Nvidia and other stocks exposed to the AI trend were being hit as Oracle slumped following earnings.
NVIDIA, Micron, and Vertiv emerge as top AI picks for next year, backed by strong net income ratios and solid 12-month growth metrics.
The semiconductor sector delivered extraordinary performance in 2025, with AI-driven demand reshaping the competitive landscape.
Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) has denied reports suggesting that Chinese AI startup DeepSeek is using the company's Blackwell GPUs, which are restricted for sale to China, to train advanced AI models. The reports, initially published by The Information, claimed that DeepSeek accessed several thousand Blackwell chips through a complex smuggling operation involving “phantom data centers” in Southeast Asia.
Nvidia Corp (NASDAQ:NVDA, XETRA:NVD)-backed startup Starcloud has achieved a milestone by training the first artificial intelligence model in space, according to a CNBC report. The company launched its Starcloud-1 satellite in early November 2025, equipped with an Nvidia H100 GPU, which the company says is 100 times more powerful than any graphics processor previously flown in orbit.
The robust hyperscaler demand for Nvidia Corporation's market leading AI chips/networking offerings already flows into the outsized 2025/2026 guidance and the excellent pricing power. I urge readers to look beyond the noise surrounding intensifying custom AI accelerator competitions, as NVDA launches the lower cost Rubin CPX— Content Phase aXcelerator for inference use cases. Thanks to the ongoing consolidation at the 50/100 DMAs and the raised consensus forward estimates, NVDA looks cheap at P/E of 38.93x and 3Y PEG ratio of 0.82x.
Nvidia refuted a report that the Chinese AI startup DeepSeek has been using smuggled Blackwell chips to develop its upcoming model. "We haven't seen any substantiation," a Nvidia spokesperson said in a statement.
It's the darling of the financial markets and the undisputed heavyweight champion among U.S.
AI demand, China chip approval and strong earnings boost NVIDIA's outlook. SMH, SHOC and SMHX may shine as NVDA gears up for 2026.
Shares of Nvidia Corp. (NASDAQ: NVDA) have risen 3.0% in the past week on announcements that it will be able to sell advanced chips to China and that it is developing location verification technology to prevent chip smuggling.
Nvidia has built location verification technology that could indicate which country its chips are operating in, according to sources familiar with the matter, a move that could help prevent its artificial intelligence chips from being smuggled into countries where their export is banned.
CNBC's Jim Cramer talks about the importance of stock picking for individual investors and breaks down what he thinks of Nvidia, Apple and Warner Bros. Discovery.