Salesforce, Nvidia lead market cap stock movers on Wednesday

Nvidia Corp stock is trading lower Wednesday amid reports indicating that Nvidia and Intel Corp suppliers are reevaluating their manufacturing strategy in Mexico due to the threat of tariffs.

President-elect Donald Trump has pledged a 25% tariff on all imports from Mexico, a critical manufacturing hub for companies like Nvidia, Advanced Micro Devices Inc , and Intel.

According to Nikkei Asia, both manufacturers are scrambling to address the potential impact of these tariffs.

Also Read: Nvidia Blackwell Supplier Vishay Intertechnology Likey To See Upside Courtesy Of AI Frenzy: Analyst

Some firms are increasing their production capacities within the U.S., while others have halted planned construction projects in Mexico.

Trump’s tariff plan, announced on Monday, includes a 25% levy on imports from Canada and an additional 10% tariff on goods from China, signaling a broad trade shift under the incoming administration.

Recently, Intel and the Biden-Harris Administration jointly announced that the U.S. Department of Commerce will allocate up to $7.86 billion to Intel under the CHIPS and Science Act. This funding will back semiconductor production and advanced packaging initiatives at Intel’s sites in Arizona, New Mexico, Ohio, and Oregon.

Microsoft Corp CEO Satya Nadella emphasized the company’s dedication to Mexico during his 2024 Microsoft AI Tour address. Nadella revealed a three-year $1.3 billion investment plan focused on advancing AI infrastructure, enhancing digital marketing efforts, and expanding AI skill-building initiatives.

Nvidia has soared over 184% year-to-date, but its performance has plateaued in the past five months, creating a crossroads for investors, according to Direxion’s Ed Egilinsky. He notes the pause suggests the stock might be priced to perfection, leaving traders closely monitoring for its next move.

Egilinsky highlights that while Nvidia leads the AI sector, maintaining its edge may require higher R&D investments, which could impact its financial projections. Geopolitical risks, particularly U.S. tariffs and global trade policies, also pose challenges, potentially affecting Nvidia’s revenue from China and reliance on Taiwan for chip manufacturing.

Despite these uncertainties, Nvidia’s AI growth outlook remains strong. Key partners like Microsoft, Amazon.com Inc , and Meta Platforms Inc heavily depend on Nvidia’s chips for cloud, machine learning, and data centers, driving demand. Egilinsky believes this demand could push Nvidia to record highs, provided the company effectively manages geopolitical risks.

Price Action: Nividia stock is down 1.24% at $135.23 premarket at last check Wednesday.

Also Read:

• Nvidia Unveils Fugatto: AI Tool That Transforms Sound Creation For Music, Ads, And Gaming

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Nokia Corporation NOK recently announced that one of Europe’s largest network operators Deutsche Telekom has opted to utilize the NOK industry leading portfolio to advance Open RAN (Radio Access Network) deployment in Germany. Deutsche Telekom is committed to establishing a robust multi-vendor Open RAN environment by increasing the supplier choices for radio access networks.

Advantages of Multi-Vendor Open RAN

Multi-vendor Open RAN architecture offers numerous advantages for network operators. It eliminates the risk associated with vendor lock-in and enables operators to choose hardware and software solutions that better suit their specific requirements. This greater flexibility allows operators to scale their network effectively and simplify the integration of new technologies. These capabilities drive cost efficiency in operations, boost coverage and speed, and lower latency, leading to enhanced experience for end users.

NOK’s Role in Deploying Open RAN in Germany

To scale up the O RAN in Germany, Deutsche Telekom has awarded Nokia 3000 sites across the country. Per the agreement, Nokia will offer several equipments such as modular, high-capacity baseband solutions, high-performance Habrok Massive MIMO radios and more. This product suite from its O-RAN compliant 5G Airscale portfolio powered by energy-efficient ReefShark System-on-Chip technology will offer premium coverage and capacity, ensuring consistent performance, resiliency and greater security for Open RAN architecture.

Deutsche Telekom will utilize NOK’s AI-native MantaRay solution to enhance network management and monitoring. Moreover, the solution will also facilitate various AI services, such as digital deployment, optimization and technical support. The integration of these leading-edge solutions will enable Deutsche Telekom to swiftly scale up its O RAN capabilities nationwide and improve overall customer experience.

Will This Venture Drive NOK’s Share Performance?

Multi-vendor O RAN architecture is gaining traction worldwide, owing to the benefits it offers to both network operators and customers compared to traditional setups. Nokia, with its comprehensive portfolio, is well-positioned to gain from this emerging trend.

The recent deal marks Nokia’s return as a key supplier for Deutsche Telekom, replacing the incumbent vendor Huawei. The partnership is a testament to Nokia’s growing technological leadership in the Open RAN space and strengthens its competitive position in the European Telecom market.

NOK’s Stock Price Movement

Shares of Nokia have gained 18.7% over the past year compared with the industry’s growth of 41%.

By Adriano Marchese

Shares of BeiGene rose Wednesday morning after the company said it has received regulatory approval for its treatment of gastric and esophageal cancers from the European Union.

Shares were recently up 8.2% at $207.80.

The oncology company said the European Commission approved Tevimbra, the commercial name for Tislelizumab, in combination with chemotherapy for the first-line treatment of esophageal squamous cell carcinoma and gastric or gastroesophageal junction adenocarcinoma.

Write to Adriano Marchese at adriano.marchese@wsj.com