amazon, microsoft and google Updates

The artificial intelligence sector continues to see significant investment and development, with major tech players like Amazon, Microsoft, Google, and Meta preparing to release their July-September earnings, amidst concerns about a potential AI bubble. OpenAI CEO Sam Altman and Amazon founder Jeff Bezos have both voiced warnings about market frenzy. Amazon is highlighted as a top long-term investment among the 'Magnificent Seven' stocks, leveraging AI across its e-commerce, advertising, and AWS divisions, with AWS revenue up 12% and total sales up 13% to $167 billion in Q2. Nvidia, a leader in AI hardware, has seen its stock price target raised to $320 by HSBC, anticipating continued growth driven by AI demand and new architectures. Meanwhile, AI startup Mercor has raised $350 million, reaching a $10 billion valuation, to expand its network of experts who train AI models. In contrast, BigBear.ai faces challenges with revenue declines and a lack of profitability, with investors awaiting its Q3 earnings report for signs of recovery, despite a significant year-to-date stock surge. Similarly, SuperX AI Technology's stock has surged, but it has yet to report any revenue. SAP is focusing on AI growth, though currency challenges have led to a lowered price target from Berenberg analysts. Sequoia Capital is actively investing in Israeli AI startups, launching a $200 million Seed fund and a $750 million Series A fund. The global AI boom is also contributing to market surges, such as the Nikkei 225 index surpassing 50,000.

Key Takeaways

• Amazon is identified as the top 'Magnificent Seven' stock for the next decade, with Q2 sales up 13% to $167 billion and AWS revenue up 12%.
• Nvidia's stock price target is raised to $320 by HSBC, driven by AI demand and its central role in the AI revolution.
• AI startup Mercor raises $350 million, achieving a $10 billion valuation, to expand its AI model training network.
• BigBear.ai's Q2 revenue dropped 18% to $32.5 million, and it is not yet profitable, with investors awaiting Q3 earnings.
• SuperX AI Technology's stock has surged over 1,000% in a year but has not reported any revenue.
• Major tech companies including Microsoft, Alphabet, Amazon, and Meta are set to release Q3 earnings, with concerns about an AI bubble.
• OpenAI CEO Sam Altman and Amazon founder Jeff Bezos have warned about potential AI market bubbles.
• SAP is focusing on AI growth, but currency headwinds have impacted its outlook.
• Sequoia Capital launches a $200 million Seed fund and a $750 million Series A fund for Israeli AI startups.
• The Nikkei 225 index surpassed 50,000, partly driven by the global AI boom and expectations for new economic policies.

BigBear.ai stock: Should you buy before Nov. 10 earnings?

BigBear.ai is set to release its third-quarter financial results on November 10. In the second quarter, the company's revenue dropped 18% year over year to $32.5 million, partly due to government spending cuts. BigBear.ai is currently not profitable. Investors are advised to wait for the Q3 report to see if revenue recovers before considering buying the stock.

BigBear.ai stock: Should you buy before Nov. 10 earnings?

BigBear.ai is scheduled to report its third-quarter financial results on November 10. The company experienced an 18% decrease in revenue year over year, reaching $32.5 million in the second quarter, influenced by reduced government spending. BigBear.ai has not yet achieved profitability. It is recommended to review the upcoming Q3 earnings report for signs of revenue improvement before making any investment decisions.

BigBear.ai stock: Should you buy before Nov. 10 earnings?

BigBear.ai's stock has surged over 300% this year, despite a 14% revenue decrease to $29.4 million in Q2 2023 compared to the previous year. The company, which is not profitable, relies heavily on defense and intelligence sectors. Analysts are divided on its prospects, with some citing its strong backlog and AI technology, while others are cautious about revenue growth and profitability. Investors should watch the Q3 earnings report on November 14 for signs of revenue recovery.

Amazon is the top Magnificent Seven stock for the next decade

While Nvidia has led the Magnificent Seven stocks due to the AI boom, Amazon is positioned to be the best long-term investment over the next 10 years. Amazon uses AI extensively in its e-commerce operations, digital advertising, and Amazon Web Services (AWS). The company's second-quarter sales grew 13% to $167 billion, with AWS seeing a 12% increase in revenue. CEO Andy Jassy highlighted over 1,000 generative AI services in development. Amazon's stock is trading at a reasonable valuation compared to its historical average and the S&P 500.

Amazon is the top Magnificent Seven stock for the next decade

Amazon is identified as the top 'Magnificent Seven' stock for the next decade, surpassing Nvidia. The company leverages AI across its vast operations, including e-commerce, digital advertising, and Amazon Web Services (AWS). In the second quarter, Amazon's total sales increased by 13% to $167 billion, with AWS revenue growing by 12%. CEO Andy Jassy noted that over 1,000 generative AI services are in development. Despite its strong performance, Amazon's stock is considered attractively valued.

AI startup Mercor valued at $10B after raising $350M

Artificial intelligence hiring startup Mercor has raised $350 million in a Series C funding round, valuing the company at $10 billion. This marks a fivefold increase in valuation since its last funding round. The new capital will expand Mercor's talent network, improve its matching systems, and speed up delivery. The company now manages over 30,000 contractors who train AI models by sharing knowledge and context that code alone cannot capture.

Mercor raises $350M, valuation jumps to $10B

Mercor, which connects AI labs with experts to train AI models, is set to raise $350 million in a Series C funding round, reaching a $10 billion valuation. This represents a fivefold increase from its previous funding. The investment, reportedly led by SoftBank Vision Fund, will support Mercor's growth and platform development. The company addresses the need for specialized data in training complex AI models by using a network of domain experts.

SAP focuses on AI growth despite currency challenges

Berenberg analysts are optimistic about SAP's long-term growth potential driven by artificial intelligence, expecting significant returns around 2027. While SAP's third-quarter results were stable, Berenberg lowered its price target due to currency headwinds from a weaker US dollar. Demand for SAP's AI-powered software continues to rise, positioning the company well in the enterprise tech market. Investors are watching how AI adoption and currency fluctuations impact SAP's performance.

SuperX AI Technology stock surges 27% but lacks revenue

SuperX AI Technology (SUPX) has seen its stock price jump 27% in the past month and 1,188% over the last year. However, the company has not reported any revenue or net income in its recent filings, indicating it is not yet profitable. The current valuation is driven by speculation rather than financial performance. Investors should be aware of the high risks associated with this speculative investment, including execution risk and market volatility.

Big Tech earnings loom amid AI bubble concerns

As major tech companies like Microsoft, Alphabet, Amazon, and Meta prepare to report their July-September earnings, a key question is whether the artificial intelligence boom is creating a speculative bubble. These companies are expected to show strong revenue growth. However, leaders like OpenAI CEO Sam Altman and Amazon founder Jeff Bezos have recently warned about the potential for an AI-driven bubble due to the intense market frenzy.

Nvidia stock price target raised to $320 by HSBC

HSBC has upgraded Nvidia (NVDA) to a 'Buy' rating and set a new Street-high price target of $320, potentially valuing the company at $8 trillion. This optimism is based on growing AI demand, easing China trade tensions, and improved chip supply. Nvidia's GPUs and CUDA platform are central to the AI revolution, with its data center business reporting record revenue. Despite a high valuation, analysts see continued growth potential, especially with new architectures like Blackwell.

Mercor raises $350M, valuation jumps to $10B

Mercor, a company connecting AI labs with domain experts for training AI models, is reportedly raising $350 million in a Series C round at a $10 billion valuation, a fivefold increase. The funding, possibly led by SoftBank Vision Fund, will help Mercor expand its platform and operations. The company addresses the growing need for high-quality data to train complex AI models by utilizing a network of specialized experts.

Sequoia Capital launches $200M Seed fund for Israeli AI startups

Sequoia Capital partner Shaun Maguire believes Israel is well-positioned for the AI era and is directing a significant portion of the firm's new $200 million Seed fund to Israeli startups. Despite the ongoing war, Sequoia has accelerated its investments in Israel. The firm also launched a $750 million fund for Series A investments. Maguire highlighted past successes like Mellanox and Wiz, and sees potential for Tel Aviv to become a major global AI hub.

Nikkei 225 index surpasses 50,000 driven by AI and politics

The Nikkei 225 index closed above 50,000 for the first time on October 27, boosted by political changes and the global AI boom. Expectations for the new administration's economic policies and strong worldwide demand for AI technology are fueling investor confidence. The index has seen significant gains since the election of Sanae Takaichi as LDP president. The yen's depreciation against the dollar has also benefited Japanese exporters, contributing to the market's rise.

Sources

• Should You Buy BigBear.ai Stock Before Nov. 10?
• Should You Buy BigBear.ai Stock Before Nov. 10?
• Should You Buy BigBear.ai Stock Before Nov. 10?
• If I Could Buy Only 1 "Magnificent Seven" Stock Over the Next 10 Years, This Would Be It (Hint: Not Nvidia)
• If I Could Buy Only 1 "Magnificent Seven" Stock Over the Next 10 Years, This Would Be It (Hint: Not Nvidia)
• AI startup Mercor now valued at $10 billion with new $350 million funding round
• Mercor quintuples valuation to $10B with $350M Series C
• SAP Leans Into AI Growth But Faces Currency Pressure
• SuperX AI Technology (SUPX): Examining Valuation After a 27% Monthly Share Price Surge
• Big Tech to report earnings under specter of AI bubble
• Nvidia Stock Just Got a New Street-High Price Target. Should You Buy NVDA Now?
• Mercor quintuples valuation to $10B with $350M Series C
• “Israel is Ideally positioned for AI”: Sequoia raises $200M Seed fund, Maguire pledge
• ‘Takaichi trade,’ AI boom propel Nikkei 225 index past 50,000 | The Asahi Shimbun Asia & Japan Watch