Nvidia Gains and Chinese Tech Stocks Sink | Bloomberg Technology
22 Aug 2024 (25 days ago)
Nvidia and the AI Boom
- Nvidia's stock price is nearing its record high of $35 per share, driven by anticipation surrounding its upcoming earnings report and the expectation that spending on AI will remain strong. (00:02:11)
- Jensen Huang is the CEO of Nvidia.
Tech Investments and Market Performance
- The NASDAQ Golden Dragon Index, which tracks Chinese tech companies, experienced pressure but is showing signs of rebounding.
- Texas Instruments, despite reducing capital expenditures, is viewed favorably by investors who believe this will improve the company's free cash flow.
- Microsoft and Alphabet are making significant capital expenditures in AI to establish a long-term presence in the field.
- Accenture, a leader in cloud computing, is investing $3 billion in AI and is expected to benefit as an implementer of the technology. (00:06:54)
- Walmart sold its stake in the Chinese e-commerce company JD.com, ending an eight-year partnership.
Ford's Electric Vehicle Strategy Shift
- Ford canceled its plans for a fully electric SUV due to profitability concerns, with the company projecting a $5.5 billion loss for its EV unit this year.
- Ford is transitioning to electric vehicles by leaning on hybrid technology and focusing on smaller electric vehicle production.
- Ford plans to release a medium-sized electric pickup truck in 2027 that uses lower-cost LFP batteries, making its total cost of ownership cheaper than traditional vehicles.
Cybersecurity and AI
- Abnormal Security, a cybersecurity company, uses artificial intelligence to combat the rising risks of AI in cybersecurity, focusing on understanding and detecting abnormal human behavior within enterprise systems. (00:20:26)
- Abnormal Security is planning on expanding its business into new markets internationally in Asia and Europe.
Automotive Industry Leadership Changes
- Uber has hired a former Tesla executive to oversee a shift to electric vehicles.
- A senior leader at Rivian is leaving the company to become head of manufacturing at Stellantis.
Chinese Economy and the Gaming Industry
- Chinese tech companies are struggling, particularly those exposed to consumption in China, as the broader economy faces challenges such as uncertain job prospects for youth and weak economic performance. (00:25:58)
- Alibaba, a barometer for Chinese economic health, reported a shrink in its main commerce business, highlighting the divergence between the US and Chinese economies.
- Black Myth Wukong, a Chinese-developed video game, has become a sensation, attracting two million players on its first day of release, signaling a potential resurgence in China's $40 billion gaming industry after years of regulatory scrutiny.
- Black Myth: Wukong, a single-player, offline PC game, is being considered a victory for Chinese game developers.
- The game had 29 million viewers out of 130 million total viewers of streamed games on August 20.
- Black Myth: Wukong’s theme is based on the popular Chinese legend, Journey to the West.
Kamala Harris and the Tech Industry
- Kamala Harris is from the Bay Area, has experience in tech, and has been an advocate and supporter of the tech industry for a long time. (00:36:45)
- Marlon Nichols believes that this election is about more than just tech, and that Kamala Harris is a better choice than the alternative with respect to human rights, freedom, and unifying the country.
MAC Venture Capital
- Marlon Nichols states that MAC Venture Capital has been a very successful fund, with roughly $600 million under management, making it the largest seed-stage fund in Los Angeles and one of the largest in the country.
SiriusXM and "Call Her Daddy" Deal
- SiriusXM signed a multiyear deal with Alex Cooper for her “Call Her Daddy” podcast and a network of shows.
- The deal gives SiriusXM exclusive rights to sell ads on the audio and video versions of Cooper’s shows. (00:41:27)
- SiriusXM’s stock performance was down 24% over the past year, but the company’s market capitalization increased by more than $800 million after the deal was announced.