Nvidia continues to outpace AMD in the artificial intelligence market, with its data center revenue growing 66% in Q3 and an anticipated 67% increase for Q4. Despite Nvidia's faster growth, AMD's stock has seen a significant rise of 65% since 2025, compared to Nvidia's 30% during the same period. Nvidia maintains a substantial market capitalization of $4.6 trillion, dwarfing AMD's $352 billion, even as AMD's products are generally more affordable.
Major tech companies are committing substantial capital to AI initiatives. Amazon plans to invest approximately US$200 billion in capital expenditures, primarily through Amazon Web Services (AWS), focusing on AI chips, robotics, and low earth orbit satellites. Amazon reported strong 2025 results, with AWS sales increasing 20% to US$128.7 billion. Similarly, Meta expects to spend between US$115 billion and US$135 billion on AI in 2026, while Alphabet, Google's parent company, also raised billions in debt, including a rare century bond, to fund its extensive AI ambitions.
Alphabet itself reported robust Q4 2025 results, with revenue growing 18% year-over-year and Google Cloud surging 47.8%, driven by accelerating Gemini AI adoption. However, the company anticipates its capital expenditures to nearly double in 2026. Across the broader software industry, AI is both a driver and a disruptor. Cloudflare projects higher annual sales, expecting US$2.79 billion to US$2.80 billion in 2026, as AI agents increase demand for its cloud services. Atlassian is also heavily investing in AI, launching new AI-driven products like Rovo and increasing R&D for its tools like Jira and Confluence.
Conversely, Monday.com's stock dropped 21% after a weak 2026 sales forecast, with investors concerned about slowing growth and potential AI disruption, despite the company adding AI features like Monday Vibe. J.P. Morgan analysts, however, believe fears about AI's destructive impact on software are overstated, identifying 19 AI-resilient software stocks, including Microsoft and CrowdStrike, that are well-positioned to integrate AI and innovate. Meanwhile, investors are also channeling billions into European AI and defense startups, indicating a strong interest in supporting new technologies for the continent's security and economic independence.
Key Takeaways
- Nvidia's data center revenue grew 66% in Q3, with 67% expected for Q4, demonstrating faster AI market growth than AMD.
- AMD's stock rose 65% since 2025, compared to Nvidia's 30%, despite Nvidia's significantly larger market cap of $4.6 trillion versus AMD's $352 billion.
- Amazon plans to invest approximately US$200 billion in capital expenditures, primarily through AWS, focusing on AI chips, robotics, and low earth orbit satellites.
- Meta expects to spend US$115 billion to US$135 billion on AI in 2026, indicating massive industry-wide AI investments.
- Alphabet reported Q4 2025 revenue growth of 18% and a 47.8% surge in Google Cloud, with Gemini AI adoption accelerating, but anticipates nearly doubling capital expenditures in 2026.
- Alphabet raised billions in debt, including a rare century bond, to fund its extensive AI ambitions, following similar bond issuances by Meta and Amazon in late 2025.
- Cloudflare predicts 2026 annual sales between US$2.79 billion and US$2.80 billion, attributing increased demand to the shift towards AI and AI agents.
- Atlassian is launching new AI-driven products like Rovo and increasing R&D to integrate AI into core tools like Jira and Confluence.
- Monday.com's stock dropped 21% due to a weak 2026 sales forecast and investor concerns about AI disruption, despite the company adding AI features like Monday Vibe.
- J.P. Morgan identified 19 AI-resilient software stocks, including Microsoft and CrowdStrike, suggesting AI will create new opportunities rather than solely destroy the industry.
Nvidia leads AI growth but AMD stock is costly
Nvidia is growing faster than AMD in the AI market. Nvidia's data center revenue grew 66% in Q3, with analysts expecting 67% growth for Q4. While AMD's products are cheaper, its stock is surprisingly expensive compared to its growth. Since 2025, AMD's stock has risen 65% while Nvidia's rose 30%.
Nvidia shows faster AI growth than AMD
Nvidia continues to grow faster than AMD in the AI market. Nvidia's data center revenue grew 66% in Q3, and analysts expect 67% growth for Q4. While AMD's products are cheaper, its stock is expensive for its current growth rate. Since 2025, AMD's stock has increased 65% compared to Nvidia's 30%. Nvidia's market cap is $4.6 trillion, and AMD's is $352 billion.
Nvidia leads AI growth but AMD stock is costly
Nvidia is growing faster than AMD in the AI market. Nvidia's data center revenue grew 66% in Q3, with analysts expecting 67% growth for Q4. While AMD's products are cheaper, its stock is surprisingly expensive for the growth it delivers. Since 2025, AMD's stock has risen 65% compared to Nvidia's 30%.
Amazon plans 200 billion dollar AI investment
Amazon CEO Andy Jassy announced plans to invest about US$200 billion in capital expenditures, mainly for Amazon Web Services (AWS). This investment will support AI chips, robotics, and low earth orbit satellites. Amazon reported strong 2025 results with net income of US$77.7 billion and AWS sales increasing 20% to US$128.7 billion. Other companies like Meta also plan significant AI investments, with Meta expecting to spend US$115 billion to US$135 billion in 2026.
Amazon reports strong 2025 and boosts AI spending
Amazon announced strong financial results for 2025 and plans to invest about US$200 billion in capital expenditures for 2026. These investments will focus on AI, chips, robotics, and low earth orbit satellites. In 2025, Amazon's net sales grew 12% to US$716.9 billion, and net income reached US$77.7 billion. AWS sales increased 24% in Q4 2025, reaching US$35.6 billion.
Alphabet shows strong AI but faces investment risks
Alphabet Inc. reported strong Q4 2025 results with revenue growing 18% year-over-year. Google Cloud surged 47.8%, and Gemini AI adoption is speeding up. However, the company's capital expenditures are expected to nearly double in 2026. Analysts maintain a "Hold" rating due to concerns about valuation, rising debt, and potential pressure on future profits and free cash flow.
Investors fund European AI and defense startups
Investors are putting billions of dollars into AI and defense startups across Europe. These companies are seeing high valuations as venture capital flows into groups linked to Europe's security and economic independence. This trend shows a strong interest in supporting new technologies for the continent.
Monday.com stock drops on weak outlook and AI fears
Monday.com's stock fell 21% to $78 after the company gave a weak sales forecast for 2026. The company expects 2026 revenue between $1.452 billion and $1.462 billion, missing analyst estimates. Investors are worried about slowing growth and potential disruption from AI, along with challenges in the small business market and foreign exchange rates. Monday.com is adding new AI features like Monday Vibe to adapt.
Cloudflare predicts higher sales as AI boosts cloud demand
Cloudflare's shares jumped nearly 12% after the company predicted annual sales above analyst estimates. Cloudflare expects 2026 sales to be between $2.79 billion and $2.80 billion. The company also reported strong December quarter revenue of $614.5 million, a 33.6% increase. CEO Matthew Prince stated that the shift towards AI and AI agents, like OpenClaw, is increasing demand for Cloudflare's services.
Investors lose interest in credit funds due to AI
Investors are becoming less interested in listed credit funds because of how AI is affecting the software industry. Bonds and equity for Business Development Companies have dropped sharply this year. This shows that investors are concerned about the impact of AI on these funds.
Alphabet raises billions in debt for AI plans
Alphabet, Google's parent company, raised billions of dollars in a debt sale, including a rare century bond in British pounds. This borrowing spree helps fund the company's large AI ambitions. Other tech giants like Meta and Amazon also issued bonds in late 2025 to support their AI investments. Hyperscalers issued about $60 billion in bonds in Q4 2025, with expectations for much more in 2026. Investors see Alphabet as a safe investment.
J.P. Morgan names 19 AI-resilient software stocks
J.P. Morgan analysts believe fears about AI destroying the software industry are too high. They identified 19 software stocks that they think are strong against AI disruption and ready to bounce back. Microsoft and CrowdStrike are two of these companies. The analysts suggest that AI will change the industry but also create new opportunities for innovation and efficiency. These chosen companies have solid business models and can add AI into their products.
Atlassian boosts AI with new products and share plan
Atlassian is increasing its focus on artificial intelligence by launching new AI-driven products like Rovo. The company is investing more research and development into AI projects, seeing it as a major change for its future. Atlassian also filed a US$1.41 billion shelf registration for Class A shares, which could be used for employee compensation or future capital raising. These moves aim to make AI a core part of tools like Jira and Confluence, helping Atlassian compete in the market.
Sources
- AMD vs. Nvidia: Which AI Stock Will Outperform in 2026?
- AMD vs. Nvidia: Which AI Stock Will Outperform in 2026?
- AMD vs. Nvidia: Which AI Stock Will Outperform in 2026?
- Amazon: Hatching a US$200bn AI Investment Plan
- Amazon posts strong 2025 as it steps up AI spending
- Alphabet: Strong AI Execution, Weakening Investment Case
- Investors pour billions into Europe’s AI and defence start-ups
- Monday.com Stock Falls on Weak Sales Outlook Amid AI Disruption Fears
- Cloudflare forecasts annual sales above estimates as AI drives cloud demand
- Investors sour on listed credit funds over AI hit to software sector
- Google's parent company raises billions of dollars in debt sale
- Microsoft, CrowdStrike Lead 19 AI-Resilient Software Stocks
- Atlassian Deepens AI Push As New Products And Share Issuance Plans Emerge
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