Investopedia Markets News (all except PF)

Kevin Carter / Getty Images

Google-parent Alphabet was the best-performing Magnificent Seven stock in 2025.

Key Takeaways

• Alphabet overtook Apple as America's second most-valuable company on Wednesday, and shares continued to rise Thursday, putting the Google-parent's market capitalization just shy of $4 trillion.
• Alphabet stock soared 65% in 2025 as it won over skeptics with its Gemini 3 AI model, showed the value of its custom AI chips, and strengthened its core advertising business.

Google-parent Alphabet's stock is showing no signs of slowing down after a strong finish to 2025.

Alphabet (GOOG)(GOOGL) stock was up about 1% in afternoon trading Thursday, bringing it within a hair of becoming just the fourth company to ever boast a $4 trillion market capitalization. Nvidia (NVDA), Apple (AAPL) and Microsoft (MSFT) are the only other companies to have ever passed that milestone, though the later two have fallen below that threshold.

Alphabet on Wednesday became America's second most-valuable company when its market cap surpassed Apple's for the first time since 2019.

Why This Matters

Alphabet stock soared in 2025, driven by growing optimism about the strength of its AI offerings and core search and advertising business. As the second most-valuable company in the world as of Thursday afternoon, its stock is likely to have an outsized impact on the broader market in 2026.

What's Spurred the Investor Optimism?

Alphabet shares are off to a strong start to the new year after rising 65% in 2025, the best performance of any Magnificent Seven stock. Investors and tech executives were impressed by the company’s newest AI model, Gemini 3, when it launched in November. Salesforce CEO Marc Benioff said he was “never going back” to using ChatGPT, the chatbot that sparked the AI craze in late 2022. The buzz around Gemini 3 reportedly prompted OpenAI, the Microsoft-backed start-up behind ChatGPT, to declare a “code red” to improve ChatGPT. 

What investors liked as much, if not more, than the model’s performance: That is was trained on custom chips designed in-house. The warm reception of Gemini 3 has helped Alphabet pitch its custom tensor processing units, made in collaboration with Broadcom (AVGO), as an alternative to Nvidia’s graphics processing units, which dominate the AI chip market. 

Alphabet stock also benefited last year from strength in its core advertising business, which accounts for nearly three-quarters of the company’s revenue. In 2024, a federal judge ruled Google operated an illegal search monopoly, and investors entered 2025 nervous the company might be forced to sell its Chrome web browser or Android mobile operating system. Ultimately, the court’s remedies were far less disruptive to Google’s business than many had feared, removing an unknown that hung over the stock throughout the first half of the year. 

At the same time, Google showed Wall Street that AI was not the search engine killer that many predicted. Google launched AI search features that, rather than eroding traffic and revenue, increased engagement and accelerated revenue growth, according to executives. 

What's Ahead for Alphabet?

This year is likely to bring new challenges for Alphabet as it seeks to defend its pole position in the AI race. Agentic AI—or semi-autonomous AIs that perform tasks on behalf of users—is expected to be one of the hottest topics on Wall Street this year, and investors will likely be looking for Alphabet to launch AIs that are capable of performing tasks like booking flights or making reservations.

Autonomous vehicles are also a focus for investors this year, with market leaders Tesla (TSLA) and Alphabet-owned Waymo expected to significantly expand their operations. Alphabet is also expected to begin offering the public rides in its new "Ojai" robotaxi at some point this year.

Analysts expect another positive year for Alphabet stock, though upside could be limited after its run-up in 2025. Twelve of 15 Wall Street Alphabet analysts with current assessments tracked by Visible Alpha rate the stock a "Buy," and the remainder are neutral. The average price target of about $332 is only about 2% above the stock's intraday price on Thursday.

Spencer Platt / Getty Images

Economy watchers are still waiting on data that could show how people and businesses are spending and working.

Key Takeaways

• The federal government shutdown froze economic data releases, and agencies are still working to catch up. 
• While a handful of reports have been rescheduled, some have also been consolidated or canceled.

The government shutdown ended in November, but statistical agencies are working to catch up on economic releases they missed.

After being closed for 43 days, the federal bureaus that track inflation, employment, and economic growth are behind schedule on several reports, but they are beginning to catch up.

Why This Matters

Delayed economic reports can blur the outlook for inflation, jobs, and growth, complicating decisions for investors, businesses, and policymakers. Understanding the new schedule helps readers interpret upcoming market-moving data.

Here are some of the new release dates and schedule changes announced so far:

• Jan. 8: October U.S. trade deficit (Originally scheduled for a December release)
• Jan. 9: September, October housing starts (September report originally scheduled for Oct. 17 release)
• Jan. 13: New home sales (October, September) ( September report originally scheduled for Oct. 24 release)
• Jan. 14: October business inventories (Originally scheduled for a December release)
• Jan 14: November retail sales (Originally scheduled for December release)
• Jan. 14: November Producer Price Index (PPI), with a subset of the October report (Originally scheduled for Dec. 11 release; a separate October report won't be released)
• Jan. 15: November U.S. import and export price indexes, with a subset of the October report (Originally scheduled for Dec. 16 release; a separate October report won't be released)
• Jan. 22: Q3 Gross Domestic Product, final update (Originally scheduled for Dec. 19 release)
• Jan. 26: November durable-goods orders (Originally scheduled for December release)
• Jan. 30: December PPI (Originally scheduled for Jan. 14 release)
• Feb. 10: Q4 Employment cost index (Originally scheduled for Jan. 30 release)
• Feb. 10: December U.S. import and export price indexes (Originally scheduled for Jan. 30 release)

Here are some reports that still need to be rescheduled or have been cancelled:

• September, October and November advanced reports on trade deficit, wholesale inventories and retail inventories have been canceled
• October PCE price index, personal incomes and outlays (Originally scheduled for Nov. 26; the November report is also not yet rescheduled)
• November housing starts (Originally scheduled for December release)
• Q4 GDP, advance estimate (Originally scheduled for a Jan. 29 release)

Kevin Carter / Getty Images

December sales data lifted shares of Costco Wholesale Thursday.

Key Takeaways

• Costco's stock was rising Thursday, lifted as investors cheered the warehouse chain's December sales and comps.
• That had the shares around levels last seen in about a month. Wall Street is bullish, though its average price target remains below record highs seen early last year.
  

Shares of Costco Wholesale have been getting cheaper for nearly a year, dropping from early 2025 highs. They got a little less cheap today.

The warehouse retailer's shares were up some 5% Thursday afternoon to levels last seen in about a month. The driver: a measure of optimism about the direction of Costco's (COST) business following the company's announcement of December sales that rose 8.5% year-over year and same-store sales that were 7% higher.

Bakery, meat and candy sales powered the food category last month, the company said on a conference call, a transcript of which was made available by AlphaSense, while jewelry, tires and small appliances also performed well.

Why This Matters to Investors

Shoppers generally like Costco for its value, and for years its shares were powerful gainers. Some investors hold out hope for stock splits and special dividends as part of the bull case for the stock, but today optimism about the health of its business was pushing the shares higher.

"We believe this could provide the stock with a much-needed boost after dropping some 10% over the past six months or so on concerns around its elevated valuation and a rotational shift out of the sector," William Blair's bullish analysts wrote late Wednesday after the numbers were announced.

Sell-side analysts are generally upbeat about Costco's stock. Most of them have bullish ratings on the shares, according to Visible Alpha's survey, and the mean price target, at around $1,035, represents about a 17% premium to Wednesday's close. That number, however, suggests some caution, as it falls short of the shares' record highs near $1,080.

Investor and analyst chatter has in recent months offered other possible reasons for optimism regarding a move higher in Costco's stock, among them the possibility of a stock split—which hasn't happened in decades—or a special dividend, the last of which came in early 2024.

Today's stock move was more about business performance. Some investors likely expected slower same-store sales growth, UBS analysts wrote, noting that it had observed expectations ranging from between 3% and 5%.

"That proved not to be the case," they wrote, as the company slightly exceeded even the high-end market bar. It's proving that it's still got plenty of drivers up its sleeve."

With today's rally, Costco shares are now back to breakeven for the past 12 months.

Smith Collection / Gado / Getty Images

Things didn't meaningfully improve in the U.S. manufacturing sector in 2025.

Key Takeaways

• The service sector expanded in December, while the manufacturing sector struggled.
  
• Manufacturers have been hit hard by tariffs, which have raised costs and created uncertainty.
  
• Tariffs put in place last year were meant to boost manufacturing but, have instead led to consistent job losses so far.
  

It's tough out there for anyone in the business of making things, but the rest of the economy is hanging in there.

The services sector of the economy expanded at its fastest pace all year in December, while manufacturing continued to struggle, according to a pair of reports this week from the Institute for Supply Management. The service sector logged its 10th month of growth over the last 12 months, the ISM said Wednesday. The manufacturing sector on the other hand slowed down for a 10th straight month, according to a Monday report.

The pair of releases, based on surveys of supply managers, highlighted how much manufacturers have struggled this year compared to other parts of the economy under the regime of tariffs that were actually meant to help them. President Donald Trump imposed far-reaching import taxes last year in an effort to shield U.S. manufacturing from competition and introduce a "golden age" for industry.

What This Means For The Economy

The continued expansion of the service sector bodes well for the health of the economy despite struggles in manufacturing, because the services sector is by far the economy's largest.

Instead, manufacturers have grappled with increased costs, reduced demand, and uncertainty about rapidly changing trade policy.

"It has not been a great year," one manager in the chemical business told ISM. "We have had some success holding the line on costs; however, real consumer spending is down and tariffs are ultimately to blame. I hope for some return to free trade, which is what consumers have ‘voted for’ with their spending.”

Economists divide the economy into resource extraction (including farming and mining); government; manufacturing, or companies that make stuff; and services, which includes housing, healthcare, education, and most everything else. The service sector is by far the largest, making up 73% of the economy as measured by Gross Domestic Product, compared with manufacturing's 9% share.

And while the manufacturing outlook deteriorates, the services sector is chugging along according to the ISM. Employment in services expanded in December for the first time since May, the ISM said. That's a distinct contrast with manufacturing, which has lost an average of 9,600 jobs every month since April according to the Bureau of Labor Statistics. Manufacturing employment has been declining since 2023, the data shows.

"Despite continued weakness in its counterpart survey on manufacturing, the service sector has proven resilient," Brian Wesbury, chief economist at First Trust, wrote in a commentary.

Despite the overall positive outlook, tariffs have also affected the service sector.

"We continue to experience higher prices, primarily due to the impact of the administration’s trade and tariff policies," a manager in the Food Services Industry told ISM. "We are disproportionately impacted by importing seafood from Southeast Asia and coffee from South America.”

Still, taken together with other recent data, the expansion in services suggests the overall economy is still growing.

"In total, the economy may not have ended 2025 on a bang, but it appears to have been growing at a solid pace," John Ryding, chief economic advisor at Brean Captial, wrote in a commentary.

 

Jim Watson / AFP / Getty Images

President Donald Trump said the military budget should be raised about 50% next year.

Key Takeaways

• Defense sector stocks surged Thursday morning to lead S&P gainers after President Donald Trump called for a sharp increase in military spending.
• Trump said the U.S. military's budget should increase to $1.5 trillion in 2027, up from $850 billion in fiscal 2025 and nearly $1 trillion in 2026.

Shares of several defense contractors took flight on Thursday after President Donald Trump said that the federal budget for the military should increase significantly.

"For the Good of our Country, especially in these very troubled and dangerous times, our Military Budget for the year 2027 should not be $1 Trillion Dollars, but rather $1.5 Trillion Dollars," Trump said in a post on his Truth Social platform.

Shares of Lockheed Martin (LMT), Huntington Ingalls (HII) and L3 Harris (LHX) were each up more than 7% recently, pacing gainers in the S&P 500 index. Shares of General Dynamics (GD) and Northrop Grumman (NOC) added more than 4%, while RTX Corp. (RTX), parent company of defense contractor Raytheon, tacked on 2%.

The Department of Defense had a budget of $850 billion in fiscal 2025, an increase of $34 billion from the prior year. In its budget proposal to Congress last year, the White House said the Defense budget should be increased by more than $113 billion in fiscal 2026, which runs through September. Trump's $1.5 trillion proposed budget would be a roughly 50% increase.

The gains for defense stocks Thursday reverse losses they suffered on Wednesday, after Trump said the companies shouldn't spend money on stock buybacks and dividends but instead focus resources on improving and speeding up their manufacturing processes.

The Trump administration has recently picked up military activity with last weekend's strike that led to the capture of Venezuelan President Nicolás Maduro. Trump has hinted at other possible military actions, and the White House has renewed comments about a desire to control Greenland for strategic purposes, saying that it could utilize the military.

News of the day for Jan. 8, 2026

Timothy A. Clary / AFP / Getty Images

The Dow and the S&P 500 finished lower on Wednesday after hitting all-time highs early in the session.

Stock futures are pointing to a lower open as the rally that started 2026 has lost its momentum; defense sector stocks are surging after President Donald Trump said that the 2027 budget should include a substantial hike in defense spending; Google parent Alphabet has a larger market capitalization than Apple for the first time since 2019; JPMorgan Chase has reached a deal to take over the Apple Card program from Goldman Sachs; and Applied Digital's shares are jumping after the data center provider reported a 250% increase in quarterly revenue. Here's what you need to know today.

Stocks Pointing Lower as Year-Opening Rally Stalls

Stock futures are slightly lower after two of the three major indexes declined on Wednesday. Futures tied to the S&P 500 and the tech-heavy Nasdaq were recently down 0.2%, while Dow Jones Industrial Average futures fell 0.4%. The Dow and S&P 500 hit all-time highs early in yesterday's session but ended the day lower. Bitcoin was at $89,700 this morning, down from an overnight high of $91,500 and an early-week high near $95,000. Gold futures are losing ground for the second straight day—falling 0.8% to $4,430 an ounce—after surging early in the week as investors turned to the safe haven amid geopolitical uncertainty created by the U.S. ouster of Venezuela's president. Crude oil futures were up 1.5% at $56.85 per barrel, after losing ground the last two days, as investors continue to assess the potential impact of developments in oil-rich Venezuela. The yield on the 10-year Treasury note ticked up to 4.16%.

Defense Stocks Surge as Trump Says Military Budget Should Increase

Shares of several defense contractors—including Northrop Grumman (NOC), Lockheed Martin (LMT), General Dynamics (GD) and RTX Corp. (RTX)—are sharply higher after President Trump said that defense spending should increase. "For the Good of our Country, especially in these very troubled and dangerous times, our Military Budget for the year 2027 should not be $1 Trillion Dollars, but rather $1.5 Trillion Dollars," Trump said in a social media post late Wednesday afternoon. In fiscal 2025, the Department of Defense had a budget of $850 billion, and in May 2025 the White House included in its budget request to Congress for fiscal 2026 a proposal to increase defense spending by more than $113 billion. Defense stocks had lost ground on Wednesday when Trump said that defense contractors should not be able to buy back their own stock or pay out dividends. Shares of Northrop Grumman and Lockheed Martin were each up about 8% in recent premarket trading, while General Dynamics and RTX added 6% and 4%, respectively.

Alphabet Leapfrogs Apple in Market Cap For First Time Since 2019

Alphabet (GOOGL) continues its move up the ranks of the world's most valuable companies. On Wednesday, the Google parent's market capitalization hit $3.89 trillion, inching ahead of Apple (AAPL) for second place on the list. It's the first time since 2019 that Alphabet's market value is higher than Apple's, according to CNBC. Both companies remain well below Nvidia's (NVDA) $4.6 trillion market cap, while Microsoft (MSFT) is currently the fourth most valuable company at $3.59 trillion. Alphabet and Apple have taken different paths in the current AI race, with Google consistently releasing new models and products around its Gemini chatbot and other image and video generation services. Apple has moved at a slower pace, partnering with OpenAI to bring ChatGPT to Siri and launching iPhone lines without many of the AI features it has advertised in recent keynotes. Alphabet shares have gained 66% over the past 12 months, while Apple has risen 7% during the period. Alphabet shares are up another 1.5% premarket, while Apple is down 1%.

JPMorgan Chase Set to Take Over Apple Card Program From Goldman Sachs

JPMorgan Chase (JPM) will take over as the backer of Apple's credit card program, replacing Goldman Sachs (GS) after more than a year of reported negotiations to do so. The companies announced the deal late Wednesday, confirming a Wall Street Journal report that an agreement had been reached. Goldman is reportedly offloading the roughly $20 billion in card balances at a $1 billion or more discount, the Journal reported, reflecting the program's exposure to subprime borrowers and delinquency rates. Apple said that the card's benefits of 3% cash back and other perks will stay the same, and that Mastercard (MA) will remain the payment processor, after reports last year suggested that Visa (V) was bidding to replace Mastercard. The companies said the transition is expected to be completed in about two years. Executives from both companies could offer more information on the deal when they report their next quarterly earnings, on Jan. 13 for JPMorgan and Jan. 29 for Apple.

Applied Digital Shares Jump as Revenue Blows Pasts Expectations

Shares of Applied Digital (APLD) are rising after the data center provider topped estimates in its latest quarterly results. In the fiscal second quarter, Applied Digital's revenue soared 250% to $126.6 million, while the company roughly broke even with an adjusted profit of $0.1 million. Analysts had expected about $110.3 million in revenue, and a small adjusted loss, according to Visible Alpha. The company said it has now signed two data center leases with AI hyperscalers to lease facilities in North Dakota, and that they are in talks with a third. Shares were up more than 6% in premarket trading Thursday, and have more than tripled in value in the last 12 months.

Michael Nagle / Getty Images

Chevron is the only U.S. oil major currently operating in Venezuela.

Key Takeaways

• Chevron produces about 25% of the country's oil. It's the most direct play on Venezuela's economic opening.
• Oil services firms such as Halliburton and SLB could win billions in reconstruction contracts, but any gains are likely years away.
• Gulf Coast refiners such as Valero were purpose-built for Venezuelan heavy crude and could see better margins if that oil flows again.

The U.S. is planning big changes for Venezuela's oil industry after ousting the country's president. Shares of a handful of U.S. companies stand to benefit from the upheaval.

Energy Secretary Chris Wright on Wednesday said that the U.S. will control Venezuelan oil sales "indefinitely," funneling proceeds to American banks and rolling back sanctions that have choked the country's crude exports for years. Refiners Valero Energy Corp. (VLO) and Phillips 66 (PSX) rose on the news.

Chevron (CVX) is the only U.S. oil major still operating in Venezuela. That head start could be worth billions if the Trump administration follows through on its promise to rebuild the country's energy sector.

Venezuela has more proven reserves than any other country, but years of economic turmoil, corruption and sanctions have dramatically curtailed its ability to produce and export oil.

So which stocks are positioned to gain from a revitalization of Venezuela's oil industry?

Stocks Positioned For Gains

Normally, U.S. investors can access foreign markets through brokers who can trade stocks on foreign stock exchanges or American depositary receipts (ADRs) that let them trade foreign stocks on U.S. exchanges. There are also exchange-traded funds covering many countries and regions.

Venezuela offers none of these. No ADRs trade on American exchanges, and no Venezuela ETF exists, though Teucrium Investment Advisors filed for one on Jan. 5. That leaves indirect plays: U.S.-listed companies with exposure to Venezuela's potential recovery.

Those companies fall into four categories: producers already there; other major oil companies, some with outstanding debts from before they exited Venezuela; the services firms that would win reconstruction contracts; and the Gulf Coast refiners built to process the heavy crude Venezuela produces.

The One Oil Major Left in Venezuela

Chevron (CVX): It's the only American major still in Venezuela. It operates joint ventures with PDVSA, the state oil company, that account for about a quarter of the country's output and exports about 140,000 barrels per day. Morningstar analyst Allen Good has said it's the best-positioned among the oil majors to benefit.

Oil Majors That Could Return to the Country

ConocoPhillips (COP) and Exxon Mobil (XOM): They left Venezuela after the 2007 nationalizations but have up to $12 billion and $1.4 billion, respectively, in outstanding claims for property the government expropriated.

JPMorgan analysts say the companies could return to recover seized assets, should the Venezuelan government allow it.

Companies That Build Oil Infrastructure

Halliburton (HAL) and SLB (SLB): Many of Venezuela's pipelines are more than 50 years old, its refineries run at 20% capacity or less, and estimates suggest it would cost at least $100 billion over a decade or more to return production to 1990s levels. That's years of contracts for service firms, should any money for them materialize.

Refiners That Can Handle Venezuela's Heavy Crude

Valero (VLO): Michael Burry, of "Big Short" fame, revealed this week that he's owned Valero since 2020. He argues that Gulf Coast refineries are "purpose-built for Venezuelan heavy crude" and would eventually "produce better margins across jet fuel, asphalt, and diesel." Valero operates 15 refineries that can process 3.2 million barrels per day of the heavy, sour crude Venezuela produces.

Phillips 66 (PSX): Another Gulf Coast refiner that can handle Venezuela's heavy crude. CEO Mark Lashier said after Maduro's capture that the company's Lake Charles refinery in Louisiana and Sweeny refinery in Texas can process "a couple of hundred thousand barrels per day" of Venezuelan grades. "We've got refineries designed for the long term to process that crude," Lashier said. However, he cautioned it would take "years, if not decades" of upstream investment to realize Venezuela's full potential.

Marathon Petroleum (MPC): The company's Garyville refinery in Louisiana is the largest heavy crude processor in the region. Analysts estimate it could capture 20% to 30% of any increased Venezuelan flows to the Gulf Coast.

The Catch

The economics remains challenging. Oil prices are hovering in a range of $57–$60 a barrel, low enough that investing major capital in a dicey political situation could be hard to justify. Rystad Energy estimates it would cost $53 billion to maintain Venezuela's production of just under 1 million barrels per day over the next 15 years. Returning to the 3-million-barrel peak of the 1990s would cost $183 billion and at least a decade of work.

Rystad's chief economist, Claudio Galimberti, told NPR that new projects in Venezuela need oil selling at about $80 per barrel to turn a profit. At $60 oil, "they won't do it, because it makes no sense."

There's also the opportunity cost. Bloomberg estimates that Guyana projects break even near $35 a barrel, and Permian Basin wells cost between $37 and $48. Why spend billions in Venezuela when safer, cheaper barrels exist elsewhere?

Brendan Smialowski / AFP via Getty Images

President Trump's latest corporate target: buybacks and dividends, as executed by defense contractors.

Key Takeaways

• President Trump's latest critique of how many public companies use their cash aligns with progressive positions.
• His hands-on approach to public company deals has raised eyebrows.

The age-old practices of buying back shares and issuing dividends have a new—and perhaps unlikely—foe.

President Donald Trump on Wednesday took aim at defense companies with stock buyback- and dividend-programs, saying they "will no longer be allowed or tolerated." In doing so, he revived a topic that has in recent years been a source of debate between those who see share repurchases as a straightforward method of supporting a company's stock and critics who believe that that cash could be put to better use.

For Trump, meanwhile, it's the latest addition to the list of public-company matters—he also on Wednesday tackled executive compensation—over which the White House would like greater control. (He separately today also suggested a ban on large investor purchases of homes.)

WHY THIS MATTERS TO YOU

The Trump administration's direct involvement in the affairs of chipmakers and minerals companies have moved their respective stocks. Shares in defense shops were in the spotlight on Wednesday.

Trump's hands-on approach has led to the government taking a cut of Nvidia (NVDA) and Advanced Micro Devices (AMD) "chip sales," a so-called golden share of U.S. Steel's sale to Nippon Steel, a 10% stake in Intel (INTC) that followed demands that the chipmaker's CEO be fired, and several equity stakes in rare earth minerals companies. All were justified as investments necessary for economic security and to mitigate national security risk.

"Military equipment is not being made fast enough!" Trump said in posts on Truth Social and X. "It must be built now with the Dividends, Stock Buybacks, and Over Compensation of Executives, rather than borrowing from Financial Institutions, or getting the money from your government."

Shares of Lockheed Martin (LMT), Northrop Grumman (NOC), and General Dynamics (GD) were down at least 4% by Wednesday's close.

The question of how publicly traded companies use their cash is of interest to partisans of all stripe, though a distaste for corporate buyback programs might align Trump with his predecessor, President Biden, and Democratic leaders including Sen. Bernie Sanders, Chuck Schumer, and Elizabeth Warren.

President Biden in 2022 signed into law a 1% excise tax of stock repurchases—though that has hardly put a dent in the practice. Companies in the S&P 500 spent more than $1 trillion in the 12 months ended September 2025, up from more than $918 billion in the prior year period, according to S&P Global.

If Trump—who has also said companies shouldn't have to report earnings so frequently—is able to formalize his threat to bar companies in the defense sector from stock repurchases and dividends, it would ratchet up his brand of "state capitalism" up a notch—from deals to outright directives.

Bridget Bennett /Bloomberg / Getty Images

CEO Jensen Huang has said China's market could represent a $50 billion opportunity annually for Nvidia

Key Takeaways

• Nvidia CEO Jensen Huang said the chipmaker is looking forward to selling its H200 AI chip in China after winning President Trump's approval last month. The Chinese government's latest moves to halt sales could endanger those plans. 
• The company, meanwhile, is reportedly imposing more stringent terms on Chinese clients looking to buy the H200.

Will Nvidia ever get to sell more of its AI chips in China? Investors see the country as a big opportunity—but getting there has been a challenge.

CEO Jensen Huang said this week that Nvidia (NVDA) is looking forward to selling its H200 AI chip in China after winning President Donald Trump's approval in exchange for agreeing to give the U.S. government a 25% cut of sales. CFO Colette Kress said Tuesday that the U.S. government is "working feverishly" on the details, and the company expects to begin shipping to China soon.

But the Chinese government's latest moves to halt sales could hobble those plans. Beijing has ordered companies to halt H200 orders, and could follow with a mandate that firms buy domestic chips instead, The Information reported Wednesday.

Meanwhile, the company is imposing more stringent terms on Chinese clients looking to buy the H200 amid the uncertainty, such as full upfront payment without options to cancel, according to a Reuters report Thursday.

Nvidia declined to comment on the reports.

Why This Is Significant

While Nvidia and its investors may be eager to see multibillion-dollar revenues in China grow thanks to new U.S. export licenses, the chip company still faces political and othger hurdles before it realizes those sales.

More access to China's market, which Huang has said could be a $50 billion annual opportunity for Nvidia, would represent a significant source of growth for the company. (Nvidia is expected to report full-year revenue above $210 billion.) The chipmaker's latest forecasts did not take China sales of the H200, or H20 that Trump greenlighted back in August, into consideration.

The H20, a less-powerful chip designed specifically for China's market, has also met challenges from Beijing after receiving Trump's backing. The approvals also face opposition at home, with bipartisan efforts by U.S. lawmakers in recent weeks to block the sales.

In a note to clients Tuesday, analysts at Morgan Stanley nodded to possible sales of the AI chips in China as a source of potential upside for the company, but excluded them from their base case for the stock amid lingering worries about political barriers. Analysts at Jefferies and Bernstein, who like Morgan Stanley hold "buy" or equivalent ratings on the stock, have also voiced some skepticism about the likelihood of sales.

Shares of Nvidia were down about 2% Thursday afternoon, leaving them little changed for 2026 after climbing close to 40% last year.

This article was first published on Jan. 7, 2026. It was updated to reflect additional developments and market prices.

Alex Wong/Getty Images

President Donald Trump said he would ban large investors from buying single-family homes in an effort to improve affordability.

Key Takeaways

• After hinting at “aggressive” reforms in the housing market, President Donald Trump wrote on social media Wednesday that he is seeking to ban large investor home purchases.
• Investors accounted for more than 10% of home sales in the 2025 second quarter, but the majority were made by smaller investors.

President Donald Trump provided the first details of his plan for “aggressive” reforms to the housing market on Wednesday.

Trump wrote in a social media post that he is taking steps to ban large institutional investors from purchasing single-family homes. He also said he is asking Congress to write it into law.

“People live in homes, not corporations,” he wrote.

Why This Matters for the Housing Market

Investor demand can drive up home prices, making it more challenging for owner-occupiers to purchase homes. Changes to who can buy homes can also influence homebuilder activity, mortgage demand, and returns for real estate investors and funds tied to housing markets.

This is likely the first of several housing industry reforms Trump promised during his Dec. 17 address to the nation. More details on the ban are expected during Trump's upcoming speech at the annual World Economic Forum conference in Davos, Switzerland, scheduled for Jan. 19-23.

The housing market has sidelined many would-be buyers as affordability has declined: Mortgage rates remained well above 6% throughout 2025 and housing prices remained elevated.

Investor activity in the housing market can make it even more difficult for ordinary homebuyers to compete for homes. 

“With affordability still stretched and inventory tight, many would-be buyers remain sidelined, giving investors a larger share of the market and, in some areas, more influence over prices,” said Danielle Hale, chief economist at Realtor.com, in a prepared statement. “As a result, investor activity can amplify price pressures, especially in markets where their purchases concentrate in already competitive price ranges.”

Investors Activity Can Crowd Out Ordinary Homebuyers

The share of homes purchased by investors was 10.8% in the second quarter of 2025, the most recent data period tracked by Realtor.com.

While Trump’s post said the ban would target larger operations, the Realtor.com data showed that the majority (82.5%) of investor purchases were made by smaller firms. Realtor.com defined large investors as those who made more than 50 purchases over a period of roughly 25 years. 

Because of this, a policy that only targets large institutional investors may not have a significant impact on affordability, some economists and experts said.

“Research has consistently shown that large institutional investors play a relatively small role in the market for owning single-family homes,” wrote Norbert Michel, vice president and director of the Center for Monetary and Financial Alternatives at the Cato Institute.

Investors Seek Gains in High-Growth Markets

The report also showed that investors in some areas are often willing to pay for premium properties.

For example, the median investor purchase price in Montana comes in 35% higher than the overall median purchase price for houses in that state. Investors also bought more expensive homes in Utah, California, New York and Vermont, generally hoping to cash in on rising home prices. 

In other areas, investor activity is focused on lower-priced housing, which is often then used as rental units. In Michigan, the median investor purchase price was 53% lower than the overall median purchase price in that state. Investors also purchased more low-priced housing in Maryland, Virginia, Delaware and Wisconsin. 

Update, Jan. 7, 2026: This article has been updated to include a response to Trump's proposal from the Cato Institute.