amazon, microsoft and google Updates

The artificial intelligence sector continues to drive significant market activity, with major tech players like Amazon, Microsoft, and Google heavily investing in AI infrastructure and services. Amazon's cloud division, AWS, experienced a 20% to 22% year-over-year revenue growth in the third quarter, signaling a strong comeback in the AI race and easing investor concerns about market share. CEO Andy Jassy highlighted the fastest growth pace for AWS since 2022, fueled by demand for AI and core infrastructure, with plans to double AWS power capacity by 2027. This surge in AI spending, particularly from hyperscalers like Amazon, directly benefits chip manufacturers like Nvidia, whose stock has risen in anticipation of substantial orders, including over 260,000 Nvidia Blackwell AI chips for South Korea. Beyond cloud giants, companies focused on AI hardware for data centers and edge computing are also seeing growth. GSI Technology, for instance, reported a 42% increase in sales for its fiscal second quarter of 2025, driven by its focus on energy-efficient AI chips for edge applications. However, the broader AI market faces some headwinds. Japanese chip equipment maker Tokyo Electron issued a cautious outlook, impacted by export controls to China and China's domestic chip production efforts, raising questions about the sustainability of the trillion-dollar AI market. In the realm of AI trading, a competition revealed that only DeepSeek and Qwen3 remain profitable amidst crypto market volatility, with other major AI models like Claude, Grok, Gemini, and GPT5 experiencing losses. Meanwhile, investment strategies are evolving to navigate the AI-driven market. Bank of America suggests gold and Chinese stocks as potential hedges against an AI market bubble, citing high valuations and the possibility of a downturn despite current 'risk-on' sentiment. OpenAI is also navigating complex financial deals, including those with Microsoft, Oracle, and Nvidia, to fund its extensive AI development, which requires massive computing power.

Key Takeaways

• Amazon Web Services (AWS) saw 20%-22% revenue growth in Q3, driven by AI and infrastructure demand, marking its fastest growth pace since 2022.
• Amazon plans to double its AWS power capacity by 2027 and is investing tens of billions in AI infrastructure, including over 260,000 Nvidia Blackwell AI chips for South Korea.
• Nvidia's stock has increased due to significant AI infrastructure investments from hyperscalers like Amazon.
• GSI Technology reported a 42% sales increase in its fiscal Q2 2025, driven by its focus on energy-efficient AI chips for edge computing.
• Tokyo Electron provided a cautious annual forecast, indicating that export controls and China's domestic chip focus are impacting the chip equipment market despite the AI spending boom.
• In an AI trading competition, only DeepSeek and Qwen3 remain profitable, while models like Claude, Grok, Gemini, and GPT5 are experiencing losses.
• Bank of America recommends gold and Chinese stocks as hedges against a potential AI market bubble.
• OpenAI is using complex financial deals with partners like Microsoft and Nvidia to fund its AI development, which requires substantial computing power.
• Companies like Amphenol, Vertiv, and Quanta Services are highlighted as key infrastructure providers for AI data centers.
• Amazon's retail revenue increased 11% and advertising sales jumped 24% in Q3, alongside its cloud growth.

Amazon stock jumps on strong AWS growth and AI optimism

Amazon's stock surged as its cloud computing unit, Amazon Web Services (AWS), showed strong growth. AWS revenue increased by 20% in the third quarter, signaling a potential comeback in the AI race against competitors like Microsoft Azure and Google Cloud. The company's retail and advertising businesses also performed well, with retail revenue up 11% and advertising sales jumping 24%. CEO Andy Jassy expressed confidence in AWS's future, especially with the growing demand for AI services and infrastructure. Amazon also plans increased capital spending for the upcoming year.

Amazon stock surges as AWS growth eases AI concerns

Amazon's stock saw a significant jump following strong third-quarter results from its cloud division, Amazon Web Services (AWS). AWS revenue grew by 20%, easing investor worries about losing market share to rivals like Microsoft Azure and Google Cloud. The company's strong cloud demand helps offset slower e-commerce growth. CEO Andy Jassy highlighted that AWS is experiencing revenue growth not seen since 2022, driven by AI and core infrastructure needs. Amazon also anticipates increased capital spending in the next year.

Amazon shares soar on AI boom and AWS growth

Amazon's stock price significantly increased due to strong performance in its Amazon Web Services (AWS) cloud unit, which grew 20% in the third quarter. While competitors Microsoft Azure and Google Cloud had higher percentage growth, AWS's large scale makes its increase impactful. Analysts view this as a positive turning point for Amazon, which had previously worried investors about market share. CEO Andy Jassy stated AWS is growing at its fastest pace since 2022, fueled by AI and infrastructure demand. The company's retail and advertising segments also showed robust growth.

Bank of America suggests gold and China stocks to hedge AI risks

Bank of America analyst Michael Hartnett suggests that gold and Chinese stocks are the best ways to protect investments if the current AI-driven market rally ends. While the market is currently in a 'risk-on' mode, with investors favoring stocks and crypto, Hartnett warns of a potential AI-fueled decline due to high valuations. He believes that anticipation of lower interest rates and participation from young investors are keeping the market elevated. Hartnett recommends gold and Chinese stocks as hedges against potential market booms or bubbles.

BofA names gold and China stocks as top AI bubble hedges

Bank of America analysts, led by Michael Hartnett, recommend gold and Chinese stocks as the best hedges against a potential AI market bubble. They believe that while AI stock leadership is strong currently, these assets offer protection against future downturns. The bank also noted potential inflation risks alongside expectations of upbeat economic growth and falling interest rates for the upcoming year. Chinese stocks have shown significant gains this year, making them an attractive option for investors.

3 stocks powering AI data centers: Amphenol, Vertiv, Quanta Services

As the AI boom accelerates, companies providing essential infrastructure for data centers are seeing significant growth. Amphenol supplies critical interconnects, Vertiv offers cooling and power solutions, and Quanta Services builds the power backbone. These companies are vital for handling the massive data and power demands of AI operations. With AI infrastructure spending projected to rise, these three stocks, Amphenol (APH), Vertiv (VRT), and Quanta Services (PWR), are highlighted as strong investment opportunities. Their contributions are essential for scaling AI operations globally.

Tokyo Electron cautious outlook tempers AI optimism

Japanese chip equipment maker Tokyo Electron has raised its annual forecast but by less than expected, signaling that export controls and China's focus on domestic chip production are impacting its outlook despite the AI spending boom. This cautious forecast from a key player in the chip industry raises concerns about the sustainability of the trillion-dollar AI market. Tokyo Electron, like its competitors, faces challenges with export restrictions on advanced chipmaking equipment to China and Beijing's push for locally made tools. These factors are affecting the company's stock performance.

GSI Technology revenue jumps on edge AI plans

Chipmaker GSI Technology reported a 42% increase in sales for its fiscal second quarter of 2025, driven by its focus on new AI hardware for edge computing. The company is investing in next-generation chips like Gemini-II and Plato, designed for energy-efficient AI applications. Research indicates that GSI's Gemini-I chip is more energy-efficient than Nvidia's A6000 GPU. With a recent $50 million offering, GSI has the funding to support its R&D efforts. The company expects strong revenue guidance for the next quarter, positioning itself to benefit from the growing demand for low-power AI hardware.

AI trading competition sees profits decline, only DeepSeek and Qwen3 remain profitable

The performance of AI models in a trading competition has significantly declined amid crypto market volatility. Currently, only DeepSeek and Qwen3 are showing profits, while other major AI models like Claude, Grok, Gemini, and GPT5 are experiencing floating losses. DeepSeek leads with a profit of 5,339.29 USDC, followed by Qwen3 with 2,378.47 USDC. The competition highlights the challenges AI faces in consistently profitable trading within fluctuating markets.

OpenAI uses complex deals to fund its AI growth

OpenAI is employing creative and sometimes circular financial strategies to fund its ambitious AI development, which requires massive computing power. CEO Sam Altman emphasizes that financial model innovation is as crucial as technological innovation. Deals with companies like Microsoft, Oracle, CoreWeave, SoftBank, and Nvidia involve billions flowing between them, often creating complex loops where OpenAI receives funds and then spends them with the same partners for computing services and data centers. While these arrangements fuel OpenAI's rise, they also raise concerns about potential financial bubbles in the speculative AI technology sector.

Amazon bets on AI agents as AWS sees 22% growth

Amazon is heavily investing in AI agents to enhance both its AWS cloud services and consumer operations, leading to a 22% year-over-year growth for AWS. CEO Andy Jassy highlighted that customers are choosing AWS for its functionality, security, and performance in running core and AI workloads. The company is making it easier for developers to create AI agents with tools like Strands and has doubled its AWS power capacity in three years, with plans to double it again by 2027. Amazon's e-commerce business also saw growth, with AI-powered shopping features increasing customer engagement and sales.

Amazon's AI spending wave boosts Nvidia stock

Nvidia's stock saw an increase following Amazon's announcement of significant AI infrastructure investments, expected to reach tens of billions of dollars. This spending includes a substantial allocation for AI hardware, which underpins the demand for Nvidia's chips. Amazon plans to deploy over 260,000 Nvidia Blackwell AI chips across various sectors in South Korea, including Samsung's new megafactory. Analysts believe this combination of hyperscaler purchasing and large government orders supports sustained demand for Nvidia's AI GPUs.

Sources

• Amazon shares soar as AI boom fuels stellar growth in AWS cloud unit
• Amazon Stock Surges as AWS Growth Rebound Eases AI Concerns - News and Statistics
• Amazon shares soar as AI boom fuels stellar growth in AWS cloud unit
• Bank of America says these are the best hedges against an AI meltdown
• Gold, China Stocks Best Hedge Against AI Bubble, Says BofA
• Unlock AI’s Hidden Gems: 3 Must-Buy Stocks Fueling the Data Center Surge
• Tokyo Electron Gives Cautious Outlook in Warning on AI Optimism
• GSI Technology’s Revenue Jumps As Edge AI Plans Take Shape
• The performance of models participating in the AI trading competition has collectively declined: currently, only DeepSeek and QWEN3 remain in a profitable state.
• How OpenAI Uses Complex and Circular Deals to Fuel Its Multibillion-Dollar Rise
• Jassy Bets Big on AI Agents as AWS Surges 22%
• NVDA: Nvidia Stock Rises as Amazon Unleashes Massive AI Spending Wave