Daily Tech: AI Tailwinds, Tariff Pauses, and a New EV Challenger Drive Market Rotation

FutureGate | April 10 2025

Memory Stocks Surge as Google Unveils TPU-Powered AI Hypercomputer

Memory and semiconductor names saw outsized gains after Google announced its latest AI hypercomputer, powered by a custom Tensor Processing Unit (TPU) chip optimized for generative AI workloads. The development reinforces Google's deepening investment in AI infrastructure and presents significant tailwinds for high-bandwidth memory suppliers.

Micron Technology (MU) surged over 18% on the session, leading memory stocks higher. Investors interpreted Google's announcement as a demand catalyst for next-generation DRAM and NAND products, which are critical for AI training and inference systems.

The TPU integration signals a broader architectural shift in data centers, emphasizing tight hardware-software coupling and memory optimization. With hyperscalers continuing to accelerate AI investments, memory pricing power appears to be turning, and cyclical tailwinds are building.

Slate Auto, Backed by Bezos, Plans $25K Electric Pickup

In the EV space, Slate Auto, a startup backed by Amazon founder Jeff Bezos, made headlines with plans to launch a two-seater electric pickup truck priced around $25,000. Production could begin as early as next year, according to sources close to the company.

This move is especially significant for the underserved entry-level EV market. The ultra-affordable price point—below the average new car price in the U.S.—positions Slate Auto as a potential disruptor. The company is reportedly targeting young urban buyers and small business owners seeking affordable electric utility vehicles.

Backed by deep-pocketed investors and supported by a team of former Tesla and Rivian engineers, Slate’s approach is to forgo premium specs in favor of minimalism, modularity, and cost-efficiency. If successful, it could unlock a large addressable market and pressure existing EV makers to reconsider their pricing strategies.

Chip Stocks Rally as Trump Pauses Tariffs for U.S. Allies

The semiconductor sector caught a strong bid following President Trump’s surprise move to pause reciprocal tariffs on U.S. allies for 90 days. The pause—though excluding China, whose exports are now facing tariffs as high as 125%—was seen as a market-calming measure amid escalating trade tensions.

Investors cheered the decision, particularly in the tech-heavy Nasdaq, as it alleviated near-term fears of supply chain disruptions and pricing pressure. Chipmakers with global exposure, including those reliant on imported components or overseas fabs, rallied sharply.

The temporary tariff relief gives multinationals breathing room to re-align supply chains and avoid the margin compression seen during previous trade standoffs. The market interpreted the move as a sign that economic pragmatism may take precedence over protectionist rhetoric—at least in the near term.

Goldman Sachs Withdraws Recession Prediction Following Tariff Developments

In a further vote of confidence in near-term economic resilience, Goldman Sachs officially withdrew its prior U.S. recession forecast. The investment bank cited Trump’s tariff pause, improving real income growth, and stabilized inflation expectations as key factors.

According to a note sent to clients, Goldman now sees continued expansion through 2025, barring any geopolitical shocks or central bank missteps. The firm also highlighted improving consumer data and better-than-expected Q1 earnings in key sectors as support for the upward revision.

The reversal underscores how quickly macro sentiment can pivot based on policy signals. With recession fears easing and inflation risks appearing more balanced, capital is beginning to rotate back into cyclical and risk-on assets.