Shares related to Nvidia ( NVDA ) and artificial intelligence ( AI ) are driving upbeat Thursday markets as the chipmaker looks set to cement its crown as the world’s most valuable company by earnings in premarket trading; Dell Technologies ( DELL ) and Super Micro Computer ( SMCI ) are rising after Elon Musk said the two server makers will collaborate to build an AI factory to power his Grok chatbot; Target ( TGT ) is planning to roll out an AI-generating chatbot in its almost 2,000 stores in August; Accenture (ACN) shares are rising after third-quarter bookings rise; and OpenAI co-founder Ilya Sutskever is launching an AI startup to focus on security. U.S. stock futures are rising as Nvidia wins, with the rise of the artificial intelligence darling driving the Nasdaq Composite and the S&P 500 to close at new record highs on Tuesday; markets closed on Wednesday, June 19. Here’s what investors need to know today.
1. Nvidia expands earnings as it becomes world’s most valuable company
Shares of Nvidia ( NVDA ) are rising more than 3% in premarket trading after the AI chipmaker on Tuesday overtook Microsoft ( MSFT ) to become the world’s most valuable company. The surge in its stock catapulted its market capitalization to $3.335 trillion on Tuesday, surpassing Microsoft, which became the world’s most valuable company in January after taking the title from Apple ( AAPL ). The last time a major computer infrastructure company was the most valuable US firm was in March 2000, when Cisco Systems ( CSCO ) took that position during the dot-com boom.
2. Dell, Super Micro Computer Rally on Plan to Build Musk’s Grok AI Factory
Shares of Dell Technologies ( DELL ) and Super Micro Computer ( SMCI ) are rising more than 3% and 4%, respectively, in premarket trading after Elon Musk said the two server makers would collaborate to build a factory AI to power Grok, the chatbot. owned by Chief Executive Officer (CEO) Tesla (TSLA), xAI. Dell CEO Michael Dell first announced on Wednesday X that he is building an AI factory with Nvidia for Grok, then Musk clarified in an X post, “To be precise, Dell is assembling half the racks that are being fed into the supercomputer that is the xAI building,” adding that Super Micro was doing the other half.
3. GenAI Chatbot Target Plans in 2000 US Stores
Target ( TGT ) is planning to roll out an AI-generating chatbot in almost 2,000 of its stores in August, the retailer said, noting that it is the first major U.S. retailer to do so. The chatbot, called Store Companion, “will answer workflow questions, train new team members, support store operations management and more,” Target said. The chatbot will make it easier for its employees and “allow them to work faster and more efficiently,” the retailer added. Target shares were little changed in premarket trading and have barely moved this year, as the retailer struggles to capture spending from value-seeking consumers amid inflation — in contrast to rival Walmart ( WMT ), whose stock is up nearly 30% in 2024.
4. Accenture rallies as Q3 bookings rise
Shares of Accenture ( ACN ) are rising 7% in premarket trading after the consulting giant posted a 22% year-over-year increase in its fiscal third-quarter bookings to $21.1 billion. Third-quarter revenue fell 1% to $16.5 billion, but CEO Julie Sweet said, “We also hit two milestones this quarter — with $2 billion in year-over-year generative AI sales and $500 million in revenue year-over-year – which demonstrate our early leadership in this critical technology.” The company lowered its fiscal 2024 earnings guidance, expecting EPS to be in the range of $11.29 to $11.44, from $11.41 to $11.64 previously, and adjusted EPS to between 11 .85 and $12.00, versus its previous range of $11.27 to $1.
5. OpenAI Co-Founder Sutskever Creates Rival AI Firm to Focus on ‘Security’
OpenAI co-founder Ilya Sutskever said in a post on X that he has created an AI startup, Safe Superintelligence Inc., to focus on security at a time when concerns are emerging about AI’s rapidly evolving capabilities. . The launch comes a month after Sutskever, once OpenAI’s chief scientist, reportedly left after the Microsoft ( MSFT )-backed startup disbanded the Superalignment team he co-led. “We’ve started the world’s first direct hit SSI lab, with one goal and one product: a safe superintelligence,” Sutskever said in the post, co-written with former OpenAI employee Daniel Gross and entrepreneur Daniel Levy.