Good Morning. This is the Investor Lookout with the daily digest to make you a smarter investor. (Keep an eye on the Lookout Watch to see how we’re doing!)

Here’s what we got today:

• ⚖️ Nvidia's Securities Case Defense Faces Supreme Court Scrutiny

• 🎮 Tencent Q3 Revenue Surged 8% As Gaming Rebounds, Sees AI Benefits

Nvidia's Securities Case Defense Faces Supreme Court Scrutiny

Hopefully, Nvidia ($NVDA) doesn't use AI for its legal defense case at the Supreme Court. The California-based company faces allegations of misleading investors in 2017 and 2018. The litigation, led by Swedish investment firm E. Ohman J:or AB, claims that Nvidia CEO Jensen Huang infringed on a 1934 federal law by issuing statements that downplayed its crypto-based revenue. Meta's ($META) Facebook is fighting a similar case at the Supreme Court. Both companies claim that if they lose, the legal system will be overwhelmed with investor lawsuits. Nvidia previously paid $5.5 million to settle similar charges without admitting wrongdoing.

• Court justices seem skeptical of Nvidia's attempt to dismiss the securities fraud lawsuit

• The Supreme Court is expected to decide both cases by the end of June next year

Tencent Q3 Revenue Surged 8% As Gaming Rebounds, Sees AI Benefits

Tencent just posted game-changing results. The Chinese company reported a substantial 47% profit increase year-on-year to 53.23 billion yuan ($7.37 billion) in Q3, beating analysts' forecast of 46.18 billion yuan. Revenue climbed 8% to 167.19 billion yuan, just short of the 167.82 billion yuan analyst forecast. Gaming is still a crucial segment, with domestic revenue up 14% while international jumped 11%. Marketing services revenue surged by 17% to 29.99 billion yuan, establishing it as one of the quickest-expanding segments beyond gaming. The company reports tangible benefits from AI implementation, especially in marketing and cloud.

• Tencent's super app WeChat grew to 1.38 billion monthly global users

• Management expects significant free cash flow in 2025 that can be used for share buybacks and dividends

Markets

China unveils tax incentives to revive struggling property sector. Beijing announced tax incentives on home and land transactions on Wednesday, aiming to stimulate the real estate market. China added first property-easing measures in September. [Read]

Peltz says Trump-election stock market rally cannot continue uninterrupted. Hedge fund manager Nelson Peltz, who backed Trump this year, said stocks cannot continue to zoom higher uninterrupted. [Read]

Fed officials wary of inflation risks as they weigh more rate cuts. Fed policymakers are expressing concerns about rising inflation in the current context of interest rate cuts. Officials still need to figure out the timing of the next rate cut. [Read]

Business

Breaking Up Can Send Honeywell Stock Up 75%, Says Activist Investor Elliott. Activist investor Elliott Investment Management acquired a $5B stake in Honeywell ($HON) and said that Honeywell should split into two companies, aerospace and automation. [Read]

BNP lays off a dozen China dealmakers amid fee plunge. BNP Paribas ($BNP) laid off a dozen investment bankers in mainland China and Hong Kong, representing over 10% of its China workforce. [Read]

China's CATL pushes beyond batteries into power grids, EV platforms. Robin Zeng, founder of CATL, aims to develop and manage green energy grids for mines, cities, and data centers. CATL aims to build energy systems that could power even a city. [Read]

US debt ‘set to explode’ under Trump. The Telegraph

Jensen Huang says SoftBank's Masayoshi Son once offered to help buy out Nvidia. BI

Why is the euro falling and could it hit $1?. Reuters

Trump win could be a double whammy for Hungary's economy. Reuters

Taiwan central bank sees peril in Trump tariffs. Reuters

COP29: Development bank financing pledge gives summit early boost. Reuters

SoftBank is Nvidia's first Blackwell chips customer. BI

The AI revolution is here but it’s still ‘pretty nascent’ and ‘a little clumsy’. Fortune

Amazon makes it harder for disabled employees to work from home. Fortune

Siemens Energy Lifts Midterm Targets on Power Demand Boom. WSJ

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.