Elon Musk on stage before Republican presidential nominee former President Donald Trump speaks at a rally at Madison Square Garden in New York, NY on Sunday, October 27, 2024.
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Shares of Tesla climbed more than 6% in midmorning trading Friday, pushing the electric vehicle maker’s market cap past $1 trillion.
The company’s stock has rallied about 27% this week after Donald Trump won the U.S. presidential election and investors have grown optimistic that the former leader’s return to the White House could benefit Tesla. Elon Musk, Tesla’s CEO, has been a key ally for Trump throughout his campaign, pouring at least $130 million into a pro-Trump campaign effort.
Tesla had a market cap of $807.1 billion through Tuesday’s close. Before this week’s rally, shares of the carmaker were up about 1% for the year. Tesla’s stock is now up about 27% year to date.
Tesla market cap
CNBC
Tesla rejoins a growing club of tech names that are now worth more than $1 trillion, including Nvidia, Apple, Microsoft, Alphabet, Amazon and Meta (though all but Meta are worth more than $2 trillion). Tesla’s market cap first crossed the $1 trillion mark in October 2021.
Wedbush Securities analyst Dan Ives has said that a potential Trump administration could spell less regulation for Tesla and other companies.
“Tesla has the scale and scope that is unmatched in the EV industry and this dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players (BYD, Nio, etc.) from flooding the U.S. market over the coming years,” Ives wrote in a note to clients this week.
Trump has said previously he may cut the federal $7,500 electric vehicle tax credit. Those credits have helped to drive sales of Tesla vehicles historically.
In its most recent earnings update, Teslareported revenue of $25.18 billion and net income of $2.17 billion in the third quarter.
CEO Musk said on the earnings call that his “best guess” was that “vehicle growth” would reach 20% to 30% next year, due to “lower cost vehicles” and the “advent of autonomy.”
Tesla has been promising, and developing, driverless vehicle technology for more than a decade. Its key U.S. competitor, Alphabet-owned Waymo, has pulled ahead and is already operating commercial robotaxi services in several major cities.
On the third-quarter call, Musk said he would use his sway with a Trump-Vance administration to establish a “federal approval process for autonomous vehicles.” Currently, approvals happen at the state level, which the CEO sees as a regulatory hurdle Tesla will need to overcome once it finally offers more than partially automated driving systems.
— CNBC’s Lora Kolodny contributed to this report.
Correction: This story has been updated to correct the year Tesla’s market cap crossed $1 trillion for the first time. Tesla’s net income was $2.17 billion in the third quarter. An earlier version misstated the figure.
In this photo illustration, the OpenAI logo is displayed on a mobile phone screen with a photo of Sam Altman, CEO of OpenAI.
Didem Mente | Anadolu | Getty Images
OpenAI estimates that ChatGPT rejected more than 250,000 requests to generate images of the 2024 U.S. presidential candidates in the lead up to Election Day, the company said in a blog on Friday.
The rejections included image-generation requests involving President-elect Donald Trump, Vice President Kamala Harris, President Joe Biden, Minnesota Gov. Tim Walz and Vice President-elect JD Vance, OpenAI said.
The rise of generative artificial intelligence has led to concerns about how misinformation created using the technology could affect the numerous elections taking place around the world in 2024.
The number of deepfakes has increased 900% year over year, according to data from Clarity, a machine learning firm. Some included videos that were created or paid for by Russians seeking to disrupt the U.S. elections, U.S. intelligence officials say.
In a 54-page October report, OpenAI said it had disrupted “more than 20 operations and deceptive networks from around the world that attempted to use our models.” The threats ranged from AI-generated website articles to social media posts by fake accounts, the company wrote. None of the election-related operations were able to attract “viral engagement,” the report noted.
In its Friday blog, OpenAI said it hadn’t seen any evidence that covert operations aiming to influence the outcome of the U.S. election using the company’s products were able to successfully go viral or build “sustained audiences.”
Lawmakers have been particularly concerned about misinformation in the age of generative AI, which took off in late 2022 with the launch of ChatGPT. Large language models are still new and routinely spit out inaccurate and unreliable information.
“Voters categorically should not look to AI chatbots for information about voting or the election — there are far too many concerns about accuracy and completeness,” Alexandra Reeve Givens, CEO of the Center for Democracy & Technology, told CNBC last week.
Sony raised sales guidance for the full year Thursday and posted operating profit that smashed analyst expectations after a strong quarter for its gaming business.
Here’s how the company did in the September quarter, versus LSEG consensus estimates:
Revenue: 2.97 trillion Japanese yen ($19.4 billion), versus 3.03 trillion yen expected. That was up 9% and slightly below analyst expectations.
Operating profit: 445.1 billion yen ($2.91 billion), versus 336.07 billion yen expected. That’s up 73% year-over-year and beats expectations.
The Japanese tech giant revised its fiscal year 2025 revenue target up slightly to 12.7 trillion yen. It previously targeted 12.6 billion yen of sales. Sony also expects full-year operating profit of 1.3 trillion yen, in line with its previous forecast.
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That came as Sony saw strength in its game and network services division, which houses its popular PlayStation home console brand. Game and network services revenue at the company came in at 1 trillion yen, up 11% year-over-year.
Sony’s gaming division has held up well thanks to a shift to digital game purchases and the PlayStation Plus subscription service. However, hardware shipments have proven lackluster amid a weak console market beset by a lack of hyped up triple-A games.
Analysts expect things to improve next year for the gaming sector, though — not least thanks to the anticipated launch of a next-generation Nintendo Switch model and the release of Grand Theft Auto VI.
Sony said it sold 3.8 million PlayStation 5 units for the September quarter, down 22% year-over-year. Still, the firm saw a 28% jump in game software sales for the three-month period, to 612.3 million yen.
On Thursday, Sony launched its upgraded PlayStation 5 Pro console, touting a better graphics card allowing for faster gameplay rendering and new artificial intelligence capabilities to upscale graphics with sharper image clarity.
Analysts hope that the launch will boost interest in the PS5 with a souped-up piece of hardware ready for release of GTA VI, one of this decade’s most hotly anticipated games.
Correction: This story has been updated to reflect that operating income jumped 73% year-over-year in the September quarter.
A Samsung Electronics Co. 12-layer HBM3E, top, and other DDR modules arranged in Seoul, South Korea, on Thursday, April 4, 2024.
SeongJoon Cho | Bloomberg | Getty Images
Samsung Electronics was once the dominant player in a type of semiconductor known as memory, putting it in a great position to capitalize on the boom of artificial intelligence.
But the South Korea electronics giant has now fallen behind its long-time rival SK Hynix in next-generation chips that have been key component for AI silicon leader Nvidia. The result? Samsung’s profit has plunged, around $126 billion has been wiped off its market value, according to data from S&P Capital IQ, and an executive issued a rare public apology about the company’s recent financial performance.
Memory is a critical type of chip used to store data, and it can be found in a plethora of devices from smartphones to laptops. For years, Samsung was the undeniable leader in this technology, ahead of South Korean rival SK Hynix and U.S. competitor Micron.
But as AI applications such as OpenAI’s ChatGPT rose in popularity, the underlying infrastructure required to train the huge models they rely on became a bigger focus. Nvidia has emerged as the top player in this space with its graphics processing units (GPUs) that have become the gold standard used by tech giants for AI training.
A crucial part of that semiconductor architecture is high-bandwidth memory, or HBM. This next generation of memory involves stacking multiple dynamic random access memory (DRAM) chips, but it had a small market before the AI boom.
That’s where Samsung got caught out and failed to invest.
“HBM has been a very niche product … for a long time and Samsung has not focused its resources on its development,” Kazunori Ito, director of equity research at Morningstar, told CNBC by email.
“Due to the difficulty of the technology involved in stacking DRAMs and the small size of the addressable market, it was believed that the high development costs were not justified.”
SK Hynix saw this opportunity. The company aggressively launched HBM chips which were approved for use in Nvidia architecture and, in the process, the South Korean firm established a close relationship with the U.S. giant. Nvidia’s CEO even asked the company to speed up supply of its next generation chip, underscoring the importance of HBM to its products.
“With strong R&D (research and development) investments and established industry partnerships, SK Hynix maintains an edge in both HBM innovation and market penetration,” Brady Wang, associated director at Counterpoint Research, told CNBC by email.
Samsung told CNBC that, in the third quarter, total HBM sales grew more than 70% quarter-on-quarter. The tech giant added that the current product known as HBM3E is in mass production and generating sales.
The South Korean tech company noted that development for its next-generation HBM4 is “underway according to plan” and that the company is targeting starting “mass production” in the second half of 2025.
Can Samsung make a comeback?
Analysts said that Samsung is lagging behind competitors for a number of reasons, including underinvestment in HBM and the fact that it is not a first-mover.
“It is fair to say that Samsung has not been able to close the gap with SK Hynix on the HBM development roadmap,” Morningstar’s Ito said.
Samsung’s ability to make a comeback in the short term appears to be closely linked to Nvidia.
A company must pass a strict qualification process before Nvidia approves it as a HBM supplier — and Samsung has not yet completed this verification. But a green light from Nvidia could open the door for Samsung to return to growth and compete more effectively with SK Hynix, according to analysts.
“Since NVIDIA holds more than 90% of the AI chip market, where most HBMs are used, NVIDIA’s approval is critical for Samsung to benefit from the robust demand for AI servers,” Ito said.
A Samsung spokesperson said that the company has made “meaning progress” regarding HBM3E and has “completed an important phase in the qualification process.”
“We expect to start expanding sales in the fourth quarter,” the spokesperson said.
Meanwhile, Wang noted that Samsung’s strength in research and development, as well as the company’s semiconductor manufacturing capacity that could help it catch up to SK Hynix.