Gold prices continued to fall on the last day of the week as a stronger dollar and improved risk appetite dented demand for the precious metal. 

Silver was also in the red as prices fell below the $90-per-ounce mark. 

Meanwhile, oil prices climbed after falling sharply in the previous session.

Investors resorted to lower-level buying amid uncertainty over oil supply from Iran. 

A strengthening dollar and news of a Chinese crackdown on high-frequency trading led to a drop in base metal prices on Friday. 

This cooled market sentiment at the end of a dramatic week, following frenzied activity in mainland futures that had previously driven global price increases, according to Neil Welsh, head of metals at Britannia Global Markets.

Gold, silver extend losses

Gold prices fell below the $4,600 level at the time of writing. The metal faces apparent resistance around $4,640, a point that has been difficult for prices to overcome.

“There has been some reduction in safe-haven demand as geopolitical risks around Iran have eased for now,” said David Morrison, senior market analyst at Trade Nation. 

US President Donald Trump does not seem eager to commit to military engagement. 

He stated that the regime claims the protestor massacres have ceased and that those arrested will not face the death penalty.

“Improved risk sentiment has led to a recovery in equities, and while the Fed is expected to ease monetary policy this year, the forecast is that they will keep rates on hold until the summer,” Morrison added. 

This is weighing on the non-yielding metal.

Silver prices on COMEX were at $88.15 per ounce, down more than 4.5% as the white metal experiences a sharp sell-off after prices hit record levels earlier this week. 

“The question for traders is whether these recent selloffs are a sign that silver is about to correct down sharply from here, or if it is simply building momentum for another squeeze higher?” Morrison added. 

It remains significantly overbought when measured by its daily MACD, which is twice as high as levels reached at the peak of its last bull market in April 2011.

Oil climbs

Oil prices climbed more than 1% on Friday as concerns over supply from Iran remained. 

“Developments in Iran are currently the decisive price driver on the oil market,” Barbara Lambrecht, commodity analyst at Commerzbank AG, said in a report. 

At the time of writing, the price of West Texas Intermediate crude oil was at $59.87 per barrel, up 1.2%, while Brent was at $64.46 a barrel, up 1.1% from the previous close. 

This week, both benchmarks reached multi-month highs, a surge driven by the eruption of protests in Iran and a signal from US President Donald Trump regarding the potential for military strikes.

The price of oil fell by $3 on Thursday after the risk of immediate American military intervention decreased, a change attributed to the latest statements made by Trump.

However, the potential for the situation to escalate persists, with worries extending beyond the possible loss of Iranian exports, which, as reported by Bloomberg, were nearly 1.9 million barrels per day in the autumn.

Lambrecht said: 

Above all, there are worries about a possible blockade of the Strait of Hormuz by Iran in the event of an escalation, through which around a quarter of seaborne oil supplies flow.

If a sustained easing becomes apparent, attention will likely shift back to developments in Venezuela, according to Lambrecht. This could result in oil, which was previously sanctioned or blocked, gradually returning to the global market, she added. 

Base metals drop

Prices of copper, aluminium and zinc dropped on Friday as a stronger dollar weighed on the complex. 

A stronger dollar makes commodities priced in the greenback more expensive for overseas buyers, limiting demand among investors. 

At the time of writing, the three-month copper contract was at $12,739 per ton, down 3%, while the aluminium contract was 1.6% lower at $3,118.50 per ton. 

The market’s attention moved from concerns over US tariffs to economic data. 

A stronger-than-expected initial jobless claims report, combined with firm statements from multiple US Federal Reserve officials, led to a rise in the US dollar and downward pressure on copper prices, said Britannia Global Markets’ Welsh. 

The Fed officials stressed the ongoing priority of combating inflation, maintaining restrictive policies, and indicated a low likelihood of interest rate reductions in the near future.

The post Commodity wrap: gold, silver, base metals drop as firm dollar, easing Iran tensions hit sentiments appeared first on Invezz

Wall Street’s largest banks have closed out 2025 on a high note, delivering record revenues and rising profits as a rebound in dealmaking, buoyant trading activity, and resilient lending helped defy earlier fears of a slowdown.

The fourth-quarter earnings season, led by results from Goldman Sachs and Morgan Stanley, underscored a renewed sense of confidence across the industry.

Strong pipelines for initial public offerings, mergers and acquisitions, and private-equity transactions have reinforced expectations that investment banking momentum will carry into 2026.

That optimism persists even as the sector faces political and policy uncertainty, including renewed scrutiny from US President Donald Trump, whose proposal to cap credit card interest rates has unsettled lenders.

Goldman Sachs and Morgan Stanley both reported higher quarterly profits, supported by a flurry of dealmaking and robust trading activity.

Goldman’s shares rose 5.1% after the results, while Morgan Stanley gained 6%, reflecting investor confidence that capital markets activity is regaining traction.

Apart from expected one-off charges at JPMorgan Chase and Citigroup, profits rose broadly across the sector.

Taken together, the six largest US banks — JPMorgan, Bank of America, Citigroup, Wells Fargo, Goldman Sachs, and Morgan Stanley — generated roughly $593 billion in revenue in 2025, a 6% increase from the prior year and the highest on record.

Combined profits reached about $157 billion, up 8% year on year and only slightly below the pandemic-era peak of 2021, which was inflated by accounting gains linked to loan-loss reserves.

Trading desks steal the spotlight

Much of the earnings strength this quarter was driven by trading floors, which benefited from sharp swings in markets during the year.

Client activity surged after tariff announcements in April rattled equities, followed by a strong recovery that pushed the S&P 500 and Dow Jones Industrial Average to record highs.

Goldman Sachs retained its position as the top player in equities trading, generating $16.5 billion in revenue, up 23% from the previous year.

Morgan Stanley and JPMorgan recorded even faster growth, with equities trading revenue rising 28% and 33%, respectively.

Banks said hedge funds and other sophisticated investors were particularly active, often borrowing more aggressively to amplify their bets.

“Equity trading revenues have been the story of the earnings so far,” said Brian Mulberry, senior client portfolio manager at Zacks Investment Management.

He pointed to increased use of leverage and options as key drivers of growth.

At Goldman, the effects of strong trading reverberated across the firm.

Lending tied to trading activity boosted revenues in investment banking, wealth management, and adjacent businesses.

The bank has been expanding its lending operations to smooth out the swings that come with volatile trading and dealmaking cycles.

Goldman reported record revenue from equities financing, which includes lending to hedge funds, as well as strong growth in fixed-income, currencies, and commodities financing.

These businesses involve a wide range of loans, from capital call facilities for investment firms to warehouse financing for mortgage lenders.

Volatility likely to persist

Market volatility, which proved so lucrative for trading desks in 2025, is widely expected to persist into 2026.

Investors remain wary of stretched equity valuations, concerns about a bubble in artificial intelligence stocks, and uncertainty over the Federal Reserve’s next moves.

“In periods of heightened policy volatility, you tend to see more knee-jerk trading,” said David Wagner, head of equities at Aptus Capital Advisors.

He added that midterm election years historically see above-average market drawdowns, increasing the likelihood of further trading surges.

For banks, that volatility is a double-edged sword: it supports trading revenue but can also dampen risk appetite if markets turn sharply lower.

Dealmaking revival gathers pace

Beyond trading, a revival in mergers and acquisitions is underpinning optimism across Wall Street.

Rising deal activity is also fuelling demand for loans that help finance acquisitions, infrastructure projects, and corporate investment, particularly in sectors tied to artificial intelligence.

Industrywide debt underwriting activity surpassed its previous peak in 2020, according to Dealogic, while loans used to fund acquisitions hit new highs, supported by several megadeals.

Those trends are translating into higher investment banking fees and renewed confidence among dealmakers.

Goldman Sachs chief executive David Solomon said internal forecasts suggest M&A volumes this year could approach the 2021 record, with a bullish scenario implying a new high.

“We are seeing an accelerating pipeline in M&A and IPOs,” Morgan Stanley chief financial officer Sharon Yeshaya said in an interview with Reuters, highlighting healthcare and industrials as particularly active sectors.

The list of companies reportedly considering IPOs in 2026 continues to grow and includes high-profile names such as OpenAI, SpaceX, and AI chipmaker Cerebras.

“I expect 2026 to be a very strong year of IPO issuance and announced M&A,” said Macrae Sykes, a portfolio manager at Gabelli Funds.

He cited healthy economic growth, deregulation, and the lagged effects of Federal Reserve rate cuts in 2025 as key tailwinds.

Notably, the resurgence in dealmaking defied expectations that activity would stall after Trump announced sweeping tariffs on major global economies last spring, which initially unsettled markets.

“We entered 2026 with our deal pipeline meaningfully greater than at any point in the last five years,” Wells Fargo chief executive Charlie Scharf told analysts, while cautioning that market conditions can change quickly.

Lending growth defies slowdown fears

Perhaps the most striking feature of the banks’ 2025 performance was the surge in lending.

The four largest US lenders expanded their loan books by $385 billion, nearly a 10% increase and the biggest annual jump in years.

That growth came despite widespread concerns about a slowing economy and intensifying competition from private credit firms.

Results from Bank of America, Citigroup, and Wells Fargo, alongside JPMorgan’s earlier report, showed stronger-than-expected loan growth in the fourth quarter.

Yet the lending story is not one of booming consumer demand.

At Bank of America, lending to households through mortgages, credit cards, and auto loans rose just 2% last year, while corporate lending increased 3%.

The real surge came from the banks’ trading desks, which lend to specialty finance firms, private equity funds, and private credit investors.

Lending in that area jumped 30%, reflecting the growing role of banks in funding complex financial structures.

Rising leverage raises questions

While these loans support economic activity, particularly for mid-sized companies backed by private credit, they also add layers of leverage to the financial system.

Structures such as continuation funds, dividend recapitalisations, and special-purpose vehicles have become more common, raising concerns about hidden risks.

Recent collapses at companies such as First Brands and Tricolor have highlighted potential vulnerabilities, delivering losses to banks, including JPMorgan.

Dimon has acknowledged the murkiness of the picture.

While he insists JPMorgan’s lending to alternative financiers is prudent, he has also described it as a form of regulatory arbitrage.

On a recent call, JPMorgan for the first time disclosed its own estimate of exposure to non-bank financial institutions, which rose from $50 billion in 2018 to $160 billion last year.

Dimon urged regulators to consider whether the system is better served by this structure.

Credit card cap stirs industry unease

Still, not all policy signals are being welcomed by Wall Street.

Trump’s proposal to cap credit card interest rates at 10% for one year has drawn sharp pushback from bank executives, who warn it could restrict credit availability and weigh on economic activity.

Credit cards are among banks’ most profitable products, reflecting the unsecured nature of the debt and the higher interest rates charged to compensate for risk.

Bank of America chief executive Brian Moynihan said the debate around the proposal underscores concerns about unintended consequences.

“If you bring the caps down, you’re going to restrict credit,” Moynihan said on an earnings call.

That would mean fewer consumers qualifying for cards and lower credit limits for those who do.

Trump has argued that Americans are being “ripped off” by high credit card rates and has framed the cap as a way to ease financial pressure on households.

For banks, however, the proposal adds another layer of uncertainty just as earnings momentum is building.

Confidence builds for 2026

Bank executives were quick to flag risks ranging from policy uncertainty to geopolitical tensions.

Yet the dominant tone on earnings calls was one of confidence that 2026 could prove even stronger, with dealmaking, IPOs, and financing activity set to accelerate.

“As predicted, the capital markets are kicking in with well-capitalized corporates and higher-end consumers driving the economy forward,” Morgan Stanley chief executive Ted Pick said on a call with analysts, noting that the firm posted record wealth management revenue in 2025.

JPMorgan chief executive Jamie Dimon echoed that view, striking a more upbeat tone than in past years when he famously warned of an economic “hurricane” that never materialised.

“In the short run — six months, nine months, even a year — it’s pretty positive,” Dimon said, according to a FactSet transcript.

He pointed to steady job growth, healthy consumer finances, and fiscal stimulus flowing from the Republican-backed One Big Beautiful Bill Act passed last summer.

He also highlighted the potential for deregulation to support growth.

The post Wall Street’s top banks hit record 2025 revenue as deal flow rebounds appeared first on Invezz

US stocks rose on Friday as Wall Street attempted to close out a turbulent week on a positive note, with gains in technology and industrial shares helping lift the major averages despite lingering geopolitical and policy-related concerns.

The S&P 500 climbed 0.3%, while the Dow Jones Industrial Average added about 100 points, or 0.2%.

The Nasdaq Composite outperformed, gaining 0.5%, supported by renewed strength in large-cap technology stocks.

Tech and industrials lift markets

Technology names were among the session’s leaders.

Shares of Nvidia rose more than 1%, extending a rebound that began earlier in the week following strong earnings from Taiwan Semiconductor Manufacturing.

Tesla also traded more than 1% higher, contributing to the Nasdaq’s advance.

On the Dow, industrial heavyweights IBM and Honeywell led gains, rising 1.9% and 1.6%, respectively.

Their advance reflected continued investor interest in companies viewed as beneficiaries of longer-term trends in automation, digital infrastructure, and industrial modernisation.

Despite Friday’s gains, weekly performance across the major benchmarks was mixed.

The S&P 500 hovered just below breakeven for the week, while the Nasdaq Composite was on track for a modest 0.2% decline.

The Dow outperformed its peers, heading for a weekly gain of about 0.1%.

Chip rally follows TSMC results and trade deal

The major averages were coming off a winning session on Thursday, when semiconductor stocks surged.

Taiwan Semiconductor Manufacturing led the advance after delivering a strong fourth-quarter earnings report that reinforced confidence in sustained demand for advanced chips tied to artificial intelligence.

That optimism was further bolstered by news of a trade agreement between the United States and Taiwan, under which Taiwanese chip and technology companies committed to invest at least $250 billion in production capacity in the US.

The agreement was viewed as a positive step toward strengthening domestic supply chains and supporting long-term growth in the semiconductor sector.

The combination of robust earnings and supportive policy developments helped offset broader market anxiety that has dominated trading in recent sessions.

A week shaped by Washington headlines

Investors spent much of the week grappling with a steady stream of headlines from Washington.

Those ranged from heightened geopolitical tensions involving Iran and Greenland to renewed concerns over threats to the Federal Reserve’s independence.

The uncertainty weighed on sentiment earlier in the week, contributing to bouts of volatility as traders attempted to assess how political developments could affect monetary policy, trade relations, and global risk appetite.

Despite those headwinds, markets have remained resilient, supported by solid corporate earnings and continued enthusiasm around artificial intelligence and technology investment.

Morgan Stanley sees earnings-driven upside

Looking ahead, analysts at Morgan Stanley Wealth Management said corporate earnings strength could help propel further gains in equities.

In a note, the firm’s strategists, including Lisa Shalett, said expectations for corporate results are “already robust” and reflect assumptions of significant productivity gains, operating margin expansion, and record-high operating leverage.

The analysts cautioned, however, that the impact of stimulus measures in President Donald Trump’s signature budget bill on US consumers may be “overestimated versus overall sentiment.”

They also pointed to headwinds from elevated credit levels and affordability pressures that could temper consumer spending.

At the same time, Morgan Stanley said the widespread adoption of artificial intelligence, which helped power strong equity gains in 2025, is likely to proceed more slowly than many investors currently expect.

The firm argued that the Federal Reserve’s focus may shift away from cutting interest rates and toward “accommodating balance sheet growth” this year. That shift, they said, will shape the broader market backdrop.

The post US stocks open in the green: S&P 500 climbs 0.3%, Nasdaq up 0.5% appeared first on Invezz

Circle stock price remains under pressure this year, continuing a downward spiral that started in June last year when it peaked at $298 shortly after its initial public offering (IPO). CRCL stock dropped to $78.50, down by 75% from its highest level in June. This article explores some of the key reasons why the stock has crashed.

Circle stock has crashed as USDC growth stalls 

The first main reason why Circle stock has crashed is that data shows that the supply of USD Coin (USDC) has stalled in the past few months. 

Data compiled by CoinMarketCap shows that the market capitalization stands at $75.55 billion today. It has remained inside this range since August last year.

While USDC usage has jumped, the market capitalization has remained under pressure in the past few months, which will have a direct impact on its business because of how the business works. Like other stablecoin companies, it makes money by investing its cash holdings in short-term government bonds.

Therefore, there is a likelihood that its revenue growth will remain under pressure in the near term. Data compiled by Yahoo Finance shows that the upcoming revenue will be $751 million, while its annual figure will be $2.72 billion. It is expected to make $3.3 billion this year.

Valuation concerns remain

Circle stock has also plunged in the past few months because of valuation concerns. At its peak in 2025, the company had a market capitalization of $60 billion. 

A $60 billion valuation was highly excessive, considering that USDC had a market cap of over $61 billion at that time. Still, despite its recent drop, there are signs that the company is highly overvalued.

Assuming that Circle invests all its assets in short-term government bonds yielding 4%, it will make over $3 billion this year. Its profit will be much lower since Coinbase takes a substantial amount. 

Also, there is a risk that its profits will be lower as the Federal Reserve cuts rates. As such, a $20 billion valuation is still relatively high for the company. 

Arc Blockchain faces some risks

A potential catalyst for the Circle stock is that it is planning to launch Arc, a layer-1 blockchain network for payments. 

Arc has already secured major partnerships with some of the biggest companies globally, including companies like Alchemy, BlackRock, BNY, and Axelar.

The main risk that Arc faces is that the layer-1 and layer-2 industries have become saturated. 

While more chains have come up, Ethereum has continued to gain market share. It has a market dominance of 76% in the decentralized finance industry, while Solana and BSC are far behind.

There are other reasons why the Circle stock has remained under pressure. First, analysts have remained neutral on the company, with the most recent notes from Goldman Sachs HC Wainwright, and Wolfe Research having a neutral outlook.

Second, competition in the stablecoin industry is still stiff, with Tether, Ripple USD, USD1, and PayPal USD seeking to gain market share  

Third, the stock dropped as cryptocurrencies retreated after the new developments on the CLARITY Act, which stalled in the Senate ahead of its markup.

Circle stock price technical analysis 

Technicals also explain why the CRCL stock price has crashed in the past few months. It has remained below all moving averages, and most recently, it formed a bearish flag pattern, which is made up of a vertical line and a rectangle channel.

The stock has also remained below the Supertrend indicator and the Parabolic SAR tool. Therefore, the most likely scenario is where the Circle stock experiences a big bearish breakdown, potentially to the all-time low of $63.

In the long term, however, there is a likelihood that the stock will bounce back as its growth and profitability rise.

The post Top reasons why Circle stock has crashed by 75% from ATH appeared first on Invezz

Robinhood stock price is stuck in a bear market after falling by nearly 30% from its highest level in 2025. Its drop accelerated on Thursday after the new developments on the CLARITY Act in the US Senate. It moved to a low of $110, its lowest level since October last year. This article explores whether it is a good buy today.

Why Robinhood stock has crashed 

There are a few reasons why the Robinhood stock price has crashed in the past few months. First, the decline is happening as investors book profits after the strong surge that happened last year when it became the best gainer in the S&P 500 Index. It is common for stocks to drop after experiencing a strong surge over time.

Second, in line with the first point, the stock dropped after the company entered the S&P 500 Index last year. In most cases, companies surge after entering a major index since this leads to forced buying by fund managers. The stock then loses momentum a few months later as the buying eases.

Third, HOOD stock retreated on Thursday after the Senate Banking Committee paused the progress on the closely-watched CLARITY Act in the United States. This pause happened after Coinbase, the biggest cryptocurrency exchange in the country withdrew its support, citing the limitations to stablecoin rewards.

Robinhood’s Vlad Tenev noted that his company still supported the legislation because it would allow it to offer staking solutions to its customers.

While Robinhood is known for stocks and options, its crypto business is still growing. It offers crypto services through its main product and Bitstamp, the company it acquired last year. 

Further, in line with this, the decline happened because of the crypto market crash that happened and accelerated in the fourth quarter. Bitcoin bottomed at $80,000 from its all-time high of $126,300 in October. Activity in the crypto industry often eases whenever Bitcoin and other altcoins are falling.

Robinhood stock fell because of valuation concerns. While its multiples have improved, the company remains highly valued, with its forward price-to-earnings ratio rising to 50, higher than the sector median of 13.

Robinhood has major catalysts

Still, despite its challenges, Robinhood has some major catalysts ahead. For one, it has become a major player in the tokenization industry. It launched hundreds of tokenized stocks in Europe and there is a likelihood that it will expand the service to other countries.

Robinhood’s business is expected to keep growing as new products start to mature. The average estimate is that its annual revenue in 2025 was $4.53 billion, up by 53% YoY, while its earnings-per-share rose to $2.03, up from $1.56. The company’s revenue is then expected to hit $5.52 billion this year.

Robinhood has also continued to gain its market share in the trading industry because of its popularity among young people. This explains why its user count has continued growing in the past few years despite the stiff competition in the industry.

Additionally, analysts are highly bullish on the stock, with the average estimate among analysts being at $149, much higher than the current $110.

HOOD stock price technical analysis 

Robinhood stock chart | Source: TradingView

The daily timeframe chart shows that the HOOD stock price has come under pressure in the past few months as it plunged from $153 to $110 today.

It has remained below the descending trendline that connects the highest swings since October 31st.

A closer look shows that it has formed an inverse head-and-shoulders pattern, a common bullish reversal sign in technical analysis.

Therefore, the stock will likely bounce back in the coming weeks as investors attempt to retest last year’s high of $153. This view will be confirmed if it moves above the descending trendline  

The post Robinhood stock is stuck in a bear market: will it rebound soon? appeared first on Invezz

Tesla stock (NASDAQ: TSLA) has fallen into the red on Friday as investors trim positions ahead of the automaker’s Q4 2025 earnings report scheduled for January 28 after market close.

The stock has drifted lower this week on profit-taking concerns, driven by a confluence of near-term questions about vehicle volumes, margins, and Tesla’s strategic shift to subscription-only pricing for Full Self-Driving software.

The timing reveals a pre-earnings dynamic: traders would rather lock in gains than risk headline volatility when results drop.​

The mechanics are straightforward. Tesla reported Q4 deliveries of 418,227 vehicles on January 2, a 16% year-over-year decline from 495,570 units in Q4 2024.

While the figure missed the analyst consensus of 422,850 vehicles, and marked the second consecutive annual decline for the company.

Production fell 5.5% year-over-year to 434,358 units.

For equity investors, these numbers introduce uncertainty just as the company prepares to detail its financial performance and outlook.

GLJ Research forecasts Q4 free cash flow at $365 million, below consensus expectations of $861 million.

Volume concerns and margin scrutiny drive positioning

The core tension entering earnings is this: delivery growth has stalled, yet investors have been banking on Tesla maintaining operating leverage through margin expansion and software-driven revenue.

That balance will either hold or break on January 28.

Consensus estimates peg Q4 revenue at approximately $25 billion with non-GAAP earnings per share around $0.44.

The market will closely watch the automotive gross margin, the profit percentage Tesla earns on vehicle sales before operating expenses.

With competitive pressure intensifying and pricing power eroding, margin preservation is far from assured.

If software and energy businesses can offset automotive weakness, the Tesla stock may stabilize. If not, expect selling pressure.​

Energy storage offers one bright spot. Tesla deployed 14.2 gigawatt-hours of battery storage in Q4 2025, a quarterly record. For the full year 2025, energy deployments reached 46.7 GWh.

The energy business is growing faster than vehicles and carries higher margins, but it remains a smaller revenue contributor.

The real profit driver remains automotive, where Tesla faces rising headwinds from Chinese competitors like BYD, which overtook Tesla in annual EV sales last year.​

Tesla stock: FSD strategy shift raises questions

The announced shift to subscription-only distribution for Full Self-Driving software, effective February 14, 2026, adds another layer of uncertainty.

Tesla previously allowed customers to purchase FSD as a one-time software upgrade.

The pivot to subscriptions transforms FSD revenue from lumpy, upfront recognition to recurring monthly fees. That’s strategically sound for recurring revenue metrics, but it raises questions about near-term revenue timing. ​

Investors are essentially positioning defensively until management clarifies how these operational and strategic shifts will flow through to profitability.

The profit-taking ahead of earnings reflects rational caution: why hold into headline risk when uncertainty is this high?

The next 12 days will determine whether the modest recent stock weakness proves temporary or the start of something more serious.

The post Tesla stocks slip in red: why investors are booking profits ahead of Q4 earnings appeared first on Invezz

Nvidia stock was modestly higher on Friday, extending gains from the previous session as strong earnings from key supplier Taiwan Semiconductor Manufacturing Co. reinforced confidence in sustained demand for advanced artificial intelligence chips.

Nvidia shares rose 0.4% to $187.25 in early trading, following a 2.1% advance on Thursday.

The recent move comes after several months of largely sideways trading, as investors balance signs of robust end demand against concerns over competition and geopolitical constraints.

TSMC results lift sentiment across chip sector

The latest boost for Nvidia came from a strong quarterly report by Taiwan Semiconductor Manufacturing, the world’s largest contract chipmaker and Nvidia’s primary manufacturing partner.

TSMC said net income rose 35% from a year earlier in the October–December period, marking its eighth consecutive quarter of year-on-year profit growth.

Revenue climbed 20.5% in the quarter, surpassing NT$1 trillion for the first time, highlighting the scale of global demand for advanced semiconductors tied to artificial intelligence, high-performance computing, and data-center expansion.

Looking ahead, TSMC said it expects to spend between $52 billion and $56 billion on capital expenditure this year.

The company added that around 10% to 20% of that spending would be allocated to advanced packaging technology, an area that has emerged as a critical bottleneck for delivering complete AI systems.

That investment is particularly relevant for customers such as Nvidia, whose most advanced accelerators rely on complex packaging to integrate multiple chips and memory components into a single system.

Nvidia stock struggles to break out

Despite the supportive industry backdrop, Nvidia’s stock has struggled to regain sustained upward momentum.

Shares have largely traded sideways for the past three months, reflecting investor concerns that the company could face rising competition in the AI accelerator market.

One key worry has been the potential loss of market share to Google’s internally developed Tensor Processing Units, which are designed to reduce reliance on third-party suppliers for certain AI workloads.

Investors are also watching the progress of next-generation chips from Advanced Micro Devices, which has been gaining traction with hyperscalers seeking to diversify suppliers.

Those competitive dynamics have weighed on Nvidia’s valuation in recent months, even as the company has continued to announce new products, partnerships, and strong order visibility.

Jefferies raises target on Nvidia stock

Some analysts remain firmly bullish. Jefferies raised its price target on Nvidia to $275 from $250 while maintaining a Buy rating.

The firm said that while it expects estimate revisions for Nvidia to be less dramatic than for Broadcom, it still anticipates “material beats and raises with estimates moving higher over the next several quarters.”

Jefferies continues to view Broadcom as its top pick in the sector, modelling calendar-year 2028 earnings per share above $19 and suggesting upside toward $25 per share based on what it described as conservative assumptions for OpenAI and Meta-related demand.

Even so, the firm’s higher target for Nvidia reflects confidence that the company will continue to benefit from expanding AI infrastructure spending.

China bottleneck remains a key overhang

Geopolitics and access to chips remain a major uncertainty for Nvidia. After a year of headlines highlighting China’s rapid progress in artificial intelligence, some leading Chinese AI researchers are striking a more cautious tone.

According to a report by The Wall Street Journal, several elite Chinese researchers have concluded that China’s chances of catching up to the US in the near term are limited due to a persistent bottleneck in advanced chips.

Tang Jie, founder of Chinese AI startup Zhipu, said at a conference in Beijing last weekend that the gap may be widening.

“The truth may be that the gap is actually widening,” Tang said. “While we’re doing well in certain areas, we must still acknowledge the challenges and the disparities we face.”

The report added that Chinese companies have begun discussing renting computing power at data centres in Southeast Asia and the Middle East to gain access to Nvidia’s upcoming Rubin chips.

That follows similar efforts last year to access Nvidia’s Blackwell-series chips through third countries.

Such arrangements are generally viewed as legal but are cumbersome, often leaving Chinese developers with fewer chips and higher costs compared with well-funded US competitors.

The post Nvidia stock remains stuck: here is why analysts say ‘buy’ anyway appeared first on Invezz

EU stocks are in focus on Jan. 16 after President Donald Trump signalled plans of slapping tariffs on nations resisting Washington’s push to acquire Greenland.

“We need Greenland for national security. So I may do that,” – he told reporters at the White House.

Trump’s latest remarks underscore his willingness to wield tariffs — a tool he’s frequently used in trade disputes — as leverage in an unusual geopolitical campaign.

While the administration didn’t elaborate any further, the President’s comment suggests countries opposing the US bid for Greenland could face economic consequences as 2026 unfolds.

Why is Trump so desperate to acquire Greenland

Investors should note that President Donald Trump’s fixation on Greenland is not at all new.

The world’s largest island, an autonomous territory of Denmark, sits strategically in the Arctic – a region viewed as a frontier for military positioning and resource extraction.  

Greenland’s location offers a vantage point to monitor North Atlantic shipping lanes and potential Russian activity in the Arctic Circle.

But the island’s untapped reserves of rare earth minerals and hydrocarbons are perhaps what’s most attractive for US economic interest.

Trump has repeatedly framed the acquisition as a matter of national defence, noting that Greenland could serve as a bulwark against rival powers.

His latest comments reinforce that urgency.

Which countries are most prone to new tariffs

Denmark – of course – has been the most vocal against Trump’s ambitions, describing the idea as “absurd”, insisting the Greenland territory is not for sale.

And other members of the European Union have quietly backed its stance, concerned about setting a precedent for territorial bargaining.

Across the Atlantic, Canada has also expressed unease, given its own Arctic sovereignty concerns.

If the Trump administration were indeed to proceed with announcing new tariffs in its push for the Greenland territory, then these countries would be the most at risk.  

By linking trade penalties to geopolitical resistance, Trump is effectively warning EU capitals that opposition to US ambitions could carry economic costs.

The rhetoric raises the possibility of a fresh transatlantic trade clash.

Stocks that may be most at risk from new tariffs

If Trump follows through, companies from Denmark and the broader EU could feel the sting.

Danish shipping giant Maersk, already sensitive to global trade tensions, would be vulnerable to new US tariffs – and pharma giant Novo Nordisk, which relies heavily on the US, could also face headwinds.

In Germany, automakers such as Volkswagen and BMW might be caught in the crossfire if the EU collectively resists Washington’s Greenland push.

In Canada, names like Suncor – an energy company with material exposure to the US markets – could be similarly impacted.

Investors will likely reassess holdings in these names, anticipating retaliatory measures or reduced access to US consumers.

The prospect of tariffs tied to geopolitics adds another layer of uncertainty to global markets.

The post Trump’s Greenland ambition: stocks that may face tariff shock in 2026 appeared first on Invezz

Europe’s political and economic fault lines deepened this week as France delayed its 2026 austerity budget amid parliamentary deadlock.

Germany’s VDA warned carmakers against resuming Suez Canal shipments until insurers clarify Red Sea coverage, despite Maersk’s planned January 26 return.

Skydance CEO David Ellison lobbied UK Culture Secretary Lisa Nandy for Warner Bros. bid support, while Ukraine’s KIIS poll revealed 54% opposition to Donetsk withdrawal despite US pressure.

Paramount CEO meets UK Culture Secretary

David Ellison, Paramount SkyDance’s CEO, met with UK Culture Secretary Lisa Nandy on Thursday amid his $108.4 billion hostile bid for Warner Bros. Discovery.

The timing was strategic; the meeting coincided with a Delaware court rejecting Paramount’s request to fast-track litigation against Warner Bros over Netflix disclosure details.

Ellison’s charm offensive across Europe aims to secure political backing for his all-cash $30-per-share offer against Netflix’s lower cash-and-stock proposal.

Paramount is simultaneously nominating directors to Warner Bros’ board to force negotiations.

This European lobbying blitz includes recent meetings with France’s President Macron, signaling an aggressive push for deal legitimacy as regulatory scrutiny intensifies on both sides of the Atlantic.

Ukrainians reject Donetsk withdrawal

Over half of Ukrainians categorically oppose withdrawing troops from Donetsk for security guarantees, a KIIS poll released Friday shows.

Fifty-four percent reject territorial concessions, while only 39% express reluctant acceptance, conditional on substantial security assurances.

The data reflects deep wariness stemming from the 1994 Budapest Memorandum, when Ukraine surrendered nuclear weapons for protection that Russia later violated.

Nearly 70% doubt ongoing peace negotiations will yield lasting settlements, with 57% fearing renewed Russian attacks despite ceasefire agreements.

Even more troubling: 40% distrust US support if Russia attacks again.

These numbers underscore Ukraine’s impossible position, under American pressure to negotiate while facing domestic skepticism toward concessions and allied guarantees.​

France delays budget amid deadlock

France’s government postponed budget talks from Friday to Tuesday as lawmakers remain deadlocked over the 2026 austerity plan.

Parliamentary relations minister Laurent Panifous declared passage “impossible by vote,” admitting negotiations have collapsed after three months.

The far-left and far-right deliberately sabotaged proceedings, Budget Minister Amelie de Montchalin accused them of “methodically voting amendments to make the budget unvotable.”

Prime Minister Lecornu will on Friday unveil emergency options: invoke constitutional Article 49.3 to force passage without voting, risking no-confidence motions that could topple his government, or issue a decree bypassing parliament entirely.

The Socialists, critical swing votes, threaten to back censure if excluded.

France’s political paralysis since Macron’s 2024 snap election has now claimed three prime ministers in 12 months, and the eurozone’s second-largest economy faces a fiscal crisis without a swift resolution.

Germany’s VDA still dicey about Suez Canal

Germany’s automotive industry association VDA says unresolved insurance questions persist before carmakers resume shipping through the Suez Canal, two years after Houthi attacks forced global diversion around Africa.

Crew safety remains paramount, VDA stressed Friday, after conducting preliminary route surveys with select shipping partners.

While faster transits and lower costs beckon, potentially cutting transit time by a week compared to Cape of Good Hope detours, insurers haven’t yet clarified coverage terms for renewed Red Sea passages.

Maersk’s January 26 return marks the first major carrier commitment; CMA CGM has already tested routes.

However, most competitors, including Hapag-Lloyd and Allsee Willmsen, remain cautious, delaying full resumption pending clarity on liability and crew protections.

The gradual, phased approach reflects underlying anxiety: one security incident could reignite global chaos and spike freight rates already recovering from two-year supply chain disruption.

The post Europe bulletin: France budget deadlock, Red sea shipping risk, Ellison’s UK lobbying appeared first on Invezz

AST SpaceMobile (NASDAQ: ASTS) pushed meaningfully higher to print a record high of nearly $120 this morning after being picked as a prime contractor for the SHIELD program.

“SHIELD” is part of a broader $151 billion defense framework aimed at protecting against missile, space, and cyber threats – and ASTS is now positioned to bid directly on its future task orders.

The contract serves as a massive seal of approval from the US government for its dual-use satellite technology. Yet, there are reasons to consider “selling” AST SpaceMobile stock on January 16th.

AST SpaceMobile stock is priced for perfection

With a market cap that now sits well above $40 billion, ASTS is no longer a speculative penny stock – it’s priced as if global success is a certainty.

The Nasdaq-listed firm lost 45 cents per share in its latest reported quarter, and is now trading at a price-to-sales (P/S) multiple of nearly 1,300x, according to Barchart.

And that’s when it’s in the intermittent service phase only. While the first second-gen BlueBird – Block 2 – satellites are launching, AST SpaceMobile still has just a handful of satellites in orbit.  

Therefore, if there’s even a minor hiccup in the rollout of its next 20 satellites, ASTS stock lacks a fundamental valuation floor, making a 20% mean-reversion correction highly likely.

ASTS shareholders run the risk of massive dilution

To reach the goal of “45-60 satellites” needed for continuous US coverage by the end of this year, AST SpaceMobile requires massive amounts of capital.

To that end, the company resorted to a $1 billion capital raise in late 2025, comprising predominantly convertible senior notes priced at about $96.30 a share.

Since AST SpaceMobile shares are hovering around $115 currently, those note-holders are already “in the money”.

If they choose to convert their debt into equity, it’ll create a massive influx of new shares, diluting the company’s existing investors and creating significant institutional sell pressure on the stock.

ASTS shares may lose the market share war

While AST SpaceMobile has the superior broadband technology (higher speeds, better spectrum), SpaceX/Starlink has the superior logistics machine.

As of writing, Starlink has already launched hundreds of direct-to-cell-enabled satellites. Even if their service is limited to SMS and basic data, they’re already live with T-Mobile.

Plus, Starlink and other competitors are actively lobbying the FCC to limit ASTS’s massive phased array antennas’ power levels, citing potential interference.

This means ASTS shares could win the tech war but lose the market share war if Starlink saturates the global MNO market with a “good enough” service before ASTS achieves continuous coverage.

That’s why Wall Street currently rates AST SpaceMobile at “hold” only – with the mean target of about $80 indicating potential “downside” of more than 30% from here.

The post Top 3 reasons to sell AST SpaceMobile stock as it soars on new SHIELD contract appeared first on Invezz