Artificial intelligence infrastructure

Texas Gov. Greg Abbott ordered regulators to audit pending data center projects seeking grid connections, with ERCOT stating this effectively pauses those projects. The move aims to address soaring electricity demand from AI and cloud computing facilities, with 90% of large-load interconnection requests under review coming from data centers.

US economic growth slowed to a 1.5% annualized rate in the second quarter due to a widening trade deficit, but consumer spending accelerated and business investment in AI infrastructure remained robust. The Commerce Department’s Bureau of Economic Analysis released the advance GDP estimate on Thursday.

Chinese multilayer ceramic capacitor (MLCC) manufacturers are experiencing rising profits and stock prices due to strong global demand for artificial intelligence infrastructure. Shares of Guangdong Fenghua Advanced Technology, a leading Chinese MLCC producer, surged to the exchange-imposed 10% daily limit.

Federal Reserve Chair Kevin Warsh emphasized the Fed's commitment to reducing inflation but did not indicate future policy moves. The Fed's committee is divided on whether to raise rates by year-end, with inflation currently at 4.1%. Factors like the Iran war driving oil prices and AI infrastructure investments increasing semiconductor costs are influencing inflation concerns.

The article highlights 10 stocks recommended for 2026 by Argus analysts, citing surging corporate earnings, AI infrastructure investment, and a resilient U.S. labor market as drivers of the S&P 500's rally. However, threats like rebounding inflation, Middle East political unrest, and high AI stock valuations are noted as risks to the bull market.

Federal Reserve Bank of Richmond President Tom Barkin warned that inflation remains high but noted tentative signs of moderation. He cited factors like the Iran-related oil price surge and AI infrastructure costs as contributors, while acknowledging falling gasoline prices and potential policy adjustments. Barkin emphasized the need for continued monitoring to address persistent inflationary pressures.

SoftBank Group's stock fell 12%, leading a selloff in Asian technology stocks due to concerns about rising artificial intelligence infrastructure costs.

China’s telecoms giants are developing 'air-space-ground-sea' networks to meet future AI infrastructure demands, as highlighted at the Mobile World Congress (MWC) Shanghai. The push follows SpaceX’s market debut, which has intensified industry focus on expanding beyond Earth.

Chinese metal producer MMG, part of state-backed China Minmetals Corp, plans to raise US$1.6 billion through placement shares and convertible bonds to fund expansion driven by rising demand for metals from AI infrastructure. The company aims to raise HK$6.27 billion (US$800.4 million) by selling 705.9 million shares on the Hong Kong stock exchange.

ASML Holding NV's fourth-quarter orders surpassed analyst expectations due to increased demand for its chip-making machines driven by AI infrastructure development. The company's stock reached a record high, though its valuation is considered low compared to peers.

BOE Technology's stock surged over 30% in Shenzhen after announcing a partnership with Corning to enter AI infrastructure, reviving investor interest in the Chinese LCD maker. The company, the world's largest LCD producer, has seen renewed momentum following years of stagnant performance.

China is constructing a national computing power network to support growing AI infrastructure and token usage demands. The initiative aims to transform AI infrastructure into a public utility, with telecom operators leveraging it as a new revenue source beyond traditional mobile services. State media has characterized this network as a 'computing version of the state grid.'