Daily Tech: Ryan Cohen Increases Alibaba Stake, Apple Price Hike Looms, and Nvidia Unveils AI Breakthrough

FutureGate | February 21 2025

Ryan Cohen Raises Alibaba Stake to $1 Billion

Activist investor Ryan Cohen has increased his stake in Alibaba (NYSE: BABA) to $1 billion, reinforcing his conviction in the Chinese e-commerce giant despite ongoing regulatory and geopolitical risks. Cohen, known for his strategic bets on companies like GameStop and his value-driven investment approach, appears to be positioning for a long-term recovery in Alibaba’s fundamentals.

Alibaba shares have faced significant headwinds in recent years, driven by China’s regulatory crackdowns on tech firms, macroeconomic slowdowns, and a highly competitive domestic landscape. However, with Beijing shifting towards more pro-business policies and Alibaba’s restructuring efforts aimed at unlocking shareholder value, Cohen’s investment signals confidence in a potential turnaround. Investors will be watching closely for earnings performance, e-commerce growth trends, and regulatory developments that could impact the stock's trajectory.

Apple May Raise iPhone Prices by 9% Due to Tariffs

According to Bank of America (BoA), Apple (NASDAQ: AAPL) may increase iPhone prices by up to 9% to offset the impact of new tariffs imposed by the U.S. on Chinese imports. The potential price hike comes as supply chain costs rise, and Apple seeks to maintain its gross margins amid geopolitical tensions.

The move could affect consumer demand, particularly in price-sensitive markets, as higher-end models like the iPhone Pro series may become even less accessible to mainstream buyers. Apple has already been shifting production away from China, increasing manufacturing in India and Vietnam, but these adjustments take time to fully materialize.

Investors will be monitoring whether Apple absorbs part of the tariff costs or passes them entirely to consumers, which could influence revenue projections and sales performance heading into the next iPhone cycle.

Palantir Drops After Pentagon Budget Cuts

Palantir Technologies (NYSE: PLTR) shares fell sharply following news that the Pentagon has reduced its budget allocation for defense-related AI and analytics projects. Given Palantir's significant reliance on government contracts, any slowdown in defense spending directly impacts its top-line growth.

The company has been diversifying its revenue base by expanding into commercial AI applications for financial services, healthcare, and energy. However, its core business remains tied to U.S. military and intelligence contracts, making it vulnerable to fluctuations in government spending.

Despite the sell-off, long-term investors may focus on Palantir’s expansion in AI-driven enterprise solutions and its ability to capture new government deals in emerging defense and cybersecurity initiatives.

Nvidia Unveils Evo 2, Its Largest AI System for Medicine

Nvidia (NASDAQ: NVDA) has launched Evo 2, its most powerful AI system for biomedical research, aimed at accelerating drug discovery and genetic research. The breakthrough system leverages Nvidia’s advanced computing architecture to analyze complex biological data, potentially revolutionizing precision medicine and pharmaceutical innovation.

Evo 2 builds upon Nvidia’s AI-driven healthcare initiatives, including its BioNeMo framework, which enables researchers to simulate molecular interactions with high precision. Given the rising demand for AI in medicine, ranging from cancer diagnostics to protein folding simulations—this development positions Nvidia as a leader in the AI-healthcare convergence.

As Nvidia continues to expand beyond gaming and cloud computing into high-performance AI applications, investors will assess growth potential in the biotech sector and the broader implications for the company’s valuation.