The artificial intelligence sector continues to drive significant investment and strategic shifts across major tech companies. NVIDIA stands out as a top AI stock pick, reporting strong fiscal Q3 2026 revenues of $57 billion, a 62% increase year-over-year, and an impressive 73.4% gross margin. While Super Micro Computer also saw substantial growth, with sales jumping 123% to $12.7 billion in fiscal Q2 2026, its gross margins dropped to 6.3%, making NVIDIA the preferred investment due to higher profitability and lower financial risk. Broadcom, a key player in semiconductor and infrastructure software, also attracts investor confidence, with Cathie Wood's ARK ETF and billionaire George Soros making significant purchases totaling over $62 million, recognizing its vital role in custom ASIC solutions for AI accelerators.
In the realm of AI development, Anthropic recently secured a massive $30 billion in Series G funding, pushing its valuation to $380 billion. This investment underscores strong confidence in its rapidly advancing AI models, such as Claude Code, which has seen business subscriptions quadruple. Meanwhile, Intel is reportedly considering a $100 million investment in AI startup SambaNova Systems, aiming to bolster its position in high-end computing and dedicated GPUs, despite facing ongoing supply constraints.
Enterprise software companies are also navigating the AI boom. Wedbush analyst Dan Ives sees the recent selloff in stocks like Salesforce and ServiceNow as a prime buying opportunity, arguing that Wall Street underestimates AI's future monetization potential for these platforms. Both companies have seen shares drop over 20% in the past month. Reflecting this dynamic, Goldman Sachs has introduced an "AI pair-trade basket" for the software sector, designed to capitalize on AI-driven growth by investing in cybersecurity and cloud leaders while hedging against companies vulnerable to AI disruption.
Broader tech giants are making strategic moves. Amazon announced plans to lay off approximately 16,000 employees starting January 2026, a cost-cutting measure amidst increased competition from rivals like Walmart and Microsoft, even as it heavily invests in new AI technologies. George Soros also placed a $25.5 million bet on Tesla, citing its aggressive push into AI autonomy and robotics. On the legal front, Disney faces challenges, including a German court injunction related to patent infringement claims and a major lawsuit against ByteDance, alleging its AI video generation tool used copyrighted Disney content without permission.
Key Takeaways
- NVIDIA is favored over Supermicro as an AI investment, reporting $57 billion in Q3 2026 revenue with a 73.4% gross margin, compared to Supermicro's $12.7 billion Q2 2026 sales and 6.3% gross margin.
- Anthropic secured $30 billion in Series G funding, valuing the AI company at $380 billion, with business subscriptions for its Claude Code model quadrupling.
- Broadcom attracted significant investments, including $27 million from ARK Invest and $35.4 million from George Soros, for its custom ASIC solutions vital for AI accelerators.
- George Soros also invested $25.5 million in Tesla, betting on its strong push into AI autonomy and robotics projects.
- Wedbush analyst Dan Ives considers the over 20% selloff in enterprise software stocks like Salesforce and ServiceNow a buying opportunity, expecting future AI monetization.
- Amazon plans to lay off approximately 16,000 employees starting January 2026, aiming to reduce costs while continuing heavy investment in AI.
- Disney faces legal challenges, including a German patent infringement injunction and a lawsuit against ByteDance for alleged unauthorized use of copyrighted content by an AI tool.
- Intel is reportedly considering a $100 million investment in AI startup SambaNova Systems to strengthen its position in artificial intelligence and high-end computing.
- Goldman Sachs launched an "AI pair-trade basket" for the software sector, investing in cybersecurity and cloud leaders while betting against companies susceptible to AI disruption.
NVIDIA beats Supermicro as top AI stock pick
NVIDIA and Super Micro Computer are both benefiting from the AI boom. NVIDIA reported strong revenues of $57 billion in fiscal Q3 2026, showing a 62% increase from last year. Its gross margin reached 73.4%, and it has a low debt-to-equity ratio of 6.3%. Super Micro Computer's sales jumped 123% to $12.7 billion in fiscal Q2 2026, driven by its Data Center Building Block Solutions. However, Supermicro's gross margins fell to 6.3%, and its debt-to-equity ratio is higher at 66.9%. Experts recommend NVIDIA as the better investment due to its higher profitability and lower financial risk.
NVIDIA stock shines over Supermicro in AI race
NVIDIA and Super Micro Computer are both seeing strong growth from the AI infrastructure boom. NVIDIA's revenues rose 62% to $57 billion in fiscal Q3 2026, with expectations of $65 billion for Q4 2026. The company benefits from high demand for its chips and approved H200 AI chip shipments to China. Supermicro's sales surged 123% to $12.7 billion in fiscal Q2 2026, driven by its Data Center Building Block Solutions. However, Supermicro faces margin pressure, with gross margins dropping to 6.3%. NVIDIA shows stronger profitability with a 73.4% gross margin and a lower debt-to-equity ratio, making it the preferred investment.
ARK Invest buys Broadcom shares on strong AI outlook
Cathie Wood's ARK ETF recently made a significant investment in Broadcom Inc. On February 6, ARK bought 87,148 shares worth $27 million, adding to a previous purchase of 10,000 shares for $7.2 million. This brings ARK's total stake in Broadcom to $1.1 billion. Broadcom designs and supplies semiconductor and infrastructure software solutions, including custom ASIC solutions vital for AI accelerators and data centers. The company's stock has performed well, gaining 11.7% in the past month and 110.5% in the past year. Broadcom expects strong revenue growth from its AI products and the integration of VMware, making it an attractive investment for AI-focused funds.
Disney faces patent issues and AI content lawsuit
Disney is currently dealing with several legal challenges impacting its intellectual property. A German court issued a new injunction against Disney, linked to InterDigital's patent infringement claims regarding mobile communication technology. This follows similar rulings in Germany and Brazil. Additionally, Disney has filed a major lawsuit against ByteDance, the company behind TikTok. Disney claims ByteDance's AI video generation tool used copyrighted Disney content without permission. These legal battles highlight the importance of protecting Disney's brand and content. Disney shares are trading around $105.45, showing a 3% decline over the last week.
Anthropic raises $30 billion in new funding
AI company Anthropic recently secured $30 billion in Series G funding, pushing its valuation to $380 billion. This significant investment shows strong investor confidence despite the company not yet being profitable. Anthropic is rapidly developing its AI models, including its agentic coding model, Claude Code. Business subscriptions for Claude Code have quadrupled since early 2026, with enterprise use making up over half its revenue. The company began generating revenue less than three years ago and continues to attract large investments in the growing AI market.
Dan Ives calls software stock selloff a buying chance
Wedbush analyst Dan Ives believes the recent selloff in enterprise software stocks like Salesforce and ServiceNow is a major buying opportunity. On February 14, 2026, Ives stated that Wall Street is misjudging how artificial intelligence will affect these companies. He argues that enterprise customers are deeply committed to platforms like Salesforce and ServiceNow due to high switching costs. Ives thinks AI monetization is still in early stages and will boost revenue growth, not shrink it. Both Salesforce and ServiceNow shares have dropped over 20% in the past month, but Ives has added them back to his Best Ideas list.
Amazon plans to lay off 16,000 employees
Amazon.com Inc. announced plans to lay off about 16,000 employees starting in January 2026. This move comes amid widespread tech job cuts and aims to reduce costs and boost profitability. The company faces growing competition from rivals like Walmart and Microsoft. Amazon is also investing heavily in new technologies, including artificial intelligence, to stay competitive. The layoffs could impact Amazon's stock price, which has been under pressure recently. Some investors may view these cuts as a positive step towards improving financial performance.
George Soros invests $69 million in two AI stocks
Billionaire investor George Soros, through Soros Fund Management, recently made significant investments in two artificial intelligence stocks. He purchased 102,379 shares of Broadcom, valued at $35.4 million, and acquired 56,661 shares of Tesla, worth $25.5 million. Soros sees value in Broadcom's strong position in the AI semiconductor market, noting its custom AI chips and a 74% year-over-year increase in AI chip revenue in Q4. For Tesla, Soros is betting on its strong push into AI autonomy and its heavy investments in AI and robotics projects. These combined investments total $69 million, showing confidence in their AI-driven growth.
Goldman Sachs launches new AI software trade basket
Goldman Sachs has introduced an "AI pair-trade basket" designed for the software sector. This new investment strategy aims to profit from the artificial intelligence boom. Goldman Sachs plans to invest in cybersecurity and cloud leaders, while betting against companies that might struggle due to AI disruption. The basket focuses on software firms that can use AI for growth or are less likely to be replaced by AI technologies. This strategy helps investors benefit from AI's rise while protecting against its potential negative impacts.
Intel considers $100 million investment in AI startup
Intel is reportedly considering an investment of up to $100 million in the AI startup SambaNova Systems. This move aims to strengthen Intel's position in artificial intelligence and high-end computing. The company is also focusing more on dedicated GPUs and recently hired a former Qualcomm executive as its Chief GPU Architect. While Intel is making strides in AI, it faces ongoing supply constraints and questions about its stock valuation. Intel's shares currently trade around $46.79, close to analyst targets, but Simply Wall St estimates they are 56.9% above fair value.
Sources
- NVIDIA vs. SMCI: Which AI Hardware Stock Is the Better Buy Now?
- NVIDIA vs. SMCI: Which AI Hardware Stock Is the Better Buy Now?
- Broadcom Inc. (AVGO) Draws ARK Investment Amid Positive AI Growth Outlook
- Disney IP Setbacks And AI Lawsuit Put Long Term Story In Focus
- Investors shove another $30B into the Anthropic money furnace
- Dan Ives Calls AI-Driven Software Selloff 'Most Disconnected Trade,' Says Salesforce And ServiceNow Are Historic Buys - Salesforce (NYSE:CRM), ServiceNow (NYSE:NOW)
- Amazon Layoffs Test Cost Cuts Valuation And AI Investment Priorities
- Billionaire George Soros Just Made Big, Bold Bets on 2 AI Stocks
- Goldman unveils AI-resilient trade basket for software sector
- Intel AI Push With SambaNova Investment Meets Valuation And Supply Questions
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