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This article explores how Big Tech companies, including Google, Amazon, Meta, and OpenAI, are increasingly developing custom AI chips, challenging Nvidia's dominance in the AI chip market. These custom chips, often designed in partnership with firms like Broadcom, are cheaper and better optimized for specific software, reducing costs for internal AI workloads and cloud customers. Google, a pioneer with its TPUs, has begun selling chips externally, directly competing with Nvidia, while others like Microsoft and Amazon are at varying stages of development. Analysts predict custom chips could account for 45% of the market by 2028, up from 37% in 2024, potentially impacting Nvidia's high profit margins. However, the rapidly growing AI market may accommodate both Nvidia and its competitors, with Nvidia's extensive investments and ecosystem support ensuring continued growth, albeit at a slower rate. Challenges in custom silicon development mean not all tech giants may succeed, tempering the threat to Nvidia. CEO Jensen Huang remains confident, emphasizing Nvidia's comprehensive AI infrastructure solutions beyond individual chips.
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This article explores China's adoption of U.S.-style trade policies to counter American economic pressures amid an escalating trade war between the world's two largest economies. Beijing has introduced export controls on rare earths, requiring foreign firms to seek approval for exporting products containing Chinese materials or technology, significantly impacting global tech supply chains. Since 2018, and especially under recent U.S. tariffs initiated by President Trump, China has mirrored U.S. strategies like the foreign direct product rule with tools such as the Unreliable Entity List and anti-foreign sanction laws. These measures, including blacklisting U.S. companies and imposing export controls on critical elements, aim to retaliate against U.S. actions like high tariffs over issues such as fentanyl. While China's approach allows it to challenge Washington directly, experts caution that what Beijing views as reciprocity might be perceived as escalation, risking a downward spiral in relations. This tit-for-tat dynamic, fueled by both nations' expansive views of national security, underscores the complexities and dangers of the ongoing trade conflict.
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Bitcoin mining companies are outpacing Bitcoin's performance in 2025, with a fund tracking these firms surging over 150% year-to-date, despite Bitcoin's 14% gain and near-record highs. This success stems from a strategic pivot to artificial intelligence (AI) and high-performance computing (HPC), as miners like Cipher Mining Inc. and IREN Ltd. see share prices soar by 300% and 500%, respectively, through major AI infrastructure deals. Cipher’s $3 billion colocation agreement with Fluidstack and IREN’s $1 billion convertible notes offering highlight this shift. Bitdeer Technologies also plans to convert mining sites into AI data centers, projecting significant revenue by 2026. This transition is driven by declining mining profitability post the 2023 Bitcoin halving, which cut rewards and squeezed margins amid rising network difficulty and low hashprice. Investors now prioritize miners for their AI/HPC potential, where revenue per megawatt and margins far exceed traditional mining, leading to higher market valuations. Analysts note a focus on energy efficiency over expanding Bitcoin hashrate, with firms like Riot Platforms pausing growth to adapt to this new "energy economy." This marks a transformative phase where crypto mining and computing converge, redefining these companies as tech infrastructure providers rather than just Bitcoin miners.
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Steinway & Sons, a 150-year-old piano manufacturer based in Queens, New York, stands as a rare success in US manufacturing amidst challenges like high costs and trade wars. Employing around 200 skilled craftsmen, including 30-year veteran Bernard Craddock, the company handcrafts world-class pianos priced between $90,000 and $200,000. Unlike mass producers, Steinway focuses on quality and innovation, using domestically sourced materials to mitigate tariff impacts from policies like those under President Trump. This approach allows them to maintain premium pricing for high-end markets, such as concert performers. Despite broader US manufacturing job losses (42,000 since April) due to tariff uncertainties, Steinway remains unaffected, taking 11 months to build each piano with meticulous care. Challenges persist, including potential shortages of Sitka spruce from Alaska and the need for specialized labor, but CEO Ben Steiner emphasizes the irreplaceable skills of their workforce as a reason to stay in Astoria. Steinway’s legacy and commitment to craftsmanship, dating back to 1873 with only brief pauses during the Great Depression and World War II, ensure its continued operation in New York City, defying trends of outsourcing and automation that have reshaped American manufacturing.
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This year’s fall housing market has failed to rebound from its ongoing slump, despite mortgage rates stabilizing at around 6.3%, near 11-month lows, and anticipation of Federal Reserve rate cuts. While inventory is rising as sellers test the market, high home prices and rates continue to deter buyers, creating a persistent stalemate. Experts note that the slight drop in rates hasn’t significantly improved affordability, with Zillow estimating rates would need to fall to 4.43% for median-income families to afford a typical U.S. home. Cancellation rates for home sales are high, with 15% of August contracts falling through, and buyers in various regions are gaining some leverage as inventory grows and price cuts increase. However, many discretionary buyers are playing a waiting game, hoping for better conditions in spring, while sellers with low existing mortgage rates often hold firm on prices or pull listings if unmet. Real estate professionals across markets like San Antonio, Boston suburbs, and Northeast Ohio report slow sales, climbing inventory, and cautious buyers strained by affordability challenges, despite some regional price appreciation. The market remains in a state of pent-up supply and demand, with potential for shifts if prices plateau or rates drop further.
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Chinese exporters are pivoting away from the U.S. market amid unpredictable tariff policies and trade disputes, focusing instead on regions like Europe, Latin America, the Middle East, and Africa. Despite a significant drop in U.S.-bound goods, China's exports grew by 7.1% to 19.95 trillion yuan ($2.80 trillion) in the first nine months of the year, showcasing economic resilience ahead of third-quarter GDP data. Manufacturers like Jacky Ren of Gstar Electronics have abandoned the U.S. market, exhausted by tariff volatility, while others, like Halloween decoration maker Lou Xiaobo, report halved revenues due to insufficient global demand to replace U.S. orders. At the Canton Fair in Guangzhou, no U.S. buyers were present among surveyed companies, with increased interest from other regions. However, intensified competition in new markets has driven down prices, forcing some exporters to sell at a loss. Many, including Cherry Yuan of Foshan Greenyellow Electric Technology, express frustration with the instability of U.S. trade relations, while Cai Jing of a travel mug company notes that U.S. buyers, not exporters, have initiated the market withdrawal. This shift highlights both the adaptability and the challenges facing China's export sector in a turbulent global trade environment.
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Yahoo Finance offers a suite of newsletters designed to keep subscribers informed about financial markets, economic trends, and personal finance. The flagship Morning Brief arrives daily at 6 a.m. ET, providing a key Takeaway column on market or economic themes, alongside updates on what to watch, read, and key economic and corporate events. Other offerings include Breaking News alerts for significant updates on stocks and the US economy, and Week In Tech, a weekly newsletter covering tech sector trends like AI and robotics. For personal finance, Mind Your Money delivers weekly tips and strategies for smarter money management. Lastly, Daily Movers provides a personalized weekday recap at the closing bell, featuring news and portfolio performance highlights. Each newsletter caters to different interests, ensuring subscribers stay updated on critical financial and business developments.
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The rapid expansion of data centers by Big Tech to support AI growth is meeting resistance from local communities concerned about environmental and social impacts. With global spending on data centers projected to nearly double from $493 billion in 2025 to $920 billion by 2028, issues like soaring electricity costs, water consumption, and infrastructure strain are escalating. Critics highlight risks of blackouts and dry taps, while economic benefits like jobs and tax revenue are often overstated. Across 24 states, 142 activist groups have stalled $64 billion in projects since early 2023, employing tactics from lawsuits to grassroots campaigns. In Virginia, Elena Schlossberg’s coalition has led significant battles, achieving partial victories against projects by Amazon and Blackstone. Similar efforts in Georgia and elsewhere show mixed results, with some communities blindsided by nondisclosure agreements and zoning changes. State legislative attempts to regulate the industry largely fail, leaving locals to fend for themselves. While Big Tech touts economic gains, the fight against data centers reveals a broader struggle over community rights versus technological progress, with activists slowing—but not stopping—the AI-driven expansion.
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Credit investors are heavily funding artificial intelligence infrastructure, with billions poured into projects like Vantage Data Centers’ $22 billion loan and Meta Platforms’ $29 billion data center in Louisiana. However, industry leaders like OpenAI’s Sam Altman warn of an AI investment bubble akin to the dot-com era, predicting potential losses for investors. A MIT report underscores this concern, revealing that 95% of generative AI corporate projects fail to generate profit. Initially self-funded by tech giants like Google and Meta, AI development now relies increasingly on bond investors and private credit markets, with the latter contributing around $50 billion quarterly. Analysts express unease about the sustainability of these investments, drawing parallels to the telecom overborrowing of the early 2000s. Funding comes through diverse channels, including corporate debt, commercial mortgage-backed securities (up 30% to $15.6 billion), and payment-in-kind loans, indicating rising financial stress. Long-term funding for unproven technologies raises questions about future cash flows, with experts cautious about the lack of historical data to predict AI’s financial viability. Despite these risks, the influx of capital from direct lenders continues unabated, driven by the massive capital needs of AI hyperscalers, positioning them as the next major infrastructure asset class.
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The US and EU finalized a trade framework on Thursday, following a July 27 agreement, imposing a 15% US tariff on most EU imports such as autos and pharmaceuticals, but excluding wine and spirits. The EU pledged to remove tariffs on US industrial goods and enhance access for US seafood and agricultural products. Meanwhile, US Treasury Secretary Scott Bessent indicated contentment with current China tariffs, projecting revenues to exceed $300 billion, aimed at reducing federal debt. S&P Global Ratings affirmed the US's AA+ credit rating, citing tariff revenues as a buffer against fiscal strain from Trump's tax and spending policies, though economic outcomes are uncertain. The impact of tariffs on consumers remains gradual, with companies like Walmart noting rising costs in inventory but minimal shifts in consumer behavior so far. Additionally, Trump's broader tariff policies, including reciprocal tariffs on various trade partners, continue to influence markets and trade relations, with key negotiations pending with Canada, Mexico, and China. The slow emergence of tariff-related inflation, hidden in global supply chains, adds complexity to predicting economic effects, as importers adjust sourcing to mitigate costs.
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Federal Reserve Chair Jerome Powell’s upcoming speech at Jackson Hole is highly anticipated as investors seek clues about a potential interest rate cut next month. Beyond short-term policy signals, Powell is expected to unveil major revisions to the Fed’s policy framework, which guides its dual mandate of stable prices and maximum employment. A key change likely involves abandoning average inflation targeting—a pre-pandemic strategy allowing inflation to exceed 2% to offset past shortfalls—due to recent inflation surges and their impact on consumer sentiment. Instead, the Fed may adopt a strict 2% target. Critics, including economists and hedge fund leaders, argue that the 2020 framework contributed to delayed rate hikes during post-pandemic inflation, necessitating a more proactive approach. Powell’s speech may also address supply shocks, inflation volatility, and enhanced communication, potentially updating the Fed’s economic projections like the “dot plot.” These changes, part of a five-year policy review cycle, could shape monetary policy for years beyond Powell’s tenure, which ends in May next year, cementing his legacy at the central bank.
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Intel (INTC) saw a nearly 7% stock increase following SoftBank Group's $2 billion investment announcement, alongside reports of the Trump administration potentially converting $10.9 billion in CHIPS Act grants into an equity stake to support Intel’s US manufacturing. Once an industry leader, Intel is grappling with severe challenges, including cash-bleeding manufacturing operations, loss of market share to rivals like AMD and Nvidia, especially in AI chips, and a market cap drop to $111 billion from over twice that in 2021. Under new CEO Lip-Bu Tan, the company has cut 15% of its workforce and delayed European plant expansions. Despite its Foundry business struggles and delays in new technology rollouts like the 18A node, Intel remains geopolitically significant as the only major US-based advanced chip manufacturer. However, analysts express doubt over whether these investments will suffice, with some estimating a need for up to $40 billion for next-gen tech. While short-term government involvement could position Intel favorably, long-term entanglement risks inefficiencies and stifled innovation, prompting hopes for eventual government divestment if Intel regains stability.
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When the Federal Reserve cut interest rates last fall, mortgage rates unexpectedly increased, and a similar pattern might emerge with anticipated cuts in September. Currently at 6.58%, the lowest since October 2024, mortgage rates already reflect market expectations of Fed actions, as per CME FedWatch’s 85% probability of a cut. Unlike debt tied to the prime rate, mortgage rates are driven by 10-year Treasury yields and other market factors like inflation expectations and bond demand, making their response to Fed moves indirect and unpredictable. Upcoming economic data on hiring and inflation could cause rate swings before the Fed’s September 16-17 meeting. Mortgage professionals express frustration as clients delay decisions, hoping for further drops, often missing out on savings. Experts like Chen Zhao from Redfin warn that waiting might be futile amid expected volatility, while loan officers advise focusing on affordability rather than timing the market. With rates having peaked over 7% in May, buyers now have more purchasing power, yet the unpredictability of rates remains a key challenge, as highlighted by industry voices who stress there’s no “crystal ball” for forecasting rate movements.
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This Yahoo Finance Morning Brief article by Hamza Shaban discusses the current state of the US economy amidst mixed signals from recent data. Inflation shows modest consumer pressures but higher producer costs, while labor data indicates low firings yet minimal hiring. July retail sales grew for two consecutive months, though slightly below expectations, reflecting consumer recovery after a spring spending drop. Despite a slowing economy, there’s resilience, with sentiment and sales stabilizing post earlier tariff fears. However, July jobs numbers disappointed with fewer additions and a rising unemployment rate, worsened by past revisions. Inflation’s mixed signals haven’t deterred expectations of Federal Reserve rate cuts this fall. Consumer sentiment soured in August over inflation fears, though not to earlier crisis levels. Economists warn of future challenges from tariffs, predicting a drag on demand as costs eventually reach consumers. Meanwhile, markets remain optimistic, focusing on rate cuts and downplaying tariff impacts, with major indices like the S&P 500 and Nasdaq hitting records, and the Dow nearing one. The article underscores a twitchy yet leveling economy, navigating shocks and recoveries in an orderly fashion, though regular maintenance via policy adjustments is needed.
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This article discusses a significant development for Nvidia (NVDA) and AMD, as President Trump announced that the US government will take 15% of their sales revenue from China, a deal negotiated down from 20% by Nvidia CEO Jensen Huang. Despite China discouraging the use of Nvidia chips, demand remains strong, though local competitors are gaining ground. Access to China is vital for Nvidia's long-term strategy, given its entrenched CUDA software ecosystem, which discourages developers from switching to rivals. However, US restrictions on chip capabilities could push Chinese developers toward local alternatives like Huawei, raising national security concerns if the US market is excluded. Financially, Nvidia faces an $8 billion Q2 earnings hit from prior H20 chip bans, with the new 15% fee likely to be passed to customers and not reflected until Q3 or Q4. Trump is also considering allowing a downgraded Blackwell chip for China, potentially boosting future revenue. Analysts highlight Nvidia's ecosystem advantage but warn of risks if US policies hinder scalability, potentially splitting the global AI market between US and Chinese firms.
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US President Donald Trump met with Russian President Vladimir Putin in Anchorage, Alaska, on August 15, for a highly anticipated summit aimed at addressing Russia’s war in Ukraine. Trump described the discussions as "extremely productive," though no concrete agreement was finalized. In a subsequent Fox News interview, he highlighted unresolved "significant items" but remained optimistic about reaching a deal, placing pressure on Ukrainian President Volodymyr Zelenskiy to resolve the conflict and urging European involvement. Despite the extended face-to-face meeting—the longest between the two leaders—both refrained from sharing specifics, raising concerns in European capitals and Kyiv about potential agreements sidelining their input. Trump also expressed interest in mediating a future meeting between Putin and Zelenskiy to save lives. Meanwhile, critics and analysts noted a lack of substance in the summit’s outcomes, with some suggesting Putin gained an advantage by securing a meeting on US soil without concessions like a ceasefire. European allies remain anxious about territorial deals without Kyiv’s consent, while Putin aims to reset US-Russia relations and seek sanctions relief amid domestic economic challenges.
