HOLIDAY SHOPPERS SLEIGH INFLATION WITH RECORD ONLINE SPENDING THANKS TO MOBILE MAGIC AND AI ELVES

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·???????? Holiday shoppers sleigh inflation with record online spending thanks to mobile magic and AI elves

·???????? Aurora takes the wheel: self-driving tech steers Nvidia to new partnership as stock soars

Holiday shoppers sleigh inflation with record online spending thanks to mobile magic and AI elves

The 2024 holiday shopping season set a record with $241.4 billion in online spending, marking an 8.7% increase from the previous year. Despite inflationary pressures, growth was driven by competitive discounts, mobile shopping convenience, and the rising adoption of “Buy Now, Pay Later” (BNPL) services, which accounted for $18.2 billion in transactions. Mobile shopping reached unprecedented levels, with smartphones contributing to 54.5% of online purchases, up from 51.1% in 2023. Nearly 79.1% of BNPL transactions were also completed via mobile devices, underscoring the consumer shift toward smaller screens.

According to Adobe’s (US:ABDE), a constituent of the Fundamental Global Growth Portfolio, analysis of over 1 trillion retail site visits, consumers increasingly turned to generative AI tools for shopping, reflecting the integration of technology in e-commerce. Traffic to retail sites through AI-powered chatbots rose by 1,300%, with 70% of users reporting enhanced shopping experiences, particularly in finding discounts. Vivek Pandya, Adobe’s lead analyst, highlighted the reshaping of e-commerce by consumers’ preference for mobile and AI-driven efficiency.

Electronics, apparel, and furniture/home goods dominated sales during key shopping periods like Thanksgiving, Black Friday, and Cyber Monday. TVs, Bluetooth headphones, and fitness trackers were popular electronic purchases, while puffer jackets, boots, and socks led in apparel. Holiday decor, bedding, and blankets drove growth in home goods. Groceries, benefiting from high inflation, rose to $21.5 billion in sales, up 12.9% year-over-year. Cosmetics also surged to $7.7 billion, reflecting a growing comfort with online purchases of such items.

Discounts were pivotal, with shoppers leveraging reductions of up to 30% on toys and electronics. Consumers “traded up” to higher-ticket items due to these deals. The 2024 season underscored the evolution of U.S. e-commerce, shaped by mobile shopping, BNPL services, and AI-enhanced purchasing experiences.

Aurora takes the wheel: self-driving tech steers Nvidia to new partnership as stock soars

Aurora Innovation's stock surged up following the announcement of a partnership during Nvidia (who are a constituent of our Fundamental Global Growth Portfolio) CEO Jensen Huang’s keynote at the Consumer Electronics Show (CES). Aurora, a self-driving technology company, will collaborate with Nvidia and German automotive parts manufacturer Continental to deploy autonomous trucks using Nvidia’s DRIVE Thor chips. The Aurora Driver, featuring an SAE level four system, is set to be mass-produced by Continental in 2027, with production samples expected in early 2025. Aurora’s stock, gained approximately 70% in 2024.

Aurora previously delayed its commercial launch to refine its software but now plans to roll out its first driverless truck in April 2025. This milestone will involve a single truck monitored remotely on a route between Dallas and Houston. Aurora CEO Chris Urmson emphasized the transformative potential of autonomous trucking, stating that Nvidia’s advanced chips would enable the production of safe, scalable solutions.

Nvidia, a leader in artificial intelligence and self-driving technology, continues to expand its partnerships across the automotive industry. During his keynote, Huang highlighted collaborations with major players like Toyota, Tesla, Waymo, and Mercedes, alongside startups such as Waabi and Rivian. Toyota will integrate Nvidia’s DRIVE AGX Orin chips into its next-generation vehicles, and other manufacturers like Volvo and Lucid are leveraging Nvidia’s technologies to enhance autonomous and electric vehicle capabilities.

Huang predicted that self-driving and robotics industries could become multi-trillion-dollar markets, positioning Nvidia at the forefront of this transformation. The company’s stock, which experienced substantial growth in 2024 fuelled by the AI boom, rose nearly 3% in pre-market trading. Huang estimated Nvidia’s self-driving business could grow to $5 billion in annual revenue this year, further solidifying its dominance in the sector.

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