Tobias

Alphabet’s stock rose 3% after unveiling Gemini 3, its enhanced AI model, prompting analyst optimism. DA Davidson lauded Gemini 3 as “genuinely strong,” potentially exceeding current LLMs, while maintaining a neutral rating. Bank of America Securities sees it as a “positive step” closing the gap with rivals like OpenAI, retaining a buy rating. Berkshire Hathaway’s investment also boosted confidence. Year-to-date, Alphabet shares have climbed over 55%, reflecting AI momentum and market position.

Perplexity will launch a free AI-powered shopping product next week, aiming to simplify the consumer journey and compete directly with e-commerce giants. Partnering with PayPal, Perplexity provides access to 5,000+ merchants. This expansion builds upon their “Buy With Pro” feature, utilizing personalized results to reduce purchase friction. The move challenges OpenAI’s “Instant Checkout” and highlights the growing integration of AI in e-commerce. PayPal will handle key functions like order fulfillment and returns, while Perplexity leverages NLP and ML to personalize product recommendations. Specific revenue models remain undisclosed.

Nvidia is set to release its fiscal Q3 earnings, expected to show strong revenue ($54.92B) and EPS ($1.25). Investors are focused on future guidance, particularly revenue projections ($61.66B) and insights into the burgeoning AI chip demand and Nvidia’s capacity to meet it. Commentary from CEO Jensen Huang about the $500B in chip orders is crucial. The company’s strategic investments in AI firms like OpenAI and Anthropic, and its approach to the China market will also be closely watched. Long-term growth projections remain bullish, with sales expected to surge in fiscal year 2027.

Video generation startup Luma AI secured $900 million in funding led by Humain, backed by Saudi Arabia’s PIF, valuing Luma AI at over $4 billion. Luma AI pioneers multimodal “world models” and claims its Ray3 surpasses OpenAI’s Sora 2 in performance. Humain and Luma AI are collaborating on Project Halo, a 2-gigawatt AI supercluster in Saudi Arabia. The partnership includes the Humain Create initiative, developing sovereign AI models trained on regional data. Luma AI is also addressing copyright concerns and data bias in AI models.

Nvidia’s fiscal 2026 Q3 earnings are highly anticipated, with focus on AI spending. Analysts expect EPS of $1.25 on $54.92B revenue, a 53% YoY increase. Revenue from data centers is projected to make up $49.04B. Key questions include the sustainability of 40% capex growth, plans for free cash flow, and details on $500B in orders for Blackwell/Rubin. Concerns remain about funding AI investments and interconnectedness among major players which could lead to systemic risk. Demand signals remain strong, bolstering Nvidia’s position for long-term investors.

Larry Summers resigned from OpenAI’s board following the release of emails between him and Jeffrey Epstein. Public scrutiny, triggered by congressional release of documents, led to widespread criticism and calls for Summers to disassociate himself from OpenAI. His departure, amid growing competition in the AI space and a DOJ investigation into Epstein’s connections, raises questions about OpenAI’s governance and ethical oversight. Harvard University also faces pressure to distance itself from Summers. He acknowledged his actions and apologized for the pain caused.

Key market updates include: Nvidia’s AI dominance faces scrutiny amid earnings and partnerships with Microsoft/Anthropic, challenging OpenAI. Google unveils Gemini 3 to compete. Target and Lowe’s report mixed retail results. The Epstein Files Transparency Act’s passage prompts fallout, including resignation from OpenAI’s board. Meta wins antitrust battle, keeping Instagram/WhatsApp. Netflix expands into merchandise and IRL experiences.

Despite substantial AI investment, AI stocks are struggling, causing investor unease. Microsoft and Nvidia are investing $15B in Anthropic, highlighting symbiotic relationships in the AI sector. Google launched Gemini 3, emphasizing enhanced reasoning. However, Nvidia, Amazon and Microsoft experienced declines, impacting the S&P 500. Nvidia’s upcoming earnings are crucial. Other news includes Anthropic’s funding by Microsoft and Nvidia, Google’s Gemini 3 launch, U.S. senators calling for crypto firm investigation and Goldman Sachs projecting strong growth for ASML that dominates key segment of AI supply chain.

The Dutch government has suspended its intervention in Chinese-owned chipmaker Nexperia’s operations following constructive dialogues with China, potentially easing global chip shortage concerns. This move, seen as a show of goodwill, signals a potential de-escalation in trade tensions. China appears to be allowing European and other international companies to resume exporting Nexperia-manufactured chips. While this provides immediate relief to industries like automotive, underlying tensions regarding technology transfer and control persist, requiring a comprehensive framework for managing cross-border investments in sensitive technologies.

Despite a broader equities sell-off, investor sentiment towards AI remains resilient. European and Asian markets have experienced losses, mirroring U.S. trends, pressuring AI stock valuations. Nvidia’s upcoming earnings report is crucial for gauging the AI market’s health. Analysts suggest this pullback is sector-specific, presenting potential buying opportunities and portfolio rebalancing chances. Experts emphasize that AI’s growth is still in its early stages, fueled by nascent credit market involvement, but also caution investors to ensure compensation for risk.