Tech

Tesla is pivoting from EVs to AI and robotics, projecting $20 billion in capital expenditure this year. This “burn the ships” strategy includes significant investment in driverless technology, humanoid robots, and chip manufacturing, with plans for a “Tesla TeraFab.” While automotive revenue declined, Tesla is repurposing production lines for its Optimus robot and expanding its Robotaxi service, aiming to redefine itself as an AI leader, though challenges and competition remain.

Apple reported strong first-quarter earnings, forecasting 13-16% revenue growth. However, production is constrained by limitations in advanced semiconductor manufacturing, particularly for their proprietary chips. CEO Tim Cook highlighted that access to leading-edge nodes from TSMC is the primary bottleneck, intensified by high AI data center demand. While Apple is expanding its supply chain and investing in domestic chip manufacturing, near-term challenges persist.

Apple’s fiscal first quarter saw strong revenue growth, driven by a 23% surge in iPhone sales and solid performance in its Services division. The company beat analyst expectations for both revenue and earnings, with particularly impressive growth in Greater China. Despite concerns over memory costs, Apple provided an optimistic outlook for the next quarter, projecting double-digit revenue growth and improved gross margins. A new AI partnership with Google is also poised to enhance future offerings.

Despite strong iPhone demand boosting Apple’s revenue, the tech sector experienced volatility. Meta surged on AI returns, while Microsoft plunged due to high AI spending and slowing cloud growth. The Nasdaq and S&P 500 dipped, and Bitcoin fell sharply. Geopolitical tensions impacted oil prices, and gold rebounded. Key developments include Amazon exploring an OpenAI investment and Norway’s sovereign wealth fund reporting record profits, driven by tech gains.

President Trump is set to announce the next Federal Reserve chair, a decision impacting the global economy. Tech giants reported mixed earnings, with Apple and Meta showing resilience while Microsoft suffered a significant downturn. This led to a broader market decline, with precious metals and cryptocurrencies also falling. Key developments include US-Denmark Greenland talks, a Trump lawsuit against the IRS, China’s consumer spending initiative, and declines in Asia-Pacific markets. Norway’s sovereign wealth fund reported record profits.

The Federal Reserve held interest rates steady, but attention focused on Fed Chair Powell’s defense of his presence at a crucial legal proceeding involving Fed Governor Lisa Cook, warning his successor against political entanglement. Meanwhile, UK PM Starmer visited China, signaling efforts to deepen ties, with early signs of cooperation. Corporate earnings from Meta, Microsoft, and Tesla showed mixed investor reactions despite exceeding expectations. The S&P 500 neared 7,000, the dollar strengthened, and gold prices hit new highs. European banks and pharma companies also reported positive results.

SAP’s stock plunged 16% as fourth-quarter cloud backlog growth of 16% missed analyst expectations. The company cited large transformational deals and legal termination clauses for the shortfall, though CEO Christian Klein remains optimistic about future revenue acceleration. Investors are also watching SAP’s response to AI’s potential impact on software development demand and its own R&D integration efforts.

Toyota solidified its position as the world’s top-selling automaker in 2025, with record sales of 10.5 million units. The company’s success, particularly in the U.S. market, was driven by strong demand for its hybrid vehicles and effective navigation of tariffs. This performance outpaced rivals Volkswagen and Hyundai, with Toyota also raising its profit forecast due to cost controls and diversified global sales.

Norway’s sovereign wealth fund achieved a record-breaking $247 billion return in 2025, reaching $21.27 trillion. Driven by strong equity performance, particularly in tech, financials, and basic materials, the fund saw a 19.3% return from its stock holdings. Fixed income, real estate, and renewable energy also contributed positively. This growth occurred despite some scrutiny over divestments.

U.S. stock futures were flat as Fed Chair Powell offered no clear policy direction. Major tech firms showed divergent fortunes: Meta’s AI bets boosted its stock, while Microsoft faced headwinds from slowing cloud growth. Tesla reported strong earnings but announced a shift away from legacy models to focus on robotics and AI, also investing in Musk’s xAI. The U.S. dollar rebounded after Treasury Secretary Bessent dismissed intervention speculation. Financial giants are backing a “Trump accounts” initiative for children.