World Update: Nvidia's Surge Persists, Boeing Pursues Funding, Hindenburg Investigates Roblox, and More
Chipmakers gained on Tuesday, with Nvidia’s stock rising 14% over five days.
Nvidia's shares climbed after Foxconn reported high demand for AI servers.
Nvidia's shares rose after Foxconn announced plans for a major AI server plant.
Boeing is seeking billions to avoid a credit downgrade, while Roblox's stock fell due to allegations from Hindenburg Research about inflated user metrics.
PepsiCo has lowered its sales growth outlook because of changing consumer habits, and a US judge has ordered Google to revise its mobile app policies for Android users.
Here’s a look at these developments on the October 9 edition of World Street.
AI Demand Boosts Nvidia
Nvidia's shares climbed after Foxconn reported high demand for AI servers.
Chipmakers gained on Tuesday, with Nvidia’s stock rising 14% over five days.
Foxconn revealed it’s building the world’s largest AI server assembly plant in Mexico, which will use Nvidia's GB200 chips from the Blackwell AI architecture.
Boeing's Fundraising Plans
Boeing is looking to raise billions by selling stock and other equity-like securities to avoid a downgrade of its credit rating to junk status.
Several investment banks, including Goldman Sachs and JPMorgan, have approached Boeing with various fundraising proposals.
Roblox Denies Hindenburg's Claims
Roblox shares fell 3.3% after Hindenburg Research accused the company of inflating its user numbers. Roblox denied these claims.
Hindenburg also suggested that Roblox might be overstating user engagement by as much as 42%.
Additionally, they noted that Roblox has reported losses every quarter since going public, totaling $1.07 billion over the past year.
PepsiCo Cuts Sales Outlook
PepsiCo has lowered its annual sales growth forecast. The company cites decreased spending on sodas and snacks by North American consumers.
Many are choosing cheaper private-label brands instead. PepsiCo now expects low single-digit sales growth for fiscal 2024. This is down from an earlier estimate of 4%.
Google's New App Policies
A US judge has ordered Google to change its mobile app policies.
This change will give Android users more options for downloading apps. It will also allow users to choose different payment methods.
The ruling follows a jury's decision last year in favor of Epic Games, the maker of “Fortnite.”
This decision requires Google to allow third-party app sources and alternative payment systems.
