Every day, we handpick the 5 Top Stories stock market investors need to know. In 5 minutes, you’ll learn the stocks, CEOs, and money managers moving markets.
AI Market to Hit $990bn by 2027
The global market for artificial intelligence-related (AI) products is set to surge to $990bn by 2027, according to Bain and Company’s ‘Global Technology Report’, released Wednesday. The market, encompassing AI services and hardware, which was worth $185bn in 2023, is expected to expand annually by 40–55%. The rise will be supported by larger AI systems and data centers. On that note, following a meeting with the Biden administration, Microsoft-backed [MSFT] OpenAI has advocated for building 5GW data centers in the US, each requiring power equivalent to five nuclear reactors, according to Bloomberg.
Nvidia Climbs as Blackwell Drop Draws Near
The Nvidia [NVDA] share price climbed Tuesday as the AI leader prepares to start shipping its Blackwell GPU in Q4. It is thought that some 450,000 units will be produced in the quarter, potentially equivalent to revenue of $10bn, Seeking Alpha reported. At the Goldman Sachs Communacopia and Technology Conference earlier this month, CEO Jensen Huang said “the demand on it is so great ... and so the intensity is really, really quite extraordinary.” Demand for Nvidia’s Hopper GPUs also remains strong.
Microsoft in Mexico
Microsoft announced a $1.3bn investment over the next three years to expand its cloud computing and AI infrastructure in Mexico. CEO Satya Nadella revealed the plan at an event in Mexico City, highlighting the company’s focus on improving connectivity and accelerating AI adoption among small and medium-sized enterprises (SMEs). The initiative aims to benefit 5 million Mexicans and 30,000 SMEs, underscoring Microsoft’s commitment to fostering technological growth in the region.
DoJ Probes Software Firms
The US Department of Justice is investigating SAP [SAP] and Carahsoft Technology for allegedly conspiring to overcharge government agencies, Bloomberg reported. This follows an earlier incident where SAP paid $222m to resolve bribery investigations. Carahsoft’s offices were searched, but the company said the investigation involved a former business partner. The SAP share price slumped on the news.
Citi Picks: Long Crowded Stocks
Citi Research analysts have highlighted five stocks within each of the 11 US sectors with the highest long crowding score; according to Seeking Alpha, crowding can be defined as “something that often happens in the latter stages of the life cycle of a stock, where the market has a consistent view on the stock – a risk factor.” The top five in the IT sector are: Similarweb [SMWB], with a crowding composite rank of 100%; Zeta Global [ZETA], at 99.5%; Monday.com [MNDY], at 98.8%; Shopify [SHOP], at 98.3%; at Life360 [LIF], at 97.9%
Disclaimer Past performance is not a reliable indicator of future results.
CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.
CMC Markets does not endorse or offer opinion on the trading strategies used by the author. Their trading strategies do not guarantee any return and CMC Markets shall not be held responsible for any loss that you may incur, either directly or indirectly, arising from any investment based on any information contained herein.
*Tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK.
Continue reading for FREE
- Includes free newsletter updates, unsubscribe anytime. Privacy policy
