Tobias

Cerebras Systems, post-IPO, raised its full-year revenue guidance, expecting $880M-$890M. The company reported Q2 revenue of $210M and a net loss of $450.5M, largely due to stock compensation. CEO Andrew Feldman is optimistic about AI demand and premium pricing for its specialized inference chips, positioning Cerebras to compete with Nvidia. The company announced partnerships with AMD and OpenAI, and its stock closed up 42% from its IPO price.

July’s CPI report signaled moderating inflation, boosting stocks and lowering bond yields. While Fed rate hikes are less likely in September, investors await PPI data for confirmation. Company performance, especially in AI, now drives market narratives. Cloud infrastructure firms Coreweave and Nebius beat earnings expectations, with shares soaring. Home Depot dipped on CEO medical leave news, but its strong leadership offers stability.

The CPI report is crucial for Fed rate decisions amid ongoing inflation. Election betting faces legal ambiguity as prediction markets intersect with gambling laws. CoreWeave shows accelerated AI infrastructure growth, exceeding revenue expectations. Computing power is emerging as a new tradable asset class with CME Group launching futures contracts. Housing prices are unlikely to see immediate drops due to regulatory impacts and persistent high costs. Credit card debt has surged to near-record levels, highlighting household financial pressures.

Meta and Nvidia have released open-weight AI models, joining a push against premature restrictions on AI development. Meta unveiled Muse Glimmer and Nvidia introduced Nemotron 3.5 Lightning, aiming to foster competition and innovation. This move contrasts with proprietary models from OpenAI and Anthropic, and seeks to provide domestic alternatives to Chinese AI models, despite past trust issues for Meta.

Google’s Pixel 11 launch heavily features Gemini AI, aiming to revolutionize smartphone interaction with proactive task management across apps. This move intensifies the tech giant’s competition with Apple, which is reportedly integrating Google’s AI into its upcoming Siri. While AI isn’t yet the primary upgrade driver, Google believes its advanced Gemini Intelligence offers unique Android experiences. The company also faces rising hardware costs due to memory component shortages.

CoreWeave, a key AI cloud infrastructure provider, reported a robust second-quarter with revenue doubling year-over-year to $2.6 billion, driven by high demand for AI computing power. Despite not being profitable yet, the company has a substantial backlog and an optimistic outlook. Its stock saw significant premarket gains, reflecting strong investor confidence amidst a booming AI market.

AI’s promised deflationary wave faces corporate inertia and near-term inflation. Massive AI infrastructure investments strain supply chains and energy costs. While technology is advanced, widespread adoption and deriving tangible value are complex, requiring organizational change. This contrasts with initial optimistic forecasts, leading to a nuanced economic reality where immediate costs precede long-term benefits.

Tencent’s Q2 revenue grew 11%, driven by domestic gaming and AI-boosted advertising, but profit missed expectations. The company significantly increased capital expenditure for AI infrastructure, aiming to monetize its large user base and new AI models like Hy3. Despite this aggressive AI push and a strong gaming rebound in China, Tencent faces intense competition and has seen its stock decline. The advertising sector also showed robust growth, benefiting from AI enhancements.

Norway’s $2.3 trillion sovereign wealth fund achieved a record $182 billion profit in the first half, driven by strong Asian tech stocks and equity market rallies. NBIM, its manager, revealed a new $1.2 billion stake in SpaceX, adding to its significant holdings in tech giants like Nvidia and Apple. The fund, a global investor in over 7,000 companies, strategically diversifies across equities, fixed income, and real estate, aiming for long-term value creation.

Google’s DeepMind is undergoing a leadership change with Koray Kavukcuoglu stepping up to Senior Vice President. This move signals a strategic shift towards a more aggressive focus on frontier AI development, aiming to close the gap with rivals OpenAI and Anthropic. The initiative “Code Strike” is also underway to bolster coding competencies. While Alphabet’s stock dipped, the company highlights strong adoption of Gemini Enterprise and successful monetization of AI technologies.