Tech Titans Shine: Nvidia's $5T Valuation and Sesame's $250M Boost
Source: forbes.com
What Happened
The tech industry is on fire as the Magnificent Seven companies report strong earnings, Nvidia hits a historic $5 trillion valuation, and Sesame secures a massive $250 million funding round. These developments underscore the rapid advancements in AI, AR/VR, and semiconductor technology, shaping the future of work and entertainment.
Apple reported $102.47 billion in revenue and $1.85 EPS, driven by iPhone and Services. Alphabet logged its first $100 billion quarter, up 16% year over year, on strong search and cloud performance. Microsoft posted $77.7 billion revenue and $3.72 EPS but fell on concerns about AI infrastructure spending. Meta set a record $51.24 billion revenue, then dropped 10% after a $15.9 billion tax charge and rising Reality Labs capex. Oracle stayed elevated as cloud sales climbed 28% in September.
Nvidia reached a $5 trillion valuation on relentless AI chip demand, announced seven U.S. supercomputers, invested $1 billion in Nokia, and confirmed plans for up to $100 billion in OpenAI. CEO Jensen Huang forecasted $500 billion in AI chip sales. Shares rose 5.6% to $212.19 after reports that President Trump will discuss Nvidia’s Blackwell chips with China’s Xi Jinping.
Sesame, led by former Oculus co-founders Brendan Iribe and Nate Mitchell, raised $250 million in Series B funding led by Sequoia Capital and Spark Capital. The company is developing lightweight AI-powered glasses with voice assistants named Miles and Maya, competing with Apple, Meta, and Google-backed Magic Leap in the AI wearables race.
Why It Matters
The strong earnings of the Mag 7 companies indicate a healthy tech sector and robust demand for their products and services. Nvidia's $5 trillion valuation and its investments in AI and supercomputing highlight the growing importance of AI and semiconductor technology in driving innovation and economic growth. Sesame's funding round shows the continued interest and investment in AR/VR technologies, which have the potential to revolutionize how we interact with digital content and the physical world.
Our Take
While the tech sector is thriving, there are concerns about job losses due to AI adoption. Companies like Amazon, UPS, and Target are cutting jobs as they integrate AI into their operations. The rapid advancements in AI and AR/VR technologies are creating new opportunities but also pose challenges in terms of job displacement and the need for reskilling. Investors are bullish on tech, especially AI and AR/VR, but companies need to navigate the ethical and social implications of these technologies carefully.
Implications and Opportunities
For investors, the tech sector remains a strong bet, with companies like Nvidia leading the charge in AI and semiconductor technology. For consumers, the advancements in AI and AR/VR promise more immersive and intelligent products. For workers, the shift towards AI and automation underscores the need for continuous learning and adaptation to new technologies.