Amazon launches Trainium as Apple sees Mac sales rise 6%

Key Takeaways

Block Earnings Rise as AI Tools Boost Efficiency

Block reported strong first-quarter earnings that beat expectations and raised its full-year guidance. The company saw a 27% increase in gross profit, with the Cash App side growing by 38%. CEO Jack Dorsey explained that AI tools have made engineers 2.5 times more productive while reducing errors by over 70%. Customer-facing AI products like Moneybot and Managerbot are also driving high engagement, with users five times more likely to return after following AI suggestions. Although these AI tools are not yet priced into the business, they are expected to improve customer retention and future profits.

Amazon Cloud and Chip Business Drive Stock Rally

Amazon shares climbed to record highs after the company reported accelerating growth in its cloud computing and custom chip businesses. Amazon Web Services revenue grew 28%, marking the fastest pace in 15 quarters, while the cloud unit contributed nearly 60% of the company's operating income. The company's custom silicon operation, including Trainium and Graviton chips, crossed a $20 billion annualized revenue run rate and secured over $225 billion in commitments. CEO Andy Jassy noted that if the chip business were standalone, it would rank among the top three data center chip operations globally.

Apple Mac Sales Rise as Companies Buy Laptops for AI

Apple is seeing surprising demand for its Mac laptops as companies purchase them specifically for artificial intelligence development work. While iPhone revenue remains the largest part of the business, Mac sales grew 6% year over year to become the second-largest contributor to Apple's total revenue. CEO Tim Cook stated that Apple silicon offers the best platform for running advanced AI models locally on devices. This shift suggests Apple may benefit from the AI boom by selling more hardware to enterprises rather than just developing new AI software.

Tencent and Alibaba Growth Slows Due to High AI Spending

Tencent and Alibaba are expected to see slower earnings growth as they double their investments in artificial intelligence. Analysts predict Tencent's full-year earnings growth will drop to the low-teen percentage range due to these rising costs. Both companies face pressure from intense competition in China's AI sector, which is making it harder to turn AI investments into immediate profits. While cloud computing demand is rising, fierce competition limits the ability of these firms to increase cloud earnings significantly in 2026.

Adani Energy Stocks Gain as Group Builds AI Data Centers

Adani Group's energy stocks are rising as the company pushes to build green-powered data centers for artificial intelligence. The conglomerate plans to invest $100 billion by 2035 to develop infrastructure that supports AI while using renewable energy. This strategy is turning Adani's energy units into a key proxy for the AI trade within India. The move highlights the growing link between clean energy projects and the massive demand for computing power required by AI systems.

Tech Company Cuts 401k Matches to Fund AI Projects

TTEC, a global tech consultant, has paused its 401(k) matching contributions for U.S. employees to free up funds for artificial intelligence investments. The company suspended the discretionary match effective in the second quarter of 2026, affecting its 16,000 U.S. workers. Management stated that the decision was difficult but necessary to support business performance and future growth. This move follows similar cuts by other major corporations like Zoom and Deloitte, which are also reducing benefits to manage costs.

Mass Layoffs Hit Tech Sector as AI Adoption Accelerates

Several major technology companies announced large-scale layoffs this week as they integrate artificial intelligence into their operations. Cloudflare plans to cut about 20% of its workforce, citing a 600% increase in internal AI usage over the past three months. These moves follow similar announcements by Coinbase and others, suggesting that AI is driving significant changes in how companies manage their staff. The trend highlights the ongoing debate about whether AI will replace jobs or simply change the nature of work.

AI Spending Boom Shows No Signs of Slowing Down

Investment in artificial intelligence infrastructure continues to surge with no indication that the spending bubble is bursting. A boom in data center construction is being fueled by low financing costs and high demand for AI capabilities. Economists note that the conditions supporting this growth remain strong, with capital investment cycles still in a boom phase. The only potential threat to this momentum is not yet apparent, suggesting the AI marathon is far from over.

Investors Use AI to Analyze Jazz Music for Trading

A startup called Lodebar is using artificial intelligence to convert market data into jazz music to find trading opportunities. The company hires musicians to play solos over generated tracks, then uses machine learning to analyze the music for investment signals. This unique approach allows investors to process vast amounts of information quickly, similar to how human traders might intuitively spot patterns. Other firms are also using AI to analyze satellite images and earnings calls to gain an edge in the stock market.

Blackstone President Says AI Is Key to Future Strategy

Blackstone President Jon Gray explained that artificial intelligence is now a central theme in the firm's investment strategy. Speaking at the Milken Institute Global Conference, Gray discussed how Blackstone is integrating AI across its various business units. The firm has also formed a new enterprise services company with Anthropic to help businesses connect AI models to real-world applications. This partnership aims to bridge the gap between powerful AI technology and practical business use cases.

Chinese AI Startup Moonshot Raises $2 Billion

Chinese AI vendor Moonshot raised about $2 billion in funding, valuing the company at $20 billion. The investment was led by Dragonball, the investment arm of tech giant Meituan, with participation from other major Chinese firms. Moonshot is known for its Kimi generative AI model, which has seen a surge in subscriptions and API usage. This funding makes Moonshot the most heavily financed AI startup in China, though rival DeepSeek is also seeking massive investment.

AMD Revenue Jumps 38% as Data Center Demand Surges

AMD reported a nearly 38% increase in first-quarter revenue driven by strong demand for data center chips. The company's stock has rallied, though analysts have given it a 'Hold' rating due to its high valuation. Seeking Alpha identified two other undervalued AI chip stocks that offer similar growth potential at better prices. The surge in revenue highlights the continued expansion of the artificial intelligence hardware market.

Sources

• Block Earnings Show How the Company Is Leaning Into AI As a Catalyst for Its Business
• Amazon's Quiet AI Moat Keeps Expanding. Here's Why Investors Should Be Paying Attention to the Stock.
• Could Apple Be the Biggest Pick-and-Shovel AI Stock?
• Tencent Earnings Growth Seen Slowing As AI Investments Double
• AI Trade Turns Adani’s Energy Stocks Into India Proxy Play
• Is Your Employer’s AI Budget Coming Out of Your 401(k)? It's Already Happening at a Major Tech Company
• AI is coming for your job after all. These new announcements prove it.
• The AI marathon’s biggest threat suggests the finish line is nowhere in sight
• Earnings calls, algorithms and ... jazz music? How investors are using AI to gain a trading edge
• Jon Gray on CNBC: Why AI Is Central to Blackstone's Strategy
• Beijing lab at $20B as AI investors look to China
• AMD Rallies On 38% Revenue Surge: 2 Top Undervalued AI Chip Stocks