Nvidia's Slide and Apple's EU Fines | Bloomberg Technology

25 Jun 2024 (6 months ago)

NVIDIA's Stock Performance and Valuation

NVIDIA's stock has been declining for three consecutive days, resulting in a loss of over $380 billion in market capitalization.
NVIDIA's valuation is being questioned due to its high price-to-sales ratio of over 20 times expected sales for the next 12 months.

Generative AI tools from companies like OpenAI and Microsoft Azure are not meeting the productivity expectations of businesses, leading to a decline in spending plans on AI.
The perception of AI as a general-purpose tool is misleading, as these tools have limitations and make mistakes, particularly with data security and generating reliable facts.

The AI arms race, driven by individuals like Sam Altman and the founder of Deep Mind, had ambitious goals of creating artificial general intelligence capable of solving complex problems.
Marketing AI as general-purpose tools has created a sense of paralysis among businesses, who struggle to identify specific use cases and integrate these tools effectively.
Businesses need time to experiment with AI tools and identify their value, similar to how individuals drove the adoption of smartphones in the workplace.

Parmy Olson's column from last week is recommended reading for insights on AI's potential impact.
Ayako Yoshioka discusses the fundamental, optimistic, and romantic views of AI's potential impact on humanity.

Apple faces potential billions of euros in new fines from the EU due to an ongoing conflict over its App Store rules.
The EU has charged Apple with non-compliance with the Digital Markets Act, specifically related to steering users to payments outside the App Store.
Apple is attempting to collect revenue from apps sideloading but not purchased from the App Store, which the EU disapproves of.
Apple's Vision Pro goes on sale in Hong Kong and China at the end of the week, but sales are not expected to take off until a cheaper version is released.
Apple is considering using Meta's and Google's underlying technology to give users more choice in search, which could help protect the company from regulatory scrutiny.

Canada is considering imposing a surtax on imports of Chinese-made electric vehicles.
Tencent's new mobile game has become a blockbuster hit, generating $70 million in revenue in just 30 days.
Amazon and F1 will debut a new AI feature during broadcasts to provide context and trivia to viewers.
Mitsubishi's president believes nuclear power will be necessary for achieving carbon neutrality and will be combined with carbon capture and hydrogen combustion.
Bitcoin has suffered one of its worst weeks of the year, with outflows from dedicated Bitcoin ETFs in the United States and pressure on crypto-related stocks.
Voodoo, known for its mobile gaming, acquired the social media platform BeReal for 500 million euros to diversify into consumer apps and provide BeReal with a platform for growth.
BuzzFeed is looking to sell "First We Feast," a media company known for its YouTube show "Hot Ones," with an asking price of over $70 million.
HSBC upgraded its rating for Polish video game maker CD Projekt, citing excitement around the upcoming release of the next Witcher game, "Polaris," expected in 2027.
A hacking group called Blacksuit, known for its operations in Russia and Eastern Europe, is believed to be behind the cyberattack on CDK Global, which has disrupted car sales across the U.S.