The torrid stock rally in Asian chipmakers is driving a divergence between China’s two internet giants, with Alibaba Group Holding Ltd. gaining an edge over rival Tencent Holdings Ltd. due to investor enthusiasm about its ambitious semiconductor unit. Shares of Alibaba, which plans to list its chipmaking arm T-Head, have rallied 11% this week, versus about 2% for Tencent that focuses more on artif...
The torrid stock rally in Asian chipmakers is driving a divergence between China’s two internet giants, with Alibaba Group Holding Ltd. gaining an edge over rival Tencent Holdings Ltd. due to investor enthusiasm about its ambitious semiconductor unit. Shares of Alibaba, which plans to list its chipmaking arm T-Head, have rallied 11% this week, versus about 2% for Tencent that focuses more on artificial intelligence models and applications. Alibaba’s outperformance comes as Asian chipmaking titans from Taiwan Semiconductor Manufacturing Co. to Samsung Electronics Co. have extended a bull run to record highs, reinforcing the hardware-driven theme of the popular AI trade. In contrast, Tencent has lagged behind, with its recent major AI model upgrade struggling to convince investors about its competitiveness in the fierce AI race. The two firms’ smaller peer Baidu Inc. , which also has a chip subsidiary, has seen its stock jump nearly 17% this week. “Investors are completely locked-in on AI beneficiaries and Tencent is not seen as one,” said Vey-Sern Ling , managing director at Union Bancaire Privee. “From chip to model to cloud, Alibaba has it all.”
Short on sleep but flush with new funds, the head of Australian data center operator NEXTDC Ltd. has a message to investors: You snooze, you lose. NEXTDC Chief Executive Officer Craig Scroggie on Thursday told a packed Macquarie Australia Conference in Sydney that he’d slept for only three hours the previous night while NEXTDC goes on a fundraising tear. Since Tuesday, the company has secured A$3....
Short on sleep but flush with new funds, the head of Australian data center operator NEXTDC Ltd. has a message to investors: You snooze, you lose. NEXTDC Chief Executive Officer Craig Scroggie on Thursday told a packed Macquarie Australia Conference in Sydney that he’d slept for only three hours the previous night while NEXTDC goes on a fundraising tear. Since Tuesday, the company has secured A$3.5 billion ($2.5 billion) in extra money, roughly split between debt commitments from banks and a sale of hybrid securities. “This is not the time to go on holiday, go to sleep, rest or do anything else,” Scroggie told the event, one of Australia’s largest gatherings of institutional investors and equity analysts. “This is the time to hit the gas and take advantage of the single most significant industrial transformation in history.” NEXTDC is raising capital to expand its network of Australian data centers, and said in April that it would undertake a A$1.5 billion ($1.1 billion) capital raising, boosting its coffers as demand for capacity at its facilities surges. It’s one of hundreds of companies worldwide racing to provide infrastructure for an artificial intelligence boom that will consume trillions of dollars. Read More: Hyperscaler AI Capex Spending Surge Headed Toward $5 Trillion Demand for data centers far exceeds supply, a dynamic that won’t change any time in the next two to three years, Scroggie told the conference. Scroggie is a software engineer turned AI evangelist. With a gray beard and flowing locks, and wearing jeans and an open black shirt, he looked far unlike the suited fund managers who filled the room. NEXTDC shares have jumped 19% this year, swelling the company’s market value to about A$11 billion. Its initial public offering in 2010 raised A$40 million. To be sure, there are lingering concerns that some privately-owned data center operators will struggle to service their debts, and that AI investments by tech giants such as Meta Platforms Inc. will f...
White House Chief of Staff Susie Wiles on Wednesday said the U.S. government would avoid picking winners and losers in artificial intelligence, underscoring the Trump administration’s market-driven approach as it prepares a new set of AI policy directives. Wiles issued the statement from her new account on X, as questions swirl about whether the administration will seek to screen new models and if...
White House Chief of Staff Susie Wiles on Wednesday said the U.S. government would avoid picking winners and losers in artificial intelligence, underscoring the Trump administration’s market-driven approach as it prepares a new set of AI policy directives. Wiles issued the statement from her new account on X, as questions swirl about whether the administration will seek to screen new models and if it will deescalate its feud with Anthropic PBC ( ANTHRO ). " This administration has one goal; ensure the best and safest tech is deployed rapidly to defeat any and all threats." Dear readers: We recognize that politics often intersects with the financial news of the day, so we invite you to click here to join the separate political discussion. More on Anthropic, Alphabet, etc. Alphabet Is Benefiting As AI-Generated Code Increases Alphabet's $460B AI Lock-In Alphabet: The $108.6 Billion Warning That Made Me Bullish Again OpenAI, Anthropic going after AI services an attempt to expand distribution ASAP: Jefferies Rivals turn partners as Anthropic inks deal to secure computing power from xAI's Colossus 1
undefined Global fertility rates are dropping sharply. World Bank data show the global total fertility rate, or TFR, fell to 2.2 in 2023 from 2.7 in 2000. Two-thirds of countries now report TFRs below 2.1, the replacement level required for stable populations. China’s TFR hit 1.0 in 2023 and is projected to slip below that threshold by 2025. Artificial intelligence threatens to accelerate this dec...
undefined Global fertility rates are dropping sharply. World Bank data show the global total fertility rate, or TFR, fell to 2.2 in 2023 from 2.7 in 2000. Two-thirds of countries now report TFRs below 2.1, the replacement level required for stable populations. China’s TFR hit 1.0 in 2023 and is projected to slip below that threshold by 2025. Artificial intelligence threatens to accelerate this decline. AI Expands the Landscape of Entertainment How AI depresses fertility
Earnings Call Insights: SolarEdge Technologies (SEDG) Q1 2026 Management view CEO Yehoshua Nir said SolarEdge is “shifting from defense to offense,” prioritizing “driving towards profitable growth, expanding global market share, scaling SolarEdge Nexis and investing in high-growth adjacencies such as AI data center power.” On near-term profitability, CEO Nir said, “At the midpoint of our guidance,...
Earnings Call Insights: SolarEdge Technologies (SEDG) Q1 2026 Management view CEO Yehoshua Nir said SolarEdge is “shifting from defense to offense,” prioritizing “driving towards profitable growth, expanding global market share, scaling SolarEdge Nexis and investing in high-growth adjacencies such as AI data center power.” On near-term profitability, CEO Nir said, “At the midpoint of our guidance, we expect to approach breakeven operating profit in the second quarter,” calling it “an important milestone in our transformation.” On demand and positioning, CEO Nir described the U.S. residential market as “a slow start this year as customers face changes in tax credit policies and uncertainty related to FEOC,” while adding, “we believe we are well positioned to benefit when the market rebound.” In U.S. commercial and industrial, CEO Nir said SolarEdge’s “products that are designed to be both domestic content and FEOC compliant” have “resulted in share gains,” and added, “We view this position as structural rather than cyclical.” In Europe, CEO Nir said the market “picked up in March, a trend that continued into April,” and that Q1 Europe revenue “reach[ed] its highest point since Q4 2023,” driven by “stronger battery demand.” On Nexis, CEO Nir said, “Our entire planned Q2 Nexis production is fully booked by European customers,” and added that Nexis helps address “larger homes which account for over 50% of the residential market in Germany.” CFO Asaf Alperovitz reported, “Non-GAAP revenues for the first quarter were $310 million,” and “Non-GAAP gross margin this quarter was slightly up to 23.5%.” CEO Nir announced a finance leadership transition: “Asaf will continue in his role through June 9,” and said, “we expect no disruption to our 2026 plan.” Outlook CFO Asaf Alperovitz guided, “We’re expecting revenues to be within the range of $325 million to $355 million,” and, “We expect non-GAAP gross margins to be within the range of 23% to 27%.” CFO Alperovitz added, “We expe...
Earnings Call Insights: Chegg, Inc. (CHGG) Q1 2026 Management View "Q1 was a strong quarter. We exceeded our expectations for revenue, profitability, free cash flow while significantly reducing debt, and we continue to optimize our cost base and capital expenditure," said "Daniel Rosensweig (Executive Chairman, President & CEO)." He framed the operating reset as structural, adding, "Our financials...
Earnings Call Insights: Chegg, Inc. (CHGG) Q1 2026 Management View "Q1 was a strong quarter. We exceeded our expectations for revenue, profitability, free cash flow while significantly reducing debt, and we continue to optimize our cost base and capital expenditure," said "Daniel Rosensweig (Executive Chairman, President & CEO)." He framed the operating reset as structural, adding, "Our financials, our corporate structure, our product experience are all optimized around AI and the results are showing." Rosensweig tied the growth narrative to Chegg Skilling and enterprise distribution, saying, "We continue to expect double-digit revenue growth in skilling for the full year 2026 with acceleration as the year progresses." He highlighted a new enterprise channel, noting, "Notably, we recently signed a partnership with Cornerstone, a leading learning and talent management platform. This is expected to open up a meaningful enterprise distribution channel for Chegg Skills and connect us with customers at scale." Rosensweig emphasized credential expansion and product direction: "for the first time, we are expanding our skilling platform through accredited offerings" and "with Woolf... we are launching our first AI master's program, combining applied learning with recognized credentials." He also described language learning moving "beyond structured lessons towards real-time in-workflow coaching." "David Longo (CFO, Principal Financial & Accounting Officer, Treasurer & Corporate Secretary)" linked the quarter to execution and profitability, stating, "we delivered a strong first quarter, which exceeded expectations" and "Our strategic focus on the large and growing skilling market positions us for long-term sustainable growth with strong margins." Outlook Longo guided Q2 Chegg Skilling revenue to "$17.5 million to $18 million" and total revenue to "between $49 million and $50 million," with "gross margins in the range of 51% to 52%" and "adjusted EBITDA between $5 million and...
Earnings Call Insights: H&R Block (HRB) Q3 fiscal 2026 Management View "This quarter, we delivered strong results ahead of expectations across all key metrics." (CEO, President & Director Curtis Campbell) "Based on our year-to-date performance, we are raising our full year outlook." (CEO Campbell) "A key question surrounding H&R Block's performance has been when we stabilize assisted channel marke...
Earnings Call Insights: H&R Block (HRB) Q3 fiscal 2026 Management View "This quarter, we delivered strong results ahead of expectations across all key metrics." (CEO, President & Director Curtis Campbell) "Based on our year-to-date performance, we are raising our full year outlook." (CEO Campbell) "A key question surrounding H&R Block's performance has been when we stabilize assisted channel market share. Well, this season, we did." (CEO Campbell) "After 2 years of improving share trends, that progress translated into meaningful inflection in tax season '26, as we maintained assisted share, holding our position in a highly competitive environment." (CEO Campbell) "I'm pleased to share that new clients who received Second Look last tax season returned at a 600-plus basis point higher rate compared to new clients who did not receive Second Look." (CEO Campbell) "Coming out of the season, we saw a 550 basis point increase in product attach." (CEO Campbell) "This year, we rolled out Sidekick, our AI-enabled tax pro assistant." (CEO Campbell) "AI Tax Assist supported 4.1 million client messages and responses, representing an 88% increase year-over-year." (CEO Campbell) "In the third quarter, we delivered revenue of $2.4 billion, an increase of 5.3% over the prior year." (Chief Financial Officer Tiffany Mason) "Based on our year-to-date results, including a strong tax season, we have raised our full year outlook." (CFO Mason) Outlook "We now expect revenue in the range of $3.91 billion to $3.92 billion; EBITDA in the range of $1.025 billion to $1.035 billion; an effective tax rate of approximately 14%; and adjusted diluted earnings per share in the range of $5.10 to $5.20." (CFO Mason) "We've also incorporated full season results, peak period labor costs and a planned shift in marketing expense that aligns with later season filing dynamics." (CFO Mason) "Extensions are up." (CFO Mason) "No changes, Alex. We're committed to the long-term growth algorithm." (CFO Mason) Fina...