Nvidia (NVDA) and artificial intelligence (AI)-related stocks are driving Thursday’s buoyant markets mood as the chipmaker looks set to cement its crown as world’s most valuable company with gains in premarket trading; Dell Technologies (DELL) and Super Micro Computer (SMCI) are rising after Elon Musk said the two server makers would partner to build an AI factory to power his Grok chatbot; Target (TGT) is planning to roll out a generative AI chatbot across its almost 2,000 stores in August; Accenture (ACN) shares are rising after third-quarter bookings soar; and OpenAI co-founder Ilya Sutskever is launching an AI startup to focus on safety. U.S. stock futures are rising as Nvidia gains, with the AI darling’s surge leading the Nasdaq Composite and S&P 500 to close at fresh record highs Tuesday; markets were closed Wednesday for Juneteenth. Here’s what investors need to know today.
1. Nvidia Extends Gains After Becoming World’s Most Valuable Company
Nvidia (NVDA) shares are rising more than 3% in premarket trading after the AI chipmaker Tuesday overtook Microsoft (MSFT) to become the world’s world’s most valuable company. Its share surge catapulted its market capitalization to $3.335 trillion on Tuesday, leapfrogging Microsoft, which became the world’s most valuable company in January after taking the title from Apple (AAPL). The last time a large computing infrastructure company was the most valuable U.S. 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
Dell Technologies (DELL) and Super Micro Computer (SMCI) shares are jumping more than 3% and 4%, respectively, in premarket trading after Elon Musk said that the two server makers would partner to build an AI factory to power Grok, the chatbot owned by the Tesla (TSLA) Chief Executive Officer’s (CEO) AI startup, xAI. Dell CEO Michael Dell first announced on X Wednesday that it is building an AI factory with Nvidia for Grok, then Musk clarified in an X post, “To be precise, Dell is assembling half of the racks that are going into the supercomputer that xAI is building,” adding that Super Micro was doing the other half.
3. Target Plans GenAI Chatbot Across 2,000 US Stores
Target (TGT) is planning to roll out a generative AI chatbot across its almost 2,000 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 on-the-job process questions, coach new team members, support store operations management and more,” Target said. The chatbot will make its employees’ jobs easier and “allow them to work more quickly and efficiently,” the retailer added. Target shares are little changed in premarket trading and have barely budged this year as the retailer struggles to capture spending by value-seeking consumers amid inflation—in contrast to rival Walmart (WMT), whose stock is almost up by 30% in 2024.
4. Accenture Rallies as Q3 Bookings Soar
Accenture (ACN) shares are rising 7% in premarket trading after the consulting giant posted a 22% year-over-year jump 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 achieved two significant milestones this quarter — with $2 billion in Generative AI sales year-to-date and $500 million in revenue year-to-date — which demonstrate our early lead in this critical technology.” The company lowered its fiscal 2024 earnings guidance, now expecting EPS to be in the range of $11.29 to $11.44, down from $11.41 to $11.64 previously, and adjusted EPS between $11.85 and $12.00, versus its prior range of $11.97 to $12.20.
5. OpenAI Co-Founder Sutskever Sets Up Rival AI Firm to Focus on ‘Safety’
OpenAI co-founder Ilya Sutskever said in a post on X that he has established an AI startup, Safe Superintelligence Inc., to focus on safety, at a time when concerns are emerging around AI’s fast-evolving capabilities. The launch comes a month after Sutskever, formerly OpenAI’s chief scientist, reportedly quit as the Microsoft-backed (MSFT) startup dissolved the “Superalignment” team that he co-led. “We’ve started the world’s first straight-shot 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.
