Nvidia has lost its place in the exclusive $3 trillion market cap club, leaving Apple as the only publicly traded company still holding that valuation.

The decline comes as Nvidia’s stock tumbled in the wake of its latest earnings report, sparking renewed concerns over whether the chipmaker’s dominance in the AI industry is beginning to face real challenges.

After Nvidia’s shares dropped 8.5% on Thursday, the company saw its market capitalization shrink to $2.94 trillion, wiping out an estimated $273 billion in value in just one day. Although the stock rebounded slightly on Friday, gaining about 1%, it was not enough to restore Nvidia’s previous position above the $3 trillion mark.

This steep decline highlights that Nvidia is not yet free from the lingering effects of DeepSeek’s emergence, a development that has sent ripples through the semiconductor industry and significantly impacted Nvidia’s stock in recent months.

The growing influence of DeepSeek, an AI research and semiconductor company backed by China’s leading tech giants, has raised concerns over Nvidia’s long-term dominance in the AI chip sector.

DeepSeek, which made headlines late last year, has been aggressively developing high-performance AI chips that are being positioned as direct competitors to Nvidia’s GPUs. The company, reportedly supported by Alibaba, Tencent, and other Chinese investors, aims to create advanced AI processing units that bypass U.S. sanctions on semiconductor exports to China.

As a result, the emergence of DeepSeek has been viewed as a potential game-changer in the AI and semiconductor industries, as it introduces a powerful new competitor into a market that Nvidia has long dominated. Investors reacted swiftly when news of DeepSeek’s advancements began circulating in late 2024, leading to a brief tech stock sell-off that affected major U.S. chipmakers, including Nvidia and AMD.

For Nvidia, this was particularly alarming given that China accounts for a significant portion of its AI chip sales. The company has been struggling with export restrictions imposed by the U.S. government, limiting its ability to sell its most advanced GPUs to Chinese firms. DeepSeek’s rapid progress presents an additional challenge, as it reduces China’s dependence on Nvidia’s products altogether.

The fear that DeepSeek could capture a sizable market share in China has weighed heavily on Nvidia’s stock, contributing to its recent volatility. Analysts have pointed out that while Nvidia still leads in terms of AI chip performance, the geopolitical landscape and increasing competition from Chinese firms could threaten its long-term growth prospects.

Even before the DeepSeek threat materialized, Nvidia had been facing mounting concerns from investors over several key issues, including:

1. The potential for stricter U.S. export controls on AI chips, which could further limit Nvidia’s ability to sell to key international markets.
2. Growing fears that AI models are becoming more efficient, reducing the need for the most powerful GPUs that Nvidia specializes in producing.
3. Worries about a slowdown in AI infrastructure investment, particularly from large cloud service providers like Microsoft, Google, and Amazon, which account for a significant chunk of Nvidia’s revenue.

These concerns have led to increased profit-taking among investors, as many seek to lock in gains after Nvidia’s historic stock surge in 2023 and 2024. The latest earnings report, while strong, failed to fully ease worries about the company’s future growth trajectory.

Despite the stock decline, Nvidia’s latest earnings report was solid, with the company delivering results that exceeded analyst expectations.

Revenue for the most recent quarter came in at $39.33 billion, marking a 78% increase from the previous year. Nvidia’s data center revenue alone surged 93%, reaching nearly $36 billion, a reflection of the continued demand for its AI chips.

CEO Jensen Huang reassured investors that the company’s outlook remains strong, particularly as next-generation AI models require even more processing power. He explained that AI models are evolving to think and reason step by step, a process that demands significantly higher computational capabilities.

“The amount of computation necessary to do that reasoning process is 100 times more than what we used to do,” Huang told CNBC in an interview.

Additionally, Nvidia confirmed that production issues for its upcoming Blackwell chip have largely been resolved, setting the stage for a strong start to fiscal 2026. However, even with these reassurances, the stock continued to slide, underscoring the broader concerns hanging over the semiconductor industry.

Semiconductor Challenges and AMD’s Struggles

Nvidia’s struggles are not occurring in isolation. The broader semiconductor sector has been under pressure, with other major chipmakers also experiencing significant stock declines.

AMD, one of Nvidia’s biggest competitors, has been particularly hard hit. The company’s stock has dropped over 10% this week and is now down more than 13% since early February. The sell-off was triggered by a disappointing fourth-quarter earnings report, which showed that AMD’s data center revenue fell short of expectations.

The weaker-than-expected results have fueled speculation that AMD is struggling to compete with Nvidia in the AI chip market, further reinforcing Nvidia’s dominance in the sector. However, given the rapid developments in AI and the emergence of new competitors like DeepSeek, Nvidia’s position at the top is no longer as secure as it once was.

However, Nvidia’s stock is still worth five times more than it was two years ago, at the start of the generative AI boom.

While the short-term sell-off reflects concerns about competition, geopolitical risks, and slowing AI investment, many analysts believe that Nvidia remains well-positioned to capitalize on the continued expansion of AI technologies.

Still, the question remains: Can Nvidia quickly bounce back and reclaim its $3 trillion valuation, or is this the beginning of a more prolonged correction?

MTN Nigeria has reported a staggering N400.44 billion loss after tax for the year ended December 31, 2024, marking a 192% increase from the N137.02 billion loss recorded in 2023.

The telco attributed this loss primarily to the devaluation of the naira, which caused a sharp spike in foreign exchange (forex) losses, significantly impacting its financial position.

According to its audited financial statements released on Thursday, forex losses surged to N925 billion in 2024, up from N740 billion in the previous year. This emanated from the depreciation of the naira, which fell from N907/$ at the end of 2023 to N1,535/$ by December 2024, making it more expensive for MTN to service its foreign-denominated obligations, such as network expansion costs and equipment purchases.

However, MTN Nigeria’s revenue grew by 36% to N3.36 trillion in 2024, up from N2.47 trillion in 2023, driven by continued demand for data and digital services. But the mounting forex losses overshadowed these gains, leaving the company in a negative retained earnings position of N607.5 billion as of December 2024.

Telecom Sector Bedeviled by Nigeria’s Harsh Economic Realities

For years, the telecommunications sector has been Nigeria’s economic cash cow, contributing significantly to the Gross Domestic Product (GDP) and serving as one of the most stable industries in the country. However, the sector has struggled under Nigeria’s harsh economic realities, facing challenges such as:

• Soaring operational costs due to the high cost of diesel to power base stations amid Nigeria’s unstable electricity supply.
• Forex volatility has significantly increased the cost of importing telecom equipment.
• Regulatory constraints, particularly restrictions on tariff hikes, limited the operators’ ability to adjust prices in line with inflation and currency depreciation.

These challenges have led to huge financial losses for telecom operators, with MTN Nigeria being the most affected due to its size, scale of operations, and foreign currency exposure.

Delayed Tariff Adjustment

The Nigerian Communications Commission (NCC), which regulates the telecom sector, had long resisted allowing operators to increase tariffs despite repeated appeals from telcos. Until recently, telecom operators struggled to recover their costs, as their revenues were not keeping pace with the soaring expenses driven by inflation, forex devaluation, and energy costs.

After years of lobbying, the NCC finally approved a 50% upward review in call, data, and SMS tariffs, granting operators some relief to offset their rising costs.

The tariff hike, which was officially implemented in early 2024, marks a major shift in the industry and is expected to significantly reduce losses for telecom companies.

According to industry analysts, this tariff review, coupled with internal cost-cutting measures and operational adjustments, should help MTN Nigeria and other telcos stabilize their financials and return to profitability.

MTN Nigeria’s CEO, Karl Toriola, expressed confidence in the company’s ability to bounce back, citing the resilience of its business model and recent regulatory approvals as key factors that will aid recovery.

“We are encouraged by the resilience of our business in FY 2024, which reflects our strong commitment to driving growth and managing costs. Despite facing significant macroeconomic headwinds, including record-high inflation, as well as ongoing currency and energy price volatility, we remained focused on executing our strategy and creating long-term value for our stakeholders,” he said.

Toriola also acknowledged the recent tariff adjustments as a positive step: “We are grateful to the authorities for the recent approval of tariff adjustments, which are essential for our industry’s sustainability and crucial for addressing our negative capital position,” he said.

While MTN Nigeria’s revenue growth indicates that demand for telecom services remains strong, industry analysts believe that the company’s future profitability will depend largely on the following issues:

• Impact of the New Tariff Structure – The approved 50% tariff hike is expected to boost revenues in the coming quarters, but its effectiveness in fully offsetting forex losses remains to be seen.
• Operational Efficiency – The company will need to cut costs and improve efficiency to maximize the impact of the new tariffs.
• Government Policies – The regulatory environment will continue to play a major role in the telco’s financial health, especially regarding future price adjustments and forex availability.

As I always remind young people, when a company says “Welcome to the family”, do not be confused because no company can be your family. Yes, you’re nobody’s kid at work. The rule is clear: get your job done, get paid etc but if necessary, the mission can move on without you. A real family will not throw you under the bus because of missed earnings or due to a recession! That takes me to Ukraine whose president is learning hard on the job. Yes, nobody really cares because the world does not care.

Read Trump after today’s meeting with Ukraine’s leader…

“We had a very meaningful meeting in the White House today. Much was learned that could never be understood without conversation under such fire and pressure. It’s amazing what comes out through emotion, and I have determined that President Zelenskyy is not ready for Peace if America is involved, because he feels our involvement gives him a big advantage in negotiations. I don’t want advantage, I want PEACE,” Trump.

“He disrespected the United States of America in its cherished Oval Office. He can come back when he is ready for Peace.”

A meeting between Ukrainian President Volodymyr Zelensky, U.S. President Donald Trump, and U.S. Vice President JD Vance turned contentious at the White House. Trump criticized Zelensky for perceived disrespect and lack of gratitude for U.S. support in the Ukraine-Russia conflict, while Vance questioned Zelensky’s diplomatic approach. The discussions highlighted tensions over U.S. aid, military strategy, and diplomatic respect.

JD Vance and Trump just put Zelensky in his place. Wow. Watch this.

pic.twitter.com/zndgjKEPKz

— End Wokeness (@EndWokeness) February 28, 2025

Comment on Feed

Comment 1: I totally agree with you, success in both business and geopolitics is driven by value, not sentiment. Companies and nations prioritize strategy over emotions—no one pauses for those who don’t add value. Stay relevant, adaptable, and in control of your own narrative, because in the end, only results secure your place at the table.

Lafarge Africa Plc has released its financial results for the year ending December 31, 2024, reporting a pre-tax profit of N152.2 billion, a significant 93.27% increase compared to the N78.7 billion recorded in 2023.

This performance comes despite escalating production costs, rising taxation, and economic uncertainties that have affected Nigeria’s business environment.

The company’s revenue surged by 71.83%, reaching N696.7 billion, compared to N405.5 billion in the previous year. Cement sales contributed 97% of total revenue, highlighting Lafarge’s dominance in Nigeria’s construction sector. Additionally, total assets grew by 45.37% to N990.5 billion, reinforcing the company’s financial strength.

This report comes at a time when the Nigerian government is urging cement manufacturers to lower cement prices to N7,000 per bag, citing better FX rates. However, manufacturers, including Lafarge and its competitors, have pushed back against these calls, citing an unfriendly business climate, rising production costs, and heavy taxation as reasons for the persistently high price of cement.

The Nigerian cement industry has remained a key driver of economic growth and infrastructure development, contributing significantly to GDP and employment. However, the sector has struggled under the weight of rising input costs, energy expenses, and multiple taxes imposed by the government.

The government’s recent appeal to cement manufacturers to bring down prices to N7,000 per bag has sparked debate. While authorities argue that lower prices will ease the burden on citizens and stimulate construction activity, cement manufacturers insist that the current economic environment does not support such price reductions.

Aliko Dangote, chairman of Dangote Cement, a key rival of Lafarge Africa, recently detailed the tax burden faced by cement manufacturers, stating that for every N1 generated in revenue, 52 kobo is paid in taxes to the government. He highlighted the following taxes affecting the industry:

• 30% corporate tax
• 7.5% value-added tax (VAT)
• 2% education tax
• 1% health tax
• 10% withholding tax on dividends paid to shareholders

According to Dangote, these taxes, coupled with soaring energy costs and foreign exchange volatility, have significantly eroded profit margins, making it difficult for companies to lower cement prices without financial losses.

Financial Performance Breakdown

Lafarge Africa’s revenue of N696.7 billion in 2024 represents its highest earnings on record, reflecting the company’s ability to expand market share and sustain demand for its products. However, the cost of sales surged by 76.09%, reaching N350 billion, driven by higher costs for fuel, power, and raw materials.

Fuel and power expenses alone amounted to N158.7 billion, while raw materials and consumables cost the company N73.4 billion. These rising expenses have forced Lafarge to adjust pricing strategies to maintain profitability, further justifying the company’s reluctance to implement government-mandated price cuts.

Despite higher costs, gross profit increased by 67.72% to N346.7 billion, compared to N206.7 billion in 2023. However, operational expenses also saw a sharp rise.

Selling and distribution expenses climbed to N120.4 billion, marking a 54.28% year-over-year increase, largely due to higher transportation and logistics costs. Administrative expenses also rose to N40.1 billion, up from N27.5 billion the previous year, mainly driven by technical service fees and staff-related expenses.

Lafarge recorded a substantial increase in other income, which surged by 706.05% to N7.1 billion, compared to N891.7 million in 2023. This growth was largely attributed to the reversal of an impairment charge on property, plant, and equipment valued at N4.6 billion, along with a government grant of N1 billion.

However, finance income declined by 55.70%, falling from N4.6 billion in 2023 to N2 billion in 2024, reflecting lower returns on cash reserves. At the same time, finance costs surged by 63.76% to N42.5 billion, driven by higher interest rates and debt servicing costs.

Nonetheless, pre-tax profit soared by 93.27% to N152.2 billion, demonstrating Lafarge Africa’s ability to maintain profitability despite economic hurdles.

Strong Asset Growth and Financial Position

Lafarge Africa’s total assets increased to N990.5 billion, a 45.37% rise from the N681.3 billion reported in 2023. Non-current assets climbed to N576.5 billion, reflecting investments in property, plant, and equipment, while current assets grew to N414 billion, up from N239 billion in the prior year.

Within its asset portfolio, cash and cash equivalents stood at N237.8 billion, providing the company with a strong liquidity position. Inventory levels also rose significantly, with spare parts accounting for N52.5 billion and finished goods valued at N25 billion.

Lafarge Africa’s retained earnings increased by 28.29% to N315.5 billion, reflecting its commitment to long-term financial stability and reinvestment in operations.

Lolu Alade-Akinyemi, CEO of Lafarge Africa, expressed confidence in the company’s financial performance and strategic direction, emphasizing the company’s ability to navigate a challenging business environment while delivering record-breaking revenue and profits.

“I am excited to report our record-breaking revenue of N697 billion and PAT of N100 billion for the full year 2024, a testament to our strong market positioning, operational efficiency, cost management, and dedication to value creation.

“Despite a challenging business environment, we have remained resilient, leveraging innovation and green growth in line with our sustainability ambitions, while also delivering value to our stakeholders,” he said.

Dividend Declaration

As part of its commitment to rewarding investors, Lafarge Africa declared a final dividend of 120 kobo per unit of 50 kobo ordinary shares, subject to shareholders’ approval and tax deductions. The dividend will be payable to shareholders whose names appear in the Register of Members as of March 28, 2025.

This dividend declaration reflects Lafarge’s financial strength and its ability to maintain investor confidence despite broader economic pressures.