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An Amazon Web Services data center in Stone Ridge, Virginia, US, on Sunday, July 28, 2024. 

Nathan Howard | Bloomberg | Getty Images

This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

What you need to know today

Falling from highs
U.S. stocks mostly fell Wednesday. The
S&P 500 lost 0.19% and the Dow Jones Industrial Average slipped 0.7%, after scaling record highs earlier in the session. The Nasdaq Composite closed near the flatline. Europe’s regional Stoxx 600 index retreated 0.11%. The Stoxx Europe 600 Bank Index fell 0.73% as investors monitored UniCredit’s potential merger with Commerzbank.

Google vs. Microsoft
Google on Wednesday filed an antitrust complaint with the European Commission, the executive arm of the European Union, over Microsoft’s practices in the cloud computing industry. Google alleged that Microsoft employs unfair licensing contracts to “lock in” clients and exert control over the cloud market.

Done selling Nvidia
Nvidia CEO Jensen Huang is done selling the company’s stock for now. In March, Huang set out a plan to sell up to six million Nvidia shares by first quarter of 2025. He has hit that threshold ahead of schedule. Separately, AI chips like those Nvidia manufactures could face a global shortage as demand ramps up, according to a Bain & Company report.

Turning VR into reality
Meta took another step in making virtual reality part of our everyday life. The company’s Reality Labs division announced the Quest 3S, its latest VR headset, which starts at $299 and goes on sale Oct. 15. Meta also showed off a prototype of augmented reality glasses called Orion. 

[PRO] It’s time for you to buy
That little green birdDuolingo’s logo — can seem a tad annoying when it reminds you for the hundredth time to practice your Japanese, but analysts are taking a shine to it. Duolingo, among other stocks like Hewlett Packard Enterprise and Roblox, is one of the names on the “buy” list of Wall Street banks. 

The bottom line

The initial frenzy in generative artificial intelligence was triggered when OpenAI released ChatGPT in 2022. Institutions poured billions into OpenAI.

While OpenAI, the company behind ChatGPT, is not listed publicly, several companies have gained immensely from the generative AI boom that it sparked. 

(Speaking of OpenAI, the company’s CTO Mira Murati announced Wednesday she’s leaving the company. OpenAI is also planning to restructure to a for-profit business.)

Nvidia was the first beneficiary of gen AI. Its stock rocketed in 2023, a year after ChatGPT was released, when it became clear the semiconductor company’s chips were the brains behind chatbots.

Then Big Tech companies jumped on the bandwagon. Microsoft, Meta and Google-parent Alphabet released their own versions of chatbots and gen-AI-infused tools. Those features helped bump up share prices, though of course it’s difficult to attribute a single cause to stock movement.

It seems the tailwinds of AI are starting to propel a third wave of AI-adjacent companies forward.

If chips are the brains of AI, then data centers are its body. Hewlett Packard Enterprise rose more than 5% after Barclays upgraded the company on strong AI data center demand. And recall Oracle’s surge this year, driven mainly by the company’s AI cloud services powered by its data centers.

Next in line to be juiced by AI appear to be energy companies.

Oracle’s founder Larry Ellison said a new data center that the company is designing “will rely on three modular nuclear reactors.”

Vistra Corp, a power company based in Texas, jumped almost 6% on expectations the company will power an AI data center with one of its nuclear plants. Likewise, Constellation Energy popped about 22% Friday after it announced plans to restart a nuclear plant and sell the power to Microsoft.

All that is to say: The AI wave will continue rippling throughout the ocean for some time. Big Tech or semiconductors are juicy catches, but a wider net might reel in other prizes.

 – CNBC’s Kif Leswing, Jonathan Vanian, Jordan Novet, Brian Evans and Jesse Pound contributed to this story. 

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What EV sales slump? Illinois’ EV sales outpace the nation by 4:1

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What EV sales slump? Illinois' EV sales outpace the nation by 4:1

Fueled by incentives from the Illinois EPA and the state’s largest utility company, new EV registrations nearly quadrupled the 12% first-quarter increase in EV registrations nationally – and there are no signs the state is slowing down.

Despite the dramatic slowdown of Tesla’s US deliveries, sales of electric vehicles overall have perked up in recent months, with Illinois’ EV adoption rate well above the Q1 uptick nationally. Crain’s Chicago Business reports that the number of new EVs registered across the state totaled 9,821 January through March, compared with “just” 6,535 EVs registered in the state during the same period in 2024.

Those numbers represent more than 50% growth in EV registrations – far beyond the expected 12% first-quarter increase nationally being projected by Cox Automotive. (!)

What’s going on in Illinois?

File:Illinois Governor J. B. Pritzker (33167937268).jpg
Illinois Governor JB Pritzker at the Chicago Auto Show; by Ray Cunningham.

While President Trump and Elmo were running for re-election, they campaigned on the threat promise of canceling the $7,500 federal tax credit for EVs. Along with California Governor Gavin Newsom, Illinois’ Governor JB Pritzker made countermoves – launching a $4,000 rebate for new electric cars and up to $1,500 for the purchase of a new electric motorcycle.

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At the same time, the state’s largest utility, ComEd, launched a $90 million EV incentive program featuring a new Point of Purchase initiative to deliver instant discounts to qualifying business and public sector customers who make the switch to electric vehicles. That program has driven a surge in Class 3-6 medium duty commercial EVs, which are eligible fro $20-30,000 in utility rebates on top of federal tax credits and other incentives (Class 1-2 EVs are eligible for up to $7,500).

We covered the launch of those incentives when the program was announced at Chicago Drives Electric last year, but the message here is simple: incentives work.

SOURCES: Chicago Business, Ray Cunningham; featured image by the author.

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XCMG launches XE215EV battery swap electric excavator ahead of bauma

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XCMG launches XE215EV battery swap electric excavator ahead of bauma

The electric construction equipment experts at XCMG just released a new, 25 ton electric crawler excavator ahead of bauma 2025 – and they have their eye on the global urban construction, mine operations, and logistical material handling markets.

Powered by a high-capacity 400 kWh lithium iron phosphate battery capable of delivering up to 8 hours of continuous operation, the XE215EV electric excavator promises uninterrupted operation at a lower cost of ownership and with even less downtime than its diesel counterparts.

XCMG is delivering on part of that reduced downtime promise with the lower maintenance and easier repair needs of electric equipment, and delivering on the rest of it with lickety-quick DC fast charging that can recharge the machine’s massive battery in 1.5-2 hours … but that’s not the slick bit. The XCMG XE125EV can be powered up without leaving the job site thanks to its BYD battery swap technology.

We first covered XCMG and its battery swap technology back in January, and covered similar battery-swap tech being developed by MOOG Construction offshoot ZQUIP, as well – but while XCMG’s battery tech has been in production for several years, it’s still not widely known about in the West (even within the industry).

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XCMG showed off its latest electric equipment at the December 2024 bauma China, including an updated version of its of its 85-ton autonomous electric mining truck that features a fully cab-less design – meaning there isn’t even a place for an operator to sit, let alone operate. And that’s too bad, because what operator wouldn’t want to experience an electric truck putting down 1070 hp more than 16,000 lb-ft of torque!?

Easy in, easy out

XCMG battery swap crane; via Etrucks New Zealand.

The best part? All of the company’s heavy equipment assets – from excavators to terminal tractors to dump trucks and wheel loaders – all use the same 400 kWh BYD battery packs, Milwaukee tool style. That means an equipment fleet can utilize x number of vehicles with a fraction of the total battery capacity and material needs of other asset brands. That’s not just a smart use of limited materials, it’s a smarter use of energy.

You can check out all the XE215EV’s specs at this tear sheet, and get an in-person look at the Chinese company’s latest electric excavator this week in Munich, Germany.

SOURCE | IMAGES: XCMG.

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Volvo shows off production PU500 battery energy storage system

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Volvo shows off production PU500 battery energy storage system

As “extreme” weather events become more commonplace, the demand for reliable and portable energy continues to rise. In response to that growing demand for dependable off-grid power, Volvo has developed the new PU500 Battery Energy Storage System (BESS) designed to take electrical power when it’s needed most.

Designed to be deployable in a number of environments at a moment’s notice, the Volvo Energy PU500 BESS is equipped with approximately 500 kWh of usable battery capacity (up to 540 kWh total). More than enough juice, in other words, to power a remote construction site, disaster response effort, or even a music festival – anything that needs access to reliable electricity beyond a grid connection.

That’s great, but what sets the PU500 apart from other battery storage solutions is its integrated 240 kW DC fast charger.

“With an integrated CCS2 charger, the PU500 is designed to work with all brands of electric equipment, trucks, and passenger cars,” says Niklas Thulin, Head of BESS Product Offer at Volvo Energy. “This ensures that no matter what type of electric vehicle or machinery you rely on, the PU500 can provide the power you need, making it a truly flexible solution for any grid constrained site or location.”

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The integrated charger in the PU500 has the impressive ability to charge a heavy equipment asset (be that an electric semi truck or something like a wheel loader) in under two hours. Its on-board capacity allows to fully recharge up to 3 electric HD trucks or 20 electric cars per day, making it an incredibly versatile disaster response asset.

Electrek’s Take

Stockholm progresses with electric construction site from Volvo CE
Electric job site; via Volvo CE.

As we often say over at The Heavy Equipment Podcast, “just because you’re working for the power company doesn’t mean you have power,” and there are hundreds of scenarios where the extra power provided by something like the new PU500 would be useful. Its ability to be palletized and easily moved or swapped out of a larger BESS array, too, just add to its flexibility.

SOURCE | IMAGES: Volvo.

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