Meta AI Data Center, DeepSeek V3.1 Beats ChatGPT

The artificial intelligence sector continues to see significant investment and development across various industries. Raymond James Financial reported record earnings and allocated over $1 billion to technology, including AI, while Meta Platforms is making substantial AI infrastructure investments, highlighted by a new $1 billion data center in Indiana. Ondas Holdings is injecting $14 million into AI-driven defense technology through strategic partnerships. In the realm of AI models, DeepSeek V3.1 has demonstrated superior performance in cryptocurrency trading challenges, outperforming models like ChatGPT. Companies are also integrating AI into specialized applications: Varonis Systems launched AI identity protection for Salesforce Agentforce, and Gentex Corporation is collaborating with Anduril Industries on AI-powered helmet systems for soldiers. SoundHound AI's stock has experienced a dramatic surge, though analysts caution about its high valuation and potential for a price drop in 2026, despite its growing use, such as by Red Lobster for phone orders. Pegasystems also received a stock target increase to $65 from Rosenblatt, positioning it as an overlooked AI stock. Meanwhile, TSMC's record third-quarter revenue was significantly boosted by AI chip demand, projecting strong annual growth for AI accelerators. However, the competitive AI chip market presents challenges, as seen with Barclays downgrading Marvell Technology due to concerns over market share gains by Broadcom. IBM's stock experienced a decline amid worries about slowing cloud growth and the pace at which its AI investments are translating into accelerated revenue.

Key Takeaways

• Raymond James Financial invested over $1 billion in technology, including AI, alongside reporting record earnings.
• Meta Platforms is significantly increasing AI spending, including a new $1 billion data center in Indiana.
• Ondas Holdings is investing $14 million to enhance its AI-driven defense technology capabilities.
• DeepSeek V3.1 AI outperformed other models, including ChatGPT, in a real-market crypto trading competition.
• Varonis Systems introduced AI identity protection for Salesforce Agentforce to manage AI agent data access.
• SoundHound AI's stock has surged over 260% in a year, though some analysts predict a potential drop in 2026 due to high valuation.
• TSMC reported record Q3 revenue driven by strong demand for AI chips, with robust long-term AI revenue outlook.
• Barclays downgraded Marvell Technology stock due to concerns about competition from Broadcom in the AI chip sector.
• IBM's stock fell amid investor concerns over slowing cloud growth and the impact of AI investments on revenue acceleration.
• Gentex Corporation is partnering with Anduril Industries to develop AI-powered helmet systems for soldiers.

Ondas Holdings invests $14 million in AI defense and drones

Ondas Holdings is investing $14 million in Safe Pro Group and expanding partnerships with Rift Dynamics and Nammo Raufoss. These moves aim to boost its presence in AI-driven defense technology. The company's stock has seen significant gains, but also volatility, reflecting investor optimism about its focus on advanced defense solutions. Ondas expects record revenue growth in 2025, driven by its Autonomous Systems division. However, high operating costs or delays could challenge its positive outlook.

Raymond James Financial reports record earnings and invests $1 billion in AI

Raymond James Financial announced record earnings for the year ending September 30, 2025, with revenues of $15.91 billion and net income of $2.14 billion. The company also invested over $1 billion in technology, including artificial intelligence, to improve services. Client assets and the number of advisers reached record highs. The company plans to repurchase $1.1 billion in shares, showing confidence in its financial position. Analysts predict revenue of $17.3 billion and earnings of $2.7 billion by 2028.

Gentex partners with Anduril for AI warfighter tech

Gentex Corporation is working with Anduril Industries to develop EagleEye, an AI-powered system for soldiers' helmets. This system will provide command, control, and better awareness on the battlefield. The partnership shows Gentex expanding into advanced military technology, turning protective gear into smart devices. While this defense work offers growth, Gentex still faces risks from reduced car features in China. The company expects to reach $3 billion in revenue by 2028.

SoundHound AI stock soars over 260% in a year

SoundHound AI's stock has surged more than 260% in the past year, driven by strong performance and investor interest in its Amelia AI agent platform. The company reported better-than-expected third-quarter 2024 results and has seen optimistic analyst outlooks. SoundHound raised its 2025 revenue forecast and aims for positive adjusted EBITDA by year-end. Despite a low chance of a stock split, its industry leadership and improving financials make it a strong buy consideration.

Analysts predict SoundHound AI stock may drop in 2026

SoundHound AI's stock has risen significantly, but analysts predict a potential 16% drop in its median 12-month price target for 2026. The company trades at a high valuation, 53 times sales, compared to the tech sector average of 9 times. Despite this, SoundHound has a large backlog and growing customer base, including Red Lobster using its AI for phone orders. The voice AI market is expected to grow substantially, potentially benefiting SoundHound's Amelia platform.

Pegasystems stock target raised to $65 by Rosenblatt

Rosenblatt has reiterated its 'Buy' rating on Pegasystems Inc. (PEGA) and increased the price target to $65 from $61. This suggests a potential upside of about 16% for the stock. The revision follows the company's plans to report its third-quarter earnings. Pegasystems is considered an overlooked AI stock by some investors.

DeepSeek AI dominates crypto trading challenge

The AI model DeepSeek V3.1 has outperformed other AIs, including GPT-5, in a real-market crypto trading test. In the Alpha Arena experiment on the decentralized exchange Hyperliquid, DeepSeek's AI made profits while others incurred losses. Each AI was given $10,000 to trade in six cryptocurrencies over a week. This competition highlights the growing capability of AI in making financial decisions and the competition between Chinese and American AI models.

Varonis launches AI identity protection for Salesforce Agentforce

Varonis Systems has introduced AI identity protection for Salesforce Agentforce, offering visibility and automated controls for AI agent data access and activity. This new solution addresses the growing need to manage and secure AI agents as businesses increasingly use AI. The product provides insights into AI agent actions, automated controls for access, and risk mitigation. This move positions Varonis as a leader in AI security and is expected to drive revenue growth.

Meta investors watch Zuckerberg's big AI spending

Meta Platforms CEO Mark Zuckerberg promised significant AI spending in 2024, and the company is following through with investments like a new $1 billion data center in Indiana. This massive spending on AI infrastructure is expected to be a key topic during Meta's upcoming quarterly earnings report. While Meta frames this spending as crucial for its future and improving its advertising business, investors will be watching closely to see if the company can maintain strong advertising revenue to justify these costs.

TSMC reports record Q3 revenue fueled by AI chip demand

Taiwan Semiconductor (TSMC) reported record third-quarter revenue of $33.1 billion, a 40.8% increase year-over-year, driven by strong demand for AI chips. The company's longer-term AI revenue outlook is stronger than previously expected, with AI accelerator growth projected to reach the mid-40% range annually through 2029. While demand for high-performance computing (HPC) chips saw a slight slowdown sequentially, smartphone chip revenue was strong. TSMC's advanced manufacturing nodes are critical for major tech companies' AI strategies.

Barclays downgrades Marvell amid AI chip competition

Barclays analyst Tom O'Malley downgraded Marvell Technology (MRVL) stock from 'Overweight' to 'Equalweight,' setting a price target of $80.00. The downgrade is due to concerns about Marvell's 2025 data center targets and the increasing market share of Broadcom in the AI chip sector. While Marvell is advancing its AI strategy, the competition is intensifying. Barclays believes Broadcom is gaining ground, which could affect Marvell's future growth.

IBM stock drops amid slowing cloud growth and AI investment worries

IBM's stock fell over 6.5% as investors grew concerned about a slowdown in its cloud segment, particularly Red Hat's hybrid cloud growth, which decreased from 16% to 14%. Despite IBM raising its overall revenue outlook for the year, the market reacted negatively to the slower cloud adoption pace. Investors are closely watching how IBM's AI and cloud investments translate into faster revenue growth amidst cautious enterprise IT spending. While AI investments remain strategic, the market seeks clearer evidence of accelerated revenue from these initiatives.

Sources

• Ondas Holdings (ONDS): Evaluating Valuation After Major Investment in AI Defense and Strategic Drone Partnerships
• Record Earnings and AI Investments Could Be a Game Changer For Raymond James Financial (RJF)
• Is Gentex’s (GNTX) AI Warfighter Tech Partnership With Anduril Reshaping Its Investment Case?
• Stock-Split Watch: Is SoundHound AI (SOUN) Next?
• Prediction: This Will Be SoundHound AI's Stock Price in 2026
• Is Pegasystems (PEGA) the Best Overlooked AI Stock to Buy Now?
• DeepSeek dominates AI crypto trading challenge
• How the Launch of AI Identity Protection for Agentforce at Varonis (VRNS) Has Changed Its Investment Story
• Meta Investors Watch Zuckerberg Keep His Promise of Big AI Spending
• TSM Stock and the AI Bubble: 40%+ AI Accelerator Growth Fuels the Valuation Debate
• Barclays Downgrades Marvell (MRVL) as AI Chip Market Leans Toward Broadcom
• IBM Stock Fall Over 6.5% Amid Slowing Cloud Growth and AI Investment Concerns