Investors Double Down on AI as Oil Prices Take a Dive

The artificial intelligence boom is still the star of the show for investors, who are pouring money into a wider range of chipmakers beyond Nvidia. In the second quarter alone, Intel, Micron, and Advanced Micro Devices added roughly $2 trillion in combined market value, signaling a shift in the AI trade. Analysts see this as a changing of the guard, with investors betting that the next wave of AI data center construction will lift a broader group of semiconductor and infrastructure companies.

Amazon Web Services is also stepping up its game, moving into forward-deployed engineering to compete more directly with OpenAI and Anthropic. These teams work side by side with clients to tailor AI systems to specific business needs, a fast-growing corner of the industry. Meanwhile, China's consumer picture is giving investors pause. Nike reported a 12% drop in Greater China sales, even as the country's factory activity showed unexpected strength in June, fueled by high-tech production tied to global AI demand. But the recovery remains patchy, with real estate and consumer goods still under pressure, raising questions about whether Beijing will need to boost fiscal spending.

On the energy front, Brent crude posted its biggest monthly decline since March 2020, falling about 21% in June. The drop came as hopes for easing tensions in the Middle East grew, with fresh talks between Iran and the U.S. on the horizon. Still, markets are cautious - mixed signals around the peace discussions suggest the détente is fragile. And in other headlines, a former Indonesian education minister and Gojek co-founder was sentenced to 10 years in prison for corruption tied to a school Chromebook procurement program, adding a sobering note to the day's news.

Source: CNBC