Your Portfolios in Brief
Nvidia, founded in 1993, is a global company specializing in the design and manufacturing of graphics processing units (GPUs) and system-on-chip (SoC) solutions for the gaming, data center, and artificial intelligence (AI) markets. The company operates in multiple countries and employs thousands of people worldwide.
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Key Highlights in 2025
• Annual Guidance: Nvidia maintained a fair value estimate of $130 per share, reflecting a perception of a fair valuation relative to its long-term worth.
• Quarterly Revenue: For the quarter ending January 26, 2025, Nvidia reported $39.3 billion in revenue, an increase of 78% compared to the same period the previous year.
• Segment Performance:
o Data Centers: Revenue reached $35.6 billion, up 93% year-over-year, primarily driven by increased demand for AI solutions.
• Adjusted Earnings Forecast: Nvidia expects $43 billion in revenue for the next quarter, representing a 9% sequential increase, exceeding consensus estimates.
• Performance vs. Wall Street Expectations: The results surpassed analyst expectations, with adjusted net income of $22.07 billion, up 72% year-over-year.
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Why This Stock Is One to Watch
Since the emergence of ChatGPT in November 2022, artificial intelligence has become a driving force of innovation across almost all industries: banking, healthcare, manufacturing, commerce, and defence.
Nvidia is at the heart of this revolution, as its high-performance GPUs are the best processors for training and running advanced AI models.
• Market Dominance: Nvidia controls 95% of the AI processor market, making its role nearly monopolistic in supplying solutions for generative AI.
• Explosive Demand for Its Chips: In 2024, Nvidia’s revenue quintupled, reaching $130 billion, compared to $27 billion in 2023.
• Massive Tech Giant Spending: AI investments by Meta, Microsoft, Google, and Amazon reached $230 billion in 2024 and are projected to rise to $325 billion in 2025.
• Blackwell Chip Deployment: The next-generation Blackwell processors are already being distributed. In the last quarter, Nvidia sold $11 billion worth of these new chips, and sales are expected to continue surging in 2025.
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Conclusion
At Pratte Portfolio Management, we made the strategic decision to invest in Nvidia at an opportune moment, taking advantage of its six-month low to strengthen our position. We are firm believers in its central role in the AI revolution and its undisputed leadership in advanced graphics processors.
With record-breaking growth, massive AI investments, and continuous innovation, Nvidia remains one of the best opportunities to capitalize on the global digital transformation. After a stellar 171% gain in 2024, Nvidia now boasts a $2.8 trillion market capitalization.
In summary, Nvidia remains a must-have in the tech sector, with strong growth prospects, despite some concerns about current valuation levels. We remain optimistic about Nvidia’s outlook and confident that this stock will continue to deliver outstanding long-term performance.
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Market Brief
Monday
• Dow Jones: -1.48% (43,191.24 points)
• S&P 500: -1.76% (5,849.72 points)
• NASDAQ: -2.64% (18,350.19 points)
• TSX: -1.54% (25,001.57 points)
On the foreign exchange market, the Canadian dollar traded at an average rate of 69.31 US cents, up from 69.26 US cents on Friday.
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Trade Tensions: Trump Announces Tariffs
Stock indices plummeted following President Donald Trump’s announcement confirming the imposition of high tariffs on imports from Canada, Mexico, and China. The new 25% surcharges on Canadian and Mexican goods, along with an increase to 20% on Chinese imports, heightened investors’ fears. The U.S. administration justified this decision by citing the lack of sufficient action by these countries against fentanyl trafficking.
Technology Sector Under Pressure
The technology sector suffered significant losses, led by Nvidia (-8.69%). The semiconductor manufacturer is under investigation in Singapore for potentially circumventing U.S. sanctions through chip sales to embargoed countries. Other tech stocks, such as Broadcom and Super Micro Computer, also saw notable declines.
Automakers Impacted
Shares of major U.S. automakers, General Motors (-3.2%) and Ford (-2.8%), fell after Trump’s announcement. The new import tariffs on Mexican and Canadian goods are expected to disrupt supply chains, which these companies heavily rely on.
Energy Sector Declines
The oil market was affected by a drop in crude prices, leading to a decline in key energy stocks. ExxonMobil (-2.4%) and Chevron (-2.1%) suffered from market concerns over the potential impact of trade tensions on global oil demand.
Defensive Stocks Limit Losses
As markets declined, defensive stocks showed relative resilience. Johnson & Johnson (+0.8%) and Procter & Gamble (+0.5%) attracted investors looking to shift toward safer assets in times of uncertainty.
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Stocks in Brief
• Nvidia (-8.69%): Investigation in Singapore over potential U.S. sanction circumvention through chip sales.
• Broadcom (-5.2%): Sharp correction amid massive AI stock sell-offs.
• Super Micro Computer (-6.8%): Decline following trade tensions and semiconductor sector weakness.
• General Motors (-3.2%) & Ford (-2.8%): Direct impact from U.S. surcharges on Mexican and Canadian imports.
• ExxonMobil (-2.4%) & Chevron (-2.1%): Lower crude oil prices weigh on the energy sector.
• Johnson & Johnson (+0.8%) & Procter & Gamble (+0.5%): Defensive stocks gain traction amid market volatility.
• Canadian dollar: Traded at an average of 69.31 US cents, up from 69.26 US cents on Friday.
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Tuesday
• Dow Jones: -1.55% (42,520.99 points)
• S&P 500: -1.22% (5,778.15 points)
• NASDAQ: -0.35% (18,285.16 points)
• TSX: -1.72% (24,572.00 points)
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Trade Tensions: New U.S. Tariffs
Stock markets suffered significant losses following the enforcement of new U.S. tariffs.
The 25% surcharges on Canadian and Mexican imports, along with a 20% tariff increase on Chinese goods, reignited fears of a trade war.
Technology Sector Under Pressure
The technology sector was particularly affected, with companies like Nvidia (-0.5%) and Tesla (-5.5%) recording notable losses.
Nvidia pared back its initial losses to -0.5%, while Tesla dropped -5.5% due to a sharp decline in Chinese-made vehicle sales.
Automakers Impacted
Shares of major U.S. automakers fell following Trump’s announcements.
• General Motors (-4.56%)
• Ford (-2.88%)
• Stellantis (-4.38%)
Investors anticipate higher production costs due to the new tariffs.
Retail Sector Struggles
Retailers also faced difficulties, with Best Buy (-13.30%) and Target (-3%) posting significant declines.
Best Buy warned that tariffs could lead to price increases for U.S. consumers, while Target expects a difficult quarter due to weak February sales and lower consumer confidence.
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Stocks in Brief
• Nvidia (-0.5%): Reduced initial losses despite trade tensions.
• Tesla (-5.5%): Decline due to weaker Chinese-made vehicle sales.
• General Motors (-4.56%): Hit by new U.S. tariffs, raising production costs.
• Ford (-2.88%): Concerns over rising costs due to tariffs.
• Stellantis (-4.38%): Weighed down by trade tensions and new U.S. taxes.
• Best Buy (-13.30%): Warned of potential price increases due to tariffs.
• Target (-3%): Cautious outlook for the quarter, citing weaker consumer confidence.
• Canadian dollar: Traded at 69.02 US cents, down from 69.31 US cents on Monday.
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Wednesday
• Dow Jones: +1.14% (43,006.59 points)
• S&P 500: +1.12% (5,842.63 points)
• NASDAQ: +1.46% (18,552.73 points)
• TSX: +1.21% (24,870.82 points)
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Temporary Tariff Exemption for the Auto Sector
Markets rebounded after the announcement of a one-month exemption from the 25% tariffs on the auto sector.
This move aims to prevent U.S. automakers from facing economic disadvantages, as their supply chains partially depend on Mexico and Canada. The news boosted auto stocks significantly.
Tech Sector Recovery
The tech sector benefited from the market uptrend, with Microsoft and Tesla posting notable gains.
After leading the declines in previous sessions, tech stocks rebounded as investor sentiment improved and markets stabilized.
Economic Data & Fed’s Beige Book
The Federal Reserve’s Beige Book report provided market support.
It indicated that many businesses anticipate price increases due to tariffs, but the economic outlook remains moderately optimistic.
New U.S. employment data revealed a sharp slowdown in private-sector hiring in February, with businesses citing political uncertainty as a key factor.
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Stocks in Brief
• Ford (+5.81%): Benefited from the temporary tariff exemption on the auto sector.
• General Motors (+7.21%): Strong gains following the temporary import tax removal.
• Stellantis (+9.24%): Biggest gainer in the auto sector after the exemption announcement.
• Moderna (+15.94%): Surged after the CEO purchased over 160,000 shares, signalling confidence in the company.
• CrowdStrike (-6.34%): Declined following disappointing financial forecasts.
• Abercrombie & Fitch (-9.24%): Dropped after issuing lower-than-expected earnings guidance.
• Foot Locker (+5.12%): Rose after better-than-expected quarterly results, despite a challenging environment.
• Canadian dollar: Traded at 69.59 US cents, up from 69.02 US cents on Tuesday.
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Thursday
• Dow Jones: -0.99% (42,579.08 points)
• S&P 500: -1.78% (5,738.52 points)
• NASDAQ: -2.61% (18,069.26 points)
• TSX: -1.15% (24,584.04 points)
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Trade Tensions: Tariff Impact
Markets declined after the United States confirmed the implementation of new tariffs on imports from Canada, Mexico, and China. The Trump administration announced a one-month delay for certain products that comply with the USMCA agreement, but this concession was not enough to reassure investors.
Treasury Secretary Scott Bessent defended these measures, stating that the U.S. would take a more aggressive approach to protect its industries. His remarks further fueled market uncertainty, leading to a broad-based decline in stock indices.
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Technology Sector Takes a Heavy Hit
The Nasdaq lost 2.61%, officially entering correction territory. The technology sector was particularly affected, with a massive sell-off in semiconductor stocks:
• Marvell Technology (-19.8%): Sharp drop after disappointing forecasts from analysts.
• Nvidia (-5.74%): Correction following the recent AI-driven rally.
• Broadcom (-6.33%): Declined ahead of its quarterly earnings report.
Investors, fearing a slowdown in the semiconductor market and increased trade restrictions, reduced their exposure to large-cap tech stocks.
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Consumer Discretionary Stocks Under Pressure
The consumer discretionary sector faced significant headwinds due to macroeconomic concerns.
• Victoria’s Secret (-8.24%): Plunged after issuing weaker-than-expected forecasts, citing, "macroeconomic uncertainties."
• Tesla (-5.61%): Suffered another setback amid doubts over electric vehicle demand and increased margin pressure.
As market volatility increases, investors are shifting towards more defensive assets.
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Canadian Market Hit by Tariff Uncertainty
The TSX fell nearly 300 points, weighed down by concerns over U.S. tariffs on Canadian goods.
• Industrial and export-related stocks posted notable declines as Canadian companies assessed the potential impact of the new protectionist measures on their operations.
• The Canadian dollar gained slightly, reflecting a currency market searching for stability amid uncertainty.
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Canadian Employment Stagnates in February, A Key Indicator for the Bank of Canada
The latest data from Statistics Canada reveals that the Canadian labour market remained stagnant in February, with a net gain of just 1,100 jobs, falling well short of economists’ expectations. The unemployment rate held steady at 6.6%, while population growth slowed to its lowest pace since April 2022.
Some sectors saw job gains, notably wholesale and retail trade, but these were offset by job losses in professional, scientific, and technical services, as well as transportation and warehousing. Additionally, severe snowstorms in Eastern and Central Canada resulted in lost working hours for over 420,000 Canadians.
This employment stagnation could influence the Bank of Canada’s upcoming March 12 interest rate decision, as the country braces for a trade war with the United States. In Quebec, employment remained stable for the third consecutive month, while the unemployment rate fell to 5.3%, the lowest among Canada’s ten provinces.
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Stocks in Brief
• Marvell Technology (-19.8%) – Plunged after issuing disappointing financial forecasts.
• Nvidia (-5.74%) – Declined as investors pulled back from semiconductor stocks amid slowdown concerns.
• Broadcom (-6.33%) – Fell ahead of its earnings release, reflecting sector-wide pressure.
• Victoria’s Secret (-8.24%) – Dropped after weaker-than-expected sales projections.
• Tesla (-5.61%) – Slid as margin pressure and demand uncertainties weighed on the stock.
• Canadian Dollar (+0.43%) – Strengthened to 69.89 US cents, up from 69.59 US cents the previous
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Friday
• Dow Jones Industrial Average: -0.4%
• S&P 500: -0.2%
• Nasdaq Composite: -0.1%
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Key Events of the Session
Weaker-than-expected Jobs Report
The Department of Labor reported an increase of 151,000 nonfarm jobs in February, below the 170,000 expected by economists. The unemployment rate slightly rose to 4.1%, fuelling concerns about an economic slowdown.
Markets Under Pressure Amid Trade Uncertainty
Stocks have been volatile this week as investors reacted to new tariff policies from President Donald Trump. On Thursday, Trump announced that certain goods from Canada and Mexico, covered under the USMCA trade agreement, would be exempt from tariffs until April 2. Despite this concession, uncertainty persists, weighing on market confidence.
Sharp Decline in the U.S. Dollar
The U.S. dollar is on track for its worst week since November 2022, posting a 3.6% decline over the week. This drop is attributed to concerns over monetary policy and heightened trade tensions.
Nasdaq Announces 24/7 Trading Plans
Nasdaq has revealed its intention to allow stock trading 24 hours a day, five days a week, starting in the second half of 2026. This initiative aims to increase flexibility for global investors and adapt to increasingly digital financial markets.
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Stocks in Brief
• Broadcom (+6.04%) – Gains following strong earnings, supported by demand in artificial intelligence.
• Nvidia (+0.19%) – Slight increase, continuing its momentum in the AI sector.
• Macy’s (-3.00%) – Downgraded by JPMorgan, citing anticipated declines in store sales.
• Hewlett Packard Enterprise (-15.12%) – Lower-than-expected quarterly earnings and announcement of a layoff plan.
• Costco (-5.00%) – Drop after reporting disappointing quarterly results.
• U.S. dollar – Down 3.6% for the week, marking its worst performance since November 2022.
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Conclusion
Markets were heavily shaken this week, weighed down by new U.S. tariffs on Canadian, Mexican, and Chinese imports. The Dow Jones, S&P 500, and Nasdaq posted multiple negative sessions, with the Nasdaq entering correction territory under pressure from tech stocks. Amid these turbulences, all eyes are now on the Federal Reserve, whose upcoming decisions will be crucial for the markets’ direction.
