The artificial intelligence sector is currently experiencing a fascinating mix of strong growth, ambitious expansion, and significant investor skepticism. On one hand, prominent investors Cathie Wood and Warren Buffett both hold shares in Amazon, viewing the company as a robust player in the AI market. Amazon reported impressive third-quarter 2025 results, with revenue climbing 13% to $180.2 billion and earnings surging 38.6% to $21.2 billion. A substantial portion of these earnings, $9.5 billion, came from its investment in AI startup Anthropic. Amazon Web Services (AWS) continues to see high demand for AI, with CEO Andy Jassy announcing plans to double power capacity by 2027, and Amazon's stock hit a new high of $244.22 on October 31. Similarly, Palantir Technologies has seen its stock surge nearly 174% this year, driven by strong investor confidence in its AI-driven software for government and commercial sectors. Palantir's total contract value reached a record $2.76 billion in Q3 2025, a 151% increase, and the company secured a £480 million contract with the UK government and a $200 million partnership with Lumen Technologies, projecting $4.4 billion in sales for fiscal 2025. Nvidia, a leader in the AI market, also shows significant growth, with its stock up 44% over the past year. The company reported Q2 fiscal 2026 revenue jumping 130% to $28.6 billion, and its Blackwell platform is now in full production, experiencing huge demand. Foxconn, a key supplier, reported an 11% revenue increase to $67.7 billion in Q3 2025, largely due to strong demand for AI servers, and is expanding production in Wisconsin and Texas with support from Apple and Nvidia. However, this optimism is tempered by significant concerns. Michael Burry, known for predicting the 2008 housing crash, has placed a substantial $1.1 billion bet against major AI stocks, including Nvidia, Apple, and Microsoft. This move by Burry's Scion Asset Management led to global market plunges, with the Nasdaq Composite Index falling 2.5% and Nvidia's stock dropping over 5%. Broader market worries about high AI stock valuations caused US futures to fall, impacting companies like AMD and Super Micro Computer. Meta Platforms is also facing investor nervousness due to its high AI spending, which could reach $72 billion this year, causing its stock to drop almost 17% in four days and losing $307 billion in market value. Even AI lending company Upstart saw its stock fall 14.8% after its AI models 'overreacted' to economic stress, reducing loan approval rates. Amidst these developments, Elon Musk's SpaceX, valued at over $200 billion, is exploring ambitious plans to build AI data centers in space using Starlink V3 satellites, aiming to address terrestrial energy and land constraints.
Key Takeaways
- Amazon reported Q3 2025 revenue of $180.2 billion and earnings of $21.2 billion, with a $9.5 billion gain from its investment in AI startup Anthropic.
- Amazon Web Services (AWS) expects to double its power capacity by 2027 to meet strong AI demand.
- Michael Burry placed a $1.1 billion bet against major AI stocks, including Nvidia, Apple, and Microsoft, leading to market declines.
- Nvidia's stock climbed 44% over the past year, reporting Q2 fiscal 2026 revenue of $28.6 billion, a 130% jump, driven by demand for its Blackwell platform.
- Palantir Technologies' stock surged nearly 174% this year, forecasting $4.4 billion in sales for fiscal 2025 and securing a £480 million UK government contract.
- Foxconn's Q3 2025 revenue increased 11% to $67.7 billion due to strong AI server demand, with production expanding in Wisconsin and Texas.
- Meta's high AI spending, potentially reaching $72 billion this year, has caused investor concern, leading to a $307 billion drop in market value.
- Elon Musk's SpaceX plans to establish AI data centers in space using Starlink V3 satellites to address terrestrial limitations.
- Upstart's stock fell 14.8% after its AI lending model 'overreacted' to economic stress, reducing loan approval rates from 23.9% to 20.6%.
- US stock futures dropped amid concerns over high AI stock valuations, impacting companies like AMD and Super Micro Computer.
Wood and Buffett Both Own Amazon AI Stock
Cathie Wood and Warren Buffett, two famous investors, both own shares in Amazon. They see Amazon as a strong player in the artificial intelligence market. Amazon reported strong third-quarter 2025 results, with revenue up 13% to $180.2 billion and earnings up 38.6% to $21.2 billion. A large part of these earnings came from a $9.5 billion gain from its investment in AI startup Anthropic. Amazon Web Services (AWS) shows strong growth in AI demand, with CEO Andy Jassy stating power capacity will double by 2027. Despite recent layoffs and a legal settlement, Amazon's stock reached a new high of $244.22 on October 31.
Amazon AI Stock Attracts Wood and Buffett
Cathie Wood and Warren Buffett, two well-known investors, both hold shares in Amazon. They view Amazon as a strong artificial intelligence company, even though its stock trades lower than competitors like Microsoft. Amazon reported impressive third-quarter 2025 results, with revenue reaching $180.2 billion, a 13% increase. Earnings grew by 38.6% to $21.2 billion, partly due to a $9.5 billion gain from its investment in AI startup Anthropic. Amazon Web Services (AWS) continues to see high demand for AI, and CEO Andy Jassy expects its power capacity to double again by 2027. Amazon shares closed at a new high of $244.22 on October 31.
Michael Burry Bets $1.1 Billion Against AI Stocks
Michael Burry, the famous investor from "The Big Short," has placed a $1.1 billion bet against major artificial intelligence stocks. His hedge fund, Scion Asset Management, filed documents showing large put options against companies like Nvidia, Apple, and Microsoft. Burry is known for predicting the 2008 housing market crash and believes the current AI boom cannot last. This significant bet suggests he expects a market downturn. Investors worldwide are closely watching the market's reaction to this news.
Michael Burry's $1.1 Billion AI Bet Shakes Markets
Global markets plunged after "Big Short" investor Michael Burry revealed his $1.1 billion bet against artificial intelligence stocks. On Tuesday, the Nasdaq Composite Index fell 2.5%, and other major indexes like the S&P 500 and Dow Jones also dropped. Burry's firm, Scion Asset Management, holds put options against key tech companies such as Nvidia and Microsoft. Nvidia's stock fell over 5%, and Microsoft also saw declines. This move by Burry, known for predicting the 2008 housing crash, has caused widespread concern and sell-offs in markets worldwide.
Palantir Leads Defense AI With $4.4 Billion Sales Forecast
Palantir Technologies stock has surged nearly 174% this year, showing strong investor confidence in its AI-driven future. The company's software uses AI for real-time decision-making in government and commercial sectors. Palantir reported impressive Q3 2025 results, with total contract value reaching a record $2.76 billion, a 151% increase. CEO Alex Karp noted the company now makes more profit in a quarter than it once did in revenue. Palantir secured a £480 million contract with the UK government and a $200 million partnership with Lumen Technologies. The company expects total sales of about $4.4 billion in fiscal 2025, solidifying its leadership in defense AI.
Foxconn Sales Jump 11% on Strong AI Server Demand
Foxconn, also known as Hon Hai Precision Industry Co., reported a strong third quarter in 2025 with $67.7 billion in revenue, an 11% increase. This growth is mainly due to a huge demand for AI servers. The company expects sales to rise another 15% in the fourth quarter. Foxconn builds the essential server infrastructure for Nvidia chips and is expanding its AI server production in Wisconsin and Texas, with support from Apple and Nvidia. Chairman Liu Young-way noted that generative AI is changing all industries and Foxconn is moving production out of China to other regions.
US Futures Fall Amid AI Stock Valuation Concerns
US stock futures dropped on Wednesday as investors worried about the high value of artificial intelligence stocks. S&P 500 futures fell 0.3%, Nasdaq 100 futures declined 0.6%, and Dow Jones futures lost almost 40 points. This happened after AMD's revenue forecast disappointed investors, causing its stock to sink nearly 5%. Super Micro Computer also plunged 9% due to a weak earnings outlook. Nvidia slipped 1.2%, and Qualcomm edged down before its earnings report.
Meta Investors Worry About High AI Spending
Meta's high spending on artificial intelligence is making investors nervous, reminding them of the company's costly metaverse investments in 2022. Investors are concerned that AI spending could reach $72 billion this year and grow even more in 2026. CEO Mark Zuckerberg defended the strategy, saying it is important to build capacity aggressively. However, Meta's stock has dropped almost 17% in four days, losing $307 billion in market value. Unlike competitors, Meta uses AI mainly for internal tools like ad ranking and Reels, without clear ways to make money from it yet.
Elon Musk Plans Space Data Centers for AI
Elon Musk plans to build data centers in space for artificial intelligence, using SpaceX's Starlink V3 satellites. This idea aims to solve problems on Earth like high energy use and limited land for AI data centers. SpaceX, valued at over $200 billion, expects $15.5 billion in revenue this year, largely from its Starlink satellite internet service. Since SpaceX is a private company, regular investors cannot buy its stock directly. However, ETFs like ARK Venture Fund, ERShares Private-Public Crossover ETF, and The Destiny Tech100 offer ways to invest in companies tied to Musk's space ventures and the AI boom.
Nvidia Stock Poised for Big Growth in AI Market
Nvidia stock is expected to see significant growth as it leads the way in the artificial intelligence market. Major tech companies like Microsoft are investing heavily in Nvidia's AI infrastructure. Nvidia's stock price has climbed 44% over the past year, nearing its record high. The company reported strong Q2 fiscal 2026 earnings, with revenue jumping 130% to $28.6 billion and non-GAAP EPS at $1.05. Nvidia's Blackwell platform is now in full production and seeing huge demand. Analysts rate Nvidia a "Strong Buy," with some predicting its stock could reach $350.
Upstart Stock Falls After AI Model Overreacts to Economy
Upstart, an AI-powered lending company, saw its stock drop 14.8% after its third-quarter earnings call. While the company reported strong profits, with net income of $32 million, investors were disappointed by lower loan origination volume of $2.9 billion and cautious future guidance. Upstart's AI models intentionally reduced lending activity because they detected economic stress during the summer. CEO Dave Girouard admitted the model "overreacted," causing a drop in the loan approval rate from 23.9% to 20.6%. This raised questions among analysts about the reliability and uniqueness of Upstart's AI underwriting model.
Sources
- Cathie Wood and Warren Buffett Both Own This Artificial Intelligence (AI) Stock. Time to Buy?
- Cathie Wood and Warren Buffett Both Own This Artificial Intelligence (AI) Stock. Time to Buy?
- Markets are plunging worldwide after ‘Big Short’ investor Michael Burry reveals $1.1 billion bet against AI stocks
- Markets plunge worldwide after ‘Big Short’ investor Michael Burry reveals $1.1 billion bet against AI stocks
- Palantir's Defence AI Surge: Expect $4.4B in Sales as Company Dominates Military Tech Race
- Nvidia's Foxconn sees 11% sales surge to $67.7 billion in Q3 as AI server shipments soar
- US Futures Dip on AI Valuation Jitters
- Meta Investors ‘Losing Patience’ With AI Spending
- Elon Musk’s Space Data Centers: 3 ETFs to Ride the AI Boom to the Stars
- Buy Nvidia Stock Now for the Next ‘Golden Wave’ of AI
- Upstart stock drops as AI model 'overreacts' to macro signals
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