ServiceNow shares tumbled 17% after missing first-quarter revenue targets of $1.81 billion, landing at $1.78 billion. CFO Gina Mastantuono blamed the miss on sales slowdowns linked to the Iran war, though she noted AI product revenue surged 25% year-over-year. Despite the stumble, the company guided second-quarter revenue between $1.85 billion and $1.87 billion, maintaining confidence in its AI-driven growth trajectory.
Meanwhile, Alphabet saw its stock rise 2.1% following the unveiling of the TPU 8i AI inference chip at Google Cloud Next. Designed for faster performance and energy efficiency, the chip powers core products like search and advertising while reducing reliance on third-party hardware. Executives highlighted real-time inference capabilities, signaling a strategic push to build custom silicon infrastructure for large-scale AI models.
In the automotive sector, Tesla reported fiscal Q1 revenue of $22.39 billion, beating expectations with gross margins climbing to 21.1%. CFO Vaibhav Taneja attributed the margin recovery to stronger deliveries in Europe and Asia, alongside increased Full Self-Driving subscriptions. However, the company identified battery pack capacity as a current bottleneck for production expansion.
Startup dynamics shifted dramatically as SpaceX secured an option to acquire Cursor AI for $60 billion, originally valued at $29.3 billion. The deal involves a $10 billion collaboration to develop AI for coding, with SpaceX planning to use its Colossus supercomputer for training. Reports indicate Microsoft previously considered a bid to boost GitHub Copilot but ultimately chose not to proceed.
Financial and gaming sectors also saw activity. Astor raised $5 million in seed funding led by Monashees to build an AI investment advisor for everyday Americans, joining Y Combinator's Summer 2025 batch. Morgan Stanley identified four winners in AI-driven gaming, including Sony and NetEase, predicting a $22 billion profit opportunity as development costs potentially halve.
Nokia reported 4% net sales growth in Q1 2026, driven by a 49% surge in AI and Cloud segments. The telecom giant expanded margins and raised its full-year profit outlook, focusing on advanced network solutions. In database technology, MongoDB appointed new Chief Product Officers for AI and Core Products, signaling a deepened internal focus on evolving its platform for modern, data-intensive applications.
Key Takeaways
['ServiceNow stock dropped 17% after missing Q1 revenue targets of $1.81 billion, though AI product revenue grew 25% year-over-year.', 'Alphabet shares rose 2.1% following the launch of the TPU 8i AI inference chip designed for faster, energy-efficient large-scale models.', 'Tesla beat Q1 earnings with $22.39 billion revenue and gross margins improving to 21.1%, citing stronger deliveries and FSD adoption.', 'SpaceX secured an option to acquire Cursor AI for $60 billion, leveraging its Colossus supercomputer to train proprietary models.', 'Microsoft reportedly considered buying Cursor before the SpaceX deal but ultimately declined the bid.', 'Astor raised $5 million in seed funding to develop an AI investment advisor accessible to everyday Americans.', 'Morgan Stanley predicts AI could halve game development costs, creating a $22 billion opportunity for companies like Sony and NetEase.', 'Nokia reported 4% Q1 sales growth driven by a 49% increase in AI and Cloud segment performance.', 'MongoDB appointed new Chief Product Officers for AI and Core Products to accelerate development for modern data applications.', 'CFOs from ServiceNow and Tesla addressed market volatility and earnings misses, emphasizing long-term AI infrastructure investments.']ServiceNow stock drops 17% as CFO discusses AI growth
ServiceNow stock fell by 17%, its biggest drop since January 2016, after the company reported first-quarter earnings impacted by the Iran war. President and CFO Gina Mastantuono appeared on Market Catalysts to explain the results and discuss the company's AI products. Revenue from AI products grew by 25% year-over-year, showing strong market interest in workflow automation and customer service tools. The stock price has been volatile, trading between $450 and $550 recently due to concerns about meeting revenue targets. Despite these challenges, Mastantuono remains confident that AI products will continue to drive future growth for the company.
ServiceNow misses earnings targets but highlights AI potential
ServiceNow reported first-quarter revenue of $1.78 billion, which was 21% higher than the previous year but missed analyst expectations of $1.81 billion. The company also recorded a net loss of $124.5 million, an increase from the prior year. CFO Gina Mastantuono attributed the revenue miss to a slowdown in sales growth caused by the Iran war. She emphasized that AI products are a key differentiator and are driving innovation and strong customer demand. Mastantuono provided guidance for the second quarter, expecting revenue between $1.85 billion and $1.87 billion. She also outlined full-year revenue guidance ranging from $7.45 billion to $7.55 billion.
Alphabet stock rises after unveiling new AI chip
Shares of Alphabet Inc. rose 2.1% after the company introduced its new TPU 8i AI inference chip at the Google Cloud Next conference. The chip is designed to provide faster performance and better energy efficiency for large-scale AI models. Integrated into Google Cloud, the TPU 8i helps enterprise customers run generative AI tools more cost-effectively while scaling efficiently. Executives stated the chip will power AI features across core products like search, advertising, and workspace tools. The announcement demonstrated real-time inference capabilities, showing practical applications rather than just experimental progress. Investors reacted positively, confident that custom silicon investments will enhance margins by reducing reliance on third-party hardware.
Alphabet gains 2.1% on new AI inference chip reveal
Alphabet Inc. stock increased 2.1% on April 22 after unveiling the TPU 8i AI inference chip during the annual Google Cloud Next conference. The new chip delivers faster performance and improved energy efficiency for large-scale models within Google Cloud. It enables higher throughput and lower latency for real-time AI applications, helping businesses run generative AI tools more efficiently. The chip supports AI features in core products including search, advertising systems, and workspace tools. Live demonstrations showed faster query handling and improved performance in AI-driven assistants. This move reinforces Alphabet's strategy to build its own AI infrastructure and reduce dependence on external chip suppliers.
Nokia reports strong Q1 2026 sales and margin growth
Nokia reported 4% net sales growth in the first quarter of 2026, driven by strong performance in AI and Cloud segments. Sales in AI and Cloud increased by 49%, led by gains in Network Infrastructure and Optical Networks. The company also expanded its margins and raised its full-year profit outlook. Free cash flow and net cash positions remained strong during the period. These results highlight Nokia's successful strategy in expanding its digital infrastructure services. The company continues to focus on delivering value through advanced network solutions and cloud technologies.
Astor raises $5M seed funding to build AI investment advisor
Astor raised $5 million in seed funding led by Monashees to build an AI investment advisor for everyday Americans. The SEC-registered platform uses AI to deliver personalized financial guidance to people who cannot access traditional advice. Co-founders Bruno Koba and Daniel Tulha joined Y Combinator's Summer 2025 batch to launch the service. The company connects to users' existing brokerage accounts to evaluate holdings and provide tailored recommendations. Investors include Y Combinator, Goodwater Capital, and executives from Stripe and OpenAI. Monashees, a Latin American venture capital firm, led the investment round.
SpaceX options to buy Cursor AI for $60 billion
SpaceX struck a deal giving it the option to acquire AI coding startup Cursor for $60 billion. The actual structure is a $10 billion collaboration to develop AI for coding and knowledge work, with the right to acquire Cursor later this year. Cursor, built by Anysphere, was founded in 2022 by four MIT students and has grown rapidly in valuation. The company is now valued at $29.3 billion after a Series D round and is used by 67% of Fortune 500 companies. SpaceX plans to use its Colossus supercomputer to train Cursor's proprietary models. This partnership aims to solve the problem of having powerful computing power without a killer application.
Tesla beats earnings expectations with margin recovery
Tesla reported better-than-expected revenue of $22.39 billion in the first quarter of fiscal year 2026, up 15.8% year over year. Non-GAAP profit per share was $0.41, beating analyst estimates by 15.2%. Gross margins improved to 21.1% and operating margins rose to 4.2% compared to the same quarter last year. CFO Vaibhav Taneja credited the results to rising vehicle deliveries in Europe and Asia and increased adoption of Full Self-Driving subscriptions. Management expects continued investment in AI infrastructure and manufacturing expansion to support long-term growth. The company identified battery pack capacity as a current production bottleneck.
Microsoft considered buying Cursor before SpaceX deal
Sources say Microsoft looked at buying Cursor, an AI coding startup, before SpaceX finalized its $60 billion acquisition deal. Microsoft chose not to proceed with a bid despite trying to boost the popularity of its GitHub Copilot assistant. The SpaceX agreement came late in Cursor's fundraising process, catching prospective investors off guard. Microsoft has been working to improve its AI tools while investing billions in Anthropic and OpenAI. Venture capital firms had lined up financing for Cursor at a $50 billion valuation. The deal structure involves SpaceX obtaining the right to acquire Cursor for $60 billion.
Morgan Stanley names four winners for AI in gaming
Morgan Stanley predicts AI advances could cut game development costs in half, creating a $22 billion profit opportunity. The bank identified four U.S.-traded companies as potential winners in the AI-driven gaming sector. Sony is a top pick due to its diversified portfolio and strong intellectual property base. NetEase is highlighted as the leading game AI expert with a strong talent pool. Roblox could benefit from AI-enhanced game creation tools that appeal to users. AppLovin is also named a winner as advertising becomes more critical in a crowded market. The report also mentions Tencent Holdings and NC Corp as additional beneficiaries of AI in gaming.
MongoDB appoints new leaders for AI and core products
MongoDB has expanded its product leadership team by appointing new Chief Product Officers for AI and Core Products. This move highlights a stronger internal focus on AI capabilities and the evolution of its core database platform. The changes aim to shape how MongoDB develops products for modern data-intensive and AI-driven applications. Investors are tracking the stock at a share price of $269.54. The leadership update signals a commitment to advancing AI features alongside the company's existing database solutions.
Sources
- ServiceNow stock sinks on Q1 earnings. CFO discusses AI product growth.
- ServiceNow stock sinks on Q1 earnings. CFO discusses AI product growth.
- Alphabet Stock Gains 2.1% After Unveiling New AI Inference Chip
- Alphabet Stock Gains 2.1% After Unveiling New AI Inference Chip
- NOKIA: Q1 2026 delivered strong sales and margin growth, led by AI & Cloud and Network Infrastructure
- Astor Raises $5M Seed Led by Monashees to Build an AI Investment Advisor for Everyone
- SpaceX Bets $60 Billion On Cursor AI. The Real Winner Is A Surprise.
- TSLA Q1 Deep Dive: Margin Recovery and Accelerated Investment in Autonomy and AI
- Microsoft looked at buying Cursor before SpaceX deal, sources say
- AI is going to change the video game industry. Morgan Stanley says these 4 stocks will be winners
- MongoDB Expands Product Leadership To Sharpen AI And Atlas Growth Story
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