The Daily Chase: Doubts growing on AI

Doubts growing on AI-led investor exuberance

There are growing signs that investor exuberance tied to the boom in AI-related spending may be starting to wane. Shares of Broadcom traded sharply lower in the premarket after the company delivered a disappointing forecast for artificial intelligence chip revenue. While Nvidia remains the dominant maker of AI accelerators, Broadcom has positioned itself as a key alternative. Semiconductor names, which led the latest leg higher in the market’s rally to record levels, fell broadly. Futures for the Nasdaq 100 dropped 1.3%, with the downturn extending to other corners of the tech trade.

Prime Minister Mark Carney is set to unveil the federal government’s artificial intelligence strategy at a news conference at 10:45 am in Toronto. The Globe and Mail is reporting the announcement will lay out plans to increase business adoption, provide free training and literacy skills to Canadians and boost funding options for start-ups, with a price tag of about $2.3 billion. BNN Bloomberg will carry the announcement live.

We now have pricing details for the largest stock offering in history. SpaceX has set a fixed price of US$135 per share ahead of officially marketing its initial public offering. SpaceX says it plans to sell 555.6 million shares, which would amount to a US$75 billion fundraise. The underwriters have an option to purchase an additional 83.33 million shares at the IPO price, amounting to $11.2 billion. Musk will own over 82% voting control after the offering. At the US$135 per share price tag, SpaceX would be valued at US$1.77 trillion.

Transalta is buying two gas-fired power plants in Colorado. The US$1 billion purchase from Blackstone strengthens the Calgary-based company’s foothold in the Western U.S.. Transalta says the deal will immediately add to free cash flow.

Canaccord Genuity group posted higher than expected fourth-quarter revenue. This marks an increase of 33 per cent over the same period last year. Adjusted earnings per share beat analysts estimates. The company says capital markets growth was led by higher investment banking while wealth management continued to scale. We’ll find out more when we speak with Canaccord CEO Dan Daviau at 9:45 am et.