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SpaceX slides as AI spending worries overshadow early returns
Reuters10d agoneutral
SpaceX slides as AI spending worries overshadow early returns

SpaceX touted faster-than-expected returns from its AI spending on its first-ever earnings call as a public company. SpaceX reported AI revenue that more than tripled from a year earlier and disclosed several new cloud computing agreements, even as quarterly capital spending on ​AI climbed to $15.8 billion. Chief Financial Officer Bret Johnsen said the economics of those investments were improving rapidly, but also signaled that AI spending would remain elevated.

Nvidia bankrolls its rivals
Axios10d agoneutral
Nvidia bankrolls its rivals

Nvidia is weighing more than $750 billion in AI investments, financing deals and partnerships — betting that any growth in the compute market will ultimately benefit its chip business.

Nvidia Stock Gets a SpaceX Boost as Chip Rival Stumbles
Barrons.com10d agoneutral
Nvidia Stock Gets a SpaceX Boost as Chip Rival Stumbles

Nvidia stock was gaining early Wednesday after the chip maker got a vote of confidence from Elon Musk’s SpaceX It might not be hurting that its chief artificial-intelligence processor rival Advanced Micro Devices looks set for a bad day. Nvidia shares were up 2.5% at $217.30 in the premarket. The move comes after SpaceX said it would exclusively use Nvidia AI chips.

AMD falls as investors seek bigger AI payoff
Reuters10d agobearish
AMD falls as investors seek bigger AI payoff

Advanced Micro Devices shares declined before the bell on Wednesday as the chipmaker's stronger-than-expected revenue forecast ‌fell short of lofty expectations and investors sought clearer ‌signs that a multibillion-dollar AI spending boom will translate into faster growth. The move underscores elevated expectations facing AMD as it aims to challenge Nvidia's dominance amid intensifying competition with Intel racing to ‌regain technology leadership after ⁠strong results. "We suspect expectations had moved higher following Intel’s results a couple of weeks ago, and the ⁠buyside already has a fairly bullish outlook," said Stacy Rasgon, analyst at Bernstein.

AI demand pushes Foxconn's monthly revenue to record in July
Reuters10d agoneutral
AI demand pushes Foxconn's monthly revenue to record in July

Monthly revenue at Taiwanese contract electronics manufacturer Foxconn hit a record ‌in July, surpassing T$900 billion ($27.93 billion) for ‌the first time as strong demand for AI products boosted sales, ​the company said on Wednesday. Foxconn, a major supplier to Nvidia and Apple, said revenue last month rose 54.2% from a year earlier to T$946.5 billion. Its cloud ‌and networking products division, ⁠which includes AI servers, saw strong growth, benefiting from "strong pull-in momentum for AI ⁠products", the company said.