Apple and Executives Warned of China's Military Threat
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 24 2026
0mins
Should l Buy NVDA?
Source: Benzinga
- Executive Warnings: In July 2023, Apple CEO Tim Cook, Nvidia CEO Jensen Huang, and AMD CEO Lisa Su met with CIA and Director of National Intelligence Avril Haines in Silicon Valley, where they were warned that China's military spending could lead to action on Taiwan as early as 2027, indicating a heightened awareness of future geopolitical risks.
- Stagnant Chip Orders: Despite the looming threat, companies like Apple, Nvidia, and AMD did not significantly increase chip orders from U.S. factories, reflecting a cautious approach amid uncertainty that could hinder the recovery of the U.S. semiconductor industry.
- Economic Catastrophe Warning: Treasury Secretary Scott Bessent bluntly stated at the Davos meeting that a blockade of Taiwan would result in an “economic apocalypse,” underscoring the critical role of Taiwan's semiconductor industry in the global supply chain.
- New U.S. Manufacturing Direction: Apple announced it will produce the Mac mini at a new Advanced Manufacturing Center in Houston, Texas, with Cook stating they are excited to accelerate work on advanced AI servers, highlighting the company's commitment to U.S. manufacturing and potential to enhance its competitive position in the global market.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 182.480
Low
200.00
Averages
264.97
High
352.00
Current: 182.480
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Revenue Guidance: The company anticipates $78 billion in revenue for Q1 FY2027, representing a staggering 76.9% increase from Q1 FY2026, indicating robust demand for its Blackwell and Rubin chips and further solidifying its market position.
- Customer Concentration Risk: While Nvidia's top five cloud providers account for over 50% of its data center revenue, analysts project that capital expenditures from these customers will approach $700 billion by 2025, showcasing future growth potential and reducing reliance on a single customer base.
- Investment in Innovation: Nvidia's ongoing investments in AI, including a $10 billion investment in Anthropic and a potential $30 billion investment in OpenAI, demonstrate its critical role in future AI spending, enhancing confidence in its long-term growth prospects.
See More
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- Revenue and Profit Surge: In the fourth quarter, Nvidia reported a revenue of $68 billion and a profit of $42 billion, reflecting double-digit growth driven by strong demand from AI data center customers, which solidifies its leadership in the AI chip market.
- Investor Concerns: Despite robust performance, investors are worried about high levels of AI spending and question whether future earnings will justify current valuations, leading to Nvidia's stock price remaining flat and trading near its lowest levels over the past year.
- Market Positioning: Nvidia's stock is currently considered 'dirt cheap', and the company is well-positioned for long-term growth in the AI sector, although short-term market volatility may persist, prompting investors to carefully assess their entry points.
- Industry Impact: Nvidia's success not only drives its own growth but also fuels investment and technological advancement across the AI industry, and despite facing market uncertainties, it is still viewed as a 'no-brainer buy' in AI investments.
See More
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- Leadership Change: Junyang Lin, the technical lead for Alibaba's Qwen AI project, unexpectedly stepped down, triggering strong reactions from the developer community and marking a significant turning point that could impact future AI model development and market competitiveness.
- Project Impact: Lin joined Alibaba in 2019 and became part of the Qwen team in April 2023; his departure coincides with Alibaba's launch of the Qwen 3.5 open-weight small models, potentially hindering the project's ongoing development and innovation capabilities.
- Community Reaction: Lin's exit is viewed by colleagues as 'the end of an era,' with research scientists and partners expressing gratitude for his contributions, highlighting his central role in advancing Qwen's open-source AI efforts.
- Ecosystem Expansion: Alibaba is expanding its AI ecosystem by unifying the Qwen brand, building developer tools, and investing in its own AI hardware, with nearly 200 million 'one-sentence' orders placed through the Qwen app during the Lunar New Year, indicating strong user demand.
See More
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- Focus on ADP Report: Investors are keenly awaiting the ADP private payroll report set to be released on Wednesday, which is expected to significantly influence market sentiment amid the current economic recovery context.
- Bond Yield Trends: The 10-year Treasury bond yield stands at 4.08%, while the two-year bond yield is at 3.53%, reflecting market expectations regarding interest rate policies, particularly the Fed's potential decision to keep rates unchanged.
- Global Market Impact: Asian markets experienced their steepest losses in nearly a year, with South Korea's Kospi plunging 12% in a single day, which may trigger a ripple effect on global market sentiment and impact investor risk appetite.
See More
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- Investment Review Context: The Committee on Foreign Investment in the US (CFIUS), led by the Treasury, is scrutinizing Tencent's investments in major US video game companies, particularly its 28% stake in Epic Games, due to concerns over potential data security risks for millions of American users.
- Bipartisan Pressure: During Trump's administration, CFIUS raised alarms over Tencent's stakes, while under Biden, officials had differing views, with some advocating for forced divestment and others favoring strict data protection measures to allow Tencent to retain its stakes.
- Military Association Allegations: In the final month of Biden's term, the Pentagon added Tencent to a list of companies allegedly linked to China's military, a claim Tencent denies, which further intensified scrutiny over its investments.
- Tech Product Ban: The US has also imposed bans on Chinese tech products, including home-security cameras and smartwatches, aimed at keeping risky technology off American shelves, with retailers implementing new FCC-supervised screening processes to prevent prohibited products from re-entering the market.
See More
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- Market Confidence Signal: KoGuan plans to buy another 1 million shares of Nvidia to signal support to a nervous market, asserting that AI is not a bubble but merely the beginning, which could positively influence market sentiment.
- Tesla Holdings Dynamics: Although KoGuan expresses skepticism about Tesla's future and plans to pare down his stake by late 2024, he still holds 27.7 million shares, indicating confidence in the company's long-term potential.
- Market Reaction: Following KoGuan's Nvidia purchase, the stock rose 0.7% in premarket trading on Wednesday, while Tesla shares also increased by 0.38%, reflecting a positive market response to his investment decisions.
See More
