Tesla shares climbed 12% in extended trading after the company’s third-quarter earnings beat Wall Street estimates, following a long slump.
However, Tesla’s revenue for that period, up 8% year on year, marginally missed expectations. “Vehicle growth” will hit up to 20%-30% next year, said CEO Elon Musk, thanks to “lower cost vehicles” and the “advent of autonomy.” Apparently, this was presented as a ‘best guess’.
Profit margins reportedly received a boost from $739 million in automotive regulatory credit revenue during the quarter. Automakers must acquire a certain number of regulatory credits annually. Those unable to meet the requirement can buy credits from companies like Tesla, which has a surplus due to its exclusive production of electric vehicles.
Automotive revenue reportedly rose 2% to $20 billion, up from $19.63 billion in the same quarter the previous year, and has remained roughly stable since late 2022. Energy generation and storage revenue reportedly surged 52% to $2.38 billion, while services and other revenue, which includes income from non-warranty Tesla vehicle repairs, increased by 29% to $2.79 billion.
Tesla quarterly revenues by business section
Tesla quarterly revenues by business section
Tesla share price and close and ‘after hours’ trading 23rd October 2024 (09:15 BST)
Tesla share price and close and ‘after hours’ trading 23rd October 2024 (09:15 BST)
Norway‘s massive world record breaking sovereign wealth fund reported a third-quarter profit of 835 billion Norwegian kroner ($76.3 billion) on Tuesday 22nd October 2024.
The fund’s performance was attributed to a stock market surge due to the decline interest rates.
The overall return for the quarter stood at 4.4%, which was 0.1 percentage points below the return of its benchmark index.
Gold continues on its path to new highs touching $2740 on 21st October 2024
In 2024, gold experienced a surge of over 35%, reaching new record highs.
This increase was propelled by the anticipation of additional Federal Reserve rate reductions following a half-percentage-point cut in September 2024, coupled with persistent geopolitical uncertainties stretching from Europe to the Middle East.
Delegates at the London Bullion Market Association‘s annual meeting earlier this week predicted that gold prices could reach $2,941 per troy ounce in the next 12 months.
As investors continue to seek out a safe haven for their money, the price of gold will remain elevated.
Gold price one year chart – price snapshot as of: 21st October 2024 (08:52 BST)
Gold price one year chart – price snapshot as of: 21st October 2024 (08:52 BST)
Gold, which yields no interest in its own right, tends to gain in value when interest rates are cut and when geopolitical tensions heat up.
Nvidia’s shares have reached a record peak as the company continues to benefit from the surging demand for its AI chips
Tech giants such as Microsoft, Meta, Google, and Amazon are acquiring Nvidia’s GPUs in large volumes to create extensive AI computing clusters.
Nvidia, with a market capitalisation of around $3.4 trillion, ranks as the second most valuable publicly traded company in the U.S., trailing behind Apple, which has a market cap of approximately $3.55 trillion.
Oh, the volatility of tech stocks, don’t you just love it?
The company’s stock rose by 2.4% to close at $138.07, exceeding the previous high of $135.58 set on 18th June 2023. The shares have increased by nearly 180% this year and have experienced a more than ninefold increase since early 2023.
Regarded as the leading supplier in the AI revolution, Nvidia has gained significantly from the generative AI surge initiated by OpenAI’s ChatGPT release in November 2022. Nvidia’s GPUs are instrumental in developing and running sophisticated AI models, including those that operate ChatGPT and related platforms.
You can’t go far wrong when big players such as Microsoft, Meta, Google and Amazon are buying your stuff.
Tesla’s stock declined on Friday 11th October 2024 following the electric vehicle maker’s highly anticipated robotaxi event, which left investors unimpressed
£60 billion was wiped off Tesla market cap
CEO Elon Musk showcased the Cybercab concept vehicle, announcing that it would be available for purchase at a price below $30,000.
Analysts reportedly commented that the event did not emphasise any immediate opportunities for Tesla, focusing instead on Musk’s long-term vision for fully autonomous driving.
At the ‘We, Robot’ event on Thursday 10th October 2024, CEO Elon Musk presented the Cybercab, a sleek, silver two-seater without steering wheels or pedals, underscoring his company’s goal to develop a fleet of self-driving vehicles and robots.
Musk expressed his hope for Tesla to start producing the Cybercab by 2027, though he did not specify the manufacturing locations. He reiterated that the Tesla Cybercab would be sold for less than $30,000.
Furthermore, he anticipated that Tesla’s Model 3 and Model Y electric vehicles would feature ‘unsupervised FSD’ operational in Texas and California by next year. FSD, standing for Full Self-Driving, is Tesla’s advanced driver assistance system, currently available in a supervised format.
Investors and analysts were underwhelmed by the event. Tesla shares fell.
Tesla one year chart as of 11th October 2024
Tesla one year chart as of 11th October 2024
Elon Musk’s wealth
Elon Musk is projected to become the world’s first trillionaire by 2027, as per a recent report by Informa Connect Academy. Among global billionaires, Musk is nearest to reaching the 13-figure threshold, with his wealth continuing to increase.
Ripple has announced the launch of a range of features designed to assist banks and fintech’s with the storage of digital tokens, marking a significant expansion into the realm of crypto custody.
Crypto custody services, which support clients in managing their crypto assets, represent a new venture for Ripple, now unified under the brand Ripple Custody.
The company is best known for its XRPcryptocurrency and RippleNet, a distributed ledger platform facilitating fast interbank payments.
Stocks broadly climbed for a second consecutive session on 9th October 2024 with Dow & S&P 500 reaching new record highs
The S&P 500 and Dow Jones Industrial Average both closing at record highs, buoyed by a surge in technology stocks and a dismissal of geopolitical worries.
The S&P 500 increased to 5792, marking a new all-time high, while the Nasdaq Composite rose to end at 18291. The Dow Jones Industrial Average jumped 431 points to close at a record 42512.
Leading the rally were technology stocks, with Amazon and Apple each gaining over 1%. Super Micro Computer saw a significant 4% increase. The gains helped offset a rocky start to October, propelling the major indices into positive territory for the month.
Following the release of minutes from the Federal Reserve’s September meeting, which showed a 0.50% interest rate cut, stocks held onto their gains. The minutes indicated that a ‘substantial majority of participants‘ were in favour of the more significant rate reduction.
Record high reached for the S&P 500 on 9th October 2024
Record high reached for the S&P 500 on 9th October 2024
Record high reached for the Dow Jones on 9th October 2024
Record high reached for the Dow Jones on 9th October 2024
The FTSE 100 index comprises the 100 largest companies by market capitalisation. These companies are typically well-established and financially stable, making them reliable dividend payers.
The average dividend yield for the FTSE 100 is around 3.97%.
Here are ten dividend stocks in the FTSE 100
British American Tobacco (BATS) – Known for its high dividend yield, often exceeding 7%. Not an ethical choice.
Rio Tinto (RIO) – A mining giant with a strong dividend history.
Imperial Brands (IMB) – Another tobacco company with a robust dividend yield. Not an ethical choice.
Legal & General Group (LGEN) – A financial services company with a consistent dividend payout.
GlaxoSmithKline (GSK) – A pharmaceutical company with a reliable dividend.
Vodafone Group (VOD) – A telecommunications company with a solid dividend yield.
HSBC Holdings (HSBA) – One of the largest banking institutions with a strong dividend.
BP (BP) – An oil and gas company known for its high dividend yield.
Unilever (ULVR) – A consumer goods company with a consistent dividend payout.
National Grid (NG) – An energy company with a reliable dividend history.
FTSE 250 Dividend Stocks
The FTSE 250 index includes the next 250 largest companies after the FTSE 100. These mid-cap companies often offer higher growth potential and, in some cases, higher dividend yields. The average dividend yield for the FTSE 250 is around 3.30%.
Here are ten dividend stocks in the FTSE 250
Harbour Energy (HBR) – An oil and gas company with a yield of 7.24%.
Tritax Big Box REIT (BBOX) – A real estate investment trust with a yield of 4.76%.
Investec (INVP) – A financial services company with a yield of 6.21%.
Greencoat UK Wind (UKW) – A renewable energy company with a yield of 7.48%.
IG Group Holdings (IGG) – A financial services company with a yield of 5.02%.
ITV (ITV) – A media company with a yield of 6.43%.
Abrdn (ABDN) – An investment company with a yield of 9.45%.
HICL Infrastructure (HICL) – An infrastructure investment company with a yield of 6.37%.
Direct Line Insurance Group (DLG) – An insurance company with a yield of 3.30%.
Drax Group (DRX) – An energy company with a yield of 3.81%.
Passive dividend income
Dividend stocks in the FTSE 100 and FTSE 250 – a basic overview
Buying dividend stocks can offer several benefits to investors – key advantages are…
Regular Income
Dividend stocks provide a steady stream of income through regular dividend payments. This can be particularly appealing for retirees or those seeking passive income.
Potential for Capital Appreciation
In addition to dividends, these stocks can also appreciate in value over time, offering the potential for capital gains. This dual benefit can enhance overall returns.
Reinvestment Opportunities
Dividends can be reinvested to purchase more shares, a strategy known as dividend reinvestment. This can compound returns over time, significantly boosting the value of your investment.
Lower Volatility
Dividend-paying stocks tend to be less volatile than non-dividend-paying stocks. Companies that pay dividends are often more established and financially stable, which can provide a cushion during market downturns.
Tax Advantages
In many jurisdictions, dividends are taxed at a lower rate than regular income. This can make dividend stocks a tax-efficient investment option.
Inflation Hedge
Dividend growth can help protect against inflation. Companies that consistently increase their dividends can provide a rising income stream that keeps pace with or exceeds inflation.
Signal of Financial Health
A company that pays regular dividends is often seen as financially healthy and confident in its future earnings. This can be a positive signal to investors about the company’s stability and profitability.
Diversification
Including dividend stocks in your portfolio can add diversification. They often belong to various sectors, providing exposure to different parts of the economy.
Compounding Effect
The combination of regular dividends and potential capital gains can create a powerful compounding effect over time, significantly enhancing long-term returns.
Psychological Benefits
Receiving regular dividends can provide psychological comfort, especially during market volatility. Knowing that you are earning income regardless of market conditions can help maintain a long-term investment perspective.
Investing in dividend stocks can be a strategic way to build wealth and generate income. However, it’s important to research and choose companies with a strong track record of dividend payments and financial stability.
Conclusion
Investing in dividend stocks from the FTSE 100 and FTSE 250 can be a strategic way to generate passive income while also benefiting from potential capital gains. These indices offer a diverse range of companies, each with its own strengths and dividend yields, making them attractive options for income-focused investors.
These are NOT recommendations – just observations. Go do your research. Interest rates will/do change quickly – go check. Thanks.
Remember to ALWAYS do your own careful and considered research…
On Wednesday 9th October 2024, Chinese stocks experienced a sharp decline, with the Shanghai benchmark plummeting by 6.6%
Hong Kong’s index fell by 1.5%, in contrast to the mostly positive performance of other global markets.
Beijing’s recently detailed economic stimulus plans did not meet the high expectations set after the central bank and other agencies announced measures aimed at revitalising the struggling property sector and accelerating economic growth.
The Shanghai Composite Index fell 6.6% reversing a 4.6% gain from Tuesday 8th October 2024 when it re-opened following a weeklong national holiday.
The CSI 300 Index, which follows the top 300 stocks in the Shanghai and Shenzhen exchanges, relinquished 7.1%– ending a 10-day winning streak.
In Shenzhen’s smaller market, the benchmark tumbled by 8.7%.
The Hang Seng index in Hong Kong dropped 1.5% – and this coming after a steep decline of over 9% the previous day.
Bitwise Asset Management, a prominent player in the cryptocurrency investment space, has recently made headlines with its filing for a spot XRP exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC).
This move marks a significant milestone as it is the first attempt to create an ETF specifically for XRP, the native token of the XRP Ledger.
The proposed Bitwise XRP ETF aims to provide investors with direct exposure to XRP through traditional brokerage accounts. This will make it easier for both institutional and retail investors to gain access to this digital asset. Bitwise’s decision to pursue an XRP ETF underscores the growing recognition of XRP’s potential and its established presence in the cryptocurrency market.
Bitwise is no stranger to the ETF landscape, having successfully launched Bitcoin and Ethereum ETFs in the past. The company’s experience and reputation in managing crypto assets lend credibility to this new venture. However, the approval process for the XRP ETF is expected to be rigorous, given the SEC’s cautious approach to cryptocurrency-related financial products.
The filing comes at a time when the cryptocurrency market is experiencing increased interest from mainstream investors. XRP, known for its fast transaction speeds and low fees, has been a popular choice for cross-border payments and remittances. If approved, the Bitwise XRP ETF could attract a new wave of investors looking to diversify their portfolios with digital assets.
While the SEC’s decision is still pending, the filing itself is a testament to the evolving landscape of cryptocurrency investments. There is a growing acceptance of digital assets in traditional financial markets. Investors and crypto enthusiasts alike will be watching closely as this development unfolds.
Meta, the parent company of Instagram, has announced that voices of Dame Judi Dench and John Cena will be available as options for its AI chatbot.
Moreover, users can access information through AI representations of celebrities such as Awkwafina, Keegan-Michael Key, and Kristen Bell. Meta is hopeful that this new endeavour with celebrity chatbots will surpass the success of its previous attempts. In September 2023, Meta introduced AI chatbots featuring the ‘personalities’ of celebrities including Kendall Jenner and Snoop Dogg, but the project was terminated within a year.
At Meta’s annual Connect conference, CEO Mark Zuckerberg announced the new celebrity chatbot project, remarking, ‘Interacting with AI through voice will be more intuitive than through text.‘ The enhanced ChatGPT-style chatbot will also be capable of recognizing objects in images and providing relevant details. Additionally, a novel image editing tool will allow users to alter photos by simply directing the Meta AI with their requests.
Meta has disclosed that its AI now reaches over 400 million people monthly, with 185 million engaging weekly.
Total deliveries Q3 2024: 462,890 – Total production Q3 2024: 469,796
Analysts had projected Tesla would deliver 463,310 vehicles by the end of September 2024. However, other sources indicated a larger shortfall; the average analyst predictions were at 469,828 vehicles, while an independent researcher known as ‘Troy Teslike,‘ popular among Tesla enthusiasts, estimated 472,000 deliveries for the quarter.
Comparatively, Tesla reported 435,059 deliveries and 430,488 EVs produced in the same period last year. In the previous quarter, the company achieved 443,956 deliveries and produced 410,831 vehicles.
In the U.S., competitors such as Rivian are advancing, and traditional automakers like Ford and General Motors are increasing their electric vehicle sales, albeit scaling back earlier electrification targets.
Ford announced a 12% increase in EV sales for the third quarter, totaling 23,509 vehicles on Wednesday 2nd October 2024.
General Motors reported a 60% rise in EV sales for the same quarter compared to the previous year, with 32,100 units sold, which represents 4.9% of its total sales volume.
Tesla’s reputation in the U.S. has faced challenges, partly due to CEO Elon Musk’s controversial actions, including endorsing former President Donald Trump and disseminating what has reportedly been described by the White House as ‘racist hate“, along with alleged misinformation about immigration and election fraud on X, his social media platform.
Despite these issues, Tesla remains the leading seller of battery electric vehicles in the U.S., with Hyundai trailing significantly behind.
Chinese firms are reportedly intensifying their efforts to develop a competitive alternative to Nvidia’s AI chips, as part of Beijing’s ongoing initiative to reduce its reliance on U.S. technology.
China faces several challenges that are impeding its technological progress, including U.S. export restrictions that limit domestic semiconductor production. The lack of technical expertise is also reported to be a problem.
Analysts have identified companies including Huawei as the principal competitors to Nvidia in China
China’s counterparts to Nvidia, such as Huawei, Alibaba, and Baidu, are actively developing AI chips to compete in the same market. Huawei’s HiSilicon division is known for its Ascend series of data centre processors.
Huawei’s HiSilicon division is known for its Ascend series of data centre processors, and Alibaba’s T-Head has produced the Hanguang 800 AI inference chip. Other significant players include Biren Technology and Cambricon Technologies.
Alibaba’s T-Head has developed the Hanguang 800 AI inference chip. Other significant players include Biren Technology and Cambricon Technologies.
These Chinese firms are intensifying their efforts to create alternatives to Nvidia’s AI-powering chips. This is a big part of Beijing’s broader initiative to reduce its reliance on U.S. technology.
Nvidia’s surge in growth is attributed to the demand from major cloud computing companies for its server products, which incorporate graphics processing units, or GPUs.
These GPUs are crucial for entities like OpenAI, the creator of ChatGPT, which requires substantial computational power to train extensive AI models on large datasets.
AI models are crucial for chatbots and other AI applications
The U.S. sanctions and Nvidia’s market dominance pose significant obstacles to China’s ambitions, particularly in the short term, according to analysts. The U.S. has curbed the export of Nvidia’s most sophisticated chips to China since 2022, with increased restrictions implemented last year.
China’s GPU designers rely on external manufacturers for chip production. Traditionally, this role was filled by Taiwan Semiconductor Manufacturing Co. (TSMC). However, due to U.S. restrictions, many Chinese firms are now unable to procure chips from TSMC.
As a result, they have shifted to using SMIC, China’s largest chipmaker, which is technologically several generations behind TSMC. This gap is partly due to Washington’s limitations on SMIC’s access to essential machinery from the Dutch company ASML, necessary for producing the most advanced chips.
Huawei is driving the development of more sophisticated chips for its smartphones and AI, which occupies a significant portion of SMIC’s capacity.
Nvidia has achieved success not only through its advanced semiconductors but also via its CUDA software platform. The system enables developers to build applications for Nvidia’s hardware. This has fostered an ecosystem around Nvidia’s designs, which will be challenging for competitors to emulate.
Huawei leading the pack for China
Huawei is at the forefront as a leading force in China for its Ascend series of data centre processors. The current generation, named Ascend 910B, is soon to be succeeded by the Ascend 910C. This new chip may come to rival Nvidia’s H100.
Cryptocurrencies fell on Tuesday evening 1st October 2024, with Bitcoin retreating to the $60,000 level following an unstable beginning to what is typically one of its best performing months.
Shares associated with digital currencies also fell in after-hours trading. Crypto exchange Coinbase saw a decline of about 1%, and MicroStrategy experienced a 2% drop, following a decrease of 7.4% and 3.5% at the close.
Escalating conflicts in the Middle East have curbed investors’ appetite for risk as the new trading month and quarter got underway. On Tuesday 1st October 2024, Iran executed a ballistic missile strike on Israel in response to the recent assassination of Hezbollah leader Hassan Nasrallah and an Iranian commander in Lebanon.
The growing turmoil in the Middle East has driven oil prices higher and bolstered the U.S. dollar, casting a shadow over Bitcoin and other speculative assets.
Shares of many Chinese property stocks listed in Hong Kong soared to their highest levels in more than a year, propelled by the ongoing stimulus rally in China
The real estate sector emerged as the top performer in the Hang Seng Index on Wednesday 2nd October 2024.
Chinese stocks experienced a rally, climbing over 7% to complete their sixth consecutive day of gains.
Freetrade acquires Stake’s UK customer base, increasing domestic presence amid intense competition with similar apps such as Robinhood
The British retail investment platform Freetrade is set to acquire the UK customer base of its Australian competitor Stake, highlighting the growing competition in the UK’s digital investment sector. The acquisition, initially reported by CNBC, entails Freetrade assuming responsibility for all of Stake’s UK clients and their assets.
Freetrade currently oversees more than £2 billion in assets for its UK customer base.
The retail investment platform Robinhood has announced the introduction of cryptocurrency transfers in and out of its app for European customers
As part of its international expansion efforts, the company aims to enhance its product offerings in the region.
According to a blog post-dated Tuesday 1st October 2024, Robinhood will enable customers within the European Union to deposit and withdraw over 20 different digital currencies via its platform, including Bitcoin, Ethereum, Solana, and USD Coin.
This development grants Robinhood’s European clientele the option of “self-custody” of assets, allowing them to personally hold their cryptocurrencies in a privately-owned wallet, rather than relying on a third-party service to manage their funds.
Chinese stocks continued to rise following state media reports that China’s top leaders have endorsed the government’s recent measures to bolster their economy.
The CSI 300 index in Mainland China continued its rally for a seventh consecutive day, reaching its highest point in about four months, subsequent to a meeting of China’s highest officials confirming the government’s latest economic stimulus actions.
South Korea’s Kospi index surged by 1.9%, driven by advances in semiconductor company SK Hynix, which declared the commencement of mass production of the world’s inaugural 12-layer HBM3E chip, utilised in AI applications.
In a substantial effort to strengthen the infrastructure required for artificial intelligence (AI), BlackRock and Microsoft have unveiled a significant fundraising endeavour.
The main objective of this initiative is to establish new and larger data centers to accommodate the escalating demand for computing power spurred by advancements in AI. These data centres are vital for meeting the growing computational requirements of AI applications, which necessitate substantial processing power and storage capacity. Additionally, the partnership will focus on investing in the energy infrastructure required to operate these data centres in an environmentally sustainable manner.
BlackRock, the global investment management corporation, contributes its vast network of corporate relationships and private equity expertise. Microsoft, a pioneer in technology and AI, offers the necessary technological expertise and industry leadership. Together, their goal is to establish a strong infrastructure that will bolster AI innovation and contribute to economic expansion.
The investment will be primarily directed towards the United States, with a portion also being allocated to partner countries. This strategic emphasis aims to boost American AI competitiveness and encourage worldwide cooperation. The partnership is designed to support an open architecture and a wide-ranging ecosystem, enabling a variety of partners and companies to leverage the infrastructure.
NVIDIA, a leading force in AI technology, will contribute to GAIIP by providing its expertise in AI data centres and manufacturing facilities. This partnership is anticipated to improve AI supply chains and energy procurement, offering advantages to both consumers and the broader industry.
This collaboration marks a substantial move towards establishing the infrastructure of tomorrow and powering it in an eco-friendly manner.
Gold prices have soared to unprecedented levels, reaching a new all-time high of $2,585 per ounce
This surge is driven by a mixture of economic and geopolitical factors that have heightened investor interest in the precious metal.
One of the primary catalysts for this rise is the anticipation of a significant interest rate cut by the U.S. Federal Reserve. Recent economic data indicating a slowdown in the U.S. economy has led to expectations of monetary easing, which in turn has weakened the dollar. As a result, gold, which is priced in dollars, has become more attractive to investors seeking a safe haven.
In addition to economic factors, ongoing geopolitical tensions and persistent inflation concerns have further bolstered gold’s appeal. With inflation eroding the value of fiat currencies, investors are turning to gold as a hedge against currency devaluation. The metal’s historical role as a reliable store of value during times of uncertainty continues to drive demand.
Market analysts are now speculating whether gold could reach the $3,000 mark, given the current trajectory and market conditions. As the global economic landscape remains volatile, gold’s allure as a safe-haven asset is likely to persist, potentially pushing prices even higher in the coming months.
Artificial Intelligence (AI) has become a pivotal battleground in the technological race between China and the United States.
“AI is expected to become a crucial component of economic and military power in the near future,” Stanford University’s Artificial Intelligence Index Report 2023 stated.
Both countries are significantly investing in AI research and development, striving to achieve a leading role in this revolutionary sector. This post looks at the major figures in China’s AI scene, their progress, and their comparison with their American counterparts.
China’s AI Landscape
China’s AI aspirations are propelled by a number of significant technology firms, each forging their own AI models and applications.
Baidu: Often referred to as the ‘Google of China,’ Baidu leads in AI development. Its premier AI model, ERNIE (Enhanced Representation through Knowledge Integration), fuels the Ernie Bot, a chatbot aimed to compete with OpenAI’s ChatGPT. Baidu asserts that ERNIE 4.0 matches GPT-4’s capabilities, demonstrating sophisticated understanding and reasoning abilities.
Alibaba: Alibaba’s AI model, Tongyi Qianwen (commonly known as Qwen), is a comprehensive set of foundational models adept at a range of tasks, from generating content to solving mathematical problems. Select versions of Qwen are open-source, enabling developers to utilize and modify them for various uses. Alibaba has announced that Qwen models are in use by over 90,000 enterprise clients.
Tencent: The Hunyuan model from Tencent is a prominent component of China’s AI landscape. Offered through Tencent’s cloud computing division, Hunyuan is tailored to facilitate a broad spectrum of applications, encompassing natural language processing and computer vision.
Huawei: In spite of considerable obstacles stemming from U.S. sanctions, Huawei persists in AI innovation. The firm has created its own AI processors, like the Kunlun series, to diminish dependence on international technology. Huawei’s AI features are incorporated into a diverse array of products, including smartphones and cloud solutions.
Comparison to the U.S.
The U.S. continues to be a dominant force in AI, with leading companies such as OpenAI,Microsoft, Google, Anthropic and Meta spearheading advancements.
Generative AI: U.S. firms have advanced significantly in generative AI, with OpenAI’s GPT-4 and Google’s Gemini at the forefront. These models excel in creating text, images, and videos from user inputs. Although Chinese models like ERNIE and Qwen are strong contenders, the U.S. maintains a slight lead in capabilities and market penetration.
Semiconductor Design: The U.S. leads the semiconductor design industry, vital for AI progress. U.S. companies command an 85% global market share in chip design, crucial for AI model training and system operation. China’s dependence on imported semiconductors is a notable obstacle, but there are ongoing efforts to create homegrown solutions.
Research and Innovation: Both nations boast strong AI research sectors, yet the U.S. edges out slightly in generating state-of-the-art AI products. U.S. tech giants frequently introduce AI breakthroughs to the market, with Chinese firms quickly gaining ground.
Government Support: The Chinese government ardently backs AI advancement, enacting strategies to spur innovation and lessen foreign tech reliance. Such support has spurred China’s AI industry’s rapid expansion, positioning it as a strong rival to the U.S.
Conclusion
The competition in AI development between China and the U.S. is escalating, as both countries achieve significant breakthroughs. Although the U.S. maintains a marginal lead in some respects, China’s swift advancement and state backing indicate that the disparity might keep closing. The quest for AI dominance by these nations is set to influence the worldwide technological and innovative landscape profoundly.
As of September 2024, it is estimated that China’s AI development is approximately nine months behind that of the U.S.
The Australian property listing company REA Group announced on Wednesday that its £5.6 billion ($7.32 billion) cash-and-stock bid to take over Rightmove, Britain’s largest real estate portal, was rejected.
REA Group, which is 62% owned by Rupert Murdoch’s News Corp, reportedly did not provide a reason for Rightmove’s refusal of the offer.
Analysts have noted that Britain’s housing market is three times larger than Australia’s. A successful deal would have accelerated REA’s expansion into profitable international markets.
Qualcomm has introduced the Snapdragon X Plus 8-core processor, intensifying its venture into the AI PC market and challenging competitors like Intel and AMD
The U.S. semiconductor powerhouse announced that the Snapdragon X Plus 8-core targets PCs priced from $700, aiming to broaden its chip reach to additional devices.
Moreover, Qualcomm has enjoyed backing from Microsoft, which is incorporating Snapdragon processors in its Copilot+ PCs.
Qualcomm says the company is also working on mixed reality smart glasses with Samsung and Google.
The British luxury fashion house Burberry Group was relegated from the U.K.’s FTSE 100 on Wednesday 4th August 2024, amid declining sales and management upheavals, all adding to the challenges of the 168-year-old retailer
This demotion represents a new setback for Burberry, with its share price having plummeted over 53% this year.
Previous CEOs have endeavoured to refine the brand’s aesthetic. With the appointment of Joshua Schulman as the new chief executive in July 2024, a shift in strategy is now indicated.
Burberry is not alone in its waning fortunes. The luxury sector as a whole has suffered from a prolonged downturn in consumer spending amid inflationary pressures and broader economic uncertainty. Chinese luxury consumption has been especially hard hit.
In July, Hugo Boss cut its full-year guidance after reporting a fall in sales, notably in the U.K. and China, while Gucci owner Kering issued a weak forecast recognising a deceleration in China. LVMH revenue also fell in the second quarter on weaker sales.
Burberry’s FTSE relegation confirms a long fall from grace for the luxury fashion icon.
Nvidia $279 billion market cap wipeout — the biggest in U.S. history for just ONE company
On Tuesday 3rd September 2024, around $279 billion of value was wiped off of Nvidia. That was the biggest one-day market capitalisation drop for a U.S. stock in HISTORY!
Nvidia one-day chart closed 108 on 3rd September 2024
Nvidia one-day chart closed 108 on 3rd September 2024
Nvidia shares continued sliding in post-market trading Tuesday, falling 2%, after Bloomberg reported that the company received a subpoena from the Department of Justice as part of an antitrust investigation.
Global semiconductor stocks and related sectors subsequently experienced a decline on Wednesday 4th September 2024, after Nvidia’s share price in the U.S. saw a significant plunge overnight.
Update: in a subsequent statement Nvidia reportedly said it didn’t receive antitrust subpoena from DOJ. This according to a report on CNBC.
