‘Magnificent Seven’ Pick Up the Crown

‘Magnificent Seven’ Pick Up the Crown

The top tech companies powered a 12% Nasdaq rally on Wednesday, gaining more than $1.5trn in collective market value after US President Donald Trump’s announced 90-day pause on sweeping global tariffs saw global markets do an about face. The gain fell short of recuperating the collective $3.4trn drop in value the companies have experienced since late 2024. Both Alphabet [GOOGL] and Microsoft [MSFT] have reiterated previous data center spending plans, signaling continued confidence in artificial intelligence-related (AI) investments. 

Space: Data Centers’ Next Frontier

Could the Moon be the next destination for the data centers needed to power AI development? Florida-based Lonestar Data Holdings thinks so. The company has successfully tested a tiny book-sized data center attached to space exploration company Intuitive Machines’ [LUNR] Athena Lunar Lander, launched in March via a SpaceX rocket. The proposed centers would benefit from their secure location, the firm says — not to mention access to unlimited solar power.  

Could We Have AI Without Advanced Chips?

India start-up Kompact AI, in partnership with the Indian Institute of Technology, Madras, has unveiled a platform that it says can run large AI models without advanced chips. According to Bloomberg, it uses the central processing units found in everyday computing devices, rather than costly graphics processing units manufactured by companies like Nvidia [NVDA]. Following the success of China’s DeepSeek, AI developers have raced to build models that use fewer chips, which could become scarce in light of Trump’s proposed tariffs. 

Will New Google Partnership Legitimize Roblox?

On April 1, Alphabet’s Google announced a partnership with game platform Roblox [RBLX] that allows advertisers to deploy in-game ads — and offer users incentives like in-game currency to watch them. Companies looking to reach Gen Z consumers are likely to jump at the chance to advertise to Roblox’s young and growing user base, which totaled 85.3 million at the end of 2024. Read OPTO’s dive into the investment case for RBLX, and the headwinds facing this dynamic but pre-profit company.

AI Demand Helps TSMC Top Q1 Estimates

Strong demand for AI servers and smartphones ahead of proposed US tariffs have helped the semiconductor giant [TSM] exceed estimates for Q1 revenue. The NT$839.25 reported for the quarter represents a year-over-year increase of 42%, its steepest rate of growth since 2022. March revenue also rose 46.5% as electronics makers stockpiled components in US warehouses, amid concerns that trade disruptions could impact prices. 

Price Hike or Exit, Amazon’s Chinese Merchants Ask

Despite the wider pause on global levies, Trump’s 125% tariff on Chinese goods remains in place, forcing Chinese companies that sell products on Amazon [AMZN] to decide between price hikes and exiting the US market entirely. The move is an “unprecedented blow” to e-commerce vendors, Wang Xin, the head of the Shenzhen Cross-Border E-Commerce Association, told Reuters. Amazon has meanwhile cancelled orders originating from China or Southeast Asia, leaving some vendors with unsold merchandise. 

Why is SoftBank’s Mayoshi Son Doubling Down on AI?

On April 1, the Japanese tech conglomerate [SFTBY] pledged to cover 75% of OpenAI’s latest funding round, raising the AI company’s valuation to $300bn from $157bn. This comes hot on the tail of Son’s pledge to invest $100bn to support AI development in the US — a figure some reports say could balloon to $1trn. OPTO examines how SoftBank is financing its all-in AI strategy, and how that could impact its share price.