Microsoft $76.4B Revenue, Apple $94B Revenue, Nvidia AI Market

The artificial intelligence sector continues to see significant investment and growth, with companies like Broadcom reporting substantial increases in AI chip sales. Broadcom's AI revenue reached $5.2 billion in its fiscal third quarter, and the company anticipates this segment will grow to $6.2 billion in the current quarter, projecting a 66% acceleration in AI chip sales. This optimism is fueled by securing over $10 billion in custom AI chip orders from a new major client, leading Broadcom to forecast a significant improvement in its fiscal 2026 AI revenue outlook. Meanwhile, tech giants are also making strides. Microsoft and Apple are attracting increased investor interest, with billionaire Ken Griffin's hedge fund substantially boosting its stakes in both companies during the second quarter. Microsoft's fiscal Q4 revenue climbed 18% to $76.4 billion, driven by its cloud and AI services, while Apple's fiscal Q3 revenue rose 10% to $94 billion. Salesforce, despite beating Q2 earnings expectations with revenue up 10% to $10.24 billion and strong growth in its AI offerings like Agentforce, saw its stock fall due to a weaker-than-expected third-quarter revenue outlook. Other companies are also focusing on AI: Marvell Technology's data center business, crucial for AI infrastructure, grew 69% to $1.49 billion, now representing 74% of its total revenue. The broader generative AI market is projected to reach $967.65 billion by 2032, with companies like Nvidia, Google, and Amazon also playing key roles in developing AI hardware and software. Amazon's stock forecast is brightened by AI analyst support, despite ongoing investments in AI impacting AWS margins. In emerging areas, AI servers are now being tokenized as real-world assets, with Aurora Optoelectronics issuing tokens backed by server assets. However, some AI companies face challenges; BigBear.ai is under scrutiny for its lower gross margins despite securing significant contracts. In the education sector, a UK startup, Edumentors, raised $2 million for its AI tutoring tool, Edu AI.

Key Takeaways

• Broadcom's AI revenue reached $5.2 billion in Q3, with projections for $6.2 billion in Q4, and secured over $10 billion in custom AI chip orders from a new client.
• Microsoft's fiscal Q4 revenue grew 18% to $76.4 billion, driven by cloud and AI services, while Apple's fiscal Q3 revenue increased 10% to $94 billion, attracting significant investor interest from Citadel Advisors.
• Salesforce reported Q2 revenue growth of 10% to $10.24 billion and strong adoption of its Agentforce AI platform, with annual recurring revenue from Data Cloud and AI exceeding $1.2 billion, but provided a weaker Q3 revenue outlook.
• Marvell Technology's data center revenue, vital for AI, surged 69% to $1.49 billion, comprising 74% of its total revenue.
• The generative AI market is projected to reach $967.65 billion by 2032, with key players including Nvidia, Microsoft, Apple, Google, and Amazon.
• Amazon's AWS margins are impacted by significant AI investments, though analysts remain optimistic about its stock performance.
• AI servers are now being tokenized as real-world assets, with Aurora Optoelectronics issuing tokens backed by server assets.
• BigBear.ai faces investor scrutiny over gross margins below 30% despite securing contracts like a $165 million U.S. Army deal.
• A UK startup, Edumentors, raised $2 million in seed funding for its AI tutoring tool, Edu AI.
• New options contracts for C3.ai Inc (AI) are available for the October 24th expiration date.

Broadcom AI chip sales surge 63%, expects 66% growth

Broadcom reported a 63% increase in revenue from AI chips and networking equipment, reaching $5.2 billion in its fiscal third quarter. This figure surpassed the company's earlier projection. CEO Hock Tan also anticipates that the AI business will generate $6.2 billion in the current quarter, projecting overall AI chip sales growth to accelerate to 66%. The company's stock saw a positive reaction to these strong results and optimistic future outlook.

Broadcom secures $10B AI chip order, revenue jumps 22%

Broadcom's stock rose after the company announced it secured $10 billion in custom AI chip orders from a new client. The chipmaker reported third-quarter revenue of $15.96 billion, a 22% increase year-over-year, and adjusted earnings per share of $1.69, beating analyst expectations. Broadcom expects fourth-quarter revenue to reach $17.4 billion. The company's AI revenue alone grew 63% to $5.2 billion in the third quarter, and CEO Hock Tan projects this segment will reach $6.2 billion in the current quarter.

Broadcom forecasts significant 2026 AI revenue growth with new major customer

Broadcom's AI revenue reached $5.2 billion in its fiscal third quarter, exceeding expectations. The company anticipates its AI revenue to reach $6.2 billion in the current quarter. CEO Hock Tan announced that Broadcom has secured over $10 billion in orders for its custom AI chips, known as XPUs, from a new major customer. This development leads Broadcom to expect a significant improvement in its fiscal 2026 AI revenue outlook. The company's infrastructure software business, including VMware, also saw a 43% rise in revenue.

Broadcom projects strong 2026 AI growth after landing new $10B customer

Broadcom expects its fiscal 2026 artificial intelligence revenue to improve significantly following the addition of a new customer that placed over $10 billion in AI infrastructure orders. CEO Hock Tan stated he remains committed to leading the company for at least five more years. In the third quarter, AI revenue grew 63% to $5.2 billion, and Broadcom anticipates AI semiconductor revenue to reach $6.2 billion in the fourth quarter. However, the company noted weakness in its non-AI semiconductor business.

Salesforce stock drops on weak Q3 guidance despite Q2 earnings beat

Salesforce's stock fell over 6% after the company provided a softer-than-expected revenue outlook for the third quarter. While second-quarter revenue rose 10% to $10.24 billion and earnings per share exceeded estimates, the Q3 guidance midpoint of $10.265 billion fell just below consensus. The company's AI efforts, including its Agentforce AI assistant, are showing early adoption with over 12,500 deals, but AI currently represents only about 3% of projected FY 2026 revenue. Shares are down nearly 30% year-to-date.

Salesforce stock falls despite strong AI growth and earnings beat

Salesforce reported second-quarter earnings that exceeded expectations, with revenue growing 10% year-over-year and net income up 32%. The company highlighted strong growth from its Agentforce AI platform, with over 12,500 deals closed since its launch. Annual recurring revenue from Data Cloud and AI grew 120% to over $1.2 billion. Despite these positive results and a slight increase in full-year guidance, Salesforce stock fell 4% in after-hours trading, extending its year-long decline.

Ken Griffin boosts stakes in Microsoft and Apple AI stocks

Billionaire Ken Griffin's hedge fund, Citadel Advisors, significantly increased its holdings in Microsoft and Apple during the second quarter. Microsoft reported strong revenue and earnings growth, driven by its cloud and AI services, with revenue up 18% to $76.4 billion in its fiscal Q4. Apple, despite facing challenges like potential tariffs and a less impactful AI launch, also saw increased investment. Griffin's fund increased its Microsoft stake by over 1,600% and its Apple stake by over 10,000%.

Ken Griffin increases Microsoft and Apple positions

Citadel Advisors, led by billionaire Ken Griffin, substantially increased its stakes in Microsoft and Apple during the second quarter. Microsoft's fiscal fourth-quarter revenue grew 18% year-over-year to $76.4 billion, with its cloud and AI segments showing strong performance. Apple's revenue increased 10% to $94 billion in its fiscal third quarter. Despite facing challenges, both companies are seen as attractive long-term investments with significant opportunities in the artificial intelligence market.

C3.ai options trading begins for October 24th expiration

New options contracts for C3.ai Inc (AI) are now available for the October 24th expiration date. Investors can consider a put contract at the $14.50 strike price, offering a potential cost basis of $14.00 if sold to open, or a call contract at the $17.50 strike price for a covered call strategy. The article details the potential returns and probabilities associated with these options, noting the implied volatility for the put contract is 98% and for the call contract is 90%.

UK AI tutor platform raises $2M; K-12 fundraising platform secures $10M

A London-based startup, Edumentors, has raised $2 million in seed funding to develop Edu AI, an artificial intelligence-powered tutoring tool. The platform aims to replicate a real teaching experience using features like whiteboards and visual AI analysis. The funding will also support Edumentors' existing human-to-human tutoring service, which has provided 100,000 lessons globally. Separately, the K-12 fundraising platform Boost My School raised $10 million to expand its team and platform features.

Top 10 Generative AI Stocks to Watch

The rise of OpenAI's ChatGPT has significantly boosted interest in generative AI stocks. The generative AI market is projected to grow to $967.65 billion by 2032. While OpenAI is private, several public companies offer exposure to this growing sector. The article highlights 10 major tech companies, including Nvidia, Microsoft, Apple, Alphabet, and Amazon, that are developing AI hardware, software, or integrating AI into their products and services.

Marvell Technology's AI focus drives strong Q2 results

Marvell Technology reported a 58% year-over-year revenue increase to $2 billion in its fiscal second quarter, largely driven by its data center business, which grew 69% to $1.49 billion. This segment now accounts for 74% of Marvell's total revenue, highlighting the company's strategic shift towards AI and cloud infrastructure. Adjusted earnings per share rose 123% to $0.67. Marvell has divested its automotive Ethernet business to concentrate on high-growth areas and expects data center revenue to increase 30% in the third quarter.

AI servers now backed by tokens in RWA tokenization

The tokenization of real-world assets (RWAs) has expanded to include AI servers, marking a new phase beyond renewable energy projects. Aurora Optoelectronics issued the first RWA tokens backed by server assets, valued in the millions of US dollars, with support from Ant Digital Technologies. This process uses AntChain to record AI server operational data on-chain, ensuring transparency and security. RWA tokenization is gaining traction globally, bridging traditional assets with blockchain finance.

BigBear.ai stock faces scrutiny over margins and growth

BigBear.ai, a company providing customized AI software solutions, is facing investor scrutiny due to its lower gross margins compared to typical software companies. While it has secured significant contracts, such as a $165 million U.S. Army deal, its custom development approach results in margins below 30%. Furthermore, the company has experienced turbulent revenue growth, with some quarters showing negative performance. Despite its position in the AI industry, its valuation appears high given its current financial profile.

Amazon stock forecast brightens with AI analyst support

Amazon's stock has received an 'Outperform' rating from TipRanks' AI Stock Analysis tool, joining a generally bullish outlook from Wall Street analysts. The company's second-quarter revenue reached $167.7 billion, exceeding estimates, with strong growth in AWS and Amazon Ads. However, AWS margins have declined due to significant AI investments, and Amazon faces competition in the online grocery market. Despite these challenges, analysts are optimistic about continued revenue expansion and potential stock upside.

Sources

• Broadcom Projects AI Chip Sales Growth Accelerating to 66%
• Broadcom earnings primer: AI chip demand and growth are key
• Broadcom posts Q3 top and bottom line beats with strong guidance for Q4 AI chip sales
• Broadcom sees strong AI growth for fiscal 2026 on new customer addition
• Salesforce drops despite Q2 beat, as guidance disappoints and AI investments are yet to bear fruit
• Investors still don't care about Salesforce's fast AI growth
• Billionaire Ken Griffin Is Loading Up on These 2 Artificial Intelligence (AI) Stocks That Have Increased 88,780% or More
• Billionaire Ken Griffin Is Loading Up on These 2 Artificial Intelligence (AI) Stocks That Have Increased 88,780% or More @themotleyfool #stocks $MSFT $AAPL $AMZN
• AI October 24th Options Begin Trading
• U.K. Startup Raises $2M to Build AI Tutoring Platform; K-12 Fundraising Platform Secures $10M in Funding
• 10 Generative AI Stocks to Watch as ChatGPT Soars
• Wall Street Thinks This Lesser-Known AI Stock Can Surge Nearly 50% From Here
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• Amazon Stock (AMZN) Forecast Brightens as AI Analyst Joins Wall Street Party