Category: 3. Business

NVIDIA’s recent circular deals: fueling growth or bubble risk?

In recent months, NVIDIA has deepened its AI ecosystem through a series of financing and partnership arrangements often described as ‘circular deals’. These involve NVIDIA investing in key customers and partners who, in turn, commit to significant graphics processing unit (GPU) purchases.

These agreements have locked in billions of dollars in forward revenue, reinforcing NVIDIA’s dominance in the supply chain and accelerating the buildout of next-generation data centres. CEO Jensen Huang has characterised these moves as strategic bets on a ‘multitrillion-dollar AI future’, ensuring NVIDIA remains at the centre of global compute infrastructure.

However, critics argue these arrangements resemble vendor financing practices from the dot-com era, where inflated commitments masked underlying demand weaknesses. If AI adoption slows or macroeconomic conditions deteriorate, these interlocking dependencies could amplify risks, potentially triggering defaults or write-downs across the ecosystem.

The scale of these deals is significant. For example, OpenAI has committed more than $1 trillion in AI infrastructure since mid-2025, much of which loops back to NVIDIA through direct investments and indirect chip purchases by partners such as Oracle and CoreWeave.

Proponents, including CoreWeave CEO Mike Intrator, insist there is ‘nothing circular’ about these transactions, arguing that hyperscalers and AI labs are simply meeting explosive compute demand with locked-in supply. Critics counter that the money trail often circles back to NVIDIA itself, artificially propping up sales figures and echoing the vendor-financed bubble of the early 2000s. Time will tell which view proves correct.

Is NVIDIA a buy or a sell?

NVIDIA has a TipRanks Smart Score of ‘9 outperform’ and is rated as a ‘strong buy’ by analysts, with 37 ‘buy’, 1 ‘hold’ and 1 ‘sell’ recommendation as of 11 November 2025.

NVIDIA TipRanks smart score

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Operations: Nihon Dengi generates revenue primarily from designing and constructing automatic control systems. The company’s market cap stands at ¥101.49 billion.

Nihon Dengi, a promising player in the building industry, has shown impressive financial health with earnings growth of 52.2% over the past year, outpacing the industry’s 1.9%. This debt-free company trades at an attractive 30.6% below its estimated fair value and boasts high-quality earnings. Recent guidance forecasts net sales of ¥46 billion (US$), with operating profit expected to hit ¥10.5 billion (US$). However, dividends have decreased to ¥71 per share from last year’s ¥81 per share. Despite this cutback, inclusion in the S&P Global BMI Index underscores its growing market recognition and potential for future growth.

Simply Wall St Value Rating: ★★★★★★

Overview: Greatek Electronics Inc., along with its subsidiaries, offers semiconductor assembly and testing services across Taiwan, Asia, America, Europe, and Africa with a market capitalization of NT$44.03 billion.

Operations: The primary revenue stream for Greatek Electronics comes from its semiconductor segment, generating NT$16.36 billion.

Greatek Electronics, a nimble player in the semiconductor sector, shows promising attributes despite some challenges. With earnings growth of 0.8% over the past year, it outpaced the industry’s -2.3% performance, highlighting its resilience. The company is debt-free and boasts high-quality earnings with a favorable price-to-earnings ratio of 18.4x compared to the Taiwan market’s 20.7x, indicating good value potential. Recent quarterly sales hit TWD 4,250 million from TWD 3,860 million last year; however, net income for nine months fell slightly to TWD 1,811 million from TWD 1,918 million previously—showcasing mixed results but maintaining profitability.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include SZSE:002255 TSE:1723 and TWSE:2441.

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(Bloomberg) — The rally in global stocks on optimism about ending the record-long US government shutdown paused in Asia. Chinese shares underperformed.

MSCI’s regional stock gauge fell 0.3%, erasing earlier gains of up to 0.5%, with financials leading losses. Sony Group Corp. jumped more than 5% after raising its profit outlook. China’s main stock benchmark declined 0.7%.

US equity-index futures dropped 0.1% after the S&P 500 Index rallied Monday on signs a deal to end the government shutdown was close. European stock futures also pared gains. Separately, President Donald Trump floated the idea of paying a $2,000 tariff “dividend” to American citizens.

The pause in the rally came after cross-asset investors had returned to riskier areas of the market after the recent selling in technology stocks, driven by concerns over lofty valuations. Many were betting that reopening the US government will restore the flow of key economic data on jobs and inflation, providing greater clarity on the Federal Reserve’s policy path.

“Conviction remains tentative,” said Hebe Chen, an analyst at Vantage Markets in Melbourne. “While investors welcome the ‘back-to-business’ tone, a month-long data blackout means the next wave of US economic releases could deliver fresh surprises — keeping markets on alert, even amid the optimism.”

A record-setting 41-day US government shutdown is on a path to end as soon as Wednesday after the Senate passed a temporary funding measure backed by a group of eight centrist Democrats. The Senate’s 60-40 vote Monday came amid escalating flight disruptions, food aid delays and frustrations in a federal workforce that has mostly gone without pay for more than a month.

While investors piled in the riskier corners of the market, bonds declined Monday. Treasuries are also facing a demand test from this week’s auctions totaling $125 billion. The US bond market is closed worldwide Tuesday for Veterans Day.

Monday’s optimism in equities had spilled over into other asset classes, with a gauge of commodity prices climbing to its highest level since August 2022. Gold and Bitcoin extended gains, while a gauge of the dollar inched higher.

Aluminum advanced alongside copper and other industrial metals. Aluminum, which reached a three-year high a week ago, has been one of the strongest performers on the London Metal Exchange in recent months, with investors weighing the impact of Chinese capacity curbs at a time of resilient demand.

Gold rose for a third day to trade above $4,130 an ounce on expectations that the Fed will reduce interest rates further. Brent crude was little changed near $64 a barrel.

Elsewhere, Japan’s 30-year government bond auction Tuesday saw demand that was weaker than the 12-month average, as renewed concerns about Prime Minister Sanae Takaichi’s fiscal policy drove investor caution. Takaichi had earlier said she aims to use her first stimulus package to jump-start the economy and initiate a new growth strategy through investment in key industries.

Shares in India edged lower even as Trump indicated he would reduce the tariff rate on the country’s exports “at some point,” and that the US was “pretty close” to a trade deal with New Delhi.

Corporate News:

Warren Buffett, the billionaire investor who turned an aging textile mill into a conglomerate, said he’s “going quiet,” marking the end of an era for one of the business world’s most-watched investing gurus. CoreWeave Inc. lowered its annual revenue forecast after suffering a delay fulfilling a customer contract, marking a setback for a company that is racing to keep up with the artificial intelligence boom. The European Commission is exploring ways to force European Union member states to phase out Huawei Technologies Co. and ZTE Corp. from their telecommunications networks. Xpeng Inc. shares surged to their highest level in eight months, amid growing optimism over the Chinese electric carmaker’s progress in technologies including humanoid robots. Shares of SoftBank Group Corp. rose in Japan ahead of the company’s earnings. The company is expected to log its third straight quarterly profit when it announces earnings later Tuesday. Some of the main moves in markets:

Stocks

S&P 500 futures fell 0.1% as of 2:17 p.m. Tokyo time Nikkei 225 futures (OSE) fell 0.6% Japan’s Topix fell 0.2% Australia’s S&P/ASX 200 fell 0.2% Hong Kong’s Hang Seng fell 0.4% The Shanghai Composite fell 0.4% Euro Stoxx 50 futures rose 0.4% Currencies

The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1563 The Japanese yen was little changed at 154.24 per dollar The offshore yuan was little changed at 7.1247 per dollar Cryptocurrencies

Bitcoin fell 0.2% to $105,374.89 Ether rose 0.6% to $3,562.94 Bonds

The yield on 10-year Treasuries was little changed at 4.12% Japan’s 10-year yield declined one basis point to 1.685% Australia’s 10-year yield declined one basis point to 4.39% Commodities

West Texas Intermediate crude fell 0.3% to $59.95 a barrel Spot gold rose 0.6% to $4,140.84 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Abhishek Vishnoi and Winnie Hsu.

©2025 Bloomberg L.P.

SINGAPORE, Nov 11 (Reuters) – Chinese provincial government-backed refiner Yanchang Petroleum is avoiding Russian oil in its latest crude oil tender for deliveries between December and mid-February，two traders with knowledge of the matter said on Tuesday.

Yanchang, located in the landlocked northern province of Shaanxi, has been a regular buyer of Russian oil, typically taking in one shipment per month, usually Far East export grade ESPO blend or Sokol, one of the traders said.

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Yanchang did not immediately respond to a request for comment.

China and India are Russia’s top oil export markets.

Yanchang, which can process 348,000 barrels of crude per day, is one of the largest refiners in inland China and is entitled to an annual import quota of 3.6 million metric tons or 26 million barrels.

The refiner typically receives imported crude from Tianjin port, near Beijing, where the oil is shipped to it by rail.

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The U.S. Food and Drug Administration has granted Fast Track Designation to a new drug combination for metastatic colorectal cancer, following encouraging results from a clinical trial led in part by the University of Oklahoma Health Stephenson Cancer Center. The treatment offers potential hope for patients whose tumors lack a key DNA repair protein called ATM.

The drug combination pairs alnodesertib, a targeted therapy that blocks cancer cells’ ability to repair DNA damage, and a low dose of irinotecan, a chemotherapy drug that causes that damage. Together, the drugs exploit a weakness in cancer cells that are already deficient in the ATM protein.

In the trial, a substantial number of patients with ATM-deficient tumors who received the treatment experienced reductions in the size of their cancers.

“We consider this a triple hit because we target the cancer in three different ways. We target the right tumor (those with ATM deficiency) and then we attack it with two treatments that work synergistically, one that damages the DNA and the other that prevents the cancer cell from repairing the DNA and surviviving,” said Susanna Ulahannan, M.D., OU Health oncologist and associate professor in the OU College of Medicine, who was the national principal investigator for the cohort of colorectal cancer patients. “The treatment responses we have seen are very exciting, and they are in a patient group that has very few options.”

Like other forms of chemotherapy, irinotecan damages the DNA of cancer cells. Normally, a protein called ATR would try to repair that damage before the cells divide again. But alnodesertib, an ATR inhibitor, blocks the repair signal, preventing cancer cells from recovering and multiplying. This mechanism is particularly effective in cancers that already have defective repair systems, such as those lacking ATM.

The drug combination’s Fast Track Designation is for patients who have already received at least two rounds of other colorectal cancer treatments that have not been effective. Alnodesertib is from Artios Pharma Limited and was tested in the STELLA clinical trial.

According to the American Cancer Society, more than 154,000 people will be diagnosed with colorectal cancer in 2025, and 52,000 people are expected to die from the disease. The lifetime risk of developing colorectal cancer is 1 in 24 for men and 1 in 26 for women.

We have had only two good treatment options for metastatic colorectal cancer, so there is a very high unmet need. While colorectal cancer overall is declining, it is increasing in people under 50. We are seeing young, otherwise healthy patients who have limited treatment options. This clinical trial has produced very promising results.”

Susanna Ulahannan, M.D., OU Health oncologist and associate professor, OU College of Medicine