Meta reportedly in talks to buy AI chips from Google, Best Buy earnings beat Wall Street estimates

Group 1: Alphabet (Google) - Alphabet's shares are rising in pre-market trading, driven by reports of Meta considering a multi-billion dollar investment in Google's AI chips [2][3] - The company is gaining traction in the AI sector, with its Gemini AI model receiving positive feedback and outperforming competitors like GPT-5 in various benchmarks [6][7] - The optimism surrounding Alphabet's AI advancements is reflected in its stock price, indicating that investments in AI are yielding positive results [7] Group 2: Nvidia - Nvidia's shares are down over 3.5% in pre-market trading as companies seek to diversify their AI chip suppliers, reducing reliance on Nvidia [4] - Despite being a market leader, Nvidia faces challenges as competitors like Alphabet and others enhance their AI capabilities [4] Group 3: Meta - Meta is projected to spend between $70 billion to $72 billion on AI infrastructure this year, indicating its significant investment in AI technology [3] - The potential partnership with Google for AI chips highlights Meta's commitment to enhancing its AI capabilities [2] Group 4: Alibaba - Alibaba reported better-than-expected revenue growth of 5% to $35 billion, with cloud revenue rising by 34% and AI-related product revenue experiencing triple-digit growth for nine consecutive quarters [11] - The company's revamped Quen AI app achieved 10 million downloads in just one week, showcasing strong demand for its AI offerings [11] Group 5: Fed Rate Cut Expectations - Market expectations for a Fed rate cut next month have risen to over 80%, influenced by comments from Fed officials advocating for near-term easing [12][13] - The anticipation of a rate cut is impacting various sectors, including retail and technology, as investors adjust their strategies accordingly [12][13] Group 6: Retail Earnings - Best Buy reported Q3 revenue of $9.67 billion, exceeding expectations, and plans to buy back $300 million in shares [43] - Kohl's raised its full-year outlook for the second consecutive quarter, indicating stabilization under new CEO Michael Bender [44] - Dick Sporting Goods also boosted its outlook, citing expected sales gains from existing stores, contributing to a positive retail earnings trend [45]