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China Reopens Rare Earth Exports, Tech Giants Pour Billions Into AI Infrastructure

MarketDash Editorial Team
21 days ago
China suspends its ban on critical tech metals to the U.S. following Trump-Xi talks. Meanwhile, Microsoft commits $10 billion to AI data centers in Portugal and Atlanta, while Alphabet invests $6.4 billion in German infrastructure as the AI arms race intensifies.

Trade Tensions Ease as China Reopens Critical Metals Pipeline

In a significant shift following what President Donald Trump called an "amazing meeting," China has suspended its nearly year-long ban on exports of gallium, germanium, and antimony to the United States. The country's Commerce Ministry announced the decision Sunday, marking a potential thaw in trade relations after the recent summit between Trump and Chinese President Xi Jinping.

These materials aren't exactly household names, but they're absolutely critical for semiconductor manufacturing, defense systems, and various high-tech applications. The ban had created supply chain headaches for American manufacturers, making this reversal potentially significant for the tech sector.

On the domestic front, Trump is dealing with aviation chaos, demanding that all air traffic controllers return to work as the nation's aviation system suffers another wave of mass flight cancellations. The disruptions stem from staffing shortages caused by the prolonged government shutdown, creating a mess for travelers and airlines alike.

Meanwhile, the administration is reportedly eyeing new regulations to curtail the influence of proxy advisory firms like Institutional Shareholder Services (ISS) and Glass Lewis. These firms wield considerable power in corporate governance, and any regulatory changes could reshape how shareholders vote on key company decisions.

Quarterly Results Paint Mixed Picture

Taiwan Semiconductor Manufacturing Company (TSM) shares climbed Monday after the chipmaking giant reported solid October financial results, demonstrating continued momentum in advanced chip demand. As the world's most important contract chipmaker, TSMC's performance offers a window into the broader semiconductor market's health.

Plug Power Inc. (PLUG) delivered a mixed bag, reporting quarterly losses of 12 cents per share—beating analyst expectations of a 13-cent loss—but revenue of $177.05 million fell short of the $179.53 million Street estimate. The hydrogen fuel cell company continues its balancing act between growth investments and profitability.

Quantum computing player Rigetti Computing Inc. (RGTI) also posted mixed results, with losses of three cents per share beating the four-cent loss estimate, though revenue of $1.94 million missed the $2.17 million consensus.

CoreWeave Inc. (CRWV), the AI infrastructure specialist, crushed expectations with third-quarter revenue of $1.36 billion versus estimates of $1.29 billion. The company posted an adjusted loss of just eight cents per share, significantly better than the projected 37-cent loss. With revenue backlog nearly doubling, CoreWeave is riding the AI infrastructure boom.

AST SpaceMobile Inc. (ASTS) had a rougher quarter, reporting losses of 45 cents per share that nearly doubled analyst expectations of 23 cents. Revenue of $14.73 million also missed the $19.93 million consensus, sending shares wobbling.

Rocket Lab Corp (RKLB) delivered strong results that sent shares higher, posting third-quarter revenue of $155.05 million against estimates of $151.75 million. The space launch company reported a loss of just three cents per share, crushing expectations for an 11-cent loss. With a new annual launch record potentially just days away, Rocket Lab continues expanding its presence in the commercial space sector.

PlayStation parent Sony Group (SONY) posted stronger-than-expected fiscal second-quarter 2025 results, buoyed by steady PlayStation 5 demand and robust performance in its music and chip businesses. The diversified electronics and entertainment giant continues benefiting from multiple revenue streams.

Tencent Music Entertainment (TME) reported third-quarter revenue of $1.19 billion, up 20.6% year-over-year and well ahead of the $1.11 billion analyst projection. The Chinese music streaming service is seeing robust growth in online music services, with a growing base of paying users helping cushion declining overall listener counts.

Consumer Tech Moves and Product Launches

Apple Inc. (AAPL) continues pushing forward with its decade-long satellite connectivity project, reportedly developing an array of innovative features to enhance its satellite services. The tech giant is thinking long-term about how iPhones might communicate when traditional cellular networks aren't available—a potentially game-changing capability for emergency situations and remote areas.

Sony (SONY) unveiled a lower-priced version of its flagship PlayStation 5, though it's exclusively available in Japan. The move appears designed to counter Nintendo's dominance in the Japanese market with a more accessible price point.

Alibaba Group Holding (BABA) shares jumped on reports that the Chinese e-commerce giant is restructuring its mobile artificial intelligence app, positioning it as a potential competitor to ChatGPT. Alibaba is clearly not content to let others dominate the consumer AI space.

The Semiconductor Sector Heats Up

Taiwan Semiconductor (TSM) is reportedly facing a supply crunch for its cutting-edge 2-nanometer chips, with Apple (AAPL) having already secured more than half of the foundry's 2026 capacity. This booking pattern underscores Apple's aggressive push to maintain its edge in mobile chip performance—and the intense competition for the most advanced manufacturing capacity.

Taiwan's government is throwing its full support behind Taiwan Semiconductor's first European chip plant, with former president Tsai Ing-wen visiting the Dresden, Germany fab site Tuesday to emphasize the strategic importance of the facility. The plant represents a major step in diversifying chip manufacturing beyond Asia.

SoftBank Group has raised over $15 billion by offloading high-profile stakes in T-Mobile US Inc. (TMUS) and Nvidia Corp. (NVDA). The Japanese conglomerate is redirecting this capital toward AI investments, betting big on artificial intelligence as the next transformative technology wave.

In a notable personnel move, Yann LeCun, chief artificial intelligence scientist at Meta Platforms Inc. (META), is reportedly planning to leave the company to launch his own startup. LeCun is one of the pioneers of deep learning, so his departure and new venture will be closely watched in AI circles.

Micron Technology Inc. (MU) has begun shipping qualification samples of its automotive Universal Flash Storage (UFS) 4.1 solution to customers worldwide. The new chip aims to make in-car AI systems and safety alerts twice as fast, addressing the growing computational demands of modern vehicles packed with sensors and AI-powered features.

The AI Infrastructure Build-Out Accelerates

Microsoft Corp (MSFT) is going all-in on AI infrastructure with a $10 billion commitment to build an artificial intelligence data center along Portugal's coast. The facility represents Microsoft's push for greater AI independence and expanded computing capacity.

But Microsoft isn't stopping there. The company is launching an AI "super factory" in Atlanta—a massive two-story complex designed to link seamlessly with similar hubs across its Fairwater network to deliver enormous computing power. The facility will support both OpenAI's models and Elon Musk's xAI, demonstrating Microsoft's strategy of building infrastructure that can serve multiple AI platforms.

Not to be outdone, Alphabet (GOOGL) has earmarked 5.5 billion euros ($6.41 billion) for infrastructure and data center capacity in Germany. The investment underscores how tech giants are racing to build the physical infrastructure needed to train and run increasingly powerful AI models.

On the security front, Google has filed a lawsuit against a Chinese cybercriminal network accused of orchestrating extensive text-message phishing attacks. The "Lighthouse" scheme allegedly targeted millions of U.S. credit cards, highlighting the ongoing cat-and-mouse game between tech companies and sophisticated cybercriminals.

Advanced Micro Devices Inc (AMD) shares popped after the company projected greater than 35% revenue compound annual growth over the next three to five years. The chipmaker is citing accelerating AI momentum as the driver, positioning itself as a key beneficiary of the AI infrastructure boom alongside rival Nvidia.

International Business Machines Corp. (IBM) announced a series of quantum computing milestones at its annual Quantum Developer Conference. The company is making progress toward achieving quantum advantage by 2026 and fault-tolerant quantum computing by 2029—ambitious goals that could unlock entirely new computational capabilities.

Synopsys Inc (SNPS) disclosed plans to cut about 10% of its workforce, roughly 2,000 employees, to redirect resources toward higher-growth areas. The move follows the company's $35 billion acquisition of Ansys, as Synopsys reshapes its business focus.

Automotive Sector Updates

Tesla Inc. (TSLA) is dealing with personnel changes and regulatory issues. The company's Cybertruck and Model 3 program manager announced his departure amid sluggish Cybertruck sales figures, calling it one of the "hardest decisions of my life." Separately, Tesla stock declined after U.S. safety regulators announced a nationwide recall affecting thousands of the company's Powerwall 2 energy storage systems.

General Motors Co. (GM) has kicked off production of the Chevrolet Bolt EV, the company's most affordable electric vehicle in the U.S. at $29,000. The move seems somewhat counterintuitive given GM's recent emphasis on gasoline vehicles, but represents a $1.6 billion bet on maintaining an entry-level EV offering.

DoorDash, Inc. (DASH) and Coco Robotics are expanding their partnership to scale robot-powered deliveries across Los Angeles, Chicago, and for the first time, Miami. The autonomous delivery push represents DoorDash's bet that robots can economically handle certain delivery routes, particularly in dense urban areas.

AI Ethics and Psychology Concerns

Perplexity CEO Aravind Srinivas issued a warning about AI-powered companionship apps, cautioning that these services may pose psychological risks as users increasingly immerse themselves in virtual relationships. As people spend hours interacting with AI companions, questions about manipulation and psychological dependency are moving from theoretical to practical concerns. It's a reminder that the AI revolution isn't just about technical capabilities—it's also about understanding the human impact of these increasingly sophisticated systems.

Back to News

China Reopens Rare Earth Exports, Tech Giants Pour Billions Into AI Infrastructure

MarketDash Editorial Team
21 days ago
China suspends its ban on critical tech metals to the U.S. following Trump-Xi talks. Meanwhile, Microsoft commits $10 billion to AI data centers in Portugal and Atlanta, while Alphabet invests $6.4 billion in German infrastructure as the AI arms race intensifies.

Trade Tensions Ease as China Reopens Critical Metals Pipeline

In a significant shift following what President Donald Trump called an "amazing meeting," China has suspended its nearly year-long ban on exports of gallium, germanium, and antimony to the United States. The country's Commerce Ministry announced the decision Sunday, marking a potential thaw in trade relations after the recent summit between Trump and Chinese President Xi Jinping.

These materials aren't exactly household names, but they're absolutely critical for semiconductor manufacturing, defense systems, and various high-tech applications. The ban had created supply chain headaches for American manufacturers, making this reversal potentially significant for the tech sector.

On the domestic front, Trump is dealing with aviation chaos, demanding that all air traffic controllers return to work as the nation's aviation system suffers another wave of mass flight cancellations. The disruptions stem from staffing shortages caused by the prolonged government shutdown, creating a mess for travelers and airlines alike.

Meanwhile, the administration is reportedly eyeing new regulations to curtail the influence of proxy advisory firms like Institutional Shareholder Services (ISS) and Glass Lewis. These firms wield considerable power in corporate governance, and any regulatory changes could reshape how shareholders vote on key company decisions.

Quarterly Results Paint Mixed Picture

Taiwan Semiconductor Manufacturing Company (TSM) shares climbed Monday after the chipmaking giant reported solid October financial results, demonstrating continued momentum in advanced chip demand. As the world's most important contract chipmaker, TSMC's performance offers a window into the broader semiconductor market's health.

Plug Power Inc. (PLUG) delivered a mixed bag, reporting quarterly losses of 12 cents per share—beating analyst expectations of a 13-cent loss—but revenue of $177.05 million fell short of the $179.53 million Street estimate. The hydrogen fuel cell company continues its balancing act between growth investments and profitability.

Quantum computing player Rigetti Computing Inc. (RGTI) also posted mixed results, with losses of three cents per share beating the four-cent loss estimate, though revenue of $1.94 million missed the $2.17 million consensus.

CoreWeave Inc. (CRWV), the AI infrastructure specialist, crushed expectations with third-quarter revenue of $1.36 billion versus estimates of $1.29 billion. The company posted an adjusted loss of just eight cents per share, significantly better than the projected 37-cent loss. With revenue backlog nearly doubling, CoreWeave is riding the AI infrastructure boom.

AST SpaceMobile Inc. (ASTS) had a rougher quarter, reporting losses of 45 cents per share that nearly doubled analyst expectations of 23 cents. Revenue of $14.73 million also missed the $19.93 million consensus, sending shares wobbling.

Rocket Lab Corp (RKLB) delivered strong results that sent shares higher, posting third-quarter revenue of $155.05 million against estimates of $151.75 million. The space launch company reported a loss of just three cents per share, crushing expectations for an 11-cent loss. With a new annual launch record potentially just days away, Rocket Lab continues expanding its presence in the commercial space sector.

PlayStation parent Sony Group (SONY) posted stronger-than-expected fiscal second-quarter 2025 results, buoyed by steady PlayStation 5 demand and robust performance in its music and chip businesses. The diversified electronics and entertainment giant continues benefiting from multiple revenue streams.

Tencent Music Entertainment (TME) reported third-quarter revenue of $1.19 billion, up 20.6% year-over-year and well ahead of the $1.11 billion analyst projection. The Chinese music streaming service is seeing robust growth in online music services, with a growing base of paying users helping cushion declining overall listener counts.

Consumer Tech Moves and Product Launches

Apple Inc. (AAPL) continues pushing forward with its decade-long satellite connectivity project, reportedly developing an array of innovative features to enhance its satellite services. The tech giant is thinking long-term about how iPhones might communicate when traditional cellular networks aren't available—a potentially game-changing capability for emergency situations and remote areas.

Sony (SONY) unveiled a lower-priced version of its flagship PlayStation 5, though it's exclusively available in Japan. The move appears designed to counter Nintendo's dominance in the Japanese market with a more accessible price point.

Alibaba Group Holding (BABA) shares jumped on reports that the Chinese e-commerce giant is restructuring its mobile artificial intelligence app, positioning it as a potential competitor to ChatGPT. Alibaba is clearly not content to let others dominate the consumer AI space.

The Semiconductor Sector Heats Up

Taiwan Semiconductor (TSM) is reportedly facing a supply crunch for its cutting-edge 2-nanometer chips, with Apple (AAPL) having already secured more than half of the foundry's 2026 capacity. This booking pattern underscores Apple's aggressive push to maintain its edge in mobile chip performance—and the intense competition for the most advanced manufacturing capacity.

Taiwan's government is throwing its full support behind Taiwan Semiconductor's first European chip plant, with former president Tsai Ing-wen visiting the Dresden, Germany fab site Tuesday to emphasize the strategic importance of the facility. The plant represents a major step in diversifying chip manufacturing beyond Asia.

SoftBank Group has raised over $15 billion by offloading high-profile stakes in T-Mobile US Inc. (TMUS) and Nvidia Corp. (NVDA). The Japanese conglomerate is redirecting this capital toward AI investments, betting big on artificial intelligence as the next transformative technology wave.

In a notable personnel move, Yann LeCun, chief artificial intelligence scientist at Meta Platforms Inc. (META), is reportedly planning to leave the company to launch his own startup. LeCun is one of the pioneers of deep learning, so his departure and new venture will be closely watched in AI circles.

Micron Technology Inc. (MU) has begun shipping qualification samples of its automotive Universal Flash Storage (UFS) 4.1 solution to customers worldwide. The new chip aims to make in-car AI systems and safety alerts twice as fast, addressing the growing computational demands of modern vehicles packed with sensors and AI-powered features.

The AI Infrastructure Build-Out Accelerates

Microsoft Corp (MSFT) is going all-in on AI infrastructure with a $10 billion commitment to build an artificial intelligence data center along Portugal's coast. The facility represents Microsoft's push for greater AI independence and expanded computing capacity.

But Microsoft isn't stopping there. The company is launching an AI "super factory" in Atlanta—a massive two-story complex designed to link seamlessly with similar hubs across its Fairwater network to deliver enormous computing power. The facility will support both OpenAI's models and Elon Musk's xAI, demonstrating Microsoft's strategy of building infrastructure that can serve multiple AI platforms.

Not to be outdone, Alphabet (GOOGL) has earmarked 5.5 billion euros ($6.41 billion) for infrastructure and data center capacity in Germany. The investment underscores how tech giants are racing to build the physical infrastructure needed to train and run increasingly powerful AI models.

On the security front, Google has filed a lawsuit against a Chinese cybercriminal network accused of orchestrating extensive text-message phishing attacks. The "Lighthouse" scheme allegedly targeted millions of U.S. credit cards, highlighting the ongoing cat-and-mouse game between tech companies and sophisticated cybercriminals.

Advanced Micro Devices Inc (AMD) shares popped after the company projected greater than 35% revenue compound annual growth over the next three to five years. The chipmaker is citing accelerating AI momentum as the driver, positioning itself as a key beneficiary of the AI infrastructure boom alongside rival Nvidia.

International Business Machines Corp. (IBM) announced a series of quantum computing milestones at its annual Quantum Developer Conference. The company is making progress toward achieving quantum advantage by 2026 and fault-tolerant quantum computing by 2029—ambitious goals that could unlock entirely new computational capabilities.

Synopsys Inc (SNPS) disclosed plans to cut about 10% of its workforce, roughly 2,000 employees, to redirect resources toward higher-growth areas. The move follows the company's $35 billion acquisition of Ansys, as Synopsys reshapes its business focus.

Automotive Sector Updates

Tesla Inc. (TSLA) is dealing with personnel changes and regulatory issues. The company's Cybertruck and Model 3 program manager announced his departure amid sluggish Cybertruck sales figures, calling it one of the "hardest decisions of my life." Separately, Tesla stock declined after U.S. safety regulators announced a nationwide recall affecting thousands of the company's Powerwall 2 energy storage systems.

General Motors Co. (GM) has kicked off production of the Chevrolet Bolt EV, the company's most affordable electric vehicle in the U.S. at $29,000. The move seems somewhat counterintuitive given GM's recent emphasis on gasoline vehicles, but represents a $1.6 billion bet on maintaining an entry-level EV offering.

DoorDash, Inc. (DASH) and Coco Robotics are expanding their partnership to scale robot-powered deliveries across Los Angeles, Chicago, and for the first time, Miami. The autonomous delivery push represents DoorDash's bet that robots can economically handle certain delivery routes, particularly in dense urban areas.

AI Ethics and Psychology Concerns

Perplexity CEO Aravind Srinivas issued a warning about AI-powered companionship apps, cautioning that these services may pose psychological risks as users increasingly immerse themselves in virtual relationships. As people spend hours interacting with AI companions, questions about manipulation and psychological dependency are moving from theoretical to practical concerns. It's a reminder that the AI revolution isn't just about technical capabilities—it's also about understanding the human impact of these increasingly sophisticated systems.