AI-Generated Summary
It seems like the tech landscape is undergoing a significant shift, with companies like Apple and Alibaba facing increased scrutiny from the U.S. government, particularly regarding their AI ventures in China. This is part of a broader realignment in the tech sector, where traditional giants like Apple, Google, and Amazon are losing political favor, making way for a new wave of U.S.-based, defense-focused companies like Palantir and SpaceX. These companies are capitalizing on the growing importance of AI in national security and hard power, aligning closely with U.S. strategic interests. This shift is reflected in market performance, with Palantir seeing significant gains while Apple struggles. The tech trade is being reshaped, with a focus on companies that prioritize U.S. interests and defense, signaling a new era in the industry.
📜 Full Transcript
organization with you. >> Apple and Alibaba shares are dipping today amid reports that their deal to bring AI to Chinese iPhones is facing U.S. Government scrutiny. Apple in the crosshairs once again of this administration. Deirdre Bosa has the details in today’s tech check. Deirdre Kelly, you’re exactly right. This is. >> Another potential blow to Apple in Trump’s second term, further threatening Apple’s position in one of its most important markets, where consumers are actually adopting AI faster than they are here. This is also part of a tech realignment that is taking shape. Apple and other Mega-caps, Google, Amazon. They are on the outs in terms of political favor, making way for a new class of Washington friendly tech companies that are defense. First, they’re U.S. Made, and they’re cashing in on a new era of hard power. AI. Andrew took center stage on 60 minutes this weekend, showcasing autonomous weapons and a vision of AI built for the battlefield. Meanwhile, Palantir CEO Alex Karp, he was in the Middle East with President Trump last week, reinforcing the company’s role as a diplomatic and military player. Now, this is all unlike Apple, which is building in India and cutting deals with Chinese companies Andrew and Palantir, they are aligned with U.S. Strategic interests, and that is translating into real contracts and market momentum. Palantir is up some 75% since Trump’s inauguration versus Apple, which is down 10%. Andrew, it’s still a private company, but it’s up 40% on secondary markets since then, according to Forge Global. So essentially, Kelly, this amounts to a new tech order. It’s not just Apple, Google and meta regulatory scrutiny. Amazon in the crosshairs. The new darlings are starting to emerge here. And that’s Andrew Palantir SpaceX that could and is reshaping the tech trade, right. >> I’m sure you know a lot of people. Well do I pile in now Palantir is trading with 200 times forward earnings or some crazy high number. But it goes back to that soundbite we heard from the Treasury secretary at the beginning of the show, where he said what Moody’s did was not as important as what happened in Qatar and Saudi Arabia on that trip. And I think your report is another way of looking at exactly the same conclusion. >> Right. And on that trip, remember that the President Trump, he called out Tim Cook for not being there while he was surrounded by some of the new darlings, right? Alex Karp being one of them. But also, it’s interesting to see what Nvidia might be showing us as well, because Jensen Huang, he wasn’t at the inauguration. He didn’t do as much charm offensive at the beginning of this administration. But we’re going to see what happens, right? What replaces the AI diffusion rule, which is going to be so important to Nvidia? See what happens to their plans to, you know, build R&D centers elsewhere in the world. So that will be an important test to really tel
