The Rundown - Nvidia GTC Conference Begins, Apple in Talks to License Google's Gemini AI

Starting point is 00:00:00 Public.com presents the rundown. Your daily market update in five minutes. My name is Zadmani, and today is Monday, March 18. In today's episode, we go over some huge news regarding AI. Your next iPhone might have built-in AI from Google. Yeah, kind of confusing, but I will explain. We also preview another action-pack week. We got the Fed meeting coming up.

Starting point is 00:00:22 We got Nvidia's AI conference. The Reddit IPO is happening this week. Oh, and we got March Madness starting on Tuesday. So there's a lot to go over. let's get into it. Well, guys, the S&P 500 is going to look to make a bounce back this week after its second straight weekly loss last week. The S&P hasn't had two down weeks in a row since late October, so it's been a while. Now, last week's loss likely happened because of a pair of hotter than expected inflation reports,

Starting point is 00:00:47 which cause investors to be a bit uncertain of how soon the Fed will start cutting rates. Speaking of the Fed, the Fed is actually meeting this week. The two-day FOMC meeting kicks off on Tuesday, where the Fed is going to decide what to do with interest rates. rates. And right now, the markets are pricing in a 99% chance of Jerome Powell and company keeping the rates where they are, which is kind of disappointing to some investors because just a couple months ago, investors thought there was a higher than 50% chance that the Fed was going to cut rates at the March meeting. That doesn't look like it's going to happen anymore. But we should get updated commentary from the Fed on what their vibe is right now about the

Starting point is 00:01:20 economy and what they're thinking about doing with their monetary policy moving forward. And as with every FMC meeting, Jerome Powell gives a press conference and reporters get to ask him a question. Now, typically these press conferences are pretty boring, but I still can't look away because sometimes you might get a little nugget in there from Jay Powell. And sometimes he doesn't really say anything. So I'll still be watching and I'll recap any juicy details that come from that press conference on Thursday's show. So make sure you guys listen to the rundown on Thursday. I mean, you should be listening in every day this week, but especially Thursday's episode if you want to know what the Fed is thinking. The Fed meeting is not the only big thing happening this week.

Starting point is 00:01:52 We also got Nvidia's GTC AI conference, which kicks off today. And then Reddit's IPO is happening on Thursday, and we also have Nike earnings as well on Thursday. So a lot going on. I think a lot of people are going to have their attention to Nvidia's GTC conference because it's supposed to be filled with key information about Nvidia's AI chip roadmap and any upcoming partnerships and, you know, about the AI ecosystem as a whole. Because as you guys know, Nvidia is the leader right now when it comes to AI chips. They own about 80% of market share for AI data center chips. So what they say is a big deal. The Nvidia's CEO, Jensen Huang, will deliver a.

Starting point is 00:02:26 highly anticipated keynote address this afternoon between 4 to 6 p.m. Easterns. I'm probably going to tune in for that one. And if there's anything interesting that comes out of that keynote, we'll covered on tomorrow's show. So again, another reason for you guys to listen to the rundown. Let's run through some other headlines because we have another huge AI news that came out this morning. The next iPhone might be powered by Google's Gemini AI. That's right. According to a Bloomberg report this morning, Apple is negotiating with Google to license Google's Gemini AI to power some new iPhone features for the upcoming iPhone. That would be insane. You know, I find Google and Apple's relationship to be so interesting. I mean, they're kind of frenemies, right? Because obviously you have the whole

Starting point is 00:03:03 Android versus iPhone rivalry. Google also pays Apple about $18 billion a year to be the default search engine on an iPhone. Just a very interesting relationship. This would be like another element to that. Apple would pay Google to license Google's Gemini AI. So I wonder how they're going to integrate that into the iPhone. And I'm sure Google is kind of happy to get some money from Apple this time after paying Apple billions of dollars over the last few years to be the default search engine. Now, this deal isn't done yet. According to Bloomberg, Apple is still negotiating with Google and in fact, they're also negotiating with Open AI as well. So not a done deal yet. I also wonder what this means about Apple's internal AI. You know, Apple has their own AI project code name Ajax.

Starting point is 00:03:41 I guess Apple doesn't think that it's good enough to like be the AI that powers the next iPhone. Otherwise, why else would they want to license another AI technology, you know? Again, still not a done deal yet, but I actually might be kind of excited to get my next iPhone if it has some sort of AI integration into it, especially if it's from Google or Open AI. I mean, that would be really cool. Google investors seem to be loving this so far because Google stock jumped about 5% on this news. Speaking of investors that are excited, Reddit's IPO is set for Thursday, March 21st, and things are looking pretty good for Reddit so far because the IPO is five times oversubscribed, according to a report from Reuters. Now, what this means is that there's five times more people

Starting point is 00:04:17 wanting to buy the stock, then there are shares available. So it's a good sign for the company that they will likely reach their $6.5 billion valuation. Remember, the target IPO price is between $31 and $34 a share. So something to look forward to on Thursday. All right, let's quickly went through some stocks making moves today. Tesla stock having a good day. The stock is up more than 3% after they announced they're going to be increasing the price of the Model Y. Tesla announced that prices will increase by $1,000 for all Model Y's on April 1st. And this is after months of the price cuts. So something for Tesla investors to get excited about after a brutal start to the year. And the company having a tough start to the week is shift for payments. The stock for this

Starting point is 00:04:56 payment company is down more than 8% this morning after the company denied multiple offers to buy out the company. The buyout offers were made above current share price and the company rejected them. The company said that those offers did not adequately value the business or its future. Investors didn't like that news and the stock dropped more than 8%. All right, let's wrap the show with a quick fun fact. Today's fun fact is about March Madness because March Madness tips off this week and Americans are estimated to illegally gamble about $2.7 billion during this tournament. It's according to the American Gambling Association. Now, the $2.7 billion is just the legal number. If you count the illegal ways that people gamble

Starting point is 00:05:34 during the tournament like bracket office pools and things like that, that number is estimated to be around $15.5 billion on the men's tournament. I mean, who doesn't like a good bracket pool, right? And speaking of brackets, the odds of getting a perfect bracket is one in 9.2 cantillion. I'm not even sure how many zeros that is. Now, that's if you pick each game as a coin flip. If you're someone that watches college hoops, great. The odds of a perfect bracket improved to one in 120 billion. So very, very, very unlikely.

Starting point is 00:06:02 And that's why Warren Buffett used to give out like a billion dollars to anyone that got a perfect bracket. I'm not sure if he still does that anymore. But it hasn't happened yet. So there you go. Honestly, like my wife will pick a better bracket than me because she just picks teams based on how cool their mascot is. And I try to do all this research, and I still have a terrible bracket. So it just goes to show you the bracket stuff is just a crapshoot. But it's fun.

Starting point is 00:06:21 And that's why I always do a bracket every year. We'll make that the Spotify poll today. Do you guys place a wager on March Madness? Do you guys fill out a bracket during March Madness? If you listen to this episode on Spotify, tap this episode and vote in today's poll. I have a feeling that based on the demographics of the show, we get a lot of yes. All right, guys, that's all I got for you guys today. Getting ready for another action-pack week.

Starting point is 00:06:40 We'll keep you guys in the loop. So make sure you guys tune in every single day. If you guys enjoy the show, please give it a five-star rating on Spotify, Apple Podcasts. The podcast continues to climb the charts. We are so close to the top 10, so your support and engagement would really help. Thank you guys again for listening, and we'll see you guys back here tomorrow. This is the rundown, your real-time resource for news events and trends in the markets. All views presented in this show reflect the opinions of the guests.

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The Rundown - Nvidia GTC Conference Begins, Apple in Talks to License Google's Gemini AI

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