Western Digital announced on February 3 an additional $4 billion for share repurchases, driven by surging demand for its memory chips used in AI servers. This decision follows a 57% increase in its shares this year, with a global shortage of memory chips pushing up prices. The company had $484 million remaining from a previous $2 billion buyback plan and anticipates higher fiscal third-quarter revenue and profit.
Nvidia continues to solidify its position in AI infrastructure, recently investing US$2 billion in CoreWeave, an AI infrastructure company. This investment aims to expand their partnership focused on AI data center infrastructure. Separately, Bank of America reaffirmed a "Buy" rating for Nvidia on February 2, setting a price target of $275, citing it as a top AI stock.
Alphabet is under investor scrutiny as it prepares to report its fourth-quarter 2025 earnings on February 5. Analysts project total revenue of $94.7 billion, a 16% increase, with Google Cloud revenue expected to jump 35.9% to $16.25 billion. Key areas of focus include AI monetization through Gemini and other products, alongside Google Cloud's backlog and 2026 capital spending plans.
In other AI developments, SoundHound AI shows strong potential in voice AI, offering advanced speech recognition and conversational AI for various applications. Publicis Groupe reported robust fourth-quarter results, with revenue up 7.1%, attributing growth to new clients and its early adoption of generative AI, including its Marcel platform launched in 2019.
BWX Technologies is positioned to benefit from AI's power demands through its small modular reactors (SMRs), which can supply electricity to AI data centers. The company's commercial operations saw significant revenue and free cash flow increases in Q3 2025. Additionally, Perpetuals.com improved its BayesShield AI system using NVIDIA hardware, successfully blocking 92% of losing retail trades in a recent test.
Key Takeaways
- Western Digital approved an additional $4 billion for share repurchases due to high demand for AI server memory chips.
- Western Digital had $484 million left from a previous $2 billion buyback plan.
- Nvidia invested US$2 billion in CoreWeave to expand their AI data center infrastructure partnership.
- Bank of America maintains a "Buy" rating for Nvidia with a $275 price target, identifying it as a top AI stock.
- Alphabet's Google Cloud revenue is projected to increase by 35.9% to $16.25 billion in Q4 2025.
- SoundHound AI is highlighted as a promising investment in the fast-growing voice AI market.
- BWX Technologies is leveraging its small modular reactors (SMRs) to meet the rising electricity demand from AI data centers.
- Publicis Groupe reported strong Q4 results, with 7.1% revenue growth driven by AI-powered services and new client wins.
- Perpetuals.com's BayesShield AI, powered by NVIDIA hardware, blocked 92% of losing retail trades in a recent test.
- A global shortage of memory chips is increasing competition and driving up prices, benefiting companies like Western Digital.
Western Digital adds $4 billion to share buyback plan
Western Digital announced on February 3 that its board approved an additional $4 billion for share repurchases. This decision comes as demand for its memory chips, used in AI servers, is surging. The company's shares rose about 5% in premarket trading, adding to a 57% increase this year. A global shortage of memory chips has increased competition and driven up prices. Western Digital had $484 million left from a previous $2 billion buyback plan authorized in May last year.
Western Digital boosts buyback by $4 billion on AI chip demand
Western Digital announced on February 3, 2026, that its board approved an extra $4 billion for share repurchases. This move is due to high demand for its memory chips used in artificial intelligence servers. The company's shares increased about 5% in premarket trading, adding to a 57% rise this year. A worldwide shortage of memory chips has led to higher prices and longer delivery times. Western Digital also recently predicted higher fiscal third-quarter revenue and profit than expected, driven by sales of hard drives and flash storage for AI servers.
Western Digital adds $4 billion to buyback as AI demand grows
Western Digital announced on February 3 that its board approved an additional $4 billion for share repurchases. This decision comes as demand for its memory chips, used in artificial intelligence servers, is surging. The company's shares rose about 5% in premarket trading, adding to a 57% jump this year. A global shortage of memory chips has increased competition and driven up prices. Western Digital also recently predicted fiscal third-quarter revenue and profit above Wall Street expectations, thanks to sales of hard drives and flash storage for AI servers.
SoundHound AI shows strong potential in voice technology
A bullish report by Denis Gorbunov on Stay Invested's Substack highlights SoundHound AI, Inc. (SOUN) as a promising investment. The company specializes in voice AI, offering advanced speech recognition and conversational AI for customer service, cars, and smart devices. Its share price was $8.46 on January 30. The report points to a fast-growing voice AI market, SoundHound's superior technology, and key partnerships in the automotive and tech sectors. While currently not making a profit, the company expects significant future earnings and recurring revenue, suggesting its current stock price is a good entry point for investors.
CoreWeave faces lawsuits while Nvidia invests $2 billion
CoreWeave, an AI infrastructure company, is currently dealing with several class action lawsuits. These lawsuits claim the company misled investors about its AI infrastructure capacity and future earnings. At the same time, Nvidia announced a major US$2 billion investment in CoreWeave. Nvidia also plans to grow its current partnership with CoreWeave, focusing on AI data center infrastructure. This mix of legal issues and a large investment from a key industry player has drawn much attention to CoreWeave's business and growth plans.
Nvidia dominates AI infrastructure with strong cash flow
Nvidia holds a leading position in artificial intelligence infrastructure and generates a large amount of free cash flow. Its stock price was 2.92% on January 27, 2026. For Nvidia's stock to continue rising, the company must perform perfectly and maintain strong growth. Investors are watching closely to see what the company will deliver next to drive its stock higher.
Bank of America suggests buying Nvidia stock
On February 2, Bank of America reaffirmed its "Buy" rating for NVIDIA Corporation (NASDAQ:NVDA) and set a price target of $275. The firm advised investors to purchase shares if the stock shows any weakness. Bank of America believes Nvidia is one of the top 10 AI stocks gaining attention on Wall Street. The $275 price target is based on 28 times the estimated 2027 earnings per share, excluding cash.
BWX Technologies thrives on AI power demand
Many worry about an AI bubble, but BWX Technologies is positioned to profit from AI growth without the same risks. The company, a leader in small modular reactors (SMRs), can help meet the rising electricity demand from AI data centers. BWX Technologies has a long history in naval nuclear propulsion, building over 400 nuclear power systems for the U.S. Navy. Its commercial operations saw a 122% revenue increase in Q3 2025, and operating free cash flow jumped 338%. The company's BWXT Advanced Nuclear Reactor (BANR) uses advanced TRISO fuel and can generate 50 megawatts, designed for data centers and other remote power needs.
Publicis sees strong growth from AI and new clients
Publicis Groupe SA reported strong fourth-quarter results, driven by new client wins and high demand for its AI-powered services. The French advertising company's revenue increased 7.1% to €3.19 billion, with organic growth of 6.3% surpassing its own predictions. Publicis, the world's third-largest advertising firm, has gained market share by focusing on digital and data-driven advertising and by adopting generative AI early. CEO Arthur Sadoun stated they are winning accounts because they can deliver AI solutions at scale. The company launched its generative AI platform, Marcel, in 2019, and expects AI's contribution to revenue to grow significantly.
BayesShield AI blocks 92 percent of losing trades
Perpetuals.com has significantly improved its BayesShield AI system by using NVIDIA hardware. A recent test showed that the AI-powered platform successfully blocked 92% of losing retail trades. This marks a major step forward in predicting trades and reducing risk for investors. The backtest focused on how well BayesShield could find and stop unprofitable trades in retail markets. The results suggest this AI system could greatly help retail investors improve their trading outcomes.
Alphabet Q4 earnings show strong cloud and AI growth
Alphabet will report its fourth-quarter 2025 earnings on Thursday, February 5, after the US market closes. Investors are watching to see if strong growth in Google Cloud and AI will support its high $4 trillion valuation. Analysts expect total revenue of $94.7 billion, a 16% increase, with Google Cloud revenue projected to jump 35.9% to $16.25 billion. Key areas to watch include updates on Google Cloud's backlog, AI monetization through Gemini and other products, and the company's capital spending plans for 2026. While Search and YouTube show steady growth, Google Cloud remains the fastest-growing segment.
Sources
- Western Digital adds $4 billion to buyback plan as AI boosts memory chip sales
- Western Digital adds $4 billion to buyback plan as AI boosts memory chip sales By Reuters
- Western Digital Adds $4 Billion to Buyback Plan as AI Boosts Memory Chip Sales
- SoundHound AI, Inc. (SOUN): A Bull Case Theory
- CoreWeave Faces Lawsuits As Nvidia Investment Reframes AI Infrastructure Story
- Is Nvidia the Best Artificial Intelligence (AI) Stock to Buy Right Now?
- Nvidia (NVDA) weakness seen as buying opportunity, analyst says
- Is the AI Bubble Real? Who Knows? This Stock Should Thrive Regardless.
- Publicis Says Account Wins, AI Demand Lift Top Line
- BayesShield AI Blocks 92 Percent of Losing Retail Trades Using NVIDIA Hardware
- Alphabet earnings preview: will cloud and AI justify the $4 trillion valuation?
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