All articles tagged with #ai products
Microsoft's stock fell over 2% following a report that the company has cut AI sales quotas due to weaker-than-expected demand, as customers resist adopting newer AI products. Despite a strong year-to-date performance, Microsoft's shares have declined this quarter amid broader concerns about AI adoption and spending in the tech industry.
Figma's first earnings report as a public company showed a slight profit and revenue beat, but fell short of investor expectations, leading to a 13% drop in shares. Despite strong revenue growth and new product launches, including AI-powered tools, high valuation concerns and management outlook disappointment caused investor sell-off, with shares down over 40% since debut.
AMD reported a record $7.7 billion revenue for Q2 2025, driven by strong server and PC processor sales, despite an $800 million inventory charge due to US export restrictions. Net income was $872 million, with significant growth in data center and client segments, and the company remains optimistic about future growth supported by new AI solutions and strategic investments.
Microsoft is allegedly using deceptive tactics in Bing search results to promote its AI assistant Copilot, including replacing search results for competitors like ChatGPT and Google Gemini with promotional content for Copilot, raising concerns about transparency and honesty in search engine practices.
AMD's stock has risen 6% this year due to strong Q1 results and new AI offerings, but Wall Street remains cautious with an average price target indicating limited upside. Analysts are mixed, with some optimistic about product launches and long-term potential, while others see limited near-term gains and prefer Nvidia. Overall, AMD is viewed as a moderate buy with a slight potential for growth.
Best Buy reported mixed Q1 fiscal 2025 results with adjusted EPS beating estimates but net sales falling short. The company saw a significant drop in sales across various categories, including appliances and consumer electronics, as consumers prioritize essentials. Despite the sales decline, profitability was better than expected due to service offerings. The company remains optimistic about AI-driven products potentially boosting future sales. Shares rose over 11% following the report.
Best Buy reported mixed Q1 fiscal 2025 results with adjusted EPS of $1.20 beating estimates but net sales of $8.85 billion falling short. US sales dropped 6.3%, led by significant declines in appliances, entertainment, and consumer electronics. Despite better-than-expected profitability, concerns about discretionary spending and competition persist. CEO Corie Barry is optimistic about AI-driven product innovation potentially boosting future sales. Shares rose over 11% following the report.
SK Hynix, the world's second-largest memory chip maker, is set to invest $3.87 billion in building an advanced packaging plant and research facility for AI products in Indiana, USA. The new plant will mass-produce next-generation high bandwidth memory (HBM) chips, used in graphic processing units for training artificial intelligence systems, and is expected to start production in the second half of 2028. The investment aims to strengthen the supply chain resilience for AI chips in the US and is part of SK Hynix's commitment to invest $15 billion in the semiconductor industry, including the creation of an advanced packaging and testing facility in the US.
Tesla expects to spend over $10 billion on next-generation vehicles, AI products, and other projects in 2024, with capital expenditure ranging from $8 billion to $10 billion for the following two fiscal years. The company is focusing on ramping new products, expanding manufacturing facilities, developing new battery cell technologies, and investing in autonomy and artificial intelligence-enabled training and products. Tesla anticipates meeting its capex needs from cash flow from operations, but warned of slower growth this year as it prioritizes its next-generation vehicle, with analysts expressing disappointment in the recent earnings call and the stock falling 26% year to date.
Ant Group has obtained approval from the Chinese government to release AI products powered by its "Bailing" large language model to the public. Unlike other countries, China requires companies to undergo security assessments and obtain clearance before launching AI products. The financial affiliate of Alibaba Group had previously introduced a finance-specific AI model and commenced testing consumer and professional apps for these products.
Meta Platforms CEO Mark Zuckerberg unveiled new AI products, including bots that create photo-realistic images and smart glasses with an AI assistant that can livestream to Facebook and Instagram. The company also introduced an updated virtual-reality headset and announced plans to build a platform for creating custom AI bots. The new products aim to integrate virtual and real worlds and offer low-cost or free AI solutions. The smart glasses will start shipping on October 17th, priced at $299.
Big Tech companies like Google, OpenAI, and Amazon have recently launched new artificial intelligence (AI) products, but these tools have already shown flaws and mistakes, indicating that they are being rushed to market before they are fully ready. The hypercompetitive race to dominate generative AI technology, which can write humanlike text and produce realistic images, has led companies to prioritize getting more users to generate data for improvement, despite the risks. Concerns range from biased and offensive statements to longer-term fears of AI surpassing human intelligence. Regulators are taking notice, with Congress holding hearings and proposing legislation, and the European Union and UK planning regulations. However, there is a need to balance regulation with innovation and beneficial tech development.
Google launched a range of new AI products at its annual I/O developer conference, including a code-generating AI and an AI music generator. However, the limitations and shortcomings of even the best AI technologies were exposed, with Google's newest large language model, PaLM 2, responding to questions in toxic and biased ways. Other notable AI news includes Meta's generative AI for ads, Anthropic's "constitutional AI" training technique, and the EU's new rules for generative AI. Additionally, new AI research centers are popping up with federal funding, including those investigating social science, climate change, and agriculture.