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Antitrust police going after Nvidia (NVDA), Microsoft (MSFT) and OpenAI – NYT. (00:24) Amazon (AMZN) unit Zoox expands robotaxi testing to Austin, Miami. (02:02) Tempus (TEM), AI-based diagnostics maker, sets terms for $400M IPO. (02:51)
This is an abridged transcript of the podcast.
The exclusive $3T market cap club has a new member and a new antitrust investigation.
Nvidia (NASDAQ:NVDA) topped $3T in market cap on Wednesday, joining the illustrious club amid euphoria surrounding artificial intelligence.
Shares rose more than 5% to finish at $1,224.40. Nvidia’s market cap has grown more than 154% year-to-date and more than 216% over the past 12 months.
The $3T market cap level is rarefied air for publicly traded companies: only Apple (NASDAQ:AAPL) and Microsoft (NASDAQ:MSFT) have reached that level in the U.S. Nvidia’s valuation surpassed that of Apple’s in late trading on Wednesday to become the second most valuable technology company.
The gains come after Nvidia Chief Executive Jensen Huang disclosed this week that the company will unveil new artificial-intelligence accelerators with next year’s rollout of the Blackwell Ultra chip and a next-generation platform called Rubin in 2026.
Nvidia is also set to split its stock 10-1 this week. This was announced last month with quarterly earnings.
Several Wall Street firms have issued positive notes on Nvidia this week ahead of the split, including Bank of America and Goldman Sachs.
I mentioned at the outset an antitrust investigation.
According to the New York Times, the probe into Nvidia (NASDAQ:NVDA), Microsoft (NASDAQ:MSFT) and Microsoft-backed OpenAI will explore the dominant roles the companies play in the artificial intelligence industry.
Both the Department of Justice and Federal Trade Commission will be involved in the investigation.
While we’re on the topic of Nvidia, be sure to check out the list of the ETF’s with the biggest weightings in Nvidia.
Amazon’s (NASDAQ:AMZN) autonomous vehicle unit Zoox is expanding road testing to Austin, Texas and Miami, Florida, its first trial locations outside the western U.S.
Zoox will first conduct a mapping mission in the two cities. It’ll then deploy its retrofitted Toyota Highlander test fleet with safety drivers in small areas near the business and entertainment districts in the cities.
Austin and Miami will be the fourth and fifth public testing locations for Zoox, which first started testing in its home city of San Francisco in 2018 and later expanded to Las Vegas and Seattle.
The company does not plan on deploying its robotaxis in Austin or Miami just yet. It still targets offering paid rides in Las Vegas and San Francisco first.
Tempus AI (TEM), a developer of AI-based oncology diagnostic products, has set terms for a proposed $400M initial public offering.
In its latest SEC filing, Tempus said it plans to offer 11.1M shares priced between $35 and $37 per share, which would raise around $400M if priced at the midpoint. Underwriters would be granted a 30-day option to buy up to 1.7M additional shares to cover any over-allotments.
Morgan Stanley, J.P. Morgan and Allen & Company are serving as lead bookrunners on the deal. Tempus hopes to list its shares on Nasdaq under the symbol TEM.
After the offering, Tempus founder, CEO and Chairman Eric Lefkofsky will hold approximately 65% of the stock’s voting power, according to the filing.
Tempus has been operating in the red. For the year 2023, the company reported a net loss of $214M on revenue of $532M.
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Catalyst watch:
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Notable investor events include Lululemon’s (LULU) annual meeting, Alphabet’s (GOOG) annual meeting, and Lyft’s (LYFT) Investor Day.
Traders and investors watched Wall Street’s major market averages conclude higher on Wednesday, with both the S&P 500 and Nasdaq Composite topping new all-time trading highs.
The Nasdaq (COMP:IND) ended higher by 1.9%. The S&P 500 (SP500) rallied as well, ending in the green by 1.1%. Lastly, the Dow (DJI) concluded to the topside as it advanced 0.2%.
Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are mixed. Crude oil is up 0.4% at $74 per barrel. Bitcoin is up 0.1% at more than $70,000.
In the world markets, the FTSE 100 is up 0.3% and the DAX is up 0.6%.
The biggest movers for the day premarket: Despite beating estimates in Q1 and guiding the FY2024 outlook above consensus, Sprinklr (NYSE:CXM) is down 18% as its near-term Q2 outlook fell short of analysts expectations.
On today’s economic calendar:
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