Nvidia's Superchip, Elon Musk's Microsoft Critique, Apple's AI Advances And More: This Week In Artificial Intelligence - Alphabet (NASDAQ:GOOG), Apple (NASDAQ:AAPL)

A week of seismic tremors reverberated across the tech landscape, from Elon Musk’s bold reproach of the Microsoft-OpenAI liaison to Apple’s quantum leap in AI. Nvidia monopolized attention with their superchip debut, amid murmurs of a potential stock fraction. Furthermore, rumors of a collaborative venture between Apple and Google on the Gemini AI model fueled speculation. Here’s a snapshot:

Nvidia’s Groundbreaking Superchip

Nvidia Corp. revealed its groundbreaking GB200 AI superchip at the prestigious GTC affair. This technological marvel, dubbed a “miracle,” electrified the tech community, eclipsing the inaugural AI supercomputer, DGX-1, previously gifted by Nvidia to OpenAI in 2016.

Musk Takes Aim at Microsoft-OpenAI Alliance

In a bold move, Tesla and SpaceX luminary Elon Musk called out Microsoft Corp. CEO Satya Nadella for discrediting the importance of OpenAI in a lawsuit. Nadella’s cavalier remarks suggesting Microsoft’s self-sufficiency even sans OpenAI raised eyebrows.

Apple’s Trailblazing AI Advancements

Pioneering researchers at Apple Inc. have achieved remarkable strides in AI. Their publication detailing innovative techniques for training large language models (LLMs) utilizing text and images marks a pivotal moment that could usher in a new era of advanced AI systems.

Apple and Google’s Potential Gemini Collaboration

Deepwater Asset Management’s managing partner, Gene Munster, hinted at a potential symbiosis between Apple and Alphabet Inc.‘s Google regarding the licensing of the Gemini AI model. This strategic move might catapult Apple to the forefront of personalized AI and provide Google with substantial recurring revenue streams.

Potential Nvidia Stock Split

Amid soaring Nvidia shares, CNBC’s Jim Cramer broached the topic of a stock split with CEO Jensen Huang. While Huang remained contemplative, he deferred any imminent announcements on the matter.

Tesla, often likened to a high-speed electric car racing down the stock market highway, has had a series of abrupt turns and bumps in its financial journey. While Cathie Wood's Ark Invest projects a massive 990% upside for Tesla stock, the reality of the company's actual financial performance paints a contrasting picture.

Tesla's Uphill Battle: The Challenge of Declining Sales

Despite Tesla's record-breaking delivery numbers in 2023, the electric vehicle giant faces an uphill battle with decelerating sales growth. With Musk's optimistic vision of upping EV production by 50% annually dwindling, Tesla's deliveries saw a 6.5% decrease in the first half of 2024. The company's gross profit margin plummeted to a meager 14.6%, a far cry from its former glory above 30%.

The global electric vehicle market is experiencing a downturn, evident in Europe's 44% drop in EV sales. This slump in demand, coupled with Tesla's struggle to match competitors on pricing, threatens its market position once more affordable EV models hit the scene.

Tesla's FSD Lifeline: The Crux of Ark's Bold Prediction

Ark Invest places its bets on Tesla's Full Self-Driving (FSD) technology, heralding it as the cornerstone of the company's potential resurrection. Yet, with FSD yet to gain approval for widespread use on U.S. roads, Tesla's revenue projections for 2029 appear overly optimistic. Musk's vision of a profitable robotaxi fleet and potential FSD licensing deals with other automakers carry significant uncertainties.

The Reality Check: Challenges Abound for Tesla's Future

Ark's lofty revenue forecasts, bullish on the back of Tesla's FSD capabilities, could prove too ambitious given the current market realities. Tesla's decreasing gross profit margin and declining EPS signal a bumpy road ahead, challenging the feasibility of meeting Ark's grand projections. Musk himself expressed skepticism, labeling Ark's targets as "extremely challenging" on social media.

Tesla's Meteoric Rise: Is the Stock a Bright Star or Just a Shooting Comet? Tesla's Meteoric Rise: Is the Stock a Bright Star or Just a Shooting Comet?

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