Morning Brew: Infosys Expands AI Collaboration with Google Cloud, Apple's Mac Business ...
The S&P 500 saw a mixed day of trading as investors digested a slew of corporate earnings and economic data. Infosys (NYSE:INFY) announced an expansion of its collaboration with Google Cloud, a unit of Alphabet (GOOG, GOOGL), to develop AI-powered solutions for enterprises. This partnership will leverage Infosys' Topaz offerings and Google Cloud's generative AI solutions, with Infosys also planning to train 20,000 practitioners on Google Cloud's gen AI solutions.
Meanwhile, Apple's (NASDAQ:AAPL) Mac business is facing challenges, with MacBook shipments reportedly falling by roughly 30% year-over-year in 2023. TF International Securities analyst Ming-Chi Kuo suggests that the downturn is unlikely to abate soon, citing declining work-from-home demand and the potential loss of appeal for Apple's silicon advancements and mini-LED screens as key challenges.
On the economic front, Russell Investments argued that a recession is likely in 2024, despite recent signs of resilience in the U.S. economy. The firm raised its near-term (12-18 month) recession probability to 55%, citing lag effects from higher interest rates as a key factor.
In merger news, Broadcom (NASDAQ:AVGO) and VMware (NYSE:VMW) have set October 23 as the deadline for VMware holders to elect the form of merger consideration they will take. The companies expect to close the transaction by October 30, subject to regulatory approvals and other customary closing conditions.
U.S. Bancorp (NYSE:USB) saw its stock slip after the company's Q4 guidance indicated that net interest income could fall short of Wall Street consensus. The company expects total adjusted revenue of $6.8B-$6.9B and net interest income of $4.1B-$4.2B for Q4.
Shares of chipmakers Nvidia (NASDAQ:NVDA), AMD (NASDAQ:AMD), and Intel (NASDAQ:INTC) continued to slide as Wall Street firms weighed in on the impact of the Biden Administration's new export controls on AI-linked chips to China. Citi analysts maintained their buy rating on Nvidia but lowered their price target to $575 from $630.
This article first appeared on GuruFocus.
