Forbes Daily: What’s Next As Shareholders OK Elon Musk’s Pay Package
- by Forbes
- Jun 14, 2024
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Good morning,
Nvidia isnât the only semiconductor giant enjoying the artificial intelligence frenzy. Shares of Broadcom surged 12% Thursday to an all-time high, after the company topped forecasts for quarterly profits and sales thanks largely to a 280% year-over-year jump in its AI business.
The company designs the semiconductor chips in products like iPhones and produces other high-tech offerings like data center storage. Its valuation grew to about $780 billion, making it the 11th-largest company in the world despite being relatively unknown to most Americans.
In fact, Broadcom tacked on almost as much value as the entire market cap of legacy Silicon Valley company Intel this week.
Letâs get into the headlines,
FIRST UP Photo by Apu Gomes/Getty Images
Tesla shares rallied Thursday to their highest level since April after CEO Elon Musk announced shareholders approved his controversial $50 billion compensation package. The approval wiped away an estimated $20 to $25 per share âoverhangâ on Teslaâs share price, according to Wedbush analysts, and also alleviated concerns that Musk might divert his focus and leave Tesla to pursue AI ventures. Despite a 10% increase since Tuesday, Teslaâs share price is still down 24% for the year.
MORE: Shareholders voted to approve Muskâs pay package Thursday, but unfortunately for the worldâs wealthiest individual, it doesnât settle the legal dispute over the compensation package. A lengthy appeal of a Delaware ruling voiding the award is likely to follow, and the fate of Muskâs stock options, which would be worth more than the fortunes of all but 27 of the worldâs richest people, will ultimately send his net worth soaring or sinking by tens of billions of dollars.
BUSINESS + FINANCE
GameStopâs annual shareholder meeting Thursday was postponed due to technical difficulties with its livestream, after the hosting company said it was overwhelmed by the number of people trying to access the meeting. Thereâs been a surge in interest in the video game retailer since meme stock trader Keith Gill returned to social media last month.
The $489 billion Saudi Aramco is the worldâs biggest oil company, and CEO Amin Nasser oversees the production of more than 12 million barrels per day of oil and gas. He declared this year that the age of fossil fuels is far from over, yet surprisingly, the company is already one of the worldâs biggest investors in the low-carbon transition. Nasser has dedicated 10% of its $50 billion a year in capital spending to renewables and launched the Aramco New Energies division.
WEALTH + ENTREPRENEURSHIP
Christina Lewis has been an inheritor and client of wealth management firms for 30 years and is applying what she's learned to Beatrice Advisors.
CINDY JOHNSON, COURTESY OF CHRISTINA LEWIS
Christina Lewis, whose father Reginald Lewis achieved fame and fortune with a $985 million buyout of food conglomerate Beatrice International Foods in 1987, launched a multifamily office called Beatrice Advisors on Thursday to help families like hers. Beatrice will be the first business of its kind to be owned by a Black woman.
TECH + INNOVATION ââ
The hunt for available data-center space is driving AI companies to purchase capacity from cryptocurrency minersâthey have the required hardware and are seeking more profitable applications for it. Core Scientific, one of the largest publicly traded bitcoin miners, emerged from bankruptcy in January and has spent June with its stock in an updraft, more than doubling to $9.57 a share. It saw a 10% boost on Wednesday as it announced an increase in capacity for the high-performance computing that underpins AI.
MONEY + POLITICS
The Supreme Court ruled Thursday that anti-abortion rights medical groups do not have standing to challenge the legality of abortion drug mifepristone, delivering a win to abortion rights advocatesâbut the ruling is unlikely to end the legal battle over the pillâs future. The courtâs ruling sent the case back to the lower courts without dismissing it entirely, and the legal group behind the lawsuit suggested Thursday three GOP-led states are likely to continue the case.
WORLD
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