Nvidia Faces AMD Competition While Globant Reports $617.14 Million

The artificial intelligence sector is currently navigating a complex landscape, marked by both significant growth and investor caution. Noted investor Michael Burry, famous for his accurate prediction of the 2007-2008 mortgage crisis, has taken short positions against AI giants Nvidia and Palantir Technologies. Burry expresses concerns over Palantir's valuation, drawing comparisons to dot-com bubble peaks, and also questions Nvidia's valuation amidst increasing competition from Advanced Micro Devices (AMD) and Broadcom. This move suggests a belief that the AI market might be due for a correction.Adding to market volatility, AI stocks recently experienced a sell-off driven by supply chain issues, particularly after the US government reopened. CoreWeave, an AI cloud infrastructure company, missed its third-quarter expectations and warned of infrastructure delivery delays, highlighting a "backlog paradox" where demand for AI platforms far outstrips the ability to build and deploy new capacity. Despite this, many companies continue to show robust performance and strategic advancements in AI.Taiwan Semiconductor Manufacturing Company (TSMC), a crucial chip manufacturer for major AI players like Nvidia, AMD, and Broadcom, stands out as a top AI stock pick for 2026. TSMC's revenue grew 41% year-over-year in Q3, and the company is launching a new 2nm chip node that promises 25% to 30% less power consumption than its predecessor, allowing it to command premium pricing. Teradyne, a key player in AI chip testing, also reported strong quarterly results, surpassing analyst expectations, and increased its revenue and earnings per share outlook, signaling a positive future for its AI chip testing business.In the software and services domain, Globant reported third-quarter 2025 revenue of US$617.14 million. While its net income and earnings per share saw a year-over-year decrease, the company announced a US$125 million share repurchase program and highlighted record growth in its AI-driven projects, including new partnerships and an expanded client base. Dell Technologies is also strengthening its position, with its fair value estimate increasing from $163.18 to $164.00, driven by its robust infrastructure solutions critical for AI development and expansion into new cloud markets.SoundHound AI demonstrated impressive growth, with its third-quarter revenue jumping 68% year-over-year to $42 million, exceeding estimates. The company raised its full-year 2025 revenue guidance to $172.5 million, more than doubling its 2024 revenue. SoundHound AI is rapidly expanding its customer base across various industries, including automotive and healthcare, capitalizing on a conversational AI market projected to exceed $41 billion by 2030.Further illustrating AI's broad application, Syllo secured $30 million in funding from investors like Venrock and Two Seas Capital to enhance its AI-powered legal platform. This platform automates the initial stage of document review, making complex legal cases more efficient for major law firms. Meanwhile, Pictet Asset Management is exploring AI-enhanced investing, utilizing AI-driven quantitative strategies to identify market leaders and manage risks, as discussed in their recent LiveCast focusing on the Pictet AI Enhanced International Equity ETF (PQNT). The competition between hardware innovators like AMD and software leaders like Palantir continues to shape the AI investment landscape, with analysts weighing their respective strengths in a challenging economic environment.

Key Takeaways

• Michael Burry's hedge fund, Scion Asset Management, opened short positions against Nvidia and Palantir, citing concerns over their valuations and increased competition for Nvidia from AMD and Broadcom.
• Taiwan Semiconductor Manufacturing Company (TSMC), a key chip supplier for Nvidia, AMD, and Broadcom, is a top AI stock pick for 2026, reporting 41% year-over-year revenue growth in Q3 and introducing a new 2nm chip node.
• Teradyne announced a US$0.12 per share quarterly cash dividend and reported strong quarterly results, exceeding analyst expectations, with a positive outlook for its AI chip testing business.
• Globant reported Q3 2025 revenue of US$617.14 million and announced a US$125 million share repurchase program, alongside record growth in its AI-driven projects despite a decrease in net income.
• Dell Technologies' fair value estimate increased to $164.00, reflecting optimism about its strengthening position in AI and expansion into new cloud markets.
• SoundHound AI's Q3 revenue surged 68% year-over-year to $42 million, beating estimates, and the company raised its full-year 2025 revenue guidance to $172.5 million.
• AI stocks, including CoreWeave, experienced a sell-off due to supply chain issues, with demand for AI platforms exceeding the capacity for deployment, creating a "backlog paradox."
• AMD and Palantir are competing as top AI stocks, with AMD demonstrating strength in hardware innovation and Palantir expanding its lead in AI software.
• Syllo secured $30 million in funding to advance its AI-powered legal platform, which automates the first stage of document review for law firms.
• Pictet Asset Management is exploring AI-enhanced investing strategies, using AI to identify market leaders and manage risks, as highlighted in their LiveCast on the Pictet AI Enhanced International Equity ETF (PQNT).

Michael Burry bets against AI giants Nvidia and Palantir

Michael Burry, famous for predicting the 2007-2008 mortgage crisis, has now bet against artificial intelligence stocks. His hedge fund, Scion Asset Management, opened short positions against Nvidia and Palantir Technologies during the third quarter. Burry believes Palantir's stock is overvalued, comparing its P/S ratio to dot-com bubble peaks. He also has concerns about Nvidia's valuation and increasing competition from Advanced Micro Devices and Broadcom. Burry's move suggests he thinks the AI sector might be due for a market correction.

Taiwan Semiconductor is a top AI stock pick for 2026

Taiwan Semiconductor Manufacturing Company, or TSMC, is a top AI stock pick for 2026. TSMC makes chips for major AI companies like Nvidia, AMD, and Broadcom, who are all competing to provide the best computing units. The company is launching a new 2nm chip node, which uses 25% to 30% less power than the previous 3nm generation. This advanced technology helps reduce energy use, a big focus in AI development, allowing TSMC to charge a premium. TSMC's revenue grew 41% year over year in Q3, showing strong growth even as it expands with new facilities globally.

Teradyne shows strong growth in AI chip testing

Teradyne (TER) recently announced a quarterly cash dividend of US$0.12 per share, payable on December 17, 2025. The company reported strong quarterly results that were better than what analysts expected. Teradyne also increased its revenue and earnings per share outlook for the next quarter. This positive news suggests a hopeful future for Teradyne, especially in its AI chip testing business.

Globant reports mixed results with AI growth and share buyback

Globant (GLOB) reported its third-quarter 2025 results, showing revenue of US$617.14 million. However, the company's net income and earnings per share both decreased compared to the previous year. Despite this, Globant announced a US$125 million share repurchase program. The company also highlighted record growth in its AI-driven projects, including new partnerships and more clients using its AI solutions.

Dell Technologies sees fair value rise with AI and cloud growth

Dell Technologies (DELL) has seen its fair value estimate increase from $163.18 to $164.00. Analysts are more optimistic because Dell is strengthening its position in artificial intelligence and expanding into new cloud markets. Dell's strong infrastructure solutions are key for AI development, driving demand for its high-performance computing, storage, and networking products. The company's growth in hybrid and multi-cloud environments also helps its competitive edge.

SoundHound AI shows strong growth and future potential

SoundHound AI reported strong third-quarter results with revenue jumping 68% year over year to $42 million, beating estimates. The company also raised its full-year 2025 revenue guidance to $172.5 million, more than doubling its 2024 revenue of $84.7 million. SoundHound AI is rapidly expanding its customer base across many industries, including automotive and healthcare. The conversational AI market is expected to grow by 24% annually through 2030, reaching over $41 billion, and SoundHound is growing even faster. Its cumulative subscriptions and bookings backlog reached almost $1.2 billion by the end of 2024, showing significant future business.

AI stocks fall due to supply issues after government reopens

After the US government reopened, AI stocks experienced a sell-off due to growing concerns about supply problems. CoreWeave, an AI cloud infrastructure company, missed its third-quarter expectations and warned of delays in delivering infrastructure. CEO Mike Intrator stated that demand for AI platforms far exceeds the ability to build and deploy new capacity, creating a "backlog paradox." CoreWeave shares fell 25% after the news, despite having rallied 240% earlier. Meanwhile, sectors like healthcare and autos, including Eli Lilly and General Motors, showed strength as consumer spending optimism returned.

AMD and Palantir compete as top AI stocks

This analysis compares Advanced Micro Devices (AMD) and Palantir (PLTR) to see which is a better AI stock during a challenging economy. AMD shows strength in hardware innovation, while Palantir is expanding its lead in AI software. Both companies face unique challenges and opportunities that affect their risk and reward for investors. Analysts have different views on which company offers a safer investment during a macroeconomic downturn.

Syllo raises $30 million for AI legal tech growth

Syllo secured $30 million in funding from Venrock, Two Seas Capital, and other investors to boost its AI-powered legal platform. The company plans to use the money for product innovation, expanding its team, and market initiatives. Syllo's unified AI workspace automates the first stage of document review, making complex legal cases more efficient. Major law firms like Pillsbury Winthrop use Syllo's Agentic AI platform, and the company has won awards from ILTA and American Lawyer. Founded in 2019 by litigators and engineers, Syllo is quickly becoming a leader in AI-driven litigation technology.

Learn about AI enhanced investing with Pictet Asset Management

Pictet Asset Management is hosting a LiveCast to discuss navigating complex markets using AI enhanced investing. Experts will share how AI-driven quantitative strategies can help identify market leaders and manage risks. The session will focus on the Pictet AI Enhanced International Equity ETF (PQNT). Speakers include David Wright, Benjamin Becker, and Roxanna Islam. Investors should remember that investing involves risks, including those related to foreign securities, currency exchange, and the reliance on AI models.

Sources

• "Big Short" Money Manager Michael Burry Just Bet Against Nvidia and Palantir. Is He Calling the Top of the Artificial Intelligence (AI) Boom?
• Meet My Top Artificial Intelligence (AI) Stock Pick for 2026
• Is Teradyne's (TER) Upbeat Guidance Revealing a Shift in Its AI Testing Advantage?
• Should Globant’s (GLOB) Earnings Miss and Buyback Amid AI Growth Require Investor Action?
• How the Latest AI and Cloud Developments Are Shaping Dell’s Investment Story
• Where Will SoundHound AI Stock Be in 3 Years?
• As government reopens, AI stocks crack as supply problems emerge
• AMD vs. PLTR: Which Is the Better AI Stock amid a Macro Downturn?
• Syllo Secures $30M to Bolster Product Innovation and Meet Growing Demand for AI-Driven Litigation Products and Services
• LiveCast: Navigating complex market environments with AI enhanced investing