wall Street opens

1. Today’s shaping up to be one of those data-heavy days that actually matter, with a bunch of economic reports that could move markets in a real way.

The big ticket item is the second GDP estimate for Q2, which should give us a much clearer picture of whether America’s economic recovery has real staying power.

But that’s not all. We’re also getting the preliminary Corporate Profits reading, fresh jobless claims data (both initial and continuing), and updates on how much consumers are actually spending and earning.

2. Investors are closely monitoring the upcoming corporate profits data, as these figures will provide crucial insights into the underlying health of the American economy.

Companies have navigated significant challenges throughout the year, including volatile demand patterns, fluctuating commodity prices, and persistent wage pressures.

The profit trends emerging from this data will serve as a key indicator of how effectively businesses have managed these headwinds.

Weak profit growth or an unexpected contraction could substantially dampen expectations for the remainder of 2025, while strong earnings would reinforce the positive GDP figures already reported.

Such robust performance would strengthen confidence in the economic recovery’s sustainability.

3. This week’s jobless claims will give investors another check on how sturdy the US labor market really is. Economists are looking for initial claims to tick up slightly to about 235,000 from 230,000 last week, with continuing claims holding just under two million.

The numbers matter as they feed directly into Fed thinking, household spending power, and earnings outlooks.

Wage growth looks steady but not spectacular, and markets will be quick to react if the data shows layoffs creeping higher or the slowdown arriving faster than expected.

4. The home sales numbers are going to tell us a lot about where the housing market is actually headed, and that matters more than usual given how much mortgage rates have been bouncing around lately.

Economists are penciling in a small monthly decline of 0.8% and a bigger year-over-year drop of 2.8%.

5. Major Gulf markets are already positioning themselves ahead of the US economic releases, while oil, natural gas, and other key commodities continue their recent volatile streak.

Energy traders know that any surprises in these numbers can quickly spill over into energy stocks and shift the entire inflation narrative.

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The UK government is poised to propose new regulations aimed at shaking up the domination of tech giants like Apple and Google, who have formed an “effective duopoly,” as per the UK’s Competition and Markets Authority (CMA).

The plan involves slapping both tech giants with “strategic market status” designations, which would give regulators much more power to enforce rules designed to level the playing field.

The idea is to create more space for developer innovation and give consumers actual choices beyond the current two-horse race.

The regulators are pointing to murky app store ranking systems that nobody really understands, commission fees that take a hefty bite out of developer revenues, payment restrictions that force everyone through Apple and Google’s systems, and compatibility barriers that make it harder for apps and devices to work together seamlessly.

CMA’s challenge to Apple and Google duopoly

As per the CMA, Apple and Google’s stranglehold on mobile apps is stifling competition and innovation, and that’s bad news for both UK developers and regular consumers.

The numbers tell the story as somewhere between 90% and 100% of mobile devices in the UK run either iOS or Android, which means these two companies essentially control the entire mobile ecosystem.

The CMA has identified several problematic practices that flow from this dominance: app review processes that seem inconsistent and arbitrary, algorithms that appear to favor certain apps over others, and commission rates that can hit 30% on in-app purchases.

What really seems to bug the regulator is how these practices create a ripple effect throughout the mobile economy.

Developers face higher costs and fewer options for getting their apps noticed, while consumers end up with fewer choices and potentially higher prices.

The CMA also points out that developers often can’t even direct their own users toward alternative payment methods or subscription services without running into roadblocks.

Tech giants push back

Apple and Google aren’t exactly rolling over for these new rules.

Both companies are pushing back hard, arguing that the CMA’s proposals could seriously damage user privacy and security while hampering their ability to keep innovating.

Apple is being particularly direct about the potential consequences, pointing to what happened with the EU’s Digital Markets Act as a cautionary tale.

They delayed rolling out Apple Intelligence in Europe because of compliance headaches, and they’re warning the UK could face similar feature delays if these regulations go through.

Google is taking a different tack, emphasizing that Android is open-source and already promotes competition and choice in ways that Apple’s closed system doesn’t.

They’re calling for any new regulations to be grounded in solid evidence and strike a reasonable balance between promoting competition and maintaining innovation.

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Nvidia investors, long accustomed to stellar forecasts, faced a dose of uncertainty after the chipmaker left China-related sales out of its latest outlook.

The Nvidia stock slipped about 2% in premarket trading on Thursday, despite the company beating Wall Street estimates and signalling continued strong growth ahead.

The absence of projected revenue from its H20 chips in China—one of the world’s most critical semiconductor markets—cast a shadow over what otherwise looked like another record-setting quarter for the Silicon Valley giant.

Chief Executive Jensen Huang underlined the scale of the opportunity, noting that China alone could represent as much as $50 billion in potential sales this year if the firm were able to fully access the market.

Revenue climbs 56% but data centre sales miss raises questions on AI demand growth

For the second quarter, Nvidia reported revenue of $46.7 billion, up 56% from the same period last year.

Its data centre division, which has become the backbone of its AI chip dominance, generated $41.1 billion in sales.

The figure was just short of analyst expectations, according to Visible Alpha data, and prompted questions about whether demand from cloud providers is showing early signs of slowing.

Looking ahead, Nvidia forecast revenue of $54 billion for the current quarter, above Wall Street estimates of $53.8 billion.

Analysts noted that the forecast explicitly excluded potential contributions from H20 shipments to China, which some had factored into their models.

US-China trade war casts long shadow

Nvidia has found itself at the centre of the technology trade tensions between Washington and Beijing.

The Trump administration temporarily restricted exports of the H20 chip, designed to comply with US rules governing sales to China, before later easing the restrictions.

However, officials have indicated that 15% of any revenue from licensed shipments may be directed to the US government.

The uncertainty has left investors and analysts speculating about how much momentum Nvidia can sustain in the absence of Chinese sales.

Jensen Huang said the Chinese market could grow by 50% annually, underscoring the scale of the opportunity at stake.

Analysts weigh in on outlook

Market watchers expressed a range of views on the results and outlook.

Paul Meeks of Freedom Capital Markets said he was encouraged by Nvidia’s forecast, which came in strong even without China shipments.

“The stock likely ran too far too fast into the print,” he said, adding that he expects a “dumbed down” version of the chips may ultimately be allowed as part of trade negotiations.

Jay Goldberg of Seaport Research Partners pointed to weaker-than-hoped growth in data centre sales, calling the results a concern given Nvidia’s elevated market position.

“These results are good for a normal company in normal times, but Nvidia is neither,” he said.

Gil Luria of D.A. Davidson argued that guidance disappointment stemmed entirely from excluding China, while Bob O’Donnell of Technalysis Research suggested that the modest miss in data centre revenue could be an early signal of a slowdown in AI infrastructure build-out.

Meanwhile, Richard Clode of Janus Henderson Investors said the debate now shifts to the durability of Nvidia’s growth.

“At this cadence, we’re going to get there fairly quickly,” he said of the company’s path to a trillion-dollar annualised run rate.

Can Nvidia’s m-cap touch $5 tn by 2026?

Despite the trade overhang, many analysts remain bullish on Nvidia’s long-term prospects.

Wedbush analysts called the quarter “another validation of the AI revolution” and reiterated that the broader chip landscape remains dominated by Nvidia.

The firm said any stock pullback should be seen as a buying opportunity, noting that Nvidia’s market capitalisation could approach $5 trillion by early 2026.

The debate over whether Nvidia can continue its rapid climb now hinges on how quickly Chinese sales can resume and whether demand from hyperscalers and enterprises remains as strong as expected.

For now, the company has once again delivered on revenue growth, but investors are left questioning whether the AI boom can withstand the pressures of geopolitics.

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SentinelOne stock price has imploded in the past few months, even as the cybersecurity industry has continued to grow this year. S peaked at $29.26 in December last year, reaching a low of $15.40 in April. It was trading at $17.15 as traders waited for its earnings.

SentinelOne earnings ahead

SentinelOne is a top company offering AI-powered cybersecurity solutions to clients like Aston Martin, Norwegian Airlines, Uber, Hitachi, Samsung, and ServiceNow. 

Its main platform is known as Singularity, which offers unfettered visibility, detection, and autonomous agents. This platform has grown rapidly in the past few years as demand for cybersecurity solutions has soared.

Data compiled by SeekingAlpha shows that the annual revenue rose from $93.1 million in 2020 to over $821.5 million last year. However, the main challenge is that the company has continued to lose money.

SentinelOne’s net loss stood at over $288 million last year. Its trailing twelve-month (TTM) net loss jumped to over $4265 million. 

The most recent results showed that the company’s revenue rose by 23% to over $229 million, with its annual recurring revenue surging by 24% to $948 million. This growth happened as more companies moved into its platform. 

The next important catalyst for the company will be its upcoming financial results. Analysts expect the upcoming results to show that its quarterly revenue will be $242 million, up by 21.73% from the same period last year. This forecast is in line with what the company guided in the last results.

SentinelOne’s earnings per share (EPS) is expected to come in at minus 19 cents, up from 22 cents. 

While its second quarter results are important, the SentinelOne stock price will react to its forward guidance for the third quarter. Its Q3 revenue is expected to be $255 million, up by 21% from the same time last year. 

Judging by other companies in the space like Okta and Palo Alto Networks, odds are that its guidance will be higher expectations. 

A key challenge is that SentinelOne stock price is still overvalued based on the rule-of-40 model. This is a common approach that looks at its revenue growth and its margins. 

SentinelOne’s business is expected to grow by 22% this year, while the non-GAAP operating margin will be between 2% and 4%. Assuming it hits the upper side of the range, then it has a rule-of-40 multiple of 26%, much lower than the key point at 40. 

On the positive side, the rule-of-40 metric based on the free cash flow (FCF) of 24% gives it a figure of 46%.

SentinelOne stock price technical analysis

The daily chart shows that the SentinelOne share price has crashed in the past few months, moving from a high of $29.25 in November to a low of $15.40. 

It has remained below the 50-day and 100-day moving averages, a sign that the bearish trend is continuing. On the positive side, it has formed a double-bottom pattern at $15.40, whose neckline is at $21.3.

The Percentage Price Oscillators (PPO) has formed a bullish crossover pattern. Therefore, the stock will likely rebound and possibly hit the 100-day moving average at $18.40. A drop below the support at $15.40 will invalidate the bullish outlook.

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