Google expands Gemini as NVIDIA invests $2 billion in Lumentum

Key Takeaways

Applied Materials earnings beat expectations due to AI demand

Applied Materials reported strong second quarter earnings that exceeded analyst estimates. The company expects its semiconductor equipment business to grow by more than 30% in 2026. This growth is driven by high demand for artificial intelligence computing and memory chips from customers like Samsung and Micron. The company has doubled its manufacturing capacity to meet this rising demand. Shares of the company rose after the positive results were announced.

Applied Materials raises revenue forecast thanks to AI boom

Applied Materials gave sales and profit forecasts that were much higher than what analysts expected. The company predicts revenue of about $8.95 billion for the third quarter, while analysts had guessed $8.15 billion. Earnings are expected to reach $3.36 per share, compared to a projection of $2.88. Soaring demand for AI computing and memory chips is fueling this growth. The company has already doubled its production capacity to handle the surge in orders.

Strong AI demand boosts Applied Materials sales outlook

Applied Materials provided sales and profit forecasts that far exceeded the estimates from financial analysts. The company's sales forecast for the current quarter was $6.4 billion, beating the average estimate of $5.8 billion. Profit forecasts also came in higher than expected at $1.45 per share. This growth is driven by rapid increases in demand for AI computing and memory chips. Investors are optimistic about the company's future prospects given its leading position in the semiconductor equipment market.

Investors buy more AI infrastructure stocks in first quarter

Institutional investors bought more stocks from companies involved in artificial intelligence during the first quarter of 2026. Nearly 6,000 hedge funds and pension funds filed reports showing they added positions in nine major AI infrastructure companies. More than 4,000 investors increased their holdings in this sector, while only a small percentage sold their shares. Investors also showed strong interest in data center companies and utility stocks. The semiconductor space saw significant buying activity even as share prices began to rise sharply.

Investors increase holdings in AI infrastructure companies

Major investors were eager to buy stocks in companies that depend on artificial intelligence during the first quarter of 2026. Over 4,000 institutional investors added to their holdings or started new positions in nine key AI infrastructure companies. Only 2.5% of these investors sold their positions in this sector. Investors also bought shares in data center companies and utilities, with almost no selling activity in utilities. These filings show that investors are focusing on emerging opportunities in the AI industry.

CLBT reports strong growth with new AI products

CLBT saw a 21% increase in annual recurring revenue during the first quarter of 2026. The company also reported a 29% rise in adjusted earnings before interest, taxes, depreciation, and amortization. This growth was driven by the launch of new artificial intelligence products and expanding demand in federal and European markets. The company received FedRAMP certification, which has increased optimism for its future performance. Guidance for the second quarter and the full year remains strong.

Alphabet sells record yen bonds to fund AI projects

Alphabet, the parent company of Google, sold $3.6 billion in yen bonds to fund its artificial intelligence infrastructure. This sale set a new record, surpassing the previous high of 430 billion yen set by Berkshire Hathaway in 2019. The bonds were priced at a yield of 0.65% and met strong demand from investors. The money raised will support Alphabet's AI research and development, including its DeepMind subsidiary. This move helps the company diversify its funding sources and reduce reliance on US dollar debt.

AI stocks drive Wall Street to record highs

Wall Street stocks rose on Thursday as investors continued to focus on artificial intelligence companies. The benchmark S&P 500 index crossed the 7,500 level for the first time. Investors were also watching ongoing diplomatic discussions between the United States and China. The technology-heavy Nasdaq Composite also performed well during this rally. AI stocks remain a key factor in the recent market advance.

Intuit stock rises ahead of earnings and AI updates

Intuit stock increased by 3.5% as traders prepared for the company's upcoming earnings report. Investors are also paying attention to recent product updates and artificial intelligence announcements. The company recently highlighted new features for its Enterprise Suite aimed at mid-market customers. Intuit also announced a partnership with Anthropic to create customizable AI agents on its platform. These developments have renewed investor interest in the company's AI roadmap.

Fanuc shares jump after Google partnership for physical AI

Shares of Fanuc, a leading maker of robot arms, rose as much as 16% after announcing a partnership with Google. The two companies will team up to build a new AI system for industrial robots. They will use tools from Google Cloud, including Gemini Enterprise, to develop this technology. This collaboration aims to enhance the capabilities of Fanuc's industrial robots. The news sent Fanuc's stock price to an intraday record high.

Lumentum gains from AI optics demand and NVIDIA deal

Lumentum Holdings reported a surge in demand for optical components used in artificial intelligence systems. The company has multi-year purchase agreements tied to the construction of next-generation data centers. Lumentum plans to expand its manufacturing capacity because its current optical capacity is sold out through 2028. NVIDIA has announced a $2 billion investment in Lumentum to strengthen their partnership on AI optical infrastructure. This collaboration is expected to drive innovation and growth in the industry.

AI and oil move global markets beyond US stocks

Artificial intelligence is driving financial markets around the world, not just in the United States. While Nvidia has been a major performer, Intel has made a remarkable comeback with shares up 214.6 percent in 2026. The AI boom is benefiting companies that enable AI inference, not just those that train AI models. Chip makers in South Korea and Taiwan, such as Samsung and TSMC, have also seen strong stock performance. These companies are crucial for producing the advanced chips needed for AI applications.

New ETF targets physical AI, drones, and smart factories

WisdomTree launched a new fund called the WisdomTree Physical AI, Humanoids, and Drones Fund. This ETF targets companies developing robotics, drones, and smart manufacturing systems. It focuses on the shift from digital AI tools to real-world autonomous systems that can perform physical tasks. The fund covers five verticals including robotics, mobility, and warehouse automation. It uses a rules-based index methodology and charges a management fee of 0.45%.

Sources

• Applied Materials Q2 2026 earnings beat on AI demand
• Applied Materials’ revenue forecast rises on AI demand
• Applied Materials’ sales forecast gets boost from AI demand
• Institutional investors boosted holdings of AI infrastructure plays during first quarter
• Institutional investors boosted holdings of AI infrastructure plays during first quarter
• CLBT: Q1 ARR up 21%, AI products launched, and federal/EMEA growth drive strong outlook
• Alphabet sells record yen bonds worth $3.6 billion for AI
• SA analyst says AI stocks continue fueling Wall Street’s record advance
• Intuit rises as traders position ahead of earnings and refocus on AI-driven product updates
• Fanuc Shares Surge After Partnership With Google on Physical AI
• Lumentum’s AI Optics Demand And NVIDIA Deal Reshape Valuation Debate
• It’s Not Just U.S. Stocks. A.I. and Oil Are Moving Global Markets, Too.
• AI Trade Evolves As New ETF Targets Humanoids, Drones And Smart Factories - WisdomTree Physical AI, Human