google launches amazon while microsoft expands its platform

Key Takeaways

• Alphabet, a $4 trillion tech giant, reported $402.8 billion in 2025 revenue, driven by AI in Google Search, YouTube, Gemini, and Waymo.
• Taiwan Semiconductor Manufacturing (TSMC), a $1.8 trillion chipmaker, dominates AI chip production, with profits up 35% in late 2025 and 30% growth projected for 2026.
• Major tech companies like Alphabet, Amazon, and Microsoft plan to spend up to $185 billion and $200 billion on AI in 2026, significantly boosting demand for AI infrastructure.
• Cloudflare's stock jumped 10% and expects higher sales, with CEO Matthew Prince attributing growth to increasing demand from AI agents for networking and security services.
• Shopify's stock surged after reporting strong Q4 results, with revenue up 30.6% to $2.14 billion, driven by AI-powered tools and "agentic commerce" initiatives.
• London-based startup Overmind, founded by ex-MI5 engineers, secured £2 million in seed funding for its real-time security layer for agentic AI.
• SentinelOne is acquiring Observo AI for approximately $225 million to enhance its AI-native security operations and data pipeline capabilities.
• Cisco Systems' stock rose 6.3% following the release of its new AI networking and security stack, including the Silicon One G300 chip and enhanced AI Defense platform.
• Blackbaud Inc. aims for 13% or higher annual earnings per share growth through 2030 by aggressively rolling out new artificial intelligence technologies.
• SoundHound AI, despite a 55% stock drop, holds a $1 billion order backlog and saw 120% sales growth last year, with analysts expecting positive earnings by 2027.

Alphabet and TSMC Shine as Top AI Stocks

Two top AI stocks for investors are Alphabet and Taiwan Semiconductor Manufacturing. Alphabet is a tech giant with a $4 trillion market cap, showing strong growth from AI in Google Search, YouTube, Gemini, and Waymo. In 2025, it generated $402.8 billion in revenue. Taiwan Semiconductor Manufacturing, a leading chipmaker for advanced AI chips, has a $1.8 trillion market cap. Its profits rose 35% in late 2025, and it projects 30% growth in 2026, also expanding its presence in the US. These companies offer significant long-term investment opportunities in the AI market.

Alphabet and TSMC Lead AI Stock Investments

For investors with $5,000, Alphabet and Taiwan Semiconductor Manufacturing are strong AI stock choices. Alphabet, a $4 trillion tech giant, uses AI across Google Search, YouTube, Gemini, and Waymo, showing solid growth and $402.8 billion in 2025 revenue. Taiwan Semiconductor Manufacturing, valued at $1.8 trillion, is a top maker of advanced AI chips. It saw profits jump 35% in late 2025 and expects 30% growth in 2026, also expanding its US presence. Both companies offer significant long-term potential in the AI market.

TSMC AI Chip Stock Expected to Reach New Highs

Taiwan Semiconductor Manufacturing, or TSMC, is predicted to reach new stock highs by the end of 2026. TSMC is the world's top chip foundry, making nearly 75% of global chips, including most AI chips for data centers. Big tech companies like Alphabet and Amazon plan to spend up to $185 billion and $200 billion on AI in 2026, driving demand for TSMC's chips. Experts believe total data center investments could hit $7 trillion by 2030, benefiting TSMC greatly. Analysts expect TSMC's earnings to grow 25% annually for the next three to five years.

Cloudflare Sales Rise as AI Boosts Cloud Demand

Cloudflare Inc. expects higher annual and first-quarter sales, driven by the growing demand for artificial intelligence. The company's shares rose 3% after the announcement. Cloudflare offers services like DDoS protection and content delivery networks, and it benefits as companies invest in cloud infrastructure for AI models. CEO Matthew Prince stated that AI is a long-term trend for Cloudflare. The company projects first-quarter revenue between $377 million and $379 million, and full-year 2024 revenue between $1.54 billion and $1.55 billion, both exceeding analyst estimates.

Cloudflare Stock Jumps 10 Percent on AI Agent Demand

Cloudflare's stock jumped 10% after the company reported strong fourth-quarter results and positive future guidance. CEO Matthew Prince noted that the rise of AI agents, like the viral Moltbot, is increasing demand for Cloudflare's networking and security services. He explained that Cloudflare acts as the platform and network for these new AI users, creating a beneficial cycle. The company's fourth-quarter revenue rose 34% to $615 million, beating expectations. Cloudflare also expects first-quarter revenue between $620 million and $621 million, and full-year revenue between $2.79 billion and $2.80 billion, both higher than analyst estimates.

Ex-MI5 Engineers Raise £2M for AI Security Startup Overmind

London-based startup Overmind, founded by former MI5 engineers Tyler Edwards and Ben Askew, raised £2 million in seed funding. The investment was led by Osney Capital, with support from 14Peaks, Portfolio Ventures, Antler, and Endurance Ventures. Overmind developed a special security layer for agentic AI, which provides real-time oversight and stops harmful actions. The system also uses reinforcement learning to make AI agents safer and more reliable. This funding will help Overmind expand its team and product development, focusing on sectors like legal, healthcare, and fintech, where AI security is crucial.

Blackbaud Targets High Growth with AI and Stock Buybacks

Blackbaud Inc. aims for a strong 13% or higher annual growth in earnings per share through 2030. The company plans to achieve this by aggressively rolling out new artificial intelligence technologies. Blackbaud also committed to using over 50% of its free cash flow for buying back its own shares. During its Q4 2025 earnings call, CEO Michael Gianoni noted that the company became a "Rule of 40" company two years ahead of schedule. This success comes from focusing on company efficiency and constant product innovation.

SoundHound AI Stock Drops but Shows Strong Potential

SoundHound AI stock has fallen over 55% from its recent highs, but the company shows strong potential in the voice AI market. SoundHound AI uses advanced artificial intelligence to help people and machines communicate through voice commands. The company has a large order backlog of over $1 billion and saw its trailing sales jump 120% last year to $148.4 million. Major companies like Five Guys, Toast, and Stellantis use SoundHound AI's technology. Despite current losses, analysts expect the company to achieve positive earnings per share by fiscal year 2027.

Shopify Stock Jumps on Strong AI Driven Results

Shopify's stock jumped after the e-commerce company reported better-than-expected fourth-quarter results and a strong outlook for 2024. The company highlighted that artificial intelligence tools are boosting its business. Fourth-quarter revenue increased 30.6% to $2.14 billion, and Gross Merchandise Volume grew 14% to $65.2 billion. Shopify expects about 30% revenue growth for the full year 2024, showing confidence in its continued expansion. AI-powered tools help merchants improve operations and personalize customer experiences, making AI a key part of Shopify's future.

Shopify Stock Surges as AI Commerce Excites Investors

Shopify shares surged over 7% as investors anticipated strong fourth-quarter earnings and growth from its AI-powered "agentic commerce" platform. Wall Street analysts, including ATB Capital and MoffettNathanson, upgraded Shopify, seeing it as a long-term winner in AI commerce. Analysts expect Shopify to report $3.59 billion in quarterly revenue, a 28% increase from last year, and earnings per share of $0.51. Shopify's AI initiatives, like Agentic Storefronts, Sidekick, and Shopify Magic, have already boosted the stock by 50% in 2025 and are expected to drive future growth.

AI Boom Gives Data Center Debt Top AAA Rating

A data center landlord, which leases to artificial intelligence operators, received the highest credit rating of AAA from Moody's for a $500 million debt deal. This is the first time one of the top three ratings firms has given a AAA rating to a data center asset-backed security deal. This top rating means the company can get cheaper financing and attract more investors. The deal is part of a larger trend where big tech companies like Alphabet, Amazon, and Microsoft are heavily investing in AI infrastructure. Moody's noted the deal's strength came from its investment-grade tenants, steady cash flows, long contracts, and low debt.

Cisco Stock Rises 6.3 Percent on New AI Security Stack

Cisco Systems' stock rose 6.3% after the company revealed its new AI networking and security stack. Cisco expanded its AI portfolio with the Silicon One G300 switching chip, new N9000 and 8000 data center systems, and major upgrades to its AI Defense security suite. This move positions Cisco as a complete infrastructure provider for large-scale AI workloads. The enhanced AI Defense platform, including AI Bills of Materials and real-time agentic guardrails, aims to strengthen Cisco's standing with businesses and governments deploying AI. Analysts project Cisco to reach $65.2 billion in revenue and $14.0 billion in earnings by 2028.

SentinelOne Buys Observo AI for $225 Million to Boost AI Security

SentinelOne is acquiring Observo AI in a deal worth about $225 million in cash and stock. This move aims to strengthen SentinelOne's AI-native security operations and data pipeline capabilities. The company is also launching new Data Security Posture Management tools as part of its expanded AI Security Platform. SentinelOne uses AI for autonomous cybersecurity, detecting threats across various systems. While the company remains unprofitable with a $411.3 million net loss, its stock currently trades about 34% below analyst targets and 43.1% below its estimated fair value.

Sources

• Got $5,000? 2 Unstoppable Artificial Intelligence (AI) Stocks to Buy and Hold for Years
• Got $5,000? 2 Unstoppable Artificial Intelligence (AI) Stocks to Buy and Hold for Years
• Prediction: This Artificial Intelligence (AI) Stock Will Reach a New All-Time High by End of 2026
• Cloudflare forecasts annual sales above estimates as AI drives cloud demand
• Cloudflare pops 10% as AI agent wave led by viral Moltbot boosts security demand
• Ex-MI5 engineer's Overmind snaps £2M for agentic AI security
• Blackbaud targets 13%+ EPS CAGR through 2030 with aggressive AI rollout and 50%+ free cash flow for buybacks
• Is SoundHound AI Stock a Buy Now?
• Shopify soars after AI-boosted results, guides for +30% revenue growth
• AI Race Mints Top-Rated Hyperscaler-Backed Data Center Debt
• Why Cisco Systems (CSCO) Is Up 6.3% After Unveiling Its New AI Networking and Security Stack
• Shopify Stock Soars Ahead Of Q4 Earnings: Wall Street, Retail Traders Eye Signs Of AI Boost
• SentinelOne Buys Observo AI As AI Security Platform And Valuation Draw Focus