Nvidia Stock (NVDA) Trembles as Chinese Ramp Up Pressure on Chip Security Fears

Tariffs are making money. That may make them hard to quit.

Miami Herald

16 minutes ago

Miami Herald

Tariffs are making money. That may make them hard to quit.

WASHINGTON -- President Donald Trump's extensive tariffs have already started to generate a significant amount of money for the federal government, a new source of revenue for a heavily indebted nation that American policymakers may start to rely on. As part of his quest to reorder the global trading system, Trump has imposed steep tariffs on America's trading partners, with the bulk of those set to go into effect Thursday. Even before the latest tariffs kick in, revenue from taxes collected on imported goods has grown dramatically so far this year. Customs duties, along with some excise taxes, generated $152 billion through July, roughly double the $78 billion netted over the same time period last fiscal year, according to Treasury data. Indeed, Trump has routinely cited the tariff revenue as evidence that his trade approach, which has sown uncertainty and begun to increase prices for consumers, is a win for the United States. Members of his administration have argued that the money from the tariffs would help plug the hole created by the broad tax cuts Congress passed last month, which are expected to cost the government at least $3.4 trillion. 'The good news is that Tariffs are bringing Billions of Dollars into the USA!' Trump said on social media shortly after a weak jobs report showed signs of strain in the labor market. Over time, analysts expect that the tariffs, if left in place, could be worth more than $2 trillion in additional revenue over the next decade. Economists overwhelmingly hope that doesn't happen and the United States abandons the new trade barriers. But some acknowledge that such a substantial stream of revenue could end up being hard to quit. 'I think this is addictive,' said Joao Gomes, an economist at the University of Pennsylvania's Wharton School. 'I think a source of revenue is very hard to turn away from when the debt and deficit are what they are.' Trump has long fantasized about replacing taxes on income with tariffs. He often refers fondly to American fiscal policy in the late 19th century, when there was no income tax and the government relied on tariffs, citing that as a model for the future. And while income and payroll taxes remain by far the most important sources of government revenue, the combination of Trump's tariffs and the latest Republican tax cut does, on the margin, move the United States away from taxing earnings and toward taxing goods. Such a shift is expected to be regressive, meaning that rich Americans will fare better than poorer Americans under the change. That's because cutting taxes on income does, in general, provide the biggest benefit to richer Americans who earn the most income. The recent Republican cut to income taxes and the social safety net is perhaps the most regressive piece of major legislation in decades. Placing new taxes on imported products, however, is expected to raise the cost of everyday goods. Lower-income Americans spend more of their earnings on those more expensive goods, meaning the tariffs amount to a larger tax increase for them compared with richer Americans. Tariffs have begun to bleed into consumer prices, with many companies saying they will have to start raising prices as a result of added costs. And analysts expect the tariffs to weigh on the performance of the economy overall, which in turn could reduce the amount of traditional income tax revenue the government collects every year. 'Is there a better way to raise that amount of revenue? The economic answer is: Yes, there is a better way, there are more efficient ways,' said Ernie Tedeschi, director of economics at the Yale Budget Lab and a former Biden administration official. 'But it's really a political question.' Tedeschi said that future leaders in Washington, whether Republican or Democrat, may be hesitant to roll back the tariffs if that would mean a further addition to the federal debt load, which is already raising alarms on Wall Street. And replacing the tariff revenue with another type of tax increase would require Congress to act, while the tariffs would be a legacy decision made by a previous president. 'Congress may not be excited about taking such a politically risky vote when they didn't have to vote on tariffs in the first place,' Tedeschi said. Some in Washington are already starting to think about how they could spend the tariff revenue. Trump recently floated the possibility of sending Americans a cash rebate for the tariffs, and Sen. Josh Hawley, R-Mo., recently introduced legislation to send $600 to many Americans. 'We have so much money coming in, we're thinking about a little rebate, but the big thing we want to do is pay down debt,' Trump said last month of the tariffs. Democrats, once they return to power, may face a similar temptation to use the tariff revenue to fund a new social program, especially if raising taxes in Congress proves as challenging as it has in the past. As it is, Democrats have been divided over tariffs. Maintaining the status quo may be an easier political option than changing trade policy. 'That's a hefty chunk of change,' Tyson Brody, a Democratic strategist, said of the tariffs. 'The way that Democrats are starting to think about it is not that 'these will be impossible to withdraw.' It's: 'Oh, look, there's now going to be a large pot of money to use and reprogram.'' Of course, the tariffs could prove unpopular, and future elected officials may want to take steps that could lower consumer prices. At the same time, the amount of revenue the tariffs generate could decline over time if companies do, in fact, end up bringing back more of their operations to the United States, reducing the number of goods that face the import tax. 'This is clearly not an efficient way to gather revenue,' said Alex Jacquez, a former Biden official and the chief of policy and advocacy at Groundwork Collaborative, a liberal group. 'And I don't think it would be a long-term progressive priority as a way to simply collect revenue.' This article originally appeared in The New York Times. Copyright 2025

Prediction: This Unstoppable Stock Will Join Nvidia, Microsoft, and Apple in the $3 Trillion Club Before 2029

Yahoo

30 minutes ago

Yahoo

Prediction: This Unstoppable Stock Will Join Nvidia, Microsoft, and Apple in the $3 Trillion Club Before 2029

Key Points Artificial intelligence (AI) is helping Meta Platforms unlock greater efficiency. The company's digital advertising business is benefiting from these next-generation algorithms. Meta has other potential growth drivers that could fuel the next phase of its growth. 10 stocks we like better than Meta Platforms › There's been an undeniable shift over the past 20 years. During that time, technology companies have climbed the ranks of the world's most valuable companies, which was once the exclusive domain of industrial and energy concerns. For example, in 2005, ExxonMobil and General Electric were top of the class when measured by market cap, valued at $375 billion and $362 billion, respectively. Two decades later, it's the world's technology bellwethers that lead the pack. Topping the charts are three of tech's most recognizable names, which need little introduction. Artificial intelligence (AI) chipmaker Nvidia currently leads the pack at $4.3 trillion (as of this writing), with its stock recently hitting new all-time highs. Software giant Microsoft also notched a new record this week, cracking the $4 trillion mark. Rounding out the top three is iPhone maker Apple, with a market value of $3.1 trillion. With a market cap of $1.9 trillion, it might seem premature to suggest that Meta Platforms (NASDAQ: META) has been earmarked for admission in the $3 trillion club. However, the company's recent performance has been exemplary, and the stock has soared 33% so far this year (as of this writing), following 65% gains in 2024. Its winning streak appears poised to continue. The ever-increasing reach of its social media platform, ongoing leverage of digital advertising, and novel strategy for leveraging AI could combine to help Meta earn its membership in this exclusive fraternity. A digital advertising powerhouse The dawn of generative AI in late 2022 marked a pivotal point in the evolution of technology, and companies that were able to capitalize on that opportunity have reaped the rewards. Meta had already established expertise in the use of algorithms to advance its business, and generative AI took that to the next level. The company not only uses AI to surface more relevant content on its social media platforms but also provides a suite of AI-powered tools to assist merchants who use its digital advertising services. The results have been profound. In the second quarter, Meta's revenue of $47.5 billion jumped 22% year over year, driving diluted earnings per share (EPS) of $7.14 up 38%. CEO Mark Zuckerberg revealed that AI is "unlocking greater efficiency and gains across our ads system ... [driving] roughly 5% more ad conversions on Instagram and 3% on Facebook." He went on to say that "AI is significantly improving our ability to show people content that they're going to find interesting and useful." Meta's consistent user growth continues to fuel its success, as those who used one of Meta's family of social media platforms -- Facebook, Instagram, WhatsApp, or Threads -- increased 6% year over year to 3.48 billion, so its reach is unrivaled. This captive audience forms the basis of the company's digital advertising success, making it part of a triumvirate in the space. Alphabet's Google controlled an estimated 26% of the U.S. digital advertising market in 2024, while Meta gained ground with 21%, and Amazon took 14%, according to data compiled by business intelligence platform eMarketer. Meta's digital marketing is inseparable from its social media platforms, fueling its inexorable rise. The AI wildcard As the world's largest cloud infrastructure operators, Amazon Web Services (AWS), Microsoft Azure, and Google Cloud have a target market for their AI services, a luxury Meta doesn't have. To capitalize on the opportunity, the company tapped its treasure trove of data and trained a suite of homegrown, open-source, industry-favorite large language models (LLMs). The group, dubbed LLaMA (large language model Meta AI), is available via all the major cloud platforms and powers the Meta AI chatbot. Meta isn't stopping there. The company has recently been on a hiring spree, reportedly spending billions of dollars to assemble the top talent in the field of AI to develop the first "personal superintelligence." Meta has expanded beyond its social media roots into virtual reality (VR) and the metaverse, with AI being the company's latest area of interest. While Meta hasn't yet been able to significantly monetize these ambitions, Zuckerberg believes they hold the key to its future growth prospects and will eventually help boost profits. The path to $3 trillion Meta has a market cap of roughly $1.96 trillion (as of this writing), so it will take a stock price increase of roughly 53% to increase its value to $3 trillion. According to Wall Street, Meta is expected to generate revenue of $195 billion in 2025, giving the stock a forward price-to-sales (P/S) ratio of 10. Assuming its P/S remains constant, Meta would need revenue of roughly $299 billion annually to support a $3 trillion market cap. Wall Street is currently forecasting growth for Meta of more than 12% annually over the coming five years. If the company attains that target, it could achieve a $3 trillion market cap as soon as 2029. For context, Meta has grown its annual revenue by 840% over the past decade and by 22% in the most recent quarter, and frequently surpassed Wall Street's growth expectations -- so those estimates are likely conservative. Furthermore, at 30 times earnings, Meta's valuation is in line with that of the S&P 500 -- yet has generated stock price gains of 719% over the past 10 years, far exceeding the S&P 500, which rose just 203%. That makes a compelling case that Meta Platforms is an unqualified buy. Do the experts think Meta Platforms is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Meta Platforms make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,019% vs. just 178% for the S&P — that is beating the market by 841.12%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Danny Vena has positions in Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends GE Aerospace and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Prediction: This Unstoppable Stock Will Join Nvidia, Microsoft, and Apple in the $3 Trillion Club Before 2029 was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Yahoo

an hour ago

Yahoo

Prediction: This Unstoppable Stock Will Join Nvidia, Microsoft, and Apple in the $3 Trillion Club Before 2029

Key Points Artificial intelligence (AI) is helping Meta Platforms unlock greater efficiency. The company's digital advertising business is benefiting from these next-generation algorithms. Meta has other potential growth drivers that could fuel the next phase of its growth. 10 stocks we like better than Meta Platforms › There's been an undeniable shift over the past 20 years. During that time, technology companies have climbed the ranks of the world's most valuable companies, which was once the exclusive domain of industrial and energy concerns. For example, in 2005, ExxonMobil and General Electric were top of the class when measured by market cap, valued at $375 billion and $362 billion, respectively. Two decades later, it's the world's technology bellwethers that lead the pack. Topping the charts are three of tech's most recognizable names, which need little introduction. Artificial intelligence (AI) chipmaker Nvidia currently leads the pack at $4.3 trillion (as of this writing), with its stock recently hitting new all-time highs. Software giant Microsoft also notched a new record this week, cracking the $4 trillion mark. Rounding out the top three is iPhone maker Apple, with a market value of $3.1 trillion. With a market cap of $1.9 trillion, it might seem premature to suggest that Meta Platforms (NASDAQ: META) has been earmarked for admission in the $3 trillion club. However, the company's recent performance has been exemplary, and the stock has soared 33% so far this year (as of this writing), following 65% gains in 2024. Its winning streak appears poised to continue. The ever-increasing reach of its social media platform, ongoing leverage of digital advertising, and novel strategy for leveraging AI could combine to help Meta earn its membership in this exclusive fraternity. A digital advertising powerhouse The dawn of generative AI in late 2022 marked a pivotal point in the evolution of technology, and companies that were able to capitalize on that opportunity have reaped the rewards. Meta had already established expertise in the use of algorithms to advance its business, and generative AI took that to the next level. The company not only uses AI to surface more relevant content on its social media platforms but also provides a suite of AI-powered tools to assist merchants who use its digital advertising services. The results have been profound. In the second quarter, Meta's revenue of $47.5 billion jumped 22% year over year, driving diluted earnings per share (EPS) of $7.14 up 38%. CEO Mark Zuckerberg revealed that AI is "unlocking greater efficiency and gains across our ads system ... [driving] roughly 5% more ad conversions on Instagram and 3% on Facebook." He went on to say that "AI is significantly improving our ability to show people content that they're going to find interesting and useful." Meta's consistent user growth continues to fuel its success, as those who used one of Meta's family of social media platforms -- Facebook, Instagram, WhatsApp, or Threads -- increased 6% year over year to 3.48 billion, so its reach is unrivaled. This captive audience forms the basis of the company's digital advertising success, making it part of a triumvirate in the space. Alphabet's Google controlled an estimated 26% of the U.S. digital advertising market in 2024, while Meta gained ground with 21%, and Amazon took 14%, according to data compiled by business intelligence platform eMarketer. Meta's digital marketing is inseparable from its social media platforms, fueling its inexorable rise. The AI wildcard As the world's largest cloud infrastructure operators, Amazon Web Services (AWS), Microsoft Azure, and Google Cloud have a target market for their AI services, a luxury Meta doesn't have. To capitalize on the opportunity, the company tapped its treasure trove of data and trained a suite of homegrown, open-source, industry-favorite large language models (LLMs). The group, dubbed LLaMA (large language model Meta AI), is available via all the major cloud platforms and powers the Meta AI chatbot. Meta isn't stopping there. The company has recently been on a hiring spree, reportedly spending billions of dollars to assemble the top talent in the field of AI to develop the first "personal superintelligence." Meta has expanded beyond its social media roots into virtual reality (VR) and the metaverse, with AI being the company's latest area of interest. While Meta hasn't yet been able to significantly monetize these ambitions, Zuckerberg believes they hold the key to its future growth prospects and will eventually help boost profits. The path to $3 trillion Meta has a market cap of roughly $1.96 trillion (as of this writing), so it will take a stock price increase of roughly 53% to increase its value to $3 trillion. According to Wall Street, Meta is expected to generate revenue of $195 billion in 2025, giving the stock a forward price-to-sales (P/S) ratio of 10. Assuming its P/S remains constant, Meta would need revenue of roughly $299 billion annually to support a $3 trillion market cap. Wall Street is currently forecasting growth for Meta of more than 12% annually over the coming five years. If the company attains that target, it could achieve a $3 trillion market cap as soon as 2029. For context, Meta has grown its annual revenue by 840% over the past decade and by 22% in the most recent quarter, and frequently surpassed Wall Street's growth expectations -- so those estimates are likely conservative. Furthermore, at 30 times earnings, Meta's valuation is in line with that of the S&P 500 -- yet has generated stock price gains of 719% over the past 10 years, far exceeding the S&P 500, which rose just 203%. That makes a compelling case that Meta Platforms is an unqualified buy. Do the experts think Meta Platforms is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Meta Platforms make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,019% vs. just 178% for the S&P — that is beating the market by 841.12%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Danny Vena has positions in Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends GE Aerospace and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Prediction: This Unstoppable Stock Will Join Nvidia, Microsoft, and Apple in the $3 Trillion Club Before 2029 was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Nvidia Stock (NVDA) Trembles as Chinese Ramp Up Pressure on Chip Security Fears

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Tariffs are making money. That may make them hard to quit.

Prediction: This Unstoppable Stock Will Join Nvidia, Microsoft, and Apple in the $3 Trillion Club Before 2029

Prediction: This Unstoppable Stock Will Join Nvidia, Microsoft, and Apple in the $3 Trillion Club Before 2029

Nvidia Stock (NVDA) Trembles as Chinese Ramp Up Pressure on Chip Security Fears

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Tariffs are making money. That may make them hard to quit.

Prediction: This Unstoppable Stock Will Join Nvidia, Microsoft, and Apple in the $3 Trillion Club Before 2029

Prediction: This Unstoppable Stock Will Join Nvidia, Microsoft, and Apple in the $3 Trillion Club Before 2029

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