5 Things You Need to Know This Week

We’re kicking off a new weekly feature in today’s edition of the Money & Markets Daily…

It’s impossible to keep up with everything going on in financial markets and the economy these days.

So let’s get your week started right with a dive into the most significant trends and opportunities you need to know about now.

1. Uncle Sam Going to War With AI

Just when you thought life was going to be easier with artificial intelligence (AI), in steps the biggest bad guy of them all to slow things down: the U.S. government.

The Justice Department and Federal Trade Commission plan to start investigating Microsoft Corp. (Nasdaq: MSFT), Nvidia Corp. (Nasdaq: NVDA) and ChatGPT parent company OpenAI regarding their roles in the AI industry.

On the surface, the investigation will focus on antitrust law violations. After all, NVDA is the biggest maker of AI chips, OpenAI kicked down the AI door back in November 2022 when it launched ChatGPT to the masses and MSFT backed up a Brinks truck and unloaded $13 billion into OpenAI.

These three companies — one of which isn’t even publicly traded — are just the tip of the iceberg when it comes to the AI market:

Last year, the global generative AI market was valued at $45 billion. By 2030, that value will jump 361% to $207 billion.

I guess just being first to market means you’re entitled to a federal investigation.

2. Adam’s Favorite AI Play Makes Big Jump

Back in March 2024, Adam wrote an essay about how the “Titan of Tech” is behind the premier AI software company in the world.

Because the AI revolution is advancing at lightspeed, Adam recommended this powerful company… as a play into this revolution.

Last week, the company landed ANOTHER government contract.

On Thursday, shares jumped nearly 4% and are up more than 3% since Adam’s recommendation.

Now might be a great time to buy into this AI powerhouse.

3. Apple Adds to Global Smartphone Market Share

NVDA’s meteoric rise as the leader in AI chips not only drew the U.S. government’s attention but also that of Apple Inc. (Nasdaq: AAPL) … not for the reason you might think.

Due to its share price growth, NVDA passed AAPL as the second-most valuable company in the U.S.

But don’t be too quick to shed a tear for the smartphone giant:

In 2018, Apple led the smartphone market, but Samsung was gaining ground. Last year, Apple increased its global smartphone market share to 52.4%… more than three times greater than its Korean counterpart.

4. The Glitch That Cost Warren Buffett Billions

Main Street Americans hardly shed a tear when they read news that a billionaire lost massive amounts of money.

A technical glitch on the New York Stock Exchange recorded a 99.97% drop in the share price of Warren Buffett’s Berkshire Hathaway Class A shares (NYSE: BRK.A), along with 40 other symbols on the exchange.

For nearly two hours, BRK.A shares showed a price of $185.10 — a 99.97% drop from its actual listed price of $603,718.30.

Buffett owns 227,416 shares of Class A stock that had a value of $137.3 billion (at its regular stock price). At $185.10 per share, that value dropped to $42.1 million.

You do the math.

While there’s no solid explanation for the technical glitch, it was fixed two hours later, and prices for the impacted stocks were back at their levels before the glitch was found.

5. Apple’s AI Aspirations

Today’s the day…

Apple is potentially gearing up to reveal its “AiPhone” at the company’s Worldwide Developers Conference (WWDC) keynote event in just a few hours.

We touched on it last week, but if you’re wondering how to invest as Apple unveils its plan for the next phase of the AI revolution, you need to see what our colleague and tech expert, Banyan Hill’s Ian King, has to say…

He’s revealing three AI stock recommendations that will profit from Apple’s AI play.

Click here to watch his brand-new presentation before Apple’s big announcement at 1 p.m. ET today.

— Money & Markets Team