—— Nike Demand Slump Leads to 2% Layoffs; Nvidia’s Earnings Approach, TSMC Skyrockets; SMCI Surges 250% This Year; Stubborn Inflation PPI Rises More Than Expected; Apple Develops Its Own AI Programming Software; Former Morgan Stanley CEO Earns $37 Million Salary; Masayoshi Son Creates $100 Billion AI Fund
1. Nike Demand Slump Leads to 2% Layoffs
Sportswear giant Nike announced today that it will cut 2% of its workforce due to weaker sales and increasing competitive pressures. The company currently employs 83,700 people worldwide.
In December last year, Nike announced that it would save $2 billion annually through layoffs and streamlining product lines. The company also noted that people are increasingly aware of sports and health.
Nike will conduct the first round of layoffs this Friday, with the second round expected to be completed by the end of the fourth quarter of the fiscal year.
Nike has already dropped 2% this year and has not had a chance to rebound.
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2. MicroStrategy’s Bitcoin Worth $700 Million
Next week, chip giant Nvidia will release its earnings report. Investors who are optimistic about the earnings result and the AI industry have already started positioning by purchasing shares of Taiwan Semiconductor Manufacturing Company (TSMC). On Thursday, TSMC’s stock price surged 8%, increasing its market capitalization by $42 billion.
Currently, TSMC’s market cap has reached $575 billion, ranking 13th globally. If its market value increases by another $60 billion, TSMC could rejoin the top 10 list.
Since the end of September last year, driven by the AI boom, TSMC’s stock has risen by over 30%.
Bloomberg analyst Charles Shum stated that investors are optimistic about the development of AI technology, and TSMC, as a key supplier of Nvidia chips, is at the center of this trend.
Source：Bloomberg – TSMC’s AI-Fueled Rally Puts it on Cusp of Rejoining World’s Top 10 Biggest Stocks
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3. SMCI Surges 250% This Year
On Thursday, Super Micro Computer (SMCI) closed up 5.6%. The stock continued its wild surge this morning before the market opened.
SMCI has gained 36% in the past week, and its year-to-date increase has reached 250%, with the stock rising on 18 of the past 20 trading days. If it rises again this Friday, it will mark the 10th consecutive day of increases, setting a new record over the past decade.
SMCI manufactures AI-required server infrastructure, and Bank of America expects the AI server market share to grow by 50% annually, with SMCI being one of the main beneficiaries.
Last month, SMCI announced earnings far exceeding expectations and raised its revenue forecast.
Source：Bloomberg – Super Micro Set to Extend Huge Rally With Record-Breaking Week
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4. Stubborn Inflation PPI Rises More Than Expected
The U.S. Department of Labor today released data showing that the Producer Price Index (PPI) for January rose by 0.3% month-over-month and 0.9% year-over-year, both exceeding expectations.
Excluding food and energy, the core PPI rose 0.5% month-over-month and 2% year-over-year, further highlighting the persistence of inflation.
After the release of the PPI data, U.S. Treasury bonds were sold off again, with the 2-year Treasury yield rising to a new high since mid-December. Traders reduced the likelihood of the Federal Reserve starting interest rate cuts in May to 25%.
Although gasoline and food prices have eased, many other categories of goods continue to face stubborn inflation.
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5. Apple Develops Its Own AI Programming Software
Sources reveal that Apple plans to launch more generative AI features to compete with Microsoft.
In addition, Apple has spent most of the past year developing its flagship programming software, Xcode, which allows developers to create AI features on their own. Xcode is currently undergoing internal testing and could be released as early as early next year.
Xcode is similar to Microsoft’s GitHub Copilot, using AI to predict and assist in completing programming code, reducing the labor, time, and costs of software development.
The next software update for iPhone and iPad will integrate a series of AI features.
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6. Former Morgan Stanley CEO Earns $37 Million Salary
In 2023, James Gorman, CEO of Morgan Stanley, earned a total of $37 million in salary and bonuses, an increase of 17% compared to the previous year. This included a $1.5 million base salary and a $9 million cash bonus.
Three-quarters of Gorman’s bonus will be paid out in the form of deferred stock over the next three years.
Morgan Stanley stated that under James Gorman’s leadership, the company has laid a stronger foundation for long-term development.
Earlier this month, Ted Pick officially succeeded James Gorman as CEO, with his annual salary rising from $1 million to $1.5 million.
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7. Masayoshi Son Creates $100 Billion AI Fund
Sources reveal that SoftBank founder Masayoshi Son is considering setting up a $100 billion AI investment fund—named Izanagi—to compete with Nvidia. Izanagi is the Japanese god of creating life and things.
Son aims to create a one-stop shop for AI chips that could assist Arm Holdings. Ideally, SoftBank would contribute $30 billion, with the remaining $70 billion coming from institutional investors in the Middle East.
As of December 31, SoftBank held $41 billion in cash and cash equivalents, driven by its stakes in T-Mobile and Arm Holdings.
Son and OpenAI’s Sam Altman had discussed a potential partnership, but their ambitions and strategies differed.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.