Welcome back, financial enthusiasts — here’s today’s market recap.

Nvidia has successfully re-entered the Chinese AI market through a revenue-sharing agreement with the U.S. government, unlocking a potential $50 billion market opportunity.

This deal not only solidifies Nvidia’s market position but also sets a precedent for navigating complex trade relations in the tech sector. How will this agreement influence other tech companies seeking entry into restricted markets?

In today’s financial recap:

  • Nvidia reclaims China AI market with landmark deal

  • Buffett realigns portfolio, shifting from tech to healthcare

  • Constellation Energy & Meta power nuclear expansion

  • GitLab and AWS deepen DevSecOps collaboration

Nvidia Reclaims China AI Market with Landmark Deal

The TradeWatch: Nvidia has struck a unique revenue-sharing agreement with the U.S. government, agreeing to allocate 15% of its China-based AI chip sales to secure crucial export licenses, effectively reopening access to a $50 billion market and solidifying its market leadership.

Unpacked:

  • Nvidia’s strategic agreement with Washington allows it to penetrate the vital Chinese market with its H20 chips, turning a potential setback into an opportunity to dominate one of the world’s largest AI markets despite recent policy constraints.

  • Nvidia’s sales in China represent a significant piece of its overall revenue, with CEO Jensen Huang estimating the AI opportunity in China to be worth as much as $50 billion, making this deal crucial for sustaining Nvidia’s growth and preventing rivals from gaining ground Chinese Market.

  • Analysts are projecting substantial growth for Nvidia, with potential to reach a $6 trillion market cap by 2027, contingent on sustained revenue growth and continued leadership in the AI infrastructure market cap.

Bottom line:

This deal helps Nvidia access a critical market while setting a precedent for navigating complex trade relations. This positions Nvidia for durable growth in the global AI infrastructure market, which should increase investor confidence as this provides revenue assurances.

Buffett Realigns Portfolio, Dumps Tech and Banks for Healthcare

The TradeWatch: Warren Buffett’s Berkshire Hathaway is selling portions of its Apple and Bank of America holdings, while significantly increasing its stake in UnitedHealth Group, signaling a shift amid market uncertainties.

Unpacked:

  • Berkshire Hathaway is decreasing its positions in Apple and Bank of America amid geopolitical and trade uncertainties.

  • Buffett’s Berkshire initiated a $1.57 billion position in UnitedHealth Group, the nation’s largest healthcare insurer, after its stock declined by 46% this year due to sector-specific challenges and a DOJ criminal investigation.

  • UnitedHealth revised its full-year outlook down to $16 adjusted earnings per share, primarily due to higher medical costs, but management still projects double-digit revenue growth in 2025.

Bottom line: This move reflects a strategic adjustment ahead of Buffett’s approaching CEO transition, emphasizing value investing in a currently challenged healthcare sector. The shift may signal potential opportunities for value investors as Berkshire increases its position size in healthcare and decreases its position size in banks and tech.

Constellation Energy & Meta Power Nuclear Expansion

The TradeWatch: Constellation Energy (CEG) and Meta announced a 20-year Power Purchase Agreement, where Constellation will supply Meta’s data centers with nuclear energy from the Clinton Clean Energy Center. This agreement facilitates nuclear expansion and supports Meta’s commitment to clean energy.

Unpacked:

  • Constellation Energy will supply Meta’s data centers with power from the Clinton Clean Energy Center starting in 2027, supporting Meta’s clean energy goals and enhancing grid reliability.

  • The deal enables a 30-megawatt capacity expansion at the Clinton facility, ensuring reliable and low-cost power to the local grid for decades to come.

  • Driven by rising electricity demand from AI, electric vehicles, and industrial growth, Constellation Energy reported adjusted operating earnings of $1.91 per share in Q2 2025, surpassing analyst expectations.

Bottom line: This agreement highlights the growing convergence of tech and sustainable energy, signifying nuclear energy’s increasing role in powering data centers and supporting the energy transition. This also shows Constellation Energy’s ability to leverage AI to boost grid efficiency and reduce costs, positioning it as a leader in the evolving energy landscape.

GitLab and AWS Deepen DevSecOps Collaboration

The TradeWatch: GitLab and Amazon Web Services have signed a three-year strategic collaboration agreement to expand GitLab’s secure, compliant DevSecOps platform within AWS regions, focusing on regulated industries and public sector clients.

Unpacked:

  • GitLab’s collaboration agreement with AWS expands access to GitLab Dedicated, which is a single-tenant DevSecOps platform hosted by GitLab within customer-selected AWS regions.

  • The collaboration aims to simplify software delivery by consolidating multiple development and security tools into one integrated platform, reducing operational complexity, speeding up delivery pipelines, and enhancing governance.

  • This agreement addresses strict compliance requirements such as data residency, network isolation, and private networking for regulated industries and the public sector.

Bottom line: This collaboration underscores the growing importance of secure and compliant DevSecOps solutions in regulated industries. By integrating GitLab’s platform with AWS, organizations gain a streamlined approach to software delivery that enhances both security and efficiency.

The Shortlist

  • 2 Tech Stocks With More Potential Than Any Cryptocurrency have emerged as promising alternatives in the current digital asset landscape, suggesting a powerful shift in investment strategies.

  • Amazon.com, Inc. Positioning Itself as a key player in retail and technology, with analysts expressing bullish sentiments regarding its stock potential.

Cheers,

— Michael & the TradeWatch.io editorial team