The artificial intelligence sector continues to see significant activity, from substantial funding rounds to strong performance in chip manufacturing and infrastructure development. Fintech startup Paygentic has secured $2 million in seed funding to build billing and payments infrastructure tailored for AI-native businesses, addressing the need for flexible pricing models like subscriptions and usage-based billing. In the semiconductor space, Intel's stock rose following strong third-quarter earnings, driven by increased demand for its AI chips, as the company invests to compete with leaders like Nvidia. Intel reported $13.7 billion in revenue, exceeding forecasts, and is developing new accelerators like Gaudi 3. Meanwhile, Nvidia maintains a dominant position, estimated at over 95% market share, in AI training and inference chips for data centers, a market projected to exceed $500 billion by 2028. Google's parent company, Alphabet, is also showing strong momentum, with Bank of America maintaining a 'Buy' rating and raising its price target, citing growth in AI, Cloud services, and advertising spending. Beyond core AI development, the demand for AI is fueling infrastructure growth; GE Vernova, a GE spinoff, reported a significant increase in orders for grid equipment from technology firms building data centers, with third-quarter orders alone surpassing the entire previous year. Investors are also showing interest in AI-related real estate, though caution is advised regarding speculative ventures like the Fermi IPO, which lacks traditional assets. In a broader context, investments in AI for climate solutions, under the CleanAI Initiative, have surpassed $50 billion since 2020, with the US leading the way, highlighting AI's role in sustainability efforts. Despite the overall AI boom, some companies like BigBear.ai face challenges with revenue and losses, though they maintain a strong cash position and analysts predict a potential stock rebound by 2026 contingent on profitability. The market also includes overlooked AI stocks with market capitalizations over $2 billion, offering potential upside, though concerns about a potential AI market bubble persist due to rapid price increases and high valuations.
Key Takeaways
- Paygentic raised $2 million in seed funding to develop billing and payment infrastructure for AI-native businesses.
- Intel's stock increased following strong Q3 earnings driven by demand for its AI chips, reporting $13.7 billion in revenue.
- Nvidia holds an estimated market share of over 95% in AI training and inference chips for data centers.
- Bank of America has a 'Buy' rating on Alphabet (GOOGL), anticipating growth in AI, Cloud, and advertising.
- GE Vernova is seeing increased orders for grid equipment due to data center expansion for AI.
- Investments in AI for climate solutions have exceeded $50 billion since 2020, with the US leading.
- BigBear.ai, despite revenue challenges, has a strong cash position and potential for stock rebound by 2026.
- Some AI stocks with market caps over $2 billion are identified as potentially overlooked investments.
- Concerns exist about a potential AI market bubble due to rapid price increases and high valuations.
- The AI market is experiencing intense competition and rapid growth across various segments.
Paygentic raises $2 million for AI billing infrastructure
Fintech startup Paygentic, co-founded by Susan O'Neill and Samuel Alarco Cantos, has secured $2 million in seed funding. The company is building billing and payments infrastructure specifically for AI-native businesses. This funding will help Paygentic expand its team and scale its platform. Founded in early 2025, Paygentic aims to support flexible pricing models like subscriptions and usage-based billing for the growing AI product market. Their system is designed to handle the complex transactions common in AI applications.
Paygentic secures $2 million for AI payment solutions
Paygentic has raised $2 million in pre-seed funding to create payment and billing infrastructure for AI-native companies. These businesses often face variable costs but traditional systems charge fixed fees. Paygentic offers tools for hybrid, subscription, usage-based, and outcome-based pricing models. Their platform combines billing, payments, and pricing support, designed to be fast and scalable for AI products. Early clients like ChaseLabs have found the outcome-based pricing model essential for their AI sales development representatives.
Intel stock rises on strong Q3 earnings driven by AI chip demand
Intel's stock saw a significant increase after reporting third-quarter earnings that exceeded Wall Street's expectations. This positive performance was largely driven by a surge in demand for artificial intelligence chips. The company has been investing in its manufacturing and chip development to compete in the semiconductor industry. While Nvidia has been a leader in AI chips, Intel's progress in this area signals potential for future growth. Investors are now looking to Intel's guidance for the fourth quarter to assess its continued momentum.
Intel beats revenue forecast as AI demand remains strong
Intel exceeded revenue and earnings expectations for the third quarter, reporting $13.7 billion in revenue. This success was fueled by strong demand for its AI-related products, although specific sales figures were not disclosed. Despite beating forecasts, investor reaction was cautious due to conservative future guidance and the stock's valuation. Intel is actively investing in new technologies like its Gaudi 3 AI accelerator to compete in the AI chip market. The company's performance highlights the high demand and intense competition within the AI sector.
BigBear.ai stock could jump 50% by 2026
BigBear.ai is facing challenges with falling revenue and rising losses, but holds a strong cash position of $390 million. Analysts predict a potential 50% rebound for the company's stock by 2026. However, its success will depend on its ability to turn its cash reserves into sustainable profits. Key factors for long-term success include effective execution, achieving profitability, and maintaining stability in government contracts. The company's current stock price is $6.81 as of October 23, 2025.
10 overlooked AI stocks to consider buying now
Artificial intelligence is transforming industries, but many investors focus only on headline-grabbing companies. This article identifies 10 overlooked AI stocks with market capitalizations over $2 billion and potential for at least 10% upside. The selection process filtered stocks from the Global X Artificial Intelligence & Technology ETF based on low hedge fund holdings. Experts like Christopher Gannatti and Jared Bernstein have raised concerns about a potential AI market bubble due to rapid price increases and high valuations, though AI companies currently show stronger fundamentals than during the dot-com era. Companies like WeRide Inc. and Pony AI Inc. are highlighted for their potential in autonomous driving and AI technology.
AI boosts business for GE spinoff GE Vernova
GE Vernova, a spinoff from GE, is experiencing increased sales of grid equipment due to the demand for new data centers. The company's electrification division reported $400 million in orders from technology firms in the third quarter alone. This amount surpasses the $600 million in orders from tech companies for the entire year of 2024. The surge in demand is directly linked to the rapid expansion of data centers needed to power artificial intelligence technologies.
AI data center REIT Fermi IPO sparks investor interest
Investors are showing significant interest in AI-related real estate, with the recent IPO of data center REIT Fermi attracting attention. However, the article suggests investors may be drawn to it for the wrong reasons, as it lacks dividends, tenants, revenue, or physical assets, despite its $18 billion market cap. The Morningstar Dividend SMA strategy, in contrast, focuses on stable, income-generating investments like Healthpeak, which owns numerous healthcare properties and provides consistent cash flow and dividends. The current market environment, driven by AI hype, presents opportunities for disciplined investors to find undervalued assets.
Bank of America bullish on Alphabet's AI and Cloud growth
Bank of America (BofA) maintains a 'Buy' rating on Alphabet (GOOGL) and has raised its price target to $280, anticipating strong third-quarter earnings. BofA's analysis indicates increasing advertising spending and significant momentum in Artificial Intelligence (AI) and Cloud services. The firm believes Alphabet's AI investments will strengthen its market position, while its Cloud division continues its robust growth. This positive outlook reflects confidence in Alphabet's ability to leverage these key areas for financial success.
Mizuho: NVIDIA leads AI training and inference chips
Mizuho reports that NVIDIA Corporation (NVDA) maintains its dominant leadership in AI training and inference chips for data centers, estimating over 95% market share. The firm projects this market to grow significantly, potentially reaching over $500 billion by 2028. NVIDIA offers platforms for various applications including self-driving cars and cloud services. Wall Street analysts currently hold a consensus 'Buy' rating on NVDA, with price targets suggesting considerable upside potential.
CleanAI investment tops $50B, leading climate tech funding
The CleanAI Initiative reports that investments in AI for climate solutions have surpassed $50 billion since 2020, with the United States leading investments. This sector, merging AI and sustainability, is experiencing rapid growth despite a slowdown in the broader cleantech market. CleanAI accounts for 10 percent of global AI venture funding, with the US contributing over $30 billion. Sweden, Germany, China, and Canada are also significant investors. Investments are projected to exceed $60 billion by 2026, driven by AI's role in optimizing energy, materials, agriculture, transportation, resource management, and waste reduction.
Sources
- Paygentic Raises $2 Million to Build Billing Infrastructure for AI-Native Products
- Paygentic Raises a $2m Pre-Seed Round to Provide Payments Infrastructure to AI-Native Businesses
- Intel stock jumps as Q3 earnings beat expectations, AI drives chip demand
- Intel Tops Revenue Forecast As AI Demand Stays Strong
- Prediction: BigBear.ai Could Rebound 50% by 2026
- 10 Overlooked AI Stocks to Buy Now
- AI juices business for GE spinoff
- Investors Run Toward This Buzzy AI Data Center REIT for the Wrong Reasons
- BofA Stays Bullish on Alphabet (GOOGL) as AI and Cloud Momentum Build
- NVIDIA (NVDA) Retains Leadership in AI Training and Inference, Says Mizuho
- How CleanAI is Leading the Charge in Climate Tech Investment with $50B+ in Funding
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