World Street | Nvidia extends rally, Boeing’s fundraising flight, Hindenburg targets Roblox, and more

World Street offers a sneak peek into the world of business and economy.

Nvidia's shares rose after Foxconn revealed plans for a major AI server plant. Boeing seeks billions to avoid a credit downgrade, while Roblox's stock fell following Hindenburg Research's user metric allegations. PepsiCo has cut its sales growth outlook amid changing consumer habits, and a US judge has mandated Google to revise its mobile app policies for Android users. All this and more on the October 9 edition of World Street.

AI Demand Lifts Nvidia

Nvidia shares climbed following Foxconn's announcement of high demand for AI servers. Chipmakers saw gains on Tuesday, with Nvidia extending its five-day rise to 14 percent. Foxconn executives revealed they are building the world's largest AI server assembly plant in Mexico, which will feature Nvidia's GB200 chips from the Blackwell AI architecture.

Boeing Plans Fundraising

Boeing is exploring ways to secure billions by selling stock and equity-like securities, according to two sources. The move aims to prevent a downgrade of its credit rating to junk status. Recently, Boeing has been approached by several investment banks—Goldman Sachs, JPMorgan, Bank of America, and Citigroup—with various fundraising proposals, four sources said.

Roblox Rejects Hindenburg's Claims

Roblox Corp. shares fell 3.3 percent after Hindenburg Research accused the company of inflating key user metrics. Roblox denied the allegations. Hindenburg's report, released Tuesday, suggested the platform may be overstating user engagement by up to 42 percent. "“The company has reported net losses every quarter since becoming a public company, with last twelve months losses totaling $1.07 billion,” said Hindenburg.

Sales Cuts Hit PepsiCo

PepsiCo lowered its annual sales growth outlook on Tuesday, citing reduced spending on sodas and snacks by North American consumers who are turning to more affordable private-label brands. The company, which owns Mountain Dew, 7up, and Lays, now anticipates low single-digit organic sales growth for fiscal 2024, down from its earlier 4 percent forecast.

Google Must Allow Third-Party Apps

A US judge has mandated Google to overhaul its mobile app policies, enhancing Android users' ability to download apps and choose payment options. This decision comes after a jury sided with Epic Games, the creator of “Fortnite,” last year, requiring Google to permit third-party app sources and alternative in-app payment systems.