Peak AI has not yet been reached

This is a report from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open provides investors with information on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

Cumulative S&P and Nasdaq gains
US stocks mostly rose on Mondaywith S&P 500 and Nasdaq Composite climbing two days in a row. Dear artificial intelligence Nvidia closed at a record high. General Europe Stoxx 600 index advanced 0.95%though it peaked after US President-elect Donald Trump rejected his tariff announcement may not be that serious as originally thought.

Foxconn shows that artificial intelligence is still popular
Foxconn, which trades as Hon Hai Precision Industrysaid on Sunday statement that the company’s fourth-quarter revenue, which rose 15% year over year, was the highest in the company’s history for that period. Foxconn’s numbers show that artificial intelligence is still popular, shipment of supplies Nvidia and other global semiconductor companies.

Partnership on the charging network for electric vehicles
Actions Volkswagen and Xpeng rose on Monday after the two firms announced a memorandum of understanding in which they pledged to open their respective superfast charging networks to each other’s customers. Volkswagen and Xpeng will also explore cooperation joint ultra-fast charging stationsthe companies said.

Trudeau resigns
Canadian Prime Minister Justin Trudeau said at a press conference on Monday that he would will step down from the reins of the ruling Liberal Party but will remain as prime minister until a new leader is chosen ahead of a general election due at the end of October. He added that Canada’s parliament will suspend its activities until March 24, when a vote of confidence will be held.

(PRO) Quality shares against rising rates
The The 10-year Treasury yield continued its rise until early 2025, which puts pressure on stocks. Michael Wilson, chief U.S. equity strategist at Morgan Stanley, advises investors to stick with quality stocks to weather any subsequent market turmoil. Here is a stock list which passed the test done by Wilson’s team.

Below is a glowing earnings report from an electronics manufacturer Microsoft announcement on Friday that he plans to to invest $80 billion in FY 2025 to build data centers capable of handling artificial intelligence workloads.

These reports suggest that companies are continuing to invest heavily in AI, and the peak is yet to be reached.

Investors are also looking forward to Nvidia CEO Jensen Huang’s appearance at the Consumer Electronics Show 2025 at around 11am Singapore time.

Amid such tailwinds, Nvidia shares jumped 3.4% — their third straight day of gains — to close at a record $149.43. The company’s shares rose further in after-hours trading and are currently hovering above the $150 level.

In a broader sense VanEck Semiconductor ETF jumped by more than 3%.

These moves helped propel the major averages forward. Heavy machinery Nasdaq Composite was the clear winner, rising 1.24%, while S&P 500 grew by 0.55%.

However, Art Dow Jones industrial index decreased by 0.06%. The index pared earlier gains built up on news that Trump might ease his import tariffs, which would benefit blue-chip companies such as those in the consumer sector.

Despite these upbeat reports and positive market developments on Monday, the year ahead still looks challenging.

“The market, I think, is pretty bullish on tech right now, expecting earnings growth of 20% this year versus 12.8% for the market … but estimates look restrictive,” said CFRA Research chief investment strategist Sam Stovall.

So the real test for AI is whether companies can use it to increase revenue, rather than just raising the price of picks and shovels in the sector.

— CNBC’s Ryan Brown, Jordan Naveth, Piya Singh and Tanaya Machil contributed to this report.