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As civil war-torn Myanmar struggles to recover from a devastating earthquake, the United States is facing criticism that it has abandoned the country in its hour of need – and is ceding global leadership on disaster response to its rivals.

The 7.7-magnitude quake, which struck on March 28 and killed thousands, is the first major natural disaster since the Trump administration canceled billions of dollars in lifesaving programs under its drive to dismantle the US Agency for International Development (USAID), the main US humanitarian aid agency.

USAID used to administer most of America’s foreign aid – 61% of the $71 billion total budget in 2023. But since taking office in January, the Trump administration has laid off thousands of its employees, and cut 83% of USAID programs – including staff and programs working to help Myanmar. On Wednesday, they also announced that all foreign staff would be laid off.

Those cuts have been felt in the meager US response to the Myanmar quake, according to experts, exposing a void in international relief measures for major catastrophes.

“Not only did the United States only send a paltry amount of assistance, it sent only three workers, which then subsequently were fired while they were on the ground in Myanmar providing assistance.”

At least 3,550 people died and nearly 5,000 others were injured when the earthquake hit the impoverished Southeast Asian nation – which has already endured years of civil war since a military coup in 2021, leaving nearly 20 million people in need of aid.

The military government does not control all of the resource-rich country, as it battles a patchwork of powerful ethnic militias and pro-democracy groups.

“The needs are massive right now,” said Matthew Smith, CEO of human rights organization Fortify Rights, based in neighboring Thailand. “And unfortunately, the aid effort is not as robust as it could or should be.”

Two days after the quake, the US pledged $2 million in assistance to Myanmar – later increased to a total of $9 million – for emergency shelter, food, medical care and water, according to a post on X from State Department spokesperson Tammy Bruce.

But Smith says that with minimal staffing on the ground, it is unclear how that money would be channeled.

“There’s nobody to administer that aid, there (are) no aid workers on the ground, there’s no deployment happening,” Smith said. “To so drastically cut it the way that they have was reckless and irresponsible.”

Secretary of State Marco Rubio defended the American response in Brussels last week. The US is “not the government of the world,” he said, adding that although Washington would continue to provide some humanitarian assistance, others should do more.

“There are a lot of other countries in the world and everyone should pitch in,” Rubio said. “I don’t think it’s fair to assume that the United States needs to continue to share the burden (of) 60-70% of humanitarian aid around the world.”

Comparisons have been made to the 7.8-magnitude earthquake that struck Turkey and Syria in February 2023, when the US deployed hundreds of relief workers and pledged $185 million in assistance.

“In the past, the US government has certainly been one of the most effective response teams to mass-scale natural disasters,” Smith said.

‘Strategic mistake’

Multiple countries are filling the gap left by Washington’s limited earthquake response, including China, Russia and India – which have sent aid, rescue teams and mobile medical units to Myanmar.

Tom Fletcher, the United Nations’ humanitarian affairs chief – who spent several days visiting the areas worst affected by the quake – said the world “can’t be reliant on US support alone.”

This year’s humanitarian appeal from the UN’s Office for the Coordination of Humanitarian Affairs (OCHA) has only been 7% funded – which will hamper relief efforts around the world, he added.

“I’ve been in touch with China, with Russia, other countries that are moving aid in to try to ensure that we get as much global support as possible,” Fletcher said.

Beyond the humanitarian impact of the US retreat on assistance, ex-USAID official Bencosme said ceding this ground to adversaries such as Beijing and Moscow is a “strategic mistake” from a soft power perspective.

“Other actors will fill in that leadership void, which makes it difficult for the US to leverage international assistance or international help in the future,” Bencosme said.

Smith, of Fortify Rights, said some of the countries providing help to Myanmar are also facilitating the military’s attacks on rebel-held areas, which have continued since the disaster.

“It’s deeply troubling, ironic sadly, in some ways that the same countries that are providing the Myanmar military junta with weapons that the junta is using to kill civilians, those are the same countries now arriving into Myanmar to help with the aid effort,” he said.

Reduced to ashes

For the homeless residents of Mandalay’s Sein Pan district, in the epicenter of the earthquake zone, aid can’t come fast enough.

The informal settlement of wooden shacks was built on a landfill dump, and the tremors ignited a huge fire which spread rapidly, residents said.

“The fireball emerged from the ground immediately after the earthquake,” said resident Kyi Thein, as she stood on the charred remains of her home. “The fire spread out across the district and wiped out all 400 houses. Everybody ran away and now nothing remains.”

“I hope the government authorities will provide aid to us,” Kyi Thein said. “We are now depending on private donors for a living, but we need support.”

Another Sein Pan resident, who did not wish to share her name for security reasons, said the flames were so intense that they were unable to save any possessions.

“The entire neighborhood was reduced to ashes,” she said. “I’m relieved to have survived. I just want my home back.”

In the quake’s aftermath, junta leader Gen. Min Aung Hlaing made a rare request for international aid. But the UN human rights office says the military has also been using its routine strategy of blocking and controlling access to aid and humanitarian workers.

Two weeks after the disaster struck, workers in the impacted areas are no longer looking for survivors – they have now switched to a recovery and aid operation.

But the challenges of doing so without the support they need are growing.

“We need to use proper machines to recover bodies under the collapsed buildings,” said 41-year-old Ei Mon Khine, an official from a social assistance association who was working on the scene. “When the rescuers do not arrive in time, the dead bodies become spoiled and deformed,” making it harder to recover the remains, she said.

People who have lost their homes are also dealing with temperatures of more than 100 degrees Fahrenheit (38 degrees Celsius), along with thunderstorms that rolled through last weekend.

“There was heavy wind and rain, and you have people living in tents outside on the street, so it made an already difficult situation even worse,” said Sara Netzer, Myanmar country director for the UN Office for Project Services (UNOPS), based in Yangon.

“We need to ensure that we are already thinking about how we can build some temporary shelter for people, and that will also help prevent this spread of disease as well.”

Many quake-hit communities in Mandalay and the neighboring Sagaing region were already hosting those displaced by the civil war, she added, showing the “resiliency” of Myanmar, but increasing the need for help before more heavy rains arrive.

“I think it’s illustrative of the kind of race against time that we have right now, before the monsoon season starts here in Myanmar,” Netzer said.

This post appeared first on cnn.com

Chinese leader Xi Jinping has said his nation is “not afraid,” in his first public comments on the escalating trade war with the United States that has tanked international markets and fueled fears of a global recession.

“There are no winners in a trade war, and going against the world will only lead to self-isolation,” Xi told Spanish Prime Minister Pedro Sanchez in Beijing on Friday, according to state broadcaster CCTV.

“For over 70 years, China’s development has relied on self-reliance and hard work — never on handouts from others, and it is not afraid of any unjust suppression,” Xi added. “Regardless of how the external environment changes, China will remain confident, stay focused, and concentrate on managing its own affairs well.”

This is a developing story and will be updated.

This post appeared first on cnn.com

Japan’s largest yakuza crime syndicate has pledged to end its longstanding war with a rival faction and refrain from causing “trouble,” authorities said, as the mafia-like groups contend with falling membership and increased police crackdowns.

The Yamaguchi-gumi, one of the world’s largest and wealthiest crime gangs, has been embroiled in a bloody feud with splinter groups since 2015, when more than a dozen factions broke away to form the Kobe Yamaguchi-gumi.

Since then, intensifying violence between the two warring crime organizations has seen rival gangsters gunned down or stabbed in dozens of incidents, according to police.

The armed conflict, often erupting on public streets in cities across central and western Japan, has put pressure on authorities to toughen restrictions on the gangs.

“Yakuza” is a blanket term for Japan’s organized crime groups, which sit in a gray area in the country. Though they are not outlawed, the groups are regulated and monitored by authorities.

In 2020, police formally designated the Yamaguchi-gumi and its splinter group as gangs at war – giving officers the ability to increase surveillance, restrict their activities, including prohibiting the use of their offices and ability to raise funds.

“Their conflicts have become serious and unpredictable,” the National Police Agency said in 2021. In the past five years, police have also put several other gangs under close surveillance.

It is unclear whether the rival splinter group, Kobe Yamaguchi-gumi, has responded to the ceasefire pledge. Police said they would be “closely monitoring the movements of both groups” as the declaration to end the turf war may be one-sided.

Membership to yakuza groups across Japan has been in decline over recent decades. In 2024, the number of members of organized crime syndicates stood at 18,800, hitting a record low and falling below 20,000 for the first time, according to police data.

Those official figures show the number of active members of the Yamaguchi-gumi gang have almost halved since 2014 – falling from 6,000 then to just 3,300 at the end of last year. The Kobe Yamaguchi-gumi had around 120 members last year.

As yakuza membership falls, however, Japanese authorities are contending with a new criminal phenomenon: the “tokuryu.”

These anonymous gangs are not affiliated with a yakuza family, operating individually or in ad hoc groups. About 10,000 members of tokuryu gangs were investigated last year, with police linking them to violent robberies in Tokyo, and fraud schemes involving romance scams and investments on social media.

This post appeared first on cnn.com

A major Australian IVF clinic has apologized for giving the wrong embryo to a woman who then gave birth to another couple’s baby, blaming the mix-up on “human error.”

Monash IVF, which operates more than 100 clinics across Australia, said in a statement staff were “devastated” by the mistake, believed to be the first of its kind in Australia.

It’s not clear whether either of the couples suspected a mix-up before the clinic discovered the error in February.

“On behalf of Monash IVF, I want to say how truly sorry I am for what has happened,” said CEO Michael Knaap in the statement.

“We will continue to support the patients through this extremely distressing time,” he added.

Monash IVF has not named the couples involved, nor has it responded to questions about when the baby was born, or who has custody of the child, out of respect for the couples’ privacy.

The error occurred at Monash IVF’s Brisbane clinic, in the state of Queensland, where the law recognizes the birth mother and her partner as the child’s legal parents.

Alex Polyakov, a clinical associate professor at the University of Melbourne and a fertility consultant at Melbourne’s Royal Women’s Hospital, said it was the first incident of its kind in four decades of IVF in Australia.

“Australia’s regulatory framework for assisted reproductive technology is internationally recognized for its stringency and thoroughness,” he said in written comments.

“The probability of such an event occurring is so low that it defies statistical quantification.”

How did it happen?

The mistake was discovered in February after the birth parents requested to transfer their remaining embryos to another IVF provider.

After an extra embryo was found in their storage compartment, an internal inquiry discovered they’d received the wrong embryo.

It’s not clear how the error was made but according to the Monash IVF statement, another patient’s embryo was “incorrectly thawed and transferred to the birth parents.”

Knaap, the company’s CEO, said he was confident it was “an isolated incident.”

“We are reinforcing all our safeguards across our clinics – we also commissioned an independent investigation and are committed to implementing its recommendations in full,” he added.

The Fertility Society of Australia and New Zealand (FSANZ) said in a statement that it was “aware of the serious incident” and its immediate thoughts were with the families affected.

It said such incidents are rare and require “the highest standards of transparency.”

Similar errors have been made in the United States, including a recent case where a White woman discovered she’d been given the wrong embryo after giving birth to a Black infant.

This is not the first time Monash IVF has been accused of wrongdoing.

Last year, the company agreed to pay 56 million Australian dollars ($35 million) to settle a class action suit brought by 700 former patients.

The patients alleged the company didn’t disclose the risk of false positives in genetic testing on embryos, which led them to discard potentially viable embryos.

This post appeared first on cnn.com

Taiwan prosecutors on Friday for the first time charged a Chinese ship captain with intentionally damaging undersea cables off the island in February, after a rise in sea cable malfunctions alarmed Taiwan officials amid tensions with China.

Prosecutors say the man was captain of the Chinese-crewed Hong Tai 58, registered in Togo, which Taiwanese authorities detained after suspecting the ship had dropped anchor near an undersea cable off southwestern Taiwan, damaging it.

The prosecutors’ office in the southern Taiwanese city of Tainan said they had charged the ship’s Chinese captain, whom they identified only by his family name, Wang, with being responsible for damaging the cable.

Wang has said he is innocent, but refused to provide details of the ship’s owner and “had a bad attitude”, the prosecutors said in a statement.

Seven other Chinese nationals detained at the same time will not be charged and will be transported to China, prosecutors said, adding that the case was the island’s first prosecution over damaging sea cables.

Reuters was not able to determine the ship’s ownership or immediately locate a lawyer representing the captain.

China’s Taiwan Affairs Office did not immediately respond to a request for comment. China has previously accused Taiwan of “manipulating” possible Chinese involvement in the case, saying it was casting aspersions before the facts were clear.

Taiwan has reported five cases of sea cable malfunctions this year, compared with three each in 2024 and 2023, according to its digital ministry.

Taiwan’s coast guard has in recent months stepped up efforts to protect its sea cables, including monitoring a “blacklist” of close to 100 China-linked ships registered to a country other than that of its owner near Taiwan, officials familiar with the matter told Reuters.

Taiwan said in January it suspected a China-linked ship of damaging an undersea cable off its northern coast; the ship owner denied the accusations.

Taiwan, which China claims as its own territory, has repeatedly complained about “grey zone” Chinese activities around the island, designed to pressure it without direct confrontation, such as balloon overflights and sand dredging.

Taipei was alarmed after another Chinese-linked ship was suspected of damaging a different cable this year, prompting the navy and other agencies to step up efforts to protect the undersea communication links, which are vital to the island’s connections to the rest of the world.

Taiwan, whose government rejects Beijing’s sovereignty claims, has pointed to similarities between what it has experienced and damage to undersea cables in the Baltic Sea following Russia’s invasion of Ukraine.

This post appeared first on cnn.com

Is the stock market on the verge of crashing or has it bottomed?

In this video, Joe Rabil uses moving averages and Fibonacci retracement levels on a longer-term chart of the S&P 500 to identify support levels that could serve as potential bottoms for the current market correction.

Understand why the 2025 stock market is different from the 2022 one and explore how the market drop can impact the SPY, QQQ, DIA, and IWM.

The video premiered on April 9, 2025. Click this link to watch on Joe’s dedicated page.

Archived videos from Joe are available at this link. Send symbol requests to stocktalk@stockcharts.com; you can also submit a request in the comments section below the video on YouTube. Symbol Requests can be sent in throughout the week prior to the next show.

Tariff turmoil continues sending the stock market into a turbulent spin. Tariffs went into effect at midnight, which sent equities and bond prices lower. Then before 1:30 PM ET Wednesday, President Trump announced that China would be slapped with 125% tariffs and the reciprocal tariffs are on pause for 90 days.

This was a huge turning point for the market. Without skipping a heartbeat, buyers rushed in and accumulated equities, especially large-cap growth stocks. The S&P 500 closed higher by 9.52%, the Nasdaq was up 12.16%, and the Dow was up 7.87%. Small and mid-cap stocks also saw substantial gains. 

Wednesday’s turnaround may have been the biggest one-day point gains in history for some of the broader stock market indexes but let’s look at the charts to see a clearer picture of what’s going on with this whacky stock market. 

A View of the Broader Stock Market

From a long-term perspective, the uptrend in the S&P 500, Nasdaq, and Dow are still intact. The weekly charts of the three indexes are also encouraging. But the daily charts are not yet screaming buy signals. Let’s start with the daily chart of the Nasdaq.

FIGURE 1. DAILY CHART OF NASDAQ COMPOSITE. The index has hit the resistance of its 21-day exponential moving average and breadth indicators in the lower panels show some breadth indicators are improving but not enough to suggest a bottom in the index.Chart source: StockCharts.com. For educational purposes. 

The Nasdaq touched its 21-day exponential moving average (EMA), which could be the first resistance level for it to overcome. The three breadth indicators in the lower panels—Nasdaq Composite Bullish Percent Index (BPI), NASDAQ Advance-Decline Line, and percentage of stocks trading above the 200-day moving average of the Nasdaq—are improving slightly but they are not showing signs of bullishness. 

Wednesday’s best-performing S&P sector was Technology followed by Consumer Discretionary. Rotation into these sectors implies risk-on investing. However, since the Nasdaq’s daily trend is still down, don’t let your emotions guide your investment decisions. Look for confirming signals before entering any long positions. 

The S&P 500 daily chart is not much different (see below). The index came close to touching its 21-day EMA. If the index opens higher on Thursday, watch this EMA closely. A break above it would be a positive move but there still needs to be a series of higher highs and higher lows for an uptrend to be established. 

FIGURE 2. DAILY CHART OF THE S&P 500 INDEX. It’s worth watching the 21-day EMA in the S&P 500. If the index breaks through that level and starts showing signs of an uptrend and the market breadth indicators suggest increasing bullish participation, it may be time to think about adding positions. But, we’re far from that point. Chart source: StockCharts.com. For educational purposes.

The market breadth indicators in the lower panels are showing some signs of improvement. The percentage of stocks trading above the 200-day moving average of the S&P 500 is at 31.80, which is encouraging but you want to see it at or above 50%. Like the Nasdaq, the S&P 500 is showing no clear signs of an uptrend, so tread carefully.

Replace the symbol in either of the above charts with $INDU and you’ll see that the Dow is in a similar position as the Nasdaq and S&P 500. 

Bonds to the Rescue?

Although equities showed a lot of movement on Wednesday, don’t lose sight of the shenanigans in the bond world. The 10-year U.S. Treasury yields rose as high as 4.47% but pulled back and closed at 4.40%, which is still relatively high. The iShares 20+ Year Treasury Bond ETF (TLT) closed 3.24% higher. 

This price action in TLT is worth watching closely. Bond prices fall when yields rise and Wednesday started out with stock and bond prices falling. This is unusual since bond prices usually rise when stocks fall. There was a lot of bond selling taking place the previous night which may have been due to the unwind of the basis trade by hedge funds. Since we’re technical analysts, instead of getting into the nitty gritty details of this hedge fund strategy, let’s analyze the five-year weekly chart of TLT.

FIGURE 3. FIVE-YEAR WEEKLY CHART OF TLT. This bond ETF has been in a downward trend for the last five years. Has its time come or will it linger in the depths of the abyss for longer? Chart source: StockCharts.com. For educational purposes.

Bond prices have been trending lower over the past five years and showing no signs of a reversal. Although TLT came off its lows, it still has a long way to go before showing modest signs of an uptrend. 

The Bottom Line 

Wednesday’s big turnaround didn’t change the big picture. We’re not out of the woods yet. And there’s more excitement to look forward to — the March CPI on Thursday morning and earnings season kicks off on Friday. A note about earnings — we probably won’t see much of an impact this quarter but keep your ear open for any chatter on how tariffs will affect profitability. 


Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

The first quarter of 2025 was dynamic and often volatile for the tech sector. Initial optimism, fueled by investor enthusiasm after a strong 2024, quickly gave way to economic headwinds and market anxieties.

Concerns over monetary policy, global trade tensions and individual company performances led to variations in tech stock valuations, with the Magnificent Seven ultimately experiencing losses by March.

However, Q1 also brought groundbreaking developments in artificial intelligence (AI), intense competition in the semiconductor industry and new developments in AI agents and robotics.

How did tech stocks perform in Q1?

The performance of major tech companies was influenced by a confluence of events and trends in Q1.

The sector began the year in positive territory, reflecting optimism from investors who saw US President Donald Trump’s November victory as a boon for business. However, this upward trend proved short-lived.

Economic headwinds, most notably cautious monetary policy and investor anxieties about global trade disruption, triggered a market downturn that resulted in periods of tech stock selloffs.

The tech market did demonstrate some signs of recovery in the final week of the quarter.

AI results impact major tech players

Outside overall market impacts, tech companies experienced their own fluctuations in Q1.

Intel (NASDAQ:INTC) was boosted by acquisition rumors and a stronger-than-expected Q4 performance, after starting the year down nearly 60 percent from January 2024. Leadership changes mid-March and reports of a restructuring to its chip-manufacturing business further improved the firm’s share price performance.

More broadly, the market’s response to earnings reports highlighted the significant impact of cloud computing, AI investment strategies and future guidance for Big Tech companies.

Amazon (NASDAQ:AMZN), for example, fell after its results revealed weakness in its cloud computing unit despite revenue that exceeded estimates. Similarly, Alphabet (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) saw their share prices decline after capacity restraints were cited as a limitation for both companies.

In contrast, Meta Platforms (NASDAQ:META) surged after it announced substantial AI investments and released results that exceeded expectations. Meanwhile, concerns about Apple’s (NASDAQ:AAPL) AI strategy and sales in Asia led to turbulence in its trading patterns throughout the quarter. Even NVIDIA’s (NASDAQ:NVDA) share price initially dipped following strong earnings, driven by market concerns about competition and geopolitical tensions.

Emergent player CoreWeave’s (NASDAQ:CRWV) journey to its initial public offering demonstrated the volatile and challenging nature of going public in the rapidly evolving AI sector. After its initial announcement revealed a 700 percent increase in 2024 revenue, the company made major moves leading up to its debut, acquiring Weights & Biases for US$1.7 billion before securing a five year, US$11.9 billion cloud services contract with OpenAI.

However, CoreWeave’s March 28 IPO coincided with a hotter-than-expected inflation reading, and the company raised roughly US$1 billion less than its target, with both the number of shares and share price lower than expected.

China’s DeepSeek makes AI market waves

Beyond individual company performances, the quarter was marked by key developments in AI.

The release of China’s open-source AI model, DeepSeek-R-1, created a significant market disruption when it was reported to perform comparably to models from OpenAI and Anthropic at a significantly lower training cost: US$5.6 million compared to the US$500 million OpenAI reportedly spent to train o1.

The market’s reaction resulted in a 17 percent loss to NVIDIA’s market cap, the largest single-day loss for any company on Wall Street. The Philadelphia Semiconductor Index (INDEXNASDAQ:SOX) lost 9.2 percent.

OpenAI’s Sam Altman expressed curiosity and excitement about the competitor, while others saw it as a development that could increase return on investment for companies using AI and drive further innovation.

“We still don’t know the details and nothing has been 100 percent confirmed … but if there truly has been a breakthrough in the cost to train models from US$100 million+ to this alleged US$6 million number this is actually very positive for productivity and AI end users,” said Jon Withaar, senior portfolio manager at Pictet Asset Management.

Since its release, DeepSeek has been noted to have potential issues with accuracy and security.

Other companies making strides in AI training speed this past quarter include Foxconn Technology (TPE:2354), which reportedly trained its large language model (LLM), FoxBrain, in four weeks.

Celestial AI secured funding to advance photonics technology for more efficient AI computing, and Cohere introduced Command A, an LLM focused on business needs and optimized for efficient inference.

Pluralis Research received funding for its work on decentralized AI systems and “protocol learning,” a method designed to enable collaborative and distributed AI model training.

NVIDIA’s chip-making competitors

Competition within the chip industry heated up in the first quarter as AI spending enthusiasm shifted to other semiconductor companies and custom chip development advanced.

Barclay’s (NYSE:BCS,LSE:BARC) analyst Thomas O’Malley reaffirmed his ‘buy’ rating for NVIDIA on January 20 and raised his price target to US$175, but warned that NVIDIA’s customers are looking for alternatives to its GPUs.

He identified Marvel Technology (NASDAQ:MRVL) and Broadcom (NASDAQ:AVGO) as NVIDIA’s biggest contenders, adjusting their price targets to US$150 and US$260, respectively.

For its part, Taiwan Semiconductor Manufacturing Company (TSMC) (NYSE:TSM) has continued to experience strong demand for its chip-making services. Its quarterly profits for Q4 2024 reached a record, and the company is anticipating strong revenue growth moving forward. The firm has planned significant investments in technology and capacity, including US$100 billion for new facilities to boost US chip production.

ASML Holding (NASDAQ:ASML), the sole producer of the EUV lithography machines crucial for advanced AI chips, also exceeded Q4 earnings expectations, resulting in a positive effect on its share price.

AI agents and other emerging tech

Looking ahead, the market for AI agents — autonomous entities that can take actions to achieve specific goals — is poised for expansion. At its annual GPU Technology Conference, held from March 17 to 21, NVIDIA’s CEO emphasized a shift from generative AI to physical AI, describing AI agents as a “multi-trillion dollar opportunity.’

Strategic acquisitions, such as ServiceNow’s intention to buy Moveworks, underscore the growing importance of agentic AI in enterprise solutions. Amazon Web Services is developing a team focused on developing agentic AI, betting on increased client spending for automation. Meta is gearing up to test AI agents for small businesses, and OpenAI is developing premium agent offerings for business and academic pursuits.

While these advancements are exciting, challenges remain, with Gartner predicting a sharp rise in AI agent-related security breaches by 2028. To address reliability, Microsoft is developing ‘deep reasoning agents.’

The first quarter of 2025 also signaled a major acceleration in robotics development, with Google’s new Gemini Robotics models and partnership with Apptronik indicating AI and robotic integration. The US$2 billion valuation for Kyle Vogt’s the Bot Company suggests the robotics sector is poised for growth and market expansion.

Advances like Eliza Wakes Up’s humanoid and Figure AI’s in-house development signal the potential for near-term commercial availability. Funding activity, with Field AI seeking a US$2 billion valuation and Aescape securing US$83 million in strategic funding, demonstrates investor confidence in the potential of robotics.

AI data centers signal growth

The massive investments in data centers announced in Q1 foreshadow an expansion of AI infrastructure.

The Trump administration has partnered with executives from Oracle (NYSE:ORCL), OpenAI and SoftBank (TSE:9984) for a four year, US$500 billion AI infrastructure project dubbed Stargate. MGX, an Abu Dhabi-based technology investment firm focused on AI, is another equity partner in the Stargate project.

Separately, MGX is a founding partner in the AI Infrastructure Partnership, a group that includes BlackRock (NYSE:BLK), Global Infrastructure Partners and Microsoft. It is reportedly aiming to invest up to US$100 billion in US and OECD AI infrastructure. NVIDIA and xAI joined the consortium in the first quarter.

This large-scale infrastructure development is mirrored by substantial investment and product development plans from individual tech giants. Apple, Amazon, Microsoft and Meta have all revealed plans for significant AI-related investments in the coming months that include data center builds and product releases, while NVIDIA has committed to spending ‘hundreds of billions of dollars in the US,’ emphasizing TSMC’s manufacturing role in supply chain resilience.

OpenAI is also reportedly finalizing the design for its first in-house AI chip, with a long-term goal of mass production at TSMC by 2026; it is also in talks to build its first data center for storage in Texas near the Stargate data center.

These developments point to a future where data centers become the battleground for AI dominance, with significant implications for energy consumption, hardware demand and technological advancement.

Investor takeaway

Wrapping up the quarter, Nick Mersch, portfolio manager at Purpose Investments, hosted an ‘ask me anything’ session on Reddit (NASDAQ:RDDT) to share insights on what investors should consider when evaluating tech stocks.

“The number one predictor of stocks over time is their earnings power. Invest in companies that are growing earnings more than the overall market and you will win. This is easy in theory but difficult in practice. You need to look at secular trends in order to skate to where the puck is going. It is much easier to pick a winner in a sector that has strong overall growth than picking through the rubble of a beaten-down industry,’ said Mersch.

“However, you do also have to recognize that sometimes, this is cyclical. That’s why I like to pick companies that are what I call ‘compounders.’ These are companies that are growing both top line (revenue) and bottom line (earnings) at a solid rate and are reinvesting in new growth avenues. At the end of the day, you need cash flow generative companies.’

Mersch added, “Look for three things — earnings, earnings, and earnings.”

Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.

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