Anti-Clickbait News Summaries for February 23, 2025
Alphabet boosts AI investment to $75 billion and expands Gemini leadership
Hi! It’s Jack and The Stock Insider team with the best, non-partisan daily newsletter related to politics, the US stock market, and business. 😇
The Podcast:
The Markets:
Futures Highlights
Today's futures market was mixed, with Natural Gas surging while key indices and commodities experienced notable declines. This volatility reflects global uncertainties impacting energy and equity markets.
🔴 Crude Oil: 70.25 (−2.23 | −3.08%)
🟢 Natural Gas: 4.2570 (+0.2100 | +5.19%)
⚪ Gold: 2949.60 (−6.50 | −0.22%)
🔴 Dow: 43482.00 (−786.00 | −1.78%)
🔴 S&P 500: 6029.75 (−106.75 | −1.74%)
🔴 Nasdaq 100: 21660.00 (−481.75 | −2.18%)
🔴 Russell 2000: 2200.40 (−66.20 | −2.92%)
Forex & Bonds Highlights
The forex and bond sectors showed modest declines, with most pairs posting minimal losses while treasury yields edged downward further. Overall, the subdued movement signals a cautious sentiment among investors in these instruments.
⚪ EUR/USD: 1.0456 (−0.0045 | −0.42%)
⚪ USD/JPY: 149.23 (−0.40 | −0.27%)
⚪ GBP/USD: 1.2630 (−0.0039 | −0.31%)
🔴 BTC/USD: 95515.50 (−867.20 | −0.90%)
🔴 5-Year Treasury: 4.258 (−0.084 | −1.93%)
🔴 10-Year Treasury: 4.42 (−0.08 | −1.78%)
🔴 30-Year Treasury: 4.669 (−0.069 | −1.46%)
Major News Highlights
Equity markets were highly volatile today, with standout winners contrasting sharply against significant declines in other major stocks. The performance ranged dramatically, as a couple of stocks surged while most experienced losses.
🟢 CELH: +27.77%
🟢 NVO: +5.18%
⚪ AAPL: −0.11%
🔴 META: −1.62%
🔴 MSFT: −1.90%
🔴 WMT: −2.50%
🔴 GOOGL: −2.65%
🔴 GOOG: −2.71%
🔴 AMZN: −2.83%
🔴 NVDA: −4.05%
🔴 TSLA: −4.68%
🔴 RIVN: −4.70%
🔴 CRWD: −6.75%
🔴 UNH: −7.17%
🔴 COIN: −8.27%
🔴 AKAM: −21.73%
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Beyond the Paywall:
Events Affecting The Markets Today & Beyond
Most Impactful News Summaries
Today:
Today—Sunday, February 23, 2025—is a non‐trading day for U.S. markets, so there aren’t any major U.S.-centric economic data releases, policy announcements, or corporate earnings scheduled that would directly move U.S. stock prices during market hours.
Below is what we found for today:
Corporate & Earnings Events
Earnings Calendar Check: According to the Markets Insider Earnings Calendar, there are two events listed for February 23, 2025:
Perseus Ltd Q2 2025 Earnings
Sharjah Islamic Bank Registered Shs Annual General Meeting
While these are scheduled events today, they involve companies that are not U.S.-based, and therefore their direct influence on U.S. market sentiment is likely to be minimal.
Most Impactful News Summaries:
Jack’s note: I recently feel like I’m running an AI newsletter…
About Donald Trump, Elon Musk, and China…
I’m really trying to be non-partisan.
These articles are simply the most influential.
😇
China identifies key defect in gallium nitride to boost semiconductor technology
Chinese researchers have identified the main cause of defects in gallium nitride (GaN), a key material for advanced electronics. This discovery could enhance the performance of GaN, which is crucial for military and communication technologies.
The team at Peking University found that dislocation defects disrupt GaN's crystal structure, affecting its efficiency. They used advanced microscopy to observe these defects and proposed methods to reduce them by adjusting electron energy levels.
China's control over gallium production and recent export bans have raised costs for GaN-based semiconductors in the U.S. This development may strengthen China's position in semiconductor technology, particularly for military applications.
Source: https://interestingengineering.com/innovation/china-gan-semiconductor-breakthrough
Westinghouse aims for cost-effective nuclear plants in the U.S. after past challenges
Westinghouse Electric Company is optimistic about building new nuclear plants in the U.S. after overcoming past challenges. The company emerged from bankruptcy in 2018 and is now focusing on completing two partially built reactors in South Carolina, driven by demand from data centers.
The recent success of two AP1000 reactors at Plant Vogtle in Georgia, despite significant delays and cost overruns, has renewed interest in nuclear energy. Westinghouse believes that lessons learned from previous projects will lead to more efficient and cost-effective construction of future reactors.
The tech sector's growing need for reliable, carbon-free energy is influencing the nuclear landscape. Companies like Meta and Amazon are investing in nuclear technology, which may help revitalize large reactor projects, including Westinghouse's AP1000 design.
Microsoft plans $80 billion AI investment as Nadella warns of potential oversupply
Microsoft plans to invest $80 billion in AI data centers this year, joining other tech giants like Meta, Amazon, and Alphabet, which are also increasing their AI spending significantly. This surge in investment aims to support advanced AI model training and cloud deployment.
Microsoft CEO Satya Nadella expressed concerns about a potential oversupply of AI computing capacity in the coming years. He indicated that the company may lease capacity instead of building more, suggesting that increased supply could lead to lower prices for AI computing.
Nvidia, a key supplier of GPUs for AI, may face challenges if demand does not keep pace with the rapid expansion of AI infrastructure. The rise of companies designing their own AI chips could further impact Nvidia's market position and profitability.
Source: https://www.fool.com/investing/2025/02/23/microsofts-satya-nadella-just-gave-nvidia-stock-a/
NASA reviews Boeing's $82 billion Space Launch System program for potential cancellation
NASA is considering canceling Boeing's Space Launch System (SLS) program, which has cost $82 billion. Boeing's program manager warned employees that layoffs could happen if contracts are cut, as the Trump administration reviews federal spending.
Despite concerns, NASA stated that the SLS is still "essential" for Project Artemis. However, it could not guarantee job security for Boeing's SLS workers. The potential cancellation could redirect funds to other companies like SpaceX and Blue Origin.
If the SLS program ends, it may not halt Project Artemis. Other companies could benefit from the funding, as they have contracts for lunar missions. This shift could impact Boeing and its partners significantly.
Source: https://www.fool.com/investing/2025/02/23/nasa-may-cancel-boeings-big-82-billion-space-oppor/
OpenAI researcher highlights enduring importance of soft skills in AI era
OpenAI researcher Karina Nguyen emphasized that soft skills like creativity and emotional intelligence will remain essential, even as AI advances. She noted these skills are challenging for AI to replicate, despite its growing capabilities.
Nguyen shifted from engineering to research after observing AI's rapid improvement in coding. She now focuses on management and mentorship, believing that human skills will continue to be valuable in the evolving job landscape.
She also mentioned that AI models are becoming more efficient and cost-effective. This could lead to broader applications in fields like healthcare, where AI might assist with symptom analysis.
Source: https://www.businessinsider.com/openai-researcher-soft-skills-valuable-ai-2025-2
Billionaire predicts Tesla's market value could reach $5 trillion in next decade
Billionaire Ron Baron predicts Tesla's market value could reach $5 trillion in the next decade, a 285% increase from its current $1.3 trillion. This optimism follows disappointing 2024 financial results, including a 1% drop in deliveries.
Despite challenges, Tesla remains a leader in battery-electric car sales. The company plans to launch a new sub-$30,000 vehicle, the Model Q, in 2025 and will introduce an autonomous ride-sharing service in Austin by June.
Tesla is also developing humanoid robots called Optimus, with plans to produce 10,000 units in 2025. The company aims to leverage its AI expertise to enhance its autonomous driving technology and compete in the robotaxi market.
Source: https://finance.yahoo.com/news/1-ai-robotics-stock-buy-095500969.html
Asset managers embrace defense funds as investment strategies shift
Asset managers are increasingly investing in defense funds, which were previously considered too controversial. The number of defense-themed funds has doubled to a record 47, reflecting a significant shift in investment strategies.
Governments in Europe are planning major increases in defense spending, influenced by changing geopolitical dynamics. This has led to a growing acceptance of defense assets, even among investors focused on environmental, social, and governance criteria.
Funds like the VanEck Defense UCITS ETF have seen substantial growth, with over $2 billion in assets and strong returns. Analysts estimate that Europe may need an additional $3.1 trillion for defense over the next decade.
Source: https://ca.finance.yahoo.com/news/asset-managers-churn-defense-funds-090000608.html
China unveils rural revitalization plans to boost food security in annual policy document
China has announced new rural revitalization plans in its annual policy document, aiming to strengthen food security. This comes amid challenges like U.S. tariffs on agriculture, economic slowdown, and climate change.
The State Council's "No. 1 document" includes reforms to improve rewards and subsidies for major grain-producing areas. It also promotes the industrialization of biotech cultivation.
These measures mark a significant step in China's ongoing efforts to enhance its agricultural sector and address rural development challenges.
Amazon aims for $3 trillion market cap by 2026 with strong earnings and AI growth
Amazon's market capitalization is currently $2.4 trillion, and it is predicted to join the $3 trillion club by 2026. This follows strong earnings growth and advancements in artificial intelligence, particularly through its Amazon Web Services (AWS) platform.
AWS has become a key profit driver for Amazon, generating $107.5 billion in revenue in 2024. The company is also improving efficiency in its e-commerce operations by using AI to enhance logistics and customer experience.
Amazon's earnings per share reached a record $5.53 in 2024, a 90% increase from the previous year. Analysts forecast that if Amazon meets expectations, its stock could rise significantly, potentially pushing its market cap above $3 trillion.
Source: https://www.fool.com/investing/2025/02/23/prediction-stock-join-nvidia-apple-3-trillion-2026/
Chinese wargame claims destroyer can blind US missiles in simulation
A recent Chinese wargame simulation showed a Type 055 destroyer temporarily blinding incoming U.S. anti-ship missiles. This contrasts with a previous scenario where U.S. missiles sank the Chinese warship, suggesting China may be signaling confidence in its understanding of U.S. missile technology.
The simulation involved a U.S. carrier strike group attacking a Chinese fleet in the South China Sea. Chinese researchers claimed their destroyer successfully jammed the U.S. missiles' guidance systems, although the accuracy of these claims remains unverified.
Western analysts suggest China may be using this wargame to undermine U.S. confidence in its missile capabilities. They note that the simulation's assumptions about jamming and missile defense raise questions about its realism and the true extent of China's technological advancements.
Source: https://ca.news.yahoo.com/chinese-wargame-hints-blind-cutting-090302005.html
Trump focuses on key campaign promises in first month back in office
In his first month back in office, Donald Trump has focused on fulfilling key campaign promises. He has issued numerous executive orders on immigration and initiated talks with Russia regarding the Ukraine war. However, he faces legal and political challenges.
Trump's immigration efforts include a plan for large-scale deportations, but current removal numbers are below previous averages. He has also taken steps to end birthright citizenship, which may face legal hurdles after a court ruling against him.
On economic issues, Trump promised to lower prices but has struggled with rising inflation. He announced tariffs on Canada and Mexico, which have been delayed amid concerns about market volatility and retaliatory measures from those countries.
Source: https://www.bbc.com/news/articles/crlx8w5wdl0o
Brussels plans major cuts to EU green regulations in leaked proposal
Brussels is set to propose significant cuts to the EU's green regulations, according to a leaked bill. Many businesses would be exempt from sustainability reporting, easing concerns over complex compliance requirements.
The omnibus bill, expected on February 26, aims to simplify major green rules, including corporate sustainability reporting and due diligence directives. It may also include changes to the carbon border tax.
The draft suggests reducing due diligence obligations, allowing companies to focus only on direct suppliers. This has raised concerns among green groups, who argue it undermines important sustainability laws.
Source: https://www.politico.eu/article/brussels-plans-sweeping-cuts-to-eus-green-rules-leaked-bill-reveals/
Marvell Technology targets $8 billion in custom silicon growth as AI market evolves
Marvell Technology, Inc. plans to grow its custom silicon business to $8 billion amid recent shifts in the AI market. A breakthrough by a Chinese startup has disrupted the sector, leading to a sell-off in tech stocks.
The new AI model offers performance comparable to established systems but at a lower cost. This has prompted investors to reconsider their reliance on expensive hardware and has changed the competitive landscape.
As companies adapt to these cost-efficient models, they are focusing on innovation and operational efficiency. This shift opens up new investment opportunities in a market that is becoming more competitive and diversified.
Source: https://ca.finance.yahoo.com/news/marvell-technology-inc-mrvl-eyes-192401461.html
Alphabet boosts AI investment to $75 billion and expands Gemini leadership
Alphabet Inc. has increased its investment in artificial intelligence to $75 billion and is expanding its Gemini AI leadership. This comes amid a significant shift in the AI market following a breakthrough by a Chinese tech startup in January 2025.
The new AI model from the startup has shown performance comparable to established systems but at a much lower cost. This development has led to a sell-off in tech stocks and prompted investors to reassess their strategies regarding high-cost hardware.
As companies adapt to these cost-efficient models, the competitive landscape is changing. Traditional tech giants are now reevaluating their approaches, while new investment opportunities are emerging in a more diversified AI market.
Source: https://ca.finance.yahoo.com/news/alphabet-inc-googl-boosts-ai-193628418.html
AI designs new wireless microchips that outperform human-made models
An international team of researchers has used AI to design new wireless microchips that outperform traditional human-made designs. The AI-generated layouts are highly optimized but appear random and difficult for humans to understand.
This new approach, published in the journal Nature, leverages deep learning to create chip structures more efficiently than the current labor-intensive methods. The researchers emphasize that while AI can enhance productivity, human oversight remains essential to correct potential design flaws.
The findings suggest a shift in microchip design, particularly for millimeter-wave technology, which is a growing industry. Future developments may lead to more complex circuits built from these smaller AI-designed structures.
Source: https://futurism.com/the-byte/ai-designed-chip
West faces challenges in securing uranium supplies as nuclear energy demand rises
The world is set to generate a record amount of nuclear energy in 2025, driven by growing support for nuclear power as a solution to energy demand and decarbonization. Over 70 gigawatts of new nuclear capacity is currently under construction globally.
As demand for uranium is expected to rise significantly, the West may be falling behind in securing uranium supplies. The U.S. and Europe have seen declines in their nuclear sectors, while Russia and China maintain strong ties in uranium markets and are aggressively securing resources.
Kazakhstan, a major uranium supplier, has shifted its exports, with two-thirds now going to Russia and China, down from 60% to the West in 2021. This shift raises concerns about supply shortages and potential geopolitical impacts as demand increases.
Source: https://oilprice.com/Alternative-Energy/Nuclear-Power/Is-the-West-Losing-the-Race-for-Uranium.html
OpenAI plans changes to strengthen board power after Musk's takeover attempt
Elon Musk's recent attempt to take over OpenAI was rejected. In response, OpenAI is considering changes to strengthen its nonprofit board's power, ensuring it can resist future takeover attempts, including from Musk and other investors.
The proposed changes would grant special voting rights to existing nonprofit directors as OpenAI transitions to a for-profit public benefit corporation. This aims to maintain control and uphold its original charitable mission.
OpenAI's board currently has no shareholders, which protects it from acquisitions. However, as it restructures, it seeks to implement measures that could prevent hostile takeovers, particularly from major investors like Microsoft.
Source: https://ca.finance.yahoo.com/news/openai-is-trying-to-make-itself-elon-musk-proof-153055308.html
Microsoft CEO questions AI's economic value and AGI claims
Microsoft CEO Satya Nadella has expressed skepticism about the value generated by AI, particularly regarding the pursuit of artificial general intelligence (AGI). He described claims of achieving AGI as "nonsensical" and emphasized the need to focus on real-world economic impact.
Nadella highlighted that AI has not yet demonstrated significant contributions to economic growth, contrasting current AI capabilities with the transformative potential of the Industrial Revolution. He noted that measurable productivity increases are necessary to validate AI's economic promise.
Despite his critical stance, Microsoft continues to invest heavily in AI, including a $12 billion investment in OpenAI. Nadella's comments aim to temper expectations while the company remains committed to advancing AI technology.
Source: https://futurism.com/microsoft-ceo-ai-generating-no-value