Core Insights - Generative AI is viewed as a transformative technology by Amazon's CEO Andy Jassy, indicating its potential to reinvent customer experiences across the company [1] - Elon Musk predicts that humanoid robots could create a market worth $250 trillion by 2040, representing a significant shift in the global economy driven by AI innovation [2] - Major firms like PwC and McKinsey acknowledge the multi-trillion-dollar potential of AI, suggesting a broad consensus on its economic impact [3] Company and Industry Analysis - A breakthrough in AI technology is redefining work, learning, and creativity, leading to increased interest from hedge funds and top investors [4] - There is speculation about an under-owned company that may play a crucial role in the AI revolution, with its technology posing a threat to competitors [4] - Prominent figures in technology and investment, including Bill Gates and Warren Buffett, recognize AI as a significant advancement with the potential for substantial social benefits [8] Market Trends - The AI ecosystem is expected to reshape how businesses, governments, and consumers operate globally, indicating a paradigm shift in various sectors [2] - The investment landscape is becoming increasingly competitive, with major tech companies like Tesla, Nvidia, Alphabet, and Microsoft being closely watched, while a smaller company is suggested to have greater potential [6]

Core Insights - Nvidia's stock fell nearly 3% while AMD's stock rose close to 1% following comments from Arista Networks' CEO about a shift in deployment preferences towards AMD [1][2] - Arista Networks reported that approximately 20% to 25% of its deployments are now utilizing AMD as the preferred accelerator, a significant change from a year ago when it was predominantly Nvidia [2] - Nvidia currently holds about 90% of the AI chip market, but faces increasing competition from AMD and Google, which is gaining traction with its tensor processing units [3] Company Developments - Arista Networks plays a crucial role in AI infrastructure by providing Ethernet switching technology that connects powerful chips [4] - AMD has partnered with Arista to create customized AI clusters for training and inference, indicating a strategic collaboration in the AI space [4] - Nvidia has reduced its reliance on Arista's technology by developing its own networking solutions, which has impacted Arista's stock negatively [5] Market Dynamics - Nvidia's launch of the Spectrum-X Ethernet platform in 2023 has contributed to a decline in Arista's stock value, which lost more than half its value following this development [6] - Despite the challenges, Arista's stock rebounded with a 19% increase last year and is currently up 6% in 2026 [6] - Analysts note that while Arista's diversification is necessary, being integrated with Nvidia has historically been beneficial for the company [6]

U.S. Commerce Secretary Howard Lutnick addressed the licensing requirements governing Nvidia Corp.’s (NASDAQ:NVDA) sales of its advanced AI chips to China during a hearing on Tuesday. Lutnick stated that Nvidia must adhere to the detailed licensing terms for the sale of its second-most-advanced AI chip, the H200, to China, Reuters reported on Tuesday. He explained that the terms, which were developed in collaboration with the State Department, are detailed and non-negotiable. Don't Miss: Delays and Unce ...

Open AAI is unveiling its first model to run entirely on chips from the startup Cerebras. It's a sign of companies diversifying beyond Nvidia's GPUs. Dear Jabosa has more in today's tech check.Very important story here. Deerra. Yeah.So, Kelly, this look, this is not OpenAI's flagship model. This is GPT 5.3% Codex Spark. It's a stripped down coding model built for speed.But an AI speed and cost that can beat raw power. And if the high volume everyday workloads, if they're moving off of Nvidia hardware, that ...

Group 1: Nvidia's Stock Performance - Nvidia's shares have remained in a narrow trading range for months, with a nearly 2% decline recently, despite rising global capital expenditures on AI infrastructure [1] - Since August, Nvidia's stock has gained just under 2%, which is only slightly better than broader market indexes, while competitors TSMC and AMD have seen increases of approximately 52% and 12%, respectively [1] Group 2: AI Infrastructure Spending - Major tech firms like Meta Platforms, Alphabet, Microsoft, and Amazon are expected to invest over $600 billion in AI infrastructure by 2026, indicating a sustained increase in corporate investment in machine-learning and data centers [2] - Analysts suggest that there is a disconnect in how investors are pricing future AI spending into equities, even for companies leading the AI boom [2] Group 3: Revenue Concerns - There are growing concerns that the revenue generated from AI may not keep pace with the announced capital expenditures, as noted by JoAnne Feeney from Advisors Capital Management [3] - Despite strong demand for Nvidia's chips and revenue projections exceeding most competitors, valuation multiples have compressed, with Nvidia trading at about 24 times projected profits, aligning closely with the Nasdaq-100 and only slightly above the S&P 500 [4] Group 4: Market Expectations and Future Guidance - Investors are awaiting Nvidia's next quarterly report, scheduled for February 25, which is anticipated to be a critical catalyst for the stock's performance [5] - Analysts warn that after years of accelerated capital expenditures, growth in technology infrastructure spending may slow, potentially impacting orders for data-center chips [6] Group 5: Competitive Landscape and Investment Returns - Concerns persist regarding the sustainability of AI infrastructure spending growth, which could negatively affect Nvidia's performance, as highlighted by Stifel analyst Ruben Roy [7] - Investors are also apprehensive that the substantial investments in AI may yield slower returns than anticipated, compounded by increasing competition from companies like Google and startups developing alternative AI processors [8]

Group 1: Nvidia's Stock Performance - Nvidia's shares have remained in a narrow trading range for months, with a nearly 2% decline on a recent Friday, despite record levels of global capital expenditures on AI infrastructure [1] - Since August, Nvidia's stock has gained just under 2%, which is only slightly better than broader market indexes, while competitors TSMC and AMD have seen increases of approximately 52% and 12%, respectively [1] Group 2: AI Infrastructure Spending - Major tech firms, including Meta Platforms, Alphabet, Microsoft, and Amazon, are expected to spend over $600 billion on AI infrastructure in 2026, indicating a sustained increase in corporate investment in machine-learning compute and data centers [2] - Analysts suggest that there is a disconnect in how investors are pricing future AI spending into equities, even for companies directly involved in the AI boom [2] Group 3: Revenue Concerns - There are growing concerns that the revenue generated from AI may not keep pace with the announced capital expenditures, as noted by JoAnne Feeney from Advisors Capital Management [3] - Despite strong demand for Nvidia's chips and revenue projections that exceed most competitors, valuation multiples have compressed, with Nvidia trading at about 24 times projected profits, which is in line with the Nasdaq-100 and only slightly above the S&P 500 [4] Group 4: Market Expectations and Future Guidance - Investors are awaiting Nvidia's next quarterly report, scheduled for February 25, which is seen as a crucial catalyst that could influence whether the stock breaks out of its current range [5] - Analysts warn that after years of accelerated capital expenditures, growth in technology infrastructure spending may slow, potentially reducing orders for data-center chips [6] Group 5: Competitive Landscape - Concerns persist regarding the sustainability of AI infrastructure spending growth, which could negatively impact Nvidia's performance, as highlighted by Stifel analyst Ruben Roy [7] - Investors are also apprehensive that the significant investments in AI may yield slower returns than anticipated, especially with increasing competition from Google's TPU teams and startups developing alternative AI processors [8]

AI now unveiling its first model to run entirely on chips from the startup Cabus. It's a sign a company's diversifying beyond Nvidia GPUs. Our Dur Debosa has more on that in today's tech check.Morning D. >> Hey, good morning Carl. So never mind that OpenAI is one of Nvidia's largest customers.This is also part of a larger trend. Google shipped Gemini 3 in December trained and served on its own custom AI chips TPUs. Then you got Chinese AI lab GPU releasing GLM trained on Huawei chips and we know that others ...

Core Insights - Safran Landing Systems, a subsidiary of Safran Group, has signed a deal with Morocco to establish a landing gear factory near Casablanca valued at 280 million euros ($332 million) to support Airbus A320 production [1][1][1] - The new plant is part of Morocco's strategy to enhance its role in the global aerospace supply chain, with production expected to commence in 2029 [1][1][1] - The Moroccan aerospace sector, which includes 150 firms, employs approximately 25,000 people and saw exports increase to 29 billion dirhams ($3 billion) in 2025, up from 26.4 billion dirhams the previous year [1][1][1] Company Developments - The new factory will aid Safran in maintaining the production pace of the Airbus A320 family and in preparing for the next generation of short and medium-haul aircraft [1][1][1] - Safran has previously signed agreements with the Moroccan government to establish an engine assembly line for Airbus jets and a maintenance and repair facility in Midparc, an industrial zone near Casablanca [1][1][1]

Core Insights - Major tech companies including Meta, Amazon, and Google are leading a significant capital expenditure (CapEx) wave, with a total of approximately $700 billion allocated for AI infrastructure in 2026 [1] - Despite the massive spending, Nvidia's stock has only increased by 0.24% year-to-date, raising questions about market expectations for sustained GPU demand [1] - Other companies such as Broadcom, Micron, Lumentum, and Bloom Energy have seen substantial stock price increases, indicating strong performance in the AI supply chain [1] Capital Expenditure Breakdown - Hyperscalers like Amazon, Alphabet, Meta, and Microsoft are driving the largest technology infrastructure expansion in history, with Amazon planning $200 billion, Alphabet $185 billion, and Meta up to $135 billion [1] - Secondary spending is also coming from 'neoclouds' and projects like sovereign AI data centers, further contributing to the overall CapEx growth [1] Nvidia's Market Position - Nvidia has experienced explosive growth in its Data Center segment, yet its stock price remains flat, suggesting market skepticism regarding the translation of CapEx into long-term demand for GPUs [1] - The company is a significant position in investment portfolios, reflecting confidence in its future despite current stock performance [1] Other Beneficiaries of the CapEx Wave - **Broadcom**: The company is benefiting from custom chip demand, with a 41% stock increase over the past year, despite a 4% decline year-to-date [1] - **Lumentum**: This company has seen a remarkable 637% stock surge due to strong demand for optical components in data centers [1] - **Micron Technology**: The only US-based memory manufacturer has experienced a 353% stock increase driven by AI memory demand [1] - **Bloom Energy**: The company has seen a 492% stock increase, addressing power demands for AI data centers [1]

Core Viewpoint - Chip stocks, particularly those involved in artificial intelligence (AI), are not as overvalued as previously thought, providing potential investment opportunities within ETFs like QQQ and QQQM [1] Group 1: Semiconductor Stocks - Semiconductors are crucial for AI developments, leading to increased interest in ETFs that include chip stocks [1] - Nvidia, the largest holding in QQQ and QQQM, represents nearly 9% of these ETFs and continues to innovate in AI solutions, indicating strong fundamentals [1] - Broadcom, another significant holding, is experiencing accelerated growth in its AI chip business, driven by high demand for its products, particularly Google's TPU chip [1] Group 2: Investment Outlook - Despite being growth funds, QQQ and QQQM still offer value through their semiconductor holdings, which have attractive fundamental outlooks [1] - AMD is also positioned to benefit from AI developments, with expectations of meaningful revenue from its MI450 products in the latter part of the year [1]