Nvidia Skyrockets Past Alphabet to Claim Third Place in U.S. Market Cap Race

Key Points

• Nvidia Tops Alphabet: Market cap reaches $1.83 trillion, ranks third in U.S.
• Berkshire Trims Apple: Sells shares, signals potential new investment.
• Nvidia Diversifies: Invests in AI, biotech, including $147.3M in Arm Holdings.
• Japan in Recession: GDP falls, loses 3rd-largest economy status to Germany.
• Morgan Stanley Layoffs: Cuts hundreds in wealth-management division.

Nvidia’s Silicon Surge: Chipmaker Tops Google in Market Cap Race

Nvidia has overtaken Alphabet in market value, becoming the third-largest U.S. company. Closing at $739.00 per share, Nvidia’s market cap reached $1.83 trillion, surpassing Alphabet’s $1.82 trillion. This leap reflects Nvidia’s significant role in the AI boom, with its AI server chips in high demand. The company’s stock has surged over 221% in the past year. Nvidia, once known for its PC gaming graphics processors, now outstrips even tech giants like Google in market valuation. (CNBC)

Berkshire’s Orchard Pruning: Apple Stake Trimmed, Mystery Investment Looms

Berkshire Hathaway has reduced its substantial stake in Apple and sold off four other stock holdings, stoking speculation about Warren Buffett’s next major investment. In its latest regulatory filing, Berkshire disclosed the sale of 10 million Apple shares but maintains over 905 million shares. The conglomerate also divested from DR Horton, Globe Life, Markel, and StoneCo, while increasing its Chevron stake and reducing positions in HP and Paramount Global. Berkshire’s confidential investment remains a mystery, with speculation about a significant stake in a bank, finance company, or insurer. (Reuters)

Nvidia’s Chip Dip: Diverse Bets Beyond the Silicon Realm

Nvidia Corp., a leading force in the AI-driven tech surge, recently revealed its diverse investment portfolio in a 13F filing with the SEC. The chipmaker’s strategy includes stakes in Arm Holdings, SoundHound AI, and Recursion Pharmaceuticals. While its attempted $40 billion acquisition of Arm in 2020 fell through, Nvidia maintains a significant $147.3 million stake in the company. SoundHound, a specialist in AI audio recognition, saw its shares leap by 55% following Nvidia’s disclosed investment. Nvidia’s involvement extends to biotech and self-driving sectors, highlighting a strategic shift beyond its semiconductor roots. (Bloomberg)

Land of the Falling Yen: Japan’s Unexpected Stroll into Recession

Japan has surprisingly entered a recession, with its GDP contracting by 0.4% in the last quarter of 2023, following a 3.3% shrinkage in the previous quarter. This downturn has led to Japan losing its status as the world’s third-largest economy to Germany. The decline, unexpected by economists who predicted growth, is primarily due to the yen’s weakness against the dollar. Despite this economic contraction, Japan’s stock market, boosted by the lower yen, has reached a significant milestone, crossing the 38,000 mark on the Nikkei 225 index. (CNBC)

Morgan Stanley’s Wealth Woes: Trimming the Financial Fat”

Morgan Stanley is set to cut hundreds from its wealth-management team, The Wall Street Journal reports. This move, trimming about 1% of the division’s workforce, comes amid a slowdown in growth and flat revenue in the fourth quarter. The layoffs mark a significant action by CEO Ted Pick, who assumed the role this year. While financial advisors seem safe, managing directors and other non-client-facing staff are bracing for the impact. The company has not officially commented on the layoffs. (Wall Street Journal)