Chipmaker Nvidia (NVDA) and artificial intelligence (AI) stocks are driving the market vigor on Thursday. The company is rising in premarket trading and looks set to solidify its status as the world’s most valuable company. Dell Technologies (DELL) and Super Micro Computer (SMCI) rose after Elon Musk said the two server makers are partnering to build an AI factory to power the Grok chatbot. Target (TGT) plans to roll out a generative AI chatbot in about 2,000 stores in August. Accenture (ACN) shares rose after a surge in third-quarter bookings. OpenAI co-founder Ilya Sutskever is launching a safety-focused AI startup. U.S. stock futures are rising on Nvidia’s rally, and the AI ​​darling’s surge helped the Nasdaq Composite and S&P 500 close at record highs on Tuesday. Markets are closed Wednesday for Juneteenth. Here’s what investors need to know today.
1. NVIDIA becomes world’s most valuable company and grows profits
Shares of AI chipmaker NVIDIA (NVDA) are up more than 3% in premarket trading after the company overtook Microsoft (MSFT) on Tuesday to become the world’s most valuable company. The surge in shares boosted the company’s market cap to $3.335 trillion on Tuesday, overtaking Microsoft, which in January took the title from Apple (AAPL) as the world’s most valuable company. This is the first time a major computing infrastructure company has been the most valuable company in the U.S. since March 2000, when Cisco Systems (CSCO) took that title at the height of the dot-com boom.
2. Dell, Supermicro, and Musk’s Grok AI factory plans boost growth
Shares of Dell Technologies (DELL) and Supermicro Computer (SMCI) soared more than 3% and 4%, respectively, in premarket trading after Elon Musk announced the two server makers would partner to build an AI factory to power Grok, a chatbot owned by Tesla (TSLA) CEO’s AI startup xAI. Dell CEO Michael Dell first announced on X on Wednesday that the company was working with Nvidia to build an AI factory for Grok. Musk later clarified in an X post that “technically, Dell is building half the racks that will go into the supercomputer that xAI is building,” adding that Super Micro is handling the other half.
3. Target plans to introduce GenAI chatbots to 2,000 US stores
Retailer Target (TGT) announced in August that it plans to roll out generative AI chatbots to about 2,000 stores, making it the first major U.S. retailer to do so. Called “Store Companion,” the chatbot will “answer questions about business processes, orient new team members and help manage store operations,” Target said. The chatbot will make employees’ jobs easier, “allowing them to work faster and more efficiently,” the company added. Target shares were little changed in premarket trading and have barely moved this year as the company struggles to capture value-seeking consumer spending amid inflation. That contrasts with rival Walmart (WMT), which is forecast to rise nearly 30% through 2024.
4. Accenture shares rise as third-quarter orders surge
Shares of consulting giant Accenture (ACN) rose 7% in premarket trading after the company reported third-quarter bookings of $21.1 billion, up 22% from the same period last year. While third-quarter revenue fell 1% to $16.5 billion, CEO Julie Sweet said, “We achieved two important milestones this quarter in Generative AI year-to-date sales and $500 million in year-to-date revenue, demonstrating our early lead in this important technology.” The company lowered its fiscal 2024 earnings outlook, lowering its EPS forecast to a range of $11.29-$11.44 from $11.41-$11.64 and its adjusted EPS forecast to a range of $11.85-$12.00 from $11.97-$12.20.
5. OpenAI co-founder Sutskever starts rival AI company with a focus on ‘safety’
OpenAI co-founder Ilya Sutskever said in a post on X that he has founded Safe Superintelligence Inc., a safety-focused AI startup, amid concerns emerging around AI’s ability to rapidly evolve. The announcement comes a month after it was reported that Sutskever, former chief scientist at OpenAI, had resigned after the Microsoft (MSFT)-backed startup disbanded the “superalignment” team he co-led. “We launched the world’s first Straight Shot SSI Lab with one goal and one outcome: safe superintelligence,” Sutskever said in a post co-written with former OpenAI employee Daniel Gross and entrepreneur Daniel Levy.
