Google doubles AI spending while Palantir reports revenue

Alphabet is making significant strides to become the leading AI company globally by 2027. Its Gemini AI is rapidly gaining market share from ChatGPT and is projected to surpass it this year. Alphabet also develops its own AI hardware, the Tensor Processing Unit (TPU), which competes with Nvidia's GPUs. Anthropic is notably expanding its use of these TPUs. With over $400 billion in revenue in 2025, Alphabet plans to double its AI spending to $175 billion-$185 billion in 2026, demonstrating a strong commitment to its AI goals.

Nvidia remains a crucial player in the AI hardware market with its GPUs, which are in high demand for AI tasks. However, Broadcom is emerging as a significant challenger, aiming for AI leadership in 2026 with its custom AI chips, ASICs. These specialized units are designed to outperform general-purpose GPUs for specific workloads at a lower cost. Broadcom is partnering with companies like Google, which utilizes Broadcom's ASICs in its TPUs.

In the software sector, Palantir Technologies recently reported strong fourth-quarter results, achieving $1.41 billion in revenue, a 70% increase, and a 43% profit margin from its data mining and AI software. Wedbush analyst Daniel Ives highlights Palantir and Snowflake as top AI stock picks, noting their strong positioning in the evolving AI landscape. Snowflake offers a cloud-based data warehousing platform essential for AI development and analysis.

Tesla is advancing its AI capabilities by establishing an AI training center in China, focusing on customizing AI and assisted driving technology for the local market. Meanwhile, Amazon's AI shopping assistant, Rufus, proved highly effective in 2025, generating an impressive $12 billion in additional sales. Over 300 million customers used Rufus, which offers features like price alerts and personalized deals, saving customers an average of 20% per purchase.

Alibaba Group Holding's cloud division saw a 34% revenue increase, driven by growing AI and enterprise demand, with the company investing further in its Qwen AI app. Elsewhere, Nebius Group N.V., an Amsterdam-based AI-native cloud platform provider, experienced a 16.6% stock jump ahead of its Q4 and full-year 2025 earnings report. Even Caterpillar's stock reached record highs, partly due to new AI-linked power projects and record annual sales.

For investors seeking guidance, Sterling Stock Picker utilizes AI to track market trends. Its North Star system provides clear recommendations on whether to buy, sell, hold, or avoid stocks, based on comprehensive financial and growth data. The platform also features Stock Rockets for identifying fast-growing companies and an AI financial coach.

Key Takeaways

  • Alphabet aims to be the leading AI company globally by 2027, with its Gemini AI projected to overtake ChatGPT this year.
  • Alphabet plans to double its AI capital expenditures to $175 billion-$185 billion in 2026 and produces its own TPUs, which Anthropic uses.
  • Nvidia remains a key player in AI GPUs, while Broadcom challenges with custom ASICs, partnering with Google for its TPUs.
  • Palantir Technologies reported strong Q4 results with $1.41 billion in revenue, up 70%, and a 43% profit margin from its AI software.
  • Wedbush analyst Daniel Ives recommends Palantir and Snowflake as top AI stock picks for their strong market positioning.
  • Tesla is establishing an AI training center in China to customize AI and assisted driving technology for the Chinese market.
  • Amazon's AI shopping assistant, Rufus, generated $12 billion in additional sales in 2025 and was used by over 300 million customers.
  • Alibaba's cloud division grew 34% due to increased AI and enterprise demand, with the company investing in its Qwen AI app.
  • Nebius Group N.V., an AI-native cloud platform provider, saw its stock rise 16.6% ahead of its Q4 and full-year 2025 earnings report.
  • Caterpillar's stock reached record levels, partly driven by new AI-linked power projects and record annual sales.

Alphabet Aims to Lead AI Market by 2027

Alphabet is making big moves to become the top AI company by 2027. Its Gemini AI is quickly gaining market share from ChatGPT and is expected to overtake it this year. Alphabet also has its own AI hardware, the TPU, which competes with Nvidia's GPUs, and Anthropic is even using 1 million of them. With over $400 billion in revenue in 2025 and plans to double its AI spending to $175 billion-$185 billion in 2026, Alphabet has the resources to dominate the AI industry.

Alphabet Targets AI Leadership by 2027

Alphabet is working to become the world's most valuable AI company by 2027. Its Gemini AI is rapidly taking market share from ChatGPT and is on track to surpass it this year. The company also developed its own AI hardware, the TPU, in partnership with Broadcom, offering an alternative to Nvidia's GPUs. Alphabet reported over $400 billion in revenue for 2025 and plans to double its capital expenditures to $175 billion-$185 billion in 2026 to boost its AI capabilities.

Alphabet Positions for AI Dominance by 2027

Alphabet aims to be the leading AI company globally by 2027. Its Gemini AI is rapidly growing its market share and is set to overtake ChatGPT this year. Alphabet also produces its own AI hardware, the TPU, which competes with Nvidia's GPUs, and Anthropic is expanding its use of these TPUs. With 2025 revenue exceeding $400 billion and plans to invest $175 billion-$185 billion in 2026, Alphabet has significant resources to achieve its AI goals.

Nebius Stock Jumps 16 Percent Ahead of Earnings Report

Nebius Group N.V. stock rose 16.6% on Friday, closing at $86.10, after a 10.3% drop the day before. The Amsterdam-based company, which offers an AI-native cloud platform, will release its fourth-quarter and full-year 2025 results on February 12. Investors are watching for details on GPU capacity and future cash needs. Upcoming US economic data, including the January Employment Situation on February 11 and the January Consumer Price Index on February 13, could also affect tech stocks like Nebius.

Tesla Stock Rises on China AI and US Solar Plans

Tesla stock increased 3.5% on Friday, closing at $411.11, as investors reacted to new company developments. Tesla is establishing an AI training center in China to customize AI and assisted driving technology for the Chinese market. The company is also hiring more staff to support Elon Musk's goal of deploying 100 gigawatts of US solar manufacturing by 2028. Next week's US inflation data, including the January Consumer Price Index on February 13, could influence high-growth tech stocks like Tesla.

Three AI Stocks to Consider for Investment Now

Investors looking for AI stocks can consider Palantir Technologies, Nvidia, and Alphabet. Palantir recently reported strong fourth-quarter results with $1.41 billion in revenue, up 70%, and a 43% profit margin from its data mining and AI software. Nvidia remains a key player with its GPUs, which are in high demand for AI tasks. Alphabet's Google Cloud division saw a 33% revenue increase to $15.15 billion in the third quarter, driven by AI, and it is also expanding its Tensor Processing Units.

Caterpillar Stock Reaches New Highs on AI Power and Sales

Caterpillar stock has reached record levels, boosting the Dow, thanks to record annual sales and new AI-linked power projects. The company's shares saw a 7.06% return in one day and a 102.32% total return over the past year. Despite its current price of $726.20, some analysts believe the stock is overvalued compared to a fair value of $338.56. Investors are now evaluating if the market has already priced in future growth from these AI power wins.

Sterling Stock Picker Uses AI to Guide Investors

Sterling Stock Picker is a platform that uses AI to help investors track stock market trends. Its North Star system provides clear guidance on whether to buy, sell, hold, or avoid a stock, based on financial, growth, earnings, and risk data. The platform also features Stock Rockets to highlight fast-growing companies and an AI financial coach to answer market questions. A lifetime subscription to Sterling Stock Picker is available for $55.19 until February 15.

Alibaba Cloud and AI Growth Boost Investment Story

Alibaba Group Holding reported a strong second quarter with overall revenue up 5% and its cloud division growing 34%, driven by increased AI and enterprise demand. The company is investing more in its Qwen AI app and its logistics arm, Cainiao, is partnering with Zelos Technology for L4 autonomous logistics. These developments show Alibaba is deeply integrating AI, cloud, and automation into its business. While the stock may be trading 38% above its fair value, its accelerated cloud growth and AI momentum are reshaping its investment appeal.

Broadcom Aims for AI Leadership with Custom Chips

Broadcom is poised to become a major AI market leader in 2026, challenging Nvidia. The company's custom AI chips, known as ASICs, are designed for specialized workloads and can outperform general-purpose units at a lower cost. Broadcom is partnering with companies like Google, which uses its Tensor Processing Units (TPUs) as an alternative to Nvidia's GPUs. Management expects revenue from its AI semiconductors to double year over year next quarter, indicating rapid growth for Broadcom.

Analyst Recommends Palantir and Snowflake AI Stocks

Wedbush analyst Daniel Ives has named Palantir and Snowflake as his top AI stock picks, despite a broader "software garage sale" in the market. Ives believes these companies are well-positioned to succeed in the AI revolution. Palantir is known for its data analytics and AI-powered software, which is crucial for government and commercial sectors. Snowflake offers a cloud-based data warehousing platform that helps organizations store and analyze large amounts of data for AI development.

Amazon AI Assistant Rufus Drives 12 Billion in Sales

Amazon's AI shopping assistant, Rufus, generated $12 billion in extra sales for the company in 2025. Over 300 million customers used Rufus throughout the year, which launched in beta in February 2024. Rufus helps customers find products, compare options, and make purchases using features like "Buy for Me," which allows it to buy items from other online stores. It also offers price alerts, saving customers an average of 20% per purchase, and provides personalized deals based on shopping habits.

Sources

NOTE:

This news brief was generated using AI technology (including, but not limited to, Google Gemini API, Llama, Grok, and Mistral) from aggregated news articles, with minimal to no human editing/review. It is provided for informational purposes only and may contain inaccuracies or biases. This is not financial, investment, or professional advice. If you have any questions or concerns, please verify all information with the linked original articles in the Sources section below.

Alphabet Nvidia Anthropic Broadcom Nebius Group Tesla Palantir Technologies Snowflake Amazon Alibaba Group Caterpillar Sterling Stock Picker Google Cloud Gemini AI ChatGPT TPU GPU AI-native cloud AI training Assisted driving Data mining AI software Qwen AI Autonomous logistics Custom AI chips ASICs AI shopping assistant Rufus AI Cloud computing Data analytics Data warehousing AI market AI leadership AI capabilities AI industry AI investment AI spending AI development AI power AI integration AI semiconductors Stock market Tech stocks High-growth stocks Revenue growth Market share Capital expenditures

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