Nvidia's Rally and TikTok's Divest-or-Ban Bid | Bloomberg Technology

20 Jun 2024 (3 months ago)

Technology Sector Performance

The technology sector is experiencing a rally, with stocks pushing deeper into record territory.
Chip stocks are performing well, with Micron being the best performer on the Nasdaq 100.
Despite geopolitical risks and potential interest rate hikes, big tech companies continue to perform well.

The demand for AI and big data services is increasing across various sectors, including technology, banking, and healthcare.
Point72 Asset Management, led by Steve Cohen, is raising $1 billion for a hedge fund focused on artificial intelligence.
Cohen is bullish on AI and believes it will have a transformative impact on companies and industries.
Incredible Health, a platform used by over 1 million U.S. nurses and hospitals, has implemented AI features to increase interview requests by 20%.
Healthcare providers are exploring the use of AI for scheduling, administrative processes, and patient care to reduce burnout and improve nurse retention.
Waabi, a company working on applications of generative AI to the physical world, announces a $200 million raise in an oversubscribed Series A funding round.
Waabi aims to develop fully autonomous trucks by 2025, emphasizing its ability to progress faster and more capital efficiently compared to the rest of the industry.
Red Point Ventures has identified AI as a key trend in cloud infrastructure, with companies like Modul experiencing rapid growth by helping businesses put AI into production and build applications on top of it.

TikTok parent ByteDance is attempting to overturn the law requiring them to divest or be banned in the US.
ByteDance argues that the risks cited by lawmakers are hypothetical and is pushing for more information to be divulged to the public.
TikTok plans to present its case in court, arguing that the ban is unconstitutional and violates the freedom of speech of its 170 million users in the U.S.

Investors should consider being at least neutral, if not overweight, in the tech sector, but should also be aware of potential risks such as geopolitical issues and interest rate hikes.
Overconcentration in the S&P 500 is a concern, and investors should consider diversifying into international markets such as Europe and Japan.
OEMs (original equipment manufacturers) and the broader ecosystem should be considered when investing in the tech sector.

Best Buy is preparing for a significant product launch with the introduction of AI computers equipped with Microsoft's new Co-pilot AI.
Huawei is considering reducing fees on in-app purchases to 20%, undercutting Apple and Google's 30% fees.
NVIDIA insiders have sold over $700 million worth of shares this year as the company's stock continues to rise.
Creditors of Credit Suisse are trying to form a cooperation agreement to ensure they work together and avoid asset stripping.
Apple has reportedly halted work on its next high-end Vision headset, while continuing development on a more affordable version with fewer features.
The tech sector is experiencing mixed economic reports, with retail sales slowing down but industrial production looking better.
The Federal Reserve is considering a more cautious approach to rate cuts this year, potentially impacting risk assets.
Chip companies like Micron are performing well, while EV companies like Fisker are struggling, with Fisker filing for bankruptcy.
Electric vehicle (EV) maker Rivian files for bankruptcy, causing a 48% drop in its stock price and dragging down other EV makers, including Tesla.
Elon Musk's X is looking to add Venmo-like payment features to its platform, potentially integrating payments with products and services within the app and enabling physical store purchases.