AMD receives $6 million investment as Microsoft eyes cloud growth

Key Takeaways

• Cathie Wood's ARK Invest bought $14 million in AI chip stocks (Broadcom and AMD) on February 17, betting on AI infrastructure suppliers.
• Major cloud providers like Microsoft, Alphabet, and Amazon are projected to spend $650 billion on AI infrastructure by 2026.
• Amazon's AWS revenue increased 24% in Q4, while Alphabet's Google Cloud grew 48%, with Alphabet potentially offering higher growth due to its faster-growing cloud business.
• Stanley Druckenmiller sold his entire Meta Platforms stake and bought Amazon shares, favoring Amazon's AI-driven e-commerce and cloud strategies.
• Microsoft's stock valuation is now lower than Alphabet's, a shift attributed to slower Azure growth and broader software market conditions.
• Royal Caribbean uses AI to optimize operations, including predicting demand, reducing food waste by 50%, and automating 90% of its 15 million daily price points.
• Mizuho initiated "Buy" coverage on Tempus AI, an AI health tech firm, with a $100 price target, suggesting a 78% upside.
• DA Davidson recommends TSMC with a "Buy" rating and a $450 price target, citing its strong position in leading-edge AI chip manufacturing.
• Nebius Group, a neocloud infrastructure company, saw its Q4 2025 revenue jump nearly sixfold and plans significant data center expansion in 2026.
• Twilio's Voice AI solution experienced 60% year-over-year revenue growth in Q4 2025, driven by AI acceleration in cloud communications.

Cathie Wood Invests $14 Million in Top AI Chip Stocks

On February 17, Cathie Wood's ARK Invest bought $8 million of Broadcom and $6 million of Advanced Micro Devices (AMD) stock. This $14 million investment comes as confidence in AI stocks wavers, with some seeing a 6% drop from recent highs. Wood is betting that companies supplying AI infrastructure, like Broadcom for custom AI silicon and AMD for high-performance computing, are undervalued. Major cloud providers like Microsoft, Alphabet, and Amazon are expected to spend $650 billion on AI infrastructure in 2026. Wood also sold shares in Teradyne and Twist Bioscience, and trimmed positions in Airbnb and Pinterest.

Cathie Wood Buys $14 Million in AI Stocks Amid Market Volatility

Cathie Wood invested $14 million in Broadcom and Advanced Micro Devices (AMD) on February 17, during a period of uncertainty in AI stocks. These companies play key roles in AI infrastructure, with Broadcom providing custom AI silicon and AMD offering high-performance computing solutions. This move by ARK Invest comes as major tech companies plan significant investments in AI infrastructure. Wood also sold shares of Teradyne and Twist Bioscience, and reduced holdings in Airbnb and Pinterest.

Cathie Wood Doubles Down on AI Giants Broadcom and AMD

Cathie Wood's ARK Invest purchased $14 million worth of Broadcom and Advanced Micro Devices (AMD) stock on February 17. This investment occurred despite recent market volatility and questions about the sustainability of AI stock rallies. Both Broadcom and AMD are crucial players in the AI ecosystem, supplying essential chips and infrastructure. Wood's move signals her continued belief in the long-term growth potential of artificial intelligence, even as the market experiences short-term fluctuations.

Amazon vs. Alphabet: Which AI Stock Offers Better Growth?

Both Amazon and Alphabet are benefiting greatly from the AI boom, with their cloud businesses showing accelerated growth. Amazon's AWS saw a 24% revenue increase in Q4, while Google Cloud grew 48%. Amazon expects strong returns on its $200 billion capital expenditures in 2026. Alphabet's overall revenue grew 18% in Q4, driven largely by advertising, but its Google Cloud segment is growing faster than Amazon's. While both stocks have similar valuations, Alphabet might offer higher growth potential due to its faster-growing cloud business and focus on AI innovation.

Stanley Druckenmiller Sells Meta, Buys Amazon Amid AI Investment

Billionaire Stanley Druckenmiller sold his entire stake in Meta Platforms and bought shares in Amazon during the fourth quarter. Meta is heavily investing in AI, which is improving engagement and ad performance, though it slowed net income growth. Amazon is using AI to boost its e-commerce efficiency and drive revenue growth in its cloud computing business, AWS. Despite Meta's strong user base and AI investments, Druckenmiller's move suggests a preference for Amazon's AI-driven strategies in e-commerce and cloud services.

Wall Street Predicts Big Gains for 2 AI Stocks

Wall Street analysts are optimistic about two artificial intelligence (AI) stocks, forecasting potential gains of 37% and 108%. These companies are seen as strong investment opportunities due to their significant growth prospects in the expanding AI market. Analysts believe these stocks are currently undervalued and could significantly outperform the market. The projected returns highlight confidence in the companies' innovative AI technologies and market positions.

Royal Caribbean CEO Uses AI for Hamburgers and Competition

Royal Caribbean CEO Jason Liberty is using artificial intelligence to improve operations, from predicting hamburger demand to reducing food waste by 50%. The company also uses AI to manage 15 million daily price points, automating 90% of them to maximize revenue and personalize customer experiences. Liberty views competition not just from other cruise lines but from destinations like Orlando and Las Vegas, and even entertainment like Taylor Swift concerts. This tech-driven approach helps Royal Caribbean compete in the experience economy, appealing to millennials who prioritize vacations and unique experiences.

Microsoft Stock Trades Below Alphabet's for First Time in 10 Years

Microsoft's stock is now valued lower than Alphabet's, a rare occurrence not seen in a decade. This shift is happening as the 'Magnificent Seven' tech stocks undergo changes. Previously, Microsoft commanded a premium due to its cloud dominance, but slower growth in its Azure service and a broader software sell-off have allowed Alphabet to gain ground in terms of valuation.

Mizuho Sees Undervalued AI Health Tech Stock Poised for Gains

Mizuho has initiated coverage of Tempus AI, an AI-powered health technology firm, with a 'Buy' rating and a $100 price target, suggesting a 78% upside. Analyst Bradley Bowers highlighted Tempus's leading position in AI-enabled healthcare data services and precision oncology diagnostics. The firm believes Tempus's Genomics and Data businesses are undervalued despite strong growth potential. Catalysts include rising test prices, increasing volumes, and more reimbursement wins, positioning Tempus for significant gains.

Bill Ackman Urges Support for Tech Giants' AI Investments

Billionaire investor Bill Ackman is encouraging investors to support the massive AI investment plans of tech giants like Amazon, Meta, and Alphabet. He believes these significant investments in artificial intelligence will ultimately boost the valuations of these companies. Ackman, a relatively recent convert to this view, sees these AI initiatives as key drivers for future growth and market performance.

Two Top AI Stocks to Buy for February Gains

Investors can benefit from increased spending on AI hardware and software by considering Nebius Group and Twilio. Nebius Group, a neocloud infrastructure company, provides AI hardware and software solutions and saw its Q4 2025 revenue jump nearly sixfold. The company plans to significantly expand its data center capacity in 2026. Twilio, a cloud communications company, is experiencing accelerated growth due to AI, with its Voice AI solution showing 60% year-over-year revenue growth in Q4 2025 and an increasing customer base.

Amazon vs. Alphabet: Choosing the Best AI Investment

Both Amazon and Alphabet are major players in the AI revolution, with similar forward earnings valuations. Amazon's AWS cloud division is a significant AI infrastructure provider, while Alphabet's Google Brain and DeepMind are at the forefront of AI research. Alphabet may offer greater upside potential due to its stronger focus on AI as a core growth driver and its cutting-edge research, particularly in areas like natural language processing.

DA Davidson Recommends TSMC Stock Amid AI Demand Surge

DA Davidson has initiated coverage of Taiwan Semiconductor Manufacturing Company (TSMC) with a 'Buy' rating and a $450 price target, suggesting a potential 15% upside. The firm cited TSMC's strong competitive advantage in leading-edge chip manufacturing and its position to benefit from rising AI chip demand. DA Davidson highlighted TSMC's market leadership, advanced capabilities, and customer relationships as key growth drivers.

Sources

• Cathie Wood buys $14 million of megacap AI stocks
• Cathie Wood buys $14 million of megacap AI stocks
• Cathie Wood buys $14 million of megacap AI stocks
• Amazon vs. Alphabet: Which Is the Better AI Stock to Buy Now?
• Billionaire Stanley Druckenmiller Sells Meta Platforms Stock and Buys an AI Stock Up 210,000% Since Its IPO
• 2 AI Stocks to Buy Before They Soar 37% and 108%, According to Wall Street Analysts
• Royal Caribbean's CEO is using AI to predict how many hamburgers you'll eat—and to compete with Orlando, Vegas and Taylor Swift
• Microsoft’s stock is trading at a rare discount to Alphabet’s, as the ‘Magnificent Seven’ reshuffle intensifies
• This AI-powered health tech stock is undervalued and poised for big gains, says Mizuho
• Get behind tech giants’ investment plans, Ackman urges investors
• 2 Top Artificial Intelligence Stocks to Buy in February
• Amazon vs. Alphabet: Which Is the Better AI Stock to Buy Now?
• DA Davidson Assigns TSMC (TSM) a Buy Rating Amid AI Demand Growth