{"id":56421,"date":"2025-11-25T08:38:31","date_gmt":"2025-11-25T12:38:31","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/tech-giants-eye-ai-chip-deals-retailers-post-strong-earnings-and-job-market-shifts\/56421\/"},"modified":"2025-11-25T08:38:31","modified_gmt":"2025-11-25T12:38:31","slug":"tech-giants-eye-ai-chip-deals-retailers-post-strong-earnings-and-job-market-shifts","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/tech-giants-eye-ai-chip-deals-retailers-post-strong-earnings-and-job-market-shifts\/56421\/","title":{"rendered":"Tech Giants Eye AI Chip Deals, Retailers Post Strong Earnings, and Job Market Shifts"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/tech-giants-eye-ai-chip-deals-retailers-post-strong-earnings-and-job-market-shifts\/56421\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/tech-giants-eye-ai-chip-deals-retailers-post-strong-earnings-and-job-market-shifts\/56421\/#AI_Chip_Market_Heats_Up_with_Potential_Meta-Google_Deal\" >AI Chip Market Heats Up with Potential Meta-Google Deal<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/tech-giants-eye-ai-chip-deals-retailers-post-strong-earnings-and-job-market-shifts\/56421\/#Retailers_Kohls_and_Best_Buy_Exceed_Q3_Expectations\" >Retailers Kohl&#39;s and Best Buy Exceed Q3 Expectations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/tech-giants-eye-ai-chip-deals-retailers-post-strong-earnings-and-job-market-shifts\/56421\/#Economic_Indicators_Point_to_Fed_Rate_Cut_and_Shifting_Labor_Market\" >Economic Indicators Point to Fed Rate Cut and Shifting Labor Market<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/tech-giants-eye-ai-chip-deals-retailers-post-strong-earnings-and-job-market-shifts\/56421\/#Geopolitical_Tensions_and_Energy_Markets\" >Geopolitical Tensions and Energy Markets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/tech-giants-eye-ai-chip-deals-retailers-post-strong-earnings-and-job-market-shifts\/56421\/#Other_Corporate_and_Policy_Updates\" >Other Corporate and Policy Updates<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong>Meta Platforms<\/strong> (<a href=\"\/stock\/META\">META<\/a>) is reportedly in discussions to procure <strong>Google&#39;s<\/strong> (<a href=\"\/stock\/GOOG\">GOOG<\/a>, <a href=\"\/stock\/GOOGL\">GOOGL<\/a>) AI chips, potentially a multi-billion-dollar deal starting in 2027, marking a significant strategic shift for Google to compete with <strong>Nvidia<\/strong> (<a href=\"\/stock\/NVDA\">NVDA<\/a>).<\/li>\n<li><strong>Kohl&#39;s<\/strong> (<a href=\"\/stock\/KSS\">KSS<\/a>) and <strong>Best Buy<\/strong> (<a href=\"\/stock\/BBY\">BBY<\/a>) posted stronger-than-expected Q3 2025 earnings, with Kohl&#39;s shares rallying as much as <strong>25%<\/strong> and Best Buy reporting a <strong>2.7%<\/strong> enterprise comparable sales increase.<\/li>\n<li><strong>Deutsche Bank<\/strong> maintains its forecast for a <strong>25 basis point<\/strong> Federal Reserve rate cut in December, followed by an &quot;extended pause&quot; through 2025.<\/li>\n<li>The proportion of <strong>unemployed Americans with four-year college degrees<\/strong> has reached a record <strong>25.3%<\/strong> of total unemployment, doubling since the 2008 financial crisis.<\/li>\n<li>&quot;Big Short&quot; investor <strong>Michael Burry<\/strong> has likened <strong>Nvidia<\/strong> (<a href=\"\/stock\/NVDA\">NVDA<\/a>) to <strong>Cisco<\/strong> (<a href=\"\/stock\/CSCO\">CSCO<\/a>) during the dot-com boom, suggesting the AI market may be in a bubble.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"AI_Chip_Market_Heats_Up_with_Potential_Meta-Google_Deal\"><\/span>AI Chip Market Heats Up with Potential Meta-Google Deal<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The artificial intelligence (AI) chip landscape is poised for a significant shake-up as <strong>Meta Platforms<\/strong> (<a href=\"\/stock\/META\">META<\/a>) is reportedly in multi-billion-dollar discussions with <strong>Google<\/strong> (<a href=\"\/stock\/GOOG\">GOOG<\/a>, <a href=\"\/stock\/GOOGL\">GOOGL<\/a>) to acquire its custom AI chips, known as Tensor Processing Units (TPUs), starting in 2027. This potential deal could also see Meta renting TPUs from <strong>Google Cloud<\/strong> as early as next year. This strategic move by Google to offer its TPUs directly to customers marks an escalation in its competition with <strong>Nvidia<\/strong> (<a href=\"\/stock\/NVDA%5D\">NVDA<\/a>, the current market leader in AI accelerators. <strong>Broadcom<\/strong> (<a href=\"\/stock\/AVGO\">AVGO<\/a>) shares rose as much as <strong>4.6%<\/strong> today, benefiting from its partnership with Google on TPU development.<\/p>\n<p>Meanwhile, renowned &quot;Big Short&quot; investor <strong>Michael Burry<\/strong> has drawn parallels between <strong>Nvidia<\/strong> (<a href=\"\/stock\/NVDA\">NVDA<\/a>) and <strong>Cisco<\/strong> (<a href=\"\/stock\/CSCO%5D\">CSCO<\/a> during the dot-com era, implying a potential bubble in the current AI boom. Burry&#39;s commentary suggests that while new companies often pivot, the underlying market dynamics for AI infrastructure could mirror past speculative periods.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Retailers_Kohls_and_Best_Buy_Exceed_Q3_Expectations\"><\/span>Retailers Kohl&#39;s and Best Buy Exceed Q3 Expectations<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Retailers <strong>Kohl&#39;s<\/strong> (<a href=\"\/stock\/KSS\">KSS<\/a>) and <strong>Best Buy<\/strong> (<a href=\"\/stock\/BBY\">BBY<\/a>) delivered robust third-quarter 2025 earnings that surpassed analyst expectations. <strong>Kohl&#39;s<\/strong> (<a href=\"\/stock\/KSS\">KSS<\/a>) shares surged by as much as <strong>25%<\/strong> following its report. The department store chain reported net sales of <strong>$3.4 billion<\/strong>, exceeding estimates of <strong>$3.33 billion<\/strong>, and an adjusted EPS of <strong>$0.07<\/strong> against an estimated loss per share of <strong>$0.16<\/strong>. The company also raised its full-year adjusted EPS outlook to a range of <strong>$1.25 to $1.45<\/strong>.<\/p>\n<p><strong>Best Buy<\/strong> (<a href=\"\/stock\/BBY\">BBY<\/a>) also posted strong Q3 2025 results, with revenue reaching <strong>$9.67 billion<\/strong> (vs. estimated <strong>$9.58 billion<\/strong>) and adjusted EPS of <strong>$1.40<\/strong> (vs. estimated <strong>$1.30<\/strong>). The electronics retailer saw a <strong>2.4%<\/strong> increase in U.S. comparable sales and a <strong>2.7%<\/strong> rise in enterprise comparable sales, outperforming expectations.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Economic_Indicators_Point_to_Fed_Rate_Cut_and_Shifting_Labor_Market\"><\/span>Economic Indicators Point to Fed Rate Cut and Shifting Labor Market<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Deutsche Bank<\/strong> reiterated its forecast that the Federal Reserve will implement a <strong>25 basis point<\/strong> rate cut in December, followed by an &quot;extended pause&quot; in rate adjustments through 2025. This outlook anticipates a measured return to easing, with potential further reductions in early 2026.<\/p>\n<p>A notable shift in the U.S. labor market shows that Americans with four-year college degrees now constitute a record <strong>25.3%<\/strong> of total unemployment. This figure has doubled since the 2008 financial crisis, highlighting a significant slowdown in white-collar hiring and raising questions about the evolving value of a college degree amidst increasing automation and AI adoption.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Geopolitical_Tensions_and_Energy_Markets\"><\/span>Geopolitical Tensions and Energy Markets<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In geopolitical news, the <strong>UK<\/strong> has expressed its willingness to deploy &quot;boots on the ground&quot; and &quot;planes in the air&quot; to support a ceasefire and lasting peace deal in Ukraine. This commitment follows a Tuesday discussion between UK Prime Minister <strong>Keir Starmer<\/strong> and Ukraine&#39;s President <strong>Volodymyr Zelenskiy<\/strong>.<\/p>\n<p>Energy markets are also seeing developments, as <strong>Russia&#39;s Black Sea Novorossiisk and CPC oil terminals<\/strong> have resumed loadings after overnight drone attacks, indicating a swift recovery in operations. Separately, Iranian crude held on tankers at sea has climbed to a two-and-a-half-year high, suggesting softer buying from China despite Iran&#39;s continued high export levels. This accumulation of Iranian oil in floating storage points to potential shifts in global crude demand and supply dynamics.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Other_Corporate_and_Policy_Updates\"><\/span>Other Corporate and Policy Updates<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Tesla<\/strong> (<a href=\"\/stock\/TSLA\">TSLA<\/a>) saw its price target cut by Mizuho to <strong>$475 from $485<\/strong>, reflecting analyst adjustments for the electric vehicle giant. <strong>Volkswagen<\/strong> (<a href=\"\/stock\/VWAGY\">VWAGY<\/a>) announced plans to slash electric vehicle development costs in China by as much as <strong>50%<\/strong>, aiming to enhance its competitiveness in the crucial market. In a significant downgrade, <strong>Deutsche Bank<\/strong> cut its price target for <strong>DuPont<\/strong> (<a href=\"\/stock\/DD\">DD<\/a>) to <strong>$46 from $90<\/strong>. The <strong>China Space Agency<\/strong> is set to develop new policies for commercial satellite launches, tracking, on-orbit operations, transfer, deorbit, and re-entry, signaling a structured approach to its burgeoning commercial space sector. French prosecutors have also initiated an investigation into <strong>eBay<\/strong> (<a href=\"\/stock\/EBAY%5D\">EBAY<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Meta Platforms (META) is reportedly in discussions to procure Google&#39;s (GOOG, GOOGL) AI chips, potentially a multi-billion-dollar deal [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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