The peak of AI has not yet peaked

This report is from today’s CNBC Daily Open, international markets bulletin. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. As you see? You can subscribe here.

Back-to-back gains for the S&P and Nasdaq
US stocks mostly rose on Mondaywith S&P 500 and Nasdaq Composite climbing two days in a row. Artificial intelligence my dear Nvidia closed at a record high. All over Europe Stoxx 600 index advanced 0.95%That’s despite hitting record highs after US President-elect Donald Trump dismissed news of tariffs it may not be that heavy as he originally thought.

Foxconn shows that artificial intelligence is still hot
Foxconn, which trades as Hon Hai Precision Industrysaid on Sunday statement said the company’s fourth-quarter revenue, which rose 15% year over year, was the highest in the company’s history for that period. Foxconn’s numbers show that artificial intelligence is still hot. stock shipment Nvidia and other global semiconductor companies.

Partnership on a charging network for electric vehicles
stocks Volkswagen and Xpeng The two firms rose on Monday after announcing a memorandum of understanding in which they promised to open their own superfast charging networks to each other’s customers. Volkswagen and Xpeng will also explore cooperation co-brand super fast charging stationscompanies said.

Trudeau resigns
Canadian Prime Minister Justin Trudeau said at a press conference on Monday that he would resign from the leadership of the ruling Liberal Party however, he will remain as prime minister until a new leader is elected ahead of general elections at the end of October. He added that the Canadian Parliament will suspend its activities until March 24, when the vote of confidence will be held.

(PRO) Quality stocks against rising rates
The 10-year Treasury yield continued to rise until 2025, putting pressure on stocks. Michael Wilson, chief U.S. equity strategist at Morgan Stanley, advises investors to use quality stocks to ride out any subsequent market volatility. Here is a list of shares Passed a demonstration by Wilson’s team.

The electronics maker’s glowing earnings report follows Microsoft’s He plans to make an announcement on Friday 80 billion dollars is invested Building data centers capable of handling AI workloads in FY2025.

These reports show that companies continue to invest heavily in AI, and the peak is far from over.

Investors are also looking forward to Nvidia CEO Jensen Huang’s keynote speech at the 2025 Consumer Electronics Show 2025 at 11am Singapore time.

On the back of such tailwinds, Nvidia shares rose 3.4% to close at a record high of $149.43 for a third consecutive day of gains. The company’s shares have risen further in long-term trading and are currently hovering above the $150 level.

Broadly speaking VanEck Semiconductor ETF increased by more than 3%.

These moves helped propel the major mids forward. Technology is heavy Nasdaq Composite It was the clear winner, rising 1.24% S&P 500 It increased by 0.55%.

However, Dow Jones Industrial Average It decreased by 0.06%. The index pared gains on reports that Trump may ease tariffs on imports, which would benefit established blue-chip companies such as those in the consumer discretionary sector.

Despite these positive reports and positive market action on Monday, the year ahead continues to look challenging.

“I think the market is bullish on technology right now, looking for 20% earnings growth this year versus 12.8% for the market … but valuations look restrictive,” said Sam Stovall, chief investment strategist at CFRA Research.

So the real test for AI is whether companies can use it to boost revenue rather than just driving up the price of the sector’s picks and shovels.

– CNBC’s Ryan Browne, Jordan Novet, Pia Singh and Tanaya Macheel contributed to this report.