Tech Roundup: Windows 11 Takes the Lead, Roku’s Rollercoaster, and AI Cost Concerns

Windows 11 Overtakes Windows 10 Usage on Steam

In a surprising turn of events, Windows 11 has officially surpassed Windows 10 in usage among Steam users for the first time since its 2021 debut. This shift marks a significant milestone for Microsoft as they strive for widespread adoption of their latest operating system.

According to Steam’s hardware survey for August, Windows 11 now boasts 49% usage, a notable rise from July’s 46%. Contrastingly, Windows 10 has dipped to 47% from its previous 50%. This change can be attributed to several factors, including:

• Hardware upgrades: As more users upgrade their machines with newer CPUs and TPM 2.0 security chips, they are able to make the jump to Windows 11.
• Microsoft’s push: With the end of support for Windows 10 approaching in October 2025, Microsoft is incentivizing users to upgrade to Windows 11.
• Growing market share: Reports from StatCounter reveal that Windows 11’s market share has grown from 23% in July 2023 to nearly 32% in August 2024.

Roku’s Wild Ride: The Pandemic Darling Facing New Realities

Roku, once a pandemic-era darling, has found itself in a bit of a slump. After experiencing a 530% increase in share price between March 2020 and July 2021, the company’s stock is now trading 86% below its peak.

While Roku owes much of its initial success to the pandemic-driven streaming boom, its growth has decelerated as life returns to normal. Revenue growth has slowed to 14% in the latest quarter, a far cry from its pandemic peaks.

Despite this, Roku still boasts a healthy user base with 83.6 million active accounts and 30.1 billion hours streamed in the last quarter alone. Its platform-agnostic stance, aggregating content from all major providers, makes it a top choice for cord-cutters.

However, risks remain. The company is not yet profitable on a GAAP basis, and the cyclicality of the digital ad sector adds uncertainty. Nevertheless, with advertising dollars likely to shift towards streaming in the long run, Roku’s future could still be bright.

Tech Titans Face Market Woes Amid AI Cost Concerns

August proved to be a challenging month for tech giants as rising AI infrastructure costs and looming recession fears led to market declines.

• Alphabet Inc.: A 4.7% drop, driven by a slowdown in YouTube ad sales, ongoing antitrust legal battles, and competition from OpenAI.
• Amazon.com Inc.: A 4.5% slip due to slowing online sales.
• Tesla: A 7.7% decline, fueled by weak Q2 earnings and concerns over new tariffs on Chinese-made EVs in Canada.
• Nvidia: Despite exceeding Wall Street expectations, Nvidia’s market value fell by 7.7%, disappointing investors who sought even stronger performance.

However, not all news was negative. Eli Lilly saw a near 20% surge in market value due to robust sales and the launch of a new weight-loss drug. Additionally, Berkshire Hathaway crossed the $1 trillion market value mark, injecting positivity into the volatile landscape.

Chinese EV Makers Jostle for Supremacy While Tesla Holds Steady

China’s EV makers are making waves in the electric vehicle race.

• BYD: Leads the pack with record August sales of 373,083 vehicles, up 36% year-over-year. Plug-in hybrids remain their star performers, driven by an advanced hybrid system offering longer ranges.
• Li Auto: Delivered 48,122 EVs in August, a 37.8% growth year-over-year, although down from July’s record.
• Nio: Maintained steady sales with 20,176 vehicles delivered, reflecting a 4.4% growth.
• XPeng: Saw growth with 14,036 deliveries in August, marking a 26% rise from July.
• Zeekr: Keeps the momentum going with 18,015 deliveries, an impressive 46.4% rise from the previous year.

Tesla, with 86,697 EVs sold in China in August, continues to hold its ground against fierce competition. Robust local sales have kept Tesla on a steady path, even as new rivals like Nio, XPeng, and BYD challenge its dominance.

Nvidia: Leading the AI Charge Despite Market Jitters

Nvidia remains a titan in the AI landscape, showcasing phenomenal growth fueled by its cutting-edge processors. Posting non-GAAP earnings of $0.68 per share on $30 billion in sales, Nvidia crushed market expectations.

Despite investor jitters leading to a slight stock dip, Nvidia’s gross margins of 75.1% in Q2 demonstrate remarkable pricing power. The company expects a slight decline but remains optimistic, guiding for a gross margin of 74.4% in fiscal Q3.

Looking ahead, Nvidia’s upcoming Blackwell chips, set for ramp-up in late 2024 or early 2025, promise to be game-changers. With current GPUs still holding strong and new innovations on the horizon, Nvidia’s dominance in AI remains unchallenged.

Conclusion

From the steadfast rise of Windows 11 to the rollercoaster fortunes of Roku and the AI battleground led by Nvidia, the tech world never ceases to amaze. As these giants navigate their respective challenges and opportunities, one thing remains clear: technological innovation continues to redefine the boundaries of what’s possible. Keep your eyes peeled, for the tech world is only getting more exciting from here.