Big Tech Earnings Highlight AI Spending, Minneapolis Latest, More
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News when you want it with Bloomberg News Now. I'm Nathan Hager.
And I'm Karen Moscow.
Karen, the market continues to react to big tech earnings we got after the closing bell. This morning, shares of Meta Platforms are surging 7.5%. The Facebook owner topped projections for holiday quarter revenue and gave a strong forecast for the current period. That's offsetting concerns about plans for unprecedented spending on artificial intelligence this year. Here's Meta CEO Mark Zuckerberg on the earnings conference call.
Now be accomplished by a single, very talented person.
Mark Zuckerberg says Meta plans to spend as much as $135 billion this year on AI.
Meanwhile, Nathan, at Microsoft, spending surged to a record high while cloud sales growth slowed. That has shares of Microsoft down more than 6% this morning. Capital expenditures for the fiscal second quarter hit $37.5 billion. That's up 66% from a year ago. And here's CEO Satya Nadella on the company conference call.
We are in the beginning phases of AI diffusion and its broad GDP impact. Our TAM will grow substantially across every layer of the tech stack as this diffusion accelerates and spreads. In fact, even in these early innings, we have built an AI business that is larger than some of our biggest franchises that took decades to build.
CEO Satya Nadella says total sales increased 17% to more than $81 billion in the quarter.
And Karen, we're watching shares of Tesla this morning. They're up more than 2.5% in early trading. The EV maker reported earnings above analyst estimates and in Tesla's call with analysts, CEO Elon Musk said the company is discontinuing the Model S and X.
It's time to basically bring the Model S and X programs to an end with an honorable discharge because we're really moving into a future that is based on autonomy.
Elon Musk says Tesla plans to spend $20 billion this year to streamline its electric vehicle lineup and shift resources toward robotics and AI.
Nathan, more news this morning on the AI front. The information is reporting NVIDIA, Microsoft, and Amazon are in discussions to invest as much as $60 billion in OpenAI as part of a major new funding round. This could help alleviate investor concerns about OpenAI's cash burn.
And Karen, NVIDIA's CEO Jensen Wang says his company has not yet received any orders from Chinese customers for H200 AI chips. Jensen Wang spoke with reporters earlier today in Taipei.
I'm hoping that also the Chinese government would allow NVIDIA to sell an H200. So they have to decide.
What are the latest big tech earnings and their impact on the market?
And I'm looking forward to a favorable decision. I think that H200 is very good for America technology leadership. It's also very good for the Chinese market.
That was NVIDIA CEO Jensen Wang. Chinese officials recently told the country's largest tech firms, including Alibaba, they can prepare orders for H200 chips. Suggests Beijing is close to formally approving imports of components essential to powering artificial intelligence.
Nathan, big tech earnings continued this afternoon, and that's when Apple reports its latest quarterly results. We get a preview with Bloomberg's Tom Busby.
Apple is poised to deliver its biggest sales quarter ever, thanks in large part to expected blowout sales of its iPhone 17 lineup, especially for the higher-end models. But investors are still concerned about rising costs for components, especially memory chips. and what sales look like in China, which declined just three months ago. Bloomberg Consensus calls for revenue to jump 11% higher to $138.4 billion, the biggest quarterly growth in four years on earnings per share of $2.68. Tom Busby, Bloomberg Radio.
Okay, Tom, thank you. Now let's turn from the markets to get you to the latest from Minneapolis, the new man in charge of immigration enforcement in the city, Tom Holman.
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