Nvidia Leads AI Chips Alongside Coherent's $7.7 Billion Goal

The artificial intelligence sector continues to drive significant market activity, with major players and specialized companies making strategic moves across hardware, software, and data. Demand for AI infrastructure components, such as optical transceivers from Coherent, remains strong, though supply limitations are a concern. Coherent aims for $7.7 billion in revenue and $732.0 million in earnings by 2028, supported by its new 300 mm silicon carbide platform for AI datacenters. Ultra Clean Holdings also plays a vital role, supplying equipment for AI-focused semiconductor chip production, projecting $2.7 billion in revenue and $64.6 million in earnings by 2028. In the chip manufacturing space, Nvidia maintains its leadership in AI infrastructure, while Broadcom is making impressive strides with its custom AI accelerator chips. These Broadcom chips are noted for potentially outperforming Nvidia's products at a lower cost, with AI semiconductor revenue growing 74% to $6.5 billion in Q4 fiscal 2025 and an expected $8.2 billion in Q1. Taiwan Semiconductor Manufacturing (TSMC) is a critical beneficiary, holding a near monopoly on advanced chip manufacturing for both Nvidia and Broadcom. Qualcomm is also advancing its AI capabilities, showcasing new chips like the Snapdragon X-Series at CES 2026. Cloud and data infrastructure are also seeing substantial investment. Alibaba Group Holding plans to spin off its AI chip unit, Kunlunxin, and integrate more AI workloads and Qwen models across Alibaba Cloud, backed by a RMB 380 billion investment over three years. Applied Digital is spinning off its cloud computing business, ChronoScale, having secured $16 billion in lease payments. Nebius, formerly Yandex, provides cloud-based AI infrastructure services and has secured major contracts with tech giants like Microsoft and Meta Platforms. Meanwhile, Reddit is capitalizing on its user content, licensing it for AI model training, and projects $3.8 billion in revenue and $1.0 billion in earnings by 2028. AI-enabled platforms and services are also expanding. Samsara's AI-enabled connected operations platform is gaining analyst support, with Q3 FY2025 revenue reaching US$415.98 million and a target of $2.4 billion revenue and $311.3 million earnings by 2028. Klaviyo, which recently appointed a new co-CEO to focus on product and AI, is enhancing its data-driven marketing tools and expects $1.9 billion in revenue and $88.3 million in earnings by 2028. eGain Corporation's AI knowledge business shows fast growth, reporting 23% annual recurring revenue. Brand Engagement Network (BNAI) secured a $250,000 AI engagement-services project with a major pharmaceutical client. Meta Platforms is heavily investing in AI to improve its products and metaverse plans, despite facing legal challenges and inflation concerns, while Datadog leverages AI for real-time insights in its cloud monitoring platform. The broader market, including the Nasdaq, is poised for gains in 2026, driven by these AI leaders, and even Bitcoin's surge has boosted AI-linked mining stocks.

Key Takeaways

• Coherent projects $7.7 billion in revenue and $732.0 million in earnings by 2028, driven by strong demand for AI optical transceivers and components, despite supply limitations.
• Broadcom's custom AI accelerator chips are experiencing rapid growth, with AI semiconductor revenue reaching $6.5 billion in Q4 fiscal 2025 and an expected $8.2 billion in Q1, offering a cost-effective alternative to Nvidia's products.
• Nvidia remains a leader in AI infrastructure, while Taiwan Semiconductor Manufacturing (TSMC) holds a near monopoly on advanced chip manufacturing, benefiting from both Nvidia and Broadcom's production.
• Reddit is monetizing its user content through AI data licensing deals, projecting $3.8 billion in revenue and $1.0 billion in earnings by 2028.
• Alibaba Group Holding plans to spin off its AI chip unit, Kunlunxin, and invest RMB 380 billion over three years to expand AI workloads and Qwen model integrations across Alibaba Cloud.
• Samsara's AI-enabled connected operations platform received positive analyst attention, with Q3 FY2025 revenue at US$415.98 million and a target of $2.4 billion revenue and $311.3 million earnings by 2028.
• Meta Platforms is making significant investments in AI for long-term growth and product improvement, with Nebius securing major AI infrastructure contracts from both Meta Platforms and Microsoft.
• Klaviyo appointed a new co-CEO to focus on AI-enabled marketing tools, projecting $1.9 billion in revenue and $88.3 million in earnings by 2028.
• Ultra Clean Holdings, a vital supplier for AI chip production, projects $2.7 billion in revenue and $64.6 million in earnings by 2028, highlighting its role in AI-driven manufacturing.
• Qualcomm is advancing its AI and on-device technology, showcasing its Snapdragon X-Series at CES 2026, indicating a strong push into the AI market.

Coherent sees strong AI optics demand and supply limits

In late December 2025, Morgan Stanley and Bank of America Securities highlighted strong demand for Coherent's optical transceivers and components for AI infrastructure. They also noted ongoing supply problems. Coherent's new 300 mm silicon carbide platform for AI datacenters supports this growth. The company aims for $7.7 billion in revenue and $732.0 million in earnings by 2028. This shows that manufacturing capacity is now a key factor for the company's success in the AI market.

Reddit stock jumps on AI data licensing deals

In early January 2026, Reddit gained attention for its growing role in artificial intelligence. Analysts pointed to ongoing talks and existing deals to license Reddit's user content for training AI models. This highly specific data is becoming valuable training fuel for AI systems. Reddit's collaboration with Intercontinental Exchange ICE shows a real way to make money beyond ads. The company projects $3.8 billion in revenue and $1.0 billion in earnings by 2028.

Samsara gains analyst support for AI operations platform

Samsara Inc. recently received positive attention from Evercore, BTIG, and TD Cowen. These analysts praised its AI-enabled connected operations platform and strong recurring revenue. Samsara's platform helps physical operations customers use AI. In Q3 FY2025, the company's revenue rose to US$415.98 million and it achieved a small net profit. Management expects double digit revenue growth into FY2026, aiming for $2.4 billion revenue and $311.3 million earnings by 2028.

Alibaba plans Kunlunxin AI chip spin-off and cloud expansion

Alibaba Group Holding announced plans to spin off its AI chip unit, Kunlunxin, for a Hong Kong listing in early 2027. The company also plans to increase AI workloads and Qwen model integrations across Alibaba Cloud. This strategy shows Alibaba is focusing on infrastructure for future AI services. Alibaba will invest at least RMB 380 billion into AI and cloud over three years. The company projects CN¥1260.3 billion revenue and CN¥171.1 billion earnings by 2028.

Ultra Clean Holdings plays key role in AI chip production

Ultra Clean Holdings is a vital supplier of equipment and parts for making AI-focused semiconductor chips. Its important role in AI chip production is making investors re-evaluate its position in the semiconductor industry. In October 2025, the company guided for Q4 2025 revenue between US$480 million and US$530 million, with GAAP diluted EPS near breakeven. Ultra Clean Holdings projects $2.7 billion in revenue and $64.6 million in earnings by 2028. This shows the company's potential growth from AI-driven manufacturing investments.

Klaviyo names new co-CEO, focuses on AI and market growth

In early January 2026, Klaviyo was added to Stephens' 2026 Best Ideas list and received new positive analyst coverage. The company also named Chano Fernández, a former Workday executive, as co-chief executive officer alongside co-founder Andrew Bialecki. Bialecki will focus on product and AI, while Fernández will lead go-to-market and operations. This new leadership structure aims to boost Klaviyo's data-driven, AI-enabled marketing tools. The company expects $1.9 billion in revenue and $88.3 million in earnings by 2028.

Top 3 AI stocks to consider in January

In January 2026, three top artificial intelligence stocks to consider are Nvidia, Broadcom, and Taiwan Semiconductor Manufacturing. Nvidia remains a leader in AI infrastructure, building an ecosystem around its powerful chips. Broadcom helps companies design custom AI chips, like Alphabet's TPUs, offering a cost-effective alternative to GPUs. Taiwan Semiconductor Manufacturing benefits from both, as it makes advanced logic chips for Nvidia and Broadcom. TSMC holds a near monopoly on advanced chip manufacturing, with no real challengers in smaller node chips.

Broadcom custom AI chips drive strong growth

Broadcom saw impressive growth in 2025, with its stock rising 50%. Investors are excited about its custom AI accelerator chips, which can outperform Nvidia's products at a lower cost. In Q4 fiscal 2025, Broadcom's AI semiconductor revenue grew 74% to $6.5 billion. The company expects Q1 AI semiconductor revenue to reach $8.2 billion. Analysts project total revenue to hit $96 billion in fiscal 2026 and $130 billion in fiscal 2027.

Broadcom's AI chips show impressive growth potential

Broadcom had a very successful 2025, largely due to its custom artificial intelligence accelerator chips. These chips can perform better than Nvidia's products at a lower price. In the fourth quarter of fiscal 2025, Broadcom's AI semiconductor revenue grew by 74% to $6.5 billion. The company expects this to increase to $8.2 billion in Q1. Analysts predict Broadcom's total revenue will reach $96 billion in fiscal 2026 and $130 billion in fiscal 2027.

Nasdaq poised to soar in 2026 with AI leaders

Wall Street analysts believe the Nasdaq will see significant gains in 2026, driven by the artificial intelligence revolution. They highlight Meta Platforms and Datadog as two AI stocks to watch. Meta Platforms is heavily investing in AI to improve its products and metaverse plans, which analysts expect to boost user engagement and ad revenue. Datadog, a cloud monitoring platform, uses AI to provide real-time insights. Its AI features give it a strong advantage as businesses increasingly use cloud services.

Nasdaq to rally in 2026 with Meta and Datadog

The Nasdaq Composite Index has a history of strong recovery after periods of high inflation and interest rates, suggesting a potential surge in 2026. Wall Street analysts are optimistic about two AI-related stocks: Meta Platforms and Datadog. Meta Platforms is advancing its AI and metaverse initiatives, which analysts see as key drivers for future growth. Datadog, a cloud monitoring platform, uses AI to enhance its services for businesses managing complex cloud systems. Both companies have received Buy ratings from analysts, pointing to strong growth potential.

Qualcomm highlights AI and Snapdragon X-Series at CES 2026

Qualcomm is drawing attention at CES 2026 by showcasing its advancements in AI, new chips, and smarter devices, including the Snapdragon X-Series. This focus is leading investors to re-evaluate the company's stock value. Qualcomm has shown steady growth, with a 2.59 percent share price return over 90 days and a 12.05 percent total shareholder return over one year. The company's strong push into AI and on-device technology is building momentum.

eGain holds strong with AI knowledge management growth

eGain Corporation received a hold rating after its fiscal second quarter earnings report. Despite a small guidance cut and concerns about dilution, eGain's AI knowledge business is growing fast. The company reported 23% annual recurring revenue growth and secured new large enterprise clients. eGain has also improved its financial health, with an 81% SaaS gross margin and a 44% operating cash flow margin. While its valuation is less appealing than before, eGain's innovation in AI-driven knowledge management supports a positive long-term outlook.

Bitcoin surge boosts crypto and AI mining stocks

On January 5, 2026, Bitcoin broke above $92,000, briefly touching $93,000, which caused crypto stocks and miners to rise in pre-market trading. Strategy MSTR increased 3.5% to $163, with expectations of a new Bitcoin purchase. AI-linked miners like Cipher Mining CIFR, IREN, and Hive Digital HIVE also saw strong gains, with CIFR and IREN up over 2% and HIVE up 6%. Other Bitcoin miners such as MARA Holdings, Riot Platforms, and CleanSpark each rose around 3%.

Brand Engagement Network stock rises on AI pharma deal

Shares of Brand Engagement Network BNAI rose 5.3% in premarket trading on January 5, 2026, continuing a strong rally. Investors are focusing on a recently announced $250,000 AI engagement-services project with a major pharmaceutical client. This deal, made through a global advertising and communications agency, involves developing a custom AI communication method for a prescription drug. Chief Executive Tyler Luck stated the agreement shows BEN's progress in healthcare. The company reported $60,120 in revenue for the quarter ending September 30.

Meta stock gains despite AI lawsuits and inflation fears

Meta Platforms shares rose 1.2% to $658.45 in morning trading on January 5, 2026, as tech stocks rebounded. Investors are watching how heavy AI spending might affect inflation and interest rates. Legal challenges also weigh on the company, specifically copyright disputes over using data for generative AI training. Other tech companies like Alphabet, Snap, and Pinterest also saw gains. Upcoming U.S. jobs and inflation reports, along with Q4 earnings season, will be key for the market.

Meta Platforms invests heavily in AI for long-term growth

Meta Platforms is making significant investments in artificial intelligence, focusing on long-term growth despite increased costs. The company's stock price has been steady, with a 1.3% decline last week and a 3.4% decline last month, but a 3.5% return over one year. Meta's strong position in social media and its ongoing innovation in areas like the metaverse contribute to its appeal. Many investors believe these AI investments will pay off in the long run.

Better Artificial Intelligence Stock Applied Digital vs Nebius

Applied Digital and Nebius are two growing companies in the artificial intelligence space. Applied Digital, which builds data center campuses, is spinning off its cloud computing business, ChronoScale, in the first half of this year. It has secured $16 billion in lease payments over 15 years, mostly from CoreWeave. Nebius, formerly Yandex, now provides cloud-based AI infrastructure services in the U.S. and Europe. Nebius has secured major AI infrastructure contracts from tech giants like Microsoft and Meta Platforms.

Sources

• Will Reaffirmed AI Optics Demand and Supply Constraints Change Coherent's (COHR) Capacity-Driven Narrative?
• Reddit (RDDT) Is Up 7.1% After Spotlight on AI Training-Data Deals
• Do New Analyst Endorsements Validate Samsara (IOT) As A Core AI Operations Platform?
• How Alibaba’s Kunlunxin AI Chip Spin-Off and Cloud Push At Alibaba Group Holding (BABA) Has Changed Its Investment Story
• How Ultra Clean’s Role in AI Chip Supply Chains Will Impact Ultra Clean Holdings (UCTT) Investors
• Does Klaviyo’s (KVYO) New Co-CEO Structure Reframe Its AI and Go-to-Market Investment Narrative?
• 3 Best Artificial Intelligence Stocks to Buy in January
• Is Broadcom 1 of the Best AI Stocks for 2026?
• Is Broadcom 1 of the Best AI Stocks for 2026?
• History says the Nasdaq will soar in 2026: 2 AI stocks to buy now, according to Wall Street
• History Says the Nasdaq Will Soar in 2026: 2 AI Stocks to Buy Now, According to Wall Street
• Qualcomm (QCOM) Valuation Check as CES 2026 AI and Snapdragon X-Series Momentum Build
• eGain Corporation: Still A Stock To Own For AI-Driven Knowledge Management
• BTC's breakout lifts crypto equities and miners in pre-market trading
• Brand Engagement Network (BNAI) stock rises again premarket as AI pharma deal keeps traders hooked
• Meta stock rises in early trade as AI lawsuits and inflation worries hang over Big Tech
• Is Meta Platforms (META) Still Attractive After AI Investment Push And Steady Share Price?
• Better Artificial Intelligence Stock: Applied Digital vs. Nebius