Trending tickers: Nvidia, Palantir, Tesla, Rightmove

Lucy Harley-McKeown

Nvidia stock retraced some of its losses in premarket trade on Tuesday, with investors having dumped about 6.4% of its market value in the broader rout on Monday. Shares look set to open about 2.8% higher later on Tuesday.

The rollercoaster for shareholders has come in a week where it emerged there are some engineering issues with its latest AI chip. Reports last week from The Information said that the company had uncovered design flaws "unusually late" in the production process.

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AI chips have made Nvidia one of the most valuable companies in the world, and the B200 chip was set to be an extension of that — the next generation of the H100 chips that power much of the world of AI cloud computing.

Palantir stock was up more than 11% in premarket trade as the company raised its annual outlook in its earnings report, citing continued demand for AI software.

Revenue guidance for 2024 increased to a range of $2.74bn (£2.15bn) to $2.75bn, while analysts had expected $2.7bn, according to Bloomberg data. It also upped its outlook for adjusted operating income to $966m to $974m for the year, above the expected $882.9m. Sales and net income also beat expectations.

A brainchild of Peter Thiel in 2003, Palantir provides data analysis tools to companies and governments. Its software is used across the US military and has been used in furthering AI capabilities.

EV maker Tesla saw its stock regain some ground in premarket on Tuesday, having dipped a full 4.2% on Monday amid market turmoil.

The moves lower came as CEO Elon Musk ramped up his feud with LLM darling OpenAI, filing a lawsuit against the company and its creator Sam Altman alleging he was misled in how the company had presented itself as a nonprofit.

The complaint, filed in US District Court in Northern California, says Musk invested tens of millions of dollars and sourced leading AI scientists off the back of that claim. It added that Altman was playing out a "long con" and "hot-air philanthropy" in representing the company as nonprofit.

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The lawsuit is similar to a complaint filed by Musk in March, which alleged the company had broken its founding agreement — that lawsuit was withdrawn in June.

Stock in Tesla was trading around 2% by mid-morning in London.

Property platform Rightmove was the biggest faller on the FTSE 100 (^FTSE) on Tuesday, as it announced it would end its partnership with Openrent.

Openrent is a platform where landlords can list properties for rent directly, as opposed to going through an agent. Rightmove said the platform accounted for less than 8% of listings on its site.

The move signals the changing landscape with Rightmove's shift in fee structure, which has reportedly increased for some third parties wanting to advertise on its site.

Rightmove said Openrent's split would not affect its guidance this financial year. It reiterated its forecast of a 7% to 9% increase in revenue and an underlying operating margin of 70%.

Stock was about 5.5% lower by mid-morning in London.

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