amazon launches meta while google expands its platform

Key Takeaways

• TSMC reported a 37% increase in January revenue to $12.7 billion, driven by strong demand for AI-driven chips, with plans for $52-56 billion in capital spending.
• Microsoft plans to significantly increase its use of Marvell's Maia chips in fiscal 2028, with Marvell expecting $500 million in revenue from optical connectivity chips by fiscal 2028.
• Broadcom partners with OpenAI for AI accelerators and collaborates with Google on its Tensor Processing Unit, focusing on custom AI chips.
• Micron Technology's Q1 revenue rose 57% to $13.6 billion due to high memory chip demand, with shortages expected until 2027.
• Super Micro Computer reported record quarterly revenue of $12.7 billion and raised its 2026 sales forecast to at least $40.0 billion for AI servers.
• Tech giants like Alphabet, Amazon, and Meta are investing hundreds of billions in AI infrastructure, with Alphabet's AI-related capital expenditure potentially reaching $200 billion by 2026.
• The AI data center business is projected to grow from $500 billion annually to $1.4 trillion by 2030, benefiting REITs like Equinix and Digital Realty Trust.
• Pony AI plans to triple its autonomous robotaxi fleet to over 3,000 vehicles by the end of 2026 and expand into eight new countries.
• New AI-powered tax planning tools, such as Altruist's Hazel AI, are disrupting traditional US brokerage firms and financial advisors.
• AI startup funding increasingly features multi-tranche rounds where lead investors often secure better terms, raising concerns about unequal valuations.

Marvell Technology AI Stock Looks Like a Great Buy

Marvell Technology, an AI chipmaker, has seen its stock price drop due to worries that Microsoft might shift business to Broadcom. However, Marvell's leaders expect their custom chip business to grow 20% in fiscal 2027 and have many new designs for 2028. The company also sees strong growth in its interconnect chips for data centers. Microsoft plans to greatly increase its use of Marvell's Maia chips in fiscal 2028. Marvell also acquired Celestial AI to boost its optical connectivity chips, with expected revenue of $500 million by fiscal 2028.

Micron and Broadcom are Top AI Stocks to Watch

Micron Technology and Broadcom are two AI hardware companies showing strong growth. Micron's stock has surged over 300% in the last year, with its first-quarter revenue up 57% to $13.6 billion due to high demand for memory chips. Experts expect memory shortages to continue until 2027, boosting Micron's future. Broadcom focuses on custom AI chips, which are more efficient and affordable for companies. Broadcom has major deals, including a partnership with OpenAI for accelerators and working with Google on its Tensor Processing Unit.

Super Micro Computer Sees Record AI Sales

Super Micro Computer, known for its AI servers and storage, reported record quarterly revenue of US$12.7 billion. The company also increased its full-year 2026 sales forecast to at least US$40.0 billion, showing strong demand for AI-focused systems. While sales are booming, Super Micro faces pressure on its profit margins as it competes with companies like Dell Technologies. Investors are also watching recent sales of stock by company insiders. Super Micro aims to improve profitability by selling more high-margin data center solutions.

AI Startups See Unequal Funding Deals

The AI industry is seeing a new trend in startup funding called multi-tranche rounds. This means investors put money into a company at different valuations within the same fundraising round. Often, the main investor gets a better deal, while other investors accept higher prices just to be part of the investment. This practice is becoming common in Silicon Valley due to the highly competitive AI market. Some experts, like Duesterhoeft from Lightspeed Venture Partners, have concerns about these unequal terms.

Data Center REITs Benefit from AI Boom

The AI data center business is expected to grow significantly, from $500 billion annually to $1.4 trillion by 2030. This growth creates major investment opportunities in data centers themselves. Real Estate Investment Trusts, or REITs, like Equinix and Digital Realty Trust, are seen as excellent ways to invest in this trend. REITs own real estate that generates income and are known for reliable cash flow and steady dividends. They also have a tax advantage, as they avoid corporate taxes by distributing most profits to shareholders. Digital Realty Trust, the world's largest data center platform, and Equinix are key players in this expanding market.

Pony AI Leads Autonomous Vehicle Growth

Pony AI, a leader in autonomous vehicle technology, is highly favored by Wall Street analysts. The company works with major clients like Toyota and GAC Group, mainly in China. Pony AI recently signed a deal to develop a robotaxi fleet for China's top cities and plans to triple its fleet to over 3,000 vehicles by the end of 2026. It also aims to expand into eight new countries and has partnerships with Uber Technologies and Bolt. While Pony AI is not yet profitable due to high research and development costs, its revenue grew 71% in the last quarter, and its advanced robotaxis are breaking even in key markets.

AI Spending Sparks Market Concerns and Volatility

Investors are worried about the massive spending by tech giants like Alphabet, Amazon, and Meta on artificial intelligence. Alphabet's AI-related capital expenditure could reach $200 billion by 2026, far exceeding earlier estimates. This high spending causes market panic because investors are unsure how or when these huge AI investments will pay off. Ian Whittaker, a financial analyst, compares AI's potential impact to how robotics changed car manufacturing. The gaming sector and professional services like legal, accounting, and advertising have already seen market hits due to new AI tools. This uncertainty suggests continued market volatility for affected industries.

TSMC Sales Soar in January Due to AI Demand

Taiwan Semiconductor Manufacturing Co., or TSMC, reported a significant 36.8% increase in its January 2026 revenue. This strong growth shows that global demand for advanced semiconductors is accelerating faster than expected. The surge in sales is largely driven by the ongoing high demand for artificial intelligence technologies.

Taiwan Semiconductor January Sales Show Strong AI Growth

Taiwan Semiconductor Manufacturing, or TSM, reported record January revenue of $12.7 billion, a 37% increase from last year. This shows that the demand for AI-driven chips, especially advanced 3nm and 5nm nodes, continues to be very strong. The company expects its AI-related revenue mix to grow in 2026 and plans to increase capital spending to $52 billion to $56 billion for new facilities and advanced packaging. Major tech companies like Amazon, Meta, Alphabet, and Microsoft are spending hundreds of billions on AI infrastructure, driving this demand. Both Meta and Alphabet are already seeing positive returns from their AI investments.

AI Tax Tools Cause US Brokerage Stocks to Drop

Shares of US brokerage firms dropped after the wealth management startup Altruist launched new AI-powered tax planning features. This new technology, integrated into Altruist's Hazel AI platform, can quickly create personalized tax strategies for clients. The move sparked fears that AI could disrupt traditional financial advisors and existing brokerages. Other new brokerages like Robinhood and Public already offer AI tools and low-cost services, increasing competition. Experts believe these AI advancements will continue to challenge established financial companies.

Sources

• 1 Beaten-Down Artificial Intelligence Stock to Buy With $100 Right Now
• 2 Millionaire-Maker AI Stocks to Buy in February
• Super Micro’s AI Growth Story Balances Record Sales With Margin And Insider Risks
• Money Pouring Into AI Startups Spurs Unequal Deals
• 2 Data Center REITs That Could Triple Your Money as AI Infrastructure Hits $1.4 Trillion
• The Hidden AI Winner That Wall Street Loves for 2026
• Why Is AI Causing Market Panic – And Have Brands Over-Invested In CTV?
• TSMC posts 36.8% sales surge in January 2026 on strong AI demand
• Taiwan Semiconductor’s January Sales Show the AI Tsunami Is Still Growing
• US brokerages fall as AI-driven rout extends to financials