Major technology companies are significantly increasing their investments in artificial intelligence infrastructure, with the "Magnificent Seven" planning to spend over $680 billion in 2026. This represents a 70% increase from their 2025 spending. Amazon leads with an expected $200 billion, followed by Alphabet at $180 billion, Microsoft at $144 billion, and Meta Platforms at $125 billion. Investors are closely monitoring these massive outlays for clear returns.
Microsoft's stock recently experienced a dip, falling over 20% due to concerns about OpenAI's financial losses and competition from Alphabet. Despite this, OpenAI is actively working to raise $100 billion and plans to launch new products like Frontier. Microsoft itself reported a strong fourth quarter, with its cloud business, Azure, growing 26% to $51.5 billion, and its commercial backlog reaching $625 billion. Analysts project Microsoft's earnings to grow 14% to 15% annually, suggesting its current valuation of 25 times earnings could be a buying opportunity.
Advanced Micro Devices (AMD) also saw its stock drop after its fourth-quarter 2025 earnings report, creating what some see as a rare investment chance. AMD's adjusted earnings increased 26% in 2025 to $4.17 per share, and the company anticipates even higher earnings growth in 2026. AMD projects its data center market will expand from $200 billion to $1 trillion by 2030, with revenue growing over 35% annually through 2030 and earnings per share potentially exceeding $20.
Beyond these giants, other AI-related developments are unfolding. HPE's CFO, Marie Myers, successfully implemented an AI solution nicknamed "Alfred" to transform finance meetings, cutting financial reporting time by 40% and processing costs by 25%. This eliminated about 90% of manual work. Meanwhile, Cognex stock surged 39.2% to a 52-week high after reporting strong fourth-quarter earnings, signaling a potential turnaround for the machine vision company. However, not all AI ventures are proving profitable, as one author's AI trading bot on Polymarket lost almost all its money, debunking viral claims of easy profits.
In the broader market, Beeneet Kothari of Tekne Capital highlights significant investment potential in Chinese tech stocks, particularly in AI, citing China's strong lead, large domestic market, and government support. Samsung is noted for its strong presence in China. Conversely, Pinterest's stock dropped as much as 22% after the company projected weaker first-quarter revenue, falling below analyst estimates despite a 12% increase in global users to 619 million.
Key Takeaways
- The "Magnificent Seven" tech companies plan to invest over $680 billion in AI infrastructure in 2026, a 70% increase from 2025.
- Microsoft's stock dipped over 20% amid concerns about OpenAI's financial losses and competition from Alphabet, despite Azure growing 26% to $51.5 billion and a $625 billion commercial backlog.
- OpenAI is seeking to raise $100 billion and is launching new products like Frontier.
- AMD's stock drop presents a buying opportunity, with adjusted earnings growing 26% in 2025 and projections for its data center market to reach $1 trillion by 2030.
- Amazon plans to spend $200 billion on AI infrastructure in 2026, Alphabet $180 billion, and Meta Platforms $125 billion.
- Nvidia remains a leader in AI hardware with its powerful GPUs, and is listed among top long-term AI investment stocks alongside Alphabet, Microsoft, Amazon, and AMD.
- HPE's CFO implemented an AI solution, "Alfred," cutting financial reporting time by 40% and processing costs by 25%, eliminating 90% of manual work.
- Cognex stock surged 39.2% to a 52-week high after reporting strong Q4 earnings, including 35% adjusted earnings growth.
- An AI trading bot on Polymarket lost almost all its money, debunking viral claims of easy profits and highlighting the cost of proper AI infrastructure.
- Chinese AI stocks, including Samsung, are seen as offering significant investment potential due to China's AI leadership and government support.
Microsoft AI Stock Dips Offers Buying Opportunity
Microsoft's stock recently dropped over 20% due to concerns about OpenAI's financial losses and competition from Alphabet. However, OpenAI is raising $100 billion and launching new products like Frontier. Microsoft reported a strong quarter with its cloud business, Azure, growing 26% to $51.5 billion. Its commercial backlog also increased to $625 billion. Analysts expect Microsoft's earnings to grow 14% to 15% annually, making its current valuation of 25 times earnings a potential buying opportunity.
Microsoft Stock Dip Creates AI Buying Chance
Microsoft's stock has fallen recently due to worries about OpenAI's large financial losses and competition from companies like Alphabet. Despite these concerns, OpenAI is working to raise $100 billion and is launching new products such as Frontier. Microsoft itself had a strong fourth quarter, with its cloud business growing 26% to $51.5 billion and its commercial backlog reaching $625 billion. Analysts predict Microsoft's earnings will increase by 14% to 15% each year, suggesting its current lower stock price offers a good buying opportunity.
AMD Stock Drop Offers Rare AI Investment Chance
Advanced Micro Devices AMD stock recently dropped after its fourth quarter 2025 earnings report on February 3. This dip creates a strong buying opportunity for investors. AMD's adjusted earnings grew 26% in 2025 to $4.17 per share, and it expects even higher earnings growth in 2026. The company sees its data center market growing from $200 billion to $1 trillion by 2030. AMD predicts its revenue will grow over 35% annually through 2030, with earnings per share potentially exceeding $20.
Advanced Micro Devices Stock Dip Signals Big Opportunity
Advanced Micro Devices AMD stock fell after its fourth quarter 2025 results, even though it showed strong growth. This drop presents a good chance for investors to buy. AMD's adjusted earnings increased 26% in 2025 to $4.17 per share, and it expects strong earnings growth in 2026. The company projects its data center market will grow from $200 billion to $1 trillion by 2030. AMD believes its revenue will grow over 35% annually through 2030, with earnings per share potentially reaching over $20.
Top Tech Companies Invest $680 Billion in AI
The "Magnificent Seven" tech companies plan to spend over $680 billion on artificial intelligence AI infrastructure in 2026. This is a 70% increase from their 2025 spending. Amazon expects to spend $200 billion, Alphabet $180 billion, Microsoft $144 billion, Meta Platforms $125 billion, and Tesla $20 billion. Apple plans $13 billion, while Nvidia is capital-light. Investors are now closely watching for clear returns from these massive AI investments. For example, Meta's stock rose when AI boosted ad revenue, but Microsoft's stock dropped despite its Copilot AI assistant gaining users.
Pinterest Stock Falls on Lower Sales Forecast
Pinterest's stock dropped as much as 22% after the company projected weaker first-quarter revenue. The company expects $951 million to $971 million, which is below analyst estimates. Pinterest also reported slightly lower-than-expected holiday quarter sales of $1.32 billion. Despite this, global users grew 12% to 619 million. Pinterest recently hired Lee Brown as its first Chief Business Officer and Claudine Cheever to boost its business.
Expert Sees Big Potential in Chinese AI Stocks
Beeneet Kothari, founder of Tekne Capital, believes Chinese tech stocks offer significant investment potential, especially in artificial intelligence AI. He notes China's strong lead in AI development, its large domestic market, and strong government support for the tech sector. Kothari also expects a boom in Chinese tech company IPOs soon. Among his top choices, he specifically names Samsung, highlighting its strong presence and operations in China.
My AI Trading Bot Lost Money on Polymarket
The author tested an AI trading bot on Polymarket to see if viral claims of huge profits were true. Contrary to popular social media posts, the author's AI bot lost almost all its money. The author built a Python bot using momentum, price lock, and mean reversion strategies, with a 3% stop loss. The article also debunks the idea that such complex AI trading can run on a very cheap server, explaining that proper infrastructure and AI services cost much more. Many viral posts about AI trading are likely fake and designed to get attention.
HPE CFO Uses AI to Transform Finance Meetings
Marie Myers, HPE's CFO, used artificial intelligence AI to greatly improve her finance team's weekly meetings. She partnered with Deloitte to create "CFO Insights," an AI solution nicknamed "Alfred," which runs on HPE's Private Cloud AI. This system cut financial reporting time by 40% and processing costs by 25%. Alfred uses both generative AI to combine data and agentic AI to automate tasks previously done by human analysts. The change eliminated about 90% of manual work, allowing the team to focus on future strategies and reskilling.
Cognex AI Stock Soars 39 Percent on Strong Earnings
Cognex stock surged 39.2% to a 52-week high of $59.88 on February 12, 2026. This jump followed the release of its strong fourth-quarter earnings on February 11. The company reported 10% GAAP earnings growth, a 35% surge in adjusted earnings, and 10% revenue growth. Cognex also expects about 13% revenue growth for the first quarter of fiscal 2026. Investors view these positive results and guidance as a sign of a turnaround for the machine vision company, which struggled in 2025.
Five Top AI Stocks for Long Term Investment
Investing in artificial intelligence AI stocks offers great potential for the next decade. Five top companies to consider are Nvidia, Alphabet, Microsoft, Amazon, and Advanced Micro Devices AMD. Nvidia leads in AI hardware with its powerful GPUs, while Alphabet excels in AI research across its many products. Microsoft integrates AI into its cloud services and products, boosted by its OpenAI partnership. Amazon uses AI in its e-commerce, AWS cloud, and Alexa voice assistant. AMD is a strong competitor in the AI chip market, offering cost-effective solutions.
Sources
- The Best Artificial Intelligence (AI) Stock to Buy Now
- The Best Artificial Intelligence (AI) Stock to Buy Now
- A Once-in-a-Decade Investment Opportunity: The Best Artificial Intelligence (AI) Stock to Buy in February 2026
- A Once-in-a-Decade Investment Opportunity: The Best Artificial Intelligence (AI) Stock to Buy in February 2026
- The "Magnificent Seven" Plan to Spend $680 Billion Largely on Artificial Intelligence Capex: Is Now the Time to Pile Into the Group?
- Pinterest Slips on Weak Sales Projection After Layoffs, AI Pivot
- The allure of Chinese tech stocks. A pro picks 7 names.
- I Actually Gave an AI Money to Trade on Polymarket – Here’s What Nobody on Twitter Wants You to Know
- How HPE's CFO used AI to transform the 100-slide Monday meeting her team spent all week preparing for
- This AI Stock Is Bucking the Bears and Rocketed 39% to a 52-Week High
- 5 artificial intelligence stocks you can buy and hold for the next decade
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