Tech Sector Faces Fresh Challenges
The tech sector experienced a tumultuous week, with several key events impacting market sentiment. The US Bureau of Industry and Security’s announcement of new export restrictions targeting 80 companies across Asia and the Middle East weighed heavily on equities. Moreover, a decline in consumer confidence and rising underlying inflation concerns further dampened market optimism.
NVIDIA, Meta, and Microsoft Take a Hit
NVIDIA ended the week 8.52 percent lower, while Meta Platforms logged losses of 6.22 percent and Microsoft declined by 4.2 percent. Apple’s share price pulled back by a modest 1.41 percent, while Tesla staged a partial comeback after suffering a roughly 25 percent decline in its share price earlier this month.
BYD Reports Strong Q4 Results
BYD, China’s top car brand, released its fourth-quarter results, with net profits totaling 15 billion yuan (US$2.1 billion), a 73.1 percent increase compared to the previous year. The company expects to ship up to 5.5 million vehicles in 2025.
Tesla Sentiment Improves
Tesla’s share price staged a partial comeback this week after suffering a roughly 25 percent decline in its share price earlier this month. Investor sentiment may have been lifted by analysis from CFRA Research analyst Garrett Nelson, who said Tesla is the "least exposed" to Trump’s sweeping 25 percent automobile tariffs.
Big Tech Advances in AI
Big Tech companies made significant advancements in artificial intelligence (AI) image generation and reasoning. OpenAI released 4o Image Generation, while Microsoft unveiled "deep reasoning agents" for 365 Copilot. Google’s DeepMind introduced Gemini 2.5 Pro, which it claims has superior reasoning capabilities over older iterations and competing models.
CoreWeave Downsizes IPO
CoreWeave’s initial public offering (IPO) journey concluded, with the company opting to decrease the size and price of its IPO. The company initially filed for a New York IPO, targeting a US$4 billion raise and a valuation exceeding US$35 billion. However, the company’s lower IPO was due to market conditions and financial concerns.
OpenAI Revenue and Funding Rumors Circulate
OpenAI is exploring the construction of its first data center, and its revenue is projected to potentially triple to US$12.7 billion this year and reach $29.4 billion in 2026. The company is also reportedly near a record-breaking funding round worth US$40 billion led by SoftBank Group.
Microsoft Cuts Data Center Plans
Microsoft closed down on Wednesday after an analyst note alleged that the company had abandoned plans for new data centers in the US and Europe. However, Microsoft said it is "well positioned to meet our current and increasing customer demand" and will continue to grow strongly in all regions.
