Oilfield services giants SLB , Halliburton and Baker Hughes are turning to data centers and related artificial intelligence infrastructure work to drive their next phase of growth as they navigate slo... ...

Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) said on Wednesday that it will spend €5B ($5.8B) on cloud and artificial intelligence infrastructure in Belgium over the next two years. The investment includes an expansion of its data center campuses in Saint-Ghislain and will add ...

Investment Plans - Microsoft plans to invest $30 billion in artificial intelligence infrastructure in the U.K. by 2028, which includes $15 billion in capital expenditures and $15 billion in its U.K. operations [1] - The investment will enable the construction of the U.K.'s "largest supercomputer," featuring over 23,000 advanced graphics processing units, in collaboration with British cloud computing firm Nscale [1] Political Context - The investment announcement coincides with President Donald Trump's state visit to the U.K., where he is set to meet with King Charles and Queen Camilla [2] - U.K. Prime Minister Keir Starmer is under pressure to stabilize the government following the exit of Deputy Prime Minister Angela Rayner due to a tax scandal and a significant cabinet reshuffle [2] Corporate Sentiment - Microsoft President Brad Smith expressed a more positive outlook on the U.K. business climate, noting previous criticisms regarding the regulatory environment, particularly concerning the blocked acquisition of Activision-Blizzard [3][4] - Smith acknowledged that the current investment would have been inconceivable a few years ago due to the regulatory climate and lack of demand for large AI investments [4] Future Collaborations - Starmer and Trump are expected to sign a new deal to promote investment and collaboration in AI, Quantum, and Nuclear technologies [5]

Group 1: Economic Indicators - The June Personal Consumption Expenditures (PCE) price index increased by 0.3%, surpassing the revised May figure of 0.2%, with an annual rate of 2.6% compared to 2.4% in May [2][3] - Core PCE also rose by 0.3% in June, maintaining a yearly increase of 2.8%, which reflects a larger increase in May than initially reported [2][3] Group 2: Market Reactions - The odds of a Federal Reserve rate cut in September have decreased from 47.7% to 39.2% following the PCE report, indicating a shift in market expectations [3] - Markets reacted positively to news of a potential trade deal between the U.S. and China, with Treasury Secretary Scott Bessent expressing confidence in finalizing the agreement [4][5] Group 3: Company Earnings - Meta and Microsoft reported better-than-expected earnings, with Meta's stock rising by 12% and Microsoft's by 5% following their earnings announcements [7] - Both companies are heavily investing in artificial intelligence, with Meta projecting capital expenditures between $66 billion and $72 billion for the year, and Microsoft expecting over $30 billion in capital expenditures for the fiscal first quarter [8][9] Group 4: AI Impact on Employment - AI is projected to potentially eliminate 20 to 30 million U.S. jobs by 2035, representing nearly 20% of the current U.S. payroll employment of around 160 million jobs [11][14] - Jobs at high risk of automation include administrative support, customer service, and transportation, with significant portions of these roles likely to be displaced [12][16] Group 5: Investment Strategies - Companies involved in AI infrastructure and applications are seen as key investment opportunities, with a focus on those that will benefit from the transition to a robotic workforce [25][26] - Investors are advised to be selective with AI stocks, as not all companies labeled as "AI" will be long-term winners, emphasizing the need to differentiate between hype and substance [28]

Group 1: Earnings Performance - Meta's shares increased by 12% and Microsoft's by 5% following better-than-expected earnings reports that exceeded both revenue and profit expectations [1] - Microsoft achieved a market capitalization exceeding $4 trillion, joining Nvidia in this exclusive category [1] Group 2: Capital Expenditures - Meta's capital expenditures for the full year are projected to be between $66 billion and $72 billion, raising the lower end of its previous estimate [2] - Microsoft anticipates over $30 billion in capital expenditures and assets acquired through finance leases for the fiscal first quarter, surpassing analyst expectations of $24.23 billion [2] Group 3: Industry Impact - Analysts at Citi suggest that the increased capital expenditures from Meta and Microsoft will benefit chipmakers, with Microsoft accounting for approximately 8% of Advanced Micro Devices' sales and Meta for about 2% of Broadcom's sales [3] - The analysts believe that Advanced Micro Devices and Broadcom will be the primary beneficiaries of the increased capital expenditures from both companies [3]

Group 1 - Alphabet's Google plans to invest $25 billion in data center and artificial intelligence infrastructure over the next two years [1] - Google will allocate $3 billion to modernize two hydropower plants in Pennsylvania to support the increasing power demand from data centers and AI [2] - The refurbishment of the Pennsylvania plants is part of a broader agreement with Brookfield Asset Management to purchase 3,000 megawatts of hydroelectric power across the U.S. [2] Group 2 - Google's investments are in response to the PJM Interconnection's challenges in meeting rising electricity demand from data centers and industry [3] - PJM is the largest electric grid in the U.S., covering 13 states and including the world's largest data center market in northern Virginia [3] - A meeting involving President Donald Trump, White House officials, and tech and energy executives is taking place to discuss AI investment in Pennsylvania [4]