halbergman/E+ via Getty Images
Listen below or on the go via Apple Podcasts and Spotify
Nvidia scores DC lobbying victory with CEO Jensen Huang meeting with Trump. (0:15) Snowflake shares hit as guidance disappoints. (1:20) Insta and Facebook start deactivating Aussie accounts. (2:37)
The following is an abridged transcript:
Nvidia (NVDA) is on the verge of securing a major lobbying victory in Washington, with CEO Jensen Huang personally making the case on Capitol Hill.
Bloomberg reports that lawmakers left out a measure from must-pass defense legislation that would have limited Nvidia’s ability to sell advanced AI chips to China and other adversary nations.
The proposal, known as the GAIN AI Act, would require chipmakers like Nvidia and AMD (AMD) to prioritize U.S. customers for advanced AI chips over buyers in embargoed countries.
Lawmakers had sought to attach the measure to the annual defense policy bill, which is set to be released today, but a source told Bloomberg it did not make it into the bill
At the same time, President Donald Trump praised Nvidia CEO Jensen Huang, who was in Washington Wednesday. Trump called him a “smart man,” crediting him with doing an “amazing job” at the company.
Huang returned the praise, saying Trump “stuck his neck out” by making energy a priority for economic growth.
On “The Joe Rogan Experience,” Huang said the recent boom in U.S. AI would not have been possible without Trump’s push for energy production.
“Without energy growth, we can have no industrial growth… and that saved the AI industry,” he said.
Snowflake (SNOW) shares are tumbling premarket as investors focused on soft fourth-quarter guidance, overshadowing an otherwise solid headline beat.
The data cloud company reported 29% year-over-year revenue growth to $1.21 billion, above expectations, with adjusted EPS of $0.35 also topping consensus. Margins and free cash flow improved, and key metrics like remaining performance obligations and net retention remained strong.
But outlook disappointed.
Snowflake guided Q4 product revenue to $1.195B to $1.2B, only fractionally above estimates, and below what investors had hoped for given the market’s pivot to AI-driven growth.
For the full fiscal year, product revenue guidance was increased slightly to $4.45B from $4.4B, just ahead of consensus — reinforcing concerns that growth is stabilizing rather than accelerating.
Snowflake is seeing the same post-earnings reaction as many AI trade names — where “good” isn’t good enough when traders are pricing in “great.” SNOW trades at 220x forward earnings, earning an F for Valuation from Seeking Alpha’s Quant Rating.
Still, Snowflake is leaning hard into AI.
The company announced expanded partnerships with Anthropic (ANTHRO), Accenture (ACN), and Amazon Web Services (AMZN) — including a multi-year, $200M deal with Anthropic to bring Claude models to Snowflake.
And Meta’s (META) Facebook and Instagram have started deactivating accounts of users under 16 in Australia, a week before the country’s unprecedented teen social media ban takes effect.
The platforms are also blocking new account creation for under-16 users. Roughly 150,000 Facebook accounts and 350,000 Instagram accounts are expected to be impacted.
Australia’s eSafety Commissioner Julie Inman Grant, initially questioned the “blunt-force” approach, noting years of incremental regulation.
But she said at the Sydney Dialogue summit: “I think we’ve reached a tipping point, where something more forceful needed to be done.”
Grant described Australia’s move as “the first domino,” which she said explains why social media companies pushed back. Malaysia is planning a similar ban next year.
Other platforms that must comply include Snapchat (SNAP), TikTok, Twitch, X, YouTube (GOOG)(GOOGL), Kick, and Reddit (RDDT). Non-compliance could lead to fines of up to US $33 million.
Now Here’s What’s Trending on Seeking Alpha:
Paramount Skydance ups its breakup fee to $5 billion in its bid for Warner Bros. Discovery.
Palantir is teaming up with Nvidia, CenterPoint Energy to speed AI infrastructure buildout.
Trump aides discuss tapping Treasury Secretary Scott Bessent to also lead the National Economic Council.
Catalyst Watch:
- IMAX Corporation (IMAX) is holding its investor day to detail its long-term growth plan across its global content portfolio, system network and technology platform.
In premarket trading, stock index futures (SPX) (US100:IND) (INDU) are little changed, while Treasury yields are moving higher.
On the economic calendar
8:30 am Weekly Initial Jobless Claims
