Tag: Artificial Intelligence

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U.S. introduces new microchip-related export controls

U.S. chip rules

The Biden administration is reportedly implementing new export controls on essential technologies, such as quantum computing and semiconductor materials, in response to China’s progress in the global chip market

These controls encompass quantum computers and their components, sophisticated chipmaking tools, semiconductor technologies, certain metal and metal alloy components and software, and high-bandwidth chips, which are vital for AI applications.

While the U.S. intensifies its measures to curb China’s expansion, there is noticeable hesitancy within the global industry.

The U.S. Department of Commerce issued new regulations on Friday, 6th September 2024, encompassing quantum computers and their components, sophisticated chipmaking tools, certain metal and metal alloy components and software, as well as high-bandwidth chips, which are vital for AI applications.

See report details here

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Qualcomm intensifies competition with Intel and AMD and others as the company introduces its newest AI PC chip

New AI chip from Qualcomm

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.

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Biggest one-day market capitalisation drop for a U.S. stock in history, and guess what… it was Nvidia

Nvidia

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.

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U.S. AI Safety Institute to evaluate OpenAI and Anthropic new AI models before release to the general public

U.S. AI Safety Inspection

On Thursday 29th August 2024, the U.S. AI Safety Institute announced a testing and evaluation agreement with OpenAI and Anthropic

This agreement reportedly grants the institute access to significant new AI models from each company before and after their public release.

Recently, several AI developers and researchers have voiced concerns regarding safety and ethics within the growing profit-driven AI industry.

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Nvidia reports 122% revenue growth

Data centre

Nvidia has announced earnings surpassing Wall Street forecasts and has issued guidance for the current quarter that exceeds expectations.

As the artificial intelligence boom continues, Nvidia remains a major beneficiary. Despite a stock price dip, after trading hours, the stock has risen approximately 150% this year. The question remains whether Nvidia can sustain this growth trajectory.

Nvidia said it expects about $32.5 billion in current-quarter revenue, versus $31.7 billion expected by analysts, according to analysis That would be an increase of 80% from a year earlier.

Revenue continues to surge, rising 122% on an annual basis during the quarter, following three straight periods of year-on-year growth in excess of 200%.

Nvidia’s data centre business, which encompasses its AI processors, saw a 154% increase in revenue from the previous year, reaching $26.3 billion and representing 88% of the company’s total sales.

However, not all these sales were from AI chips. Nvidia reported that its networking products contributed $3.7 billion in revenue.

The company primarily serves a select group of cloud service providers and consumer internet firms, including Microsoft, Alphabet, Meta, and Tesla. Nvidia’s chips, notably the H100 and H200, are integral to the majority of generative AI applications, like OpenAI‘s ChatGPT.

Nvidia also announced a $50 billion stock buyback.

Nvidia shares dropped close to 5% in after-hours pre-market trade (29th August 2024).

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Company says it can cut data centre energy use by 50% as AI boom places increased strain on power grids

Power hungry data centre

Major technology corporations such as Microsoft, Alphabet, and Meta are channelling billions into data centre infrastructures to bolster generative AI, which is causing a spike in energy demand.

Sustainable Metal Cloud has announced that its immersion cooling technology is 28% less expensive to install compared to other liquid-based cooling methods and can cut energy use by up to 50%.

The surge in artificial intelligence has increased the need for more robust processors and the energy to cool data centres.

This presents an opportunity for Sustainable Metal Cloud, which runs ‘sustainable AI factories’ consisting of HyperCubes located in Singapore and Australia.

These HyperCubes house servers equipped with Nvidia processors immersed in a synthetic oil known as polyalphaolefin, which is more effective at dissipating heat than air. The company claims this technology can reduce energy consumption by as much as 50% when compared to the conventional air-cooling systems found in most data centres.

Additionally, the Singapore-based company states that its immersion cooling technology is more cost-effective to install by 28% than other liquid cooling options. The HyperCubes are modular and can be integrated into any data centre, utilising spaces that are currently unoccupied within existing facilities.

What is a Hypercube?

  • Structure: A hypercube topology connects nodes in a way that each node is connected to others in a manner similar to the geometric hypercube. For example, in a 3-dimensional hypercube (a cube), each node is connected to three other nodes.
  • Scalability: This structure allows for efficient scaling. As the number of dimensions increases, the number of nodes that can be connected grows exponentially.
  • Fault Tolerance: Hypercube networks are known for their robustness. If one connection fails, there are multiple alternative paths for data to travel, ensuring reliability.

Benefits in data centres

  • High Performance: The multiple pathways in a hypercube network reduce latency and increase data transfer speeds, which is crucial for big tech companies handling vast amounts of data.
  • Efficient Resource Utilisation: The topology allows for better load balancing and resource allocation, optimising the performance of data centres.
  • Flexibility: Hypercube networks can easily adapt to changes in the network, such as adding or removing nodes, without significant reconfiguration.
  • Big Tech Companies: Companies like Google, Amazon, and Microsoft likely use hypercube topologies in their data centres to ensure high performance and reliability.
  • High-Performance Computing (HPC): Hypercube networks are also used in supercomputers and other HPC environments where efficient data transfer is critical.
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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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Microsoft to release Windows Recall AI search feature for testing as soon as October 2024

AI enabled local device

Microsoft announced on Wednesday 21st August 2024 that it will release the contentious Recall AI search feature for Windows users to test starting in October

Recall captures screenshots of on-screen activity, enabling users to search for previously seen information. Security experts raised immediate concerns about the potential risks of Windows capturing images automatically without user consent. In response, researchers developed open-source software demonstrating how attackers could easily access personal information.

Microsoft addressed these concerns in June 2024, stating that Recall would be disabled by default and promising security improvements for the feature.

While Microsoft has not provided a specific timeline for a wider release, it has introduced a new category of Windows PCs, termed Copilot+ PCs, which meet the system requirements for Recall. These PCs, produced by various manufacturers, are designed to handle AI workloads, and Microsoft has demonstrated Recall operating on these devices.

*Manufacturers are eager to demonstrate that AI models can run on local PCs, offering an alternative to cloud-based servers from companies like OpenAI. Following this trend, Apple has launched MacBooks capable of running AI models, and Microsoft’s latest Surface Pro is also a Copilot+ PC with local AI capabilities.

The timing of Recall’s broader release could be pivotal, as consumer interest in new computers may spike during the holiday season if Microsoft extends Recall to all compatible devices by that time.

*Is this a move away from AI cloud-based operations to some extent? AI tasks can easily be run in the cloud – why do we need an AI enabled device?

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OpenAI cements deal with Vogue owner Condé Nast

Magazine AI data

OpenAI has partnered with the global magazine conglomerate Condé Nast to enable ChatGPT and its search engine, SearchGPT, to showcase content from renowned publications such as Vogue, The New Yorker and GQ.

The agreement represents the most recent in a series of deals made by OpenAI with prominent media companies.

The material generated by media organizations is coveted by tech companies for training their AI (Artificial Intelligence) models.

Several media companies, such as the New York Times and the Chicago Tribune, have opposed this practice and have pursued legal measures to safeguard their content.

The financial details of the contract between OpenAI and Condé Nast were not revealed.

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Slower and smaller-than-expected rate cuts. A slowing U.S. economy and a potential AI bubble – does this all add up to a coming bear market?

Witches' stocks cauldron

The stock markets mix of toil and trouble is in the cauldron ready for a bear market in 2025, if not before.

Why?

  • Fed to resist reducing rates to the market’s desired 3.50%.
  • Profits unlikely from now on to fulfill expectations, because the U.S. economy is slowing.
  • AI sector is in or close to ‘bubble territory’.
  • Debt.
  • Geopolitical concerns.

These concerns are now all combining, and it will likely add-up to a bear market of around 25% in 2025 (this is my best guess).

Remember – make your own decisions and always, always do your own careful research. Seek professional financial advice if in doubt.

RESEARCH! RESEARCH! RESEARCH!

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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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Short-sighted policy U-turn as the UK Labour government cancels £1.3 billion of computing projects

AI supercomputer mainframe

A real set-back for UK AI global ambition

The new Labour government has withdrawn £1.3bn in funding previously pledged by the Conservatives for technology and Artificial Intelligence (AI) initiatives.

This includes £800m allocated for the development of an exascale supercomputer at Edinburgh University and an additional £500m for the AI Research Resource, which provides computing power for AI. These funds were announced less than a year ago.

The Department for Science, Innovation and Technology (DSIT) stated that although the funds were promised by the former administration, they were not included in its budget. The decision has faced criticism from some within the industry.

Another blow for the UK’s homegrown tech sector.

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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.

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Microsoft says OpenAI is now a competitor search and AI

AI competition

Microsoft’s list of competitors, which is updated regularly, now features OpenAI, previously a long-term strategic ally.

This development follows OpenAI’s announcement of a search engine prototype.

As OpenAI’s exclusive cloud provider, Microsoft leverages OpenAI’s AI models for products aimed at commercial clients and consumers. Microsoft, OpenAI’s largest investor, has reportedly invested some $13 billion in the firm.

Microsoft’s filing lists OpenAI, the entity behind the ChatGPT chatbot, as a competitor in AI solutions, as well as in the realms of search and news advertising. OpenAI recently unveiled a search engine prototype named SearchGPT.

However, recent developments suggest a shift, with both companies encroaching on each other’s domains.

While some opt to directly pay OpenAI for model access, others utilise Microsoft’s Azure OpenAI Service. Additionally, Microsoft offers the Copilot chatbot as an alternative to ChatGPT, accessible via the Bing search engine and Windows operating systems.

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Microsoft shares drop on cloud miss as Azure revenue disappoints

In the cloud

Microsoft reported better-than-expected earnings and revenue for Q4

In extended trading on 30th July 2024, the stock experienced a quick decline as attention was drawn to the less-than-expected Azure revenue, despite management’s forecast for growth in the upcoming quarters.

The company’s total revenue saw a 15% increase compared to the previous year.

Despite surpassing earnings and revenue expectations, Microsoft’s shares dropped by up to 7% in extended trading on Tuesday, with investors concentrating on the underwhelming cloud revenue. However, executives offered a positive outlook, anticipating an acceleration in cloud growth during the first half of 2025.

Microsoft one day chart 30th July 2024

Microsoft one day chart 30th July 2024

Microsoft’s cloud division holds significant interest for investors, as it competes with Amazon Web Services (AWS) and Google in the artificial intelligence (AI) work arena. These three tech giants are pouring substantial resources into enhancing AI capabilities, aiming to attract both startups and established companies as generative AI technology swiftly progresses.

For Amazon, AWS has served as a vital profit centre for the past ten years.

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Apple’s iPhone crown slips again in China

Mobile

Apple has been ousted from the top five smartphone vendors in China during Q2, as local brands like Huawei continue to escalate competition

Apple is no longer among the top five smartphone vendors in China as local brands take over the market.

Apple’s market share in China has declined, falling to 14% in the second quarter from 15% in the first quarter and 16% 2023.

For the first time in history, domestic vendors have taken over all top five positions in China.

According to reports, incorporating Apple’s Intelligence systems in its products in mainland China will be crucial over the next 12 months, as Chinese brands are rapidly integrating generative AI into their designs.

This is not good news for Apple. The company is facing challenges, notably lagging behind in the AI innovation race, and compounded by a rapidly falling share of the mobile market in China.

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An important rare Earth metal

Tungsten rare Earth metal

Tungsten is a critically important rare earth metal, renowned for its unique and valuable properties.

Tungsten has the highest melting point among all metals, which makes it exceptionally suitable for high-temperature applications.

Key aspects of its importance

Industrial and technological applications

Tungsten is used in many industries where hardness, high density, high wear resistance, and high-temperature resistance are required. This includes mining, construction, energy generation, electronics, aerospace, and defence sectors. It is used in weapons, autos, electric car batteries, semiconductors and industrial machinery.

Fact: approximately 2Kg of tungsten goes into every electric vehicle.

Alloys

Metals are frequently alloyed with Tungsten to enhance their strength without substantially adding to their weight. This property is vital for uses like arc-welding electrodes and heating elements in high-temperature furnaces.

Significance

Tungsten is acknowledged as a critical metal because of its economic significance and the scarcity of its sources. It is reported that China produces the majority of the world’s tungsten, controlling approximately 80% of the supply of this rare earth metal.

Durability and flexibility

Tungsten’s durability, flexibility, and resistance to corrosion contribute to its popularity across various industries and applications. It ranks among the hardest and most resilient materials found in nature.

These characteristics render tungsten not just crucial but also indispensable for numerous high-tech applications. The rarity of tungsten and the intricate nature of its extraction and refinement processes enhance its value even further.

World suppliers of tungsten

According to Statista.com the global tungsten market was valued at over $5 billion USD in 2022. It’s projected to grow significantly, with estimates suggesting it could reach over $9.5 billion USD by 2030

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Nvidia rebounds after half a trillion market cap slump

Hot AI

To put this figure into some perspective, the loss is comparable to the GDP output of a small country, such as Norway, Singapore, or the UAE, for example.

Global semiconductor stocks experienced volatility on Tuesday following a decline in Nvidia’s shares from the previous trading sessions.

Shares of chip firms in Europe and Asia fell in early trade as investors reacted to Nvidia losing more than $500 billion in market capitalization over three trading days. Some of the stocks recouped losses, however, as shares in the U.S. chipmaking giant recovered around 6 – 6.5% as of Tuesday 25th June 2024.

This follows a significant drop in Nvidia’s share value, which fell 13% over three consecutive sessions from the record highs achieved on Thursday 20th June 2024.

On Monday 24th June 2024, Nvidia’s stock closed down 6.7%, marking its second-largest decline of the year, yet the shares began to recover in early trading on Tuesday 25th June 2024.

Last week, the company surpassed Apple and Microsoft to become the most valuable U.S. company, achieving a market capitalization of over $3.4 trillion. However, by the end of Monday, Nvidia’s market value had declined by more than $540 billion from its intraday record on Thursday 20th June 2024.

Nvidia reported that the demand for its highly sought-after artificial intelligence graphics processing units (GPUs) continues to be strong.

Companies such as Microsoft, Google, Amazon, and Meta are investing billions of dollars in these chips to enhance their data centres and cloud services.

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Nvidia slips by 13% in three days after momentarily becoming most valuable company

AI on fire

The Dow Jones Industrial Average gained as investors rotated out of ‘hot’ chip stocks, including Nvidia.

Nvidia shares fell a little under 7% on Monday 24th June 2024, the chipmaker’s third down day in a row. The stock is down 13% from its peak last week.

Other stocks that also experienced drops on Monday were some of the biggest gainers of late due to their exposure to the artificial intelligence (AI) feeding frenzy.

Investors may be taking profits and locking in gains in Nvidia and similar momentum stocks after a number of extremely busy trading months.

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Nvidia briefly surpassed the individual stock market values of Germany, France and the UK

Market Cap up

The little-known company, Nvidia, now stands alongside Apple and Microsoft in market cap valuation thanks to AI.

In just a little over a year it has all but tripled its market valuation and become a go to investment on Wall Street and around the world.

Nvidia’s market capitalization has recently individually surpassed the total value of the German, French, and U.K. stock markets.

With a market cap exceeding $3.4 trillion, Nvidia now stands above these significant European stock markets in valuation.

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Anthropic releases its most powerful AI Chatbot

Chatbot

Anthropic, a rival to OpenAI, unveiled Claude 3.5 Sonnet on Thursday, touting it as their most advanced AI model to date.

Claude has joined the ranks of widely used chatbots such as OpenAI’s ChatGPT and Google’s Gemini. Founded by former OpenAI research leaders, Anthropic has secured backing from major tech entities like Google, Salesforce, and Amazon. Over the past year, the company has completed numerous funding rounds, reportedly amassing approximately $7.3 billion.

The announcement comes after Anthropic introduced its Claude 3 series of models in March, followed by OpenAI’s GPT-4o in May 2024. Anthropic has stated that Claude 3.5 Sonnet, the initial model from the new Claude 3.5 series, surpasses the speed of its predecessor, Claude 3 Opus.

“It shows marked improvement in grasping nuance, humour, and complex instructions, and is exceptional at writing high-quality content with a natural, relatable tone,” the company said in a blog post.

It can also write, edit and execute code in a real time workspace open for the user to engage.

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The unloved stock market rally: exploring why many investors are hesitant to embrace this record-breaking run

Unloved rally

The unloved rally: A paradox

The S&P 500 and Nasdaq have been reaching all-time highs with remarkable frequency, notching nearly thirty record days in 2024, including four in the past week. Despite this stellar performance, a considerable number of investors remain hesitant. Let’s explore the reasons behind this paradox.

Lingering recession fears

The recollection of the 2022 bear market continues to trouble investors. The swift escalation of monetary policy by the Federal Reserve at that time generated widespread uncertainty and apprehension. This has led many investors to maintain a cautious stance, concerned that the past may repeat, even amidst a surging market. Maybe less of us expected the AI driven stock buying frenzy to scale such highs so quickly?

Scepticism

Investors are inherently sceptical. Amidst a relentless market rally, uncertainty emerges. Can this be sustained? Is a correction looming? This scepticism may hinder investors from wholeheartedly participating in a bull market, despite what the statistics indicate.

Emotional baggage

Investment isn’t solely a game of numbers; it’s equally a matter of emotions (although it shouldn’t be). Investors bearing the scars of past losses may find their emotional baggage weighing heavily on their decisions. The fear of experiencing another market crash can cloud rational judgement, leading them to forgo opportunities for potential gains.

The ‘easy money’

The stock market’s significant rise from the lows of 2022 has convinced some that the phase of ‘easy money’ is over. Investors who did not capitalize on the early stages of the rally might think they have missed out, causing hesitation to engage fully. That’s where I am right now – but waiting for a ‘pullback’.

Navigating the dilemma

For individuals caught between caution and the fear of missing out (FOMO), the following strategies could be considered.

Diversification

Distribute your investments among various asset classes. Diversification serves to reduce risk and acts as a safeguard against the unpredictability of the market.

Long-term perspective

Keep in mind that investing is akin to a marathon, not a sprint. It’s important to concentrate on long-term objectives instead of short-term market movements.

Education

Inform yourself about market cycles, historical patterns, and the effects of monetary policy. This should empower more informed decision-making.

Professional advice

Consult a financial advisor who can guide you based on your individual circumstances and risk tolerance.

Conclusion

The current stock market rally, though not widely embraced, offers both opportunities and challenges. Investors are tasked with finding the right balance between exercising caution and capitalizing on potential growth. As the market climbs, it’s essential to be aware of our biases and emotions. Only then can we approach the rally with a more informed viewpoint.

Disclaimer: This article provides general insights and should not be considered personalised financial advice. Always consult a professional before making investment decisions.

Remember: Always do your own diligent and careful research.

RESEARCH! RESEARCH! RESEARCH!

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Nvidia passes Microsoft in market cap – should investors be concerned about the meteoric rise?

GPU power for AI

Nvidia, traditionally recognised within the gaming community for its graphics chips, has become the world’s most valuable publicly traded company.

On Tuesday 18th June 2024, Nvidia’s shares rose by 3.6%, increasing its market cap to $3.34 trillion and overtaking Microsoft, now valued at $3.32 trillion. Earlier in the month, Nvidia’s valuation reached $3 trillion for the first time, surpassing Apple.

Nvidia $3.34 trillion market cap

Nvidia $3.34 trillion market cap

So far this year, Nvidia’s shares have surged over 170% and saw further gains after announcing first-quarter earnings in May 2024. Since the close of 2022, the stock has increased more than ninefold, paralleling the rise of generative artificial intelligence.

Apple’s shares dropped by 1.1% on Tuesday, resulting in a market value of $3.29 trillion for the tech giant.

Nvidia commands roughly 80% of the market share for AI chips in data centres, a sector that has expanded rapidly as companies like OpenAI, Microsoft, Alphabet, Amazon, and Meta have competed to acquire the necessary processors for constructing AI models and managing growing workloads.

In the latest quarter, Nvidia’s data centre business saw a 427% increase in revenue from the previous year, reaching $22.6 billion and comprising approximately 86% of the company’s total sales.

Established in 1991, Nvidia initially focused on hardware, selling gaming chips for running 3D games. The company has also ventured into cryptocurrency mining chips and cloud gaming services.

However, in the last two years, Nvidia’s stock has soared as investors recognised its pivotal role in the AI boom, a trend that continues to accelerate. This surge has increased the net worth of co-founder and CEO Jensen Huang to an estimated $117 billion, ranking him as the 11th richest individual globally, according to Forbes.

But is the rise too fast and is it time for a share price valuation adjustment in its meteoric rise, to bring it back down to Earth?

Nvidia share price one year chart 18th June 2024

Nvidia share price one year chart 18th June 2024
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Microsoft will postpone the release of the AI Recall tool amid security worries

Microsoft will not include Recall, the artificial intelligence tool designed to track user activity, in the upcoming release of the Copilot+ PC.

Concerns have been raised by industry experts about the possibility of hackers creating tools to extract user information.

Microsoft has reportedly announced that Recall will transition from a widely accessible tool to a preview feature exclusive to the Windows Insiders Program.

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Apple’s stock reaches a record high following the unveiling of its AI software

Apple Intelligence

Apple’s shares reached a new record high of approximately $207 per share on Tuesday 11th June 2024, surpassing the previous record set in December.

At its annual developer conference on Monday 10th June 2024, the company launched its highly anticipated venture into AI. Apple is playing catch-up in the AI race and this announcement cheered its loyal followers.

Analysts predict that the introduction of new AI features will prompt consumers to update their devices, as these features are exclusive to the latest models.

This is the perfect business model – new products driven by new features, this time it’s ‘AI’ for Apple Intelligence. I wish I thought of it – ‘A‘ for Apple and ‘I‘ or Intelligence. Not just any intelligence, this is Apple intelligence.

So, now we have Apple AI – let’s see what Apple’s version of AI really is.

Apple share price one year chart hitting $207 on 11th June 2024

Apple share price one year chart hitting $207 on 11th June 2024
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S&P 500 and Nasdaq close at new all-time highs again

S&P 500 and Nasdaq all at new highs!

The S&P 500 and Nasdaq Composite reached new closing highs on Tuesday 11th June 2024, propelled by Apple as the tech giant’s stock hit a record itself.

The S&P 500 index climbed to a new high to close at 5375, while the Nasdaq Composite finished the day at 17343. Both indices also hit new intraday highs. However, the Dow Jones Industrial Average fell by around 120 points to close at 38747.

S&P 500 reaches new all-time high on 11th June 2024

S&P 500 reaches new all-time high on 11th June 2024

Nasdaq Composite hits new all-time high on 11th June 2024

Investors seemed to be cashing in on Nvidia, a leader in artificial intelligence, and shifting focus to Apple, which recently introduced new features likely to drive a surge in iPhone upgrades.

Apple’s stock reached a new high during the trading session, its first since December 2023, with around a 7% increase. Nvidia’s stock declined by 0.7% as some profit taking ensued.