apple launches google while nvidia expands its platform

Key Takeaways

• Apple reported record holiday quarter revenue of $143.76 billion, with iPhone sales reaching $85.27 billion, and is partnering with Google for Gemini AI integration.
• Rising memory costs due to AI demand pose a challenge to Apple's future profit margins, despite strong iPhone sales.
• Global AI infrastructure spending is projected to reach nearly $1.4 trillion in 2026, a 42% increase, though growth is expected to slow by 2027.
• TSMC, a key chip manufacturer for Nvidia and Intel, plans to raise advanced chip prices by 3% to 10% and anticipates $52-$56 billion in 2026 capital expenditures.
• Alphabet (Google) is a major beneficiary of AI spending, with its Tensor Processing Units (TPUs) securing a deal with Anthropic and potential talks with Meta Platforms.
• US software stocks, including SAP and ServiceNow, declined due to investor concerns about AI disrupting traditional software models.
• Meta Platforms' core advertising business shows strong growth (24% revenue, 41% operating margins) driven by AI, funding internal AI development.
• Tesla is advancing its AI-driven projects, testing Robotaxi services and planning mass manufacturing of its Optimus humanoid robot this year, with a $2 billion investment in xAI.
• Mindflair plc's Sure Valley Ventures invested €1.6 million in Irish AI sales startup Overpath Limited to accelerate its platform development.
• Netflix is positioned as a strong future AI investment, despite an $82.7 billion pending acquisition of Warner Bros. Studios, HBO, and HBO Max.

Apple earnings focus on iPhone sales and AI

Apple will announce its fiscal first-quarter earnings on Thursday. Analysts expect strong iPhone sales, with revenue potentially reaching $78.2 billion, a 6.4% increase from last year. The company is predicted to post $2.67 per share on $138.4 billion in revenue. However, rising memory costs could impact Apple's future outlook. Investors will closely watch iPhone performance and any updates on Apple's AI strategy.

Apple faces AI questions and iPhone sales scrutiny

Apple will report its first-quarter earnings on Thursday, with Wall Street eager for updates on its AI plans. Investors worry Apple is behind in the AI race, despite its recent acquisition of Israeli AI audio startup Q.ai. iPhone sales remain crucial, and analysts will check holiday demand for the latest devices. UBS analysts warn that rising memory costs could affect Apple's profits in the June and September quarters. Morgan Stanley expects a short-term stock dip but remains positive on Apple's long-term potential.

Apple achieves record sales and revenue in holiday quarter

Apple announced record-breaking results for its holiday quarter, with revenue soaring 16% to $143.76 billion, surpassing analyst expectations. iPhone sales reached an all-time high of $85.27 billion due to strong demand. The company also reported earnings per share of $2.84, beating estimates. Apple saw significant growth in Greater China, with $25.5 billion in revenue. Investors are now looking for more details on Apple's AI strategy, especially its partnership with Google.

Rising memory costs threaten Apple's AI profits

Apple faces a challenge as rising memory costs could squeeze its profit margins, despite strong iPhone 17 sales. Analysts expect $138.48 billion in revenue and $2.67 earnings per share, but some warn these estimates do not account for higher memory prices. An AI component shortage is driving up these costs, affecting products like iPhones, Macs, and iPads. While Apple is pushing its AI strategy with Google Gemini and a Siri relaunch, experts question the financial sense of edge AI given these expenses. CEO Tim Cook will likely address these concerns and the company's AI plan during the upcoming earnings call.

Apple earnings reveal strong iPhone sales and AI plans

Apple will report its fiscal first-quarter results on Thursday, with analysts predicting strong holiday iPhone sales and $2.67 per share on $138.4 billion in revenue. While iPhone 17 demand is high, rising memory costs due to AI demand could impact future quarters. UBS and BofA Securities analysts have differing views on how much these costs will affect Apple. Investors are also keen to hear updates on Apple's AI strategy, especially after criticism for delaying the Siri chatbot. Apple recently announced a partnership with Google, where its next-generation AI models will use Google's Gemini technology.

TSMC and Alphabet to win big from AI spending

Global spending on AI infrastructure is expected to reach nearly $1.4 trillion in 2026, a 42% jump. Taiwan Semiconductor Manufacturing TSMC and Alphabet are predicted to be major beneficiaries. TSMC, a leading chip manufacturer for companies like Nvidia and Intel, plans to raise prices for its advanced chips by 3% to 10%. Alphabet is also set to profit from its Tensor Processing Units TPUs, with deals already in place with Anthropic and potential talks with Meta Platforms. Experts estimate that selling 500,000 TPUs could boost Alphabet's revenue by 11% and earnings per share by 3%.

TSMC and Alphabet poised for huge AI gains

AI infrastructure spending is projected to surge by 42% to almost $1.4 trillion in 2026. Taiwan Semiconductor Manufacturing TSMC and Alphabet are expected to be the top winners. TSMC, a key chip manufacturer for major tech companies, plans to increase prices for its advanced chips by 3% to 10% this year. Alphabet's Tensor Processing Units TPUs are also gaining traction, with a deal already made with Anthropic and potential talks with Meta Platforms. Analysts believe Alphabet could see significant revenue and earnings growth from supplying its AI chips.

Software stocks drop amid AI disruption worries

US software stocks fell on Thursday after SAP's weak cloud forecast and ServiceNow's post-earnings dip. Investors worry that fast-advancing AI technology, which can create code and apps cheaply, is challenging traditional software companies. Many software stocks have seen double-digit declines over the past year due to these fears. J.P.Morgan analysts noted a "malaise in software sentiment," suggesting the market fears AI could make traditional software obsolete. While software companies are acquiring AI startups, chip and memory firms are currently leading the AI race.

SAP and ServiceNow results trigger software stock decline

US software stocks experienced a decline on Thursday following SAP's cautious cloud outlook and a drop in ServiceNow shares. ServiceNow fell 9.6% even though it predicted higher annual subscription revenue than expected. This news also caused Salesforce shares to drop 5.6%, and Adobe and Datadog each fell 3.1%. These movements reinforced investor worries about increasing competition from artificial intelligence companies.

Mindflair invests in AI sales startup Overpath

Mindflair plc announced that its Sure Valley Ventures fund invested in Overpath Limited, an Irish AI sales execution startup. Overpath secured €1.6 million in pre-seed funding, led by Sure Valley Ventures. The startup plans to use this money to speed up the development of its AI-powered platform. This platform helps businesses manage sales deals more effectively and boost their sales performance. Mindflair plc focuses its investments on next-generation AI and deep tech companies.

Meta's strong ad business proves AI success

Meta Platforms Inc. demonstrated strong performance, with its core advertising business achieving 24% revenue growth and 41% operating margins. Artificial intelligence is already boosting Meta's ad pricing, user engagement, and employee productivity, improving efficiency without needing new revenue streams. The company generates significant cash, allowing it to fund AI development internally and buy back shares. This approach helps Meta avoid the debt and stock dilution risks seen with other AI investments. With growing profits and unpriced AI potential, Meta's stock appears undervalued.

AI spending growth in tech stocks may slow

Analysts are warning that the rapid growth in AI capital expenditure, which has boosted tech stocks, is expected to slow down this year or next. Goldman Sachs predicts AI spending will reach $539 billion, a 36% increase from 2025, but the growth rate will drop to 17% by 2027. Companies like Meta, Microsoft, and Tesla have been investing heavily in AI. Tesla plans to double its capital expenditure in 2026, shifting focus to AI and robots, including a $2 billion investment in xAI. However, experts suggest that the current high spending and market values may not always lead to sufficient long-term profits for all market leaders.

Netflix poised for growth with AI and Warner Bros deal

Netflix stock is currently dipping due to an expensive pending acquisition, but it is seen as a strong AI investment for the future. The company plans to acquire Warner Bros. Studios, HBO, and HBO Max from Warner Bros. Discovery for $82.7 billion. This deal, if approved, would add up to $59 billion in debt but would also give Netflix a huge amount of content and expand its global subscriber base of 325 million. Experts believe that after paying down the debt, Netflix could become a massive, AI-powered media giant with endless growth opportunities.

Tesla shows AI progress with Robotaxi and Optimus

Tesla's recent earnings report highlighted significant progress in its AI-driven projects, Robotaxi and Optimus. The company is actively testing its Robotaxi service in Austin, Texas, and the Bay Area, with plans to expand to seven more US cities by mid-2026. Tesla is also surprisingly moving forward with mass manufacturing its Optimus humanoid robot this year, retooling factories previously used for Model S and X vehicles. Morningstar raised its fair value estimate for Tesla to $400, citing the increased value of Robotaxi, autonomous driving software, and the humanoid robot business. These advancements show Tesla's real-world AI growth, though the stock may remain volatile.

TSMC faces risks as AI boom may slow

Taiwan Semiconductor Manufacturing Company TSMC, the world's largest contract chip maker, reported strong results for late 2025 and early 2026, showing its lead in AI chip production. However, some analysts believe the stock is fully valued and faces risks as the AI boom might slow down. TSMC plans to spend $52 billion to $56 billion in 2026 on capital expenditures, which could hurt profits if demand drops. The company's focus on AI platforms means any slowdown in AI infrastructure spending could reduce its pricing power and profit margins. An intrinsic value model suggests TSMC's fair value is $215.66 per share, much lower than its current trading price.

Sources

• Apple’s iPhone Sales and AI Will Take Center Stage for Earnings
• Apple earnings updates: Wall Street wants AI updates, iPhone sales in focus
• Apple posts record quarterly revenue and iPhone sales
• Apple Faces Margin Squeeze as Memory Costs Threaten AI Ambitions
• Apple Earnings: iPhone Sales, AI, Memory Costs; EPS Forecast; CEO Tim Cook to Speak; What Else to Watch
• Prediction: These 2 AI Stocks Will Be the Biggest Winners From $1.4 Trillion Infrastructure Spending
• Prediction: These 2 AI Stocks Will Be the Biggest Winners From $1.4 Trillion Infrastructure Spending
• US software stocks slide after SAP, ServiceNow results fuel AI disruption fears
• US software stocks slide after SAP, ServiceNow results fuel AI disruption fears
• Mindflair Backs AI Sales Execution Start-Up Overpath via SVV Fund
• Meta Just Proved The AI Bulls Right
• The $600 billion wave of AI 'capex' growth boosting tech stocks is set to slow down this year or next, analysts warn
• This AI Stock Is Primed for a Monster Run in 2026
• Tesla Earnings: Progress on Robotaxi and Optimus Shows Real World AI Growth
• Taiwan Semiconductor: The AI Boom Is Coming To An End