Wall Street Breakfast Podcast: GM’s China-Free Supply Chain

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General Motors (GM) directs suppliers to pull back China supply chains – report. (00:22) AMD CEO says AI market is ‘faster than anything we’ve seen before,’ sees $1T by 2030. (01:21) Google (GOOG) (GOOGL) accused in suit of using Gemini AI tool to snoop on users – report. (02:26)

This is an abridged transcript.

General Motors (GM) has directed thousands of its suppliers to remove components sourced from China from their supply chain.

Reuters reported, citing sources familiar with the matter, that GM is targeting a complete relocation away from China by 2027.

The initiative began in late 2024 and has picked up speed as tensions continue to rise between the U.S. and China. The report added GM prefers to source parts from North American factories but is also open to suppliers outside the U.S. as long as they exclude China.

This is part of a broader strategy to make its supply chain more resilient and less dependent on countries that could pose political or trade risks, like China, Russia, and Venezuela.

Still, the transition won’t be easy. Many of the parts GM relies on — from lighting and electronics to tools and battery materials — are industries where China still holds a dominant position.

AMD (AMD) made several updates at its financial analyst day on Tuesday, including reiterating the theme that artificial intelligence spending is not likely to slow down anytime soon.

Speaking at the company’s first analyst day since 2022, AMD CEO and Chairman Dr. Lisa Su updated the size of the total addressable market for the AI data center and now sees it hitting $1T by 2030, up from a prior view of $500B.

Su, who has been at the helm of AMD since 2014, added that the rate and pace of change in AI is higher than anything she has seen before. “If you ask customers today, they say, ‘We need to invest more in AI infrastructure.’ There is a real belief that AI compute equates to intelligence.” She added that companies with the capability, particularly those with strong balance sheets, will have an “incremental advantage” compared to the competition. “There’s just insatiable demand.”

AMD is up 5% in premarket action.

The company also said its gross margins would range between 55% and 58%, better than forecast.

Alphabet’s Google (GOOG) is being accused in a lawsuit of using its Gemini AI assistant to unlawfully track the private communications of users of its Gmail, instant messaging, and videoconference programs, Bloomberg News reported on Wednesday.

In the past, users of Gmail, Chat, and Meet were given the option to turn on Google’s artificial intelligence program.

But in October, the company “secretly” turned on Gemini for all those applications, enabling it to collect private data “without the users’ knowledge or consent,” according to the complaint filed late Tuesday in federal court in San Jose, California.

While the tech giant allows users to turn off Gemini, they need to dig into Google’s (GOOG) (GOOGL) privacy settings to deactivate the AI tool, according to the proposed class-action suit. Unless they take that step, Google uses Gemini to “access and exploit the entire recorded history of its users’ private communications, including literally every email and attachment sent and received in their Gmail accounts,” according to the complaint.

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Catalyst watch:

• Baird Global Industrial Conference. Companies presenting include Trane Technologies (TT), Waste Management (WM) and Honeywell (HON).

• Chevron (CVX) investor day.

• Dayforce (DAY) shareholders are scheduled to vote on Thoma Bravo’s $70 a share buyout.

Dow, S&P and Nasdaq futures are in the green. Crude oil is down 1% at $60/barrel. Bitcoin is up 1.6% at $104,000. Gold is flat at $4,125.

The FTSE 100 is flat and the DAX is up 1.2%.

The biggest movers for the day premarket: Alcon (ALC) +5% – Shares soared after the company reported mixed Q3 results that exceeded earnings expectations.

On today’s economic calendar:

• 9:20 am New York Federal Reserve Bank President John Williams will speak before the 2025 U.S. Treasury Market Conference co-hosted by the Federal Reserve System and the Treasury Department.

• 12:15 pm Atlanta Federal Reserve Bank President Raphael Bostic will speak on the economic outlook before the Atlanta Economics Club November luncheon.

• 12:30 pm Federal Reserve Board Governor Stephen Miran will participate in conversation before an event hosted by the University of Cambridge Judge Business School.

• 4:00 pm Boston Federal Reserve Bank President Susan Collins will speak on “Perspectives on the Economy and the Financial Landscape” and will participate in a moderated discussion before the 24th Annual Regional and Community Bankers Conference at the Federal Reserve Bank of Boston.