Apple's research and development spending has hit a record 10.3% of revenue in the March quarter, the highest level in at least 30 years. The company's R&D spending grew 34% year-over-year, nearly double its revenue growth of 17%. CEO Tim Cook acknowledged the company is investing heavily in R&D, with analysts pointing to competitive pressure from Google and other AI firms. The spending is focused on AI tools like Siri updates, Apple Intelligence features, and potential new devices such as smart glasses and AirPods with cameras. Gene Munster of Deepwater Asset Management said this shows Apple feels a sense of urgency around new AI products.
AMD shares reached a new record high as AI demand drove strong quarterly results. The company's data center revenue jumped 57% year-over-year to $5.8 billion, while total revenue rose 38% to $10.3 billion. CEO Lisa Su said data center is now the primary driver of revenue and earnings growth. Meta plans to deploy up to 6 GW of AMD Instinct GPUs, including a 1 GW cluster built on the upcoming MI450 platform. AMD is also working with Tata Consultancy Services on Helios AI infrastructure for enterprise and sovereign AI deployments. Analysts at Wedbush and Bank of America raised their price targets for AMD.
BlackRock CEO Larry Fink predicts that buying futures of compute could become a new asset class. Fink said the United States is short on power, compute, chips, and memory, creating conditions for a futures market. He argued that compute is becoming a strategic commodity similar to oil or electricity. The scarcity across all four areas creates intense demand, and buyers would pay a premium to lock in future access to computing power.
ServiceNow unveiled Action Fabric, a new layer that acts as a tollgate for AI agents accessing data in its apps. The company joins other firms like HubSpot and Workday in charging customers for AI agent access to data. ServiceNow has not disclosed the exact pricing model but it is expected to be based on the amount of data accessed.
Shopify reported Q1 CY2026 revenue up 34.3% year-over-year to $3.17 billion, beating Wall Street expectations. However, the company's profitability showed mixed results with gross margin declining to 43.1% from 43.5% in the same quarter last year. A government ethics group filed a Federal Election Commission complaint against two super PACs backed by AI investors, alleging they are improperly concealing payments for advertisements and messages to voters.
Key Takeaways
- Apple's R&D spending hit 10.3% of revenue in the March quarter, the highest in 30 years, with a 34% year-over-year increase.
- Apple's AI investments focus on Siri updates, Apple Intelligence features, and potential new devices like smart glasses and AirPods with cameras.
- AMD shares reached a record high as data center revenue jumped 57% year-over-year to $5.8 billion.
- Meta plans to deploy up to 6 GW of AMD Instinct GPUs, including a 1 GW cluster on the MI450 platform.
- BlackRock CEO Larry Fink predicts compute futures could become a new asset class due to shortages in power, compute, chips, and memory.
- ServiceNow introduced Action Fabric, a tollgate for AI agents accessing data, joining a trend of monetizing data access.
- Shopify's Q1 CY2026 revenue grew 34.3% to $3.17 billion, but gross margin declined to 43.1%.
- A government ethics group filed an FEC complaint against two AI investor-backed super PACs for allegedly hiding payments.
- Nvidia entered a multiyear partnership with Corning to expand domestic manufacturing of fiber and optical connectivity.
- Reports of a potential US-Iran deal to reopen the Strait of Hormuz boosted aerospace stocks like Boeing and Honeywell.
Apple boosts AI spending to record levels
Apple's research and development spending reached 10.3% of its revenue in the March quarter. This is the highest level in at least 30 years and shows the company is urgently investing in new AI products. The R&D spending increased 10% compared to the same period last year. Apple is focusing on areas like machine learning, natural language processing, and computer vision to develop AI-powered devices such as a potential AI iPhone.
Apple spends over 10% of sales on AI research for first time in 30 years
Apple's R&D spending crossed 10% of its sales for the first time in three decades, reaching 10.3% in the March quarter. The company's revenue rose 17% but R&D spending grew at nearly twice that rate, up 34%. CEO Tim Cook said the company is clearly investing more in R&D. Analysts say Apple is responding to competitive pressure from other AI firms and is closing the gap with Google and other tech giants. The spending is focused on AI tools like Siri updates, Apple Intelligence features, and new devices such as smart glasses and AirPods with cameras.
Apple R&D spending hits 10.3% of revenue as AI race intensifies
Apple's R&D spending reached 10.3% of revenue in the March quarter for the first time in at least 30 years. Gene Munster of Deepwater Asset Management said this shows Apple feels a sense of urgency around new AI products. CEO Tim Cook noted that R&D is accelerating much higher than the company's overall growth. Analysts at Bank of America expect R&D spending to stay above 10% in the June quarter. The increase is similar to the early 2000s when Apple raised R&D spending before launching the iPod.
AMD stock hits record high on strong AI demand
Advanced Micro Devices shares reached a new record high of $145.16 as AI demand drove strong quarterly results. The company's quarterly revenue rose 70% year-over-year, driven by demand for its graphics and computing chips. AMD's AI-focused products like Radeon graphics cards are in high demand from cloud computing and data center customers. Revenue from these products more than tripled in the past year. CEO Lisa Su said the company expects continued strong demand for AI-focused products in the coming months.
AMD shares nearly double in value as AI demand surges
Advanced Micro Devices shares rallied over 16% to a fresh record high above $430 after the chipmaker beat earnings estimates. AMD shares have nearly doubled in value since the start of the year. Other semiconductor stocks including Nvidia also gained, helping lift the S&P 500 and Nasdaq to new records. Analysts at Wedbush and Bank of America raised their price targets for AMD to $450 and $310 respectively. Seven of nine analysts tracked by Visible Alpha rate AMD as a buy.
Three stocks that could benefit from the next AI wave
After Nvidia and Broadcom led the initial AI stock surge, investors are looking for the next layer of AI winners. Skyworks Solutions makes radio frequency components needed for AI-capable devices and has a pending merger with Qorvo. Microchip Technology produces timing chips and embedded controllers essential for AI data center infrastructure. NXP Semiconductors supplies microcontrollers for vehicles and is building chips for driver assistance systems. These companies could benefit as AI investment broadens beyond the biggest names.
BlackRock CEO says buying compute futures could become new asset class
Larry Fink, CEO of BlackRock, the world's largest asset manager with over $11 trillion, predicts that buying futures of compute could become a new asset class. Fink said the United States is short on power, compute, chips, and memory, creating conditions for a futures market. He argued that compute is becoming a strategic commodity similar to oil or electricity. The scarcity across all four areas creates intense demand, and buyers would pay a premium to lock in future access to computing power.
AMD data center revenue jumps 57% on AI infrastructure demand
AMD reported strong first-quarter results with data center revenue up 57% year-over-year to $5.8 billion. Total revenue reached $10.3 billion, up 38% from a year earlier, while net income nearly doubled to $1.4 billion. CEO Lisa Su said data center is now the primary driver of revenue and earnings growth. Meta plans to deploy up to 6 GW of AMD Instinct GPUs, including a 1 GW cluster built on the upcoming MI450 platform. AMD is also working with Tata Consultancy Services on Helios AI infrastructure for enterprise and sovereign AI deployments.
Boeing and Honeywell rally on Iran deal hopes and AI boost
Stocks pushed higher as the S&P 500 and Nasdaq made new records, driven by AI data center enthusiasm and optimism about a potential US-Iran deal. Nvidia entered a multiyear partnership with Corning to expand domestic manufacturing of fiber and optical connectivity. Corning shares jumped more than 10% on the news. Reports that the US and Iran are nearing a deal to reopen the Strait of Hormuz sent oil prices lower and boosted aerospace stocks like Boeing and Honeywell. The reopening would ease jet fuel shortages and reduce concerns about airline flight cancellations.
FEC complaint says AI super PACs hiding payments
A government ethics group filed a Federal Election Commission complaint against two super PACs backed by AI investors. The complaint alleges the super PACs are improperly concealing which companies they are paying to create advertisements and send messages to voters. The group says the super PACs are violating federal law by failing to disclose these payments. The complaint, filed on May 6, 2026, seeks an investigation and calls for the super PACs to be held accountable.
ServiceNow creates new tollgate for AI agents accessing data
ServiceNow unveiled Action Fabric, a new layer that acts as a tollgate for AI agents accessing data in its apps. The company announced the move during its financial analyst day in Las Vegas. ServiceNow joins other firms like HubSpot and Workday in charging customers for AI agent access to data. The tollgate is part of a broader trend where software companies monetize data access as AI agents become more common. ServiceNow has not disclosed the exact pricing model but it is expected to be based on the amount of data accessed.
Shopify revenue grows 34% but profitability shows mixed results
Shopify reported Q1 CY2026 results with revenue up 34.3% year-over-year to $3.17 billion, beating Wall Street expectations. However, the company's profitability showed mixed results with gross margin declining to 43.1% from 43.5% in the same quarter last year. Operating income was $1.04 billion compared to $1.03 billion in Q1 CY2025. The company's AI adoption and mixed profitability are shaping its outlook for the future.
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Sources
- Apple’s R&D spending shows ‘a sense of urgency around new AI products’
- Apple (AAPL) Crosses 10% of Sales on AI R&D for the First Time in 30 years
- Apple's R&D investments top 10% of sales as AI race creates 'sense of urgency'
- AMD's stock soars to a fresh record as AI demand drives up sales
- AMD's Stock Soars to a Fresh Record as AI Demand Drives Up Sales
- The Next Leg Of The AI Trade Is On. Which Stocks To Pick?
- Buying Futures Of Compute Could Be A New Asset Class: BlackRock CEO Larry Fink
- AMD’s AI Infrastructure Push Drives 57% Data Center Growth
- Why Boeing and Honeywell are rallying — plus, the AI trade gets another boost
- AI Super PACs Are Improperly Hiding Payments, FEC Complaint Says
- ServiceNow Is Putting Up a New Tollgate for AI Agents
- SHOP Q1 Deep Dive: AI Adoption and Mixed Profitability Shape Shopify’s Outlook
- SPONSORED AI tools give answers — ALEX is here to personally coach leaders
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