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AI Export Regulations Loom as Apple Crosses $3 Trillion Milestone

In this week's technology review, we discuss a range of notable events from potential AI export limitations to Apple's historic market cap achievement.

Apple logo
Apple logo

US to Tighten AI Export Regulations

As the Biden administration explores potential new restrictions on the export of artificial intelligence (AI) chips to China, shares for AI chip manufacturers Nvidia (NASDAQ: NVDA) and Advanced Micro Devices (NASDAQ: AMD) took a hit. This potential move by the Commerce Department stems from concerns regarding the possibility of the technology falling under U.S. adversaries' control. Despite this looming restriction, Citi analysts maintain a 'Buy' rating for Nvidia, predicting AI demand to outstrip supply in the year ahead.

Micron Faces Challenges Despite Positive Q3 Earnings

Micron (NASDAQ: MU) shares fell despite reporting higher-than-anticipated fiscal third-quarter earnings, owing to growing apprehensions about its market share risk in China. Even as Micron's memory-chip revenue seems to have bottomed out, the company warns of significant headwinds following recent decisions by China's Cyberspace Administration. While Wall Street analysts expressed mixed feelings about Micron's results, the consensus is cautious optimism for an impending recovery.

Tesla Undergoes Multiple Downgrades Despite Soaring Shares

In the wake of a staggering rise in Tesla (NASDAQ: TSLA) shares, the electric car manufacturer faces a series of downgrades and overvaluation concerns from major financial institutions like Goldman Sachs, Morgan Stanley, and Barclays. While the downgrades were mainly due to valuation, Goldman also pinpointed a challenging pricing environment for new vehicles that could dent Tesla's non-GAAP gross margin in 2023. Despite the short-term skepticism, the long-term view for Tesla remains bullish.

Apple: The First Company to Close at a $3 Trillion Market Cap

For the first time in history, a company – Apple (NASDAQ: AAPL) – closed with a market cap above the $3 trillion mark. This breakthrough comes after Citi analysts initiated research coverage with a 'Buy' rating and predicted a potential 30% upside from its current levels. Citi's optimism towards Apple's future is largely due to the company's continued gross margin expansion, a growing services sales mix, and a robust balance sheet. Despite having flirted with the $3T mark in early 2022, Apple has now officially closed above it.