Copyright CNBC
Investors can't get enough of artificial intelligence, despite worries over the sector's excessively high valuations. The S&P 500 , Dow Jones Industrial Average and Nasdaq Composite rose Tuesday stateside, with all three notching new intraday highs. The major averages were juiced by gains in tech. Nvidia popped nearly 5%, while Microsoft climbed roughly 2%. Both Apple and Microsoft reached a market capitalization of over $4 trillion after their shares rose. It was the first time Apple hit that milestone, though it closed just shy of that level. Tech companies can't get enough of each other, either. Nvidia announced a $1 trillion investment in Nokia, which the Finnish company said will go toward developing its AI plans. For those, like me, who remember Nokia as a company that made the most desirable and bullet-proof phones: It primarily produces cellular equipment now. Meanwhile, with its 27% stake in OpenAI's for-profit business, Microsoft is potentially sitting on a goldmine — provided AI finds its footing as a sustainable, revenue-generating business in the long run. OpenAI on Tuesday announced it had completed its restructuring as a nonprofit with a controlling stake in its for-profit arm. It's not just Microsoft. Investors who have poured money into tech could potentially gain big — as Cathie Wood of Ark Invest says, "If our expectations for AI … are correct, we are at the very beginning of a technology revolution." Nvidia takes a $1 billion stake in Nokia. The two companies also announced they will be collaborating to develop next-generation 6G cellular technology. Nokia said it'll use the money to fund its AI plans. Shares of Nokia shot up 22% on the news. OpenAI completes its restructuring. Its nonprofit arm now holds a 26% stake in its for-profit one. Microsoft, which has put in more than $13 billion in OpenAI, holds investment in the for-profit that is valued at $135 billion. Separately, PayPal has signed a deal with OpenAI to embed its services in ChatGPT. SK Hynix's profit surges. The firm's third-quarter operating profit soared 62% year on year to 11.38 trillion won ($7.94 billion), a record high, with revenue also scaling a new peak on strong AI-fueled memory demand. SK Hynix is the main memory chip supplier to Nvidia. U.S. indexes hit fresh records. Major averages climbed Tuesday stateside. Apple and Microsoft surpassed a valuation of $4 trillion during trading. The Stoxx Europe 600 fell 0.22%. However, London's U.K. FTSE 100 rose 0.44% to close at an all-time high. [PRO] Gold enters correction territory. Both spot gold and gold futures prices are below $4,000 now after breaking $4,300 just last week. Here's what analysts are saying about the precious metal's recent movement — and where it could go in the long term.
