Nasdaq's Worst Quarter, Rivian's Micromobility Spin-off, and AI Bubble Fears

Nasdaq's Volatile Quarter and AI Bubble Concerns

• 📉 The Nasdaq 100 experienced its worst quarter in nearly three years, shedding over $2 trillion in market cap, with major tech stocks like Nvidia and Broadcom significantly impacted.
• 💡 Once hailed as AI darlings, these tech giants are now facing scrutiny over AI valuations amidst broader macroeconomic uncertainty.
• 💰 While some analysts suggest tech stocks remain expensive, others see opportunities, with a mutual fund manager holding a small stake for risk management.
• 🚀 The IPO market has been sluggish, with notable exceptions like Newsmax, while private markets see massive funding rounds, such as OpenAI's $40 billion round.

US Chips Act and Tariff Uncertainty

• ⚙️ Commerce Secretary Howard L. Lutnick is leveraging pending Chips Act grants to push semiconductor companies for increased US investment commitments.
• 🇺🇸 The goal is to secure tens of billions in additional investment without increasing federal grants, with TSMC's expanded $100 billion pledge being a key example.
• ⚠️ Companies face uncertainty regarding potential tariffs and policy shifts, making long-term investment planning challenging.
• 📈 The US market is seen as an attractive area for investment by chipmakers like TSMC, Samsung, and Intel, driven by domestic demand and potential tax credits.

Tesla's Sales Slump and Competition

• 🚗 Tesla's sales are slumping in Europe, with significant drops in France and Denmark, despite a recent share price rebound.
• 🇨🇳 In China, Tesla has lost significant market share, falling from double digits to 4% since 2020, due to intense competition from BYD, Xiaomi, and other EV makers.
• ⚡ Competition is fierce globally, with BYD showing record sales growth and other Chinese EV makers introducing innovative products.
• 📉 Potential removal of US federal EV tax credits and tariff concerns could impact future sales, though some buyers are rushing to purchase EVs before credits expire.

Rivian's Micromobility Spin-off: Also

• 🛴 Rivian has spun off its micromobility venture into a new company called Also, backed by $105 million in funding from Rivian and Eclipse.
• 💡 Also aims to develop smaller, lower-cost electric vehicles for short trips, leveraging Rivian's core technology stack.
• 🌍 The micromobility market is seen as a large and growing opportunity to complement existing transportation infrastructure and address congestion and pollution.
• 🛠️ The company plans to launch products in 2026, focusing on improving technical capabilities and user experience in the micromobility space.

AI Investment and Geopolitical Tensions

• 🌐 SoftBank is reportedly seeking a significant loan to fund its AI investments in the US, including a $500 billion AI infrastructure project and a $40 billion funding round for OpenAI.
• 💰 OpenAI has finalized a $40 billion funding round, valuing the company at $300 billion, with SoftBank as a major investor.
• 📈 OpenAI is experiencing spectacular revenue growth, with projections of reaching $12.7 billion this year, though profitability is not expected until the end of the decade.
• 🇪🇺 The EU is preparing to retaliate against potential US tariffs, with discussions of using anti-coercion instruments that could impact big tech companies and intellectual property.
• ⚖️ There's a shift from protecting production to protecting profits, with potential tariffs on data flows and digital services, creating a complex geopolitical landscape.