AI advancements by the US and China inadvertently causing setbacks in the tech industry
In the world of technology, there have been several significant developments over the past week. Here's a rundown of some of the key stories that have caught our attention.
Marvell Technology Overperforms, Shares Rise
Marvell Technology surpassed its third-quarter expectations, leading to a rise in its shares in after-hours trading. The company's sales are increasingly tied to custom chip work for hyperscale operators such as Amazon.com and Microsoft. However, a recent setback saw Marvell's shares tumble 15% before the opening bell on Friday due to a data-center outlook coming in below lofty expectations.
Dell's Mixed Fortunes
Dell Technologies had a mixed performance in the last quarter. The company guided to adjusted earnings of $2.45 a share for the current quarter, under the $2.55 consensus based on LSEG data. Despite this, Dell lifted its outlook for the year, now forecasting sales of $105 billion to $109 billion, up from a prior range of $101 billion to $105 billion. However, Dell's adjusted gross margin rate for the second quarter slipped to 18.7%, below the expected 19.6%, and its shares fell nearly 6% premarket on Friday.
Ant Group's Profit Decline
Ant Group, the Chinese fintech giant, reported a sharp downturn in profit for the first quarter of the year. Ant's net income fell 60.5% to 4.74 billion yuan ($662.7 million) for the three months ended March 31. The decline was mainly due to investments in new growth initiatives and technologies, and the decrease in fair value of certain investments.
Nvidia's Setback
Nvidia faced a 3% drop in its stock price due to China accusing it of breaching anti-monopoly law. The details of the accusation and its potential impact on Nvidia's operations in China are yet to be fully clarified.
Other Notable Mentions
- Solana creators received $19.3M from Pump.Fun streams.
- Next Technology filed for a $500M common stock offering to buy more BTC.
- Santander's Openbank is rolling out Bitcoin, Ether, and more for European users.
- Ripple (XRP) ETFs are set to launch this week. Ripple (XRP) could hit 200% gains before Q4 2025, but Layer Brett targets 2000% for Ripple.
- Hackers seized the FBI's botnet takedown targets and built a stronger cyberweapon from it.
- Pi Network is undergoing a final Testnet1 upgrade ahead of mainnet transition.
- Monero double-spending threat has grown after a block reorganization.
- BYD stock lost $45 billion in value due to rising doubts over China EV dominance.
- UAE M2 crypto exchange has changed its business model.
- Larry Ellison is involved with OpenAI, Paramount, Warner Bros., and TikTok.
These developments underscore the dynamic nature of the tech sector, with companies continuing to innovate while navigating regulatory and market challenges. Stay tuned for more updates as these stories unfold.
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