Nvidia's upcoming earnings report is crucial for gauging AI's demand, as the firm benefitted hugely from AI apps like ChatGPT. The company's robust performance has caused its shares to nearly triple this year, turning Nvidia into the first trillion-dollar chip company. However, expectations are high, and any deviation from predicted earnings might negatively affect its stock value. A potential downside could also impact the broader market since many S&P 500 gains are due to Nvidia and Big Tech stock surges.
Satya Nadella, Microsoft's CEO, showcased the company's advancements in generative AI at the Build developer conference, drawing attention from around the globe. Microsoft's leadership in the AI field is attributed to its landmark partnership with OpenAI, which saw a $13 billion investment. This partnership has positioned Microsoft products like GitHub, Bing, Excel, and Azure ahead of rivals like Amazon and Google. Microsoft's foray into AI, backed by its collaboration with OpenAI, is deemed to be driving the next significant technological shift.