Nvidia and AMD recover as Microsoft shifts Copilot sales

Key Takeaways

• AI and chip stocks, including Nvidia and AMD, initially fell due to Trump's Iran threat but largely recovered, with some ending with gains.
• Micron Technology is a top pick for AI growth, with Cantor Fitzgerald maintaining a Buy rating and a $700 price target due to strong HBM and DRAM demand.
• Applied Materials projects over 20% growth in its semiconductor equipment business for 2026, driven by AI demand for advanced logic and high-bandwidth memory.
• Microsoft is shifting its sales strategy to prioritize direct sales of Copilot to boost revenue, having met ambitious sales targets last quarter.
• Apple plans to integrate third-party AI platforms into iOS 17, acknowledging Siri's current competitiveness and aiming for enhanced user experience and potential revenue.
• Apple is also focusing its future AI strategy on device-based AI, aiming to lead in capabilities on products like the iPhone and MacBook.
• The secondhand clothing market is projected to reach $289 billion this year, with AI playing a crucial role in improving the shopping experience on platforms like Vinted and ThredUp.
• Zoom is successfully integrating and monetizing AI features into its products, leveraging meeting data for workflows and offering new models.
• Kenya is actively positioning itself as Africa's leading AI investment hub, focusing on renewable energy-powered compute infrastructure and local AI models.
• Cybersecurity stocks like CrowdStrike, Palo Alto Networks, and Zscaler are well-positioned for growth as AI increases the sophistication of cyber threats.

AI and chip stocks fall amid Trump's Iran threat

AI and chip stocks experienced a significant drop in premarket trading on Thursday. This decline followed U.S. President Donald Trump's announcement of strong actions against Iran within the next few weeks. The threat of conflict caused oil prices to surge due to worries about regional supplies. Major companies like Nvidia, AMD, and Broadcom saw notable drops in their stock values.

Nasdaq recovers, ending flat after Trump's speech impacts chip and AI stocks

The Nasdaq Composite Index finished the day nearly unchanged after chip and AI stocks recovered from earlier losses. Former President Donald Trump's speech eased some market concerns, leading to a rebound in these technology sectors. Investors showed renewed interest in growth stocks as the tech-heavy Nasdaq pulled back from its lows. This recovery indicates strong investor confidence in chip and AI companies despite global uncertainties.

AI chip stocks rebound after Trump's Iran speech

AI and chip stocks recovered late Thursday, helping major market averages erase earlier losses. This rebound occurred after markets processed U.S. President Donald Trump's speech regarding the Iran situation. While AI chip stocks like Nvidia and AMD saw gains, oil futures surged. Major equity averages like the S&P 500 and Dow Jones Industrial Average ended the day lower.

Chip and AI stocks recover following Trump's Iran war address

Chip and AI-related stocks saw a late recovery on Thursday as markets absorbed U.S. President Donald Trump's speech about the Iran war. Major Wall Street averages managed to recover from earlier losses. Stocks like Nvidia and AMD, which initially fell after Trump's remarks, ended up posting gains. However, oil futures surged, and broader market indexes like the S&P 500 and Dow Jones ended in the red.

Analyst names Micron stock a top pick for AI growth

Cantor Fitzgerald has reiterated its Buy rating and $700 price target for Micron Technology (MU). The analyst believes strong, AI-driven demand for memory products like HBM and DRAM will fuel long-term growth, predicting a multi-year upcycle. Concerns about falling DRAM prices and overshipping are seen as overstated and do not significantly impact Micron's long-term outlook. The company is well-positioned to benefit from the increasing need for memory in AI workloads.

Micron stock rebounds as analysts highlight AI growth potential

Micron Technology (MU) stock is showing resilience after a recent dip, with analysts maintaining a positive outlook due to AI-driven growth. Strong demand for High Bandwidth Memory (HBM) and long-term supply agreements are key factors supporting the company's future. Analysts have dismissed recent stock volatility, emphasizing that Micron's underlying growth trends remain strong. The company is expected to benefit significantly from the increasing investment in AI infrastructure and data centers.

Microsoft shifts AI sales to focus on Copilot

Microsoft is changing its sales strategy to prioritize direct sales of its AI product, Copilot. Previously, Copilot was often included for free with other products. This shift follows investor feedback and aims to boost revenue from the AI tool. Judson Althoff, head of Microsoft's commercial sector, reported that the company met ambitious sales targets for Copilot in the last quarter. This move is expected to capitalize on the growing demand for AI solutions.

Microsoft changes AI sales approach to boost Copilot revenue

Microsoft is adjusting its sales strategy to focus more on selling its AI product, Copilot, directly to customers. This change comes after feedback from Wall Street and aims to increase revenue from the AI tool. Judson Althoff, CEO of Microsoft's commercial business, confirmed that the company achieved significant Copilot sales goals last quarter. Previously, only a small percentage of customers paid for Copilot, indicating a strong potential for growth with this new focused strategy.

Secondhand clothing sales to reach $289 billion with AI help

Sales of secondhand clothing are projected to reach $289 billion this year, growing twice as fast as the overall clothing market. Platforms like Vinted and ThredUp are using AI to help shoppers find items more easily. This growth is driven by younger generations like Gen Z and millennials. While the resale market is booming, some platforms like ThredUp and Depop have faced profitability challenges. AI is crucial for cataloging items and improving the shopping experience.

Apple's AI strategy pivots to embrace third-party tools

Apple is reportedly planning to integrate third-party AI platforms into its upcoming iOS 17 release, a significant shift from its previous strategy. This move acknowledges that Apple's in-house AI, Siri, may not be competitive enough in the near future. By allowing integration with rivals like ChatGPT, Apple aims to enhance user experience and potentially generate revenue through commissions on paid AI services. This strategy could also boost iPhone sales by offering users flexibility in their AI choices.

Apple bets on device-based AI future

Apple is focusing its future AI strategy on consumer hardware, positioning itself to benefit if AI technology shifts from the cloud to devices. While currently relying on outside AI models, the company aims to lead in AI capabilities on products like the iPhone and MacBook. This approach suggests Apple sees a significant opportunity in integrating advanced AI directly into its hardware ecosystem.

BNP sees impressive AI progress and monetization at Zoom

BNP Paribas reports that Zoom is making significant strides in integrating artificial intelligence into its products and successfully monetizing these features. The bank notes that Zoom is incorporating AI into existing plans and offering new standalone and usage-based models. This strategy helps Zoom leverage data from meetings to create workflows and activities. Investors are looking for clarity on how AI growth balances with challenges in Zoom's core business.

Kenya aims to be Africa's AI investment hub

Kenya is actively positioning itself as Africa's leading hub for AI investment and innovation through its National AI Strategy and global partnerships. A recent roundtable at the Kenya Investment Conference brought together 50 leaders to outline a vision for Kenya's AI ecosystem. Key investment areas include renewable energy-powered compute infrastructure, data systems, local AI models, and scalable applications. Kenya's abundant renewable energy offers a competitive advantage for sustainable AI development.

Top cybersecurity stocks to buy as AI increases threats

As AI makes cyber threats more sophisticated, cybersecurity remains a critical investment for businesses. CrowdStrike Holdings leads with its AI-powered Falcon platform, expanding its services and market reach. Palo Alto Networks is growing through platformization and acquisitions, focusing on identity security for the AI era. Zscaler specializes in cloud-native zero-trust security, a crucial area as AI agents present new vulnerabilities. These companies are well-positioned to benefit from the increasing importance of cybersecurity.

Applied Materials earnings beat, AI demand boosts outlook

Applied Materials reported strong earnings that surpassed expectations and issued optimistic future guidance, projecting over 20% growth in its semiconductor equipment business for 2026. The company also settled a U.S. Department of Commerce investigation, removing regulatory uncertainty. These developments highlight the significant impact of AI-driven demand for advanced logic and high-bandwidth memory, reinforcing Applied Materials' central role in the semiconductor supply chain. Customers are securing equipment capacity years in advance due to this AI infrastructure buildout.

Sources

• AI, chip stocks tumble as Trump plans to strike Iran hard; equity futures fall
• Nasdaq rebounds to end flat as chip, AI-related stocks recover after Trump's speech
• AI, chip stocks tumble as Trump plans to strike Iran hard
• AI, chip stocks recover after Trump's address on Iran war
• Top Analyst Calls Micron Stock (MU) a “Top Pick,” Sees Multi-Year AI Upside
• Micron Stock (MU) Defies the Recent Dip as Analysts Double Down on AI Upside
• Microsoft (MSFT) Revises AI Sales Approach, Emphasizes Copilot Sales
• Microsoft (MSFT) Alters AI Sales Strategy to Boost Copilot Revenue
• Secondhand clothes sales forecast to hit $289bn as AI helps shoppers find deals
• Apple's AI Strategy Is Pivoting. Here's Why That Could Be Great News for the Stock.
• Apple at 50 is betting its AI future on the device
• Zoom showing 'impressive progress' putting AI into products and monetizing it: BNP
• Kenya’s Bold Leap Towards Becoming Africa’s AI Investment Powerhouse
• 3 Growth Stocks to Buy as AI Makes Cybersecurity More Important Than Ever
• Should Blockbuster Earnings, AI Demand and Probe Settlement Require Action From Applied Materials (AMAT) Investors?