From Nvidia AI Domination to Trade War Tensions – The Week in the Markets

Money Masters' Market Pulse Week 09

February 28, 2025

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Dear Money Master,

This week, Trump’s tariffs on Mexico, Canada, and China shake global markets, while Nvidia smashes earnings records with $39.33B in revenue. Meta and Amazon double down on AI, and Dell’s AI server sales soar despite a revenue miss.

In earnings, Warner Bros. Discovery adds 6.4M Max subscribers, AMC sees a box office boom, and AppLovin faces short-seller scrutiny.

In today’s Deep Dive, we unpack Nvidia’s record earnings and the future of AI chips. Let’s dive in! 🚀🌍

📰 Your Daily Financial Digest - February 28th, 2025

🌍 Economics:

  1. Trump’s Tariffs on Mexico, Canada, and China to Start March 4 📈
    The U.S. says 25% tariffs on imports from Mexico and Canada will go into effect March 4, while China faces an additional 10% tariff, bringing total tariffs on Chinese goods to 20%. Read More

  2. Seven & i Shares Plunge After Buyout Falls Apart 📉
    The Japanese retailer’s stock dropped as the founding family failed to secure financing for a management buyout, erasing over $5 billion in market value. Read More

  3. Nvidia Warns of Growing Competition from Huawei Despite Sanctions 🚀
    Nvidia flagged Huawei as a key rival in AI chips, cloud services, and networking, highlighting China’s competitive landscape even with U.S. trade restrictions. Read More

  4. Jobless Claims Surge More Than Expected 📉

    Initial unemployment claims rose to 242,000 last week, exceeding forecasts and signaling potential labor market softening. This marks the highest level since August 2023. Read More

  5. PCE Inflation Rises 0.3% in January, in Line with Expectations 📊

    The Fed’s preferred inflation gauge increased 2.4% year-over-year, reinforcing expectations of a cautious approach to rate cuts. Core PCE, excluding food and energy, matched forecasts at 2.8%. Read More

💻 Technology:

  1. Amazon Unveils Alexa+ with AI Features and Subscription Model 🗣️
    Alexa’s AI-powered upgrade will cost $19.99/month (free for Prime members), offering advanced personalization, shopping assistance, and smart home integration. Read More

  2. Meta to Launch Standalone AI App to Rival ChatGPT 🤖
    Meta AI will become a separate app in Q2, with plans for a paid version as Zuckerberg aims to make it the most-used chatbot globally. Read More

  3. AppLovin Shares Drop as Short Sellers Target AI Ad Software 📉
    Short reports allege AppLovin’s AXON ad platform relies on fraudulent tactics, sparking concerns about its massive 700% stock surge in 2024. Read More

  4. Autodesk to Cut 1,350 Jobs Amid Restructuring 🏗️

    The software company announced workforce reductions, affecting 7% of employees, as part of a broader cost-cutting and efficiency strategy. Shares rose slightly following the news. Read More

💹Earnings:

  1. Warner Bros. Discovery Gains 6.4 Million Streaming Subscribers in Q4 📺
    Max now has 116.9 million subscribers, with streaming revenue rising 5% to $2.65 billion. WBD forecasts EBITDA to double in 2025 and aims for 150M subscribers by 2026. Read More

  2. Dell Misses Revenue Estimates but Reports Strong AI Server Sales 💻
    Q4 revenue hit $23.9 billion, below forecasts, but EPS of $2.68 beat expectations. AI-optimized server sales hit $10B in 2024, expected to grow to $15B in 2025. Read More

  3. AMC Revenue Beats Expectations as Blockbusters Drive Theater Boom 🎬
    Hit films like Moana 2 and Wicked fueled a 20% rise in attendance, pushing revenue up 18% to $1.31 billion. AMC generated its highest post-pandemic free cash flow. Read More

🔍 Deep Dive: Nvidia’s Record Earnings & the Future of AI Chips🤖💰

Nvidia once again crushed Wall Street expectations, proving that the AI chip boom is far from over. The company posted record fourth-quarter revenue of $39.33 billion, surpassing estimates, and forecasted $43 billion for the next quarter, signaling continued growth.

The AI Boom Continues 🚀

Nvidia’s data center segment, which now makes up 91% of total sales, generated a staggering $35.6 billion in Q4 revenue, up 93% year-over-year. The company’s newest AI chip, Blackwell, has already seen a rapid rollout, with demand led by major cloud providers like Amazon and Microsoft. CEO Jensen Huang called it "the fastest product ramp in our company’s history."

Beyond AI: The Rise of Automotive & Robotics 🚗🤖

While Nvidia’s AI chips dominate, its automotive and robotics division is also gaining traction. Revenue doubled year-over-year to $570 million, with demand surging for self-driving technology and AI-powered robotics. Nvidia expects autonomous vehicle AI to become a billion-dollar business soon, with companies like Tesla and BYD using its chips.

Challenges & What’s Next 🔮

Despite soaring revenue, Nvidia faces slowing growth rates and rising competition from custom AI chips developed by Google and Amazon. However, the company remains bullish, arguing that future AI models will require up to 100x more computing power, driving long-term demand for its GPUs.

With $33.7 billion spent on share buybacks, Nvidia is showing confidence in its future. The AI boom may be cooling, but Nvidia remains at the forefront, shaping the future of artificial intelligence and computing.

To your financial empowerment, The Money Masters Team

P.S. Stay connected! Don't forget to follow us on social media! 📱🌐

Disclaimer: This information is for educational purposes only and should not be construed as financial advice. Always conduct your own research or consult with a financial advisor before making investment decisions.

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