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Nvidia shares bounce back as Microsoft increases AI spending

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Nvidia shares bounce back as Microsoft increases AI spending

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Nvidia shares rebounded on Wednesday after Microsoft indicated it would continue to invest heavily in the technical infrastructure underpinning artificial intelligence, highlighting investors’ sensitivity to the spending plans of a handful of Big Tech groups.

Chip stocks including Nvidia, Arm and AMD fell sharply on Tuesday ahead of Microsoft’s latest earnings report. Anxiety about the sustainability of the past year’s monster AI rally had intensified after Google’s quarterly numbers last week, triggering a volatile few days for tech investors that wiped nearly $500bn off the value of Nvidia in little more than a week.

Shares in Microsoft slid nearly 2 per cent in New York on Wednesday after the Seattle-based company narrowly missed lofty expectations for cloud growth. But comments from executives that demand for its AI services continued to exceed available supply of computing power, a problem that was driving continued investment in data centres, boosted market sentiment around their semiconductor suppliers.

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Nvidia climbed 11 per cent on Wednesday, while AMD — which reported strong demand for its AI chips on Tuesday evening — rose 4 per cent. Shares in Arm, the UK-based chip designer, rose 7 per cent.

The gains helped the Nasdaq index rebound from Tuesday’s slump, rising 2.6 per cent.

Microsoft said sales in its closely watched Azure cloud computing platform had risen 29 per cent year on year in the quarter to June 30, missing forecasts for a rise of between 30-31 per cent and below last quarter’s growth rate of 31 per cent.

Microsoft’s capital expenditures for the quarter to June 30 hit $19bn, nearly 80 per cent higher than the same period a year ago and ahead of Wall Street’s forecasts. “Nearly all” of that was cloud and AI-related spending, said its chief financial officer Amy Hood, and those investments would pay off during the second half of the year when Azure growth would “accelerate”.

Analysts at TD Cowen said on Wednesday that they had raised their forecasts for Microsoft’s capital spending from $70bn to $84bn for the 2025 financial year.

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Hood said that half of Microsoft’s capital spending went towards land, building and leases, which “really will be monetised over 15 years and beyond”, while the other half was spent on technical equipment, including chips and servers, which would be “based on demand signals”.

Analysts at Deutsche Bank said in a note on Wednesday: “We believe this new disclosure will go a long way to relax investor concerns regarding the timeliness of converting capex to revenue.”

Tech companies including Google, Amazon, Microsoft and Meta are investing tens of billions of dollars a year in data centre capacity to support what they believe will be a huge wave of AI applications, following rapid adoption of OpenAI’s ChatGPT app since its launch nearly two years ago.

Analysts at CFRA said they expected Amazon to “ramp up” its capex this year to support both its logistics network and the infrastructure underpinning AI, predicting that the total for 2024 was likely to be about $64bn, up from $52.7bn in 2023.

Nvidia chief executive Jensen Huang said during an onstage conversation with Meta chief Mark Zuckerberg that the social media group had installed about 600,000 of its latest AI chips. “You’re operating larger than just about anybody,” he said, to which Zuckerberg replied with a grin: “We’re good customers.”

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But even as tech leaders boast about their AI firepower, investors have been growing increasingly cautious about the near-term returns from that spending in recent weeks.

“The market is turning on the realisation that the rate of profit growth at these Big Tech names is almost certainly going to slow,” said Manish Kabra, head of US equity strategy at Société Générale. “Is Nasdaq going to rise more than 35 per cent every year? Perhaps, but probably not. So the market wobbles, and traders rotate in and out of names like Nvidia.”

Chip stocks were further boosted by a Reuters report on Wednesday that new US export restrictions on semiconductor manufacturing equipment to China would exempt allies including the Netherlands and Japan, home to key suppliers ASML and Tokyo Electron. ASML shares rose 5 per cent on the report.

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With her signature stiff arm and red lip, Ilona Maher rules Olympic rugby and TikTok

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With her signature stiff arm and red lip, Ilona Maher rules Olympic rugby and TikTok

Ilona Maher celebrates the U.S. women’s rugby sevens win over Australia for the bronze medal in Paris on Tuesday.

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NPR is in Paris for the 2024 Summer Olympics. For more of our coverage from the games head to our latest updates.

Ilona Maher is hard to miss.

The U.S. women’s rugby sevens center has emerged as one of the stars of this year’s Olympic Games, whether she’s charging down the pitch in red lipstick or goofing around on TikTok with her teammates.

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Maher helped Team USA win its first-ever medal in women’s rugby on Tuesday, defeating Australia in nail-biting fashion. Afterward, she spoke emotionally about the importance of growing the sport.

“We wanted to do this to show what rugby could be in America,” Maher said. “We say in rugby a lot that we want to ‘pass the jersey.’ … I think today really made the jersey better so that other young girls can grow up wanting to play rugby, wanting to be professionals, wanting to live the life we live where we travel the world and go to the Olympics.”

The 27-year-old Vermont native has been an athlete to watch — both on and off the playing field — since the 2021 Tokyo Olympics, when she charmed the world with her honest review of the controversial cardboard beds, blunt takes on the Olympic Village social scene and other behind-the-scenes looks at the highly-restricted pandemic-era Games.

Maher’s social media star has only grown in the years since. She’s used the platform to bring attention to women’s rugby and spread messages of body positivity, including popularizing the hashtag #beastbeautybrains (her sister Olivia, by the way, is the creator of #girldinner).

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Just days into the Paris Olympics, Maher officially became the most-followed rugby player on Instagram with 1.4 million followers, a number that’s since grown to 2 million. She has 1.9 million and counting on TikTok.

So far, Maher has fangirled over Snoop Dogg, converted retired NFL player Jason Kelce into a U.S. women’s rugby hype man (a la Flavor Flav), tested the beds again and posted about looking for love at the Olympic Villa in a spoof of the reality show Love Island.

She’s also clapped back at negative comments about her weight and muscular stature (“every day I get called masculine, I get called manly” she said in one 2022 TikTok).

In a now-viral video response posted earlier this month, 5-foot, 10-inch Maher, who holds a degree in nursing, pointed out that BMI is a flawed measurement, especially for athletes.

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“I do have a BMI of 30. I am considered overweight,” she concluded. “But alas. I’m going to the Olympics, and you’re not.”

In another much-liked TikTok, posted from Paris, Maher encouraged people to take note of all the different body types of the athletes competing in the Olympics.

“All body types are worthy, from the smallest gymnast to the tallest volleyball player or rugby player to a shotputter and a sprinter,” she said. “All body types are beautiful and can do amazing things, so truly see yourself in these athletes and know that you can do it too.”

Maher’s videos have racked up hundreds of thousands of likes and admiring comments from grateful viewers who credit her with getting them interested in the Olympics and women’s rugby.

After Tuesday’s win, Maher acknowledged that social media does come with added pressure to perform, something she said she talked about with her sports psychologist “at least every day” leading up to the Olympics.

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“I want to show people that I can be good at social media and I can do a lot of social media but also be a very good rugby player,” she said. “And that was important to me.”

The rise of Ilona Maher

Ilona Maher, in an Team USA Olympics shirt, poses for a portrait against a red and blue background.

Ilona Maher, pictured in an April 2024 portrait, has dominated the Paris Olympics on the pitch and on social media.

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Maher was an all-around athlete at Burlington High School, where she played hockey, basketball and softball. While her dad was a college rugby player, she didn’t check out the sport until age 17.

“My senior year I just wasn’t really that into softball anymore, so I looked at some things and saw that there was a local rugby team at South Burlington High School,” Maher told Vermont Public in 2018. “My dad’s played rugby for a while … and so I tried rugby and found I was pretty good at it, and it just kind of started to roll from there.”

Maher played rugby at Norwich University for a year before being recruited to Quinnipiac University. There, she won three championships in the National Intercollegiate Rugby Association (NIRA) and was named to NIRA’s All-American team all three years.

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In 2017, she received the MA Sorensen Award, which is given to the nation’s top collegiate women’s rugby player.

Maher, who also holds a master’s degree in business administration and management from DeVry University, was selected for the U.S. national rugby team before she graduated from college.

She made her debut at a Women’s SVNS tournament in Paris in 2018 and has competed in the Rugby World Cups in 2018 and 2022 — as well as, of course, two Olympics. Rugby sevens, which made its Olympic debut in 2016, is made up of seven players playing two seven-minute halves, as opposed to 15 players playing 40-minute halves.

Maher has turned heads for her aggressive playing style, including her high-speed runs and stiff arm. She’s recently been compared to Baltimore Ravens running back Derrick Henry, who in turn shouted her out.

One thing that makes Maher even more distinct on the pitch is her signature red lip. She told “CBS Mornings” this week that she wears lipstick while playing to “stick it to the man.”

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“It doesn’t take away from your athletic ability if you wear makeup,” Maher said, adding, “I feel that I can be a beast and can play this very physical, aggressive sport while also keeping my femininity while I do it.”

The rise of U.S. women’s rugby

Team members for the United States — including Maher in the top and New Zealand pose at the medal presentation ceremony for the Rugby Sevens in Saint-Denis, France on Tuesday.

Team members for the United States — including Maher in the center of the top row — and New Zealand pose at the medal presentation ceremony for the Rugby Sevens in Saint-Denis, France on Tuesday.

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Maher has spoken about using TikTok to have fun and promote her sport — both to potential viewers and future players.

“I think it just doesn’t get the attention it deserves,” she told Vermont Public in 2021, adding that she and her team are working to get more girls interested in rugby.

“Because we have some of the best athletes in the U.S.,” Maher added. “And if we could get people really into rugby, I think we could be a powerhouse in the world.”

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Women’s rugby has grown increasingly popular worldwide and in the U.S., with the consultancy Elite Rugby Scholars saying in 2022 that participation levels had doubled “each year for the past five years.”

The USA Rugby Women’s Premier League, founded in 2009, is the top annual American women’s rugby union competition (as opposed to rugby sevens, which is what Maher plays) — but the players are not paid.

The sport took its first step towards professionalism in April of this year when Women’s Elite Rugby (WER) announced it would hold its inaugural season in 2025.

WER is planning between six and eight teams with roughly 30 players each and bankrolled by private investment, according to ESPN. On Wednesday, it announced its first three cities: Boston, Chicago and Denver.

And American women’s rugby dominance at the Olympics seems poised to draw even more support — financial and otherwise — for the sport at home.

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Just after Team USA’s win on Tuesday, American businesswoman Michele Kang — who owns the Washington Spirit as well as soccer clubs in France and England — announced she would donate $4 million to the U.S. Women’s Rugby Sevens team over the next four years, to help “grow the support and provide improved resources to its players and coaching staff” ahead of the 2028 summer Olympics.

In a statement, Kang described 2024 as a “banner year for women’s sports with record-breaking attendance and viewership,” including rugby. She highlighted a few key players, Maher among them.

“This Eagles team, led by players like Ilona Maher and co-captains Lauren Doyle and Naya Tapper, has captivated millions of new fans, bringing unprecedented attention to the sport,” she wrote. “As corporate sponsors and broadcast networks increasingly see the value and enthusiasm for women’s sports, now is the moment to unlock the full potential of these incredible female athletes and inspire generations to come.”

NPR’s Juana Summers contributed reporting from Paris.

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Paris Olympic triathletes swim in Seine after bacteria levels subside

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Paris Olympic triathletes swim in Seine after bacteria levels subside

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Women triathletes dove off a blue pontoon into the Seine river on Wednesday morning after the water finally tested as safe for competition, following days of delays and fierce criticism of Paris Olympics organisers.

“The results of the latest water analyses, received at 3.20am, have been assessed as compliant by World Triathlon allowing for the triathlon competitions to take place,” said the organisers and World Triathlon. 

The announcement came after two practice sessions were cancelled and the men’s triathlon was postponed by 24 hours to Wednesday because of high levels of E. coli and other bacteria in the water.

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The French government had insisted on holding the swimming leg of triathlon races in the Seine, in an effort to revive bathing in the Parisian river after a century-long ban. Authorities spent €1.4bn on a years-long infrastructure push to make the Seine clean enough for the competition, but the plan remains entirely weather dependent.

When it rains heavily, as it did on Friday and Saturday, the city’s antique sewers overflow into the river so as to avoid flooding the streets with sewage. Paris sought to mitigate that risk by building a massive underground storage tank that could capture up to 46,000 cubic metres of wastewater to avoid it going into the river after storms. 

Manami Iijima of Guam rinses her hands in the river Seine before the start of the race © Lisa Leutner/Reuters

But the system was overwhelmed by the bad weather last week, putting at risk organisers’ often repeated promises that the river would be ready for the triathlon and marathon swimming. For several days tests showed E. coli and other bacteria levels were higher than the level of 900 colony-forming units limit set by World Triathlon as safe for competitions.

President Emmanuel Macron celebrated the long-awaited moment with a reminder of the state’s financial commitment. “Here we are! The Seine is swimmable,” he said on social media on Wednesday.

The triathlon was supposed to be a highlight of the Paris Olympics given that the course was set against the dramatic backdrop of the Seine and well-known monuments — the swimming starting at the Pont Alexandre III bridge, followed by cycling and running along the Champs Élysées and past the Musée d’Orsay. 

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Instead, it began a flashpoint for criticism that the organisers had put their desire for postcard perfect event backdrops ahead of the needs of athletes who train for years to be able to compete in the Olympics. There was no back-up site for the triathlon to be held if the river was too dirty to swim, although one was set for marathon swimming, the other event to be held in the Seine.

Cassandre Beaugrand of France crosses the finish line to win the gold medal in the women’s individual triathlon in the Paris Olympics on July 31 2024
French athlete Cassandre Beaugrand crosses the finish line to win the gold medal © Aleksandra Szmigiel/Reuters

With more summer storms forecast in the coming days, it remains unclear if the mixed triathlon relay and marathon swimming can be held next week.

On Wednesday, tens of thousands of fans were lined up along the Seine and the Champs Élysées to cheer on the triathletes.

French athlete Cassandre Beaugrand broke through the finish line first to win the country’s first gold medal in the event. Switzerland’s Julie Derron won silver, and Team GB’s Beth Potter won bronze.

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‘Let’s get this done, hotties’: Megan Thee Stallion performs at Kamala Harris rally

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‘Let’s get this done, hotties’: Megan Thee Stallion performs at Kamala Harris rally

Megan Thee Stallion told a crowd at a Kamala Harris rally last night (30 July) that the US is “about to make history with the first Black female president”.

The Texas rapper, 29, performed at the event in Atlanta, Georgia, in front of a crowd of 10,0000, as the vice president and Democratic candidate continues her campaign for president.

The Grammy winner performed four songs at the rally: “Girls in the Hood”, “Mamushi”, “Body”, and “Savage”.

As she introduced her track “Body”, she told the audience: “Now I know my ladies in the crowd love their bodies – and if you want to keep loving your body, you know who to vote for.”

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Harris is well known for her stance on abortion rights. She spent considerable time on the Joe Biden campaign trail advocating for abortion rights after the Supreme Court overturned Roe v Wade in 2022.

In March, Harris made history by visiting a Planned Parenthood clinic in Minnesota – marking the first time a sitting US president or vice president is believed to have visited an abortion provider.

Megan Thee Stallion also called Harris “our future president” and told the crowd they were “about to make history with the first female president – the first Black female president.”

“Let’s get this done, hotties. Hotties for Harris,” she added.

Atlanta rapper Quavo, who was also present, praised Harris for her work on addressing gun violence. The artist set up the Rocket Foundation in 2022 after his nephew and Takeoff was shot and killed aged 28.

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He said: “You can’t understand the struggles of gun violence if you’re not in the field or in the heart of it. So one thing I learned about working with Vice President Harris is she always stands on business.

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“From inviting me to the White House last year to discuss these solutions, to passing the biggest gun safety laws today.

“So it’s only right in the birthplace of the culture, it’s also the same place that launched the first African-American woman to run for president. We’re changing the culture again.

“So if you never voted before, make sure you get out and vote right now because it’s the real one. And in the words of my brother Takeoff, let me get a Kamala.”

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Quavo and Megan Thee Stallion are the latest of many figures from the music world who have shown their support for Harris, including Ariana Grande, Lizzo, Olivia Rodrigo, Beyonce and British singer Charli XCX.

After Biden withdrew from the race and Harris was announced as the new Democrat frontrunner, Charli XCX referenced her latest hit album as she declared on social media: “Kamala IS brat.”

The concept of “Brat”, the title of the Charli XCX’s latest album, has been described by the singer as someone who has a “pack of cigs, a Bic lighter and a strappy white top with no bra”. It is seen as a rejection of the “clean girl” aesthetic – swapping a groomed look for something more scrappy and care-free.

Harris’s campaign HQ immediately welcomed the support and jumped on the bandwagon, changing its background image to the neon green and font used for the “Girl, So Confusing” singer’s album artwork.

Many fans have also been making videos that combine clips of Harris speaking with songs from the album.

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