The rapid adoption of artificial intelligence continues to drive significant growth across the tech sector, with companies like Nvidia, Micron Technology, and Taiwan Semiconductor (TSMC) consistently surpassing Wall Street's sales and earnings predictions. These firms are at the forefront of the booming AI infrastructure market, benefiting from massive investments. Tech giants such as Meta, Alphabet, and Amazon are collectively planning to spend an estimated $400 billion on AI infrastructure this year and into 2026, highlighting the intense demand for underlying AI capabilities.
Alphabet is significantly boosting its AI ambitions across multiple fronts. Its self-driving car company, Waymo, recently secured $16 billion in funding, raising its valuation to $126 billion, with plans to expand services to 20 new U.S. cities and internationally by 2026. Furthermore, Google Gemini now boasts 750 million monthly active users, and Apple's decision to integrate Gemini as the AI model for a new Siri version is expected to generate billions of dollars for Alphabet. Google Cloud also reported robust growth, with revenue surging to $17.6 billion in the fourth quarter.
Beyond the major players, the AI investment landscape remains dynamic. Anthropic, a rival to OpenAI, is nearing a substantial funding round, with Abu Dhabi's MGX close to investing hundreds of millions. Anthropic aims to raise over $20 billion in total, potentially valuing the company at $350 billion, following previous investments of $7.3 billion from Amazon and Google. In the supply chain security space, Lema AI, a startup founded in 2023, raised $24 million in Series A funding, with Salesforce Ventures among the participants, to advance its agentic AI model for identifying operational risks.
Databricks also reported strong performance, achieving a $5.4 billion revenue run rate with 65% year-over-year growth, of which over $1.4 billion came from its AI products. The company recently closed a $5 billion funding round at a $134 billion valuation. Meanwhile, Microsoft's Azure cloud business saw impressive 39% year-over-year growth in Q2, driven by strategic AI investments despite investor concerns over increasing capital expenditures. Microsoft's partnership with OpenAI is crucial for integrating AI into products like Microsoft 365 and Azure, laying groundwork for future growth.
AI's impact extends to specialized sectors, as seen with Bristol Myers Squibb partnering with Evinova to integrate AI tools into designing and running clinical trials, aiming to accelerate drug development. In the broader market, emerging-market stocks are nearing record highs as initial worries about AI spending subside. However, foreign investors sold $9.79 billion in Asian stocks in early February, primarily in South Korea and Taiwan, due to a global decline in high-growth tech shares. Conversely, Chinese AI intelligence model developers Knowledge Atlas and MiniMax saw their shares climb significantly after bullish recommendations from JPMorgan Chase & Co., with analysts predicting substantial annual revenue growth for both through 2030.
Key Takeaways
- Nvidia, Micron Technology, and TSMC are outperforming Wall Street expectations, driven by strong demand in the AI infrastructure market.
- Major tech companies like Meta, Alphabet, and Amazon plan to spend an estimated $400 billion on AI infrastructure this year and in 2026.
- Alphabet's Waymo raised $16 billion, reaching a $126 billion valuation, and plans to expand services to 20 new U.S. cities and internationally by 2026.
- Google Gemini has 750 million monthly active users, and Apple will use it for a new Siri version, bringing billions to Alphabet.
- Anthropic is seeking to raise over $20 billion, potentially valuing the company at $350 billion, with Abu Dhabi's MGX nearing investment and previous funding from Amazon and Google.
- Lema AI, a supply chain security startup, secured $24 million in Series A funding, with Salesforce Ventures participating, to develop its agentic AI model.
- Databricks achieved a $5.4 billion revenue run rate, with over $1.4 billion from AI products, and closed a $5 billion funding round at a $134 billion valuation.
- Microsoft's Azure cloud business grew 39% year-over-year in Q2, fueled by significant AI investments and its partnership with OpenAI.
- Bristol Myers Squibb is using AI tools through a partnership with Evinova to accelerate and improve drug development and clinical trials.
- Chinese AI firms Knowledge Atlas and MiniMax saw stock gains after JPMorgan recommendations, with predicted annual revenue growth of 127% and 138% respectively through 2030.
Nvidia Micron TSMC Outperform as AI Adoption Soars
Nvidia, Micron Technology, and Taiwan Semiconductor (TSMC) recently surpassed Wall Street's sales and earnings predictions. These companies are leaders in the rapidly growing AI infrastructure market. Tech giants like Meta, Alphabet, and Amazon plan to spend an estimated $400 billion on AI infrastructure this year. This significant spending helps these AI stocks continue to grow faster than expected. Analysts find it challenging to accurately predict the accelerating adoption of AI.
Top AI Stocks Beat Wall Street Predictions as Adoption Grows
Nvidia, Micron Technology, and Taiwan Semiconductor (TSMC) continue to exceed Wall Street's sales and earnings estimates. These companies are key players in the fast-growing AI infrastructure market. Major tech companies such as Meta, Alphabet, and Amazon will spend at least $400 billion on AI infrastructure in 2026. This rapid increase in AI adoption makes it difficult for analysts to forecast future growth. These three companies should continue to see strong sales and earnings growth.
Waymo Raises 16 Billion Alphabet Boosts AI Ambitions
Alphabet's self-driving car company, Waymo, recently raised $16 billion, increasing its valuation to $126 billion. Waymo plans to expand its services to 20 new U.S. cities and internationally, including Tokyo and London, in 2026. The autonomous vehicle market could reach an estimated $2.2 trillion by 2030. Alphabet also sees strong AI growth with Google Gemini, which now has 750 million monthly active users. Apple will use Gemini as the AI model for a new Siri version, bringing billions of dollars to Alphabet. Google Cloud revenue surged to $17.6 billion in the fourth quarter, contributing to Alphabet's $400 billion annual revenue in 2025.
Bristol Myers Squibb Uses AI to Speed Up Drug Trials
Bristol Myers Squibb partnered with Evinova to use AI tools in designing and running clinical trials. This collaboration aims to speed up and improve drug development across its pipeline. Analysts have updated success probabilities for several key therapies due to this strategic move. The company expects multiple important clinical data readouts in 2026 across major therapeutic areas. Integrating AI should enhance trial efficiency and success, helping deliver new medicines to patients faster.
Foreign Investors Sell Asian Tech Stocks Amid AI Rout
Foreign investors sold a net $9.79 billion worth of Asian stocks in the first week of February. This selloff mainly affected South Korea and Taiwan due to a global decline in high-growth technology shares and concerns over AI-related spending. South Korea saw $7.48 billion in foreign stock sales, while Taiwan experienced $3.43 billion in divestment. However, India, Thailand, Indonesia, and the Philippines attracted foreign inflows during the same period. Nomura suggested maintaining diversified portfolios due to the crowded positioning in popular tech themes.
Lema AI Raises 24 Million for Supply Chain Security
Lema AI, a supply chain security startup, raised $24 million in a Series A funding round. Team8 led the investment, with Salesforce Ventures also participating. The company uses an agentic AI model that acts like a vulnerability researcher to continuously analyze vendor behavior and access. This platform identifies which vendors pose the greatest operational risk by mapping realistic attack paths. Lema AI, founded in 2023, plans to use the capital to accelerate research and development and expand its market reach.
Abu Dhabi's MGX Nears Investment in Anthropic Fundraise
Abu Dhabi's MGX is close to investing hundreds of millions of dollars in Anthropic's funding round. Anthropic aims to raise over $20 billion in total, which would value the company at $350 billion. MGX has also invested in other AI companies like OpenAI and Elon Musk's xAI. This latest funding round would nearly double Anthropic's prior valuation. Anthropic, a rival to OpenAI, previously secured $7.3 billion from Amazon and Google just five months ago.
JPMorgan Boosts China AI Stocks Knowledge Atlas MiniMax Soar
JPMorgan Chase & Co. recommended buying shares of Chinese AI intelligence model developers Knowledge Atlas, also known as Zhipu, and MiniMax. Following these bullish calls, Knowledge Atlas shares climbed 24% and MiniMax gained 11%. Both companies went public last month in Hong Kong, benefiting from strong AI interest. JPMorgan analysts predict MiniMax's revenue will grow 138% annually through 2030, and Zhipu's by 127%. They expect both companies to become profitable by 2029.
Emerging Market Stocks Climb as AI Spending Worries Fade
Emerging-market stocks are hovering near record highs as concerns about artificial intelligence spending lessen. Currencies also gained after new US data showed retail sales. Taiwan Semiconductor Manufacturing Co. (TSMC) hit a record high after reporting its fastest January sales growth in months. BlackRock strategists believe emerging markets are key to the AI buildout, from industrial metals to manufacturing supply chains. Strong demand for tech hardware from Taiwanese companies led Bank of America Corp. to raise its price target for TSMC.
Databricks Hits 5.4 Billion Revenue Driven by AI Products
Databricks announced it reached a $5.4 billion revenue run rate, showing 65% year-over-year growth. Over $1.4 billion of this revenue came from its AI products. Co-founder and CEO Ali Ghodsi explained that AI interfaces like Genie make data analytics accessible to more users. The company recently closed a $5 billion funding round at a $134 billion valuation and secured a $2 billion loan facility. Databricks continues to invest in AI-native infrastructure, including its Lakebase database, to combine enterprise data platforms with AI-driven software.
Microsoft AI Investments Drive Azure Growth Despite Capex
Microsoft's stock is down 25% due to investor concerns about its increasing capital expenditures for AI infrastructure. However, analysts view these fears as overblown, seeing it as a long-term buying opportunity. Azure, Microsoft's cloud business, grew an impressive 39% year-over-year in Q2, limited only by data capacity, not demand. Microsoft's investments in data centers and AI-specific chips are crucial for its growing cloud business and AI services. The company's partnership with OpenAI gives it a unique advantage, integrating AI into products like Microsoft 365 and Azure. These investments are laying the groundwork for sustained growth and profitability in the AI future.
Sources
- Why Artificial Intelligence (AI) Adoption Is Accelerating Faster Than Wall Street Expected
- Why Artificial Intelligence (AI) Adoption Is Accelerating Faster Than Wall Street Expected
- Waymo Just Raised Another $16 Billion. Does That Make Alphabet the Ultimate AI Stock for 2026?
- Bristol Myers Squibb AI Trials And 2026 Readouts Reframe Valuation
- Foreign investors pull from Asian stocks as AI-driven tech rout spreads
- Supply chain security start-up Lema AI bags $24m
- MGX Said to Near Investment in Anthropic’s $20 Billion Fundraise
- JPMorgan Bullish Calls Spur Surge in a Pair of China AI Stocks
- Emerging-Market Stocks Rise Anew as AI Spending Jitters Ease
- Databricks Reports $5.4B Revenue Run Rate as AI Products Drive Growth
- Microsoft's AI Spend Looks Scary, Until You Run The Numbers
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