Tag: Apple

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Databases to Dominance: Oracle’s AI Boom and Ellison’s Billionaire Ascent

Oracle

Oracle Corporation has just staged one of the most dramatic rallies in tech history—catapulting itself into the elite club of near-trillion-dollar companies and reshaping the billionaire leaderboard in the process.

Founded in 1977 by Larry Ellison, Oracle began as a modest database software firm. Its first major boom came in the late 1990s, riding the dot-com wave as enterprise software demand exploded.

By 2000, Oracle’s market cap had surged past $160 billion, making it one of the most valuable tech firms of the era.

A second wave of growth followed in the mid-2000s, fuelled by aggressive acquisitions like PeopleSoft and Sun Microsystems, which expanded Oracle’s footprint into enterprise applications and hardware.

Boom

But its most recent boom—triggered in 2025—is unlike anything before. Oracle’s pivot to cloud infrastructure and artificial intelligence has paid off spectacularly. In its fiscal Q1 2026 report, Oracle revealed $455 billion in remaining performance obligations (RPO), a staggering 359% increase year-over-year.

This backlog, driven by multi-billion-dollar contracts with AI giants like OpenAI, Meta, Nvidia, and xAI, sent shockwaves through Wall Street.

Despite missing revenue and earnings expectations slightly—$14.93 billion in revenue vs. $15.04 billion expected, and $1.47 EPS vs. $1.48 forecasted—the market responded with euphoria.

Oracle’s stock soared nearly 36% in a single day, adding $244 billion to its market cap and pushing it to approximately $922 billion. Analysts called it ‘absolutely staggering’ and ‘truly awesome’, with Deutsche Bank reportedly raising its price target to $335.

Oracle Infographic September 2025

This meteoric rise had personal consequences too. Larry Ellison, Oracle’s co-founder and current CTO, saw his net worth jump by over $100 billion in one day, briefly surpassing Elon Musk to become the world’s richest person.

His fortune reportedly peaked at around $397 billion, largely tied to his 41% stake in Oracle. Ellison’s journey—from college dropout to tech titan—is now punctuated by the largest single-day wealth gain ever recorded.

CEO Safra Catz also benefited, with her net worth rising by $412 million in just six hours of trading, bringing her total to $3.4 billion. Under her leadership, Oracle’s stock has risen over 800% since she became sole CEO in 2019.

Oracle’s forecast for its cloud infrastructure business is equally jaw-dropping: $18 billion in revenue for fiscal 2026, growing to $144 billion by 2030. If these projections hold, Oracle could soon join the trillion-dollar club alongside Microsoft, Apple, and Nvidia.

From database pioneer to AI infrastructure powerhouse, Oracle’s evolution is a masterclass in strategic reinvention.

Oracle one-year chart 10th September 2025

Oracle one-year chart 10th September 2025

And with Ellison now at the summit of global wealth, the company’s narrative is no longer just about software—it’s about legacy, dominance, and the future of intelligent computing.

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Is BIG tech being allowed to pay its way out of the tariff turmoil

BIG tech money aids tariff avoidance

Where is the standard for the tariff line? Is this fair on the smaller businesses and the consumer? Money buys a solution without fixing the problem!

  • Nvidia and AMD have struck a deal with the U.S. government: they’ll pay 15% of their China chip sales revenues directly to Washington. This arrangement allows them to continue selling advanced chips to China despite looming export restrictions.
  • Apple, meanwhile, is going all-in on domestic investment. Tim Cook announced a $600 billion U.S. investment plan over four years, widely seen as a strategic move to dodge Trump’s proposed 100% tariffs on imported chips.

🧩 Strategic Motives

  • These deals are seen as tariff relief mechanisms, allowing companies to maintain access to key markets while appeasing the administration.
  • Analysts suggest Apple’s move could trigger a ‘domino effect’ across the tech sector, with other firms following suit to avoid punitive tariffs.
Tariff avoidance examples

⚖️ Legal & Investor Concerns

  • Some critics call the Nvidia/AMD deal a “shakedown” or even unconstitutional, likening it to a tax on exports.
  • Investors are wary of the arbitrary nature of these deals—questioning whether future administrations might play kingmaker with similar tactics.

Big Tech firms are striking strategic deals to sidestep escalating tariffs, with Apple pledging $600 billion in U.S. investments to avoid import duties, while Nvidia and AMD agree to pay 15% of their China chip revenues directly to Washington.

These moves are seen as calculated trade-offs—offering financial concessions or domestic reinvestment in exchange for continued market access. Critics argue such arrangements resemble export taxes or political bargaining, raising concerns about legality and precedent.

As tensions mount, these deals reflect a broader shift in how tech giants navigate geopolitical risk and regulatory pressure.

They buy a solution…

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Meta’s AI power play: can it outmanoeuvre Apple and Google in the device race?

META device race

Meta is making a serious play to become the dominant force in AI-powered consumer devices, and it’s not just hype—it’s backed by aggressive strategy, talent acquisition, and a unique distribution advantage.

🧠 Meta’s Strategic Edge in AI Devices

1. Massive User Base

  • Meta has direct access to 3.48 billion daily active users across Facebook, Instagram, WhatsApp, and Messenger.
  • This gives it an unparalleled distribution channel for deploying AI features instantly across billions of devices.

2. Platform-Agnostic Approach

  • Unlike Apple and Google, which tightly integrate AI into their operating systems, Meta is bypassing OS gatekeepers by embedding AI into apps and wearables.
  • It’s partnering with chipmakers like Qualcomm and MediaTek to optimize AI performance on mobile hardware.

3. Talent Acquisition Blitz

  • Meta poached Ruoming Pang, Apple’s head of AI models, and Alexandr Wang, co-founder of ScaleAI, to lead its Superintelligence group.
  • This group aims to build AI that’s smarter than humans—an ambitious goal that’s drawing top-tier talent from rivals.

4. Proprietary Data Advantage

  • Meta’s access to real-time, personal communication and social media data is considered one of the most valuable datasets for training consumer-facing AI.
  • This gives it a leg up in personalization and contextual understanding.

🍏 Apple and Google: Still Strong, But Vulnerable

Apple

  • Struggled with its in-house AI models, reportedly considering outsourcing to OpenAI or Anthropic for Siri upgrades.
  • Losing this battle could signal deeper issues in Apple’s AI roadmap.

Google

  • Has robust AI infrastructure and Gemini models, but faces competition from Meta’s nimble, app-based deployment strategy.

🔮 Could Meta Win?

Meta’s approach is disruptive: it’s not trying to own the OS—it’s trying to own the AI interface. If it continues to scale its AI across apps, smart glasses (like Ray-Ban Meta), and future AR devices, it could redefine how users interact with AI daily.

That said, Apple and Google still control the hardware and OS ecosystems, which gives them deep integration advantages. Meta’s success will depend on whether users prefer AI embedded in apps and wearables over OS-level assistants.

1. AI Device Leadership Comparison

CompanyAI StrategyDistributionHardware Integration
MetaApp-first, wearable AI3.48B usersLimited (Ray-Ban)
AppleOS-integrated SiriiOS ecosystemFull control
GoogleGemini in AndroidAndroid ecosystemFull control

2. Timeline: Meta’s AI Milestones

  • 2023: Launch of Ray-Ban Meta glasses
  • 2024: Formation of Superintelligence team
  • 2025: AI embedded across Meta apps

Remember, Meta has direct access to nearly 3.50 billion users on a daily basis across Facebook, Instagram, WhatsApp, and Messenger.

Bit of a worry, isn’t it?

But good for investors and traders.

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Global stocks indices flying high as new records broken – 12th August 2025

New records for global indices led by U.S. tech

In a sweeping rally that spanned continents and sectors, major global indices surged to fresh record highs yesterday, buoyed by cooling inflation data, renewed hopes of U.S. central bank rate cuts, and easing trade tensions.

U.S. inflation figures released 12th August 2025 for July came in at: 2.7% – helping to lift markets to new record highs!

U.S. Consumer Price Index — July 2025

MetricValue
Monthly CPI (seasonally adjusted)+0.2%
Annual CPI (headline)+2.7%
Core CPI (excl. food & energy)+0.3% monthly, +3.1% annual

Despite concerns over Trump’s sweeping tariffs, the U.S. July 2025 CPI came in slightly below expectations (forecast was 2.8% annual).

Economists noted that while tariffs are beginning to show up in certain categories, their broader inflationary impact remains modest — for now.

Global Indices Surged to Record Highs Amid Rate Cut Optimism and Tariff Relief

Tuesday, 12 August 2025 — Taking Stock

📈 S&P 500: Breaks Above 6,400 for First Time

  • Closing Level: 6,427.02
  • Gain: +1.1%
  • Catalyst: Softer-than-expected U.S. CPI data (+2.7% YoY) boosted bets on a September rate cut, with 94% of traders now expecting easing.
  • Sector Drivers: Large-cap tech stocks led the charge, with Microsoft, Meta, and Nvidia all contributing to the rally.

💻 Nasdaq Composite & Nasdaq 100: Tech Titans Lead the Way

  • Nasdaq Composite: Closed at a record 21,457.48 (+1.55%)
  • Nasdaq 100: Hit a new intraday high of 23,849.50, closing at 23,839.20 (+1.33%)
  • Highlights:
    • Apple surged 4.2% after announcing a $600 billion U.S. investment plan.
    • AI optimism continues to fuel gains across the Magnificent Seven stocks.

Nasdaq 100 chart 12th August 2025

Nasdaq 100 chart 12th August 2025

🧠 Tech 100 (US Tech Index): Momentum Builds

  • Latest High: 23,849.50
  • Weekly Gain: Nearly +3.7%
  • Outlook: Traders eye a breakout above 24,000, with institutional buying accelerating. Analysts note a 112% surge in net long positions since late June.

🇯🇵 Nikkei 225: Japan Joins the Record Club

  • Closing Level: 42,718.17 (+2.2%)
  • Intraday High: 43,309.62
  • Drivers:
    • Relief over U.S. tariff revisions and a 90-day pause on Chinese levies.
    • Strong earnings from chipmakers like Kioxia and Micron.
    • Speculation of expanded fiscal stimulus following Japan’s recent election results.

🧮 Market Sentiment Snapshot

IndexRecord Level Reached% Gain YesterdayKey Driver
S&P 5006,427.02+1.1%CPI data, rate cut bets
Nasdaq Comp.21,457.48+1.55%AI optimism, Apple surge
Nasdaq 10023,849.50+1.33%Tech earnings, institutional buying
Tech 10023,849.50+1.06%Momentum, bullish sentiment
Nikkei 22543,309.62+2.2%Tariff relief, chip rally

📊 Editorial Note: While the rally reflects strong investor confidence, analysts caution that several indices are approaching technical overbought levels.

The Nikkei’s RSI, for instance, has breached 75, often a precursor to short-term pullbacks.

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Apple improves – with best figures since 2021

Apple accounts Q3

Apple has once again defied expectations, posting a record-breaking $94.04 billion in revenue for its fiscal third quarter ending 28th June 2025.

However, not all segments thrived. iPad revenue dipped to $6.58 billion, and wearables saw a decline to $7.4 billion. Still, Apple’s gross margins expanded to 46.5%, and net profit hit $23.4 billion.

Summary

📈 Record Sales Apple made $94.04 billion this quarter, its best performance since 2021. That’s a 10% jump from last year.

📱 Best-Selling Product iPhones were the star—bringing in $44.58 billion, up over 13%. Macs also did well, with $8.05 billion in sales.

💼 Services Boom Apple’s apps, subscriptions, and digital content made $27.42 billion, a new high.

📉 Weaker Spots iPad sales fell to $6.58 billion, and wearables (like AirPods and Apple Watch) dropped to $7.4 billion.

💰 Profits & Payouts Apple earned $23.43 billion in profit and will pay shareholders a $0.26 dividend on 14th August.

🌍 Big Changes To avoid tariff issues, Apple is shifting production to places like India and Vietnam. It spent $800 million on tariffs this quarter, with more expected.

🧠 Looking Ahead Apple is going big on AI, with over 20 new features and a smarter Siri on the horizon.

Apple one-year share price chart

Apple one-year share price chart
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AI creates paradigm shift in computing – programming AI is like training a person

Teaching or programing?

At London Tech Week, Nvidia CEO Jensen Huang made a striking statement: “The way you program an AI is like the way you program a person.” (Do we really program people or do we teach)?

This marks a fundamental shift in how we interact with artificial intelligence, moving away from traditional coding languages and towards natural human communication.

Historically, programming required specialised knowledge of languages like C++ or Python. Developers had to meticulously craft instructions for computers to follow.

Huang argues that AI has now evolved to understand and respond to human language, making programming more intuitive and accessible.

This transformation is largely driven by advancements in conversational AI models, such as ChatGPT, Gemini, and Copilot.

These systems allow users to issue commands in plain English – whether asking an AI to generate images, write a poem, or even create software code. Instead of writing complex algorithms, users can simply ask nicely, much like instructing a colleague or student.

Huang’s analogy extends beyond convenience. Just as people learn through feedback and iteration, AI models refine their responses based on user input.

If an AI-generated poem isn’t quite right, users can prompt it to improve, and it will think and adjust accordingly.

This iterative process mirrors human learning, where guidance and refinement lead to better outcomes.

The implications of this shift are profound. AI is no longer just a tool for experts – it is a great equalizer, enabling anyone to harness computing power without technical expertise.

As businesses integrate AI into their workflows, employees will need to adapt, treating AI as a collaborative partner rather than a mere machine.

This evolution in AI programming is not just about efficiency; it represents a new era where technology aligns more closely with human thought and interaction.

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Tech stocks propel market rally amid Trump’s tariff pause

Stocks move back up

On Monday 14th April 2025, the stock market experienced a notable mini rally, driven by the tech sector’s resurgence following a weekend announcement of a temporary tariff pause.

President Trump’s decision to exempt smartphones, computers, and other electronics from steep tariffs provided a much-needed reprieve for the industry, sparking optimism among investors.

Major tech companies like Apple, Nvidia, and Amazon saw significant gains, with Apple shares surging by 7.5%. The Nasdaq Composite, heavily weighted with tech stocks, climbed 1.9%, while the S&P 500 rose 1.5%.

This rally marked a stark contrast to the volatility of the previous week, where tariff uncertainties had sent shockwaves through the market.

The tariff pause, although temporary and restricted to 20%, helped to alleviate immediate concerns about rising costs for consumers and businesses.

Importers were spared from choosing between absorbing higher expenses or passing them on to customers. This relief was particularly impactful for companies reliant on Chinese manufacturing, as the exemptions covered a wide range of tech products.

Market analysts noted that the rally was not just a reaction to the tariff news but also a reflection of the tech sector’s resilience.

Despite facing challenges earlier in the year, tech companies have continued to innovate and adapt, maintaining their position as a driving force in the U.S. and world economies.

However, the rally’s sustainability remains uncertain. The administration’s mixed messages about future tariffs have left investors cautious.

While Monday’s gains were encouraging, the broader market continues to grapple with the unpredictability of trade policies.

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Dow drops 2200 points Friday 4th April 2025 – S&P 500 loses 10% in 2 days as Trump’s tariff rout deepens – just two days after ‘Liberation Day!’

Stocks down

The stock market was smashed for a second day Friday 4th April 2025 after China retaliated with new tariffs on U.S. goods, sparking fears President Donald Trump has ignited a global trade war that will lead to a global recession.

Stock market damage

The Dow Jones Industrial Average dropped 2,231.07 points, or 5.5%, to 38,314.86 on Friday 4th April 2025, the biggest decline since June 2020 during the Covid-19 pandemic.

This follows a 1,679-point decline on Thursday 3rd April 2025 and marks the first time ever that it has shed more than 1,500 points on consecutive days.

The S&P 500 collapsed 5.97% to 5,074.08, the biggest decline since March 2020. The benchmark shed 4.84% on Thursday 3rd April 2025 and is now down more than 17% off its recent high.

The Nasdaq Composite, home to many well-known tech companies that sell to China and manufacture there as well, dropped 5.8%, to 15,587.79.

This follows a nearly 6% drop on Thursday 3rd April 2025 and takes the index down by 22% from its December 2024 record – pushing it into a bear market.

The selling was wide ranging with only 14 members of the S&P 500 higher on the day. Major market indexes closed at their lows of the session.

China’s commerce ministry said the country will impose a 34% levy on all U.S. products, disappointing investors who had hoped countries would negotiate with Trump before retaliating.

Technology stocks led the massive rout Friday

Apple shares slumped 7%, bringing its loss for the week to 13%.

Nvidia dropped 7% during the session.

Tesla fell 10%.

All three companies have large exposure to China and are among the hardest hit from Beijing’s retaliatory tariffs.

The bull market is dead, and it was destroyed by self-inflicted wounds!

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Apple and Google shares fall after China reportedly launches probes into Apple App Store practices and Google’s anti-trust issues

Google and Apple probed

China Launches Probes into Google and Apple Over Antitrust Concerns

China has recently initiated investigations into both Google and Apple, raising concerns over potential antitrust violations.

The State Administration for Market Regulation (SAMR) is considering whether to formally investigate Apple’s App Store practices, particularly focusing on the fees Apple charges and its policies that block third-party payment providers. This move has already caused Apple’s shares to fall.

In addition to the probe into Apple, China has also opened a separate investigation into Google, although details about the focus of this investigation have not been disclosed. These probes come at a time when trade tensions between the U.S. and China are escalating under President Donald Trump’s administration.

Apple’s app store under scrutiny

Apple’s App Store has been under scrutiny globally, with regulators in Europe recently forcing the company to open up its App Store under the Digital Markets Act, allowing non-Apple companies to offer app stores and app developers to use third-party payment systems.

If the China probe goes ahead, it would pose further challenges for Apple in one of its largest markets, where it is already facing stiff competition from local companies such as Huawei.

Google

Google, on the other hand, has not yet commented on the specifics of the investigation, but the move highlights the increasing regulatory pressures faced by U.S. tech giants in China.

Both companies will need to navigate these investigations carefully as they continue to operate in a highly competitive and regulated environment.

The outcome of these probes could have significant implications for the tech industry, potentially leading to changes in how these companies operate in China and other markets.

As the investigations unfold, the world will be watching closely to see how Google and Apple respond to these regulatory challenges.

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Apple shares rise as services revenue compensates for iPhone miss

Artificial Intelligence

Apple’s shares recently rose by 3% despite a decline in iPhone sales, thanks to a significant boost in services revenue.

The company’s overall revenue for the first fiscal quarter of 2025 reported an increase of 4% to $124.3 billion, surpassing Wall Street’s expectations.

However, iPhone sales fell short of estimates, totalling $69.14 billion compared to the expected $71.03 billion.

The services division, which includes subscriptions, warranties, and licencing deals, reported a revenue of $26.34 billion, a 14% increase from the same period last year. This growth in services revenue helped offset the decline in iPhone sales and contributed to the positive market response.

Apple CEO Tim Cook reportedly highlighted that iPhone sales were stronger in countries where Apple Intelligence is available.

The company reportedly plans to release additional languages for Apple Intelligence in April 2025, including a version in simplified Chinese.

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Trump announces massive U.S. AI investment backed by Oracle, OpenAI and Softbank

U.S. AI investment

President Donald Trump announced a joint venture with OpenAI, Oracle and Softbank to invest billions of dollars in artificial intelligence infrastructure in the U.S.

The project, dubbed Stargate, was unveiled at the White House by Trump, Softbank CEO Masayoshi Son, OpenAI CEO Sam Altman and Oracle co-founder Larry Ellison.

The executives committed to invest an initial $100 billion and up to $500 billion over the next four years in the project, which will be set up as a separate company.

Softbank’s Son had reportedly already promised a four-year, $100-billion investment when he recently visited then-President-elect Trump at his Mar-a-Lago resort.

And this new AI investment is over and above the investments from the likes of Microsoft, Google, Apple, Anthropic and many others already in progress.

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Apple launches its Apple Intelligence – ChatGPT integration with Siri

Apple Intelligence

Apple has finally rolled out updates for iPhone on Wednesday 11th December 2024, iPad, and Mac software, featuring the highly anticipated ChatGPT integration with Siri.

The integration is activated when Siri is posed with complex questions. If a question is deemed more suitable for ChatGPT by Apple’s software, Siri will request user consent to utilise the OpenAI service. Apple has incorporated privacy safeguards into this feature, ensuring that OpenAI does not retain any requests. This integration employs the GPT-4o model from OpenAI.

No OpenAI account is necessary for Apple users to engage with the ChatGPT feature, although Apple offers paid upgrades for ChatGPT. Additionally, ChatGPT can be accessed via certain text menus.

The launch of iOS 18.2 marks a pivotal point for Apple, which is banking on Apple Intelligence to spearhead the marketing for its iPhone 16 series. Apple Intelligence encompasses a range of artificial intelligence capabilities. The ChatGPT integration was initially revealed in June 2024.

The inaugural segment of Apple Intelligence was introduced in October 2024, including text editing tools capable of proofreading or rephrasing, a revamped Siri interface that illuminates the entire phone screen, and a summary of notifications.

Next year, Apple plans to introduce a further update to Apple Intelligence, promising substantial enhancements to Siri that will enable it to perform tasks within apps.

Many investors are of the opinion that the addition of features to Apple Intelligence will enhance iPhone sales, initiate an upgrade cycle, and possibly establish Apple as a frontrunner in consumer AI.

This integration marks a significant triumph for OpenAI by showcasing its flagship product to millions of iPhone users. The financial details of the partnership between Apple and OpenAI remain undisclosed.

To install and utilise Apple Intelligence, users must have an iPhone 15, iPhone 15 Pro, or any iPhone 16 model, despite the fact that ChatGPT integration mainly operates on cloud servers – iPhone owners can enable software updates in the General tab of the Settings app.

Upon updating to the newest Apple software, users will be prompted to configure Apple Intelligence. Their devices will have to download substantial files, including Apple’s AI models, which are necessary for the service’s functionality.

The updates also bring Apple’s image creation app, named Playground, which generates images from people’s descriptions or prompts, and Image Wand, a tool that lets users edit out objects or imperfections from photos.

Apple finally issue a version of AI – not just any AI but Apple Intelligence, whatever that really means.

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Apple, Amazon and Intel all post positive results 31st October 2024

Apple

Apple’s fourth-quarter results surpassed Wall Street forecasts for revenue and earnings per share. However, net income declined due to a one-time charge related to a tax settlement in Europe.

iPhone sales and overall sales both rose by 6%.

Apple one year stock chart

Amazon

Amazon’s shares soared in after-hours trading following the announcement of earnings and revenue that exceeded expectations. The firm’s cloud services and advertising divisions demonstrated significant expansion.

Amazon one year stock chart

Intel

Intel has reported earnings that surpassed expectations and provided improved guidance. The company is currently undergoing a significant restructuring initiative.

Intel one year stock chart

However, Intel has now lost over half its market value.

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Apple smartphones return to top 5 rank in China following iPhone 16 release

Apple smartphones

Apple has returned to the top five smartphone vendors in China’s market during the third quarter, lifted by the release of the iPhone 16, according to data.

Apple’s shipment growth remained steady year-on-year in the Q2, securing the company a second-place rank by market share in Q3.

Following Apple, Huawei held the third position with a 15.3% market share, as per reported data. Despite this, Huawei’s smartphone shipments in China saw a significant increase of 42% year-on-year.

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Nasdaq hits new all-time high – Tesla enjoys another great day

Nasdaq index at new high!

The Nasdaq Composite climbed to an all-time high on Friday 25th October 2024, boosted by BIG tech stocks.

The tech-heavy index rose 0.56% to 18,518.61

The tech-heavy Nasdaq Composite index rose 0.56% to 18,518.61

Tech stocks boosted the market ahead of their upcoming earnings. Nvidia added 0.8%, and shares of Meta Platforms, Amazon and Microsoft were also higher.

Some analysts are suggesting it may be time to short Amazon and Apple as they head into earnings season? Let’s see.

Tesla helped boost the Nasdaq as its stock climbed to close at a 13-month high, sustaining its rally post-earnings.

Tesla enjoyed its best market day since 2013, the stock rose more than 3% on Friday 25th October 2024, closing at its highest since September 2023.

Tesla 5-day stock chart as of 25th October 2024

Tesla 5-day stock chart as of 25th October 2024
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Nvidia hits new record high with new $3.4 trillion market cap

AI chips

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.

And to think… just 6 weeks ago Nvidia hit the news with this headline: Nvidia $279 billion market cap wipeout — the biggest in U.S. history for just ONE company.

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.

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Ireland’s 13-billion-euro Apple windfall

Apple

Ireland stands to gain a substantial financial boost following a pivotal ruling by the European Union’s highest court, which requires Apple to pay €13 billion (around $14 billion) in back taxes. Initially resisted by Dublin, this windfall is now seen as a transformative chance for the nation.

The settlement’s roots trace back to 2016 when the European Commission deemed that Apple had received illegal state aid via favorable tax deals with Ireland. After prolonged legal disputes, the EU court’s verdict has concluded the issue, mandating Apple to settle the substantial amount.

The Irish government has devised a strategic plan to capitalise on this unforeseen fiscal advantage. The funds are designated for various key sectors to promote sustained economic growth and societal welfare. A considerable portion is allocated for infrastructure enhancements, including transport network upgrades and sustainable energy initiatives, in line with Ireland’s green economy transition goals.

The windfall will also bolster progress in healthcare and education. Plans are in place to improve healthcare facilities and services, enhancing access and care quality for residents. In education, investments will focus on updating educational institutions, fostering research and innovation, and preparing the workforce with future-oriented skills.

The financial influx also presents a chance to tackle housing deficits, with investments directed towards boosting affordable housing availability and ameliorating living standards nationwide. This comprehensive strategy aims to forge a more equitable and thriving society.

In essence, Ireland’s $14 billion windfall from Apple offers an exceptional opportunity to effectuate considerable improvements across diverse sectors, potentially reshaping the country’s economic and social fabric for generations.

It’s quite remarkable how a fortune from just ONE company can be utterly transformational for an entire country.

As of September 2024, Apple’s market cap sat at around $3.4 trillion. This makes Apple the most valuable company in the world by market cap.

As of September 2024, Apple’s market cap sat at around $3.4 trillion. This makes Apple the most valuable company in the world by market cap.

Just so you know, 14 billion of 3.4 trillion equals about 0.41%. A small drop in a massive financial ocean.

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Apple loses EU court battle over €13 billion tax bill in Ireland

EU court ruling

Europe’s highest court ruled against Apple on Tuesday 10th September 2024, concluding a decade-long legal dispute over the company’s tax dealings in Ireland.

The case dates back to 2016, when the European Commission directed Ireland to reclaim up to 13 billion euros ($14.4 billion) in unpaid taxes from Apple.

The Commission had determined that Apple benefited from ‘illegal’ tax advantages in Ireland for twenty years.

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Google’s advertising business goes on trial

Google

The U.S. government is targeting the heart of Google’s vast wealth – its highly profitable monopolising advertising technology business

A trial scheduled to begin on Monday 9th September 2024 will scrutinise the Department of Justice’s (DoJ) claims that Alphabet, the parent company of Google, is unlawfully sustaining a monopoly in the marketplace.

In the previous year, the firm amassed over $200 billion (£152 billion) through the placement and sale of online advertisements.

Alphabet attributes its success to the ‘effectiveness’ of its business. Conversely, prosecutors contend that the company has leveraged its market control to stifle competition.

The legal action, launched by the Department of Justice (DoJ) and several states in 2023, charges Google with dominating the digital advertising market and employing its influence to obstruct innovation and competition.

Google asserts that it is simply one of numerous companies that arrange digital advertisement placements for consumers.

The corporation argues that the digital advertising industry is increasingly competitive, citing the growing advertising revenues of entities like Apple, Amazon, and TikTok as proof, as mentioned in a blog post responding to the DoJ’s lawsuit in 2023.

The contentions will be laid out before the U.S. District Judge who is expected to deliver a verdict.

This trial comes on the heels of a notable decision in a separate antitrust lawsuit against Google by the Justice Department last month. Judge Amit Mehta ruled that Google had illegally stifled competition in its online search services.

He reportedly stated that, “Google is a monopolist and has acted as such to maintain its monopoly.”

Alphabet one year chart

Alphabet one year chart
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Berkshire Hathaway at $1 trillion market cap – the first U.S. non tech company to do so

$1 trillion club

Warren Buffett’s Berkshire Hathaway achieved a $1 trillion market capitalisation on Wednesday 28th August 2024, becoming the first non-technology company in the U.S. to reach this business accolade.

The shares of the conglomerate, headquartered in Omaha, Nebraska, have surged over 28% in 2024, outperforming the S&P 500’s 18% increase. This major achievement came just two days before Buffett, often referred to as the ‘Oracle of Omaha,’ was due to celebrate his 94th birthday.

On Wednesday, the company’s shares rose by 0.8% to $696,502.02, surpassing the $1 trillion mark, as reported. The shares soared even further in the subsequent trading session.

One year chart for Berkshire Hathaway

One year chart for Berkshire Hathaway

The milestone serves as a testament to the firm’s financial robustness and the value of its franchise. It is particularly noteworthy given that Berkshire stands as one of the few remaining conglomerates today.

Buffett, serving as chairman and CEO, assumed command of Berkshire, a floundering textile enterprise, in the 1960s. He revolutionised the firm into a vast conglomerate covering insurance, railroads, retail, manufacturing, and energy sectors, boasting an unparalleled balance sheet and a formidable cash reserve.

Unlike the six other companies in the trillion-dollar club (Apple, Nvidia, Microsoft, Alphabet, Amazon and Meta), Berkshire is known for its old-economy focus as the owner of: BNSF Railway, Geico Insurance and Dairy Queen. (Although its sizable Apple position has helped drive recent gains.)

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How frothy is the AI data centre market for investors?

AI market froth?

Nvidia investors have been on a rocket ride to the stars. But recently they have come back down to Earth, and it has become more of a roller coaster ride.

Benefiting significantly from the artificial intelligence surge, Nvidia’s market cap has increased approximately ninefold since late 2022 – a massive market cap gain.

However, after achieving a peak in June 2024 and momentarily claiming the title of the world’s most valuable public company, Nvidia then experienced close to a 30% decline in value over the subsequent seven weeks, resulting in an approximate $800 billion loss in market capitalisation.

Currently, the stock is experiencing a rally, bringing it within approximately 6% of its all-time peak. The chipmaker surpassed the $3 trillion market cap milestone in early June 2024, aligning with Microsoft and Apple. The question remains whether the company can reclaim and sustain that title.

Investors are closely monitoring Nvidia’s forecast for the October quarter, with the company anticipated to report a growth of approximately 75%. Positive guidance would imply that Nvidia’s affluent clients continue to invest heavily in AI development, whereas a lacklustre forecast might suggest that infrastructure investment is becoming excessive.

Should there be any signs of diminishing demand for AI or if a major cloud customer is reducing spending, it could lead to a notable decline in revenue.

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Judge ruling says Google’s monopoly of online searches is illegal

Judge

Too much monopolistic power held by too few

A U.S. judge has ruled that Google illegally maintained a monopoly in online searches and related advertising. The lawsuit, brought by the Department of Justice, charged Google with controlling around 90% of the online search market.

It was reportedly noted by the judge that Google’s billions of dollars in investments to become the default search engine on smartphones and browsers could be anticompetitive.

The decision, issued on Monday 5th August 2024, could potentially change how tech giants operate.

It was reported that in his extensive 277-page decision, Judge Mehta remarked, “Google has acted as a monopolist and engaged in anticompetitive practices to maintain its monopoly.”

This represents a significant victory for federal antitrust enforcers who have pursued similar cases against other leading technology companies for illegal monopolistic behaviours.

Companies like Meta Platforms, which operate Facebook and WhatsApp, as well as companies like Amazon and Apple., have also faced lawsuits from federal regulators.

The judgment comes after a 10-week trial where it was argued that Google’s substantial payments to remain the primary search engine have impeded the competition’s ability to challenge effectively.

This is a seismic shift in the way search engines and advertising may operate in the future. Already with the advent of AI, search engines look and feel different.

Recently, OpenAI launched ‘SearchGPT’ – and Microsoft have named it a competitor in the world of search engines.

Times are changing.

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$1 trillion rout as Markets punishes tech stocks

Stocks drop

The seven most valuable U.S. tech companies experienced a combined loss of $1 trillion in market value at the start of Monday’s trading session – 5th August 2024

The Nasdaq declined over 3% following its sharpest three-week drop in two years.

Nvidia’s shares fell approximately 6%, while Apple’s dropped more than 4%.

On Monday, as the U.S. markets commenced trading, the market capitalization of the largest tech companies plummeted by about $1 trillion, exacerbating a decline that pushed the Nasdaq into correction territory the previous week.

Markets go up and markets go down

In early trade Nvidia’s market cap decreased by over $300 billion, but it swiftly regained about half of that loss. The chipmaker’s shares ultimately closed down 6.4%, equating to a $168 billion loss. Apple and Amazon saw their valuations fall by $224 billion and $109 billion at market open. Apple’s market cap finished 4.8% lower, a $162 billion decrease. Amazon’s valuation fell by 4.1% at closing, a $72 billion reduction.

Including significant drops in Meta, Microsoft, Alphabet, and Tesla, the top seven tech giants saw a $995 billion loss in market value in the initial moments of trading, although they did recover somewhat as the day went on.

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Berkshire Hathaway sold nearly half its stake in Apple

Sell stocks

Warren Buffett’s Berkshire Hathaway significantly reduced its Apple stake last quarter, a surprising decision from the investor known for his long-term focus.

The conglomerate, headquartered in Omaha, reported in its earnings filing that its investment in the tech giant was worth $84.2 billion at the end of the Q2, indicating it sold just over 49% of its Apple shares. Despite the sale, Apple remains Berkshire’s largest equity holding by a wide margin.

It was widely reported that the sale is part of a larger trend of asset liquidation by Buffett during the second quarter, with Berkshire Hathaway divesting over $75 billion in stocks, thereby increasing its cash reserves to a staggering $277 billion.

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Amazon, Intel, Meta, Nintendo, Apple, Snap, Qualcomm and others report – here’s a brief round-up

Reports summary 31st July 2024 -1st August 2024

Amazon offers weak guidance citing Olympics and the Trump assassination attempt as cause (consumers are distracted). However, Amazon’s cloud unit reports 19% revenue growth, topping estimates and a 20% increase in business in Q2. Amazon stocks pull back after guidance update.

Intel endures a 22% share plunge dragging down other global microchip stocks from TSMC, ASML to Samsung. Company to cut 15% of workforce, reports quarterly guidance miss.

Meta shares climb 6% on positive earnings data and good revenue forecast. Zuckerberg enthused over AI and how it’s helping create profits suggesting ‘Meta’s advertising growth is proof that BIG AI spending is already paying off.’ However, Meta’s Reality Labs posts $4.5 billion loss in second quarter.

Nintendo profit falls 55% as sales of its ageing Switch console plunge. Nintendo revenue and profit plunged in Q1 as sales of its ageing Switch console decline. Nintendo sold 2.1 million units of its Switch consoles, down 46% on the year. Investors are seeking news surrounding a successor to the Nintendo Switch console.

Apple sales climbed 5%, topping estimates as iPad and services revenue lift despite ongoing issues with iPhone sales slipping in China. Apple is spending more on AI but remains way behind its peers.

Snap shares plunge more than 20% on weak guidance.

Qualcomm beats estimates as phone microchip sales up 12%.

Samsung Q2 revenue and profit comes in above estimates amid strong AI demand.

AMD jumps 5% as global microchip stocks rally. Data centre sales doubled.