Meta delays Llama 3 as Google advances Gemini

Key Takeaways

• Nvidia sold its entire $177 million stake in AI data center builder Applied Digital in late 2025, citing customer concentration with CoreWeave.
• Meta Platforms delayed its Llama 3 AI model release due to performance and safety concerns, potentially benefiting Google's Gemini models.
• Analysts predict Palantir Technologies and Upstart Holdings stocks could fall significantly, by up to 68% and 28% respectively, due to valuation and market concerns.
• Oracle's cloud infrastructure revenue grew 84% year-over-year to $4.9 billion in fiscal 2026 Q3, with remaining performance obligations reaching $553 billion from AI contracts.
• Microsoft maintains a strong AI outlook, with Jefferies reaffirming a Buy rating and $675 price target, driven by Azure and Copilot.
• An analyst warns that major tech companies like Alphabet, Microsoft, Meta, and Amazon may be underreporting AI capital expenditures, projecting $650 billion in AI capex for 2026.
• Li Auto is pivoting to AI, dedicating half of its 11.3 billion yuan R&D budget to the technology after an operating loss in 2025.
• Sandisk, a NAND flash storage provider for AI, saw its stock increase over 1,600% in the past year, with its data center division growing 64% quarter over quarter.
• Synopsys integrated Ansys' simulation capabilities to offer AI-powered engineering workflows for complex AI chip design, serving customers like NVIDIA.
• Rising energy costs from oil and natural gas prices are impacting AI data centers, creating an opportunity for nuclear power solutions from companies like Oklo and NuScale Power.

Nvidia Sells Applied Digital Stock; Is It a Buy?

Nvidia sold its entire stake in Applied Digital, an AI data center builder, for about $177 million in late 2025. Applied Digital builds and leases data centers, pivoting to AI markets in 2022 and launching its own AI infrastructure service in 2023. Despite impressive revenue growth, the company is unprofitable and heavily reliant on a single major customer, CoreWeave. Nvidia's sale might be due to this customer concentration and its existing investment in CoreWeave. However, Applied Digital has significant future lease contracts, suggesting potential for future profitability as the data center market expands.

Analysts Warn Palantir and Upstart AI Stocks Could Plummet

Analysts predict that popular AI stocks Palantir Technologies and Upstart Holdings could fall significantly, by up to 68% and 28% respectively. Palantir's AI platforms, Gotham and Foundry, have no large-scale competitors, but concerns exist about scaling its Foundry service and its high valuation. Upstart's AI lending marketplace automates loan vetting, but analysts believe it may struggle with economic cycles and lower margins from new loan types. PwC estimates AI could add $15.7 trillion to the global economy by 2030, but these specific stocks face potential downturns.

Oracle's Strong Cloud Growth Boosts AI Investor Confidence

Oracle has delivered positive news for AI investors, showing strong growth in its cloud infrastructure segment. The company's fiscal 2026 Q3 results revealed an 84% year-over-year increase in cloud infrastructure revenue, reaching $4.9 billion. Oracle also raised its fiscal 2027 revenue guidance to $90 billion and saw its remaining performance obligations (RPO) jump to $553 billion, largely due to AI contracts. Despite past concerns about spending and reliance on specific customers, Oracle's performance suggests its AI investments are paying off, potentially benefiting the broader AI stock market.

Nvidia Sells Applied Digital Stock; Is It a Buy?

Nvidia sold its entire stake in Applied Digital, an AI data center builder, for about $177 million in late 2025. Applied Digital builds and leases data centers, pivoting to AI markets in 2022 and launching its own AI infrastructure service in 2023. Despite impressive revenue growth, the company is unprofitable and heavily reliant on a single major customer, CoreWeave. Nvidia's sale might be due to this customer concentration and its existing investment in CoreWeave. However, Applied Digital has significant future lease contracts, suggesting potential for future profitability as the data center market expands.

Nvidia Sells Applied Digital Stock; Is It a Buy?

Nvidia sold its entire stake in Applied Digital, an AI data center builder, for about $177 million in late 2025. Applied Digital builds and leases data centers, pivoting to AI markets in 2022 and launching its own AI infrastructure service in 2023. Despite impressive revenue growth, the company is unprofitable and heavily reliant on a single major customer, CoreWeave. Nvidia's sale might be due to this customer concentration and its existing investment in CoreWeave. However, Applied Digital has significant future lease contracts, suggesting potential for future profitability as the data center market expands.

Meta Delays AI Model; Google May Gain Advantage

Meta Platforms is reportedly delaying the release of its next artificial intelligence model, Llama 3, due to concerns about its performance and safety. This delay could give rivals like Google, with its advancing Gemini models, a significant advantage in the competitive AI market. Meta has been a leader in AI research, but faces increasing competition. The company's stock has been volatile amid its AI investments and metaverse strategy. Meta's ability to compete effectively in AI is crucial for its long-term success.

Meta Delays New AI Model; Google May Gain Advantage

Meta Platforms is reportedly delaying the release of its next artificial intelligence model due to concerns about its performance and safety. This delay could give rivals like Google an advantage in the competitive AI market. Meta has been a leader in AI research, but faces increasing competition. The company's stock has been volatile amid its AI investments and metaverse strategy. Meta's ability to compete effectively in AI is crucial for its long-term success.

AI Software Sell-Off Creates Buying Opportunities in Figma, Uber, Trade Desk

Despite a recent sell-off in AI software stocks, opportunities exist in Figma, Uber Technologies, and The Trade Desk. Figma's collaborative design tool, enhanced by AI, saw its stock rise after a strong 2025 earnings report, though it reported a net loss. Uber's platform benefits from AI in its ride-sharing and autonomous driving ventures, with revenue and trips increasing in 2025. The Trade Desk, an ad-buying platform, experienced a significant stock drop but shows potential for recovery. These companies are adapting to the growing prevalence of AI.

3 Under-the-Radar AI Stocks: Weave, Evolv, Pagaya

Three lesser-known companies are leveraging artificial intelligence for significant growth. Weave Communications uses AI for automated receptionists in healthcare, handling calls and scheduling. Evolv Technologies employs AI-driven security screening systems that quickly detect weapons. Pagaya Technologies utilizes AI to assess credit risk, connecting lenders with institutional investors. Weave reported $239 million in revenue for 2025 and is expanding its market, while Evolv saw revenue surge 57% in Q3 2025. Pagaya processes a trillion dollars in loan applications annually, improving its AI models with more data.

Jefferies Reaffirms Microsoft Buy Rating on AI Strength

Jefferies analyst Brent Thill maintains a Buy rating on Microsoft Corporation with a $675 price target, citing the company's strong performance in artificial intelligence. Thill highlights Microsoft's Azure cloud platform and Copilot AI assistant as key drivers for sustained revenue growth and market share gains. The positive outlook suggests Jefferies expects Microsoft's stock to outperform the market, with significant upside potential from its current price. Investors are closely monitoring Microsoft's AI strategy and its financial impact.

Li Auto Pivots to AI After Sales Slump and Operating Loss

Li Auto Inc. reported an operating loss of 520 million yuan in 2025, reversing two years of profitability, as vehicle sales and revenue declined due to intense competition and issues with its electric vehicle push. The company is now dedicating half of its 11.3 billion yuan R&D budget to artificial intelligence. Li Auto plans to launch new models, increase exports, and heavily invest in AI for 2026, projecting over 20% sales growth. This strategic shift follows setbacks like the controversial crash-test video of its i8 model and a pivot to becoming an embodied intelligence firm.

Rising Oil Prices Impact AI Data Centers; Nuclear Power Offers Solution

Geopolitical tensions have caused oil prices to surge, impacting the energy costs for AI data centers which still heavily rely on fossil fuels. Natural gas prices have also increased, adding to the volatility. This situation presents an opportunity for companies developing smaller, modular nuclear reactors like Oklo and NuScale Power. These nuclear solutions can provide a clean, reliable, and price-stable power supply for data centers, mitigating the risks associated with fluctuating fossil fuel prices and supporting the expansion of AI infrastructure.

Synopsys Integrates Ansys for AI Chip Design

Synopsys has launched integrated solutions combining its design platforms with Ansys' simulation capabilities, focusing on complex AI and multi-die architectures. This move, highlighted at Converge 2026, introduces AI-powered engineering workflows and reflects a strategic shift post-Ansys acquisition. The new platforms aim to help chip developers manage power, thermal, and reliability constraints. This integration positions Synopsys to play a central role in the design of next-generation AI hardware, offering a more complete solution from architecture to validation for customers like NVIDIA, Intel, and Qualcomm.

Sandisk AI Storage Stock Poised for Growth

Sandisk, a specialist in NAND flash storage crucial for AI data stacks, has seen its stock soar over 1,600% in the past year. Hyperscalers' increasing investments in AI infrastructure are driving demand for memory chips alongside GPUs. While Sandisk's data center division is still developing, it grew 64% quarter over quarter. Analysts predict earnings will double in two years, supported by strong demand and limited competition, suggesting significant valuation expansion is possible by the end of 2026.

Hidden Costs Could Sink AI Stocks, Analyst Warns

An analyst warns that some major tech companies are using accounting tricks to hide massive spending on artificial intelligence, potentially sinking their stocks. While media reports suggest companies like Alphabet, Microsoft, Meta, and Amazon had a combined $146 billion in Free Cash Flow (FCF) burn in 2025, the analyst's calculation reveals a much higher figure due to hidden capital expenditures. These companies are guiding for $650 billion in AI capital expenditures in 2026, and some may lack the funds to maintain this pace without diluting investors.

Australian Funds Focus on US Investments Amid AI Growth

Executives from Australian superannuation funds are reaffirming their focus on investing in the United States. This strategy is driven by expanding opportunities within the artificial intelligence sector. The funds are looking to capitalize on the growth and innovation occurring in the U.S. AI market.

Sources

• Nvidia Just Dumped This AI Stock, but Here's Why That Might Be a Buying Opportunity
• 2 of the Most Sought-After AI Stocks Can Plunge Up to 68%, According to Select Wall Street Analysts
• Oracle Just Delivered Incredible News for Artificial Intelligence (AI) Investors
• Nvidia Just Dumped This AI Stock, but Here's Why That Might Be a Buying Opportunity
• Nvidia Just Dumped This AI Stock, but Here's Why That Might Be a Buying Opportunity
• Meta Is Falling Behind in AI Models. Its Loss Could Be Google’s Gain, Report Says.
• Meta Delays New AI Model. Its Loss Could Be Google’s Gain.
• The Artificial Intelligence (AI) Software Sell-Off Created a Rare Buying Opportunity. Here Are 3 Stocks to Grab in 2026.
• 3 Under-the-Radar Artificial Intelligence (AI) Stocks With Explosive Potential
• Jefferies Reaffirms Buy Rating on Microsoft Amid AI Strength
• Li Auto Turns to AI After Sales Slump Pushes It Back Into the Red
• The Iran Conflict Briefly Sent Oil Past $115. Here's 1 Way It's Quietly Reshaping the AI Trade.
• Synopsys Ansys Launch Puts AI Era Chip Design At The Center
• Prediction: This Under-the-Radar Artificial Intelligence (AI) Stock Could Be a Multibagger by the End of 2026
• The Hidden $500+ Billion Accounting Trick That Could Sink AI Stocks
• Australian super executives reaffirm U.S. investment focus as AI opportunities expand