Tech
GM Beats Second-Quarter Expectations, Raises Forecast Again
General Motors (GM) reported impressive second-quarter profit and revenue on Tuesday, surpassing Wall Street’s expectations. The company raised its annual profit forecast for the second time this year, driven by strong pricing and high demand for gas-powered trucks.
The Michigan automaker continues to see robust profits from its gasoline-engine offerings while preparing for a gradual transition to electric vehicles (EVs). GM executives confirmed that the company is on track to meet its ambitious EV production goals.
“We’re encouraged by the early results we’re seeing in EVs now that we can build at scale,” CFO Paul Jacobson said in a call with reporters.
In response to these positive results, GM’s shares rose over 4% in premarket trading. The company updated its adjusted pre-tax profit projection for the year to $13 billion to $15 billion, up from the previous range of $12.5 billion to $14.5 billion.
GM reported adjusted earnings per share of $3.06, beating Wall Street’s average estimate of $2.75. The company also achieved $48 billion in revenue for the quarter, surpassing analysts’ consensus of $45.5 billion.
GM provided an update on its Cruise self-driving unit, announcing a focus on developing a next-generation Chevrolet Bolt rather than the futuristic Origin vehicle without human controls.
Despite a cyberattack that affected auto dealerships across the U.S. last month, GM’s quarterly results remained strong, with a 14% increase in net income over the previous year to $2.9 billion.
GM’s stock has performed exceptionally well in 2024, increasing by 38% and outperforming its rivals and the S&P 500. In comparison, Ford Motor has seen an 18% increase, while Stellantis has experienced an 11% decline.
Additionally, GM received significant financial support from the U.S. government this summer to bolster its EV ambitions.
The emergence of Chinese AI app DeepSeek has triggered shockwaves across the US tech industry, leading to a significant drop in stock prices for major companies. AI chipmaker Nvidia saw its value plummet by 16%, losing $500 billion in market capitalization. Rival Broadcom also suffered a sharp decline, with shares falling 17.8%, while other tech giants like Microsoft and Meta experienced notable losses.
DeepSeek has quickly risen to become the most downloaded free app in the United States, overtaking popular rivals like ChatGPT. Its reported development cost of just $6 million has sent ripples through the industry, challenging the traditional notion that groundbreaking AI technology requires multibillion-dollar investments.
In stark contrast, companies like Microsoft and Meta have committed vast sums to AI development, with investments of $80 billion and $60–65 billion, respectively. DeepSeek’s meteoric rise suggests that a lower-cost, open-source approach may disrupt existing business models and redefine what is possible in AI.
The sudden market turmoil underscores concerns about America’s dominance in artificial intelligence. Investors are now questioning whether US tech companies can maintain their competitive edge against cheaper, innovative alternatives like DeepSeek.
Nvidia, a key player in AI chip manufacturing, experienced the most significant blow, as the app’s success has called into question the scalability and profitability of existing AI strategies reliant on expensive infrastructure.
DeepSeek’s rise highlights the potential for more cost-effective, innovative solutions in AI development. While its reported $6 million development budget remains disputed by some industry experts, it has already shifted perceptions of what achieving AI breakthroughs might cost.
This development could pave the way for smaller companies and governments to explore AI without the need for massive financial resources. In the UK, where the government is banking on AI to drive economic growth and reduce public service costs, such advancements could serve as inspiration for future projects.
Despite its success, DeepSeek’s rapid rise also raises questions about its long-term sustainability, data privacy, and the technology underpinning its platform. As researchers and analysts delve deeper into its model, the app’s low-cost development claims may face scrutiny.
The DeepSeek phenomenon has upended the AI market, challenging entrenched economic assumptions and sparking uncertainty for US tech giants.
Nvidia CEO Jensen Huang has introduced the next generation of gaming chips, the RTX 50-series, during his keynote address at CES 2025 in Las Vegas. These cutting-edge chips leverage Nvidia’s Blackwell artificial intelligence (AI) technology, promising unprecedented gaming experiences with movie-quality graphics.
Huang showcased the capabilities of the RTX 50-series chips, claiming they are twice as fast as their predecessors. Priced between $549 (£438) and $1,999, the chips are designed to cater to a wide range of gamers, from casual players to hardcore enthusiasts.
In a live demonstration, the new chips produced stunning, highly detailed visuals with dynamic textures and complex maneuvers—all in real time. “It was awesome that they can do this in real time,” said Gary Yang, a robotics graduate student from Caltech. “Previously, we’d think of these graphics as pre-rendered.”
The RTX 50-series chips will hit the market starting late January 2025. Early reactions from attendees at the CES event have been overwhelmingly positive. “I thought it was incredible,” said Scott Epstein of Agenovate AI, emphasizing Nvidia’s ongoing innovation.
The announcement comes as CES 2025 attracts over 150,000 attendees and 4,500 exhibitors, solidifying its reputation as the premier stage for tech innovation. Nvidia’s shares reached a record high in anticipation of Huang’s keynote, underlining the market’s confidence in the company’s direction.
Reflecting on Nvidia’s 31-year history, Huang highlighted the company’s evolution from a graphics chip manufacturer to a leader in AI chip development, now valued at over $3 trillion. Despite its achievements, Nvidia faces challenges from regulators worldwide scrutinizing its dominance in the AI chip market.
The RTX 50-series chips mark a significant step forward in gaming technology, blending AI advancements with unparalleled performance.
Volkswagen and Xpeng have announced plans to collaborate on a vast super-fast electric vehicle (EV) charging network in China, marking a significant step in their partnership. The two companies signed a memorandum of understanding to share access to their respective charging networks, creating over 20,000 charging points across 420 cities in China.
The partnership, which aims to make EV charging more accessible, also includes plans for co-branded super-fast charging stations. Olaf Korzinovski, executive vice president of Volkswagen Group China, highlighted the ambition:
“Through our strategic collaboration with Xpeng, we will form one of the largest Super Fast Charging Networks in China, enabling seamless e-mobility not only in major cities but also in remote areas.”
The announcement sent Xpeng’s Hong Kong-listed shares up 3.4% by market close on Monday, while Volkswagen shares rose 2% in early European trading.
The charging infrastructure is a critical aspect of EV adoption, allowing drivers to recharge their vehicles conveniently and drive longer distances. The partnership is expected to rival Tesla’s growing Supercharger network in China, adding competition to the rapidly expanding EV market.
Volkswagen has been intensifying its focus on the Chinese EV market. In 2023, the German automaker invested $700 million in Xpeng, acquiring a 4.99% stake in the company. By 2030, Volkswagen plans to introduce at least 30 fully electric models in China across its various brands.
In addition to the charging network, Volkswagen and Xpeng are working together on two electric car models, slated for delivery in China by 2026.
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