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Nvidia CEO Loses $10 Billion as Chip Stocks Plunge

Nvidia CEO Loses $10 Billion as Chip Stocks Plunge: Jensen Huang, the Chief Executive Officer of Nvidia Corp., recently faced one of the most significant financial setbacks of his career.
In a single day, his net worth plummeted by $10 billion,
marking the largest wealth decline he has experienced
since the Bloomberg Billionaires Index began tracking his fortune in 2016.
This staggering loss was driven by a sharp downturn in Nvidia’s stock,
coupled with news that the U.S. Department of Justice (DOJ)
had issued subpoenas to the company as part of an ongoing antitrust investigation.

Content

The Wealth Plunge

DOJ Investigation

Huang’s Journey
Conclusion

The Wealth Plunge: A Historic Drop for Jensen Huang

On Tuesday, Huang’s net worth fell to $94.9 billion,
a drop of approximately $10 billion in just one day.
This dramatic decline coincided with a 9.5% fall in Nvidia’s stock price,
a company that Huang co-founded and transformed
into one of the leading players in the global semiconductor industry.
The drop was not just a reflection of market volatility
but also a reaction to heightened regulatory scrutiny from the DOJ.
The investigation reportedly revolves around Nvidia’s
dominant position in the market and its business practices,
which some officials believe could be stifling competition.

DOJ Investigation: Escalating Antitrust Concerns

According to a Bloomberg report,
the DOJ has issued subpoenas to Nvidia as part
of its probe into potential antitrust violations.
The subpoenas are legally binding documents requiring
recipients to provide information that could be pivotal in the government’s investigation.
This move signifies a critical step toward
a possible formal complaint against the tech giant.
The DOJ’s concern lies in Nvidia’s market practices,
particularly its influence on the supply chain
and potential penalization of customers who do not exclusively use its artificial intelligence chips.

Nvidia’s success has made it a key player in the semiconductor industry,
particularly in the AI sector,
where its chips are considered unparalleled in performance.
However, this dominance has drawn scrutiny,
as antitrust officials worry that Nvidia may be making
it increasingly difficult for other suppliers to compete,
thereby limiting customer choices.

Huang’s Journey and Nvidia’s Market Dominance

Despite the recent setback, Huang remains the world’s 18th richest individual,
with his net worth having grown by $51 billion year-to-date,
even after Tuesday’s steep decline.
Born in Taiwan and raised in Thailand, Huang emigrated to the United States,
where he co-founded Nvidia in 1993.
Since then, Nvidia has grown into the world’s third-largest company by market value,
driven by the superior performance of its
products and the challenges faced by competitors in developing viable alternatives.

In response to inquiries about the ongoing probe,
Nvidia has defended its market position,
stating that its success is due to the quality of its products,
which deliver faster and more efficient performance than those of its rivals.

Conclusion

The recent events mark a tumultuous period for Nvidia and its CEO, Jensen Huang.
As the DOJ intensifies its scrutiny of Nvidia’s business practices,
the company faces not only financial challenges
but also the potential for significant legal battles ahead.
For Huang, whose fortune has been built on Nvidia’s unparalleled
growth and innovation,
the road ahead could redefine his company’s
role in the tech industry and its impact on global markets.

Nvidia CEO Loses $10 Billion as Chip Stocks Plunge

Asian Stocks Rebound After Global Decline

Asian Stocks Rebound After Global Decline, Yen Rises

Asian stocks rebounded after a global sell-off as investors awaited U.S. employment data,
which could impact the Federal Reserve’s interest rate decisions.
Meanwhile, Chinese markets saw moves to support the struggling real estate sector amid weak political support.

Content

Performance of Asian Stock Indices
Impact of U.S. Data and Global Movements
China and Commodities Movements

Performance of Asian Stock Indices

Asian markets bounced back after a global sell-off, with attention focused on upcoming U.S. employment data to gauge the future direction of the Federal Reserve’s monetary policy. The MSCI Asia Index rose by 0.8% after a more than 2% drop the previous day. This recovery was led by chip-making companies in South Korea and Taiwan, while indices in China and Hong Kong also opened higher.
U.S. Treasury bonds stabilized after the 10-year bond yield fell, bolstering expectations of significant interest rate cuts by the Federal Reserve. Meanwhile, the dollar dropped by 0.3%, and the yen trimmed its earlier gains, which were supported by real wage increases in Japan.

Impact of U.S. Data and Global Movements

Global financial markets reacted with volatility to U.S. economic data, as doubts lingered about the Federal Reserve’s ability to achieve a “soft landing.” In the tech sector, companies like Nvidia saw their worst two-day drop since October 2022. Attention now shifts to the U.S. jobs report, expected to heavily influence the Fed’s rate-cut decisions in the coming weeks.
In Asia, Nippon Steel shares halted their continuous decline following reports of potential intervention by U.S. President Biden in its $14.1 billion acquisition of United States Steel. U.S. Steel shares saw their steepest drop since 2017 in New York.

China and Commodities Movements

China is considering cutting interest rates on up to $5.3 trillion in mortgage loans to support the faltering real estate market.
Investor sentiment remains weak, with JPMorgan canceling its buy recommendation for Chinese stocks due to weak political support and potential volatility tied to the U.S. presidential election.
In commodities, oil prices rose following a report indicating a significant drawdown in U.S. crude inventories,
while gold held steady around $2,495, buoyed by U.S. job vacancy data.

Asian Stocks Rebound After Global Decline, Yen Rises

Asian Stocks Rise Led by Japan, Yen Stabilizes as Fed Decision Looms

Asian Stocks Rise Led by Japan, Yen Stabilizes as Fed Decision Looms

Asian stocks saw a significant rise on Tuesday, with Japanese shares leading the rally,
while the yen stabilized after its notable decline against the dollar last week.

Topic

Details

September Caution and Market Expectations

Economic Data and Its Impact on the Dollar

Details

Japanese stocks benefited from the overall market rise, accompanied by gains in Hong Kong stock futures, while stocks in Sydney remained mostly unchanged. Conversely, U.S. stock futures dipped ahead of Wall Street’s reopening later today, following the Labor Day holiday.

The Japanese yen saw a slight increase after an additional decline against the dollar on Monday, which had exacerbated its losses from the previous week. Mark Matthews, Head of Asia Research at Julius Baer, believes that the yen’s weakness may persist for an extended period due to the significant interest rate differential between the United States and Japan. In an interview with Bloomberg TV, Matthews noted that Japan’s interest rate is expected to be 0.5% by March next year, while the U.S. federal funds rate is expected to be 4.5%, leaving a substantial gap of 400 basis points.

As traders in Asia closely monitor any new signs of economic slowdown in China, recent data indicated that Chinese factory activity contracted for the fourth consecutive month in August. This slowdown underscores the urgent need for new government stimulus, especially as inventories of key raw materials like steel and soybeans accumulate.

September Caution and Market Expectations

Traders are approaching September with considerable caution, as historical data shows that this month has been unfavorable for stocks in recent years. All eyes are on the upcoming U.S. jobs report on Friday, which could play a crucial role in determining the direction of interest rates. Some expect the Federal Reserve to begin a cycle of monetary easing this month, but strategists at JPMorgan warn that any rate cuts may not necessarily boost the stock market, particularly with the anticipated economic slowdown and the seasonal pressures of September.

Economic Data and Its Impact on the Dollar

The jobs data is likely to indicate a gradual slowdown in the U.S. labor market, which could prompt traders to adjust their expectations for interest rate cuts. According to Valentin Marinov, Head of G10 FX Strategy at Credit Agricole CIB, this could strengthen the dollar, especially if the Federal Reserve proceeds cautiously at its upcoming meeting.

In the commodities market, oil prices rose after Libya declared force majeure at a major oil field, leading to a reduction in global daily supplies by nearly one million barrels.

Asian Stocks Rise Led by Japan, Yen Stabilizes as Fed Decision Looms

Restoring Confidence: Alibaba Surpasses Investigations

Restoring Confidence: Alibaba Surpasses Investigations and Begins a New Chapter

Alibaba regained the Chinese government’s confidence after three years of investigations by implementing corrective measures,
reflecting Beijing’s support for the tech sector.
Despite the improvement, the industry still faces significant challenges such as slowing consumer spending.

Topic

A New Dawn for the E-Commerce Giant

Investigations and Corrective Measures

Ongoing Challenges and Concerns

A New Dawn for the E-Commerce Giant

After more than three years of intensive investigations, Alibaba Holding has regained the confidence of the Chinese government,
following the Antitrust Authority’s commendation of the company’s corrective actions.
This move reflects Beijing’s desire to support the technology sector, which is vital to the country’s economy.

Investigations and Corrective Measures

The Antitrust Authority began its investigation into Alibaba in 2020 as part of a broader regulatory campaign
that targeted various sectors of the digital economy.
During this period, the company ceased its monopolistic practices and improved its services and competitive landscape online.
These changes contributed to a more than 4% increase in the company’s shares during after-hours trading.

Ongoing Challenges and Concerns

Despite this improvement, China’s technology sector faces significant challenges,
including a decline in funding and a slowdown in consumer spending,
raising concerns about future growth.
Despite some companies issuing pessimistic warnings,
Alibaba remains optimistic about its future and reaffirms its commitment to innovation and investment in technology.

Restoring Confidence: Alibaba Surpasses Investigations and Begins a New Chapter

OpenAI Nears Funding That Could Raise Its Valuation to $100 Billion

OpenAI Nears Funding That Could Raise Its Valuation to $100 Billion
OpenAI is close to securing new funding valued at over $100 billion, led by Thrive Capital,
which will make it one of the most valuable startups in the world.
This funding will help enhance its computing power and support its expansion in generative artificial intelligence.

Content

Thrive Capital
New Funding

Thrive Capital

Thrive Capital Leads $1 Billion Investment Round
OpenAI is close to securing new funding valued at over $100 billion,
according to informed sources, with expectations that Thrive Capital will lead this round with an investment of around $1 billion.
Sarah Friar, OpenAI’s CFO, informed employees in an internal memo on Wednesday that the company is seeking new capital,
but did not disclose further details, according to the sources.

New Funding

New Funding Enhances OpenAI’s Capabilities and Supports AI Expansion
This move comes as part of OpenAI’s efforts since last December to raise funding that could increase its valuation to $100 billion or more, according to earlier reports from Bloomberg News.
This funding is expected to make the company one of the most valuable startups globally,
reflecting the growing demand for generative AI technologies.

OpenAI has gained widespread recognition through its ChatGPT program, backed by Microsoft,
which captured public interest due to its ease of use.
This success has accelerated the arms race among major tech companies,
which are working to integrate AI technologies into their products,
as well as supporting and funding other promising startups.

Friar noted in her memo that the new funding would help bolster computing capacity and cover rising operational expenses.
She also mentioned that the company plans to launch a tender later this year,
allowing employees to sell some of their shares, though these plans are still in early stages and details have not yet been confirmed.

The Wall Street Journal previously reported on Thrive Capital’s plan to invest in OpenAI.

OpenAI Nears Funding That Could Raise Its Valuation to $100 Billion

Nvidia’s Revenue Forecast Disappoints Investors and Impacts Tech Markets

Nvidia’s Revenue Forecast Disappoints Investors and Impacts Tech Markets: Nvidia, the leading AI chip manufacturer,
announced its revenue forecast for the third quarter of this year, which is estimated at $32.5 billion.
Although this figure exceeded analysts’ average estimates, it fell short of some more optimistic projections that reached $37.9 billion.
This news raised concerns about the company’s rapid growth, leading to a decline in tech stocks in global markets.

Content
Nvidia’s Forecast

Artificial Intelligence

AI Spending

Decline in Tech Stocks

Global Stock Markets

Asian Markets

Investment in Technology

Nvidia’s Revenue Forecast and Its Impact on the Market

Nvidia announced that its third-quarter revenue would reach $32.5 billion,
exceeding the average analyst expectation of $31.9 billion but falling short of some more optimistic forecasts of $37.9 billion.
Despite surpassing second-quarter sales expectations,
these numbers raised investor concerns that the company’s rapid growth might face a slowdown in the future.

Impact on the AI Boom and Market Value

Nvidia is one of the primary beneficiaries of the race to develop data centers and enhance AI applications,
which has contributed to its rise as the second-largest company in the world in terms of market value.
However, the company’s stock dropped after the revenue forecast announcement,
reflecting investor disappointment from those who had expected better performance,
especially given the stock’s value has been more than doubled since the beginning of the year.

AI Spending and Nvidia’s Dependence on Major Clients

The revenue forecast came after several quarters in which Nvidia’s results exceeded Wall Street expectations.
Still, much of this growth relied on a limited number of major clients, such as Google and Meta.
With these companies pouring billions into AI infrastructure,
concerns remain that the scale of these investments could surpass current needs, potentially leading to an economic bubble.

Decline in Tech Stocks After the Results Announcement

Major tech stocks declined in late trading after the market closed,
with investors disappointed by Nvidia’s results.
The Nasdaq 100 index fell by 0.5%, while Nvidia’s stock dropped by 3%.
This was influenced by revenue forecasts that fell short of some investors’ hopes for continued earnings growth.

Impact of the Forecast on Global Stock Markets

Nvidia’s forecast triggered a fresh wave of market volatility,
the S&P 500 index declined by 0.6%, and the Nasdaq 100 fell by 1.2%.
The volatility index (VIX) also rose to around 17 points,
reflecting the prevailing anxiety among investors about the future of tech stocks,
particularly amid macroeconomic data and semiconductor export controls that could heighten these fluctuations.

Impact of Nvidia’s Forecast on Asian Markets

Nvidia’s announcement also impacted Asian markets,
with significant chip manufacturers like Taiwan Semiconductor and SK Hynix seeing declines.
This led to a 0.5% drop in the MSCI Asia-Pacific Index.
These decreases highlight that Nvidia’s performance has a global effect,
influencing investor confidence across the tech sector.

The Future of Investment in Technology and Artificial Intelligence

Despite current challenges and volatility,
optimism remains strong about the future of AI and its role in driving growth and innovation.
Analysts believe that investment in this field will continue to thrive,
with the need to manage risk exposure carefully to ensure gains without falling into the trap of unsustainable inflation.

Nvidia’s Revenue Forecast Disappoints Investors and Impacts Tech Markets

Apple Plans to Unveil iPhone 16 on September 10

Apple Plans to Unveil iPhone 16 on September 10

Launch of the Latest iPhone, Watches, and Earbuds

Apple is set to unveil its latest smartphone, the iPhone 16,
on September 10 in what is expected to be the company’s biggest event of the year.
In addition to the iPhone 16, the company will also introduce updates to its Apple Watch and AirPods,
according to sources familiar with the matter.

Topic

Expected Date for Device Releases

The Importance of This Launch for Apple

Features of iPhone 16 and Anticipated Improvements

Updates to Wearable Devices

Upcoming Updates for Mac Devices

Expected Date for Device Releases

Although Apple has not officially announced the event date, the company is preparing to launch these products on the mentioned date, with sales expected to begin on September 20. This timeline aligns with the company’s usual pattern of launching devices shortly after unveiling them. A spokesperson for Apple, based in Cupertino, California, declined to comment on the matter.

The Importance of This Launch for Apple

The iPhone 16 launch is crucial for Apple, which has faced a slowdown in sales of its smartphones and wearables in recent financial quarters. The September 20 release is expected to contribute to some revenue in the company’s current fourth fiscal quarter, as Apple aims for a 5% year-over-year sales growth. The bulk of sales, however, is expected to occur in the following fiscal quarter, which coincides with the holiday season. Analysts estimate that revenue could rise by 7% to $128.4 billion during that period.

Features of iPhone 16 and Anticipated Improvements

The iPhone 16 will feature larger displays in the Pro models, along with new camera capabilities, including a dedicated photography button.
The company will also introduce a set of AI tools called Apple Intelligence.
However, the new phones are not expected to be significantly different from last year’s models.

Updates to Wearable Devices

Apple’s wearable devices are also expected to receive notable updates.
The Apple Watch Series 10 will be thinner and feature larger displays.
Apple is planning to refresh its lineup of earbuds, introducing new low- and mid-tier versions.
For the first time, the mid-tier earbuds will offer noise-canceling capabilities,
and the cheapest model will be updated for the first time since 2019.

Upcoming Updates for Mac Devices

Additionally, Apple is preparing to transition its Mac devices to M4 processors later this year,
although these updates typically arrive about a month after the iPhone launch.
The company has conducted extensive testing on four new Mac models to ensure compatibility with third-party applications,
a crucial step before the new devices are released.

These Mac devices represent base versions of the M4 chip, with three models featuring 10-core CPUs,
while the lower-end version includes an 8-core CPU. The devices will come with 16GB or 32GB of RAM.
These devices, including a smaller Mac Mini, a new MacBook Pro,
and updated iMacs equipped with M4 chips, are expected to be unveiled later this year.

Apple Plans to Unveil iPhone 16 on September 10

Asian Stocks Rise as Markets Await Fed and Bank of Japan Decisions

Asian Stocks Rise as Markets Await Fed and Bank of Japan Decisions

MSCI Index Posts Modest Gains Amid Global Market Volatility

Content

Details

Jerome Powell

Asian Markets

Details

Asian stocks saw a slight uptick today, with the MSCI Asia Index recording gains of 0.3%.
These increases were driven by strong performances in Japan and Hong Kong, while Chinese stocks showed mixed results.
This comes amid a sense of anticipation ahead of key decisions from the U.S. Federal Reserve and the Bank of Japan,
which are expected to chart the course for global interest rates.

Jerome Powell

Markets Overcome Recession Fears, Await Jerome Powell’s Guidance

Despite the market turbulence in recent weeks due to fears of a U.S. recession, markets have returned to relative stability, fueled by expectations that the Federal Reserve may move toward cutting interest rates. As the speech of Federal Reserve Chairman Jerome Powell at the Jackson Hole Symposium approaches, investors are cautiously awaiting new guidance that could be pivotal for the future of monetary policy.

Asian Markets

Asian Markets Movements and Stability in Gold and Oil Awaiting Central Bank Signals

In the currency markets, the Japanese yen paused its upward trajectory after four consecutive sessions of gains,
while U.S. government bond trading remained steady following a dip in short-term bond yields in the previous session.
Meanwhile, in commodity markets, oil and gold prices saw slight declines as expectations grew for a potential easing of monetary policy by the Federal Reserve.

Asian Stocks Rise as Markets Await Fed and Bank of Japan Decisions

AMD to Acquire ZT Systems

AMD to Acquire ZT Systems to Boost Data Center Capabilities and Challenge Nvidia

In a bold move to strengthen its position in the data center market,
AMD has announced plans to acquire server manufacturer ZT Systems
in a deal valued at approximately $4.9 billion, comprising a mix of cash and stock.

Topic

details

Fierce Competition

Challenges in Competing

Future Strategy

details

This acquisition is part of AMD’s strategy to enhance its technologies and increase its ability to compete with Nvidia, the market leader in this space.

ZT Systems, based in Secaucus, New Jersey, will become part of AMD’s Data Center Solutions Group, according to a statement released on Monday. AMD plans to retain ZT Systems’ design and customer service teams while looking to sell off the manufacturing division as part of its focus on data center technologies. Additionally, the deal includes a contingent payment of $400 million, which will be tied to the achievement of specific milestones.

Fierce Competition

AMD’s stock saw a 1.6% rise in New York on Monday, closing at $150.94 per share. The deal specifies that 75% of the purchase will be paid in cash, with the remaining 25% covered through AMD common stock.

This acquisition is particularly significant given the global shift towards artificial intelligence, which has become one of the most transformative technologies in recent years. ZT Systems has extensive experience in manufacturing servers for large-scale data centers, a customer segment that is heavily investing in new AI capabilities.

AMD CEO Lisa Su emphasized that AI is the company’s top strategic priority, and acquiring ZT Systems will enable AMD’s largest customers to deploy AI infrastructure more quickly and efficiently. She also highlighted that ZT Systems’ engineers have deep expertise in designing and managing high-performance, high-density systems, which will further strengthen AMD’s position in this rapidly growing market.

Challenges in Competing

As the second-largest provider of graphics processors, AMD is making significant efforts to compete with Nvidia,
which currently dominates the data center market for AI computing. Over the past year,
AMD has spent over a billion dollars to expand its presence in this market,
including the acquisition of Silo AI for $665 million to bolster its AI model development capabilities.

While AMD is making notable strides, Nvidia remains far ahead,
with analysts predicting that Nvidia will generate $100 billion in data center revenue this fiscal year.
However, AMD hopes to close the gap by expanding its product offerings and strengthening its foothold in the data center market.

Future Strategy

AMD is also seeking a strategic partner to acquire ZT Systems’ data center infrastructure manufacturing business,
a move expected to take place after the ZT Systems acquisition is finalized in the first half of 2025.
According to AMD CFO Jean Hu, the manufacturing division generated over $10 billion in revenue in the past 12 months,
making it a highly attractive asset for potential buyers in the industry.

These moves are part of AMD’s broader strategy to expand its presence in the data center market.
The company has achieved significant gains in recent years,
driving its market value to over $240 billion—more than double that of its long-time rival Intel.
Under the leadership of Lisa Su, AMD is committed to keeping pace with the rapid advancements
in this field and continuing to challenge Nvidia across all fronts.

AMD to Acquire ZT Systems

The Risks of the Antitrust Lawsuit Lost by Google

The Risks of the Antitrust Lawsuit Lost by Google: Last August, Google, a subsidiary of Alphabet,
suffered a significant setback when a U.S. judge found it illegally monopolizing the search market.
This ruling represents an important step in the Biden administration’s efforts to enhance competition in the market.
In this report, we explore the details of this case, its Risks, and its potential impact on Google and its future.

Contents

The Case Against Google

What Happens Now

Google’s Response

Antitrust Laws

Other Antitrust Cases Facing Google

Google’s Practices

Biden Administration

What Is the Case Against Google

The U.S. Department of Justice and state attorneys general accused Google of exploiting its dominance in the online search market,
which controls about 90% of search queries by paying billions of dollars to tech companies, smartphone manufacturers,
and telecom providers to maintain their market monopoly. Among these companies are Apple and Samsung,
which agreed to make Google the default search engine in exchange for a share of advertising revenues.
The plaintiffs argued that these agreements limited access to competing search engines like DuckDuckGo and Microsoft’s Bing,
preventing them from obtaining the data needed to improve their services.

What Happens Now?

The ruling focuses on whether Google violated antitrust laws,
with plans for a separate trial to address these illegal practices.
According to reports, the Department of Justice is now considering possibly breaking up Google,
which could involve divesting its Android operating system and Chrome browser and potentially selling its AdWords program.

What Is Google’s Response to the Ruling?

Google plans to appeal the ruling, asserting that its dominance in the search market is due to the quality of its products and its investments in innovation.
While it acknowledges paying to have its search engine pre-installed on devices,
it argues that these deals are legitimate and likens them to cereal companies paying for prime shelf space in grocery stores.
Google representatives also claim users can easily access competing search engines with a single click.

What Are Antitrust Laws?

Antitrust laws are designed to protect competition in the market.
While U.S. law does not prohibit companies from becoming large and powerful,
it does forbid them from exploiting their dominant position to unlawfully prevent competitors from entering the market.
Such practices can lead to severe penalties, including the forced breakup of companies.

What Other Antitrust Cases Is Google Facing?

Google is facing several antitrust lawsuits, including one led by Texas and 16 other states,
accusing Google of monopolizing online advertising technology.
The Department of Justice also filed a separate lawsuit in January 2023
concerning Google’s advertising technology business, with the case expected to go to trial in September.

Are Google’s Practices Under Scrutiny Elsewhere?

Google is under scrutiny in Europe, where the European Commission has imposed fines totaling over €8 billion since 2010.
The company faces accusations of favoring its advertising technology over that of competitors.
Under the new European Digital Markets Act, Google and other significant companies
must adhere to strict rules to prevent them from exploiting their dominance at the expense of competitors.

What Other Antitrust Cases Is the Biden Administration Pursuing?

The Biden administration continues the antitrust campaign that began under former President Donald Trump.
These efforts include lawsuits against Amazon and Apple and the ongoing lawsuit against Facebook,
which seeks to dismantle the company due to its monopolistic practices in the social media space.

The Risks of the Antitrust Lawsuit Lost by Google