Quick Summary Nvidia posted a 75.2% adjusted gross margin , among the highest in Big Tech AI hyperscalers plan US$650B capex in 2026 , much flowing to Nvidia Rivals like AMD, Alphabet and Amazon are gaining traction Long-term margin sustainability remains the key investor question Margins Steal the Show While investors already expected strong demand, NVIDIA Corp surprised with something even more impressive: Adjusted gross margin of 75.2% , the highest since late 2024 — and management expects similar levels next quarter. For a nearly US$5 trillion company , that margin signals extraordinary pricing power in AI hardware. AI Spending Wave Still Intact AI hyperscalers are forecasting ~US$650 billion in capex for 2026 , up roughly 60% from 2025. Nvidia remains the primary beneficiary as demand for data centre GPUs continues to surge. But maintaining 75% margins depends on two big factors: 1️⃣ Supply Constraints Rising memory costs remain a ris...
Quick Summary
Europe’s new car registrations fell 3.5% in January
France and Germany led the decline
EV sales rose 14%, plug-in hybrids jumped nearly 30%
Chinese brands now account for ~11% of electrified car sales
Overall Market: Growth Streak Ends
European new-vehicle registrations dropped to 961,382 units in January, breaking a six-month growth streak, according to the European Automobile Manufacturers’ Association.
Biggest drags:
Germany (Europe’s largest car market, ~22% share)
France
Meanwhile:
Sales rose in the UK and Italy
Weak consumer confidence, high car prices and rising unemployment — especially in Germany — are weighing on demand.
EVs Remain the Bright Spot
Despite the broader decline, electrified vehicles continued gaining traction:
Fully electric vehicles (EVs): +14% YoY
Plug-in hybrids: +~30% YoY
EV sales grew strongly in:
Germany
Italy
Spain
France
In the UK, hybrid sales surged nearly 50%, though battery-only EVs remained flat.
Key takeaway: Electrification is cushioning the downturn in overall auto demand.
Policy Tailwinds & Chinese Competition
Germany introduced a €3 billion EV subsidy program targeting low- and middle-income buyers, potentially boosting demand further.
The scheme is open to all manufacturers — including Chinese brands such as:
BYD Co.
MG (SAIC-owned)
Chinese automakers now account for nearly 11% of electrified sales in Europe, and analysts expect their market share to rise as China exports excess production capacity.
Automakers Adjust EV Strategy
European carmakers are recalibrating aggressive EV plans:
Stellantis NV booked €22.2 billion in writedowns tied to unprofitable EV projects
Volkswagen AG and Dr Ing hc F Porsche AG pivoted toward expanding plug-in hybrid lineups
Audi plans a new entry-level electric hatchback launch later this year
Automakers are balancing:
EV transition costs
Consumer affordability
Competitive pressure from China
Market Leaders in Focus
Major European automakers affected include:
Volkswagen AG
Stellantis NV
Bayerische Motoren Werke AG
Mercedes-Benz Group AG
Dr Ing hc F Porsche AG
Bottom Line
Europe’s auto market is cooling — but electrification is preventing a sharper fall.
While traditional car sales struggle amid economic uncertainty, EV and hybrid growth continues to reshape the competitive landscape — especially with Chinese brands accelerating their push into Europe.
Key Takeaways
Overall sales down 3.5%, ending growth streak
EVs and hybrids remain strong growth drivers
Germany’s subsidy may boost demand further
Chinese brands gaining share in electrified segment
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