Nvidia faces skepticism as Hyundai invests $6.3 billion

Key Takeaways

• Hyundai Motor Group is investing approximately $6.3 billion ($6.26 billion) in South Korea to establish an AI data center, a robot manufacturing complex, and hydrogen production facilities.
• The Hyundai investment includes 5.8 trillion won for an AI data center equipped with 50,000 GPUs.
• Nvidia's shares dipped despite an optimistic first-quarter outlook, reflecting investor concerns about the sustainability of the AI market.
• Nvidia's sovereign AI business generated $30 billion in sales for fiscal 2026, more than tripling year-over-year.
• Block's shares surged after CEO Jack Dorsey announced plans to use AI for workforce reduction to improve efficiency and profit margins.
• Jeff Bezos's AI lab is seeking tens of billions of dollars for Project Prometheus, a new holding company to invest in AI-impacted businesses.
• The "AI scare trade" contributed to market volatility in February, driven by fears of AI disrupting industries and displacing workers.
• Zscaler received a Buy rating from UBS due to its accelerating AI security growth and attractive valuation.
• Cardinal Health was added to a watchlist for its resilience against economic downturns and potential AI disruption in healthcare distribution.
• Lovable is hosting an AI event, "Love at Scale," for startups, offering GPUs and compute credits as prizes.

Hyundai invests $6.3B in AI, robotics, and hydrogen city

Hyundai Motor Group is investing 9 trillion won, about $6.3 billion, to build a major AI data center, a robot manufacturing complex, and a hydrogen production base in South Korea. This project aims to transform the Saemangeum coastal area into a testbed for an integrated "AI Hydrogen City." The investment includes 5.8 trillion won for the AI data center, 400 billion won for the robot factory, and 1 trillion won for hydrogen facilities, with additional funds for solar power generation. This move signals Hyundai's shift from a traditional automaker to an AI-driven robotics company and is expected to boost South Korea's competitiveness in advanced manufacturing.

Hyundai Motor Group invests $6.3 billion in South Korea AI hub

Hyundai Motor Group is investing approximately 9 trillion won, or $6.26 billion, to establish an AI data center, a robot manufacturing factory, and other developments in South Korea's western coastal region. The plan includes 5.8 trillion won for an AI data center with 50,000 graphics processing units and 400 billion won for a robot production factory. Additionally, 1 trillion won will fund hydrogen production facilities, and 1.3 trillion won will support solar power generation. This initiative aims to transform the Saemangeum area into a hub for advanced technology and industry.

Hyundai Motor Group to invest $6.3 billion in AI and robotics

Hyundai Motor Group announced a $6.3 billion investment in South Korea to build an AI data center and a robot factory. The largest portion, 5.8 trillion won, will fund an AI data center with 50,000 GPUs to support autonomous vehicles and robot learning. Another 1 trillion won is allocated for a green hydrogen production facility, and 1.3 trillion won for a solar plant. The project also includes a 400 billion won robot factory for mass production of wearable and industrial robots. These investments align with Hyundai's strategy to expand into AI, robotics, and self-driving technology.

Hyundai Motor Group invests $6.3 billion in South Korea AI hub

Hyundai Motor Group has partnered with South Korea to invest about 9 trillion won, approximately $6.26 billion, in new developments. These include an AI data center and a robot manufacturing factory located in the country's western coastal region. The investment also covers hydrogen production facilities and solar power generation. This significant investment aims to bolster the region's technological and industrial capabilities.

Nvidia's forecast fails to impress investors amid AI market concerns

Nvidia, a leading AI processor maker, faced investor skepticism despite providing a first-quarter outlook that exceeded Wall Street estimates. The company's shares saw a slight dip, indicating that concerns about an overheated AI economy persist. CEO Jensen Huang expressed confidence that customers are profiting from their AI investments, justifying continued high spending. While Nvidia secured component supply, challenges remain in producing advanced chips like the Blackwell lineup. The company also faces uncertainty in the Chinese market, excluding data center revenue from forecasts there.

Nvidia investors react coolly to upbeat forecast

Nvidia investors showed a lukewarm response to the company's optimistic forecasts, highlighting ongoing skepticism about the sustainability of AI chip sales growth. Despite beating analyst expectations for fiscal second-quarter revenue, Nvidia's shares fell in extended trading. Analysts noted that while the guidance was strong, it didn't significantly exceed previous quarters, and concerns about increasing competition and reliance on a few key customers remain. However, some analysts believe Nvidia's strong ecosystem and innovation will support long-term growth.

Block shares jump as Jack Dorsey uses AI to cut jobs

Block's shares surged significantly after CEO Jack Dorsey announced plans to leverage AI to reduce the company's workforce. Dorsey warned that many companies are behind in adopting AI's potential for improving efficiency and return on investment. While the long-term impact of AI-driven productivity gains is uncertain, the move is expected to boost Block's profit margins in the near term. This decision comes after aggressive hiring during the pandemic, with the company's workforce growing substantially.

Nvidia's sovereign AI business overlooked by investors, says expert

Nancy Tengler, CIO of Laffer Tengler Investments, believes investors are overlooking Nvidia's rapidly growing sovereign AI business. This segment, which focuses on nations developing and governing their own AI capabilities, generated $30 billion in sales for Nvidia in fiscal 2026. Countries like Canada, France, and the UK are driving this growth, with Nvidia also announcing a $1 billion project in the UAE. Although a small part of total revenue, sovereign AI revenue more than tripled year-over-year, showing significant potential.

Lovable hosts AI event for startups to scale products

Lovable is organizing an in-person AI build event called "Love at Scale" in Palo Alto, aimed at founders looking to scale their products. The event will feature judges from Silicon Valley, including venture capitalists, and offer prizes such as GPUs and compute credits. This initiative signals Lovable's commitment to engaging with the AI startup ecosystem, potentially strengthening its brand and creating opportunities for future partnerships and product adoption.

Private credit and AI fears spooked stocks in February

Stocks experienced a volatile February, influenced by concerns over private credit and the "AI scare trade." Investors worried about the stability of the financial system due to private credit's rapid growth and lack of transparency. Simultaneously, fears that AI could disrupt industries and displace workers led to sell-offs in tech stocks. Geopolitical tensions, inflation, and the upcoming US election also contributed to market jitters. Despite these headwinds, some analysts remain optimistic about long-term market prospects driven by AI innovation.

Cardinal Health added to watchlist for recession and AI resistance

Cardinal Health, a key player in the US healthcare supply chain, has been added to a watchlist for its resilience against economic downturns and AI disruption. The company distributes medicines and medical products, benefiting from an aging US population. While a recent announcement about freight efficiency tools caused a temporary stock dip, analysts believe AI could improve distribution operations. Cardinal Health shows consistent earnings growth and trades at an attractive valuation compared to peers.

Zscaler earns Buy rating for AI security growth and valuation

UBS analyst Roger Boyd has issued a Buy rating for Zscaler, citing its accelerating AI security growth and attractive valuation. Boyd highlighted improving Annual Recurring Revenue (ARR) trends, a strong pipeline, and increased sales productivity. Despite a lower price target reflecting more conservative long-term assumptions, Boyd views Zscaler's current valuation as appealing for a company delivering significant organic growth. Other analysts also maintain positive ratings on the stock.

Jeff Bezos' AI lab seeks billions for investment vehicle

Jeff Bezos' AI lab is reportedly in funding talks for a new holding company, Project Prometheus, designed to invest in businesses impacted by AI technology. This vehicle aims to raise tens of billions of dollars from sovereign wealth funds and other investors. Led by former Amazon executives, Project Prometheus will focus on manufacturing transformation and investing in AI companies. The initiative underscores the growing influence and investment in the AI sector.

AI 'scare trade' unnerves markets with disruption fears

The "AI scare trade" is causing market jitters as investors shift from viewing AI as a productivity booster to a potential threat to industries and jobs. This fear has led to sell-offs in AI-related stocks, even as the broader market remains stable. Concerns about AI replacing white-collar workers and shrinking the workforce are driving this trend. Many S&P 500 companies now list AI as a material risk, with sectors like business software and professional services being particularly vulnerable.

Sources

• Hyundai Motor steps up autonomous driving push as Chairman Chung backs software unit 42dot
• Hyundai Motor Group to invest $6.3 bln in AI data centre, robot factory in South Korea
• Hyundai Motor to Invest $6.3 Billion in AI, Robotics Center
• Hyundai Motor Group to invest $6.3 billion in AI data centre, robot factory in South Korea
• Investors tepid about Nvidia’s upbeat forecast
• Nvidia Investors Give Lukewarm Reaction to Upbeat Forecast
• Block shares soar as Dorsey leans on AI to trim workforce
• Nvidia sovereign AI business going overlooked by stock investors: Tengler
• Lovable Hosts AI Build Event Aimed at Scaling Products and Engaging Startup Ecosystem
• Private-credit ‘cockroaches’ and the AI ‘scare trade’ hammered stocks in February. Here’s what else has investors shaken up.
• We're adding a stock to our Bullpen watchlist that is resistant to recessions and AI disruption
• Zscaler: Buy Rating on Accelerating AI Security Growth, Strengthening ARR, and Attractive Valuation
• Jeff Bezos’ AI Lab in funding talks for multibillion-dollar investment vehicle, FT reports
• Why the AI ‘Scare Trade’ Keeps Spooking Markets