Nvidia Backs Firmus $325 Million While Google Leads Consumer AI

The artificial intelligence sector continues to buzz with significant investment, strong earnings, and strategic positioning across various tech giants and startups. Australian AI company Firmus recently secured approximately $325 million in funding, backed by Nvidia, to accelerate its Project Southgate initiative. This capital infusion aims to expand AI data centers and energy deals across Australia, with a goal to provide up to 1.6 gigawatts of AI infrastructure capacity by 2028, working alongside partners like CDC Data Centres. Meanwhile, established players are also seeing substantial gains from the AI boom. Cisco reported robust first-quarter earnings, with total revenue climbing 8% to $14.9 billion, largely driven by high demand for AI infrastructure and campus networking. The company anticipates generating around $3 billion in AI infrastructure revenue from hyperscalers by fiscal year 2026. Tencent also posted strong third-quarter results for 2025, with revenue reaching $27.1 billion, attributing growth in games, marketing, and fintech services to its significant AI investments, including its advanced HunYuan foundation model. In the investment world, AI tools are proving their worth by helping investors identify successful stocks even during market downturns, with some AI-picked stocks showing impressive gains. Wall Street investors are demonstrating renewed confidence in AI stocks, including Nvidia, as the Nasdaq Composite recovered and Nvidia's stock saw positive movement after a recent dip. This bullish sentiment extends to companies like BigBear.ai Holdings, which is experiencing strong investor interest in its stock options, reflecting optimism for its AI-powered decision intelligence solutions. However, not all AI ventures are without risk. Investment expert Dan Niles from Niles Investment Management cautions that companies heavily reliant on debt for their AI investments might struggle, specifically expressing doubts about OpenAI's ability to meet its ambitious financial targets given its current revenue and projected losses. Niles suggests Google is well-positioned to lead in consumer AI due to its strong cash flow, while Microsoft and Oracle are better suited for corporate AI solutions. Interestingly, while Nvidia is a prominent name, Broadcom is quietly dominating the custom AI accelerator market, holding an estimated 75% share with its application-specific integrated circuits (ASICs). These custom chips are in high demand from major tech companies like Google and Meta Platforms, with experts predicting nearly $200 billion in AI infrastructure spending by 2027, further solidifying Broadcom's strategic importance.

Key Takeaways

• Firmus, an Australian AI company backed by Nvidia, raised approximately $325 million to expand its AI data center infrastructure across Australia, aiming for 1.6 gigawatts of capacity by 2028.
• Cisco reported an 8% increase in Q1 revenue to $14.9 billion, driven by strong demand for AI infrastructure, and expects $3 billion in AI infrastructure revenue from hyperscalers by fiscal year 2026.
• Tencent's Q3 2025 revenue reached $27.1 billion, with AI investments significantly contributing to growth in games, marketing, and fintech services, showcasing its HunYuan foundation model.
• Baidu received a stock upgrade from Deutsche Bank to "Buy" with a $160 price target, based on the strong growth potential of its AI cloud and Apollo Go autonomous driving services.
• AI tools are effectively helping investors pick winning stocks during market downturns, with some AI-selected stocks demonstrating gains of up to 48%.
• Wall Street investors are showing renewed confidence in AI stocks, including Nvidia, following a market dip, with Nvidia's stock turning positive.
• Broadcom holds an estimated 75% of the custom AI accelerator market with its ASICs, supplying major tech companies like Google and Meta Platforms.
• Investment expert Dan Niles warns that not all AI companies will succeed, particularly those relying on debt, expressing skepticism about OpenAI's financial projections.
• Niles predicts Google will lead in consumer AI due to its strong cash flow, while Microsoft and Oracle are best positioned for corporate AI solutions.
• BigBear.ai Holdings is seeing significant bullish interest in its stock options, with large investors targeting a price range of $1.0 to $15.0 for its AI-powered decision intelligence solutions.

Firmus raises $325 million for Australian AI infrastructure

Firmus, an Australian AI company, announced on Friday it will raise A$500 million, about $324.90 million. This money will help speed up Project Southgate, their plan to build AI infrastructure. The funds will be used to expand data centers and energy deals across Australia. Co-CEO Tim Rosenfeld stated this funding helps meet the growing demand for AI infrastructure quickly and cost-effectively. Firmus is working with CDC Data Centres and Nvidia on this project.

Nvidia backed Firmus raises $327 million for AI data centers

Firmus, an Australian startup backed by Nvidia, raised $327 million to expand its AI data centers. This funding will help develop sites, deploy infrastructure, and secure energy deals in locations like Perth, Sydney, and Tasmania. The company aims to provide up to 1.6 gigawatts of AI infrastructure capacity by 2028. Existing investors participated in this new funding round. Firmus is rapidly expanding to power popular AI services.

Cisco sees strong Q1 growth from AI networking demand

Cisco reported strong first-quarter earnings with $14.9 billion in total revenue, an 8% increase from last year. CEO Chuck Robbins noted that high demand for AI infrastructure and campus networking drove this growth. Product revenue climbed 10%, and services revenue rose 2%. Hyperscaler customers added $1.3 billion in AI infrastructure orders during the quarter. Cisco expects to earn about $3 billion in AI infrastructure revenue from hyperscalers in fiscal year 2026. The company is also seeing success with its Silicon One systems and pluggable optics.

Tencent reports $27 billion Q3 revenue driven by games and AI

Tencent announced strong third-quarter results for 2025, reaching $27.1 billion in revenue. The company's non-IFRS net profit grew 18% year-over-year to $9.9 billion. CEO Ma Huateng stated that games, marketing, and fintech services, along with AI investments, fueled this growth. Tencent's AI efforts are improving ad targeting and game engagement, and its HunYuan foundation model shows leading image and 3D generation. Gaming revenue increased significantly, with domestic games up 15% and international games up 43%. The company also saw strong growth in marketing services due to AI-powered ad targeting.

AI tools pick winning stocks during market downturns

Artificial intelligence tools are helping investors find successful stocks even when the market is falling. These AI systems can analyze huge amounts of data to find patterns and make predictions that humans might miss. Recently, stocks picked by AI have shown impressive gains, with some rising by 48%, 37%, and over 22%. This technology helps investors make smarter decisions and manage risks better in today's tough economic times.

Baidu stock upgraded due to strong AI cloud and Apollo Go

Baidu, Inc. received a major stock upgrade from Deutsche Bank on November 7, moving from "Hold" to "Buy." The bank raised its price target to $160, seeing a potential 35% increase. Analysts believe Baidu is well-positioned for the AI revolution, especially with its AI cloud and Apollo Go autonomous driving services. They expect Baidu's AI cloud revenue to grow 30% each year for the next five years. Apollo Go is also set for big growth as it becomes more widely used. Baidu's stock has already risen 15% this year.

Wall Street buys Nvidia and other AI stocks after dip

Wall Street investors are buying shares of Nvidia and other AI companies after a recent market dip. The Nasdaq Composite index recovered to positive territory, marking its biggest turnaround from an intraday low since April 7. Nvidia's stock, a key AI player, turned positive and rose 0.5% during trading. While the S&P 500 and Dow were still down, this shows confidence in AI stocks among some investors.

BigBear.ai Holdings sees bullish options trading

Large investors are showing a strong interest in BigBear.ai Holdings stock options, with many taking a bullish stance. Options trading data shows 42% of investors made bullish trades, while 35% were bearish. The total value of call options, which bet on a price increase, was much higher than put options. Experts predict the stock could reach $8.0, and large investors are targeting a price range of $1.0 to $15.0. BigBear.ai provides AI-powered decision intelligence solutions for supply chains, autonomous systems, and cybersecurity.

Dan Niles warns AI companies relying on debt face risks

Dan Niles, an investment expert from Niles Investment Management, warned about the future of some AI companies. He believes that not all companies in the artificial intelligence race will succeed, especially those that depend heavily on debt and future earnings to fund their large AI investments. Niles specifically doubts OpenAI can meet its huge financial goals given its current revenue and expected losses. He predicts Google will lead in consumer AI because of its strong cash flow, while Microsoft and Oracle are best for corporate AI.

Broadcom leads custom AI chip market not Nvidia

Broadcom is a top AI semiconductor stock, holding an estimated 75% of the custom AI accelerator market. While Nvidia is well-known, Broadcom is quietly benefiting from the AI revolution through its custom application-specific integrated circuits, or ASICs. These chips are designed for specific AI tasks and are in high demand from major tech companies like Google and Meta Platforms. Broadcom also recently secured a new large hyperscaler customer. Experts predict big tech companies will spend nearly $200 billion on AI infrastructure by 2027, positioning Broadcom for continued growth.

Sources

• Australian AI company Firmus to raise $325 million to accelerate AI infrastructure rollout
• Nvidia-Backed Firmus Raises $327 Million for AI Data Center Push
• AI networking demand fueled Cisco’s upbeat Q1 financials
• Tencent Reports Strong Q3 Growth, Hits $27 Billion in Revenue Driven by Gaming, AI Investments
• +48%, +37%, 22%+ - These AI-picked names are rallying even as the market tanks
• Baidu (BIDU) Gets Major Upgrade as Analysts See Strength in AI Cloud and Apollo Go
• Wall Street Is Buying the Dip in Nvidia and Other AI Stocks
• BigBear.ai Hldgs Options Trading: A Deep Dive into Market Sentiment
• Rate cut doubts will hit AI names that rely on heavy debt funding – Niles Investment’s Dan Niles (SP500:)
• 1 Artificial Intelligence (AI) Semiconductor Stock to Buy Hand Over Fist Before December (Hint: It's Not Nvidia)