Yusuf Mehdi, enforcement vice president and user main selling serviceman astatine Microsoft, speaks astatine a institution briefing successful Redmond, Wash., connected May 20, 2024. Microsoft unveiled a caller class of PC that features generative artificial quality tools built into Windows, the company's world-leading operating system.
Jason Redmond | AFP | Getty Images
The euphoria astir artificial quality is colliding with the limits of reality, and cracks are emerging.
Last night, tech giants similar AMD smashed expectations connected AI spot demand, and Palantir reported different 4th of beardown growth. Yet the Nasdaq fell, revealing Wall Street's playlist is stuck connected 1 track: AI mania.
Palantir — the poster kid of that obsession — plunged astir 8% contempt its blowout quarter, portion Oracle dropped astir 4%. Even AI darlings Nvidia and Amazon pulled back.
The message? It's AI oregon thing — and that passageway imaginativeness is flashing informing signs.
What you request to cognize today
AMD beats estimates. AMD that exceeded Wall Street expectations but provided borderline guidance successful enactment with estimates. Both gross and nett income exceeded expectations. Despite this, the banal slipped successful extended trading.
IBM layoffs. The institution told CNBC Tuesday that it volition laic disconnected "a debased single-digit percent of our planetary workforce," adding that IBM anticipates that its U.S. employment volition stay level twelvemonth implicit year. IBM employed 270,000 radical astatine the extremity of 2024, and a 1% chopped to headcount would correspond the nonaccomplishment of 2,700 jobs.
Musk's trillion-dollar wage bundle opposed. Norway's $2 trillion sovereign wealthiness money said it will ballot against Elon Musk's trillion-dollar wage package at Tesla's yearly shareholder gathering this week, rebelling against absorption guidance and threats from Musk to measurement down if the woody is rejected.
Tech drags U.S. markets. All 3 large U.S. indexes fell connected Tuesday, arsenic tech stocks mislaid ground. The tech-heavy Nasdaq Composite plunged much than 2%, portion the S&P500 declined 1.17% and the Dow Jones Industrial Average dipped 0.53%.
[PRO] Stocks successful correction? CEO of Ritholtz Wealth Management Josh Brown said Tuesday the stock marketplace is going done a correction, adjacent if the indexes person yet to bespeak it.
And finally...
President and CEO of Saudi's Aramco, Amin H. Nasser, speaks during the Future Investment Initiative (FII) successful Riyadh, Saudi Arabia October 29, 2024.
Hamad I Mohammed | Reuters
Saudi Arabia volition capitalize connected its abundant proviso of inexpensive earthy state and renewables to alteration the kingdom into a planetary person successful artificial intelligence, Aramco CEO Amin Nasser told CNBC successful an interview.
Aramco, the world's largest lipid company, disclosed successful precocious October that it plans get a important number involvement successful the new artificial quality institution Humain. Saudi Arabia's sovereign wealthiness fund, PIF, is the bulk proprietor of Humain, which launched successful May.
"Here, if you privation renewable, you volition find the lowest outgo renewable," Nasser said. "If you privation gas, you volition find the lowest outgo gas. Energy is disposable and onshore is besides disposable to physique each these things."
— Spencer Kimball
English (US) ·