Google expands Gemini alongside Anthropic's Claude

Key Takeaways

• Alphabet plans to invest approximately $185 billion in AI infrastructure next year after reporting strong Q4 and Q1 earnings.
• Alphabet's Google Cloud division grew 28% to $10.39 billion in Q1, with Gemini AI integrated across products.
• Nvidia invested over 85% of its $4.3 billion stock portfolio in CoreWeave, an AI cloud specialist, and made a fresh $2 billion investment.
• CoreWeave, an Nvidia partner, saw its revenue jump to $1.3 billion and is the first to offer Nvidia's Blackwell and Blackwell Ultra systems.
• The cooling industry is booming due to AI data center demand, with six major US hyperscalers expected to spend over $593 billion in 2026.
• Ciena's stock valuation is increasing, with expected revenue growth of 18.03%, driven by AI and hyperscale optical technology demand.
• Infineon Technologies is expanding AI-focused chip production after reporting strong Q1 earnings of $0.45 EPS and $4.05 billion revenue.
• A global tech stock selloff, partly influenced by a new legal AI tool from Anthropic's Claude, caused Bitcoin to drop below $71,000 and hedge funds to incur losses.
• Tenable reported strong Q4 2025 earnings, with revenue up 10.5% to $260.5 million, driven by demand for AI security solutions.
• The Invesco Nasdaq 100 ETF (QQQM) offers exposure to major AI players like Nvidia, Alphabet, Microsoft, and Amazon, with a 99% return over five years.

Alphabet boosts AI spending after strong earnings

Alphabet, Google's parent company, reported strong fourth-quarter earnings, with revenue reaching $114.1 billion. Its cloud division also grew significantly, bringing in $17.7 billion. Because of these good results and AI's potential, Alphabet plans to invest about $185 billion in AI infrastructure next year. This big investment shows the company's dedication to leading in AI and adding AI features to its products. Investors reacted positively, expecting Alphabet to gain market share in AI.

Alphabet earnings show AI market is changing not dying

Alphabet, Google's parent company, reported strong first-quarter earnings that beat expectations, causing its stock to rise. The company's revenue increased 15% to $80.5 billion, and earnings per share were $1.89. Alphabet also announced a $70 billion share buyback program. Google Cloud was a standout, growing 28% to $10.39 billion, which is key for AI development. CEO Sundar Pichai highlighted the integration of the Gemini AI model across products. The article suggests investors focus on AI infrastructure providers like Alphabet, AI integrators, and AI enablers, while also considering competition and a long-term view.

AI demand boosts Ciena's stock valuation

Ciena's stock valuation is changing due to growing demand for AI and hyperscale optical technology. Analysts now set Ciena's long-term fair value at about US$237.13 per share. They expect the company's revenue to grow around 18.03%. This positive outlook comes from strong investment in IT hardware, networking, and AI-related optical demand.

Nvidia invests heavily in AI cloud company CoreWeave

Nvidia, a leader in AI chips, has invested over 85% of its $4.3 billion stock portfolio in CoreWeave, an AI cloud specialist. Nvidia and CoreWeave work closely, with CoreWeave being the first to offer Nvidia's latest Blackwell and Blackwell Ultra systems. CoreWeave's revenue recently jumped to $1.3 billion. Nvidia also made a fresh $2 billion investment in CoreWeave to help build AI factories and agreed to buy any unsold CoreWeave capacity until April 2032. While CoreWeave shows strong growth, it faces competition from larger cloud providers and carries the risk of increasing debt as it expands.

AI data centers boost cooling industry growth

A boom in data centers, driven by increased AI use, is boosting the cooling industry. This growth helps make up for slower sales in residential air conditioning. Technology companies are investing heavily in AI, which increases demand for industrial cooling solutions. Six of the largest US hyperscalers are expected to spend over $593 billion in 2026, a 45% rise from 2025. Carrier predicts double-digit growth in its commercial HVAC business, and Johnson Controls notes customers are speeding up investments for AI-driven workloads.

Best AI index fund to buy now for under $500

Investing in AI is a smart move given the massive spending predicted, with Nvidia's CFO expecting $3 trillion to $4 trillion in AI infrastructure by 2030. The Invesco Nasdaq 100 ETF, ticker QQQM, offers a simple way to invest in top AI companies for under $500. This ETF tracks the 100 largest non-financial stocks on the Nasdaq and has returned 99% in the last five years. It includes major players like Nvidia, Alphabet, Microsoft, and Amazon, and has a low expense ratio of 0.15%.

Bitcoin drops below $71,000 as AI tech stocks fall

Bitcoin fell below $71,000 in Asian trading, dropping as much as 7.5% to around $70,700. This decline followed a global selloff in technology stocks, fueled by worries about peaking AI investment and slowing earnings. Asian tech shares, including South Korea's Kospi, saw sharp losses, mirroring a slide in the Nasdaq. Disappointing earnings from companies like Alphabet, Qualcomm, and Arm added to fears that AI investment might be slowing. Bitcoin is acting like a high-risk asset during this tech downturn, with other commodities like silver and gold also seeing steep drops.

Tenable beats Q4 earnings with strong AI security demand

Tenable, a cybersecurity company, reported strong fourth-quarter 2025 results, beating revenue expectations with sales up 10.5% to $260.5 million. The company's non-GAAP profit of $0.48 per share also exceeded estimates. Tenable expects next quarter's revenue to be around $258.5 million, above analyst predictions. This momentum comes from the growing demand for AI security and the company's strategy to combine security platforms. Tenable's focus on robust cybersecurity solutions for AI is clearly resonating in the market.

Infineon boosts AI chip production after strong earnings

Infineon Technologies reported strong first-quarter earnings, beating analyst expectations with an EPS of $0.45 and revenue of $4.05 billion. The company plans significant investments to expand its manufacturing capacity for AI-focused chips and semiconductors for electric vehicles. For the second quarter, Infineon expects revenue between $3.7 billion and $4.1 billion. Despite a recent 7-day stock decline, the company's 90-day performance shows investor confidence in its long-term strategy. Infineon aims to capitalize on growing demand in the AI and EV sectors.

Hedge funds lose money in AI tech selloff

Hedge funds experienced their worst day in nearly a year on Wednesday, according to Goldman Sachs. A tech-driven selloff, partly triggered by a new legal AI tool from Anthropic's Claude, caused significant losses. Hedge funds focused on tech, telecoms, and media companies dropped 2.78%. Other equity strategies also lost profits, with multi-strategy hedge funds seeing their stock portfolios fall 1.9%. These funds were caught in crowded trades and gave up profits trying to exit their positions. Despite the losses, multi-strategy funds remain up 3.9% for the year so far.

Sources

• Alphabet's Earnings Surprise Spurs AI Investment Hike
• Google Shows the AI Trade Isn’t Dying, Just Changing. How to Play It.
• How The Evolving AI Story Is Reframing Ciena's (CIEN) Valuation Narrative
• Nvidia Has More Than 85% of Its Portfolio Invested in 1 Artificial Intelligence (AI) Stock. Should You Follow Suit?
• Data Centers Power HVAC Growth as Residential Air Conditioning Sales Lag
• 1 No-Brainer Artificial Intelligence (AI) Index Fund to Buy Right Now for Less Than $500
• BTC price news: Bitcoin dumps below $71,000
• TENB Q4 Deep Dive: AI Security Demand, Platform Consolidation Drive Momentum
• Infineon Technologies (XTRA:IFX) Valuation After AI Capacity Expansion Plans And Recent Earnings Update
• HEDGE FLOW Hedge funds hit by AI sell-off, Goldman Sachs says