Breakfast News: NVDA's China Green Light
December 9, 2025
| Monday's Markets |
|---|
| S&P 500 6,847 (-0.35%) |
| Nasdaq 23,546 (-0.14%) |
| Dow 47,739 (-0.45%) |
| Bitcoin $90,829 (-0.51%) |
1. China AI Chip Sales Reopen for Nvidia
Nvidia (NVDA +1.50%) received the green light from President Trump to ship its H200 AI chips to approved customers in China, with a 25% surcharge payable to the U.S. government, allowing it to reopen a key market for business. The stock rose over 1.5% ahead of the market opening.
- "Offering H200 to approved commercial customers...strikes a thoughtful balance that is great for America": Nvidia embraced the decision, with the Chinese market worth $50 billion according to CEO Jensen Huang, allowing it to provide the most powerful chip that China can currently access.
- A "colossal economic and national security failure": Democratic senator Elizabeth Warren was critical of the decision in providing China with the tools needed to develop AI, with the same deal applying to both Advanced Micro Devices (AMD +1.44%) and Intel (INTC 2.86%). Both stocks are trading around 1% higher in pre-market trading.
2. Alphabet Eyes Gemini Ads & EU Battles
In calls with advertising clients, Alphabet (GOOG 2.55%) is reportedly planning to bring ads to AI-chatbot Gemini within the next year, at the same time as it gets hit with a fresh EU antitrust investigation.
- Beating the S&P 500 by 102% since June 2022 Rule Breakers recommendation: Alphabet is under pressure from the European Commission regarding whether it breached competition rules by using web publishers' content for AI purposes without giving appropriate compensation.
- "Gemini now has over 650 million monthly active users versus just over 450 million a quarter ago": Last month, Fool analyst Jason Moser noted how "continued investments in the AI opportunity seem to have investors excited about Alphabet's future and we agree."
3. Ford & Renault Ally to Fight China EVs
Ford (F +0.84%) and Renault announced a partnership to launch a jointly developed EV in 2028, alongside expanding an existing collaboration in light commercial vehicles, as it aims to fight off rising Chinese competition in the European market.
- "We're in the fight for our lives and our industry": Ford CEO Jim Farley described the potential powerhouse the new partnership could form, seeing it as a big differentiator versus the Chinese offering.
- $2 billion already invested in German plant to enhance EV production: Despite the deeper integration, Farley said the move was purely to help remain competitive against low-cost Chinese alternatives, rejecting the notion a merger could be on the cards.
4. What to Watch on Tuesday
Braze (BRZE 0.71%) is set to release earnings after the market closes, aiming to keep the two-year streak of beating revenue estimates going in a follow-up from last quarter's strong results. Braze is lagging the market by 107% since it was first brought to the RB scorecard in July 2022.
- Gasoline prices at the lowest level in four years: Longtime Stock Advisor rec Casey's General Stores (CASY 0.22%) also reports following the closing bell, with investors keen to note the impact on performance from lower gas prices.
- Last major labor market data before the Federal Reserve press conference: The JOLTS report (Job Openings and Labor Turnover Survey) for September and October are due at 10:00am ET, with both months' consensus figure at 7.2 million. This labor market data will be closely watched by Federal Reserve members.
5. Your Take
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