Nvidia Dominates AI Hardware as Palantir Gains Platform Traction

The artificial intelligence market is experiencing a period of both robust growth and investor caution, highlighted by recent earnings reports and strategic shifts across major tech companies. Oracle's shares plunged significantly, dropping 12.5% to 14% after its second-quarter revenue of $12.64 billion missed Wall Street forecasts. This miss raised concerns about the sustainability of Big Tech's AI spending and cloud adoption, causing a ripple effect that saw major AI chipmakers like Nvidia fall 3.4% and Advanced Micro Devices (AMD) decline 2.8%. Despite this broader market apprehension, Broadcom reported better-than-expected fiscal fourth-quarter earnings, with record revenue of $18.02 billion, a 28% increase year-over-year, and adjusted earnings per share of $1.95. The company attributes this strong performance to high AI chip demand and anticipates 10% revenue growth in its semiconductor solutions segment this quarter. However, Broadcom's stock still fell up to 9% following Oracle's report, extending losses from a wider tech sell-off, though it remains up nearly 60% for 2025. Analysts at William Blair continue to view Broadcom as a strong investment and a top alternative to Nvidia. In the competitive AI landscape, Nvidia maintains its dominance in AI hardware with strong demand for its Blackwell chips and CUDA software, expecting substantial revenue increases. Palantir Technologies is also gaining significant traction with its Artificial Intelligence Platform among US commercial and government clients, leading to increased sales forecasts. Micron Technology, the sole US-based memory maker, is benefiting from high demand for its HBM chips, reporting increased revenues and raising its outlook. Meanwhile, Intel faces growing scrutiny over rising costs and legal issues, challenging its recent stock momentum. Broader AI investment trends are reflected in the Roundhill Generative AI & Technology ETF (CHAT), which has seen a nearly 52% return in 2025. This $1.04 billion ETF invests heavily in companies like Nvidia and Alphabet (Google), with Google's Gemini 3 noted for tangible progress. In the electric vehicle sector, Tesla faces challenges, potentially exiting the $1 trillion valuation club in 2026 due to declining EV sales and increased competition, particularly from companies like BYD. Tesla's Full Self-Driving software also lacks approval for unsupervised use in the US. Conversely, Rivian's shares surged 12% after the company announced new self-driving and AI initiatives. Rivian plans to update its R1 vehicles for hands-off driving on over 3.5 million miles of roads and will launch an Autonomy+ subscription platform for advanced features. Significantly, Rivian also unveiled its own AI chip, designed to replace chips currently sourced from Nvidia. Beyond these giants, specialized AI firms like BigBear.ai, focusing on defense and intelligence, and SoundHound AI, a leader in conversational voice AI, continue to carve out distinct market niches.

Key Takeaways

• Oracle's Q2 revenue of $12.64 billion missed Wall Street forecasts, causing its shares to drop 12.5-14% and negatively impacting AI chipmakers like Nvidia (down 3.4%) and Advanced Micro Devices (AMD) (down 2.8%).
• Broadcom reported record fiscal Q4 revenue of $18.02 billion and adjusted EPS of $1.95, driven by strong AI demand, but its stock still fell up to 9% due to broader market concerns.
• William Blair analysts view Broadcom as a top alternative to Nvidia, maintaining a buy rating, with Broadcom's stock still up nearly 60% for 2025.
• Nvidia continues to dominate the AI hardware market with strong demand for its Blackwell chips and CUDA software, anticipating substantial revenue and earnings growth.
• Palantir Technologies is experiencing significant revenue growth and increased sales forecasts due to the traction of its Artificial Intelligence Platform with US commercial and government clients.
• Micron Technology, the only US-based memory maker, is seeing increased revenues and has raised its outlook due to high demand for its HBM chips.
• Intel faces growing scrutiny, rising costs, and legal issues, testing its recent stock gains of 64% over three months and 90% over one year.
• Tesla may exit the $1 trillion valuation club in 2026 due to a second consecutive year of declining EV sales and increased competition, while its advanced projects like Cybercab are years away.
• Rivian's shares surged 12% after announcing hands-off driving updates, a new Autonomy+ subscription service for $49.99/month, and the development of its own AI chip to replace Nvidia's.
• The Roundhill Generative AI & Technology ETF (CHAT), holding companies like Nvidia and Alphabet (Google), has shown strong performance with a nearly 52% return in 2025.

Broadcom Reports Strong Earnings on AI Demand

Broadcom announced better-than-expected earnings for its fiscal fourth quarter, driven by strong AI demand. The company reported a record $18.02 billion in revenue, a 28% increase from last year, and adjusted earnings per share of $1.95. CEO Hock Tan expects AI chip demand to continue growing, with the semiconductor solutions segment anticipating 10% revenue growth this quarter. Despite these positive results, Broadcom's stock fell 2.5% on Friday, extending losses from a broader tech sell-off after Oracle's earnings report. The board also approved a 10% increase in its quarterly dividend to $2.25 per share.

Broadcom Stock Falls Despite Strong AI Earnings

Broadcom shares dropped almost 9% on Friday, leading declines on the S&P 500 and Nasdaq. This happened despite the company reporting strong fiscal fourth-quarter results, with adjusted earnings per share of $1.95 and record revenue of $18.02 billion. Both figures beat analyst estimates due to high AI chip demand. Other AI hardware stocks like Advanced Micro Devices and Nvidia also fell, continuing investor worry about an AI bubble. However, William Blair analysts still see a good investment opportunity in Broadcom due to ongoing AI demand, calling it a top alternative to Nvidia. Most Wall Street analysts maintain a buy rating for Broadcom, which is still up nearly 60% for 2025.

Roundhill AI ETF Shows Strong Growth Potential

The Roundhill Generative AI & Technology ETF, ticker CHAT, is a leading AI fund showing strong performance in 2025 with a nearly 52% return. This $1.04 billion actively managed ETF invests heavily in six of the Magnificent Seven tech companies, including Nvidia and Alphabet, which make up over 13% of its portfolio. The fund also holds 40 other companies in various AI segments like enterprise AI with Palantir and data centers with Nebius. Its success comes from a focus on core AI investments and tangible progress from companies like Alphabet with its Gemini 3. The ETF has an expense ratio of 0.75% per year.

Oracle Stock Plunge Hurts AI Market Confidence

Oracle's shares dropped sharply by 14% on Thursday, causing a ripple effect across the AI stock market. This decline happened after Oracle missed its revenue estimates, leading investors to question how sustainable Big Tech's spending on AI is. The company's performance raised concerns about its ability to convert future AI deals into actual earnings growth. This significant drop was Oracle's largest decrease since March 2002, impacting other AI-related stocks like Nvidia.

Intel Faces Challenges in AI Race

Intel is facing new scrutiny as concerns grow about its position in the AI market. The company is dealing with rising costs, ongoing legal issues, and problems with its business deals, all of which are affecting investor confidence. Despite its stock seeing significant gains of 64% over three months and 90% over one year, this momentum is now being tested. Investors are reassessing Intel's value due to these mounting setbacks and competitive pressures in the AI industry.

Tesla May Exit Trillion Dollar Club in 2026

Tesla, currently one of nine US companies valued over $1 trillion, might leave this exclusive group in 2026. The company faces a second consecutive year of declining electric vehicle sales, which is putting pressure on its revenue and earnings. While Tesla's Cybercab robotaxi and Optimus humanoid robot show future promise, they are still years away from large-scale commercial use. Increased competition, especially from companies like BYD offering cheaper EVs, has significantly impacted Tesla's sales in key markets. Tesla's Full Self-Driving software also lacks approval for unsupervised use in the US, further delaying its autonomous vehicle plans.

Oracle Revenue Miss Causes AI Stock Decline

Oracle Corp's shares plunged 12.5% after the market closed on Monday because its second-quarter revenue of $12.64 billion missed Wall Street's forecast of $12.93 billion. This disappointing news raised concerns about demand for cloud infrastructure and AI services, causing major AI chipmakers to fall. Nvidia dropped 3.4%, Advanced Micro Devices fell 2.8%, and Micron Technology declined 2.1%. Oracle stated that slower cloud adoption by some business clients contributed to the miss. This market reaction shows how sensitive investors are to any signs of slower growth in the booming artificial intelligence sector.

Three AI Stocks Poised for Strong Growth in 2026

Micron Technology, Palantir Technologies, and NVIDIA Corporation are highlighted as top AI stocks expected to see strong growth in 2026. Micron, the only US-based memory maker, benefits from high demand for its HBM chips, reporting increased revenues and raising its outlook. Palantir's Artificial Intelligence Platform is gaining traction with both US commercial and government clients, leading to significant revenue growth and increased sales forecasts. NVIDIA continues to dominate the AI hardware market with strong demand for its Blackwell chips and CUDA software, anticipating substantial revenue increases and high earnings growth.

BigBear.ai and SoundHound AI Compete in AI Market

BigBear.ai and SoundHound AI are two distinct artificial intelligence companies. BigBear.ai specializes in AI-driven decision intelligence for defense and intelligence clients, offering solutions for mission management and cybersecurity. The company relies heavily on government contracts and recently launched 'Ask Sage' for federal agencies. SoundHound AI, on the other hand, leads in voice AI technology, providing conversational AI for automotive, IoT, and enterprise customers. While BigBear.ai targets a stable defense market, SoundHound AI aims for the broader, fast-growing commercial voice technology sector. Investors must consider their market focus and revenue streams when deciding between these two AI stocks.

Rivian Stock Jumps on Autonomy and AI Focus

Rivian shares surged 12% on Friday after the electric vehicle maker announced new self-driving and AI-related plans. The company will soon update its second-generation R1 vehicles to allow hands-off driving on over 3.5 million miles of roads in the US and Canada. Rivian also plans to launch Autonomy+, a subscription platform for advanced driving features, early next year for $49.99 per month or a one-time $2,500 purchase. Additionally, Rivian unveiled its own AI chip, designed to replace chips currently bought from Nvidia. This strategic shift aims to differentiate Rivian in the challenging EV market and open new high-margin revenue streams.

Sources

• Broadcom Turned In Strong Earnings. But Will They Revive the AI Trade?
• The AI Trade Is Getting Hammered Again Friday, This Time Led by Broadcom
• The Secret to 200% Growth: It's Not a Stock, It's This AI ETF
• Oracle drags down Nvidia and other AI stocks as bubble fears intensify
• Intel (INTC) Valuation Reassessed After Mounting AI Setbacks, Legal Risks, and Competitive Pressure
• Prediction: This Artificial Intelligence (AI) Stock Will Drop Out of the $1 Trillion Club in 2026
• Oracle Q2 Miss Sends AI Stocks Tumbling -- Nvidia, AMD, Micron Suffer Losses
• Top 3 AI Stocks, Including NVIDIA to Buy Now for 2026 Growth
• BigBear.ai vs. SoundHound: Which AI Stock Is the Better Buy Now?
• Rivian's Stock Pops 15% Friday. The EV Maker Is Leaning Into Autonomy and AI