The Dow Jones index wavered Tuesday after the CPI inflation report. Nvidia stock surged on AI chip sales to China.

For strategists at JPMorgan Chase & Co. and Goldman Sachs Group Inc. as well as money managers in Hong Kong and Singapore, an opaque term has suddenly emerged as the catchphrase for deciphering Chinese policy intentions and navigating the stock market.

Currently, the stocks amount to about $2 trillion in market value. But the leading investment bank has predicted an average growth rate of 13% annually over the next two years for the Prom 10 – hinting that there is ample headroom for China's tech leaders to move into similarly dominant positions as their U.S. counterparts.

Nvidia remains the dominant AI chipmaker in the market, but where is the stock headed for the rest of this year and into the next?

Even with major American brands, a large portion of smartphones, laptops and TVs are overwhelmingly assembled in China, according to Robert Khachatryan, CEO at Freight Right Global Logistics, who highlighted that over the past few years, tariffs on these products raised import costs and squeezed retailers.

Tech led US stocks on Tuesday as a key consumer inflation print showed inflation accelerated in June, big banks kicked off earnings season, and Nvidia was set to receive a green light for trade with China from the Trump administration.

Advanced Micro Devices, Inc. gains momentum with China expansion, AI adoption, and OpenAI ties. Click for my updated look at AMD stock ahead of Q2 earnings.