AnalytixInsight

Last week, Dow Jones rose 2.5%, S&P 500 gained 4.6%, and Nasdaq composite was up 6.7%. Megacaps, like Meta, Microsoft, Apple and Amazon still are below recent highs and their upcoming earnings reports this week will provide insight into numerous demand drivers, including cloud computing spend, AI capex, e-commerce, advertising, consumer tech demand — and of course tariff impacts. Neuralink is seeking US$500 million at an US$8.5 billion valuation, intensifying competition in brain-computer interfaces. Alphabet reported steady Q1 revenue growth of 12%, despite slowing search revenue amid rising AI competition from OpenAI’s ChatGPT. ServiceNow exceeded revenue forecasts, driven by software subscriptions and internal AI efficiencies, boosting its stock after-hours. Tesla faced a challenging quarter, with profits plunging 66% due to reduced automotive sales and controversial CEO Musk’s political affiliations. Apple plans to shift all U.S.-sold iPhone production to India by 2026, reducing reliance on China amid escalating tariffs. Intel will reportedly cut over 20% of staff amid ongoing restructuring. Boeing has agreed to sell parts of its digital aviation unit to private equity group Thoma Bravo for US$10.55 billion. Amazon’s competitor to SpaceX’s Starlink, known as Project Kuiper, is struggling to scale up production of its satellites to hit a key U.S. government deadline. In regulatory news, Google abandoned its cookie-removal plan, while the EU fined Apple and Meta Platforms under new digital competition laws. FTC sued Uber over alleged deceptive billing practices related to its Uber One subscription. Temu and Shein increased U.S. prices ahead of tariff changes, reflecting ongoing trade uncertainties.In Canada, investment bankers applauded new securities rules aimed at reinvigorating the IPO market. In Sophic Capital client news, Cybeats announced its participation at the upcoming RSAC™ 2025 Conference, highlighting its SBOM Studio cybersecurity platform. Cybeats also expanded its SBOM Consumer product, entering new sectors such as healthcare, finance, energy, telecom, and defense, and launching pilots with a U.S. defense agency and Orange S.A.

Last week, Dow Jones fell 2.7%, S&P 500 lost 1.5%, Nasdaq declined 2.6%. U.S. startup funding surged 116% Y/Y to US$91.5 billion in Q1 2025, dominated by AI startups including OpenAI, Anthropic, and Grok. Figma confidentially filed for an IPO after its failed acquisition by Adobe, boasting an annual recurring revenue of US$900 million. Autonomous trucking firm Kodiak Robotics announced a SPAC merger, valued at US$2.5 billion, backed by investors ARK and Soros Fund Management. Nvidia anticipates a US$5.5 billion charge due to new U.S. restrictions on AI chip sales to China, creating uncertainty despite earlier tariff exemptions. ASML missed quarterly order expectations amid similar tariff uncertainty, although demand for AI-driven chipmaking remains robust. TSMC reported strong Q1 revenues and profits, seeing no immediate impact from U.S. tariffs but cautioned future clarity. Tesla’s California EV market share dipped below 50%, impacted by political controversies surrounding CEO Elon Musk. Palantir secured a significant AI software contract with NATO for military intelligence processing. California considered legislation lifting its nuclear power moratorium to support energy-intensive AI data centers. Google faces potential dismantling of its ad-tech monopoly following an antitrust ruling. Meta Platforms’ share of the amount of time people spend on social media apps has “declined…potentially meaningfully,” Meta Platforms CEO Mark Zuckerberg testified on Wednesday afternoon. In Canada, in news pertaining to Sophic Capital clients, Kraken Robotics was highlighted as a hot pick in Canadian small caps by a portfolio manager. Plurilock provided a corporate update, emphasizing a strategic shift towards high-margin software solutions and expanding commercial markets for cybersecurity.

In a volatile week, stocks rebounded from 2025 lows. 2025 volatility has not yet resulted in as many +/- 3% days as we saw in March 2020 (~15 days that month). Aided by Wednesday’s historic gains, Dow Jones was up 4.95% last week, S&P 500 gained 5.7%, while NASDAQ rose 7.3%. Notable tech gains included Apple, Nvidia, and Tesla. However, due to increased tariffs, Micron Technology raised prices on certain memory products, while Apple rapidly shipped 600 tons of iPhones from India to avoid immediate tariff impacts. Fearing a potential price increase, many customers reportedly flocked to Apple Stores to buy new iPhones and other products before they get more expensive. The president of the European Commission said Europe could tax digital ad revenues of Meta Platforms and Google in retaliation for US tariffs. MicroStrategy, said it will report an unrealized loss of US$5.91 billion from its bitcoin holdings, as a cryptocurrency selloff wiped out most of its recent gains. Broadcom is launching a new share buyback program of up to US$10 billion. The U.S. Secretary of Defense directed the Department of Defense to cancel US$5.1 billion in contracts with consulting firms including Deloitte, Accenture and Booz Allen Hamilton as part of efforts to slash government spending. Amazon CEO Andy Jassy forecasted AI costs would decline despite the company’s aggressive investments, earmarking up to US$100 billion for AI-related projects. Google Cloud introduced new AI tools and unveiled the Ironwood chip designed for complex reasoning tasks. In Canada, Sophic Client, Kraken Robotics secured $11 million in new orders for its underwater batteries, pushing its year-to-date battery orders to $45 million. Kraken also announced a new synthetic aperture sonar service for offshore energy markets launching July 2025.