Each week I review the biggest movements within the AI stock market from last week and let you know what key market trends to look out for in the coming week, to keep you updated and ahead of the curve.

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Broader Market Update

Market dynamics shifted last week from bullish to bearish in the short-term. The Nasdaq tech index is on a 5 day losing streak, dropping 3.38% last week. This selling pressure intensified to end the week after FED Chairman J.Powell stated, “The economy is not sending any signals that we need to be in a hurry to lower rates."  Powell elaborated, "The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully.”

Main AI Stock Market Movers

Ticker: AAPL | Price: $225.00 | Market Cap: $3.40T | Weekly Loss: 0.81% ⬇️

Apple had a relatively stable week of trading, continuing to consolidate between $220-$230. Despite this consolidation, Apple ended the week with a negative news event. It has been reported that Apple is facing a £3B legal claim in the UK for competition law breaches. This claim specifically relates to the iCloud product and is similar to the charges brought forth by the European Commission earlier this year. Amidst this challenging news Apple released plans to unveil a new AI wall tablet, codenamed J490, to compete with Amazon and Google in the smart home race. The device, expected to be announced as early as March, will serve as a home command centre.

Ticker: NVDA | Price: $141.98 | Market Cap: $3.48T | Weekly Loss: 3.87% ⬇️

Nvidia pulled back this week after the recent surge following the US Presidential election results. It is normal to see profit-taking after such an aggressive move to the upside. Despite this drop in price, Nvidia released news that it will be partnering with Softbank to build Japan's top AI supercomputer using its Blackwell platform. Analysts at Morgan Stanley anticipate substantial revenue directly from Blackwell chips in the next quarter. However, these chips (which have experienced delays in the past) have encountered problems with accompanying servers that overheat, causing some customers to worry they will not have enough time to get new data centres up and running, the Information reported on Sunday.

Ticker: MSFT | Price: $415.00 | Market Cap: $3.09T | Weekly Loss: 1.80% ⬇️

Microsoft had a steady week of gains, until the broader market dropped on Friday after Jerome Powell spoke very honestly about the economy. Microsoft has been identified as a customer potentially impacted by the reported delays in the shipping of Nvidia's Blackwell AI chips due to the overheating issues in their servers. Furthermore, Elon Musk filed an amended lawsuit on Thursday night. This lawsuit was filed in federal court in Oakland, California, and accuses Microsoft and OpenAI of illegally seeking to monopolise the market for generative artificial intelligence and sideline competitors.

What To Watch This Week

Look out for Nvidia's earnings report, releasing on Wednesday

Look out for Unemployment Claims releasing on Thursday @ 8:30am EST

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Secret Source

Follow this link to watch an interview with Jared Tendler, the author of the best-selling book "The Mental Game of Trading".