The Key Takeaways From HPE's Disappointing Sales Outlook

Chinese AI chipmaker Moore Threads Technology Co. successfully raised approximately $1.13 billion in its initial public offering (IPO), marking the second-largest onshore IPO in China this year, with a valuation of around $7.6 billion and an oversubscription rate of 2,750 times for the retail portion.

A significant shift in the artificial intelligence stock trade is prompting investors in Asia to seek new equity opportunities, as technological advancements and concerns about market bubbles reshape the investment landscape. This trend reflects a growing interest in identifying potential winners in the AI sector amidst fluctuating market conditions.

Meta is set to reduce its metaverse unit budget by 30%, a significant cut that reflects a strategic shift under CEO Mark Zuckerberg as the company reassesses its financial priorities. This decision comes amid ongoing scrutiny and challenges in demonstrating profitability in its ambitious metaverse project.

Hewlett Packard Enterprise (HPE) reported a 14% year-over-year increase in Q4 revenue, totaling $9.68 billion, but fell short of the $9.94 billion estimate. Server revenue decreased by 5% to $4.5 billion, and the company forecasted Q1 revenue below expectations, leading to a more than 5% drop in after-hours trading.

Cloud-computing startup Fluidstack is reportedly in discussions to secure approximately $700 million in a funding round, which would elevate its valuation to around $7 billion, as per sources familiar with the matter.

Hewlett Packard Enterprise Co. shares fell in after-hours trading following a disappointing sales outlook for the current quarter, which did not meet high expectations for the AI server business. The company's forecast indicates a slowdown in server deals, raising concerns among investors.

OpenAI is facing intensified competition from Google, particularly with the rapid rise of Google's Gemini 3, which has gained 200 million users in just three months. In response, OpenAI CEO Sam Altman has declared a 'code red' for ChatGPT, emphasizing the urgent need for improvements to maintain its market position.

Minda Smiley, a senior analyst at EMARKETER, expressed that she is not surprised by Meta's decision to cut resources for its metaverse unit, highlighting the company's ongoing challenges in monetizing this venture. This discussion took place during an interview on Bloomberg Tech with Caroline Hyde and Ed Ludlow.