Chipmaker Nvidia has overtaken Apple (AAPL) once again to become the world's most valuable company, after the company's shares rose in Tuesday's session.
Nvidia now has a market capitalisation of nearly $3.45tn (£2.79tn), compared to Apple's $3.35tn, with shares in the iPhone maker having fallen 3% in the previous session.
Shares in Nvidia climbed more than 2% on Tuesday and were up 2.5% in pre-market trading on Wednesday.
This came after newly reinstated president Donald Trump announced a new $500bn private sector investment to build artificial infrastructure in the US.
Initial equity funders for the "Stargate Project" are OpenAI, Oracle (ORCL), SoftBank (9984.T) and MGX, while Nvidia is one of the initial technology partners.
Ben Barringer, technology analyst at Quilter Cheviot, said: "This development is undeniably a boon for the AI sector. Companies involved in supplying the technology and infrastructure for Project Stargate are well-positioned to benefit significantly.
"The move underscores the increasing strategic importance of AI innovation, further solidifying its role as a cornerstone of economic and technological advancement. For investors in the AI space, this announcement highlights a wealth of opportunities as the competition to dominate the sector intensifies."
Shares in Oracle jumped 7% on Tuesday and were up 8% in pre-market trading on Wednesday morning, following Trump's announcement.
The stock was also trending after Trump reportedly said at event on Tuesday that he would be open to Oracle chairman Larry Ellison or Tesla (TSLA) CEO Elon Musk purchasing social media app TikTok, as part of a joint venture with the US government.
According to a Bloomberg report, Trump said: "I have the right to make a deal."
"So what I’m thinking about saying to somebody is buy it and give half to the United States of America, half, and we’ll give you the permit, and they’ll have a great partner," he added.
In one of his early actions after being sworn in for a second presidential term on Monday, Trump signed an executive order to delay the ban of TikTok in the US.
When asked about Trump's proposal that TikTok-owner, Chinese company ByteDance, hand over half of the platform to a US company, China foreign ministry spokesperson Guo Jiakun said: "TikTok has operated in the US for years and been very popular with American users."
"It has played a positive role in boosting US employment and consumption. We hope the US will earnestly listen to the voice of reason and provide an open, fair, just and non-discriminatory business environment for market entities from all countries."
Shares in Netflix soared 14% in pre-market trading on Wednesday, after the streaming giant reported 18.9 million users in the fourth quarter, with revenue and earnings also beating expectations.
Revenue of $8.83bn for the fourth quarter was up 12.5% year-on-year and diluted earnings per share came in at $2.11 for the final three months of its fiscal year.
The company also announced a $15bn share buyback and raised its full-year revenue outlook to come in between $43.5bn and $44.5bn. That was ahead of its prior range of $43bn to $44bn.
Strong subscriber gains came on the back of Netflix ending 2024 with two back-to-back NFL games, a successful "Jake Paul vs. Mike Tyson" boxing match, and the return of the highly-popular "Squid Game" series.
Matt Britzman, senior equity analyst at Hargreaves Lansdown (HL.L), said: "Netflix keeps us hooked with fresh content slates, drawing millions of new viewers while keeping existing customers happy at the same time. This is the last quarter Netflix will report net subscriber growth, and it’s blown expectations out of the water.
"While rivals hike prices and wrestle with losses, Netflix is raking in cash and striking deals like WWE and NFL to strengthen its lineup. Competitors selling their best shows to Netflix only make its library stronger, keeping us watching – and, crucially, paying."
In Europe, shares in sportswear brand Adidas surged nearly 7% on Wednesday morning, after the company posted stronger-than-expected preliminary fourth quarter results.
Adidas revenues grew 24% to €5.97bn (£5.05tn) in the fourth quarter, while operating profit reached €57m in the quarter, versus an operating loss of €377m.
The jump in the shares helped drive the pan-European STOXX 600 (^STOXX) to an all-time high on Wednesday morning.
Deutsche Bank analysts said in a note on Wednesday that they had a "buy" rating on the stock.
"Our buy case on Adidas is built on increasing brand heat, positive earnings momentum and strong EPS growth," they said. "All of this is evidenced again in 4Q."
Shares in UK pub operator JD Wetherspoon dipped nearly 2% into the red on Wednesday, after the company's chairman Tim Martin warned of higher costs.
Martin had already warned that costs at Wetherspoons would increase this year by £60m per annum, on the back of increases in the autumn budget to employer national insurance contributions and the national minimum wage.
"Government-mandated wage increases have a significantly bigger impact on pub and restaurant companies than supermarkets," Martin said.
Derren Nathan, head of equity research at Hargreaves Lansdown (HL.L), said: "There’s no more vociferous campaigner for landlord rights than chairman Tim Martin who has pointed out that volumes of pub’s biggest product line, beer, have collapsed by 52% between 2000 and 2023.
"Average on-trade prices are now at £4.98 per pint and far more sensitive to labour cost increases than supermarket equivalents, where you can pick up 568 ml of refreshment for an average price of £1.20."
In the trading update, JD Wetherspoon reported 5.1% growth in like-for-like sales.
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Other companies in the news on Wednesday 22 January:
