Meta Advances AI Initiatives While Nvidia Powers Foxconn Growth

The artificial intelligence sector continues to attract significant investment and strategic shifts across major technology and industrial players. Companies are either reallocating resources towards AI, expanding their AI-driven product portfolios, or seeing substantial revenue growth directly tied to AI demand. This widespread focus underscores AI's growing importance in shaping future industries and technological advancements. Meta Platforms Inc. is making a notable pivot, cutting its Reality Labs metaverse division budget by 30 percent. This decision frees up capital for Meta's AI initiatives, including the development of new AI chips and large language models, aiming to enhance platforms like Facebook, Instagram, and WhatsApp. Meanwhile, Foxconn, the world's largest contract electronics manufacturer and a key partner for Apple's iPhone assembly, reported a 26 percent year-on-year revenue increase in November, reaching NT$844.3 billion, or $27 billion. This surge is attributed to strong demand for AI server racks, further solidified by Foxconn's collaboration with Nvidia and the Taiwanese government on a new AI factory in Taiwan. In the realm of AI infrastructure, Broadcom is gaining recognition as a crucial, often overlooked, player. Mizuho Securities analyst Jordan Klein issued a buy rating and a $1,300 price target for Broadcom, highlighting its essential semiconductor solutions and high-performance networking chips for AI data centers. Broadcom designs specialized chips for major AI companies such as Google and Amazon, positioning it as a significant beneficiary of the generative AI boom. Another Nvidia-backed entity, cloud company CoreWeave, received a buy recommendation from Freedom Capital Markets, with a $100 price target. Despite a recent stock dip due to a data center construction delay, CoreWeave maintains a $56 billion revenue backlog, secured by payments from large tech companies and a seven-year backstop from Nvidia, which also holds a 6.56 percent stake in CoreWeave. Beyond hardware and core infrastructure, AI applications are expanding. Workiva appointed Deepak Bharadwaj, formerly of Adobe, as its new Executive Vice President and Chief Product Officer to advance its AI-powered reporting platform. Procore Technologies launched its Groundbreak AI suite and expanded its partnership with AWS, aiming for strong long-term growth. Helmet Security secured $9 million in funding to enhance its platform for securing agentic AI communications, addressing the proliferation of unmonitored MCP servers. Chinese tech giant Xiaomi announced its 2025 AI investments "far exceeded expectations," now focusing on embodied AI for electric vehicles and robotics. Additionally, BigBear.ai acquired BlackSwan Technologies for $20 million to boost its AI-powered decision intelligence solutions for government and commercial clients, while Hancock Prospecting significantly increased its investment in the Global X Artificial Intelligence and Technology ETF (AIQ) by $71.75 million, bringing its total stake to $73.82 million.

Key Takeaways

• Meta Platforms Inc. is reallocating resources, cutting its Reality Labs metaverse budget by 30 percent to prioritize AI investments, including new AI chips and large language models.
• Foxconn, a partner to Nvidia and Apple, reported a 26 percent year-on-year revenue increase in November to $27 billion (NT$844.3 billion), driven by demand for AI server racks and is building an AI factory with Nvidia in Taiwan.
• Broadcom received a buy rating and a $1,300 price target from Mizuho Securities, recognized for providing essential semiconductor solutions and custom AI chips for companies like Google and Amazon.
• CoreWeave, an Nvidia-backed cloud company, has a $56 billion revenue backlog, supported by a seven-year backstop from Nvidia, which also holds a 6.56 percent stake.
• Workiva appointed Deepak Bharadwaj, with past experience at Adobe, as its new Chief Product Officer to lead the advancement of its AI-powered reporting platform.
• Helmet Security secured $9 million in funding from SYN Ventures and WhiteRabbit Ventures to enhance its security platform for agentic AI communications, monitoring over 17,000 deployed MCP servers.
• Xiaomi's 2025 AI investments "far exceeded expectations," with the company now focusing on embodied AI applications for electric vehicles and robotics.
• BigBear.ai acquired BlackSwan Technologies for $20 million in cash and stock to bolster its AI-powered decision intelligence solutions for government and commercial clients.
• Hancock Prospecting significantly increased its stake in the Global X Artificial Intelligence and Technology ETF (AIQ) by $71.75 million, bringing its total investment to $73.82 million.
• Procore Technologies launched its Groundbreak AI suite and expanded its partnership with AWS, aiming for strong long-term growth and improved operating margins.

Workiva names new AI product chief Deepak Bharadwaj

Workiva appointed Deepak Bharadwaj as its new Executive Vice President and Chief Product Officer. He will lead product and UX teams to advance Workiva's AI-powered reporting platform and expanding product portfolio. Bharadwaj's past experience at Adobe and ServiceNow with AI-driven products will help Workiva enhance its platform for large businesses. This move supports Workiva's goal of growing its AI platform and achieving profitability. The company reported Q3 2025 revenue of US$224.17 million and a net profit of US$2.79 million.

Procore Technologies launches AI suite and new CEO

Procore Technologies is making big changes with its new Groundbreak AI suite, an expanded partnership with AWS, and an incoming CEO. These moves come as the company's stock has seen an 8.6 percent return in one month and a 53 percent return over three years. Procore's shares are currently trading below their one-year high and analyst targets. The company aims for strong long-term growth and improved operating margins, targeting 25 to 40 percent free cash flow margins.

Broadcom is an overlooked AI stock for 2025

Broadcom AVGO is a key player in the AI revolution, often overlooked despite its important role. The company provides essential semiconductor solutions and infrastructure software for AI data centers, including custom AI accelerators and high-performance networking chips. Broadcom has diverse revenue streams, strong finances, and a history of smart acquisitions like VMware. As AI demand grows for generative AI and large language models, Broadcom's foundational technologies make it a significant beneficiary.

Mizuho bets big on Broadcom AI growth

Broadcom Inc. AVGO shares are rising as Mizuho Securities analyst Jordan Klein gave the chipmaker a buy rating and a $1,300 price target. Klein believes Broadcom will greatly benefit from the AI boom due to its networking and custom silicon solutions. The company provides high-performance networking chips for AI data centers and designs specialized chips for major AI companies like Google and Amazon. This positive outlook comes before Broadcom's next earnings report, which is expected to show more about its AI-driven growth.

Foxconn revenue jumps 26 percent from AI demand

Foxconn, also known as Hon Hai and a partner to Nvidia, reported a 26 percent increase in revenue year-on-year. The world's largest contract electronics manufacturer, known for assembling Apple's iPhone and making data center servers, credits "momentum for AI server racks" for this growth. Foxconn's revenue for November reached NT$844.3 billion, or $27 billion. The company is also building an AI factory in Taiwan with Nvidia and the Taiwanese government, showing its strong commitment to the AI sector.

Helmet Security raises 9 million for AI protection

Helmet Security secured $9 million in funding from SYN Ventures and WhiteRabbit Ventures to boost its security platform for agentic AI communications. The company's platform helps businesses discover, monitor, and manage MCP servers, which are key for AI-to-AI communication. Over 17,000 MCP servers have been deployed since late 2024, many without monitoring. Helmet Security's technology gives companies real-time visibility to find risky activities, control communication paths, and enforce security rules. CEO Fred Kneip and CTO Kaushik Shanadi lead the company, aiming to provide strong safety controls as AI communication grows.

Hancock Prospecting invests heavily in AI technology ETF

Hancock Prospecting Pty Ltd significantly increased its investment in the Global X Artificial Intelligence and Technology ETF, known as AIQ. The company bought 1,447,190 more shares, adding about $71.75 million to its position. This makes Hancock Prospecting's total stake in AIQ worth $73.82 million, representing 2.4 percent of its managed assets. AIQ tracks global companies focused on AI and big data, showing a 30 percent total return over the last year. While AIQ offers targeted exposure to AI, it has lagged behind other tech ETFs like QQQ since 2018.

Meta cuts metaverse budget by 30 percent for AI

Meta Platforms Inc. plans to cut the budget for its metaverse division, Reality Labs, by 30 percent. This big change shows Meta is shifting its focus and investments towards artificial intelligence. Reality Labs has lost over $70 billion since it started, leading to this decision. The budget cut will likely slow down the development of virtual and augmented reality products, freeing up money for Meta's AI projects, including new AI chips and large language models. Meta aims to use AI to improve its existing platforms like Facebook, Instagram, and WhatsApp.

Xiaomi AI investments exceed expectations in 2025

Chinese tech company Xiaomi announced that its artificial intelligence investments in 2025 have "far exceeded expectations." President Lu Weibing stated the company is now focusing on embodied AI after significant spending on general AI. Xiaomi is applying AI to electric vehicles and robotics, similar to Elon Musk's work with Tesla and Optimus. The company, which debuted a robot dog in 2021 and a humanoid prototype in 2022, is actively seeking new talent. Xiaomi reported a strong Q3, with adjusted net profit reaching 11.3 billion yuan and revenue increasing 22.3 percent to 113.1 billion yuan.

BigBear.ai acquires BlackSwan to boost AI solutions

BigBear.ai recently acquired BlackSwan Technologies for $20 million in cash and stock. BlackSwan is known for its "data fabric" technology, which helps organizations access and analyze large amounts of data. This acquisition will greatly improve BigBear.ai's ability to offer AI-powered decision intelligence solutions to its government and commercial clients. The deal is expected to finalize in the first quarter of 2024. Despite past stock volatility and cash burn, BigBear.ai is working to improve its finances, and this acquisition is a key part of its growth strategy.

Freedom Capital sees CoreWeave AI stock rebound

Paul Meeks from Freedom Capital Markets recommends buying CoreWeave stock, an Nvidia-backed cloud company. He gave CoreWeave a buy rating and a $100 price target, expecting an almost 17 percent gain. CoreWeave, a specialized cloud provider, recently saw its stock drop after cutting its 2025 revenue forecast due to a data center construction delay. Meeks believes the company's $56 billion revenue backlog is secure, supported by payments from large tech companies and a seven-year backstop from Nvidia. CoreWeave buys Nvidia GPUs and rents them to customers, with Nvidia owning a 6.56 percent stake in the company.

Sources

• Should Workiva’s New AI-Focused Product Chief Shift How WK Investors View Its Platform Strategy?
• Procore Technologies (PCOR): Reassessing Valuation After New AI Suite, AWS Deal and CEO Transition
• The most overlooked artificial intelligence stock of 2025
• Broadcom Stock Is Rising -- Mizuho Bets Big on AI Boom Ahead of Earnings
• Nvidia partner Foxconn reports 26% revenue spike as AI boom continues
• Helmet Security: $9 Million Raised To Advance Protection For Agentic AI Communications
• Hancock Prospecting Bets Big on Global X Artificial Intelligence and Technology ETF: Should Investors Buy Too?
• Meta to Cut Metaverse Budget by 30% Amid AI Shift
• China’s Xiaomi says returns from AI investments ‘far exceed expectations’
• Is BigBear.ai a winning AI investment?
• Buy the dip in this AI 'neocloud' and don't believe the bubble 'conspiracy theories,' says Freedom Capital's Meeks