Amazon Google Meta invest $500 billion as Microsoft Azure grows

Key Takeaways

• Amazon, Alphabet, Microsoft, Meta, and Oracle plan to spend over $700 billion on data centers in 2026, with over $450 billion dedicated to AI chips.
• Nvidia, Broadcom, and TSMC are major beneficiaries of this AI spending boom, with Nvidia projecting global data center spending could reach $3 trillion to $4 trillion annually by 2030.
• OpenAI has hired Peter Steinberger, creator of the open-source AI agent OpenClaw, with plans to integrate it into its product offerings.
• Cadence Design Systems launched its Cadence ChipStack AI Super Agent in February 2026, an AI tool for automating chip design and testing, compatible with NVIDIA Nemotron and OpenAI GPT.
• Western Digital introduced an AI-focused storage plan in early February 2026, including large capacity hard drives and specialized software, and increased its share buyback plan to $6.00 billion.
• Microsoft's stock dropped almost 20% in 2026, making it the worst-performing "Magnificent Seven" stock, yet its Azure cloud platform grew 39% in Q2 fiscal 2026.
• Citi strategists identify buying opportunities in struggling AI software stocks, including Microsoft and Palantir, due to market overreactions to AI's impact.
• NVIDIA continues to experience strong demand for its AI chips and next-generation GPUs, maintaining its leadership in semiconductors.
• Cognex returned to profitable growth in Q4 2025, driven by new AI-powered machine vision products, with its stock up 59.2% year to date.
• SecurityPal AI promotes automating security questionnaires as a strategic tool to increase enterprise sales and predictability, as detailed in its "2026 Buyer's Guide."

Big Tech to spend $700 billion on AI in 2026

Amazon, Alphabet, Microsoft, Meta, and Oracle plan to spend over $700 billion on data centers in 2026. About two-thirds of this huge budget, over $450 billion, will go towards buying GPUs, CPUs, and other AI chips. Taiwan Semiconductor Manufacturing, or TSMC, is a top company to benefit from this spending. TSMC is the world's largest contract maker of advanced semiconductor chips. This makes TSMC a strong investment as big tech companies increase their AI capabilities.

Three stocks to buy as AI spending booms

Spending on artificial intelligence is expected to reach new highs in 2026 as major tech companies invest heavily in data centers. Amazon, Alphabet, and Meta Platforms alone plan to spend over $500 billion this year on these projects. Nvidia, Broadcom, and Taiwan Semiconductor Manufacturing are top companies to benefit from this AI building boom. Nvidia predicts global data center spending could reach $3 trillion to $4 trillion each year by 2030. These three stocks show strong projected revenue growth, with Nvidia at 64%, Broadcom at 51%, and TSMC at 34% for their respective fiscal years.

OpenClaw creator Peter Steinberger joins OpenAI

Sam Altman announced that Peter Steinberger, who created the AI tool OpenClaw, is joining OpenAI. OpenClaw is an open source AI agent that helps automate tasks such as managing email and using online services. OpenAI plans for OpenClaw to become a key part of its product offerings. Peter Steinberger, an Austrian software developer, launched OpenClaw last month. OpenClaw is also popular in China, where it works with local language models like DeepSeek.

Cadence Design Systems stock rises with new AI agent

Cadence Design Systems launched its new Cadence ChipStack AI Super Agent in February 2026. This AI tool automates the design and testing of silicon chips by managing virtual engineers across Cadence's platforms. It works with both cloud-based and local AI models such as NVIDIA Nemotron and OpenAI GPT. Cadence expects to reach $6.9 billion in revenue and $1.7 billion in earnings by 2028. Despite this new product and strong growth outlook, Zacks currently rates Cadence as a "Sell."

Western Digital boosts buyback and unveils AI storage plans

In early February 2026, Western Digital paid off its 4.750% Senior Notes due that year. The company also increased its share buyback plan to $6.00 billion. Western Digital introduced a new AI-focused storage plan, including very large capacity hard drives and special software for big and medium-sized customers. This move shows Western Digital is becoming a key partner for AI infrastructure. The company aims for $11.9 billion in revenue and $2.2 billion in earnings by 2028.

Citi finds buying chances in struggling AI software stocks

Worries about AI changing the software industry have caused software stocks to fall sharply. The iShares Expanded Tech-Software Sector ETF is down more than 20% in 2026 and over 8% in February. Citi strategists believe this creates a buying opportunity for some software and services companies. They identified stocks in the Russell 3000 that have fallen but still have improving earnings forecasts for 2025, 2026, and 2027. Microsoft, the worst-performing "Magnificent Seven" stock in 2026, and Palantir are among the stocks on Citi's list.

NVIDIA stock buzzes with strong AI chip demand

Social media discussions show strong interest in NVIDIA's latest quarterly results and high demand for its AI chips. Investors are debating if the company's rapid growth makes its high stock price fair. Many feel positive about NVIDIA's future, expecting it to remain a leader in semiconductors. New announcements about NVIDIA's next-generation GPUs have also created excitement for their AI computing innovations. While some worry about supply chain issues and competition, the overall outlook for NVIDIA's long-term prospects remains hopeful.

SecurityPal AI links automation to better sales

SecurityPal AI states that automating security questionnaires is important for enterprise sales, not just for saving time. The company's LinkedIn post points to a "2026 Buyer's Guide" that explains the benefits of modern automation. SecurityPal AI aims to show its solution as a strategic tool that helps increase revenue and makes sales more predictable. This approach targets decision-makers in both sales and security departments. The guide could help more companies adopt SecurityPal AI's solutions and improve its standing in the security software market.

Microsoft stock falls but remains a strong buy

Microsoft's stock has dropped almost 20% in 2026, making it one of the worst-performing major tech companies. Despite this, Microsoft remains a leader in artificial intelligence, and its Azure cloud platform grew 39% in the second quarter of fiscal 2026. The company's overall revenue increased by 17% during that same quarter. Microsoft plans to spend about $150 billion annually on AI infrastructure, which is less than what Amazon and Alphabet are spending. Analysts believe the stock is now undervalued, offering a good buying opportunity not seen since 2023.

Cognex sees profitable growth with new AI products

Cognex reported strong results for Q4 2025, showing a return to profitable growth. The company's stock has risen significantly, up 59.2% year to date and 78.7% over the past year. This improved performance comes from selling off less important business lines, streamlining its sales team, and focusing on new AI-powered machine vision products. For Q4 2025, Cognex had revenue of US$252.34 million and net income of US$32.66 million, with full-year sales reaching US$994.36 million. Cognex also completed a US$500 million stock buyback and authorized a new one, showing confidence in its financial health.

Sources

• Big Tech Will Spend $700 Billion on Artificial Intelligence in 2026. Here's My Top Stock to Buy to Take Advantage.
• The Only 3 Stocks You Need to Capitalize on AI Spending
• OpenClaw creator Peter Steinberger joining OpenAI, Altman Says
• Why Cadence Design Systems (CDNS) Is Up 5.6% After Unveiling Its ChipStack AI Super Agent
• Should Western Digital’s (WDC) $6 Billion Buyback and AI Storage Roadmap Shift Require Action From Investors?
• AI fears are hitting software stocks the hardest. Citi sees a buying opportunity in many names
• NVIDIA Stock (NVDA) Opinions on AI Chip Demand
• SecurityPal AI Highlights Strategic Role of Security Questionnaire Automation in Enterprise Sales
• Investors Are Selling This AI Stock, but Is It Actually a Screaming Buy?
• Cognex Returns To Profitable Growth As AI Products Reshape Business