Alphabet and Amazon shift focus to AI hyperscalers as chipmaker stocks weaken

Investors are shifting their focus from chipmakers to AI hyperscalers, according to Morgan Stanley. This change is driven by recent weakness in US semiconductor stocks. Companies like Alphabet and Amazon are spending heavily on data centers, positioning them to benefit from a rotation away from semiconductor stocks as the AI cycle evolves.

Chinese firms are also turning to local AI suppliers, with 46% of their AI accelerator budgets expected to go to domestic products over the next 12 months. This shift is driven by growing demand for AI technology in China, potentially impacting Nvidia's business.

TeraWulf's stock surged 15% after announcing a $19 billion AI lease with Anthropic, highlighting the growing demand for AI infrastructure. Meanwhile, Webull Malaysia has launched OpenAPI, enabling investors to trade US stocks and ETFs using AI tools.

Microsoft's focus is shifting away from its Xbox business, which an analyst says has become 'almost irrelevant.' The company is instead prioritizing AI and data centers. Google is expanding its AI training to include user-uploaded media from search tools, underscoring the demand for high-quality datasets.

Other developments include Clockwork.io's introduction of the YOCO Guarantee to reduce AI training failures and GPU waste, and Millennium-backed trader Val Zlatev's 61% gain this year by betting on companies providing underlying technology for AI systems.

Key Takeaways

['Investors are moving from chipmakers to AI hyperscalers like Alphabet and Amazon due to weakness in US semiconductor stocks.', 'Chinese companies are shifting 46% of their AI accelerator budgets to domestic products over the next 12 months.', "TeraWulf's stock jumped 15% after a $19 billion AI lease with Anthropic.", 'Webull Malaysia launched OpenAPI for AI trading, allowing investors to trade US stocks and ETFs using AI tools.', "Microsoft's Xbox business has become 'almost irrelevant' as the company focuses on AI and data centers.", 'Google is expanding AI training with user-uploaded media from search tools.', 'Clockwork.io introduced the YOCO Guarantee to reduce AI training failures and GPU waste.', 'Millennium-backed trader gained 61% this year by betting on AI system providers.', 'BlackRock says the China AI play is stock-specific, not a regional trade.', "Samsung's AI windfall is creating a divide within the company, with chip division workers receiving massive bonuses."]

Investors Shift from Chipmakers to AI Hyperscalers

Morgan Stanley says investors are moving from chipmakers to AI hyperscalers. This change is due to the recent weakness in US semiconductor stocks. Hyperscalers, like Alphabet and Amazon, are spending big on data centers. These companies could benefit from a rotation away from semiconductor stocks as the AI cycle shifts.

Investors Shift from Chipmakers to AI Hyperscalers

Morgan Stanley says investors are moving from chipmakers to AI hyperscalers. This change is due to the recent weakness in US semiconductor stocks. Hyperscalers, like Alphabet and Amazon, are spending big on data centers. These companies could benefit from a rotation away from semiconductor stocks as the AI cycle shifts.

Investors Shift from Chipmakers to AI Hyperscalers

Morgan Stanley says investors are moving from chipmakers to AI hyperscalers. This change is due to the recent weakness in US semiconductor stocks. Hyperscalers, like Alphabet and Amazon, are spending big on data centers. These companies could benefit from a rotation away from semiconductor stocks as the AI cycle shifts.

Chinese Firms Ditch Nvidia for Local AI Suppliers

Chinese companies are turning to local AI suppliers from Nvidia. According to a survey, 46% of their AI accelerator budgets will go to domestic products over the next 12 months. This shift is driven by the growing demand for AI technology in China.

TeraWulf Soars with $19 Billion AI Lease

TeraWulf's stock jumped 15% after announcing a $19 billion AI lease with Anthropic. This deal highlights the growing demand for AI infrastructure and TeraWulf's role in providing it.

Webull Malaysia Launches OpenAPI for AI Trading

Webull Malaysia has launched OpenAPI, allowing investors to trade US stocks and ETFs using AI tools. This move aims to enhance the trading experience for Malaysian investors and establish Webull as a leading online brokerage.

Clockwork.io Introduces YOCO Guarantee

Clockwork.io has launched the YOCO Guarantee to reduce AI training failures and GPU waste. This guarantee ensures that at least 90% of training failures on supported workloads will be resolved without lost progress.

BlackRock: China AI Play is Stock-Specific

BlackRock says the China AI play is stock-specific, not a regional trade. The firm believes that only select Chinese companies will benefit from AI, while US stocks will dominate the AI landscape.

Samsung's AI Windfall Splits Workforce

Samsung's AI windfall is creating a divide within the company. Workers in the chip division will receive massive bonuses, while those in other divisions will receive much less.

Microsoft's Xbox Business Becomes 'Almost Irrelevant'

Analyst says Microsoft's Xbox business has become 'almost irrelevant' as the company shifts focus to AI and data centers. This shift reflects the changing landscape of the tech industry.

Google Expands AI Training with User Media

Google is expanding its AI training to include user-uploaded media from search tools. This move highlights the demand for high-quality datasets to train AI models.

Millennium-Backed Trader Gains 61% with AI Bets

Hedge fund manager Val Zlatev has seen his fund surge 61% this year by betting on companies providing underlying technology for AI systems.

Sources

NOTE:

This news brief was generated using AI technology (including, but not limited to, Google Gemini API, Llama, Grok, and Mistral) from aggregated news articles, with minimal to no human editing/review. It is provided for informational purposes only and may contain inaccuracies or biases. This is not financial, investment, or professional advice. If you have any questions or concerns, please verify all information with the linked original articles in the Sources section below.

AI Hyperscalers Alphabet Amazon Data Centers Semiconductor Stocks US Stocks AI Cycle Chipmakers AI Suppliers Nvidia Local AI Suppliers AI Technology China TeraWulf Anthropic AI Lease AI Infrastructure Webull Malaysia OpenAPI AI Trading Clockwork.io YOCO Guarantee AI Training Failures GPU Waste BlackRock China AI Play Stock-Specific Regional Trade Samsung AI Windfall Microsoft Xbox Business AI and Data Centers Google AI Training User Media High-Quality Datasets AI Models Millennium Trader AI Bets Hedge Fund Val Zlatev

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