The profit drop is the first for the company since quarter two in 2023. At the time, its profit dipped by 0.9% and was attributed to an investment loss and losses from currency exchange. Foxconn, which makes AI servers for Nvidia and assembles iPhones for Apple reported a net profit of $1.41 billion for the October-December quarter, which is much lower than what analysts had projected.

Positive Q1 Outlook

Even with Foxconn’s profit declining, the Taiwanese tech giant expects its Q1 performance to be better than it has been over the last five years. The company also expects to achieve stronger year-on-year growth as customer demand for AI drives revenue growth.

The Taiwanese company’s positive outlook contrasts that of other manufacturers that have been affected by President Donald Trump’s uncertain trade policy. Foxconn holds that booming demand for AI is still on, the company expects it to drive hardware sales.

“We have not seen cloud service providers demand slowing down. There are market rumours that CSP demand will peak this year, and then it will go down next year. But we are not seeing that, at least for Foxconn,” Foxconn Chairman Young Liu said during the earnings call.

Liu added that sales from AI servers could make up over 50% of Foxconn’s server revenue in 2025 as the company increases production for Nvidia.

“For the first quarter, we expect AI server revenue to grow by more than 100%, both quarter-over-quarter and year-over-year,” Liu said.

Global Trade War

Foxconn reported that its Q4 revenues rose by 15.2% following strong AI server sales. While releasing the Foxconn earnings report on March 14, the company said it expects sales from its cloud and networking products to grow. But the escalating global trade war may complicate these prospects considering that the company has a huge production presence in Mexico and China.

The two countries are some of the largest US trading partners that Trump has targeted with high import tariffs. As an Apple contractor, Foxconn assembles most iPhones in China. The company is currently establishing a huge production factory in Mexico where it plans to manufacture Nvidia AI servers.

Navigating Trump Tariffs

Last month, Apple committed to work with Foxconn to set up a 23,200 square metre plant in Houston. According to the US big tech, the plant will be used to assemble AI servers for the data centers it needs to power Apple intelligence. According to Liu, Foxconn will plan manufacturing partnerships with its customers across the US to avoid the rising tariffs.

“Some tariff factors may affect demand. But we have planned in different regions over the past years and have made our supply chain resilience better than it was eight years ago during President Trump’s first term. In response to President Trump’s push for American manufacturing, we will replicate our global production experience and actively establish production bases in the United States. It is difficult to predict the U.S. government’s attitude and approach towards tariffs. We can only wait and see and do our best with what we can control,” he said.

Since the Trump administration took over earlier this year, Foxconn stocks have been affected by US trade policy and import duties. The company’s share prices have dropped by 8.7% this year alone.

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Yahoo Finance reported that the company plans to make a $100 billion TSMC US investment in addition to the $65 billion the company initially announced.

High Demand

In a joint media briefing with Taiwan President Lai Ching-te on March 6, Wei told reporters that the company’s decision to increase US investments is due to rising demand.

“We are increasing investments in the US as demand from US customers is very large. Our current US capacity is fully booked, it is also fully booked for next year, and we’ve already got orders for 2027,” Wei said.

The TSMC executive added that as the go-to chip manufacturer for Nvidia and Apple, the company may still be unable to satisfy chip demand in the US even after making additional investments. TSMC has not changed the plans it had of establishing 11 production lines in Taiwan this year.

President Lai and Wei held a joint press conference to allay fears that Taiwan’s largest chip manufacturer was shifting its priorities to the west. The TSMC press conference came a few days after TSMC announced an additional $100 billion investment in the establishment of production facilities in the US. TSMC’s expansion plans are well aligned to President Donald Trump’s agenda of increasing domestic chip production.

Addressing Research Speculations

Wei also attempted to address speculations that TSMC could be shifting its research unit to the US. The CEO said that his company has employed 10,000 engineers to develop next-gen technologies in Taiwan. The executive said that staff in the newly established research and development staff in the Arizona plant will focus on optimizing production lines that exist there.

TSMC’s US spending is one of the biggest outlays by a foreign company in US chip production. The new investment is expected to bring its presence in the US to about half a dozen factories. The plants will support advanced wafer production with several of them facilitating advanced packaging. The Taiwanese government will have to approve any additional US investment.

The cabinet will be reviewing the new investment in line with its laws. On March 4, Taiwan’s Economic Minister Kuo Jyh-Huei downplayed allegations that additional investments to the US could westernize the TSMC.

“TSMC already has plants in the US and Japan, and it’s now building a new plant in Germany. These have nothing to do with tariffs. TSMC’s global expansion is a crucial development,” Kuo said.

Trump Tariffs

The new US investment pledge by TSMC comes at a time when US President Donald Trump is introducing tariffs against industries like lumber, semiconductors, pharmaceuticals, and autos to fix trade imbalances that disadvantage the US. Introduction of chip levies would have a direct impact on Taiwan where the majority of highly advanced wafers that are used in AI are manufactured.

President has accused Taiwan of taking the US chip production industry. The Republican president has threatened to levy duties on chips manufactured outside the US. Speaking to the Congress on March 4, Trump threatened to cancel the $52 billion chips subsidy.

On March 6, Taiwan’s President said the US had not pressured Taiwan on TSMC expansion. After TSMC announced the new US investment, Nvidia said it will be relying on the new plants to sustain its resilient tech supply chain.

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Trump’s Tariff Effect

President Trump took power on January 20. Following his ascend to power, Trump has castigated Taiwan for shifting the semiconductor business. The President threatened to introduce import tariffs on countries with which the US has huge trade deficits. These tariffs are likely to target Taiwan.

Most Taiwanese manufacturers have invested heavily in production factories in their country to develop components for a wide range of products including electric vehicles and AI servers for the North American market.

Many Taiwanese electronic companies are now seeking to move some of their operations to the US. This could be an indication that President Trump’s threats on introducing tariffs on imports is already triggering the desired effect in Taiwan. President Lai Ching-te of Taiwan committed to make more investments in the US last week.

Richard Lee, who chairs the Taiwan Electrical and Electronic Manufacturers’ Association, revealed that Taiwanese multiple large manufacturers in the Asian country are considering expanding to Texas.

Most of these companies are in the AI server industry. The State seems to attract the top manufacturers due to its investor-friendly environment. The expected Taiwan investments in Texas comes after the State’s Republican government took proactive steps to attract investments.

Expected Expansions

Some Taiwanese companies like Compal, Foxconn, and Inventec already have running operations in Texas. However, they are expected to make public announcements on planned expansions to meet the rising demand for AI technologies.

As the demand for AI services increases, Taiwanese electronic firms see Texas as the most strategic location to set up production facilities. For instance, Foxconn’s Texas expansion is already on track. As the largest contract electronics company, Foxconn makes products for US big techs like Nvidia and Apple. The Taiwanese company has invested $33 million on land and buildings in Texas State’s Harris County.

Contract AI server and laptop manufacturers Inventec and Compal are also planning US expansion. Last month, executives from the two companies stated that Texas would be their preferred location.

“Texas is a leading candidate just because of the power that they’ve done. Samsung is putting a giant fab in, and that’s created a lot of extra power and infrastructure there. Texas is the only state in the U.S. that has its own grid. And so, we continue to evaluate that. But no decisions have been made yet,” Compal President and CEO Anthony Peter Bonadero said earlier this month.

Taiwan Trade Centers

Earlier this month, the Taiwan government announced plans to establish a trade and investment center in Texas and other parts of the US. The announcement was made by the Taiwan Ministry of Economic Affairs (MOEA) said Monday that it plans to set up an investment and trade center in Texas.

According to the MOEA, the trade centers will serve as a link between Taiwanese companies that expand to the US and the Taiwanese government. The centers will help the companies to access the assistance they need to move their processes forward. The trade centers are also expected to link Taiwanese investors to potential US partners to facilitate transfer of their products into the US market from countries where the Trump administration has introduced high tariffs.

The Taiwan government moved to set up the center soon after President Trump signed executive orders that imposed a 25% tariff on imports from Mexico and Canada. The orders also increased duty on Chinese imports by 10%. These tariffs affect over 300 Taiwanese companies that have established production facilities in Mexico. These include manufacturing giant Hon Hai Precision Industry, Quarter Computer, Wistron Corp and Pegatron Corp.

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In December last year, the Department of Commerce in the US finalised a government grant amounting to $406 million for the company. The funding is expected to enhance GlobalWafer’s production of silicon wafers in the US states of Missouri and Texas.

Trump’s Renegotiation Plan

The Trump administration plans to negotiate awards issued to semiconductor companies by the Biden Administration under the Chips and Science Act. President Donald Trump’s government has indicated that there will be delays in disbursing some of the grants that the Biden administration had finalized to tech companies.

Previously, Taiwan GlobalWafers had indicated that the Chips Program Office had informed it that some of the conditions in the grant were not aligned to the executive orders and policies of the new administration. The Trump administration is reviewing conditions for all direct funding agreements under the Chips Act.

Even as the company’s funding agreement undergoes review, GlobalWafers says Washington is yet to issue it with a direct notification on changes to the terms or conditions of its award agreement.

No Funding Yet

Although the US Commerce Department finalized GlobalWafer’s grant award in December 2024, the company is yet to receive funding from the government.

According to Hsu, the delay in disbursement has nothing to do with changes that the Trump administration is expected to make. Rather, the delay has been occasioned by the fact that the company has not achieved the milestones set out in the grant agreement for this year.

“We have a first milestone to achieve, and once we reach it, we will submit the necessary documentation to the relevant authorities for review,” Hsu said.

The company says it’s maintaining its US expansion plan that it has already commenced in three factories across the country. The Taiwanese wafers manufacturer isn’t too worried about the impact that possible import tariffs by the Trump administration could have on its business.
According to CEO Hsu, the existing three production facilities in the US coupled with its global presence provide the company with ‘more strategies to cope with potential tariff impacts.’

Reassessing Investment

Since coming to office last month, President Trump has signed numerous executive orders and taken measures that have created uncertainty in the chip manufacturing sector. As she informed reporters that the new administration is yet to communicate award modifications, GlobalWafers CEO Doris Hsu said her company will have to reassess its US investment if changes are made to the Chips Act.

“We don’t know what will happen, but if the CHIPS Act is indeed modified and we are affected, we will need to reassess our subsequent investments,” Hsu said.

According to Hsu, this assessment will involve conducting an evaluation on the demand of its products in the country and the prices that it can sustain there. Such an evaluation will help the company to determine whether GlobalWafers US expansion would be profitable in the long run or maintaining production in Taiwan would be more beneficial considering possible duties.

“At this moment, everything is hypothetical and hasn’t happened yet, as we haven’t received any notification about required actions. For now, everything is proceeding according to the original plan,” Hsu added.

Ready Contracts

GlobalWafers has already secured contracts to supply silicon wafers in the US. The contracts are valued at $406 million. Under the Biden administration, the US government committed to award a total of $52.7 billion in grants, loans, and tax credits under the Chips and Science Act semiconductor manufacturing and research subsidy program.

By mid-December 2024, the US Department of Commerce had finalized various awards to US-based semiconductor manufacturers including a $6.1 billion subsidy for memory chip maker Micron Technology, $7.86 billion for Intel and $750 million for US chip maker, Wolfspeed. Chips Act funding was part of Biden’s administration to fuel domestic production of semiconductors and reduce reliance on Taiwan and China.

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Rivaling China

Through the Stargate joint venture, the three companies will be investing a total of $500 billion to enable the US to stay ahead of rival countries like China in the global AI race. Announcing the private sector investment at the White House, Trump said the investment by OpenAI, Oracle, and SoftBank will go towards building data centers in the US.

The President also said that the joint venture will create in excess of 100,000 jobs in the US. The venture will be deploying the first batch of $100 billion US AI investment immediately. The balance will be deployed over the next four years.

Trump announced the AI investment in the presence of Oracle Chairman Larry Ellison, SoftBank CEO Masayoshi Son, and OpenAI CEO Sam Altman.
Ellison said that establishment of the first set of data centers has already commenced in Texas. He added that twenty more data centers will be constructed, each measuring half a million square feet. Ellison says the new data center project has the capacity to power AI that analyzes electronic health records, enabling doctors to better care for their patients.

Market Reaction

Besides Oracle’s share rise, stocks for other tech companies have increased since Trump’s AI initiative announcement. Nvidia stocks rose by 2.7% while those of Microsoft increased by 1.1%.

“We believe this is the start of a wave of massive AI investments to take place in the U.S. as we expect more big tech players to make announcements over the coming weeks,” Wedbush analyst Dan Ives said.

Vistra stocks also gained 3.8% value. Vistra is a nuclear power company whose shares have increased more than four times in the last one year. Vistra’s share surge has been attributed to rising demand for clean energy for data centers.

Shares for Super Micro Computer rose by 2.7%. On January 21, Oracle shares rose by 7% as reports of the joint venture circulated. Nvidia and Dell stocks also recorded an increase on the same day.

Demand for Energy

Trump’s AI investment announcement comes just a day after the US President rolled back on Biden’s administration AI order that was aimed at lowering the risks that AI poses to workers, consumers and national security. AI requires massive computing power. This pushes the demand for specialized data centers that allow tech firms to connect thousands of chips in clusters. High amounts of electricity are also needed to power data centers.

“They have to produce a lot of electricity, and we’ll make it possible for them to get that production done very easily at their own plants if they want,” Trump said.

AI data centers are increasing US power consumption significantly. Last year, the North American Electric Reliability Corporation said about 50% of the country faces increased risk of power shortfall over the next decade.

AI investments have increased significantly since OpenAI unveiled ChatGPT in 2022. Since then, businesses in different sectors have been seeking to integrate AI into their services and products.

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According to Yahoo Finance, the yield on 10-year Treasury notes rose by two basis points to 4.61% ahead of the US’s $44 billion seven-year note auction on Thursday. Meanwhile, the dollar showed a mixed performance against its Group-of-10 counterparts.

Since 1950, the S&P 500 has delivered an average and median return of 1.3% during the “Santa Claus” period, significantly outperforming the typical seven-day market gain of 0.3%, according to Adam Turnquist of LPL Financial.

Asian Stock Market Sees Broad Gains

Asian shares gained globally through the entire week, as optimism that inflationary pressures are ebbing in major economies and that China’s property sector is stabilizing boosted investor sentiment. The MSCI Asia-Pacific Index, which is considered the leading measure of Asian stocks, advanced 0.7% in morning trading, with tech-heavy South Korea and Taiwan among the market leaders. Japan’s Nikkei 225 stepped up as export-oriented sectors such as automobiles and electronics led the way.

China’s Shanghai Composite added 0.5%, while Hong Kong’s Hang Seng Index jumped 1.2%, driven by a rebound in property and tech shares. Forecasters regard the upturn as a sign of revived credibility in Beijing’s efforts to steady the nation’s economic growth, while geopolitical risks remain a consideration.

Jun Rong Yeap, a market strategist at IG Asia Pte in Singapore said, “A follow-through from pre-Christmas momentum will mean a continued drift higher for Asian markets. Weakness in the yen on the back of recent Fed-BOJ policy divergence has offered some support for Japanese equities in today’s session, coupled with the year-end positive seasonality around the Santa Claus rally.”

US Futures Hold Steady

US stock futures continue to trade low due to the prevailing pre-earnings and macroeconomic releases sentiment, such as the GDP of the United States and the inflation rate. The probable halt in the rally that has been seen in the recent closing prices for the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite futures could be seen Friday’s barely move.

The low activity in US markets shows that investors are now on the lookout globally and particularly the Asian markets as the global market themes remain dominant. Since the Federal Reserve has recently come out with a slightly more aggressive stance on interest rates, the market participants are trying to follow a number of economic signals in order to anticipate future monetary policy.

Global Market Trends in Focus

Other global market trends suggest that the markets around the world are interconnected. Asian shares have risen slightly this week, easing pressures felt by global markets on the back of geopolitical risks and slowing growth. They have pointed seriously at risks primarily in inflation, central banks’ policies, and corporate earnings’ volatility.

Oil prices also ticked a notch up attributed to the better sentiment on risk in the global markets. Brent crude advanced by 0.6% to $81.30 per barrel and WTI by 0.5% to $76.50 per barrel. The strengthening energy market is additional evidence of enhancing sentiment within the global equities.

Matt Maley at Miller Tabak, “The action of the past few weeks shows that the big-cap tech names are still the key leadership group. These big-tech names are highly overweighted in the portfolios of a huge number of institutional investors. Any buying they do over the next week is likely to be concentrated in these names.”

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According to CNBC, the CEO of Japanese company, Masayoshi Son has been keen on getting a larger stake in the AI startup after SoftBank invested $500 million in the last funding round of Open AI. By December 24, 2024, employees must decide whether they want to sell their shares, as set by the AI startup.

OpenAI and SoftBank Remain Tight-Lipped

Although neither of the parties have commented on the SoftBank investment in Open AI, a source close to the deal said that the tender offer is not related to OpenAI’s future restructuring as a for-profit organization.

A person close to the CEO told CNBC that the investment in OpenAI is in line with SoftBank’s strategy of investing capital-intensive businesses. In fact, Son said in a conference that he has saved ‘tens of billions of dollars to invest in the next big thing’ in Artificial Intelligence.

SoftBank’s Extensive AI Investments

The CEO has been investing in other private players in the AI space, like Apple, Qualcomm, and Alibaba. Additionally, SoftBank’s Vision Fund 2 has also invested in several booming AI startups, such as Glean, Perplexity, and Poolside.

Currently, SoftBank has a diverse portfolio of 470 companies, with assets valued at $160 billion across its two Vision Funds. These investments highlight the company’s interest in advancing AI technologies and maintaining a stronghold in the tech industry. This SoftBank AI investment strategy plays a crucial role in the efforts to grow its impact on the quickly growing AI sector.

OpenAI’s Valuation and Financial Landscape

OpenAI’s valuation has surged to $157 billion over the past two years, after the massive success of ChatGPT. The AI startup has raised $13 billion from Microsoft and an additional $6.6 billion in its October 2024 funding round, led by Thrive Capital with participation from Nvidia, SoftBank, and others.

Apart from these funding successes, OpenAI is already lining up for its next generation Orion AI model to be released by the end of 2024. The Open AI Orion model is expected to be much improved version than its present technologies.

Despite these successes, the AI startup expects a loss of $5 billion this year, against projected revenue of $3.7 billion. However, with a $4 billion loan Open AI’s liquidity has risen to $10 billion. With all of this OpenAI investment landscape is looking strong as it continues to attract interest from major investors like SoftBank.

The post SoftBank’s $1.5 Billion Investment in OpenAI appeared first on Tech Research Online.

Sector Highlights and Notable Movements in the European Shares

• Energy Sector: The energy sector saw a 2% decline after a 5% dip in oil prices which was impacted by the rising geopolitical tensions between Iran and Israel. Concerns over global energy supply and potential disruptions added to the volatility in oil prices, directly impacting European energy stocks.
• Travel and Leisure: The travel and leisure sector including airlines stocks saw a gain of 1%. With the reduced operational costs due to falling fuel prices the profit margins for the airlines are deemed to go up.
• Luxury Goods: Luxury stocks rose by more than 1.3%, adding to market confidence, as strong earnings reports from key players in the sector.

However, the Dutch medical equipment company Philips saw a sharp decline, with shares dropping by 16.7% after it projected its annual sales forecast downward.

Anticipated Economic Data and U.S. Tech Earnings

European markets are gearing up for a series of significant economic reports, including:

• Eurozone: Preliminary GDP figures, consumer confidence indicators, and economic sentiment reports, expected this week, will provide insights into regional economic health and growth potential amid recent inflationary trends and central bank policy changes.
• Germany: Germany will release data on consumer prices, flash GDP estimates, and employment figures, giving investors a comprehensive view of the country’s economic stability and performance.

Moreover, Spain’s estimated GDP, Italy’s preliminary GDP and British’s budget are all due on Wednesday, 30th October 2024.

Additionally, U.S. tech giants Alphabet, Microsoft, Meta, Apple, and Amazon are set to announce their earnings this week, with results that are likely to impact global market sentiment due to the significant influence these companies hold on the economy.

With the U.S. Presidential election also around the corner, markets are getting ready for any potential policy shifts or trade implications tied to the outcome, which could further impact global markets.

In a mixed but cautiously optimistic market landscape, European shares are showing resilience, driven by positive corporate earnings and expectations of continued economic recovery, even as they remain sensitive to global events and data trends.

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CNBC reported that Nvidia shares have gained close to 180% this year with investors betting on strong demand for the company’s Blackwell AI chips.

A Brief Reign

Nvidia had clinged the world’s most valuable company in June 2024. However, its reign was cut short by Microsoft after its market valuation overtook Nvidia’s. Since then, the market capitalization for the three companies- Nvidia, Apple, and Microsoft- have been close for months.

The latest share surge pushed Nvidia’s market capitalization to $3.39 trillion. This places the chip manufacturer above Microsoft’s $3.12 trillion, but slightly below Apple’s $3.52 trillion. Nvidia is considered Wall Street’s largest winner in the big tech AI race

“We believe the major companies in AI face an investment environment characterized by a Prisoner’s Dilemma. Each is individually incentivized to continue spending, as the costs of not doing so are potentially devastating,” Analyst TD Cowen said in a Sunday report.

In August 2024, Nvidia confirmed that production of Blackwell AI chips had been delayed until quarter four. At the time, the company downplayed the impact the delay would have on demand for these chips.

But Nvidia CEO, Jensen Huang confirmed that production is now on course and going as planned earlier this month. He also said that Blackwell AI chip demand is insane despite production delays.

Riding the AI Boom

Nvidia is seen as the largest beneficiary in the generative AI boom. The AI boom started soon after OpenAI released ChatGPT in 2022. Nvidia-manufactured graphic processing units are used to develop and deploy advanced AI models that power applications such as ChatGPT. Nvidia’s AI chip impact is evidenced by its list of customers who include big tech giants like Google, Meta, Microsoft, and Amazon.

These, and other companies have placed massive orders of Nvidia GPUs to develop huge computer clusters for their advanced AI models. Out of the billions that leading tech companies spend to build AI each year, a significant percentage goes to Nvidia. Currently, the company controls close to 95% of the AI inference and training chip market.

But the company is facing stiff competition from other chip manufacturers like AMD, the second largest AI chip maker.

On October 10, 2024, AMD unveiled an AI chip called Instinct MI325X to take on Nvidia’s Blackwell AI chip. Nvidia’s sales revenue has increased by more than double each quarter for the past five quarters. Analysts expect a modest slowdown over the next quarter as they project revenues of about $32.9 billion in the current quarter.

Impact on S&P 500

The Nvidia stock surge happened at a time when Wall Street is preparing for updates on earnings and AI infrastructure spending plans from tech giants. Nvidia, Apple, and Microsoft account for a fifth of the S&P 500 index.

This means they have a huge impact on the index’s gains and losses every day. As the quarterly reporting season approaches, Apple stocks gained 2% while Microsoft shares gained by 0.7%. These gains propelled the S&P 500 to close at a record 0.8% high.

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As the demand for homes continues to surge, emerging real estate trends are shaping the industry like never before.

Over the years, the real estate market has evolved from the old traditional ways, particularly due to the adoption of AI and PropTech tools. This has led to the industry being anything but predictable with the latest technology trends in 2024.

However, many agents are still caught up with outdated strategies and have fallen behind competitors who are quick to adapt.

For this reason, our experts identified the top 7 real estate trends you should know, which, according to them, will significantly influence the real estate market in 2024.

Here are the most popular ones:

1. PropTech Advancement

PropTech is one of the most popular real estate trends in 2024, changing the way we buy, sell, and manage real estate properties and transactions.

Real estate agents now use immersive technologies like VR and AR to provide virtual property tours that give buyers a realistic sense of space and design aesthetics.

In addition, 3D modeling and drone technology is now widely used to also give buyers a detailed and aerial view of properties that were out of reach.

Blockchain is also another PropTech tool that guarantees secure and automated property transactions with the introduction of smart contracts. The process is immutable and transparent, allowing buyers to verify the authenticity of properties without intermediaries.

Beyond that, online property platforms like Zillow and Trulia have simplified the buying and selling process to make it easier for people to find and purchase their dream property with just a few clicks.

2. AI in Real Estate

Another real estate trend is the use of artificial intelligence to break down complex information and data. AI is now the first point of contact for potential buyers making inquiries via chatbots and assistants like ChatGPT.

To implement AI in your real estate business, start by evaluating your current processes to identify where AI can make a significant impact. You can also use AI to analyze complex documents, get accurate property valuations and smart property management.

With the rising roles of AI in real estate, agents can offer personalized experiences and make data-driven decisions that enhance the overall efficiency of the industry.

3. Demand for Sustainable and Green Building Technology

Green building technology is transforming the demand for sustainable homes and has influenced the way we plan, build, and maintain properties. It’s all about saving energy, picking the right materials, and growing trees to keep the air nice and fresh.

As environmental sustainability becomes a priority, eco-friendly homes are in demand in the real estate market. They are now a key selling point in today’s market, as modern buyers prefer houses with energy-efficient appliances, eco-friendly insulation, and solar panels.

According to NAR’s survey report, over 25% of home buyers are willing to pay for these features. The demand for sustainable homes is more than just a trend; it reflects our commitment to protecting the environment.

4. Rise of Remote Work and Suburban Living

The COVID-19 lockdown caused a major shift in the corporate world, as people were forced to work remotely. This new way of work has reduced the need to stay close to urban workplaces. It has turned the property market mechanism upside down with a significant increase in suburban and rural areas.

Now that the market demand has changed, real estate agents need to prioritize space, affordability, and quality of life over proximity to city centers. As a result, suburban living is on the rise, with more people seeking homes that offer larger living areas, home offices, and outdoor spaces.

This trend is transforming the real estate market, driving demand in areas that were previously overlooked.

5. Integration of Smart Homes

Smart building technology is one technological advancement that has minimized staffing costs and human error possibilities. It has also changed the way people interact with their living spaces. This trend has caused a surge in demand for properties equipped with smart devices like thermostats, lighting systems, security cameras, and voice-activated assistants.

The installed tech appliances offer homeowners greater convenience, energy efficiency, and enhanced security, making them valuable additions to modern real estate properties.

Incorporating smart home options in your listings can give you a competitive edge as a real estate professional or investor.

6. Build to Rent (BTR) Model

The Build to Rent model has gained immense popularity in addressing shifting housing demands. This emerging trend involves purposely erecting rental properties intended to supply long-lasting rental possibilities with amenities commonly connected to homeownership, such as shared spaces, fitness facilities, and concierge services.

The BTR model appeals to people who like the freedom of renting but still want a nice place to live. In 2024, experts think this trend will grow as more builders and investors see the chance for steady long-term profits from rental properties.

If you want to add variety to your property investments, the Build to Rent model allows you to make money with low risk. Today’s renters expect and deserve well-planned buildings that offer high-quality choices for different stages of life.

7. Emergence of New Real Estate Investment Strategies

The real estate investment market is growing as new strategies are introduced to meet the needs of an evolving marketplace.

Our experts predict a rise in fractional property ownership as well, with investors able to buy shares in properties and real estate crowdfunding allowing developers to access funds for development.

Also, using data-driven investment tools and platforms will help investors make better decisions, which in turn will lead to higher returns and fewer risks.

These new strategies are ushering in an era where more people have the opportunity to participate in real estate, and they may just be what’s needed next in a market that is becoming both accessible and increasingly dynamic.

The Bottom Line

These popular trends show how the real estate market will continue to change in 2024. Due to economic conditions and shifting consumer preferences, real estate trends will continually shape the housing market.

Managing these changes and adapting to them will help you succeed in this fast-moving field. These trends and tools can guarantee your success in real estate for years to come.

The post Top 7 Real Estate Trends You Need to Know in 2024 appeared first on Tech Research Online.

According to CNBC, Alphabet will be investing $5 million dollars in Waymo over the next couple of years.

A Vote of Confidence

Ruth Porat, Alphabet’s Chief Technology Officer broke the news as the company released its quarter two financial results.

Noting that Waymo is a vital example of Alphabet’s long-term investments, Porat said, “This new round of funding will enable Waymo to continue to build the world’s leading autonomous driving company.”

The autonomous vehicle company sees the additional Waymo-Alphabet investment as a vote of confidence in its innovation

“Alphabet has committed up to $5B to Waymo. We are grateful for their immense vote of confidence in our team and recognizing the amazing progress we’ve made with our technology, product, and commercialization efforts,” Tekedra Mawakana, Waymo CEO posted on X.

Previous Funding

Waymo first attracted external funding in 2020 when it raised $2.25 billion. Since then, the company raised an additional $2.5 billion in a 2021 funding round that was backed by AutoNation, Fidelity Management and Research Company, Andreessen Horowitz among others.

Alphabet announced Waymo’s new investment just days after Tesla postponed its plan to launch its robotaxi, Cybercab. The electric vehicle manufacturer pushed the launch from the month of August to October this year.

The Waymo Approach

Waymo has been making self-driving car technology for more than a decade. Initially, the project was known as the Google self-driving vehicles project. Original entries were made in the 2005 Stanford and 2007 DARPA Grand Challenges.

Waymo spun-off from Alphabet to become a standalone firm in 2016. In 2017, Waymo ordered electric Jaguar I-Paces and hybrid Chrysler Pacifica minivans. The company knitted these models with its autonomous driving hardware and sensors. Around the same time, Waymo started testing its self-driving technology with an electric vehicle developed by Zeekr.

Widening Losses

Collectively, Alphabet’s investments, including Waymo, generated $365 million in quarter two revenue. This represents a $285 million increase from last year’s revenue. However, Waymo losses increased from $813 million to $1.13 billion over the same period.

During the earnings call, Alphabet’s CEO, Sundar Pichai said that Waymo offers 50,000 paid trips each week in Phoenix and San Francisco. So far, the company has completed 2 million trips.

The additional Alphabet-Waymo investment comes soon after General Motors announced that it was delaying production of its self-driving shuttle that it designed for cities indefinitely.

Last month, Waymo recalled 672 self-driving cars after one of its driverless taxis hit a hole in Phoenix. The company has already filed 17 reports of autonomous taxi crashes.

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