Key Points The contractual backlogs reported by major cloud computing companies of late add up to more than $1 trillion. Huge investments in additional AI infrastructure will be needed to satisfy this backlog. This is great news for Nvidia and Taiwan Semiconductor Manufacturing, both of which play critical roles in the AI infrastructure buildout. 10 stocks we like better than Nvidia › Artificial intelligence (AI) is expected to have a massive impact on the global economy over the long run. A stud ...

Cloud computing provider CoreWeave (CRWV) rebounded from an initial drop in morning trading on Thursday after announcing a fresh $6.5 billion deal with OpenAI (OPAI.PVT), adding to an already multibillion-dollar set of agreements with the ChatGPT maker. CoreWeave lost 5% in premarket trading. It quickly rebounded to gain more than 1% in the first hour after the opening bell Thursday morning as the market digested news of the new agreement, which now brings the value of the companies' joint agreements to $ ...

Market Trends - Hong Kong's technology sector showed robust performance, with the Hang Seng Tech Index rising more than 2%, significantly driven by Baidu's shares, which surged almost 10% due to its use of self-designed chips for AI model training [2][8] - Conversely, the Hang Seng Biotech Index experienced a 2% decline, reflecting broader market volatility and profit-taking activities in the biotechnology sector [3][8] Currency Movements - The U.S. Dollar weakened across major currency pairs as investors anticipated a Federal Reserve interest rate cut, with markets pricing in a 25-basis-point reduction [4][8] - In Asia, the dollar's weakness had varied impacts on local currencies, with the Malaysian Ringgit rising 0.4% to 4.180 per U.S. dollar, while the Singapore Dollar dipped to 1.2763 per U.S. dollar [5][8] Semiconductor Industry Developments - China is making significant strides in its semiconductor industry, with SMIC trialing domestically built advanced chipmaking equipment for AI processors, aiming to reduce dependence on foreign suppliers [6][8] - Chinese internet firms are raising record amounts in Hong Kong's dim sum bond market, with Tencent aiming to raise $1 billion and Alibaba securing $3.2 billion for investments in AI and cloud computing infrastructure [7][8] Corporate Developments - BHP Group has halted operations and plans layoffs at an Australian coking coal site, indicating adjustments to its global portfolio [9][8] - Nissan is continuing its "Re:Nissan" restructuring plan, targeting ¥500 billion in total cost savings by fiscal year 2026, with 4,000 variable cost-saving initiatives identified [10][8]

Core Insights - Microsoft is scaling back on global data center projects, indicating caution in expanding its cloud computing infrastructure too quickly [1] - The company has halted or delayed data center development in multiple regions, including the U.K., Australia, North Dakota, Wisconsin, and Illinois [1] - A Microsoft spokesperson stated that the changes reflect the flexibility of the company's long-term strategy, which is planned years in advance [1] - Despite the pullback, Microsoft previously announced plans to allocate over $80 billion for capital expenditures in 2025, primarily focused on AI data centers [1] - The reasons behind the recent pullback may include expectations of reduced demand or temporary construction challenges, such as shortages of power and building materials [1] Data Center Strategy - Microsoft is shifting its data center expansion strategy for 2025 from new construction to upgrading existing facilities with servers and other computing equipment [2]