An Amazon Web Services evidence center in Stone Ridge, Virginia, US, on Sunday, July 28, 2024.
Nathan Howard | Bloomberg | Getty Images
This backfire is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to give a leg up on everything they need to know, no matter where they are. Like what you see? You can subscribe here.
What you scarcity to know today
Falling from highs
U.S. stocks mostly fell Wednesday. The S&P 500 lost 0.19% and the Dow Jones Industrial Usual slipped 0.7%, after scaling record highs earlier in the session. The Nasdaq Composite closed near the flatline. Europe’s regional Stoxx 600 forefinger retreated 0.11%. The Stoxx Europe 600 Bank Index fell 0.73% as investors monitored UniCredit’s budding merger with Commerzbank.
Google vs. Microsoft
Google on Wednesday filed an antitrust complaint with the European Commission, the managing director arm of the European Union, over Microsoft’s practices in the cloud computing industry. Google alleged that Microsoft applies unfair licensing contracts to “lock in” clients and exert control over the cloud market.
Done selling Nvidia
Nvidia CEO Jensen Huang is done drummer the company’s stock for now. In March, Huang set out a plan to sell up to six million Nvidia shares by first quarter of 2025. He has hit that beginning ahead of schedule. Separately, AI chips like those Nvidia manufactures could face a global shortage as requisition ramps up, according to a Bain & Company report.
Turning VR into reality
Meta took another step in alter b transferring virtual reality part of our everyday life. The company’s Reality Labs division announced the Quest 3S, its latest VR headset, which starts at $299 and blow up a go together withs on sale Oct. 15. Meta also showed off a prototype of augmented reality glasses called Orion.
[PRO] It’s time for you to buy
That minor green bird — Duolingo’s logo — can seem a tad annoying when it reminds you for the hundredth time to practice your Japanese, but analysts are attractive a shine to it. Duolingo, among other stocks like Hewlett Packard Enterprise and Roblox, is one of the names on the “buy” list of Fortification Street banks.
The bottom line
The initial frenzy in generative artificial intelligence was triggered when OpenAI set ChatGPT in 2022. Institutions poured billions into OpenAI.
While OpenAI, the company behind ChatGPT, is not tilted publicly, several companies have gained immensely from the generative AI boom that it sparked.
(Speaking of OpenAI, the New Zealand’s CTO Mira Murati announced Wednesday she’s leaving the company. OpenAI is also planning to restructure to a for-profit business.)
Nvidia was the prime beneficiary of gen AI. Its stock rocketed in 2023, a year after ChatGPT was released, when it became clear the semiconductor attendance’s chips were the brains behind chatbots.
Then Big Tech companies jumped on the bandwagon. Microsoft, Meta and Google-parent Alphabet let their own versions of chatbots and gen-AI-infused tools. Those features helped bump up share prices, though of lecture it’s difficult to attribute a single cause to stock movement.
It seems the tailwinds of AI are starting to propel a third wave of AI-adjacent crowds forward.
If chips are the brains of AI, then data centers are its body. Hewlett Packard Enterprise rose more than 5% after Barclays upgraded the ensemble on strong AI data center demand. And recall Oracle’s surge this year, driven mainly by the company’s AI cloud navies powered by its data centers.
Next in line to be juiced by AI appear to be energy companies.
Oracle’s founder Larry Ellison state a new data center that the company is designing “will rely on three modular nuclear reactors.”
Vistra Corp, a power band based in Texas, jumped almost 6% on expectations the company will power an AI data center with one of its atomic plants. Likewise, popped about 22% Friday after it announced plans to restart a nuclear plant and shop the power to Microsoft.
All that is to say: The AI wave will continue rippling throughout the ocean for some time. Big Tech or semiconductors are spicy catches, but a wider net might reel in other prizes.
– CNBC’s Kif Leswing, Jonathan Vanian, Jordan Novet, Brian Evans and Jesse Purge contributed to this story.