Nvidia Powers AI While Microsoft Secures $9.7 Billion Deal

The artificial intelligence sector continues to demonstrate robust growth and significant market outperformance, with AI stocks collectively beating the S&P 500 by 136 percent over the last five years. The Motley Fool's 2026 AI Investor Outlook Report indicates that the top 10 AI companies saw an average return of 220 percent, compared to the S&P 500's 84 percent gain. This widespread strong performance suggests sustained investor confidence, with most survey respondents anticipating continued long-term gains for AI stocks. Investment vehicles like the VanEck Semiconductor ETF, which holds 26 chip stocks including 20% in Nvidia and nearly 11% in Taiwan Semiconductor, have delivered an impressive average annual return of almost 31% over the past decade. Major tech giants are strategically deepening their AI integration. Billionaire Chase Coleman III's Tiger Global Management portfolio highlights this trend, with significant holdings in Microsoft, Alphabet (Google), Amazon, Nvidia, Meta Platforms, Taiwan Semiconductor Manufacturing, and Broadcom. Analysts at Bank of America named Amazon, Google, and Booking as their top AI internet stocks for 2026, citing their strong AI benefits. Meanwhile, Bernstein upgraded ASML to Outperform, making it their top European semiconductor pick for 2026, raising its price target to 1,300 due to expected growth from DRAM and advanced logic demand. Advanced Micro Devices (AMD) is also expanding its data center business with EPYC processors and Instinct GPUs, targeting a $500 billion market. Beyond core infrastructure, AI applications are rapidly evolving across various industries. Manhattan Associates, on January 11, 2026, unveiled major AI upgrades to its Active Omni and Active platforms, introducing embedded agentic AI for retail and supply chain operations, alongside the Manhattan Agent Foundry for custom AI agent creation. Toast, in early January 2026, enhanced its Toast IQ assistant with real-time inventory actions, AI invoice scanning, and AI-supported digital advertising, aiming to expand its platform beyond restaurants. Visteon showcased new AI car technology at CES 2026, including an NVIDIA-powered AI-ADAS module. RingCentral, on January 7, 2026, appointed AI and cloud expert Mahmoud ElAssir to its board to bolster its AI-first strategy, supporting products like RingCX and RingSense. Furthermore, Shanghai-based generative AI startup MiniMax Group made a strong debut on the Hong Kong Stock Exchange on January 9, 2026, raising US$619 million, with shares surging 54% on its first day. Iren Limited secured a substantial $9.7 billion five-year contract with Microsoft for its Childress site, providing 750 megawatts, positioning it to meet high demand for data center power.

Key Takeaways

  • AI stocks outperformed the S&P 500 by 136% over the last five years, with the top 10 AI companies averaging a 220% return.
  • The VanEck Semiconductor ETF, holding 26 chip stocks including 20% Nvidia and nearly 11% Taiwan Semiconductor, delivered an average annual return of almost 31% over the past decade.
  • Billionaire Chase Coleman III's portfolio includes Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms, Taiwan Semiconductor Manufacturing, and Broadcom, indicating confidence in both AI hardware and application providers.
  • Bank of America named Amazon, Google, and Booking as top AI internet stocks for 2026.
  • Bernstein upgraded ASML to Outperform with a 1,300 price target, citing expected growth from DRAM and advanced logic demand.
  • Manhattan Associates launched major AI upgrades on January 11, 2026, including agentic AI and Manhattan Agent Foundry, to enhance retail and supply chain operations.
  • Toast introduced new AI-powered updates for its Toast IQ assistant in early January 2026, featuring real-time inventory actions and AI invoice scanning.
  • Visteon showcased an NVIDIA-powered AI-ADAS module and other AI car tech at CES 2026.
  • RingCentral appointed AI expert Mahmoud ElAssir to its board on January 7, 2026, to strengthen its AI-first strategy.
  • Shanghai-based generative AI startup MiniMax Group raised US$619 million in its Hong Kong IPO on January 9, 2026, with shares surging 54% on debut.
  • Iren Limited secured a $9.7 billion five-year contract with Microsoft for 750 megawatts of data center power at its Childress site.
  • Advanced Micro Devices (AMD) is growing its data center business with EPYC processors and Instinct GPUs, targeting a $500 billion market.

Manhattan Associates boosts retail and supply chain with new AI tools

Manhattan Associates announced major AI upgrades to its Manhattan Active Omni and Active platforms on January 11, 2026. These enhancements include embedded agentic AI for store and contact center teams, new AI agents, and a fulfillment optimization simulation engine. A key part of this launch is Manhattan Agent Foundry, which lets customers create or customize AI agents using natural language. These new features aim to improve retail and supply chain operations and could help the company win new contracts.

Toast adds new AI tools for retail businesses

In early January 2026, Toast announced new AI-powered updates for its Toast IQ assistant and platform. These updates include real-time inventory actions, tools to improve product catalogs, AI invoice scanning, and AI-supported digital advertising. Toast IQ can now make operational changes directly from a chat, like marking products out of stock. These new features help retailers manage daily tasks and aim to expand Toast's platform beyond restaurants.

Visteon showcases new AI car tech at CES 2026

Visteon (VC) showed off several new AI products for cars at CES 2026. These include a Snapdragon-based High-Performance Compute cockpit platform, an NVIDIA-powered AI-ADAS module, and a TomTom cognitoAI integration. Despite these announcements, Visteon's stock price has been quiet, currently at US$101.89. Analysts believe the company is undervalued, with a fair value estimate of US$133.77. However, Simply Wall St's DCF model suggests it might be overvalued at US$94.78.

RingCentral adds AI expert Mahmoud ElAssir to its board

RingCentral, Inc. (RNG) appointed Mahmoud ElAssir to its Board of Directors on January 7, 2026. ElAssir is the Chief Technology Officer at UnitedHealth Group and an expert in AI and cloud infrastructure. His experience aligns with RingCentral's focus on AI-powered communications and cloud modernization. This move aims to strengthen the company's AI-first strategy and support products like RingCX, RingSense, and AIR.

VanEck Semiconductor ETF offers strong AI investment

The VanEck Semiconductor ETF offers a way to invest in AI by holding 26 chip stocks. It has delivered an average annual return of almost 31% over the last 10 years, beating the Invesco QQQ Trust. About 20% of the fund is in Nvidia and nearly 11% in Taiwan Semiconductor, with other top holdings including Broadcom, ASML, Micron, and AMD. The fund has a low expense ratio of 0.35%, making it an affordable option for investors. It aims to provide market-beating returns while managing risk.

VanEck Semiconductor ETF offers strong AI investment

The VanEck Semiconductor ETF provides exposure to 26 chip stocks, making it a way to invest in AI. It has shown an impressive average return of almost 31% per year over the last decade, outperforming the Invesco QQQ Trust. Key holdings include Nvidia at 20% and Taiwan Semiconductor at nearly 11%, along with Broadcom, ASML, Micron, and AMD. With a low expense ratio of 0.35%, this ETF offers a balanced approach to investing in the semiconductor industry.

AI stocks outperform S&P 500 by 136 percent

New data from The Motley Fool's 2026 AI Investor Outlook Report shows that AI stocks have significantly outperformed the S&P 500. Over the last five years, AI stocks beat the S&P 500 by 136 percent. The average return for the top 10 AI companies was 220 percent, compared to the S&P 500's 84 percent gain. This report indicates that the strong performance of AI stocks was widespread, not just limited to a few companies. Most survey respondents expect AI stocks to continue delivering long-term gains.

AI stocks outperform S&P 500 by 136 percent

According to The Motley Fool's 2026 AI Investor Outlook Report, AI stocks have significantly outperformed the S&P 500 over the past five years. AI stocks collectively beat the S&P 500 by 136 percent. The average return for the 10 highest-scoring publicly traded AI companies was 220 percent, while the S&P 500 saw an 84 percent gain. This data suggests that the strong performance in the AI industry was broad, not just from one or two companies.

Analysts highlight top AI stocks and upgrades for 2026

On January 11, 2026, analysts made several big AI-related moves. Bank of America named Amazon, Google, and Booking as its top AI internet stocks for 2026, citing their AI benefits and potential. Bernstein upgraded ASML to Outperform, making it their top European semiconductor pick for 2026, raising its price target to 1,300. This upgrade is due to expected growth from DRAM and advanced logic demand. Meanwhile, Morgan Stanley cut its price target for Alibaba.

MiniMax AI company debuts on Hong Kong Stock Exchange

Shanghai-based MiniMax Group made a strong debut on the Hong Kong Stock Exchange on January 9, 2026. The generative AI startup raised US$619 million in its initial public offering, with shares surging 54% on the first day. MiniMax is the second Chinese AI model company to go public, following Z.AI's listing on January 8. Founded in December 2021, MiniMax develops advanced large language models and AI applications like MiniMax Agent and Hailuo AI video. Its products serve over 212 million users and 100,000 businesses globally.

Top AI stocks to watch in January 2024

This guide highlights key AI stocks for investors to consider in January 2024. The AI sector is growing fast, with demand for technologies across many industries. Important investment areas include semiconductors, cloud computing, AI software, robotics, and cybersecurity. Leading companies to watch are NVIDIA, Microsoft, Alphabet, Amazon, and Advanced Micro Devices. Investors should remember that AI stocks can be volatile and often have high valuations, so long-term thinking is important.

Experts discuss top AI stock picks beyond Nvidia

D.A. Davidson's Gil Luria, Wedbush Securities' Dan Ives, and Yahoo Finance's Ines Ferr discussed top AI stock picks. They shared their views on which companies are strong investments in the artificial intelligence sector. The discussion explored whether Nvidia is the only major player or if other companies also offer significant opportunities for investors.

Billionaire Chase Coleman owns 7 top AI stocks

Billionaire Chase Coleman III of Tiger Global Management holds seven key AI stocks that investors should consider for 2026. As of September 30, his top holdings include Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms, Taiwan Semiconductor Manufacturing, and Broadcom. These companies are split into AI hardware players like Nvidia and Taiwan Semiconductor, and AI application providers such as Microsoft and Alphabet. Coleman's portfolio suggests confidence in both the foundational and application layers of the AI industry.

Two AI stocks show big growth potential

Two AI stocks, Advanced Micro Devices (AMD) and Iren Limited, show strong growth potential. AMD's data center business is growing, driven by its EPYC processors and Instinct GPUs, targeting a $500 billion market. Iren Limited is well-positioned to meet the high demand for data center power. Microsoft recently signed a $9.7 billion five-year contract with Iren for its Childress site in Texas, providing 750 megawatts. Iren also has 1.4 gigawatts coming online at its Sweetwater site, with analysts predicting its revenue could grow from $510 million in 2025 to over $4 billion by 2030.

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 AI Tools AI Applications Generative AI Large Language Models Agentic AI Semiconductors Chip Stocks Data Centers Cloud Computing AI Software Retail Technology Supply Chain Management Automotive AI AI-ADAS AI Communications Investment AI Stocks ETFs Stock Market Performance Analyst Upgrades IPO Nvidia Microsoft Alphabet Amazon AMD Taiwan Semiconductor Broadcom ASML Meta Platforms Manhattan Associates Toast Visteon RingCentral MiniMax Group Iren Limited VanEck Semiconductor ETF CES 2026 Digital Advertising Inventory Management Fulfillment Optimization High-Performance Compute Investment Outlook Growth Potential

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