Apple Q3 Results, Microsoft $78B Revenue, Nvidia Stake Sold

Tech giants are navigating the rapidly evolving AI landscape with varied strategies and results. Apple has reported strong summer quarter financial results, exceeding analyst expectations with $102.5 billion in revenue and $27.5 billion in earnings, despite a slight dip in iPhone sales and ongoing efforts to catch up in AI. CEO Tim Cook remains optimistic about continued iPhone 17 sales during the holiday season. Meanwhile, Microsoft is experiencing significant revenue growth, reaching $78 billion in its first fiscal quarter of 2026, largely propelled by its Azure cloud services and AI-powered Copilot tools. The company's strategic partnership with OpenAI, in which it holds a 27% stake, is a key driver of its AI infrastructure dominance. However, Microsoft faces challenges with user adoption of premium AI features, prompting a focus on promoting higher-value services and optimizing costs. Investor Stanley Druckenmiller has shifted his focus, selling stakes in Nvidia and Palantir due to valuation concerns and increasing his investment in Microsoft, citing its Azure platform and enterprise software as compelling AI growth drivers. Alphabet is also strengthening its market position through AI integration, with features like AI Overviews enhancing Google Search and driving growth in Google Cloud via AI-native architecture and custom TPUs. In contrast, Meta Platforms faces scrutiny, with Oppenheimer downgrading the stock due to concerns over aggressive and potentially uncertain AI spending, projecting higher expenditures for fiscal year 2026. Vertiv Holdings Co. is emerging as a significant player in the AI sector, with analysts increasing its price target following strong third-quarter results driven by demand for its data center infrastructure solutions. The broader trend of AI in finance is also growing, with AI models being tested for trading strategies, and a global intensification of focus on AI quantitative trading following specific geopolitical events. Atlassian anticipates strong second-quarter revenue, driven by businesses upgrading systems for AI adoption, with its AI products like Rovo Dev boosting demand for its enterprise software.

Key Takeaways

• Apple exceeded earnings expectations in its summer quarter, reporting $102.5 billion in revenue and $27.5 billion in earnings, despite challenges in the AI race and a slight iPhone sales slowdown.
• Microsoft reported $78 billion in revenue for its first fiscal quarter of 2026, driven by a 40% increase in Azure cloud services and demand for its AI-powered Copilot tools.
• Investor Stanley Druckenmiller has sold his stakes in Nvidia and Palantir, citing valuation concerns, and is now investing heavily in Microsoft for its AI growth potential.
• Alphabet's AI integration, including AI Overviews in Search and AI-native architecture in Google Cloud, is strengthening its market position.
• Oppenheimer downgraded Meta Platforms due to concerns over aggressive AI spending and uncertain revenue potential for its 'Superintelligence' initiatives.
• Vertiv Holdings Co. is seeing increased analyst confidence and price targets due to its position in providing critical data center infrastructure for AI computing.
• AI models, including GPT-5 and Gemini 2.5 Pro, are being tested for optimizing grid trading strategies on exchanges like OKX, with Claude showing promising results.
• Atlassian forecasts strong Q2 revenue, exceeding estimates, driven by businesses upgrading systems for AI adoption and demand for its AI products like Rovo Dev.
• Microsoft's AI growth is tempered by user adoption challenges for premium AI features, leading the company to focus on promoting higher-value services and cost optimization.
• The global focus on AI quantitative trading is intensifying, highlighted by experiments with AI models in financial market strategies.

Apple beats earnings despite iPhone sales dip and AI race

Apple announced strong financial results for its summer quarter, surpassing analyst expectations. This success came even as iPhone sales saw a slight slowdown and the company works to catch up in the artificial intelligence race. The iPhone 17 lineup, despite lacking advanced AI features found in rival devices, drove sales of $49 billion, a 6% increase year over year. Apple earned $27.5 billion, with revenue climbing 8% to $102.5 billion. CEO Tim Cook expressed optimism for continued iPhone 17 sales during the holiday season, projecting at least a 10% increase.

Apple exceeds earnings targets amid iPhone sales growth and AI focus

Apple reported strong financial results for its summer quarter, exceeding analyst predictions despite a global trade war and competition in artificial intelligence. The new iPhone 17 lineup, featuring a redesigned look, contributed to $49 billion in sales, a 6% increase from the previous year. While iPhone sales were slightly below analyst expectations, Apple's overall earnings reached $27.5 billion on revenue of $102.5 billion, an 8% increase. CEO Tim Cook anticipates strong holiday sales for the iPhone 17, projecting at least a 10% rise.

Apple surpasses earnings expectations despite iPhone sales and AI challenges

Apple announced financial results for its summer quarter that exceeded analyst projections. The company faced challenges from a global trade war and competition in the artificial intelligence sector. Strong demand for the new iPhone 17 lineup helped drive sales, contributing to Apple's overall performance. Despite some sales slowdowns, the company's financial results indicate resilience and optimism for future quarters.

Microsoft's AI investments drive strong revenue growth in cloud and Copilot

Microsoft reported a significant increase in revenue for its first quarter of fiscal year 2026, reaching $78 billion. This growth was fueled by a 40% increase in Azure cloud services and strong demand for its AI-powered Copilot tools. The company's strategic partnership with OpenAI, in which it holds a 27% stake, positions it as a major AI infrastructure provider. Despite a temporary cloud outage, Microsoft's financial performance exceeded expectations, with continued investment in AI infrastructure like GPUs and data centers.

Microsoft balances AI growth with cost management amid user adoption

Microsoft's AI services are seeing high demand, with its Azure cloud business growing 27% and Copilot adoption increasing. However, many users are not yet paying for premium AI features, creating a margin squeeze. To address this, Microsoft is focusing on promoting higher-value AI services and optimizing its infrastructure costs. Despite these challenges, the company reported strong overall financial results, exceeding analyst expectations, and remains optimistic about AI's long-term growth potential.

AI models tested in grid trading strategies on OKX exchange

An experiment involving six major AI models, including GPT-5, Claude Sonnet 4.5, and Gemini 2.5 Pro, tested their ability to optimize parameters for the OKX BTC contract grid strategy. The goal was to see if AI could enhance fixed trading strategies. Claude achieved the highest APY of 50.64% when combined with OKX's 'automatic earning' feature, excluding transaction fees. The experiment used a uniform capital of 100,000 USDT with 5x leverage and backtested trades from July 25 to October 25, 2025.

Alphabet's AI integration strengthens its market position

Alphabet's stock has rallied significantly due to strong execution in its Search business and effective AI integration. Features like AI Overviews enhance user experience by providing quick answers, strengthening Google's search moat against AI chatbot disruption. YouTube continues its dominance in video content, while Google Cloud shows strong growth driven by AI-native architecture and custom TPUs. Despite regulatory concerns, Alphabet's valuation appears attractive, and its AI strategy is reinforcing its competitive advantages.

Druckenmiller sells Nvidia and Palantir, invests in Microsoft for AI growth

Billionaire investor Stanley Druckenmiller has sold his stakes in Nvidia and Palantir, citing valuation concerns, and is now heavily investing in Microsoft. Druckenmiller previously recognized the growth potential of Nvidia and Palantir in the AI sector but found their stock prices too high relative to future opportunities. He sees Microsoft as a more compelling investment, particularly its Azure cloud platform, which experienced significant revenue growth driven by AI services. Microsoft's enterprise software business also provides a strong foundation for its AI investments.

Oppenheimer downgrades Meta due to AI spending uncertainty

Oppenheimer has downgraded Meta Platforms Inc. to 'Perform' from 'Outperform,' citing concerns over the company's aggressive investments in artificial intelligence. Analyst Jason Helfstein noted that Meta's significant spending on 'Superintelligence' mirrors past high-cost projects like the Metaverse, which had uncertain revenue potential. Meta's projected operating and capital expenditures for fiscal year 2026 are expected to be notably higher than anticipated. Despite strong third-quarter advertising revenue, Oppenheimer questions the rationale for a guided deceleration in the fourth quarter.

Vertiv's AI opportunity fuels analyst confidence and price target increase

Vertiv Holdings Co. is gaining attention as a key AI stock, with Evercore ISI raising its price target to $210. This follows Vertiv's strong third-quarter results, reporting $2.67 billion in revenue and $1.24 earnings per share, surpassing analyst estimates. The company's focus on critical data center infrastructure, including power and cooling solutions, positions it well to benefit from the growing demand for AI computing. Analysts are confident in Vertiv's potential to capture a significant share of the AI market through its innovative products and strategic partnerships.

AI trading focus grows as Trump pardons CZ

Following the news of Donald Trump pardoning CZ, the focus on AI quantitative trading has intensified globally. CenionAI is highlighted as a leader in this emerging field of smart finance. The development signals a growing trend towards using artificial intelligence in financial markets, particularly in trading strategies.

Atlassian forecasts strong Q2 revenue driven by AI adoption

Atlassian expects second-quarter revenue to exceed estimates, driven by businesses upgrading systems for AI adoption. The company anticipates revenue between $1.535 billion and $1.54 billion, surpassing the average analyst estimate of $1.51 billion. Atlassian's AI products, like the Rovo Dev coding agent, are boosting demand for its enterprise software. While first-quarter revenue was slightly below estimates, adjusted profit exceeded expectations. Atlassian's finance chief, Joe Binz, will retire in June 2026.

Sources

• Apple delivers strong quarter despite iPhone sales slowdown and ongoing artificial technology issues
• Apple delivers strong quarter despite iPhone sales slowdown and ongoing artificial technology issues
• Apple delivers strong quarter despite iPhone sales slowdown and ongoing artificial technology issues
• Microsoft’s AI Bet Keeps Paying Off Across Cloud, Copilot and Code
• How Microsoft Escaped the AI Margin Squeeze; An FDE Boom
• OKX & AiCoin Review｜Who Earns the Most in Grid Strategies? Unveiling 6 Major AI Trading "Personas"
• Alphabet: The AI Threat Was Overstated - The Moat Is Only Getting Stronger
• Billionaire Stanley Druckenmiller Sold 100% of Duquesne's Stakes in Nvidia and Palantir and Is Piling Into This Trillion-Dollar Artificial Intelligence (AI) Stock Instead
• Oppenheimer downgrades Meta on AI spending concerns By Investing.com
• Vertiv’s (VRT) AI Opportunity Is Growing Fast — Here’s Why Analysts Are Confident
• Trump Pardons CZ: AI Quantitative Trading Becomes the Global Focus—CenionAI Leads Smart Finance Era
• Atlassian forecasts second-quarter revenue above estimates on AI demand boost