Tobias

Singapore’s Deputy Prime Minister Gan Kim Yong advocates for strengthened ASEAN-EU collaboration, particularly through a digital economic agreement, to navigate global trade tensions. Speaking at the Singapore Fintech Festival, Gan highlighted the potential for enhanced ASEAN-EU ties, envisioning a phased approach to establishing foundational rules for digital collaboration. He also emphasized the need for WTO reform to adapt to contemporary trade challenges and Singapore’s commitment to a multilateral, rules-based trading system. The goal is to support the growing Southeast Asian digital economy, projected to exceed $300 billion in 2025.

SoftBank divested its Nvidia stake for $5.83 billion to reallocate capital to OpenAI, signaling a firm belief in generative AI’s potential. Despite market discussions on AI valuations and concerns raised by figures like Michael Burry, SoftBank’s decision reflects a strategic prioritization of investment, aiming to capitalize on perceived greater opportunities within OpenAI. This move underscores SoftBank’s conviction that OpenAI is poised for significant growth across various sectors, making the increased investment a strategic imperative.

A bipartisan digital asset market structure bill is gaining traction in the U.S. Senate, outlining regulations for the crypto industry. Spearheaded by Senators Boozman and Booker, the draft grants favorable status to cryptocurrencies like Bitcoin and Ether, mandating fund segregation for crypto firms and amplifying the CFTC’s regulatory authority. It also proposes fees for the CFTC and establishes token listing standards. The bill aims to foster innovation while safeguarding investors, marking a significant step towards institutional crypto adoption in the US.

AMD projects 35% annual revenue growth over the next 3-5 years, driven by an 80% annual expansion in its AI data center business, potentially reaching tens of billions in sales by 2027. The company aims for a double-digit share in the data center AI chip market, challenging Nvidia’s dominance. AMD is partnering with OpenAI to supply Instinct AI chips. The total addressable market for AI data centers is estimated to reach $1 trillion by 2030. Despite the AI focus, AMD’s legacy businesses are also experiencing growth.

Rocket Lab (RKLB) shares rose after Q3 results revealed record revenue of $155M, a 48% YoY increase, driven by launch contracts and space tech. Loss per share was better than expected. Q4 revenue guidance of $170M-$180M exceeded estimates. The company boasts a record backlog of 49 launches and is pursuing acquisitions for defense initiatives. Shares surged over 31% last month and have more than doubled YTD. Rocket Lab acquired Geost and opened a new Neutron launch site. Adjusted EBITDA loss in Q3 was $26.3M, with Q4 losses projected between $23M-$29M.

The CNBC Investing Club’s “Morning Meeting” discussed market pressures on Big Tech due to CoreWeave’s weak outlook, raising concerns about AI investment sustainability and debt levels. Soft labor market data also contributed to downward pressure. Linde shares rose after a UBS upgrade citing future earnings growth. Nvidia declined following SoftBank’s stake sale to fund OpenAI, reinforcing debt concerns around AI data centers despite the Club’s long-term view. The rapid-fire segment covered CoreWeave, Paramount Skydance, Amgen, Dutch Bros, and Coterra Energy.

CoreWeave (CRWV) shares plummeted 13% after CEO Mike Intrator cited data center delays impacting its full-year projections. While Intrator portrayed the issue as isolated, CNBC’s Jim Cramer suggested broader problems, potentially tied to Core Scientific (CORZ), whose shares also fell 7%. CoreWeave revised its 2025 revenue forecast downwards despite a strong third-quarter revenue growth of 134%. The market reacted to the ambiguity surrounding the delays’ extent and their potential impact on CoreWeave’s ability to fulfill major AI infrastructure contracts with companies like Meta and OpenAI.

US equities rose amid optimism for a government shutdown resolution. The Nasdaq saw its biggest gain since May, driven by AI stocks. Bitcoin surged past $105,000. SoftBank reduced its chip sector exposure, focusing on OpenAI. Paramount Skydance announced cost cuts and layoffs. Air travel faced disruptions from the shutdown, and Warren Buffett plans to accelerate charitable giving, preparing Greg Abel for succession at Berkshire Hathaway.

Oura, the smart ring maker, projects sales near $2 billion next year, doubling its 2024 revenue. This surge is driven by women’s health features, international expansion, and AI integration. The company has sold over 5.5 million rings since 2015 and is focused on preventative health, incorporating glucose monitoring and researching blood pressure. Oura leverages AI to provide personalized health insights and has launched Oura Advisor, an AI-powered health chatbot. While an IPO is speculated, no immediate plans have been announced.

This earnings season, tech giants are increasing capital expenditure for AI-driven growth, but smaller players like DoorDash, Duolingo, and Roblox face investor skepticism after announcing similar spending increases. DoorDash’s investments in autonomous delivery and acquisitions, Duolingo’s focus on user growth with AI, and Roblox’s platform safety measures all raise concerns about near-term profitability. While companies argue these are essential for long-term growth, analysts question if returns will justify the investments, contrasting with the confidence afforded to larger firms like Amazon and Alphabet.