Chip rally extends as attention shifts to Chinese Big Tech earnings

The news of fresh deals is coming in from the Middle East as Donald Trump seems very successful in getting the oil- and gas-rich countries to buy stuff from the US – including chips and planes – but appetite for trade optimism is starting to show signs of exhaustion. Despite the announcement of a $243bn deal with Qatar on top of the $600bn deal with Saudi Arabia, the S&P500 traded flat on Wednesday. In China, Tencent announced slightly better-than-expected revenue in Q1. Its net profit grew 82% compared to the same period last year – but still fell short of analyst expectations and Alibaba will announce its own results later today, and the focus will be on AI and cloud revenues. Note that the Chinese AI story is developing and the Chinese Tech companies’ valuations remain cheaper than the US peers. Listen to find out more!