Tech

Alibaba (BABA) reported a mixed Q1 fiscal year performance. Net income beat expectations with a 78% jump, driven by equity gains and the Trendyol sale. Revenue, however, fell short of estimates. Cloud computing revenue soared 26%, fueled by AI demand, with AI-related product revenue growing at a triple-digit rate for the eighth consecutive quarter. Despite macroeconomic headwinds in China, Alibaba’s stock showed resilience. Investors are optimistic about AI initiatives and investments.

A recent survey indicates Tesla’s Full Self-Driving (FSD) system may be deterring more U.S. buyers than attracting them, with nearly half believing FSD should be illegal. This comes as Tesla faces slowing sales, increased competition, and reputational damage from Musk’s actions. European sales are also down. While Musk sees FSD as a key advantage, Tesla lags in robotaxi development. Consumers desire clearer regulations and manufacturer accountability for automated vehicles. Tesla faces increasing concerns about safety and brand reputation, especially after recent legal setbacks.

Affirm shares soared after reporting strong fiscal fourth-quarter results, beating expectations with EPS of 20 cents and revenue of $876 million. Revenue jumped 33% year-over-year, and gross merchandise volume increased by 43% to $10.4 billion. The company reported a net income of $69.2 million, a significant improvement from the previous year’s loss. Affirm projects first-quarter revenue between $855 million and $885 million. Despite facing competition from Klarna and Walmart’s shift, Affirm has partnerships with Amazon, Shopify, and Apple.

Dell Technologies exceeded analyst expectations for both EPS and revenue in Q2, driven by a 69% surge in server and networking revenue, including AI servers. Full-year revenue outlook was also raised. However, shares dipped in after-hours trading as Q3 EPS guidance fell short of estimates, despite higher revenue projections. The company attributed the profit forecast’s concentration in Q4 to seasonal patterns. Dell plans to double AI server shipments in FY26, emphasizing its commitment to the AI market. Storage revenue declined, while Client Solutions Group saw modest growth.

Intel received a $5.7 billion U.S. government investment as part of a White House initiative taking a 10% equity stake. CFO David Zinsner also suggested exploring outside investment for Intel’s foundry business, a key growth area. While Q2 results beat expectations, shares dropped due to foundry capital intensity concerns. Intel cautioned that the deal could face “adverse reactions” from stakeholders, including investors and foreign governments, and increased scrutiny. The White House acknowledges the deal is still being finalized.

Nvidia’s recent SEC filing reveals that two major clients comprised 39% of its Q2 revenue, a significant increase year-over-year, raising concerns about customer concentration. While Nvidia names these as ‘Customer A’ and ‘Customer B’, it is not clear if those are cloud providers, but ‘large cloud service providers’ contribute ~50% of data center revenue. Indirect clients contribute significantly via Customers A & B. Nvidia also highlighted revenue from an “AI research and development company” via both direct and indirect channels and anticipates $20 billion in revenue for “sovereign AI” initiatives this year.

Nvidia’s Q2 earnings beat expectations with a 56% revenue surge to $46.74B and EPS of $1.05. Data center revenue, while growing 56% YoY, slightly missed estimates for the second consecutive quarter. Nvidia forecasts $54B in revenue for the next quarter, excluding potential China H20 shipments. CEO Jensen Huang highlighted the immense long-term AI opportunity, projecting infrastructure spending could reach $3-4 trillion by 2030. Analysts maintain a positive outlook, citing solid growth and consistent performance.

A Stanford study reveals generative AI’s disproportionate impact on early career job prospects. Analyzing ADP payroll data, researchers found a 13% employment decline since 2022 for 22-25 year olds in AI-exposed sectors like customer service and software development. Conversely, experienced workers in the same fields and workers in less AI-vulnerable occupations saw stable or growing employment. AI’s ability to replace “codified knowledge” may disadvantage younger workers, while its complementary role in some areas sustains employment.

Tesla’s European sales plummeted 40% in July, marking the seventh consecutive month of decline despite overall BEV market growth. Chinese competitor BYD surged with a 225% increase. Intensifying competition, potentially coupled with brand impact from Elon Musk’s public persona and ties to the Trump administration, are contributing factors. Tesla’s global performance faces scrutiny, with concerns about its aging vehicle lineup. BYD’s aggressive European expansion, capturing over 5% market share, intensifies the pressure on Tesla and legacy automakers.

Microsoft fired two employees after a protest at its Redmond headquarters by “No Azure for Apartheid,” a group objecting to the Israeli military’s use of Microsoft software. The company cited serious breaches of policy and unlawful break-ins. The group claims the terminations involved Riki Fameli and Anna Hattle. Microsoft is investigating the protest, which included blocking access to an executive’s office and planting recording devices. This follows earlier protests and accusations that the Israeli military misused Microsoft’s Azure cloud.