Chapter 1: What is the main topic discussed in this episode?
Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning. We've made it to Wednesday, the 12th of November. I'm Julie Morgan. GM is reportedly cutting China out. AMD charges into AI. And Google is facing legal challenges over Gemini.
General Motors has directed thousands of its suppliers to remove components sourced from China from their supply chain. Reuters reported citing sources familiar with the matter that GM is targeting a complete relocation away from China by 2027. The initiative began in late 2024 and has picked up speed as tensions continue to rise between the U.S. and China.
The report added GM prefers to source parts from North American factories but is also open to suppliers outside the U.S.
Chapter 2: What actions is GM taking to cut ties with China in its supply chain?
as long as they exclude China. This is part of a broader strategy to make its supply chain more resilient and less dependent on countries that could pose political or trade issues. like China, Russia, and Venezuela. Still, the transition won't be easy.
Many of the parts GM relies on, from lighting and electronics to tools and battery materials, are industries where China still holds a dominant position. AMD made several updates at its financial analyst day on Tuesday, including reiterating the theme that AI spending is not likely to slow down anytime soon. This was the first analyst day since 2022.
The chairman and CEO updated the size of the total addressable market for AI data center and now sees it hitting $1 trillion by 2030, up from a prior view of $500 billion. Dr. Lisa Su, who has been at the helm of AMD since 2014, added that the rate and pace of change in AI is higher than anything she has seen before.
She said if you ask customers today, they say we need to invest more in AI infrastructure. She added that companies with the capability, particularly those with strong balance sheets, will have an incremental advantage compared to the competition. She said there's just insatiable demand. AMD is up 5 percent in pre-market action.
The company also said its gross margins would range between 55 and 58 percent, better than forecast. Google is being sued again, this time over its Gemini AI. A new lawsuit claims that back in October, the company secretly activated Gemini across Gmail, Chat, and Meet, allowing it to collect users' private messages and attachments without their consent or knowledge.
Bloomberg reports that Google once gave users the choice to turn Gemini on, but the suit says that switch flipped automatically, and now turning it off means digging deep into your privacy settings. The case, filed in federal court in San Jose, accuses Google of using the AI to access and exploit years of private communication.
I have a few other articles to tell you about from our trending news section on Seeking Alpha. President Trump will host Wall Street CEOs on Wednesday at the White House. Foxconn sees AI-driven growth in 2026 and teases an open AI announcement. And the president would like to drill off the coast of California, but the governor calls the plan dead on arrival.
A few items on our Catalyst Watch for the day. Companies presenting at the Baird Global Industrial Conference include Trane Technologies, Waste Management, and Honeywell. Chevron is holding its Investor Day. And Day 4 shareholders are scheduled to vote on Tama Bravo's $70 a share buyout. On Wall Street at this early hour, Dow, S&P and Nasdaq futures are in the green.
Crude oil is down 1% at $60 a barrel. Bitcoin is up 1.6% at $104,000. Gold is flat at $41.25. The FTSE 100 is flat and the DAX is up 1.2%. Alcon is on our list of the biggest movers of the day pre-market. ALC is up 5% after the company reported mixed Q3 results that exceeded earnings expectations. A lot of Fed talk on today's economic calendar.
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