Amazon Backs Anthropic AI as Salesforce and Adobe Face Stock Drops

The artificial intelligence sector is experiencing dynamic shifts, with major players like Amazon making strategic moves while others face investor scrutiny. Amazon is leveraging AI internally to enhance efficiency, potentially saving billions by reducing the need for 600,000 warehouse roles. The tech giant also holds a significant 14% stake in Anthropic, whose Claude large language model is gaining traction in the enterprise market. Meanwhile, memory hardware specialist Micron Technology is poised for growth, with revenue jumping 57% to $13.64 billion due to high AI demand and a global shortage. Smaller AI-focused companies are also demonstrating strong potential. UiPath, known for robotic process automation, is developing an orchestration platform to manage diverse AI agents. GitLab, a DevSecOps platform, is expanding its customer base and introducing its own AI agents to assist developers. In cybersecurity, SentinelOne, an AI-powered firm, is growing rapidly, partnering with Lenovo to pre-install its Singularity Platform and acquiring Prompt Security to bolster AI data leakage protection. Investment in AI infrastructure and tools continues to surge. Cisco Systems is emerging as a key player, reporting $1.3 billion in AI-related orders in one quarter and projecting $4 billion in AI orders and $3 billion in AI revenue for fiscal year 2026. MACOM Technology Solutions also saw its stock rise after analysts upgraded price targets, citing its role in AI infrastructure and strong gross margins. Cloud optimization firm Cast AI achieved a valuation over $1 billion with new investment, aiming to expand its OMNI Compute GPU marketplace globally. However, not all AI news is positive for established tech giants. Salesforce Inc. and Adobe Inc. both experienced sharp stock declines, dropping 10.2% and 9.5% respectively, as investors expressed concerns about AI's potential negative impact on their core business models. In the content creation space, Alibaba-backed PixVerse launched a real-time AI video tool, allowing users to instantly control character actions, and aims for 200 million users by mid-year, positioning itself as a faster and cheaper alternative to competitors like OpenAI's Sora. Wolters Kluwer is also navigating AI integration, with new leadership focusing on using AI for legal operations, though its stock recently dropped 18% over 90 days. Palladyne AI saw its shares increase by 9.09% after raising its 2026 revenue guidance. For investors, an AI analyst from TipRanks identified three ETFs with an Outperform rating and at least 10% growth potential, including funds focused on financial, broad U.S. equity, and quality growth sectors, particularly in technology and communication services.

Key Takeaways

• Amazon holds a 14% stake in Anthropic, whose Claude LLM is gaining enterprise market share, and uses AI internally to potentially save billions by reducing 600,000 warehouse roles.
• Micron Technology's revenue increased 57% to $13.64 billion due to AI demand and a global memory hardware shortage, making it a strong AI investment pick.
• UiPath is developing an orchestration platform for managing diverse AI agents, while GitLab is adding AI agents to assist software developers.
• SentinelOne, an AI cybersecurity firm, partnered with Lenovo to pre-install its Singularity Platform and acquired Prompt Security for AI data leakage protection.
• Cast AI, a cloud optimization company, reached a valuation over $1 billion with new investment to expand its OMNI Compute GPU marketplace globally.
• Alibaba-backed PixVerse launched a real-time AI video tool, aiming for 200 million users by mid-year, offering faster and cheaper alternatives to tools like OpenAI's Sora.
• Salesforce Inc. and Adobe Inc. saw their stock prices drop by 10.2% and 9.5% respectively, due to investor concerns about AI's potential negative impact on their business models.
• Cisco Systems is becoming a major AI infrastructure player, reporting $1.3 billion in AI-related orders in one quarter and projecting $4 billion in AI orders and $3 billion in AI revenue for fiscal year 2026.
• MACOM Technology Solutions Holdings Inc. stock rose 7.68% after analysts upgraded price targets, citing its AI infrastructure and strong gross margins of 54.7%.
• Wolters Kluwer is integrating AI into legal operations through its ELM Solutions segment, while Palladyne AI raised its 2026 revenue guidance, leading to a 9.09% stock increase.

Amazon and Micron are Top AI Stock Picks for 2026

Amazon and Micron Technology are suggested as strong AI stock picks for 2026. Amazon benefits from using AI internally to boost efficiency, potentially saving billions by avoiding 600,000 warehouse roles. Amazon also holds a 14% stake in Anthropic, a company with the Claude LLM, which is growing in the enterprise market. Micron Technology is poised to gain from a global shortage of memory hardware, crucial for AI. Its revenue jumped 57% to $13.64 billion, driven by AI demand, and tight supply allows for price increases.

Amazon and Micron are Smart AI Investments for 2026

Amazon and Micron Technology are highlighted as strong AI investment choices for 2026. Amazon uses AI internally to improve efficiency, potentially saving billions by reducing the need for 600,000 warehouse jobs. Amazon also owns a 14% share in Anthropic, a company whose Claude LLM is gaining market share in enterprise AI. Micron Technology is expected to benefit greatly from a worldwide memory hardware shortage, which is vital for AI systems. Micron's revenue increased by 57% to $13.64 billion, fueled by AI demand, and its stock is considered undervalued with a P/E of 10.

Three Small AI Stocks Show Big Growth Potential

UiPath, GitLab, and SentinelOne are three smaller AI companies with significant growth potential. UiPath, a leader in robotic process automation, is now developing an orchestration platform to manage AI agents from various vendors. GitLab, a DevSecOps platform, is adding new customers and launching its own AI agents to help programmers throughout software development. SentinelOne, an AI-powered cybersecurity company, is growing quickly and has a partnership with Lenovo to install its Singularity Platform. SentinelOne also acquired Prompt Security to enhance its AI data leakage cybersecurity offerings.

UiPath GitLab SentinelOne are Promising AI Stocks

UiPath, GitLab, and SentinelOne are three AI stocks identified with strong potential for growth. UiPath, originally in robotic process automation, now focuses on an orchestration platform for managing diverse AI agents. GitLab, a DevSecOps platform, is expanding its customer base and introducing AI agents to assist software developers. SentinelOne, an AI cybersecurity firm, is rapidly growing and partnered with Lenovo to pre-install its Singularity Platform. The company also acquired Prompt Security to boost its AI data leakage protection.

Wolters Kluwer Stock Value Reviewed After AI and Leadership Changes

Wolters Kluwer's stock valuation is being reviewed following new leadership and AI software developments. Dean Sonderegger now leads ELM Solutions, a key part of the Business segment, aiming to use AI for legal operations. Cathy Rowe, Chief Legal Information Officer, also received industry recognition, showing the company's focus on leadership and tech. The stock recently dropped 18% in 90 days, but it shows a 40% return over five years. Investors will watch how AI integration and new leadership impact earnings and competitive advantage.

Cast AI Reaches Billion Dollar Value With New Investment

Cast AI, a Miami-based company, received a strategic investment, pushing its valuation above $1 billion. Pacific Alliance Ventures, part of South Korea's Shinsegae Group, made the investment. This funding will help Cast AI expand globally and grow its OMNI Compute GPU marketplace. The platform automates application performance for cloud-native and AI workloads, optimizing infrastructure across multiple cloud providers. Major companies like Akamai, BMW, and Cisco use Cast AI's technology.

PixVerse Launches Real Time AI Video Tool

Alibaba-backed PixVerse launched a new AI tool on Tuesday that creates videos in real time. Users can instantly control characters' actions, like crying or dancing, as the video generates. Co-founder Jaden Xie believes this interactive technology could change how people watch shows and play games. Founded in 2023, PixVerse aims for 200 million registered users by the first half of this year. Chinese companies like PixVerse are quickly developing AI video tools that are faster and cheaper than competitors like OpenAI's Sora.

Salesforce and Adobe Stocks Drop Due to AI Concerns

Salesforce Inc. and Adobe Inc. saw their stock prices fall sharply on Tuesday. Salesforce shares dropped 10.2%, and Adobe shares fell 9.5%. Investors are worried about how artificial intelligence might negatively impact these companies' business models. Both companies were among the biggest losers on the S&P 500 for the day.

Cisco Systems Becomes Key Player in AI Revolution

Cisco Systems is transforming into a major player in AI infrastructure, earning a buy rating. The company's AI-related orders surged to $1.3 billion in one quarter. Management expects $4 billion in AI orders and $3 billion in AI revenue for fiscal year 2026. Integrating Splunk helps shift Cisco towards more stable, recurring cloud revenues. Despite a temporary dip in its security segment, Cisco's stock is seen as undervalued with potential for a 20% increase.

Palladyne AI Stock Rises After Boosting 2026 Revenue Outlook

Palladyne AI's shares increased by 9.09% in pre-market trading, reaching $6.84. The Salt Lake City-based company announced it raised its revenue guidance for the full year ending December 31, 2026. This positive news led to the higher trading activity for PDYN stock.

AI Analyst Recommends Three Top ETFs for Investment

An AI analyst from TipRanks identified three exchange-traded funds (ETFs) as top investment picks on January 13, 2026. These ETFs received an Outperform rating and show at least 10% potential for growth. The recommended funds include the Financial Select Sector SPDR Fund and the Goldman Sachs MarketBeta U.S. Equity ETF. Also on the list is the American Century STOXX U.S. Quality Growth ETF, which invests in strong American businesses, especially in technology and communication services.

MACOM Stock Price Rises on AI Growth and Analyst Upgrades

MACOM Technology Solutions Holdings Inc. stock increased by 7.68% on January 13, 2026, closing at $213.52. A Truist analyst raised MACOM's price target to $200 from $180, keeping a Buy rating due to its AI infrastructure. BofA also increased its price target to $220 from $190, showing a positive view of MACOM's semiconductor position. Bryan Ingram, with experience from Broadcom, joined MACOM's Board as an independent director. The company shows strong gross margins of 54.7% and positive operational cash flow of $69.64 million, with AI driving new growth opportunities.

Sources

• 2 No-Brainer AI Stocks to Buy Hand Over Fist in 2026
• 2 No-Brainer AI Stocks to Buy Hand Over Fist in 2026
• 3 AI Stocks That Could Go Parabolic
• 3 AI Stocks That Could Go Parabolic
• Assessing Wolters Kluwer (ENXTAM:WKL) Valuation After Recent Leadership And AI Software Developments
• Cast AI Secures Strategic Investment at Over $1B Valuation
• Alibaba-backed PixVerse launches real-time AI video tool, as Chinese rivals race past OpenAI on speed and cost
• Salesforce and Adobe see their stocks slide as AI fears intensify
• Cisco Systems: The Silent Giant Of The AI Revolution
• Palladyne AI trades higher after raising 2026 revenue guidance
• 3 Best ETFs to Invest In, According to AI Analyst, 01/13/2026
• Truist Analyst Elevates Price Target for MACOM Stock Amid AI Growth Optimism​