Did you know Alibaba recently formed a JV with China National Nuclear Power to ensure power supply for AI data centres? It joins a multitude of big tech firms like Alphabet, Meta and Amazon partnering with nuclear energy companies towards the same end, providing significant boost to nuclear energy stocks. Don't miss their rally, subscribe to my investing group Green Growth Giants which focuses exactly on nuclear energy.When I wrote about the Fed's interest rate decision in December, market driven probabilit ...

Core Viewpoint - Oracle's stock value has significantly declined due to concerns over its AI investments and disappointing quarterly financial results, leading to a loss of over $100 billion in market capitalization [1]. Group 1: Stock Performance - Oracle shares dropped by as much as 16.5% at the start of trading on Wall Street following the release of quarterly results that missed profit and revenue expectations [2]. - The company's market valuation peaked at nearly $1 trillion in September after announcing a $300 billion deal with OpenAI, but has since fallen by a third, resulting in a loss of over $300 billion in value [3][4]. Group 2: Investment and Debt Concerns - Oracle is increasing its investment in AI data centers despite the recent financial results, raising concerns about the profitability timeline of these investments [2][4]. - The company has faced scrutiny regarding its debt levels used to finance AI initiatives, with credit-default swap prices reaching a three-year high [5]. Group 3: Market Impact - The disappointing results from Oracle have negatively affected tech stocks globally, contributing to declines in major indices such as Japan's Nikkei and the US Nasdaq Composite [2][3][6]. - Concerns about an AI bubble and the sustainability of tech investments have been exacerbated by Oracle's financial performance and its aggressive spending on AI [4][6].

Core Insights - Tata Consultancy Services (TCS) and TPG are forming a joint venture to develop AI data centers, with a total investment of 180 billion rupees [1] Group 1: Company Developments - TCS is collaborating with private equity firm TPG for the establishment of AI data centers [1] - The joint venture signifies a strategic move by TCS to enhance its capabilities in the AI sector [1] Group 2: Financial Aspects - Both partners will invest a combined total of 180 billion rupees in the venture [1]

Market Overview - Japanese stocks reached a new record, with the Nikkei 225 index soaring almost five percent on Monday and continuing its rise on Tuesday, driven by the election of pro-stimulus advocate Sanae Takaichi as the expected new prime minister [1][2] - The yen weakened as investors speculated on the likelihood of the Bank of Japan continuing its interest rate hikes, reflecting a shift in market sentiment [2] Economic Policy Implications - Takaichi's election is seen as a positive development that removes uncertainty regarding Japan's policy direction, with expectations of continued fiscal support and ultra-easy monetary policy [2][3] - Analysts believe that this continuity will prevent abrupt tightening and promote ongoing coordination between the government and the Bank of Japan [3] Technology Sector Developments - The announcement of a partnership between Advanced Micro Devices (AMD) and OpenAI to develop AI data centers contributed to positive market sentiment, following a significant contract between OpenAI and Nvidia worth over $100 billion [3] - OpenAI also secured deals with South Korean semiconductor companies Samsung and SK hynix for chips and equipment for its Stargate project, further boosting the tech sector [4] Regional Market Performance - Gains in Japanese stocks contributed to positive performance across most of Asia, with markets in Singapore, Wellington, Taipei, Manila, and Jakarta all showing increases [5] - The tech sector led the global market advance, with notable gains in Tokyo-listed companies such as Advantest and Renesas, as well as SoftBank and TSMC [4] Precious Metals and Commodities - Gold prices reached a new peak of $3,977.44, nearing the $4,000 mark, amid concerns over the US government shutdown and political instability [5][6] - The allure of gold as a safe-haven asset is heightened by expectations of interest rate cuts by the Federal Reserve and ongoing political crises in the US [6] Cryptocurrency Market - The positive sentiment in equity markets extended to the cryptocurrency sector, with Bitcoin hitting a record high of $126,251 [7]