nvidia, microsoft and google Updates

The S&P 500 and Nasdaq have reached new record highs in 2025, continuing a robust bull market that history suggests could extend into 2026, potentially seeing the Nasdaq soar. This growth is significantly fueled by the "Magnificent Seven" tech stocks, particularly those heavily invested in artificial intelligence. Nvidia stands out as a leader in AI, having gained an impressive 1000 percent over the past three years due to its early market entry and diverse AI product offerings. Major companies like Microsoft and Alphabet continue to drive surging demand for Nvidia's advanced chips. Microsoft, a key AI player, leverages its Azure cloud platform and strategic investment in OpenAI, contributing to over 50 percent stock growth year-to-date. Similarly, Alphabet, Google's parent company, saw its stock surge to new highs in 2025, with CEO Sundar Pichai confirming that AI is delivering substantial business results across the company. Google Cloud's revenue jumped 34 percent to over $15 billion in the latest quarter, with generative AI products experiencing over 200 percent year-over-year revenue growth. More than 70 percent of Google Cloud customers now utilize AI tools, and analysts project 16 percent annualized earnings growth for Alphabet in the coming years. Both Microsoft and Alphabet are seen as potentially undervalued, offering unique buying opportunities. Among the "Magnificent Seven," Meta Platforms and Alphabet are currently the most affordably priced, presenting a rare buying chance. Meta plans to integrate AI to transform advertising across its platforms like Facebook and Instagram, aiming to boost revenue. Beyond these giants, KKR has made significant investments in AI security and data centers, including a $700 million round in Saviynt and a multibillion-dollar deal with Compass Datacenters, reflecting the growing need for AI infrastructure. The AI sector sees diverse activity from other companies. C3.ai recently secured major U.S. government contracts with the Army and the Department of Health and Human Services, validating its technology and stabilizing its stock. BigBear.ai expanded its global footprint by opening its first Middle East office in Abu Dhabi, while also increasing authorized common shares to 1 billion to support future capital raising and expansion. Oracle's upcoming earnings report is expected to influence AI cloud and tech ETFs, especially given its role as a key infrastructure provider for OpenAI and the rising competition from Google's Gemini. Even Rivian is emphasizing an AI-centric approach for its autonomous capabilities, hosting an "Autonomy and AI Day" to attract investors. While some companies like YQ reported a 66 percent revenue drop in Q3 2025 due to business model changes, they are launching new AI-powered products with positive market feedback. Nebius Group, spun off from Yandex to focus on AI data centers, saw its stock fall nearly 30 percent amid concerns about an "AI bubble" and wider-than-expected losses, despite a contract with Microsoft. Meanwhile, Thematic Exchange Traded Funds (ETFs) focused on AI and robotics surged in 2025, with total assets under management reaching $188 billion, indicating strong investor interest in the broader AI landscape.

Key Takeaways

• Nasdaq and S&P 500 reached new record highs in 2025, with a strong bull market expected to continue into 2026, driven by AI.
• Nvidia, a leader in AI, gained 1000 percent over three years, with Microsoft and Alphabet driving demand for its chips.
• Microsoft's stock grew over 50 percent year-to-date, fueled by its Azure cloud platform and investment in OpenAI.
• Alphabet's stock surged in 2025 due to AI investments, with Google Cloud revenue up 34% to over $15 billion and generative AI product revenue growing over 200% year-over-year.
• Meta Platforms and Alphabet are currently the cheapest among the "Magnificent Seven" AI leaders, presenting a buying opportunity, with Meta planning AI integration for advertising.
• KKR invested $700 million in AI security firm Saviynt and a multibillion-dollar deal in Compass Datacenters, highlighting demand for AI infrastructure.
• C3.ai secured major U.S. government AI contracts with the Army and HHS, boosting investor confidence and stabilizing its stock.
• BigBear.ai opened its first Middle East office in Abu Dhabi and increased authorized shares to 1 billion for global expansion and capital flexibility.
• Oracle, a key infrastructure provider for OpenAI, faces rising competition from Google's Gemini, with its upcoming earnings report expected to impact AI cloud and tech ETFs.
• Thematic ETFs focused on AI and robotics saw a significant surge in 2025, reaching $188 billion in assets under management.

Nasdaq may soar in 2026, consider Nvidia AI stock

The S&P 500 and Nasdaq reached new record highs in 2025, continuing a strong bull market. History suggests bull markets last over five years and increase more than 191 percent, meaning the Nasdaq could soar in 2026. Nvidia, a leader in AI, is a key stock to watch. It has already gained 1000 percent over three years due to its early entry and wide range of AI products. Nvidia continues to see surging demand for its chips from major companies like Microsoft and Alphabet.

Two Magnificent Seven AI stocks offer rare buying chance

The Magnificent Seven tech stocks have driven the S&P 500's bull market, but some are now expensive. However, Meta Platforms and Alphabet are currently the cheapest among these AI leaders, presenting a unique buying opportunity. Meta plans to use AI to transform advertising on its platforms like Facebook and Instagram, potentially boosting revenue. Alphabet uses AI in Google Search and its Google Cloud business, which saw revenue jump 34 percent to over $15 billion in the latest quarter.

Alphabet AI stock shows strong growth potential for investors

Alphabet's stock surged to new highs in 2025 due to strong financial results driven by its artificial intelligence investments. CEO Sundar Pichai noted that AI is delivering real business results across the company. Revenue from generative AI products grew over 200 percent year over year, and more than 70 percent of Google Cloud customers now use AI tools. Despite a 67 percent year-to-date gain, the stock remains reasonably valued at 29 times 2026 earnings estimates. Analysts expect 16 percent annualized earnings growth for Alphabet in the coming years.

BigBear.ai expands to Middle East, boosts share authorization

BigBear.ai opened its first Middle East office at the World Trade Center Abu Dhabi, strengthening local partnerships with Vigilix and Easy Lease. Shareholders also approved a large increase in authorized common shares to 1,000,000,000 and stricter bylaw rules on proxy contests. This move gives BigBear.ai more flexibility to raise capital for global expansion, including its Middle East growth. The company aims for $162.2 million in revenue and $10.3 million in earnings by 2028, requiring 2.1 percent yearly revenue growth. Investors are watching how this capital flexibility and international expansion will affect the company's future.

KKR invests in AI security and data centers

KKR has made significant investments in AI security and data centers, including a $700 million round in Saviynt and a multibillion dollar deal with Compass Datacenters. These moves are tied to the growing demand for AI infrastructure. KKR's share price recently rose 13.05 percent in one month, though its one-year return is still negative. The stock closed at $135.78, with some analysts suggesting a fair value near $158. However, KKR trades at 53 times earnings, much higher than the industry average of 25 times.

C3.ai wins US Army and HHS AI contracts

C3.ai recently secured two major U.S. government contracts with the Army and the Department of Health and Human Services. These wins have boosted investor confidence, causing the stock to stabilize near $16.03 with an 11.6 percent gain in seven days. The contracts validate C3.ai's technology and offer significant, predictable revenue streams. Despite a challenging period since its December 2020 IPO, these federal deals signal strong endorsement of the company's AI capabilities. C3.ai still needs to show a clear path to profitability amid intense competition in the AI sector.

YQ revenue drops 66 percent, new AI products show promise

YQ's revenue in Q3 2025 fell by 66 percent due to a change in its business model. Despite this decline, the company's operating expenses and net loss have narrowed year-to-date. YQ has launched new AI-powered products that are receiving positive feedback from the market. The company also maintains strong cash reserves, which will help support its ongoing innovation and future growth plans.

Microsoft and Alphabet AI stocks offer rare opportunity

The S&P 500 saw strong gains in 2023, largely driven by the "Magnificent Seven" tech stocks, including Microsoft and Alphabet. These companies benefit from strong earnings and the growing artificial intelligence market. Microsoft is a major AI player with its Azure cloud platform and investment in OpenAI, leading to over 50 percent stock growth year to date. Alphabet, Google's parent company, powers its search engine with AI and heavily invests in AI research and development. Both companies' AI potential suggests they may still be undervalued, offering a unique buying chance for investors.

Nebius Group AI stock falls but future looks promising

Nebius Group's stock has fallen nearly 30 percent since mid-October due to concerns about an AI bubble and wider-than-expected losses. The company reported $146.1 million in revenue but a $119.6 million loss for the three months ending September, exceeding analyst estimates. Nebius Group was spun off from Yandex in mid-2024 to focus on AI data centers. Despite current losses, its contract with Microsoft and potential for new business suggest a promising future. The recent stock volatility may be a normal adjustment for this young company.

Thematic ETFs surge in 2025 driven by AI investors

Thematic Exchange Traded Funds, or ETFs, saw a significant surge in 2025, with total assets under management reaching $188 billion. This growth was partly fueled by investors interested in artificial intelligence and robotics. Jon Maier, Chief ETF Strategist at J.P. Morgan Asset Management, noted the rise of these specific thematic ETFs. The trend also includes the emergence of actively managed ETFs, fixed-income funds, and 401(k) investing. J.P. Morgan manages its own US Tech Leaders ETF and Hedged Equity Laddered Overlay ETF.

Oracle earnings may impact AI cloud and tech ETFs

Oracle Corp.'s upcoming earnings report on Wednesday is expected to significantly influence the artificial intelligence trade for cloud and tech ETFs. Analysts predict Oracle will report $1.23 in earnings per share on $13.05 billion in revenue. As a key infrastructure provider for OpenAI, Oracle's results could affect various ETFs, including those focused on cloud computing, software, AI, robotics, digital infrastructure, and semiconductors. Rising competition from Google's Gemini and concerns about Oracle's debt-fueled expansion are also factors investors are watching closely.

Rivian uses AI and autonomy to attract investors

Rivian is focusing on artificial intelligence and autonomous driving technology to attract investors as electric vehicle sales slow down. The company will host its first "Autonomy and AI Day" on Thursday to showcase its in-house software and technologies. CEO RJ Scaringe emphasizes an AI-centric approach for Rivian's autonomous capabilities. While Rivian's shares are up 33 percent this year, they remain nearly 80 percent below its 2021 IPO price. The company hopes to increase confidence in its future vehicles and potentially license its technologies to others.

Sources

• History Says the Nasdaq Will Soar in 2026. Here's the 1 AI Stock to Buy Before It Does.
• These 2 Magnificent Seven AI Stocks Might Be Offering Investors a Once-in-a-Decade Buying Opportunity Before the New Year.
• 1 Artificial Intelligence (AI) Stock That Should Be on Every Investor's Holiday List
• Is BigBear.ai (BBAI) Trading Governance Flexibility For Long-Term Strategic Freedom In The Middle East?
• KKR (KKR): Valuation Check After Major AI Security and Data Center Investments
• C3.ai (AI) Valuation Review After New U.S. Army and HHS Federal AI Contracts Boost Investor Optimism
• YQ: Q3 2025 revenue dropped 66%, but new AI products and strong cash reserves support future growth
• These 2 magnificent seven AI stocks might be offering investors a once-in-a-decade buying opportunity before the new year
• The Real Reason This AI Stock Is Falling, and Why It Might Not Matter
• Thematic ETFs surged in 2025, thanks in part to AI investors
• Oracle Earnings Could Reset The AI Trade For Cloud & Tech ETFs - Global X Artificial Intelligence & Technology ETF (NASDAQ:AIQ), Global X Robotics & Artificial Intelligence ETF (NASDAQ:BOTZ)
• Rivian turns to AI, autonomy to woo investors as EV sales stall