Trump’s China summit and OpenAI trial dominate tech sector as chip stocks rally

President Donald Trump has arrived in Beijing for a two-day summit with Chinese President Xi Jinping, marking the first visit by a US leader to the capital since 2017. The delegation includes major technology executives Elon Musk of Tesla, Tim Cook of Apple, and Jensen Huang of Nvidia, with discussions anticipated to centre on trade, artificial intelligence, and semiconductors. The summit comes as the US and China navigate complex geopolitical tensions, with AI guardrails and cybersecurity cited as critical agenda items.

Concurrently, the legal dispute between Elon Musk and OpenAI continues to unfold in a California court, with testimony focusing on leadership conflicts and the company’s shift to a for-profit model. OpenAI CEO Sam Altman took the stand, addressing allegations regarding his communications with Musk and the board, while Microsoft CEO Satya Nadella also testified about his relationship with Musk and the tech giant’s substantial investments in the AI startup. The trial has provided insight into the internal dynamics of OpenAI, including the brief ouster of Altman in November 2023 and the company’s strategic pivot away from its original nonprofit mission.

In financial markets, semiconductor stocks experienced significant volatility, with the PHLX Semiconductor index declining sharply before recovering. The downturn, which saw shares of AMD, Micron, and Qualcomm fall, appears to be a profit-taking exercise following a recent rally that drove chip stocks to record highs. Despite the dip, the index remains up 60 per cent since the beginning of 2026, reflecting sustained investor confidence in the artificial intelligence sector. Nvidia, the world’s largest company by market capitalisation, hit a new all-time high on Monday, underscoring the sector’s resilience.

UAE-based AI chipmaker Cerebras has increased the size and price range of its initial public offering amid strong investor demand, with pricing expected later this week. The company raised its IPO to 30 million shares with a new price range of $150 to $160, aiming to raise up to $4.8 billion. Cerebras’ deal includes provisions for OpenAI to receive warrants that could grant it a 10 per cent stake in the company, a move that mirrors similar alliances with Advanced Micro Devices and Nvidia. This strategic partnership highlights the intense competition for access to high-performance computing power in the AI boom.

Beyond the immediate market movements, broader corporate developments continue to shape the tech landscape. Amazon launched its 30-minute delivery service in several US cities, while Alphabet and SpaceX entered advanced discussions to launch data centres in space. Rocket Lab shares surged following strong quarterly results, and Intel stock rose on news of new product collaborations with Nvidia. These developments, combined with the high-stakes diplomatic and legal events, illustrate the multifaceted pressures currently influencing the technology sector.