Tobias

Anthropic accuses Alibaba of a massive “illicit distillation attack” to steal its AI capabilities, using millions of fraudulent interactions. This follows recent White House directives and Anthropic’s previous alerts about similar theft attempts. The accusation highlights growing concerns over AI intellectual property theft and national security in the global AI race.

Micron Technology is experiencing unprecedented profitability driven by surging AI demand. The company achieved an 84.9% gross margin, surpassing tech giants like Nvidia and Meta. This success stems from high demand for its High Bandwidth Memory (HBM) products, crucial for AI processors. Micron’s strategic customer agreements are securing high margins, and analysts predict continued market tightness beyond 2027.

SK Hynix shares surged over 11% after announcing plans for a U.S. stock market listing of American Depositary Receipts (ADRs). This move, expected to raise nearly $30 billion, aims to broaden its investor base and enhance its valuation, particularly in light of booming AI chip demand. The company is significantly investing in U.S. and South Korean facilities to meet this demand, with analysts viewing the listing as a key step to compete with rivals like Micron and tap into the global AI market.

Zoox, Amazon’s autonomous vehicle unit, has unveiled an upgraded robotaxi focusing on passenger comfort and operational efficiency. Enhancements include improved seats, interactive touch screens, and better visibility features. Zoox is preparing for a U.S. commercial launch and expanding its pilot programs, aiming for broader reach through a partnership with Uber. The company is also awaiting regulatory approval for commercial deployment and scaling up production at its new manufacturing hub.

Stocks rallied as oil prices dropped below $70, boosting interest-rate sensitive sectors like housing. FedEx showed resilience despite a mixed earnings report, with the CNBC Investing Club maintaining its position. Nike’s shares fell on news of a new CFO and anticipation of its earnings report. Alphabet will replace Verizon in the Dow Jones Industrial Average, a symbolic move acknowledging its economic significance, though not a primary buy catalyst according to analysts.

Cerebras CEO Andrew Feldman defended the company’s margin guidance after its stock dropped nearly 20% post-IPO. He stated investors misunderstood the projected narrowing of gross margins, which was planned to support growth, including a strategic equipment rental. Feldman also noted staggered insider lock-up releases and highlighted Cerebras’s insulation from industry supply chain issues. He acknowledged the challenge of matching AI’s speed with slower data center development.

Alphabet is joining the Dow Jones Industrial Average, replacing Verizon. This move highlights the dominance of tech giants in shaping market narratives. Alphabet’s inclusion is partly due to its 20-to-1 stock split, making it more accessible for the price-weighted Dow. Despite recent challenges like executive departures and a stock offering, Alphabet’s strong AI position and vertical integration offer long-term potential, with current price levels potentially presenting an attractive entry point for investors.

Broadcom’s stock may find a bottom following the unveiling of its custom AI accelerator chip, “Jalapeno,” co-designed with OpenAI. This collaboration aims to boost AI speed, reliability, and accessibility while reducing costs through enhanced performance per watt. Despite recent stock pressure and competition, this partnership offers a potential catalyst for Broadcom, with initial Jalapeno deployments expected later this year and significant ramp-up in 2027. The chip is seen as complementary to existing GPU infrastructure, addressing the industry’s “insatiable” demand for computing power.

Nvidia CEO Jensen Huang affirmed that U.S. national security supersedes commercial interests, especially concerning advanced AI exports. He stressed that attempts to bypass export restrictions are futile, as Nvidia’s integrated systems require trusted support to function. Huang also highlighted AI’s proven return on investment through increased efficiency and demonstrated profitability, driving demand for computing power. Nvidia remains committed to shareholder value, planning to return 50% of free cash flow through buybacks and dividends.

The S&P 500 and Nasdaq struggle to break recent losses amid market indecision, even as oil prices fall, easing inflation. Travel and leisure stocks rally, while tech faces profit-taking ahead of Micron’s earnings. Linde’s shares rise on positive analyst outlook and potential helium price benefits. All eyes are on Micron’s highly anticipated earnings report for insights into AI chip demand. Thursday brings key economic data including PCE and GDP.