Tobias

J.P. Morgan Asset Management reports significant capital flowing into AI-themed ETFs, making them a top investment theme despite recent volatility. This trend reflects the growing integration of AI into various investment narratives and its supportive infrastructure. The analysis also highlights a broader shift from mutual funds to ETFs, driven by ETFs’ tax efficiency and appealing to retail investors, as mutual funds have experienced sustained net outflows.

Cerebras Systems’ stock rose 5% after announcing a partnership with AMD to integrate Cerebras’s wafer-scale chips into AMD’s AI systems. This collaboration targets the growing demand for low-latency, high-throughput AI solutions. Cerebras’s unique single-chip architecture aims to overcome communication bottlenecks in AI processing, offering significant performance advantages. The deal, alongside a major agreement with OpenAI, positions Cerebras as an influential player in AI infrastructure, addressing critical industry needs.

IBM CEO Arvind Krishna addressed Wall Street’s concerns following weak earnings, stating only a small fraction of the company’s software portfolio is vulnerable to AI replacement. Krishna emphasized that most IBM software is designed to prepare clients for AI adoption, focusing on data unlocking and integration. Despite investor skepticism and recent stock declines, Krishna believes IBM’s infrastructure software will be an AI “tailwind.” While acknowledging some software vulnerability, IBM maintained its free cash flow guidance for 2026.

The U.S. Congress is considering the “AI Kill Switch Act,” a bipartisan bill mandating remote shutdown capabilities for advanced AI systems. Driven by concerns over unpredictable AI behavior and recent security breaches, including an OpenAI incident, the legislation empowers the Secretary of Homeland Security to halt AI systems posing catastrophic harm. It also requires incident reporting and data preservation for investigations, aiming to balance innovation with essential safety controls.

Intel’s Q2 results significantly exceeded expectations, driven by robust demand for AI infrastructure. Revenue surged 25%, its fastest growth since 2011, fueled by a 59% jump in its data center business. Strong AI-driven guidance boosted its stock, with strategic alliances and foundry services showing promising growth.

Google Cloud is experiencing significant growth, driven by existing clients increasing spending by around 50% beyond their initial commitments. This demand has led Google Cloud to leverage third-party providers for additional capacity, though it may temporarily impact profit margins. Alphabet has also substantially increased its capital expenditure forecast, with a large portion dedicated to AI infrastructure development amidst broader industry AI spending.

Intel’s upcoming earnings report will focus on AI CPU growth and foundry progress. Despite a recent stock pullback, investors seek proof of sustained AI CPU demand and Intel’s ability to scale production. The foundry business is key to its strategy, aiming to rival TSMC by expanding manufacturing capacity, particularly in the U.S. Recent deals and investments bolster confidence, with analysts expecting revenue and EPS growth. The company’s long-term prospects are viewed positively, highlighting its CPU leadership and foundry potential.

Microsoft and Amazon are expanding cloud gaming reach through new monetization. Xbox offers an ad-supported tier to reduce entry barriers, while Amazon integrates Luna into Prime Video to boost visibility. Both companies leverage cloud expertise but face adoption challenges due to connectivity. Xbox aims for affordable play amid a broader revitalization strategy. Amazon targets casual gamers via Prime Video integration, seeking to grow Luna’s user base.

A US official accused Chinese AI firm Moonshot AI of circumventing export controls to acquire advanced Nvidia chips for its Kimi K3 large language model. The Kimi K3, with 2.8 trillion parameters, shows reduced performance gaps compared to global leaders. The US is restricting high-performance AI chip exports to China to curb its AI ambitions. This incident highlights the intensifying AI competition and concerns over Chinese firms seeking computing power abroad.

Tech giants Alphabet and Tesla saw shares decline on concerns over increased AI spending, despite strong revenue. Tesla missed EPS expectations, while IBM also reported weaker results. Geopolitical tensions, including attacks on Saudi Arabian tankers, pushed oil prices up nearly 5%, nearing $90. Congress is considering bills to ban stock trading for members and restrict presidential involvement with cryptocurrencies. The EU approved the Paramount-Warner Bros. Discovery merger, while the US deal faces legal challenges. Comcast beat earnings and achieved profitability with its Peacock streaming service.