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Nvidia Becomes 2nd Most Valuable Company in the USA, ASML Takes 2nd Spot in Europe, and More News

Fernanda T
Latest News
June 06 2024 7:34AM

Nvidia (NASDAQ:NVDA) – The AI chip manufacturer is now the second most valuable company in the world after reaching a record market value, surpassing $3 trillion and Apple (NASDAQ:AAPL). With growing demand for its AI chips, the company is also preparing for a ten-for-one stock split, increasing interest from individual investors. This valuation increase in Nvidia’s U.S. shares, which has been concentrated among a few companies, raises concerns about market reliance on these giants. This centralization in the S&P 500, dominated by Nvidia and other megacaps, suggests the index’s vulnerability to fluctuations in these few companies. Microsoft, Nvidia, and Apple together have a combined market value of about $9.2 trillion, surpassing the total $9 trillion of the Chinese stock market, excluding Hong Kong.

ASML Holding NV (NASDAQ:ASML) – ASML is now the second-largest listed company in Europe, surpassing LVMH in market value after its shares jumped on Wednesday, valuing the company at approximately €377 billion. This value is slightly higher than LVMH’s, with ASML benefiting from the demand for its advanced semiconductor manufacturing machines.

Microsoft (NASDAQ:MSFT) – The U.S. Department of Justice and the FTC have agreed to investigate the antitrust practices of Microsoft, OpenAI, and Nvidia in the AI industry. The investigation is divided between Nvidia, led by the Department of Justice, and OpenAI along with Microsoft, under the FTC’s jurisdiction. The FTC is investigating the $650 million deal between Microsoft and Inflection AI, suspecting it was structured to avoid antitrust scrutiny. Documents have been requested to ascertain whether the partnership was formed to give Microsoft control over the startup without regulatory investigation.

Alphabet (NASDAQ:GOOGL) – A class-action lawsuit accusing Google of abusing its dominance in the digital advertising market can proceed in the UK after a favorable ruling by the Competition Appeal Tribunal. The lawsuit, seeking up to $17.4 billion (£13.6 billion) in damages, alleges that Alphabet favored its own online advertising services from 2014 to 2022. In other news, Gideon Yu, former CFO of YouTube and Facebook, is leading an initiative to raise about $500 million for a fund associated with Alphabet’s X lab. The fund, though independent, will focus on investing in emerging startups from X, seeking capital in a challenging venture capital environment.

Meta Platforms (NASDAQ:META) – Meta’s plan to use personal data to train AI without explicit consent has been criticized by the organization None of Your Business (NOYB), which has called for action from European privacy regulators. NOYB alleges that Meta intends to use users’ personal information in ways that may violate EU privacy laws.

Salesforce (NYSE:CRM) – Salesforce, the American enterprise software giant, is opening an artificial intelligence center in London with over 40,000 square feet, capable of accommodating more than 300 people. The company expects the center to create 500,000 AI-related jobs in the UK. The official opening will be on June 18, with an event to train more than 100 developers. This center is part of a $4 billion investment in the UK over five years, including over $200 million in British startups.

Amazon (NASDAQ:AMZN) – Zoox, Amazon’s robotaxi unit, announced it will begin testing its autonomous vehicles in Austin and Miami, marking its first test locations outside the western U.S. The tests will include adapted Toyota Highlanders, with safety drivers, in the commercial and entertainment areas of the cities. Additionally, the Amazon Labor Union (ALU) agreed to affiliate with the International Brotherhood of Teamsters, expanding unionization efforts at Amazon. This decision follows the ALU’s historic victory in April 2022, when workers at Amazon’s JFK8 warehouse in New York voted to unionize.

Walmart (NYSE:WMT) – Walmart will pay annual bonuses of up to $1,000 to 700,000 hourly workers in the U.S., a measure suggested by employee feedback. Both part-time and full-time associates, after one year with the company and meeting performance goals, are eligible.

Lockheed Martin (NYSE:LMT) – Lockheed Martin has signed a contract with Firefly Aerospace for up to 25 launches of the Alpha rocket by 2029. The launches, conducted from facilities on the U.S. west and east coasts, will carry Lockheed payloads and spacecraft to low Earth orbit.

Boeing (NYSE:BA) – After several technical delays, Boeing’s new Starliner astronaut capsule, carrying two astronauts, was successfully launched from Florida, marking its first manned test flight. Additionally, Boeing CEO Dave Calhoun will testify before a U.S. Senate panel about safety and quality concerns that have limited 737 MAX production following incidents, including a door failure during a flight. Calhoun will address the measures the company has taken to improve safety.

Spirit AeroSystems (NYSE:SPR) – Spirit AeroSystems announced on Wednesday that its CFO, Mark Suchinski, is leaving the company amid cash flow difficulties and during negotiations of a possible merger with Boeing, its former owner. Suchinski will be replaced by Irene Esteves, a former Time Warner Cable executive, and will remain for a transition period.

Ryanair (NASDAQ:RYAAY) – The EU’s General Court upheld the validity of Spain’s $10.9 billion bailout fund to support companies affected by the pandemic, rejecting a challenge from Ryanair. The decision is a boost for the European Commission, which faces other legal challenges over state aid approvals during the pandemic.

American Airlines (NASDAQ:AAL) – The Association of Professional Flight Attendants (APFA) unanimously rejected American Airlines’ proposal, which included an immediate 17% pay increase and new profit-sharing. The union demands a comprehensive contract that meets all its needs after years without significant pay increases.

Spirit Airlines (NYSE:SAVE) – S&P Global Ratings downgraded Spirit Airlines’ debt to “junk,” moving from CCC+ to CCC. The agency foresees liquidity issues for the company over the next 12 months and indicated a negative outlook due to ongoing operational challenges. Spirit is negotiating restructurings to avoid bankruptcy after failing to merge with JetBlue.

Tesla (NASDAQ:TSLA) – Prominent investor Ron Baron publicly supported Elon Musk’s controversial $56 billion pay package at Tesla, which will soon be voted on by shareholders. Baron argues that Musk, who receives no fixed salary and is compensated in stock, is essential for Tesla’s continued success and growth. The annual meeting on Musk’s compensation is scheduled for June 13.

Toyota Motor (NYSE:TM) – Toyota announced on Wednesday it will invest $282 million in Huntsville, Alabama, to create new production lines. This financial injection will result in approximately 350 new job openings.

Exxon Mobil (NYSE:XOM) – Vanguard, one of the world’s largest investment management firms, supported the re-election of Exxon’s directors despite expressing concerns about the company’s lawsuit against climate activists, which could deter future shareholder proposals. All 12 directors, including Chairman Darren Woods, were re-elected, despite controversies involving the withdrawal of a climate measure.

KKR & Co (NYSE:KKR) – KKR, Global Infrastructure Partners, and the Indo-Pacific Partnership for Prosperity have formed a coalition to invest $25 billion in infrastructure in the Indo-Pacific region, including green data centers in Indonesia and renewable energy in the Philippines and India, announced U.S. Commerce Secretary Gina Raimondo.

Bank of America (NYSE:BAC) – Kempton Dunn has moved to Bank of America as managing director after working at Perella Weinberg Partners. He will focus on software and be based in Palo Alto, reporting to the co-heads of global technology investment banking. Dunn has experience in large deals and IPOs in the tech sector.

Novo Nordisk (NYSE:NVO) – Novo Nordisk faces increasing competition in China, where local pharmaceutical companies are developing 15 generics of its Ozempic and Wegovy drugs. With the semaglutide patent set to expire in 2026 and an ongoing lawsuit, Novo may lose exclusivity for these treatments in this key market.

Nike (NYSE:NKE) – Following LeBron James, Kevin Durant, and Steph Curry, the NBA is anticipating the rise of new stars. The next two weeks of games are crucial as young talents like Jayson Tatum and Luka Doncic have the chance to establish themselves as the next basketball and sneaker market icons. Additionally, Nike is cutting costs in its global operations, including a 2% workforce reduction. The European headquarters in the Netherlands is facing layoffs as part of this $2 billion savings plan. Layoffs in Europe began recently due to differences in local labor laws.

Dollar Tree (NASDAQ:DLTR) – Dollar Tree is evaluating options for its struggling Family Dollar business, including a possible sale or spin-off. The review follows an attempt to revitalize the 2015 acquisition, valued at $8.9 billion, which has yet to yield the expected returns.