The AI sector continues to see significant activity, with major players like Alphabet and Nvidia showcasing distinct strengths. Alphabet, parent company of Google, demonstrates a strong AI presence through Google Cloud, which saw revenue surge 48% to $17.7 billion. Its substantial $240 billion cloud backlog provides predictable income, and its diverse business model, including Search and YouTube, offers stability. Nvidia, on the other hand, maintains its leadership in AI hardware, with its data center revenue growing 75% year over year. While Nvidia's hardware business is cyclical and trades at a higher valuation, it actively makes strategic investments in AI startups to foster ecosystem growth.
Salesforce also reported robust Q4'26 results, achieving 12% revenue growth and making significant strides in agentic AI. The company generated $5.3 billion in free cash flow and announced a substantial $50 billion stock buyback. Despite market concerns about AI disruption, Salesforce stock trades at a forward P/E of 13.0X, which is approximately 40% below its five-year average, suggesting it may be undervalued given its sustained business momentum and positive FY 2027 outlook of 10-11% revenue growth.
AI funding trends reveal interesting dynamics, particularly for female founders. Venture capital flowing to female founders reached a record $73.6 billion in 2025, heavily influenced by AI investments. Two-thirds of these funds went to AI startups, with Anthropic and Scale AI alone receiving over $30 billion, accounting for more than 40% of all AI funding in this category. Separately, global investment in InsurTech firms exceeded $1 billion in February, largely driven by interest in AI platforms, including a $703 million debt issuance by Howden Group.
Other notable developments include Palladyne AI Corp.'s Q4 sales exceeding expectations at $1.66 million, an increase of 118% year over year, alongside a maintained 2026 revenue forecast of $7 million to $8 million and a nearly $18 million backlog. AI chipmaker Cerebras is preparing for a potential IPO to raise about $2 billion, aiming for a listing as soon as April after a recent valuation of $23 billion. Meanwhile, U.S. companies announced 84,670 layoffs in February, the lowest number since December 2022, challenging the narrative that AI will cause widespread job losses.
Key Takeaways
- Alphabet's Google Cloud revenue surged 48% to $17.7 billion, backed by a $240 billion backlog, positioning it as a stable long-term AI investment.
- Nvidia's data center revenue grew 75% year over year, solidifying its leadership in AI hardware, and the company is making strategic investments in AI startups.
- Salesforce achieved 12% revenue growth in Q4'26, generated $5.3 billion in free cash flow, and announced a $50 billion stock buyback.
- Salesforce stock trades at a forward P/E of 13.0X, about 40% below its five-year average, indicating potential undervaluation despite strong performance.
- Venture capital for female founders reached a record $73.6 billion in 2025, with two-thirds of these funds directed towards AI startups.
- Anthropic and Scale AI collectively received over $30 billion, representing more than 40% of all AI funding to female-founded companies.
- Global InsurTech funding surpassed $1 billion in February, primarily driven by AI platforms, including a $703 million debt issuance by Howden Group.
- Palladyne AI reported Q4 sales of $1.66 million, up 118% year over year, and maintains a 2026 revenue forecast of $7-8 million with an $18 million backlog.
- AI chipmaker Cerebras is preparing for an IPO to raise approximately $2 billion, with plans for a listing as early as April, following a $23 billion valuation.
- U.S. companies announced 84,670 layoffs in February, the lowest since December 2022, which challenges fears of widespread job losses due to AI.
Alphabet vs Nvidia Which AI Stock Wins Long Term
Investors are looking at Alphabet and Nvidia as top AI stocks, but they offer different benefits. Nvidia leads in AI hardware like GPUs, driving huge revenue growth. However, it faces competition and industry cycles. Alphabet, parent of Google, has a strong AI presence through Google Cloud and various AI-powered services. Its large cloud backlog provides predictable revenue, and its diverse business model offers stability. The choice depends on investor risk tolerance, with Nvidia offering high growth potential and Alphabet providing more predictability.
Alphabet vs Nvidia Which AI Stock Wins Long Term
Alphabet and Nvidia are key players in the AI revolution, but Alphabet may offer a better long-term investment. Alphabet's Google Cloud revenue surged 48% to $17.7 billion, with a backlog of $240 billion, providing predictable income. Its diverse business, including Search and YouTube, offers stability. Nvidia's data center revenue grew 75% year over year, but its hardware business is cyclical. Nvidia trades at a higher valuation than Alphabet. Alphabet's combination of cloud growth, consumer ecosystem, and valuation makes it a potentially stronger buy.
Alphabet vs Nvidia Which AI Stock Wins Long Term
Alphabet and Nvidia are key players in the AI revolution, but Alphabet may offer a better long-term investment. Alphabet's Google Cloud revenue surged 48% to $17.7 billion, with a backlog of $240 billion, providing predictable income. Its diverse business, including Search and YouTube, offers stability. Nvidia's data center revenue grew 75% year over year, but its hardware business is cyclical. Nvidia trades at a higher valuation than Alphabet. Alphabet's combination of cloud growth, consumer ecosystem, and valuation makes it a potentially stronger buy.
Palladyne AI Stock Drops After Thursday Surge
Palladyne AI Corp. stock fell in premarket trading Friday after a significant 34.05% jump on Thursday. The company reported a Q4 loss but exceeded sales expectations, reaching $1.66 million, up 118% year over year. Palladyne AI maintained its 2026 revenue forecast of $7 million to $8 million and reported a backlog of nearly $18 million. Despite strong technical indicators, the stock is trading down 8.59% premarket. The technology sector is currently underperforming.
Palladyne AI Discusses 2026 Outlook and Acquisitions
Palladyne AI (NASDAQ:PDYN) management shared its 2026 revenue outlook and discussed an increased backlog early in 2026 during its fourth-quarter and year-end 2025 earnings call. The company also detailed how recent acquisitions are expected to change its operations and sales strategies. This call provided insights into Palladyne AI's future plans and financial projections.
Salesforce Stock Offers Value Despite AI Fears
Salesforce reported strong Q4'26 results, showing 12% revenue growth and significant progress in agentic AI. The company generated $5.3 billion in free cash flow and announced a $50 billion stock buyback. For FY 2027, Salesforce expects 10-11% revenue growth and up to 10% free cash flow growth. Despite fears about AI disruption, Salesforce stock trades at a forward P/E of 13.0X, about 40% below its five-year average. This suggests the stock is undervalued given its sustained business momentum.
AI Funding Skews Record Venture Dollars for Female Founders
Venture capital flowing to female founders reached a record $73.6 billion in 2025, but this surge was heavily influenced by AI investments. Two-thirds of these funds went to AI startups, with Anthropic and Scale AI alone receiving over $30 billion. These two companies accounted for more than 40% of all AI funding in this category. While this highlights women's involvement in leading AI companies, the overall deal count for female-founded companies decreased for the fourth consecutive year. All-female founding teams saw even steeper declines in both value and count.
February Layoffs Low Undercutting AI Job Loss Fears
U.S. companies announced 84,670 layoffs in February, the lowest number since December 2022. This figure represents a 13% decrease from January and a 9% decrease from February 2023. The data challenges the narrative that artificial intelligence will cause widespread job losses. Experts note that companies are taking a measured approach to integrating new technologies. This comes as the U.S. added 275,000 jobs in February, indicating continued labor market strength.
InsurTech Funding Surges Past $1 Billion Fueled by AI
Global investment in InsurTech firms exceeded $1 billion in February, largely driven by interest in artificial intelligence platforms. Howden Group's $703 million debt issuance significantly contributed to this total. Excluding Howden, venture-backed InsurTechs raised approximately $376 million across 11 deals. AI-powered companies dominated venture investments, with firms like mea, Indigo, and Harper securing substantial funding for their AI platforms. Operational infrastructure and backend platforms also saw significant investment, indicating a trend towards modernizing insurance processes.
Nvidia Makes Strategic Investments in AI Startups
Nvidia, a leader in AI hardware, is making strategic investments in AI startups, further solidifying its role in the AI revolution. These investments are designed to foster the growth of the AI ecosystem, from which Nvidia expects to benefit significantly. The company's CEO, Jensen Huang, is actively pursuing these opportunities. Nvidia's focus on innovation and strategic partnerships demonstrates its long-term vision and commitment to leading the AI era.
Jefferies Names Consumer Stocks Poised to Win with AI
Jefferies identifies consumer stocks set to benefit from the rise of agentic artificial intelligence. Companies adopting AI for personalization and product innovation are expected to outperform. Jefferies highlights Planet Fitness, Revolve Group, SharkNinja, YETI, and Signet Jewelers as key players. These firms are using AI for customer retention, product development, marketing, and operational efficiency. Early adopters of AI are predicted to gain a significant advantage as AI becomes central to online commerce.
AI Chipmaker Cerebras Plans IPO Return
AI chipmaker Cerebras is preparing for a potential return to the public market with an initial public offering (IPO) that could raise about $2 billion. The company has filed new paperwork and plans to meet with investors this month, aiming for a listing as soon as April. Cerebras, valued at $23 billion after a recent funding round, aims to challenge established players in the AI infrastructure market. This move comes as investor interest in AI technology continues to grow rapidly.
Datavault AI Stock Falls Amid Market Activity
Datavault AI (NASDAQ:DVLT) shares experienced a 6.1% decline during Friday's trading session, reaching $1.53. Trading volume was lower than the previous day. Recent analyst ratings include a downgrade from 'buy' to 'neutral' by Roth Capital with a $3.00 price target, and a 'buy' rating from HC Wainwright with a $6.00 price target. TheStreet downgraded the stock from 'c' to 'd'.
Sources
- Alphabet and Nvidia Just Might Be the Ultimate AI Stocks. But Which Will Be the Bigger Winner Over the Next 10 Years?
- Alphabet and Nvidia Just Might Be the Ultimate AI Stocks. But Which Will Be the Bigger Winner Over the Next 10 Years?
- Alphabet and Nvidia Just Might Be the Ultimate AI Stocks. But Which Will Be the Bigger Winner Over the Next 10 Years?
- What's Going On With Palladyne AI Stock Friday?
- Palladyne AI Q4 Earnings Call Highlights
- Salesforce: AI Disruption Fears Create Mispricing
- Venture dollars to female founders doubled to a record $73 billion last year—but Anthropic and Scale AI skewed the data
- February Layoff Numbers From Challenger Undercut AI Fears
- InsurTech funding tops $1bn in February as AI investment surges
- Nvidia Just Made Another Pair of Brilliant AI Bets
- The consumer stocks primed to be big winners from AI, according to Jefferies
- AI Chipmaker Cerebras Taps Morgan Stanley for IPO Return
- Datavault AI (NASDAQ:DVLT) Trading Down 6.1%
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