Unveiling the Rise of Tech Giants: Apple, Alphabet, and Nvidia Shake Up AI Industry

Updated On: March 18, 2024 8:21 am

A Glimpse into Today’s Market Dynamics

Asia-Pacific markets close with a flourish, led by Japan’s Nikkei surging by 2.67% in expectation of the Bank of Japan’s forthcoming meeting. The excitement continues with Taiwan’s TAIEX rising by 1.00%, China’s Shanghai Composite gaining 0.99%, and South Korea’s KOSPI adding 0.71%. Meanwhile, India’s SENSEX advances by 0.14%, Hong Kong’s Hang Seng closes 0.10% higher, and Australia’s ASX All Ordinaries ends the day flat, up by a mere 0.02%. On the European front, markets are a mixed bag at midday trading, while US equity futures waver as companies like Boeing (BA) face renewed pressure.

This morning, with little fanfare from earnings reports or economic data, tech enthusiasts braced themselves for Nvidia’s CEO Jensen Huang’s much-anticipated GTC keynote. However, the tranquility shattered as news broke of Apple in talks to integrate Alphabet’s Gemini AI engine into the iPhone, alongside Nvidia’s advancing negotiations to acquire the AI infrastructure management platform Run:ai.

The potential collaboration between Apple and Alphabet hints at exciting new iPhone features powered by Alphabet’s generative AI models, further solidifying the relationship between the two tech giants. On the other hand, Nvidia’s interest in Run:ai is a strategic move, given Run:ai’s tailored orchestration and virtualization software designed for AI workloads on GPUs and similar chipsets. The air is abuzz with anticipation for Jensen’s keynote at 4 PM ET, ironically named, “Don’t Miss This Transformative Moment in AI.” Speculations abound on announcements regarding Nvidia’s B100 chip, possibly its most formidable AI GPU to date, and insights into the company’s chip demand amid soaring guidance and future product plans.

Insightful Data Dive

International Economic Pulse

China reports a promising 7.0% year-on-year expansion in industrial production for January-February, outpacing December 2023’s growth at 6.8% and surpassing market forecasts of 5%. The Euro Area sees consumer price inflation holding at 2.6% year-on-year in February, slightly easing but still above the European Central Bank’s 2% target.

Domestic Economic Outlook

The March NABH Housing Market Index, slated for release at 10 AM ET, is expected to mirror February’s reading of 48.

Market Recap

Friday’s market dance witnessed the Russell 2000 as the lone index to close higher, signaling a 0.40% increase. Conversely, the Dow retreated by 0.49%, the S&P 500 slipped 0.65%, and the Nasdaq Composite dipped by 0.96%. Mega-cap players in Technology, Communication Services, and Consumer Discretionary sectors once again took center stage, largely steering the market’s direction. Notably, Newell Brands (NWL) wrapped up the day on a high note with a 5.96% surge following the announcement of an upcoming shareholder meeting.

Here’s a snapshot of the major market indicators year-to-date:

Dow Jones Industrial Average: 2.72%
S&P 500: 7.28%
Nasdaq Composite: 6.41%
Russell 2000: 0.60%
Bitcoin (BTC-USD): 65.89%
Ether (ETH-USD): 63.16%

Promising Stocks on the Radar

Amidst the market buzz, Science Applications (SAIC) prepares to unveil its quarterly earnings before the bell rings, as pre-market activity hints at a robust start with 257 S&P 500 companies in focus.

The Nasdaq Morning Report: Key Updates for Investors

As the Nasdaq morning session kicks off, trading activity is bustling with 202 gainers and 55 decliners. Among the decliners, notable names include Ingersoll Rand (IR), J.M. Smucker (SJM), and Boeing (BA). On the flip side, the gainer leaderboard is ablaze with several Technology names such as Alphabet (GOOG, GOOGL), Tesla (TSLA), Micron Technology (MU), and Nvidia (NVDA).

Insights into Market Dynamics

Rumors abound in the financial domain hinting at Reddit’s (RDDT) upcoming Initial Public Offering (IPO) being significantly oversubscribed. The enthusiasm swirling around the social media platform’s shares could potentially propel it towards the coveted $6.5 billion valuation mark. With a price range set at $31-$34 per share, onlookers eagerly await the IPO’s outcome, anticipated to finalize later this week.

In a bid to keep investors on their toes, Tesla (TSLA) disclosed plans for a $1K price hike on all Model Y cars in the U.S starting April 1st. European customers will also witness a surge in Model Y prices by approximately EUR 2K or equivalent values in local currencies starting March 22nd.

Meanwhile, Microsoft (MSFT) is gearing up to add a new dimension to its LinkedIn platform by integrating puzzle-based games, offering users a novel interactive experience within the professional realm.

Business giants like United Airlines (UAL), Southwest Airlines (LUV), and Ryanair Holdings Plc (RYAAY) find themselves grappling with production adjustments as Boeing diverts its attention towards rectifying quality issues, leading to delayed aircraft deliveries.

Stepping into the retail arena, Target (TGT) recently implemented new restrictions at its self-checkout kiosks, limiting transactions to 10 items or less at over 2,000 stores across the U.S. A pragmatic move to streamline customer flow and enhance operational efficiency.

Simultaneously, HashiCorp (HCP) witnessed a significant after-hours surge of 12% post reports circulating about the cloud software company exploring potential sale opportunities, fueling investor interests and speculations.

Across the seas, reports from the Swiss newspaper NZZ suggest that UBS (UBS) Chairman, Colm Kelleher, is eyeing mergers and acquisitions prospects within the United States in the foreseeable future, hinting at possible strategic expansions in the financial sector.

Upcoming Market Events

Tuesday, March 19

Eurozone: ZEW Economic Sentiment Index – March
US: Housing Starts & Building Permits – February

Wednesday, March 20

UK: Inflation Rate, Producer Price Index – February
Eurozone: Consumer Confidence (Flash) – March
US: Weekly MBA Mortgage Applications
US: FOMC Rate Decision –

Thursday, March 21

Eurozone: New Car Registrations – February
Eurozone: HCOB Flash Manufacturing & Services PMI – March
UK: S&P Global Flash Manufacturing & Services PMI – March
UK: Bank of England Interest Rate Decision
US: Weekly Initial & Continuing Jobless Claims
US: S&P Global Flash Manufacturing & Services PMI – March
US: Existing Home Sales – February
US: Leading Indicators – February

Friday, March 22

UK: Retail Sales – February

Inspirational Closure

“It is impossible to live without failing at something unless you live so cautiously that you might as well not have lived at all – in which case, you fail by default.” —J.K. Rowling