When Microsoft (MSFT) announced that it would cut back on capital expenditures on servers, and stocks in the artificial intelligence sector. Fortunately, Alphabet (GOOG) and Nvidia (NVDA) continued their investments in the space.
Alphabet and Nvidia are investing in Safe Superintelligence. This is a startup started by Ilya Sutskever, a former chief scientist at OpenAI. SSI had a recent valuation of $32 billion.
PC Hardware Stocks Slumped
The weakening investment interest in AI stocks hurt PC suppliers the most. HP Inc. (HPQ) broke below its $35 support line in February to close at $23.44 last week. Peripherals supplier Logitech International peaked at $105.65 in February. It traded below $70 last week.
U.S. tariffs against China will hurt firms that manufacture their products in the latter. Logitech, Nike (NKE), and PC firms like Dell (DELL) could face higher costs from tariffs. Still, after China said it would not impose tariffs on various chip manufacturers, Trump said over the weekend that smartphones and computers would not face the 125% tariffs.
Traders might want to speculate on Advanced Micro Devices (AMD) this week. The yearlong downtrend potentially capitulated last week. AMD stock traded as low as $76.48. It snapped back to over $90 when the U.S. said it would pause the latest set of tariffs by 90 days. The 10% baseline tariff, however, is still in place.