Nvidia Microsoft and OpenAI lead AI news

Wall Street analysts are shifting focus toward Broadcom as a potential AI stock favorite, citing a recent BUY rating with a $415.95 price target. The company reported a 221% surge in AI semiconductor revenue to $16.70 billion, with guidance pointing to $21.7 billion for the fourth quarter. Management projects fiscal 2027 AI revenue will double to $115 billion, matching NVIDIA's valuation multiple but forecasting faster growth.

Dell Technologies also received a strong BUY rating with a $568.76 price target, driven by a record $95 billion AI server backlog. The company booked $60.9 billion in AI orders and serves over 6,500 AI customers. Shares have climbed 306.45% year to date, though free cash flow dropped 47.2% to $986 million while shareholders' equity turned negative at -$1.43 billion.

In the software sector, ServiceNow shares fell 14% after its outlook failed to fully quell AI disruption fears. While subscription revenue is expected to grow up to 23%, current remaining performance obligations expanded only 18%, slightly below analyst projections. The company raised its AI annual contract value target to $1.7 billion by year-end, noting agentic AI consumption grew 13 times compared to last year.

Major tech giants are navigating divergent financial outcomes from their AI investments. Microsoft received $10 billion from OpenAI in the September quarter, representing about 11% of its $92 billion revenue, while OpenAI's unpaid bills to Microsoft rose to roughly $7 billion. Conversely, Alphabet took a nearly $9 billion loss on AI-related holdings and spent $51 billion on data centers, even as Google Cloud revenue doubled to $31 billion.

Competitive dynamics are intensifying in the model space. Google's Gemini 4 Carbon model topped the Artificial Analysis Intelligence Index, prompting OpenAI to halve the price of its mid-tier model. Anthropic remains a key player in this ecosystem. Meanwhile, Block unveiled Dessa, a full-duplex speech model trained solely on human conversation audio, which runs faster than real time on a MacBook Pro M4 Max.

NVIDIA continues to expand its speech capabilities with Nemotron 3.5 Transcribe, an open-weights model supporting 40 languages and audio up to one hour. The model features roughly 34B total parameters and can run on a single H100 GPU. SecurityScorecard has also launched the TPRM Benchmark to evaluate AI models on vendor risk tasks, grading autonomy readiness from L0 to L4.

Security concerns regarding AI deepfakes are escalating, with experts warning of threats to consumers and voters. Fewer than 10% of people can recognize audio deepfakes, and political campaigns spent over $137 million on AI-generated ads ahead of the 2026 midterms. Veriff reported a 300% increase in deepfake-related fraud attempts against businesses this year compared to 2025.

Regulatory and cultural friction points are emerging as well. A UK researcher, David Durman, secured a religious exemption from mandatory AI use at work, arguing that offloading thinking to large language models violates his humanist beliefs. This marks a first-of-its-kind case under Title VII.

Market activity in Japan also reflects growing AI interest. The Japan Exchange Group reported half-year revenue of JPY 131,509 million, driven by trading services tied to foreign interest in AI-related equities. The company announced a higher dividend and a planned share split effective April 1, 2027.

Investment strategist Gene Munster discussed Amazon's Q3 struggles on CNBC, attributing challenges to personal AI bots impacting retail business and shifting consumer behavior. He highlighted how these tools are weighing on the company's traditional performance metrics.

Key Takeaways

  • Broadcom received a BUY rating with a $415.95 price target as AI semiconductor revenue surged 221% to $16.70 billion.
  • Dell Technologies booked $60.9 billion in AI orders with a record $95 billion server backlog, driving shares up 306.45% year to date.
  • ServiceNow shares dropped 14% after raising its AI annual contract value target to $1.7 billion despite slowing backlog growth.
  • Microsoft received $10 billion from OpenAI, while Alphabet took a nearly $9 billion loss on AI-related holdings.
  • Google's Gemini 4 Carbon ranked first on the Artificial Analysis Intelligence Index, prompting OpenAI to cut prices.
  • Block released Dessa, a full-duplex speech model trained only on human conversation audio without text.
  • NVIDIA launched Nemotron 3.5 Transcribe, supporting 40 languages and running on a single H100 GPU.
  • Security experts warn that fewer than 10% of people can recognize audio deepfakes, with fraud attempts up 300%.
  • A UK researcher obtained a religious exemption from mandatory AI use at work under Title VII.
  • The Japan Exchange Group saw revenue boost from foreign interest in AI equities, planning a share split in 2027.

Broadcom May Be Wall Street's Next Big AI Stock Pick

Broadcom is getting a BUY rating with a price target of $415.95 from 24/7 Wall St. Its AI semiconductor revenue grew 221% to $16.70 billion. The stock is up only 0.77% year to date, sitting 29.7% below its 52-week high. Bank of America, Blackstone, Citi and Morgan Stanley announced a $63 billion financing structure for AI compute capacity built around Broadcom.

Prediction: Wall Street's Next AI Favorite May Not Be Nvidia

Broadcom earns a BUY rating with a $415.95 price target and 90% confidence level. AI semiconductor revenue surged 221% to $16.70 billion with fourth-quarter guidance of $21.7 billion. Broadcom trades at 44x trailing P/E, the same as NVIDIA, but guides to faster AI growth. Management expects fiscal 2027 AI revenue to double to $115 billion.

Dell Technologies Could Be the Next AI Stock to Break Out

Dell Technologies received a BUY rating with a $568.76 price target and 90% confidence. Its AI server backlog hit a record $95 billion while AI-optimized servers brought in $16.40 billion last quarter. Dell shares are up 306.45% year to date. The company booked $60.9 billion in AI orders and has more than 6,500 AI customers.

The Next AI Stock to Break Out May Not Be on Most Investors' Radar

Dell Technologies earned a BUY rating with a $568.76 price target from 24/7 Wall St. In fiscal Q2, revenue rose 57.8% to $46.97 billion and non-GAAP EPS hit $7.04. Traditional servers grew 122% and ISG operating margin expanded to 15% from 8.8%. Free cash flow fell 47.2% to $986 million and shareholders' equity stands at negative $1.43 billion.

Block Unveils Dessa, a Full-Duplex Speech Model

Block's AI research lab released Dessa, a speech-to-speech model that is full-duplex, meaning it listens while it talks. Dessa was trained only on human conversation audio with no text and no pretrained models. It runs faster than real time on a MacBook Pro M4 Max or better. Block says Dessa learned language from hundreds of times fewer words than LLMs need.

NVIDIA launches Nemotron 3.5 Transcribe for 40-language transcription

NVIDIA released Nemotron 3.5 Transcribe, an open-weights speech model that handles 40 languages and audio up to 1 hour. The model has about 34B total parameters with roughly 4.3B active parameters. It can run on a single H100 GPU in BF16 and offers FP8 and NVFP4 checkpoint options. The model supports verbatim, written, speaker-attributed, contextual and translated output styles.

ServiceNow stock drops after quarterly outlook fails to ease AI concerns

ServiceNow shares fell 14% in extended trading after its quarterly outlook met estimates but did not calm fears about AI disruption. Subscription revenue is expected to grow up to 23%, while current remaining performance obligations will expand over 18%, just below analyst projections. The company raised its AI annual contract value target to $1.7 billion by end of December. Agentic AI consumption grew 13 times compared to last year.

ServiceNow shares slide on slowing backlog growth despite AI gains

ServiceNow shares declined as investors worried about slowing backlog growth despite strong AI performance. The company raised its 2026 AI annual contract value target to $1.7 billion from $1.5 billion. Fourth-quarter cRPO growth is expected at 18.5%, down from 21% in the third quarter. Third-quarter subscription revenue rose 20.5% to $4 billion, beating estimates. Agentic AI production consumption increased over 13-fold year over year.

Japan Exchange Group sees earnings boost from AI trading interest

Japan Exchange Group reported half-year revenue of JPY 131,509 million and net income of JPY 57,210 million. The company announced a higher JPY 41.00 second-quarter dividend and a planned share split effective April 1, 2027. Trading services tied to foreign interest in AI-related equities drove the earnings jump. The results highlight how increased market activity feeds into the company's fee-based model.

Microsoft and Alphabet sit on opposite sides of AI spending battle

Microsoft and Alphabet reported different outcomes from their AI investments after quarterly earnings. Microsoft received $10 billion from OpenAI in the September quarter, about 11% of its $92 billion revenue. OpenAI's unpaid bills to Microsoft rose to about $7 billion. Alphabet took a nearly $9 billion loss on AI-related holdings and spent $51 billion on data centers and equipment. Google Cloud revenue doubled to about $31 billion with a contract backlog rising to $561 billion.

SecurityScorecard launches AI benchmark for third-party risk and attack resistance

SecurityScorecard released a benchmark called the TPRM Benchmark to test AI models on vendor risk tasks. It measures how well models handle exposure triage and fourth-party risk, and grades them from L0 to L4 on autonomy readiness. The Model Security suite also tests resistance to prompt injection and jailbreaks, grading from A to F. The framework is open source, and a public leaderboard is available for self-testing.

Security experts warn AI deepfakes threaten consumers and voters

Security experts say AI deepfakes are becoming a major risk for consumers and voters. Fewer than 10% of people can recognize an audio deepfake, and in one test only 8% realized they were speaking to an AI. Political campaigns spent over $137 million on at least 220 AI-generated ads ahead of the 2026 midterms. Veriff reported a 300% increase in deepfake-related fraud attempts against businesses this year compared with 2025.

UK researcher gets religious exemption from mandatory AI use at work

David Durman, a research administrator at the University of Kentucky, received a religious accommodation under Title VII to avoid using AI at work. He argues that offloading thinking to large language models violates his beliefs as a humanist. The university granted the exemption, making it a first-of-its-kind case.

Google tops AI ranking as OpenAI cuts prices

Google's Gemini 4 Carbon model ranked first on the Artificial Analysis Intelligence Index, beating OpenAI and Anthropic. OpenAI responded by halving the price of its mid-tier model. Block and Rime released voice models that process speech directly instead of transcribing it first. Nvidia and Liquid AI also shipped small free models that run on PCs and phones without the cloud.

Gene Munster discusses personal AI bots and Amazon's business struggles

Gene Munster of Deepwater Asset Management appeared on CNBC's Fast Money to discuss Amazon's Q3 struggles. He talked about how personal AI bots are impacting Amazon's retail business and what he believes is weighing on the company. The discussion focused on changes in consumer behavior driven by AI tools.

Sources

NOTE:

This news brief was generated using AI technology (including, but not limited to, Google Gemini API, Llama, Grok, and Mistral) from aggregated news articles, with minimal to no human editing/review. It is provided for informational purposes only and may contain inaccuracies or biases. This is not financial, investment, or professional advice. If you have any questions or concerns, please verify all information with the linked original articles in the Sources section below.

AI Stocks AI Semiconductors AI Revenue AI Growth AI Orders AI Backlog AI Shares AI Disruption AI Investments AI Models AI Speech AI Deepfakes AI Fraud AI Regulation AI Market AI Consumer Behavior AI Exemption AI Revenue Growth AI Dividend AI Share Split

Comments

Loading...