Tencent AI Spending Key After Magnificent 7 Rout
Tencent Holdings Ltd.'s spending plans will draw investor scrutiny as investors cool on lavish outlays on artificial intelligence. Last month, the Magnificent Seven lost $797 billion in a day after Google…
- Strong demand for AI infrastructure and consumer electronics should have supported Hon Hai Precision (2317 TT) in its second quarter, said BI, noting monthly sales numbers that signaled robust demand in the global AI infrastructure buildout. Margins could see some pressure from AI servers though strong operating leverage and the shift to a consignment model for certain projects should help mitigate such risks.
- Commonwealth Bank of Australia’s (CBA AU) full-year earnings are seen rising 6% amid lower costs, flat net interest income and a smaller impairment charge compared with last year, according to UBS. Margins are likely to be ahead of expectations as the bank was more judicious in deploying capital in the second half, UBS added, and key risks are seen around mortgages and the impact on net flow rates.
- Zijin Gold’s (2259 HK) failed C$5.5 billion bid to buy Allied Gold means it will avoid paying a substantial premium, said BI. The scuttled deal comes as Beijing began tightening scrutiny of investments overseas.
