🚀 Tech bubble concerns growing

In partnership with

Market Overview
Read time 1.4 minutes

Year To Date Performances:

1. Global investors are growing increasingly uneasy about a potential AI-driven tech bubble after a sharp sell-off in U.S. technology shares reignited concerns over inflated valuations. The IMF and Bank of England both issued warnings this week, with Governor Andrew Bailey cautioning that AI’s productivity potential could be undermined by uncertainty over future earnings. Goldman Sachs’ CEO predicted a possible 10–20% market correction within two years, while Japan’s SoftBank saw nearly $50 billion wiped from its value amid the downturn. Still, some investors view the dip as a buying opportunity, while others are shifting toward emerging markets like India and Brazil to avoid overexposure to U.S. tech giants.

2. After more than a decade of investment in custom silicon, Google’s in-house AI chips are emerging as its secret weapon in the race against Nvidia. The company unveiled its newest Tensor Processing Unit, Ironwood, its seventh generation and four times faster than the last, as cloud demand surges. Google’s TPUs, now powering massive deals with Anthropic and Meta, are driving a 34% jump in Google Cloud revenue and giving Alphabet a cost and performance edge in AI infrastructure. Analysts say Google is the furthest ahead among hyperscalers in deploying custom AI chips at scale, and growing developer adoption could make TPUs a formidable alternative to Nvidia’s GPUs.

3. Ford is reportedly weighing whether to end production of its all-electric F-150 Lightning, once hailed as the company’s most important vehicle since the Model T, amid mounting losses and worsening EV market conditions. The Wall Street Journal says discussions are ongoing but not final, and a Ford source confirmed the company is reassessing its EV strategy amid regulatory shifts and weak demand. Despite being the U.S.’s best-selling electric pickup, Lightning sales have stalled at around 25,000 units this year, far below initial expectations. The move would mirror broader industry retrenchment, with Stellantis canceling its electric Ram and GM scaling back its own electric truck ambitions.

   Headlines

   1. Sam Altman projects that OpenAI will hit $20B in revenue this year.

   2. A new report shows that Meta projected that 10% of its 2024 revenue was from scams and fraudulent ads.