Global Market developments include a price war in China’s AI chat bot space and Nvidia’s strong quarterly results.
Nvidia, a key AI beneficiary, delivered better-than-expected quarterly numbers, while Target reported lower earnings and weak guidance. Pfizer launched a cost-cutting plan, Tencent and iFlytek reduced LLM prices, and Hard Rock International refuted takeover plans.
Nvidia’s Q1 revenue surpassed expectations
Nvidia’s Q1 revenue surpassed expectations, reaching $26.04 billion, with data center segment sales increasing by 427% to $22.6 billion. The company’s Q2 forecast predicts $28 billion revenue and an adjusted gross margin of 75.5%, surpassing analysts’ projections.
Target’s quarterly earnings fell
US retailer Target’s quarterly earnings fell short of Wall Street expectations, leading to a selloff. The company’s sales forecast for the upcoming quarter also failed to impress investors, with a flat to 2% growth rate.
Pfizer cost-cutting
US drugmaker Pfizer has announced a $1.5 billion cost-cutting plan to reduce expenses by 2027, with one-time charges of $1.7 billion, primarily related to severance and implementation costs, expected in 2025 and 2026.
Price War
Chinese internet company Tencent and AI firm iFlytek have initiated a price war among major tech firms in China. Tencent’s cloud division has released its “lite” version of the LLM, Hunyuan, for free, while iFlytek’s “Spark” LLM is available for free or five times cheaper.
Star Entertainment’s takeover attempt
Hard Rock International denies involvement in Star Entertainment’s takeover attempt, causing a 10% drop in shares. Star Entertainment announced interest from a consortium, leading to a 20% increase in shares.
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