Microsoft's Stock Surges to $3.8T as Azure Grows 43% and Copilot Hits 30M Users

Key Takeaways

• Microsoft's stock rose from $349 to $513 as Azure grew 43% and Copilot reached 30 million users, though AI spending hit $35.8 billion in one quarter.
• Meta could build a public cloud business to profit from AI spending, and its Muse AI agent ranks number one on the App Store at 25 cents per task.
• SpaceX is seeking $40 billion to expand Nvidia-powered compute, and OpenAI chose Nvidia hardware for its Ultrafast AI model, reinforcing Nvidia's dominance.
• Amphenol grew revenue 55% in Q2 with 40% tied to AI, trading at a forward P/E of 33.1 and up 31% this year.
• Chen Tianqiao is investing up to $4 billion in AI through Apodex, targeting $1 billion in contracted revenue by June 2027 and an IPO by end of 2027.
• Myca raised $1.3 million to expand AI tools for agribusiness across eight countries, serving customers like Bayer and Olam Food Ingredients.
• Integrity added ACA plans to its AI-powered IntegrityCONNECT platform, letting agents quote and enroll clients directly within the system.
• arXiv now limits submissions to two papers per month after AI-generated research surged, with a record 40,363 submissions in September 2026.
• AI groups linked to OpenAI and Palantir spent $3.5 million supporting four Texas congressional candidates, raising concerns about industry political influence.
• OpenAI published a paper lowering the theoretical speed limit for matrix multiplication to below 2.258, though the finding will not speed up chatbots immediately.

Jim Cramer says Microsoft AI investment is paying off

Jim Cramer said Microsoft's AI spending is finally generating returns as data center investments start to produce revenue. He noted that concerns about Azure growth, Copilot adoption, and OpenAI ties were wrong. The stock rose from $349 in June to $513 with a $3.8 trillion valuation. Copilot now has 30 million users and growing. Microsoft Cloud gross margin fell to 65% while the company spent $35.8 billion on property and equipment in one quarter.

Analyst highlights Amphenol as diversified AI stock

Holly Mazzocca of Bartlett Wealth Management said Amphenol gives investors AI exposure without relying on one chip maker or cloud company. About 40% of Amphenol's revenue ties to AI and communications data growth, with the rest from automotive, industrial, and space technology. Revenue grew 55% in the second quarter and management guided third-quarter growth above 50%. The stock is up 31% this year and trades at a forward P/E of 33.1. Major funds like Egerton Capital increased their stakes significantly.

Is Microsoft's AI spending finally paying off?

Microsoft is up about 12% this year as investors question whether heavy AI data center spending will turn into sales. Azure grew 43% in the latest quarter, up from 39% before, and new capacity was used almost immediately. Office and Microsoft 365 seat growth stayed at 6% while consumer Microsoft 365 revenue grew 22%. However, bears worry AI spending takes too long to pay off and that AI agents could reduce the need for employee seats. Microsoft depends on OpenAI and faces risks from AI safety regulations. The stock trades at a forward P/E of 26.6.

Dan Niles sees new way for Meta to profit from AI

Dan Niles said Meta could build a public cloud business as a new way to profit from its AI spending. Google, Microsoft, and Amazon all rent cloud computing but Meta does not yet. Meta launched Muse, an AI agent that ranks number one on the App Store ahead of ChatGPT. About 3.6 billion people use at least one Meta app daily and revenue grew 28% last quarter. Meta's 2026 spending plan is so large that free cash flow is expected to fall sharply and not recover until at least fiscal 2028. Muse costs about 25 cents per task at launch.

Metcash expands AI-powered B2B partnership with Coveo

Metcash expanded its partnership with Coveo Solutions to add AI-powered conversational experiences to its B2B customer communications portal. The expansion builds on an existing deployment in Metcash's Sorted online B2B marketplace and is supported by consulting partner Publicis Sapient. The move is part of Metcash's push to deepen digital capabilities across wholesale and retail operations. Analysts note the AI upgrade is incremental rather than a major catalyst but supports efficiency and service quality. Investors must also consider risks from Hardware volumes and declining tobacco sales.

Viavi Solutions Expands Network Testing with AI Security Platform

Viavi Solutions expanded its partnership with Calnex Solutions to validate network performance for AI infrastructure, defense systems, and data centers. The company launched the CyberFlood CF50 platform, which handles encrypted traffic analysis, security testing, and AI application validation in one portable system. The collaboration aims to provide end-to-end testing across multiple sectors. Viavi operates in communications testing across defense, aerospace, rail, and first responder markets worldwide.

Nvidia Gains From $40 Billion AI Demand Backing

SpaceX is seeking $40 billion in new capital to expand its Nvidia-powered compute footprint for large-scale AI and space data projects, aiming for exclusive access to Nvidia chips. OpenAI also chose Nvidia hardware over Cerebras to run its new Ultrafast AI model, reinforcing Nvidia's dominance in large model training. These moves highlight Nvidia's role as a key infrastructure provider for AI. Investors are watching for concrete multi-year contracts and supply agreements to confirm the demand.

Chinese Gaming Billionaire Chen Tianqiao to Invest Up to $4B in AI

Chen Tianqiao, founder of Shanda, says he has already invested $2 billion of his own money in AI and may invest another $2 billion. He is shifting focus from China to the U.S. and Singapore, working on Apodex, a system for complex scientific problems like drug discovery. Chen targets $1 billion in contracted revenue by June 2027 and plans an IPO by end of 2027. His fortune is estimated at about $1.3 billion by Forbes.

Menlo Ventures' Deedy Das on Next Phase of AI Investment

Deedy Das of Menlo Ventures discussed where the next wave of AI investment will come from. He explored emerging opportunities in the AI ecosystem and how investors are evaluating the sector's future growth potential. The discussion focused on identifying new phases of investment in artificial intelligence startups and technology.

OpenAI Finds Faster Way to Multiply Matrices for AI

OpenAI published a paper proving that the theoretical speed limit for matrix multiplication is much lower than previously known, with omega below 2.258. This math operation underpins all modern AI, including ChatGPT, Claude, and Gemini. A second paper further reduced the bound to 2.25 using a new approach. The paper has not yet been peer reviewed and will not speed up chatbots immediately.

Myca secures $1.3M pre-seed to expand AI tools for agribusiness

Myca raised $1.3 million in pre-seed funding to expand its AI software for agribusiness field operations. The company plans to grow its engineering team and expand across Southeast Asia, Latin America, Africa, and India. Its product helps with field sales, crop surveys, procurement planning, and logistics tracking. Myca is already active in eight countries and serves customers including Bayer and Olam Food Ingredients.

Integrity adds ACA plans to AI-powered IntegrityCONNECT platform

Integrity, LLC announced that agents can now quote and enroll clients in Affordable Care Act plans directly within IntegrityCONNECT. The platform is an AI-powered tool for business growth and sales. This update lets agents access ACA enrollment from any carrier without leaving the system. The company says the change improves insurance processes for agents and clients.

arXiv limits paper submissions as AI-generated research surges

arXiv introduced new submission limits due to a sharp rise in papers driven by AI tools. The repository received a record 40,363 submissions in September 2026, nearly double the number from two years earlier. Starting October 1, authors can submit two papers per month and keep no more than three active submissions at a time. The policy aims to protect volunteer moderators and maintain research quality.

AI groups spent $3.5M backing Texas congressional candidates

Groups connected to AI companies like OpenAI and Palantir spent $3.5 million supporting four Texas congressional candidates in primaries. Super PACs linked to Leading the Future and Anthropic's Public First Action funded ads and mailers. The spending raised concerns about AI industry influence on politics and regulation. Of the four candidates backed, only De La Cruz remains in the running.

Sources

• Jim Cramer Says Microsoft’s (MSFT) AI Investment Is Finally Paying Off
• Analyst Points to a Diversified AI Stock Beyond the Chip Makers and Cloud Giants
• Is Microsoft’s (MSFT) AI Spending Finally Paying Off?
• Dan Niles Sees a New Way for Meta (META) to Cash In on AI Spending
• Is Metcash’s AI-Powered B2B Push Quietly Redefining Its Competitive Edge (ASX:MTS)?
• Viavi Solutions (VIAV) Expands Network Testing Reach With New AI Security Platform
• What Does Nvidia (NVDA) Gain From $40 Billion AI Demand Backing?
• Chinese gaming billionaire Chen Tianqiao ready to invest up to $4B in AI
• Menlo Ventures’ Deedy Das on Where The Next Phase of AI Investment Will Come From
• OpenAI Has Found A Far Faster Way To Multiply Matrices, The Math That Underpins All Of Modern AI
• Myca raises $1.3m pre-seed to put AI agents in charge of agribusiness field operations
• Integrity Announces ACA in IntegrityCONNECT Platform, Transforming Agents' AI-Empowering Sales Offering
• arXiv imposes submission limits amid surge in AI-generated papers
• AI groups spent $3.5M to boost these Texas congressional candidates