Alibaba Group, co-founded by Jack Ma, has announced a substantial investment plan exceeding 380 billion yuan (around $53 billion) in artificial intelligence (AI) infrastructure over the next three years. This initiative aims to bolster the company’s data centers and cloud computing capabilities, positioning Alibaba as a significant player in the evolving AI sector.
Strategic Shift Towards AI
This investment signifies a strategic shift for the e-commerce giant, which is redirecting its focus towards AI and e-commerce following challenges from a government crackdown that began in 2020. CEO Eddie Wu has stated that achieving Artificial General Intelligence (AGI) is now the company’s primary goal, placing Alibaba in direct competition with leading AI firms such as OpenAI, Microsoft, and Alphabet.
As AI models advance and demand more computing power, Alibaba aims to be a vital partner for businesses looking to develop and implement AI solutions in practical applications. This move reflects a broader trend in the tech industry, where companies are increasingly investing in AI capabilities to stay competitive.
Gold Prices Surge
In the financial landscape, gold prices have surged to approximately $2,937 an ounce, marking the longest weekly gain since 2020. This increase is driven by a significant rise in demand for bullion-backed exchange-traded funds, with holdings experiencing their largest increase since 2022.
Economic reports indicate a slowdown in US business activity, declining consumer confidence, and rising inflation expectations. These factors have led traders to anticipate interest rate cuts by the Federal Reserve, which typically benefit gold, enhancing its appeal amid economic uncertainty.
Challenges for Australian Banks
In Australia, shares of the “Big Four” banks have paused following a sharp sell-off that wiped out over A$63 billion ($40 billion) from their market value. After experiencing unprecedented growth last year, fueled by strong inflows from superannuation funds and retail investors, the banks are now facing the implications of a recent interest rate cut—the first since November 2020.
This change, along with modest earnings growth and rising bad debts, has led to a significant decline in bank stocks. Despite a slight recovery in financials, which rose 0.8% as of Monday morning, the sector remains down more than 7% since mid-February, reflecting a cautious sentiment as the banking sector navigates the challenges posed by changing economic conditions.
US Stock Market Trends
In the US stock market, technology stocks are encountering challenges, with the Nasdaq and S&P 500 indices on track for their third consecutive loss. Investors are closely watching the upcoming earnings report from Nvidia, a key player in the AI chip market, amid concerns about the impact of tariffs on American consumers and businesses.
The Dow Jones Industrial Average managed a modest gain of 0.3%, recovering slightly from its worst week since October. Nvidia’s performance will be under scrutiny, especially in light of recent analyst reports suggesting that Microsoft may be scaling back its data center construction plans.
Palantir Technologies Under Scrutiny
Palantir Technologies, a notable player in the data-analysis software sector, is facing scrutiny due to potential cuts to US military spending. The company has seen its stock soar over 300% in the past year, largely benefiting from the AI boom and its substantial revenue share from government contracts.
However, the prospect of reduced federal spending has raised concerns among investors, leading to a sell-off in the stock. As Palantir navigates these challenges, the market is acutely aware of the implications for its future growth, weighing the risks and opportunities as the company seeks to maintain its position in a rapidly changing technological environment.
Domino’s Pizza Revenue Report
In the food sector, Domino’s Pizza reported a 2.9% year-over-year increase in revenue, reaching $1.44 billion in the fourth quarter. This growth was driven by higher order volumes and increased prices for food and cardboard sold to stores.
However, the company’s same-store sales growth of 0.4% fell short of analysts’ expectations, reflecting broader market challenges. Despite the disappointing earnings report, analysts suggest that investors may have already factored in the potential for a soft quarter, highlighting the need for Domino’s to adapt to changing consumer preferences.
📎 Related coverage from: yahoo.com
