Quick Peek:

1. Alphabet’s AI Push: How a $75 billion investment gave Nvidia stock a much-needed lift.

2. OpenAI’s “Stargate” Initiative: A $500 billion project reshaping U.S. AI infrastructure.

3. Amazon vs. Walmart: For the first time, Amazon is set to surpass Walmart in quarterly revenue.

4. Super Bowl Ads: The high-stakes game of humor, nostalgia, and celebrity endorsements.

5. Market Resilience: Despite AI competition and tariffs, stocks are holding strong.

6. Volvo & Waabi’s Autonomous Trucks: The future of freight is AI-driven.

Big Tech’s AI Spending Spree Sparks Optimism for Nvidia

Tech giants are doubling down on AI, and Nvidia is at the center of it all. Alphabet, along with Meta and Amazon, is set to collectively spend over $240 billion on AI-driven infrastructure, fueling demand for high-performance AI chips and reinforcing Nvidia’s dominant position in the market.

Why This Matters for Nvidia:

• Alphabet’s $75 Billion Capex: A massive investment in AI infrastructure ensures continued reliance on Nvidia’s GPUs for cutting-edge AI applications.

• Amazon’s Record $100 Billion Spend: The company is scaling up cloud-based AI services through Amazon Web Services (AWS), solidifying its place as a key Nvidia customer.

• Meta’s $65 Billion Investment: With an aggressive push into AI-powered data centers, Meta is heavily investing in AI training hardware, where Nvidia’s chips remain essential.

Despite rising competition from cost-efficient AI models like China’s DeepSeek, the sheer scale of investment from Alphabet, Amazon, and Meta reinforces Nvidia’s long-term growth trajectory as the undisputed leader in AI hardware.

As AI investment reaches historic levels, OpenAI is also making waves with its massive $500 billion Stargate project.

OpenAI’s “Stargate” Project – A $500 Billion AI Infrastructure Play

In a strategic push to expand AI capabilities, OpenAI is teaming up with Oracle and SoftBank to build advanced AI data centers across 16 U.S. states. Dubbed the “Stargate” project, this initiative could inject over 100,000 jobs into the economy by 2029.

What’s Driving This Move?

• Self-Sufficiency: OpenAI wants to reduce reliance on Microsoft’s cloud infrastructure.

• Site Selection: Locations like Texas, Oregon, and Pennsylvania are being considered for their power and water accessibility.

• Sustainability Considerations: While not fully renewable-focused, the project aims to balance carbon emissions.

Tech isn’t the only industry seeing seismic shifts—retail is witnessing a historic moment, too.

Amazon Set to Surpass Walmart in Quarterly Revenue

For the first time in history, Amazon is projected to overtake Walmart in quarterly revenue, with an estimated $187 billion in Q4 2024 sales, compared to Walmart’s $180 billion.

How Amazon Pulled Ahead:

• AWS Powerhouse: Amazon Web Services (AWS) now accounts for 17% of total sales.

• E-Commerce Boom: Online shopping exploded post-pandemic, doubling Amazon’s North American sales since 2019.

But Walmart Isn’t Going Anywhere:

• Walmart still dominates annual revenue with a projected $681 billion in 2024.

• Its stronghold in groceries keeps foot traffic high.

Retail isn’t the only space where brands are battling for dominance—Super Bowl LIX advertisers are also fighting for attention.

Super Bowl LIX: The $8 Million Ad Wars

Super Bowl commercials are a high-stakes game of humor, nostalgia, and star power, with 30-second spots going for over $8 million.

Trends to Watch This Year:

• Comedy & Throwbacks: Pringles brings in Andy Reid and Adam Brody for a mustache-themed ad.

• Star-Studded Endorsements: Ben Affleck leads the “DunKings” boyband in a Dunkin’ campaign.

• Pre-Game Hype: Meta is leveraging Chris Hemsworth and Chris Pratt for its Ray-Ban smart glasses campaign.

• Beyond Game Day: Brands are extending ad campaigns online for sustained engagement.

But investors are watching how markets react to AI disruptions and policy changes.

Markets Hold Strong Despite AI Disruptions & Tariffs

Despite challenges like China’s DeepSeek AI breakthrough and new U.S. tariffs, the S&P 500 and Nasdaq remain near record highs.

What’s Fueling Market Resilience?

• AI Competition: DeepSeek’s cost-efficient AI models spooked investors, but tech giants remain unfazed, seeing AI as a growth catalyst.

• Tariff Impact: Trump’s new tariffs on China, Mexico, and Canada added uncertainty, but traders remain optimistic about long-term economic strength.

This confidence in AI-powered industries is extending beyond Wall Street into real-world applications like autonomous trucking.

Volvo & Waabi Join Forces to Bring AI to Trucking

Volvo is partnering with Waabi, a self-driving tech company backed by Nvidia and Uber, to develop autonomous freight trucks.

The Road Ahead:

• AI-Powered Driving: Waabi’s virtual driver system will integrate with Volvo’s VNL Autonomous trucks.

• Pilot Testing: Initial test runs in Texas will start with human drivers, transitioning to full autonomy later.

• Investment Backing: Volvo, Khosla Ventures, and Porsche are funding Waabi’s $200 million expansion.

Autonomous freight could revolutionize logistics, addressing driver shortages and boosting efficiency in supply chains.

Fill the French Press