News and analysis

The world's premier AI chip stock posted another brilliant earnings report overnight, soaring 6% in the after-hours and struggling to add even more value in the pre-market trading today. Resurfacing from under $135 as a closing price on May 28, NVIDIA gained at least $8 per share helping the S&P 500 benchmark to reach almost 6,000 points, as futures went less than 5 points short of reaching this key round figure. NVIDIA's evident success was actually a beacon of hope for many investors around the world this time. Strong and ever-growing AI demand is a declaration into future rallies for other bright members of the big tech giants' family. All those megacaps, including Google, Meta, Broadcom, Microsoft, Amazon and even Apple, which has been recently hit by trade barriers issues with possible 25% levies for iPhones in the U.S., received a powerful boost in the form of several percent growth right away. As I can see, NVIDIA is both a valuable investment asset in its own right and a lifesaver for pulling up the rest of my tech portfolio, proving that all bets were made correctly.

As for specifics, Nvidia is generally projecting only a $8 billion hit from new export and import chip rules, meaning the scale of U.S.-China chip ban and tariff expectations. The damage from curbs is not as bad as it was feared by the pool of Wall Street analysts. Nvidia earnings' official transcript detailed that the actual Q1 cost due to restrictions was already $1 billion less than expected because it was able "to re-use certain materials". As a result, the company lost $2.5 billion in H20 chip sales and is going to miss $8 billion in Q2. The H20 provided $4.6 billion of sales and China accounted for just 12.5% of the total Q1 revenue. This probably meant that Chinese customers were stocking up on enough H20 chips ahead of tougher US restrictions.

Before that, Nvidia CEO Jensen Huang estimated the revenue impact related to the restrictions at about $15 billion. He argued that the segment is still at risk of being cut off from China’s massive AI developer base as China’s chip industry is closing in on the United States’ dominance, but he clearly praised U.S. president Donald Trump’s recent decision to revoke his supposed "AI diffusion rule" that previously threatened to regulate global flows of chips too thoroughly. "President Trump wants America to win. And he also realizes that we’re not the only country in the race," Huang said. After saying that, he'll be fine, I'm pretty sure, as well as the market's crowd.

Huang also added that globally "AI inference token generation has surged tenfold in just one year, and as AI agents become mainstream, the demand for AI computing will accelerate..." as "countries around the world are recognizing AI as essential infrastructure — just like electricity and the internet — and Nvidia stands at the center of this profound transformation. Meanwhile, the "enterprise AI" is still in "its early stages" so that "we are at the beginning of the AI infrastructure build-out". He said that Nvidia’s Hopper chips could no longer be modified for the Chinese market but did not comment on its cutting-edge Blackwell chips. Meanwhile, Reuters reported that Nvidia is preparing a Blackwell version, which would be fit for the Chinese market with updating regulations.

As for the other numbers, Nvidia generated its Q1 adjusted profit of $0.96 per share on revenue of $44.06 billion while the market consensus pointed at per-share income of $0.93 and revenue of $43.31 billion. All numbers are absolute records as the previous highest achievement was $0.90 per share on $39.33 billion so far. Thus, Nvidia added nearly $4.7 billion within three months. The company's data center unit, which is used to create the core revenue, saw a 73% jump 73% to $39.1 billion. Gaming revenue was up 42% YoY. Besides, Nvidia said it has $29.8 billion "in commitments" to have its products manufactured. If you think that is not enough to consider Nvidia as still a strong Buy, even at current levels, then I don't know what else you need to change your point of view. The degree of optimism in the analytical community was perhaps best reflected by Wedbush analyst Daniel Ives' sacred phrase that "The Godfather of AI Delivers Again".

Basic Attention Token (BAT) gained 1.3% to $0.1420 this week, in line with the broader crypto market where Bitcoin (BTC) edged up by 1.1% to $108,420. BAT has formed an inverted head-and-shoulders pattern, suggesting a potential breakout above the resistance at $0.2000. The recent decision by the U.S. Court of International Trade to block Donald Trump’s proposed tariffs triggered a sharp rally in risky assets, which cryptocurrencies may soon follow. However, caution remains as the Federal Reserve’s hawkish tone, reflected in the latest FOMC Minutes, emphasized inflation risks. Dovish U.S. monetary policy has historically supported crypto rallies, and the current uncertainty is keeping BTC within the $108,000–110,000 range. BAT, like the broader market, is awaiting greater clarity before making a decisive move.

Synthetix (SNX) is rising by 3.6% to $0.7700 this week, outperforming the broader crypto market where Bitcoin (BTC) is up by 1.2% to $108,600. Despite the weekly gain, SNX remains near its lows and continues to struggle for upward momentum. The token failed to reach the $1.000 resistance level during the recent broad crypto rally, signaling underlying weakness. It remains confined within a descending channel, with $1.000 also marking the midpoint of that range — a key level that must be broken for any sustainable bullish reversal. With limited project-specific news to drive demand, SNX appears heavily reliant on broader market strength to regain traction. A strong continuation of the crypto rally would be essential for SNX to attempt a breakout.

Tesla (TSLA) stocks responded to the S&P 500 broad barometer's rally, which is approaching the 6,000 points mark again, with a convincing break through a 2-week-long flag pattern above the $360 barrier. The stock now looks like the vanguard of an advanced team of tech assets among other global giants fighting for new price heights in May. Following that jump led by a 6.9% rise on May 27, now the number $420, so mellifluous to the ear of the founder of the EV making company Elon Musk, seems to be a minimally reasonable and only initial target, if we make the simplest possible graphical approximation on Tesla charts, using the so-called "measured move" technique with the vertical flagpole as a measure of scale, which extends from $270 as the low point on May 7 to $350 as an intraday high on May 14, i.e. just one week later.

Tesla's rapid rise to the top looked like an essentially predetermined move during the company's conference call hot on the trail of its quarterly report on the night of April 22-23. And here we would like to especially highlight the prospect of active implementation of robotaxis with deliveries of hundreds of thousands, if not a couple of million robotaxi cars in the next couple of years in the U.S. alone, as well as Tesla cars' relative independence from imported components. The latter factor gives it a huge advantage not only over other car companies, but also among many megacaps, with Apple (APPL) as a very good example, since shares of the iPhone manufacturer are still pressured enough due to its large exposure to production chains in China and trade war costs. Nothing like this is happening with Tesla, since Tesla localized its production in America, Europe and Asia.

Even though Tesla is facing a plunge in sales across its European markets due to protests and boycotts over Elon Musk's political stance, and with the broader electric vehicle market in Europe growing by approximately 28% YoY but declined by nearly half vs last year's records particularly for Tesla, its moving in other parts of the world is spectacular to offset Tesla's shortfall in the EU. Brief factory shutdowns for several weeks to upgrade the plants for its best-selling Model Y sport utility vehicle, also constrained supply but is a strong factor of increasing sales soon. Let's not forget that Tesla would be characterized correctly as a hybrid of an AI leader and an EV leader at the same time, which also manages to make competitors partners by simply providing them with necessary and actually unavoidable infrastructure and batteries.

Wedbush Securities has issued the most bullish call to shift its Tesla’s price target to $500 from recent $350, meaning a nearly 47% upside potential. It is positioning Tesla as “one of the best pure plays on AI for the next decade,” emphasizing the company’s artificial intelligence, robotics and full self-driving (FSD) ambitions as key value drivers. Launching FSD rollout in China just began in Q1, and its expected deployment in Europe will follow, probably in summer, with pending regulatory approval. High-volume production of the Optimus robots is planned for 2026; initial customer deliveries are projected for 2027 to unlock at least $1 trillion in AI-related extra valuation. This may double Tesla’s market caps to more than $2 trillion by late 2026. Again, Tesla announced its fresh lower-priced vehicle in the first half of 2025, starting around $30,000 including tax credits, which could align well with market conditions.

Elon Musk’s Neuralink project successfully raised $600 million, valued up to $9 billion by some analysts. It develops brain-computer interfaces (BCIs). Their flagship product, called "The Link," is a coin-sized implantable device to control various devices with thoughts.

All of the above are natural fundamental background behind a new round of Tesla's rally to new heights, not to mention such a "trifle" as a simple repetition of the historical peaks of December and January around $480. From a technical point of view, Tesla's price consolidation between $330 and $355, to digest the set of news from April 22-23, lasted only two weeks until yesterday's trading session on May 27 when the situation ultimately resolved in favour of further gains. It therefore makes sense to reiterate a very short-term horizon for Tesla within the range from $400 to $420, where the price has a high chance of being as early as June, with targets above $500 in the medium term, and most likely within the next few months, or at least until the end of 2025.