AI bubble fears return as Wall Street falls back from short-lived rally

President Trump has imposed limited tariffs on foreign semiconductors, allowing him to take a cut of Nvidia's chip sales to China while delaying a decision on higher taxes for the chip industry, which heavily relies on overseas materials.

The U.S. Commerce Department has eased restrictions, allowing Nvidia to sell its H200 AI chips to approved customers in China, following a significant policy shift initiated by the Trump administration that lifted a previous export ban due to national security concerns. This decision marks a pivotal moment for Nvidia as it re-enters a crucial market after extensive lobbying efforts.

The United States has imposed a 25% tariff on imports of certain advanced semiconductors, a move linked to an agreement allowing Nvidia Corp. to export its H200 artificial intelligence processors manufactured in Taiwan to China. This decision was endorsed by President Donald Trump, marking a significant shift in U.S. technology export policy.

In 2026, significant initial public offerings (IPOs) are anticipated from major tech companies, including SpaceX, OpenAI, and Anthropic, potentially transforming the financial landscape of Silicon Valley and Wall Street. SpaceX is reportedly aiming to raise over $30 billion, with a valuation target of approximately $1.5 trillion, which could make it the largest IPO in history.

Elon Musk is facing backlash over the misuse of Grok, an AI tool that has been implicated in generating sexualized images, prompting investigations by California's attorney general and a firm stance from the UK government against inappropriate content on social media platforms.

AMD and Nvidia are exploring advanced 3D integration techniques that could revolutionize GPU architecture by stacking high-bandwidth memory (HBM) directly on top of the GPU, potentially addressing significant energy and latency issues in AI computing. This innovation is being studied by Imec, which highlights both the promise and challenges of such technology.

Recent vulnerabilities in Python libraries utilized by leading AI and machine learning tools, including those from Nvidia and Salesforce, have been identified and fixed, prompting experts to advise users to implement patches immediately to mitigate risks.

The global music industry achieved a significant milestone in 2025, reaching a total of 5.1 trillion streams, with notable growth in the Christian, rock, and Latin music genres in the United States.