The artificial intelligence sector continues to see significant investment and varied market reactions, with companies reporting strong growth alongside ambitious future plans. EssilorLuxottica, for instance, reported robust holiday sales, driven notably by its Ray-Ban Meta and Oakley smart glasses. The company saw sales of its Meta AI glasses triple in 2025, reaching over 7 million units, a substantial increase from the 2 million sold in 2023 and 2024 combined, highlighting growing consumer adoption of wearable AI devices.
Meanwhile, infrastructure providers are also making headlines. Super Micro Computer Inc. announced record fiscal second-quarter sales of $12.7 billion, a 53% year-over-year increase, and raised its fiscal year 2026 revenue target to an impressive $40 billion. Despite this strong performance, the market showed caution regarding its current 6.4% gross margins. Vertiv Holdings Co, another crucial player in AI infrastructure with its cooling and power management solutions, saw its stock jump 24% after reporting strong fourth-quarter earnings that surpassed analyst expectations.
Major tech giants are also heavily investing in AI. Amazon plans to spend $200 billion on AI capital expenditures in 2026, a move that initially met with market doubt despite strong demand for its AI services like the Bedrock platform, which saw sales grow 60%. Amazon Web Services (AWS) also reported a 24% sales increase, its highest in 13 quarters. Beyond Nvidia, investors are looking at other AI opportunities, with Apple recommended for its privacy-focused AI initiatives, including Private Cloud Compute, and Celestica for its role in supplying high-performance servers for data centers.
European AI development is also gaining momentum, with French startup Mistral AI planning a €1.2 billion ($1.4 billion) investment in a new AI data center in Sweden. This strategic move aims to build independent AI capabilities in Europe. In the software space, AI inference startup Modal Labs is reportedly discussing new funding at a $2.5 billion valuation, while financial technology firm Altruist introduced an AI tool that automates personalized tax strategies, causing shifts in wealth management stocks. Private equity firms Thoma Bravo and Vista Equity are reassuring investors that AI will enhance, rather than replace, software solutions.
Key Takeaways
- EssilorLuxottica tripled sales of its Meta AI glasses in 2025, selling over 7 million units.
- Super Micro Computer Inc. reported record Q2 sales of $12.7 billion and set a $40 billion revenue target for FY2026.
- Amazon plans a $200 billion investment in AI capital expenditures for 2026, despite initial market skepticism.
- Amazon's Bedrock AI platform sales grew 60%, and AWS sales increased 24% in Q4 2025.
- Vertiv Holdings Co's stock rose 24% due to strong earnings and high demand for AI infrastructure solutions.
- Mistral AI is investing €1.2 billion ($1.4 billion) to build an AI data center in Sweden, its first outside France.
- Apple is recommended as an AI stock for its focus on privacy-focused AI, including Private Cloud Compute.
- AI inference startup Modal Labs is reportedly seeking funds at a $2.5 billion valuation.
- Altruist introduced an AI tool for wealth management that automates personalized tax strategies, impacting related stocks.
- Private equity firms Thoma Bravo and Vista Equity believe AI will improve software rather than replace it.
EssilorLuxottica sees strong growth from Meta glasses sales
EssilorLuxottica reported strong financial results for the holiday period, with revenues reaching €7.6 billion. The company's Ray-Ban Meta and Oakley smart glasses significantly boosted sales. CEO Francesco Milleri and Deputy CEO Paul Du Saillant expect continued solid revenue growth. For 2025, adjusted operating income increased by 6.8% to €4.5 billion. Sales in North America grew 24% in the fourth quarter, while Europe and Asia each saw over 10% growth.
EssilorLuxottica triples Meta AI glasses sales in 2025
EssilorLuxottica, the maker of Ray-Ban, announced a huge increase in its Meta AI glasses sales in 2025. The company sold over 7 million AI glasses last year, which is more than triple the 2 million units sold in 2023 and 2024 combined. This success includes smart glasses from both Ray-Ban and Oakley brands. EssilorLuxottica believes this shows that wearable AI devices are becoming very popular with consumers. The company has partnered with Meta on these devices since 2019.
Top AI stocks to buy beyond Nvidia
For investors who missed Nvidia's growth, Joey Frenette suggests two other AI stocks to consider. Celestica is a strong choice as it supplies essential equipment like high-performance servers for data centers. Its valuation is 44.1 times trailing price-to-earnings. Apple is also recommended for its focus on privacy-focused AI, including its Private Cloud Compute. Apple's stock trades at 35.2 times trailing price-to-earnings, making it a solid long-term AI pick.
Super Micro reports record sales but market is cautious
Super Micro Computer Inc. (SMCI) announced record results for its fiscal second quarter, with sales reaching $12.7 billion, a 53% increase from last year. The company also raised its revenue target for fiscal year 2026 to $40 billion. Despite this strong performance, the market's reaction was quiet, showing some doubt. Gross margins are currently 6.4% due to discounted contracts, which concerns investors. However, Super Micro expects its new Denali-based solutions to boost gross margins above 20% in the future. The stock trades at just 10 times earnings, suggesting potential for growth if the company meets its margin goals.
Mistral AI invests 1.2 billion euros in Sweden data center
French startup Mistral AI plans to invest €1.2 billion, or $1.4 billion, to build new AI infrastructure in Sweden. This AI data center will be located in Borlänge and developed with infrastructure partner Holmen. This marks Mistral's first data center investment outside France. CEO Arthur Mensch stated this move helps build independent AI capabilities in Europe. The company aims to become a leading AI supplier for European governments and businesses.
Thoma Bravo and Vista calm AI fears for software
Private equity firms Thoma Bravo and Vista Equity are reassuring investors about the impact of AI on their software companies. Thoma Bravo plans to send a letter to express confidence in its portfolio. Vista Equity CEO Robert Smith sent an email to clients and will host a webinar on February 19. Smith believes AI will improve software rather than replace it, noting that most of their companies are not losing clients to AI alternatives. He compared the current market uncertainty to the early days of cloud adoption in 2014.
Vertiv stock jumps 24 percent after strong earnings
Vertiv Holdings Co (VRT) shares rose sharply by 24% in premarket trading. The company reported strong fourth-quarter earnings that surpassed analyst predictions. Vertiv's earnings per share reached $1.36, beating the $1.29 estimate, and revenue hit $2.9 billion, matching expectations. This strong performance comes from high demand for its cooling and power management solutions, which are vital for AI infrastructure. Vertiv's positive outlook and guidance for upcoming quarters further boosted investor confidence.
Modal Labs AI startup may raise funds at 2.5 billion valuation
AI inference startup Modal Labs is reportedly discussing raising new funds, potentially at a $2.5 billion valuation. General Catalyst is in talks to lead this investment round. Sources indicate Modal's yearly revenue run rate is about $50 million, though CEO Erik Bernhardsson denied actively fundraising. Modal Labs, founded in 2021 by Erik Bernhardsson, specializes in making AI models run more efficiently. This process, called inference, helps reduce computing costs and speed up AI responses.
Altruist AI tool disrupts wealth management stocks
Wealth-management stocks dropped after financial technology firm Altruist introduced a new AI tool. This tool can create personalized tax strategies by reading financial documents automatically. It removes the need for manual data entry, which caused concern in the market. Shares of companies like Raymond James were affected by this new AI disruption.
Amazon's 200 billion AI investment faces market doubt
Amazon reported strong growth in the fourth quarter of 2025 but missed earnings estimates. The market reacted negatively to Amazon's plan to spend $200 billion on AI capital expenditures in 2026. Despite this, Amazon sees huge demand for its AI services, with its Bedrock platform sales growing 60% in the quarter. Amazon Web Services (AWS) also saw a 24% sales increase, its highest in 13 quarters. CEO Andy Jassy stated they are monetizing new capacity as quickly as it is installed, suggesting the investment could pay off significantly.
Sources
- EssilorLuxottica Growth Propelled by Boom in Meta Glasses Sales
- Ray-Ban maker EssilorLuxottica says it more than tripled Meta AI glasses sales in 2025
- Missed Out on Nvidia? My Best AI Stocks to Buy and Hold
- Super Micro: Market Still Showing No Love For A Big AI Boost
- Mistral Invests €1.2 Billion in Swedish AI Data Center Buildout
- Thoma Bravo, Vista Seek to Calm Fears Over AI Threat to Software
- Vertiv stock soars 24%. Earnings shake off concerns the AI trade is losing steam.
- Exclusive: AI inference startup Modal Labs in talks to raise at $2.5B valuation, sources say
- Heard on the Street Tuesday Recap: More AI Disruption
- The Market Sours on Amazon's Eye-Popping $200 Billion Investment in Artificial Intelligence (AI). Here's Why It Could Pay Off.
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