Google Cloud revenue grows 63% to $20.03 billion

The AI investment landscape is transforming, with various companies and technologies gaining attention. Investors are turning to lesser-known AI stocks like Caterpillar, Eaton, and Vertiv, which are generating record results and backlog growth. These companies provide infrastructure for the AI buildout and offer a more stable investment opportunity compared to popular AI chip names.

Some notable companies are making significant strides in AI. Lantronix, an embedded AI and Industrial IoT company, reported $30.18M in Q3 FY2026 revenue, up 5.9% year over year. Alphabet's Google Cloud revenue grew 63% to $20.03 billion, with a backlog of over $460 billion. Meta's daily active people across its Family of Apps are monetized by AI ranking and ad targeting.

The Defiance AI & Power Infrastructure ETF is gaining popularity, with over $665 million in assets under management. It allocates 80% of its portfolio to power grid equipment, engineering and construction services, and utilities stocks, addressing AI bottlenecks. The fund charges 0.69% per year and has gained nearly 46% year to date.

Meanwhile, UBS is bullish on China tech stocks due to the expanding AI ecosystem and easing US-China tensions. China's AI ecosystem is growing, creating investment opportunities for domestic companies. Baidu reported a 49% surge in revenue in its AI-focused business to 13.6 billion yuan ($2 billion).

The AI boom is driving a reshuffling in the global stock market, with Taiwan and South Korea surging past established Western markets. TSMC and Samsung Electronics are driving the rally, with AI and semiconductor exposure. However, the AI boom is also masking underlying cracks in the global economy, with developing nations facing financial stress, currency pressure, and exposure to global shocks.

In the AI tech space, Lambda has partnered with Hudson River Trading to power quantitative research and development. The TD Securities GenAI Adoption Survey shows that AI adoption is pervasive, with 92% of respondents using at least one of the top three vendors. Google is releasing smart glasses and adding AI-powered agents to its search engine, powered by its new Gemini model.

Lastly, Chinese AI labs are matching American frontier capability at a fraction of the cost, threatening OpenAI and Anthropic's IPOs. The cost gap is wide and getting wider, with enterprise AI budgets surging. Adoption is shifting, with Chinese models taking a growing share of enterprise AI traffic.

Key Takeaways

['Investors are turning to lesser-known AI stocks like Caterpillar, Eaton, and Vertiv, which are generating record results and backlog growth.', 'Lantronix reported $30.18M in Q3 FY2026 revenue, up 5.9% year over year.', "Alphabet's Google Cloud revenue grew 63% to $20.03 billion, with a backlog of over $460 billion.", "Meta's daily active people across its Family of Apps are monetized by AI ranking and ad targeting.", 'The Defiance AI & Power Infrastructure ETF has over $665 million in assets under management and has gained nearly 46% year to date.', 'UBS is bullish on China tech stocks due to the expanding AI ecosystem and easing US-China tensions.', 'The AI boom is driving a reshuffling in the global stock market, with Taiwan and South Korea surging past established Western markets.', 'Lambda has partnered with Hudson River Trading to power quantitative research and development.', '92% of respondents in the TD Securities GenAI Adoption Survey are using at least one of the top three AI vendors.', "Chinese AI labs are matching American frontier capability at a fraction of the cost, threatening OpenAI and Anthropic's IPOs."]

Under-the-Radar AI Stocks Surge

Investors are turning to lesser-known AI stocks like Caterpillar, Eaton, and Vertiv, which are generating record results and backlog growth. These companies are providing infrastructure for the AI buildout and are trading with minimal retail attention. They offer a more stable investment opportunity compared to popular AI chip names.

Billionaires Snap Up Unstoppable AI Stock Under $10

Lantronix, an embedded AI and Industrial IoT company, is gaining attention from billionaire investors. The company's Q3 FY2026 revenue was $30.18M, up 5.9% year over year, and its Embedded IoT Solutions segment grew 22%. Lantronix aims for double-digit revenue growth in FY2027, driven by demand for NDAA-compliant drones and defense systems.

Forget Palantir, Buy These AI Winners Instead

Alphabet and Meta are generating cash flows to fund AI infrastructure, unlike Palantir, which trades at a high price-to-earnings ratio of 191. Alphabet's Google Cloud revenue grew 63% to $20.03 billion, with a backlog of over $460 billion. Meta's daily active people across its Family of Apps are monetized by AI ranking and ad targeting.

AI Needs Power, This ETF Has the Right Stuff

The Defiance AI & Power Infrastructure ETF is gaining popularity, with over $665 million in assets under management. The ETF allocates 80% of its portfolio to power grid equipment, engineering and construction services, and utilities stocks, addressing AI bottlenecks. The fund charges 0.69% per year and has gained nearly 46% year to date.

AI Needs Power, This ETF Has the Right Stuff

The Defiance AI & Power Infrastructure ETF provides exposure to companies involved in AI and power infrastructure development. The fund has a 12-month return of 20.1% and $120 million in assets under management. It charges a 0.35% expense ratio and offers a 1.3% dividend yield.

UBS Bullish on China Tech Stocks

UBS is bullish on China tech stocks due to the expanding AI ecosystem and easing US-China tensions. China's AI ecosystem is growing, creating investment opportunities for domestic companies. Baidu reported a 49% surge in revenue in its AI-focused business to 13.6 billion yuan ($2 billion).

AI Boom Reshuffles Global Stock Market

The AI boom is driving a reshuffling in the global stock market, with Taiwan and South Korea surging past established Western markets. Taiwan's stock market has overtaken Canada to become the world's sixth-largest, while South Korea has leapfrogged the UK into eighth place. TSMC and Samsung Electronics are driving the rally, with AI and semiconductor exposure.

AI Boom Masks Global Economic Cracks

The AI boom is masking underlying cracks in the global economy, with developing nations facing financial stress, currency pressure, and exposure to global shocks. UNCTAD warns of a fragile and prolonged period of uncertainty, with geopolitical risks replacing trade wars as the biggest threat.

Lambda Partners with Hudson River Trading

Lambda has partnered with Hudson River Trading to power quantitative research and development. HRT will use Lambda's AI infrastructure to accelerate its research roadmap and expand its compute power. The partnership enables HRT to rapidly deliver capacity and ensure uptime for compute-intensive workloads.

GenAI Adoption Survey: Unlocking Autonomous AI

The TD Securities GenAI Adoption Survey shows that AI adoption is pervasive, with 92% of respondents using at least one of the top three vendors. More sophisticated semi-autonomous agent adoption is expected to increase by more than 2x in the next 12-18 months. Three-quarters of respondents cited a positive ROI on their AI investments.

Sotheby's CEO on AI Impact

Sotheby's CEO Charles Stewart discusses the impact of AI on the art market and the company's business. He believes that AI will 'meaningfully affect' Sotheby's business in some way.

Cheap AI Threatens OpenAI and Anthropic's IPOs

Chinese AI labs are matching American frontier capability at a fraction of the cost, threatening OpenAI and Anthropic's IPOs. The cost gap is wide and getting wider, with enterprise AI budgets surging. Adoption is shifting, with Chinese models taking a growing share of enterprise AI traffic.

Google to Release Smart Glasses and AI-Powered Search

Google is releasing smart glasses and adding AI-powered agents to its search engine, powered by its new Gemini model. The features will allow users to interact with the search engine in a more conversational way and will be available on both desktop and mobile devices.

AI Investment Surge Transforms Capital Markets

The AI investment surge is transforming global capital markets, significantly impacting investment strategies and funding allocations. AI-powered tools and platforms are becoming popular among investors and financial institutions, offering improved risk management, enhanced portfolio performance, and increased transparency.