Allbirds, the well-known shoe brand, is undergoing a dramatic transformation, selling its footwear business to American Exchange Group for $39 million and rebranding as NewBird AI. This strategic pivot involves securing a $50 million convertible financing facility to acquire high-performance GPU assets, aiming to establish itself as an AI chip service firm offering cloud computing and AI infrastructure. The company's stock price surged over 400% following this announcement, with some reports indicating jumps as high as 600%, reflecting strong investor interest in AI-related ventures.
While the move has generated significant market excitement, some analyses suggest Allbirds' AI investment might be a misstep. Critics point to the company's consistent net losses and declining gross margins since its 2021 IPO, arguing that Allbirds lacks AI expertise and this new focus distracts from its struggling core operations. Stockholder approval for the sale is anticipated in mid-May, with potential dividends planned for the third quarter if the transition proceeds.
Beyond Allbirds, the artificial intelligence revolution continues to reshape global markets. Apollo's chief economist, Torsten Slok, notes that AI is significantly changing corporate debt markets, with technology companies increasing their share. European venture funding for AI startups more than doubled in Q1 2026, contributing to a nearly 30% year-over-year increase in total funding, reaching $17.6 billion. This occurred despite a 40% drop in overall deal volume, as late-stage funding nearly doubled, with the UK and France leading in investment.
The demand for AI infrastructure is also driving record growth in the semiconductor industry. Global sales of semiconductor manufacturing equipment hit an unprecedented $135.1 billion in 2025, a 15% increase from the previous year. This growth is fueled by substantial investments in advanced logic, memory, and AI capacity expansion worldwide. Companies like Lumentum, Nokia, and Keysight Technologies are recognized as top AI stocks, with Lumentum receiving a $1,225 price target from Aletheia Capital for its essential optical products.
Other companies are also making significant AI plays. Jefferies identifies Nokia as a top AI stock for 2026, citing its leadership in 5G and AI technology. Truist highlights Keysight Technologies for its crucial test and measurement solutions. Barclays maintains an Overweight rating on Alibaba, emphasizing its increased AI investments as vital for long-term competitiveness. Additionally, Figma, Sea Limited, and Palo Alto Networks are noted as potential buying opportunities, with Palo Alto Networks recognized for its profitability and competitive valuation in cybersecurity.
Key Takeaways
- Allbirds is pivoting from footwear to AI, selling its shoe business for $39 million and rebranding as NewBird AI.
- NewBird AI secured a $50 million convertible financing facility to acquire GPU assets for AI compute capacity.
- Allbirds' stock surged over 400% following the AI pivot announcement, reflecting strong investor interest.
- Some analysts question Allbirds' AI strategy, citing past losses and a lack of AI expertise.
- AI is significantly reshaping global credit markets, driving increased corporate debt issuance by tech companies.
- European venture funding for AI startups more than doubled in Q1 2026, contributing to $17.6 billion in total funding despite fewer deals.
- Global sales of semiconductor manufacturing equipment reached a record $135.1 billion in 2025, a 15% increase, driven by AI capacity expansion.
- Lumentum, Nokia, and Keysight Technologies are identified as top-performing AI stocks, with Lumentum receiving a $1,225 price target.
- Alibaba is increasing its AI investments for long-term competitiveness, while Figma, Sea Limited, and Palo Alto Networks are seen as potential AI stock buying opportunities.
Allbirds sells shoe business, becomes AI company NewBird
Allbirds is selling its shoe business to American Exchange Group and rebranding as NewBird AI. The company also secured a $50 million investment to buy GPU assets for AI compute capacity. Stockholder approval is needed for the sale, expected in May, with dividends planned for the third quarter if approved. NewBird AI aims to expand its services through partnerships and potential acquisitions.
Allbirds shares soar over 400% after AI pivot announcement
Allbirds' stock price jumped more than 400% after the company announced plans to shift from making sneakers to focusing on AI computing infrastructure. The San Francisco-based company will raise $50 million through a convertible financing agreement to buy graphics processing units (GPUs). Allbirds also plans to rebrand itself as 'NewBird AI' and offer cloud computing services.
Allbirds shifts from shoes to AI, stock jumps over 600%
Shoe brand Allbirds announced a major pivot to artificial intelligence (AI) infrastructure, causing its stock to surge over 600%. The company secured a $50 million convertible financing facility to acquire high-performance GPU assets for AI compute capacity. Allbirds plans to rebrand as NewBird AI and expand its services over time. This strategic change is subject to stockholder approval in mid-May.
Allbirds trades shoes for AI business, shares jump over 430%
Allbirds is making a significant strategic change by selling its footwear business and securing $50 million in new financing. The funds will be used to acquire GPUs and rebrand the company as NewBird AI. This move caused Allbirds' shares to surge over 430%.
Allbirds pivots from shoes to AI chip services
Allbirds is shifting its business focus from making shoes to becoming an AI chip service firm. The company plans to buy and rent out AI hardware. To fund this change, Allbirds intends to raise $50 million through convertible notes and will change its name to NewBird. This follows the recent sale of its shoemaking assets to American Exchange Group for $39 million.
Allbirds shares surge 435% on AI pivot from sneakers
Allbirds' stock price surged 435% after the company announced a pivot from sneakers to AI. The San Francisco-based company will use $50 million from a convertible financing agreement to acquire graphics processing units (GPUs). Allbirds plans to rebrand as 'NewBird AI' and offer cloud computing and AI services. This shift aims to capitalize on the strong investor interest in AI-related stocks and infrastructure.
Allbirds abandons footwear for AI compute, shares jump 400%
Allbirds is shifting away from its footwear business to focus on AI compute infrastructure, rebranding as NewBird AI. The company secured a $50 million convertible financing facility to acquire processing units and build AI infrastructure. This move reflects the high demand for AI services and GPU infrastructure. Allbirds' shares surged as much as 400% following the announcement.
Lumentum named top AI stock with $1,225 price target
Lumentum Holdings Inc. (LITE) is recognized as one of the best performing AI stocks. Aletheia Capital raised its price target for Lumentum to $1,225, maintaining a Buy rating due to the company's strong performance and potential in the AI sector. Lumentum provides optical and photonic products essential for AI applications in data centers and telecommunications.
Nokia identified as a top AI stock for 2026
Nokia Oyj (NOK) is listed among the top 10 best performing AI stocks to buy for 2026. Jefferies believes Nokia is well-positioned to benefit from the growing demand for AI infrastructure due to its leadership in 5G and AI technology investments. The company's recent acquisition of Alcatel-Lucent has also strengthened its market position. Jefferies maintained a Buy rating with a $7.00 price target.
Keysight Technologies among top AI stocks to watch
Keysight Technologies, Inc. (KEYS) is highlighted as one of the top 10 best performing AI stocks to buy. Truist initiated coverage with a Hold rating and a $310 price target, recognizing Keysight's strong position as a global leader in test and measurement solutions crucial for AI development.
Figma, Sea Limited, Palo Alto Networks: 3 AI stocks to buy
Three AI stocks, Figma, Sea Limited, and Palo Alto Networks, are identified as potential buying opportunities during a market sell-off. Figma's stock has declined significantly, making it attractive despite revenue growth expectations slowing. Sea Limited's stock has also fallen sharply, but its businesses continue to grow with strong net income. Palo Alto Networks is noted for its profitability and lower valuation compared to competitors in the cybersecurity sector.
Figma, Sea Limited, Palo Alto Networks: 3 AI stocks to buy now
Figma, Sea Limited, and Palo Alto Networks are presented as three AI stocks investors might regret not buying during a market downturn. Figma's stock is trading at a significant discount, offering potential value despite slowing growth. Sea Limited shows strong revenue and net income growth despite recent stock declines. Palo Alto Networks is highlighted for its profitability and competitive valuation in the cybersecurity market.
AI boom reshapes corporate debt markets Apollo reports
Artificial intelligence is significantly changing global credit markets, according to Apollo's chief economist Torsten Slok. Technology companies now hold a larger share in corporate debt markets, driven by AI adoption and innovation. This trend influences credit risk assessments and pricing, as AI-driven businesses increase capital demand and debt issuance. Market participants need to adapt to AI's growing impact on corporate finance.
Allbirds AI investment called a mistake
An analysis suggests Allbirds' investment in AI is a mistake, arguing the company should focus on its struggling core footwear business. Allbirds has faced consistent net losses and declining gross margins since its 2021 IPO. The article states Allbirds lacks AI expertise, the investment distracts from core operations, and the benefits are unproven and costly. It advises Allbirds to prioritize product quality, supply chain efficiency, and profitability.
Fast Money traders discuss stocks boosted by AI
Traders on 'Fast Money' are discussing stocks that have seen positive movement due to artificial intelligence (AI) advancements. The segment focuses on how AI is influencing the stock market and which companies are benefiting from this trend.
Global semiconductor equipment sales hit record $135B in 2025
Global sales of semiconductor manufacturing equipment reached a record $135.1 billion in 2025, a 15% increase from 2024. This growth is driven by significant industry investments in advanced logic, memory, and AI capacity expansion. The data from SEMI highlights the accelerating buildout of semiconductor infrastructure worldwide.
AI drives Europe funding gains despite fewer deals
European venture funding increased by nearly 30% year over year in Q1 2026, reaching $17.6 billion. Funding for AI startups in the region more than doubled, accounting for over half of the total venture funding. While overall deal volume dropped 40%, late-stage funding nearly doubled. The UK and France led in funding amounts, with AI hardware, fintech, and agentic AI among the top funded sectors.
AI focus helps tech stocks rally despite global tensions
The artificial intelligence revolution is currently a stronger market driver than global conflicts, suggesting that tech stocks can continue to rally. Despite concerns over the Iran conflict, market focus remains on AI advancements, providing a basis for continued stock market growth.
Barclays bullish on Alibaba's AI investments
Barclays maintains an Overweight rating on Alibaba (BABA), viewing its increased AI investments as crucial for long-term competitiveness. While slightly trimming the price target to $186, Barclays believes these strategic AI investments are essential for Alibaba's market leadership in the AI era. This focus on AI could position Alibaba for a significant comeback in 2026.
Sources
- After sale of its shoe business, Allbirds pivots to AI
- Allbirds shares jump over 400% on plans to pivot to AI from sneakers
- Shoe brand Allbirds announces hard pivot from footwear into AI
- Allbirds shares surge over 430% as footwear firm trades shoes for AI business
- Allbirds to Pivot to AI Chips
- Allbirds shares jump over 400% on plans to pivot to AI from sneakers
- From sneakers to servers: Allbirds rides the AI compute wave
- Why Lumentum (LITE) Made the Best Performing AI Stocks List
- Is Nokia (NOK) One of the Best Performing AI Stocks to Buy?
- Keysight Technologies (KEYS): One of the Best Performing AI Stocks to Watch?
- 3 Genius AI Stocks You'll Regret Not Buying During This Sell-Off
- 3 Genius AI Stocks You'll Regret Not Buying During This Sell-Off
- Artificial intelligence boom redefines corporate debt markets, Apollo says
- Allbirds Has to Be the Dumbest AI Investment Mistake You Could Possibly Make
- 'Fast Money' traders talk stocks that have been getting AI boosts
- Global semiconductor equipment sales hit record US$135B in 2025 as AI-driven investment surges
- AI Drives Europe’s Second Straight Quarter Of Funding Gain As Deal Volume Falls Sharply
- AI Boom Is Back Despite Iran Fears. Why Tech Stocks Can Keep Rallying.
- Barclays Stays Bullish on Alibaba as AI Investment Ramps Up: Is This the Comeback Story of 2026?
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