Tech

Jim Cramer suggests a “revenge” of the “Magnificent Seven” tech stocks, arguing many are now undervalued after underperforming. He believes catalysts like AI investments, maturing core businesses, and de-risking events will drive a resurgence for companies like Amazon, Alphabet, Meta, Microsoft, and Nvidia, while Tesla remains a speculative play. Cramer sees a cyclical shift where these tech giants are poised to benefit from prior infrastructure spending.

Elon Musk’s America PAC is investing over $800,000 in key Senate and House races for the midterm elections. The funds, primarily targeting Senate contests, will support Republican candidates in battleground states like Texas and Maine, and also back eight competitive House races. This spending, part of a potential $120 million commitment, indicates a renewed strategic political engagement from Musk, aligning with Republican policy goals and potentially influencing regulatory environments for his businesses.

Microsoft’s Xbox is introducing monthly cloud gaming time limits for Game Pass subscribers, a shift from unlimited access. This move, effective in November, aims to manage escalating operational costs and explore new revenue streams, aligning with industry trends in consumption-based pricing. Specific hour allocations vary by subscription tier. The company states only a small percentage of users currently exceed these limits.

OpenAI has launched GPT-6 Astra, prioritizing enhanced cybersecurity following recent safety incidents. Astra is its first model to meet a critical security threshold, with restricted access initially for participants in its Daybreak program. Despite past breaches not involving Astra, OpenAI has added safeguards to minimize harm. The model offers advanced AI capabilities in various professional and research fields, and will soon be available on premium tiers and via API. This release supports OpenAI’s strategy to capture enterprise market share ahead of its potential 2027 IPO.

Anthropic’s head of threat intelligence, Jacob Klein, reports that Chinese companies are increasingly using illicit distillation to steal AI model technology. This practice involves exploiting proprietary models like Anthropic’s Claude to train competing technologies at lower costs. Klein cites Moonshot AI’s Kimi K3 model as an example of technology illicitly trained using Claude. The issue raises concerns about intellectual property theft and national security risks.

Meta has agreed to a $17 billion settlement with over 40 states over child safety concerns. This landmark deal mandates significant product changes for teen users, including daily time limits, muted notifications, hidden “likes,” and disabled cosmetic filters. Meta will also improve age verification. This settlement, though substantial, faces criticism for staggered implementation timelines and contingent payments tied to competitors’ actions. The long-term impact on Meta’s revenue and its appeal to younger demographics remains uncertain.

Nvidia has acquired Hugging Face, a leading open-source AI platform, for $12.9 billion. This move signals Nvidia’s strategic shift to deepen its involvement in AI software and development, beyond its hardware dominance. Hugging Face will remain an open platform, with Nvidia aiming to scale its infrastructure and expand AI access. The acquisition, Nvidia’s second-largest, underscores its ambition to be a comprehensive AI solutions provider and enhance the security and resilience of open-source AI.

Nvidia is reportedly close to acquiring AI platform Hugging Face for $13 billion, signaling its aggressive expansion. The G20 Summit highlighted differing views on AI regulation and development. In enterprise tech, Snowflake surged on strong earnings driven by AI capabilities, while Broadcom exceeded revenue expectations but saw a slight moderation. Ford’s Super Duty truck production hit a 20-year high, indicating supply chain recovery and strong demand. A DOJ opinion now requires states to report undocumented immigrants to potentially retain federal funding.

Tesla is accelerating its Robotaxi venture with teasers of driverless Cybercabs and an upcoming Austin event. Videos show Cybercabs operating without visible drivers in Texas. While Tesla’s “unsupervised” fleet is growing, it faces competition from Waymo’s established service. Analysts suggest a successful robotaxi rollout could boost Tesla’s stock, which has recently declined. Safety investigations and transparency concerns surrounding Tesla’s autonomous systems persist.

The US faces growing dependence on China for critical data center components, including transformers, switchgear, batteries, and optical technologies. This reliance, amplified by AI competition, poses national security and supply chain risks. President Trump declared a national emergency to restrict foreign transactions in power grid components. While the US aims to boost domestic manufacturing, scaling production to meet demand remains a challenge, potentially leading to increased costs for hyperscale operators.