Nvidia Stock Dips While AMD Prepares for AI Demand

Oracle's recent financial results have sent ripples through the AI sector, sparking renewed investor concerns about the high costs and uncertain returns of artificial intelligence investments. The company's stock dropped over 11% after missing third-quarter revenue estimates for the period ending November 30, losing approximately $70 billion in value overnight. This decline also impacted other AI-related stocks, including Nvidia, Alphabet (Google), and SoftBank, as Wall Street closely monitors trends in AI cloud infrastructure and chip demand. Despite reporting a 14% year-over-year revenue growth to $16 billion and beating earnings per share estimates at $2.26, Oracle's cloud computing and infrastructure businesses grew slower than forecast. The company announced a significant $15 billion increase in AI spending for fiscal year 2026, pushing its long-term debt up 25% to $99.9 billion. While Oracle Cloud Infrastructure executive vice president Mark Magouyrk stated the AI buildout will cost much less than the $100 billion analysts expected, the substantial capital expenditure, often financed by debt, raises questions about monetization strategies. Chairman Larry Ellison affirmed a "chip neutrality" policy, indicating collaboration with all CPU and GPU suppliers. The immense power requirements of AI data centers are becoming a critical focus. Boom Supersonic, known for its supersonic jets, secured $300 million in funding by pivoting to power AI data centers. CEO Blake Scholl recognized the severe power shortages and adapted their Symphony engine design into a 42-megawatt Superpower turbine, which uses natural gas and no water. Boom plans to build a "Superpower Superfactory" to produce over 4 gigawatts annually by 2030, with the first turbine already in production. This highlights the urgent need for power, as tech companies are projected to spend $400 billion on AI infrastructure this year. Separately, power company Drax intends to add one gigawatt of data center capacity to its Yorkshire plant by 2027. In the competitive AI software and hardware space, analysts predict that Alibaba and AMD could surpass Palantir Technologies in value by the end of 2026. Palantir's stock surged 146% in 2025, driven by a 110% increase in adjusted earnings per share and a 2.5 times jump in contract bookings in Q3, with its remaining deal value growing 91% to $8.6 billion. However, its high valuation makes some cautious. Alibaba, a major Chinese e-commerce and cloud provider, is investing 120 billion yuan, or $17 billion, in AI infrastructure, with its AI services revenue growing triple-digits for nine quarters. AMD, a crucial supplier of high-performance processors and graphics cards, is well-positioned for the rising demand in AI computing. Other significant developments include reports that OpenAI and Microsoft are discussing a massive $100 billion investment in a new AI chip venture, underscoring the push for proprietary hardware. Meanwhile, Astera Labs, a semiconductor company focused on AI infrastructure, received a raised price target to $195.00 and a "Buy" rating from H.C. Wainwright on December 9. In a different application of AI, the dating startup Keeper, founded in 2022, raised $4 million in pre-seed funding in October 2024, claiming its AI can find "soulmates" for a fee, including a $50,000 "marriage bounty" for men.

Key Takeaways

• Oracle's stock fell over 11% after missing Q3 revenue estimates, losing $70 billion in value and raising concerns about AI investment costs.
• Oracle plans a $15 billion increase in AI spending for fiscal year 2026, pushing its long-term debt to $99.9 billion, despite an EVP stating AI buildout costs will be less than $100 billion.
• The power demands of AI data centers are critical, with Boom Supersonic securing $300 million to produce 42-megawatt Superpower turbines and Drax planning 1 gigawatt of data center capacity by 2027.
• Tech companies are expected to spend $400 billion on AI infrastructure this year, highlighting the urgent need for power solutions.
• Analysts predict Alibaba and AMD could outperform Palantir by 2026; Alibaba invests $17 billion in AI infrastructure, and AMD supplies crucial AI processors.
• Palantir's stock surged 146% in 2025, with Q3 contract bookings up 2.5 times and remaining deal value at $8.6 billion, but its high valuation prompts caution.
• OpenAI and Microsoft are reportedly discussing a $100 billion investment in a new AI chip venture.
• Astera Labs, a semiconductor company for AI infrastructure, received a raised price target to $195.00 and a "Buy" rating from H.C. Wainwright on December 9.
• AI dating startup Keeper raised $4 million in pre-seed funding in October 2024, claiming to find "soulmates" and charging men a $50,000 "marriage bounty" if they marry.
• Oracle's financial results caused other AI-related stocks like Nvidia, Alphabet (Google), and SoftBank to decline.

Alibaba and AMD May Outperform Palantir by 2026

Palantir stock has seen huge growth, up 148% in 2025, but its high valuation makes some analysts cautious for 2026. Experts predict that Alibaba and AMD could surpass Palantir's value by the end of 2026. Alibaba, a major Chinese e-commerce and cloud provider, is heavily investing 120 billion yuan or $17 billion in AI infrastructure. Its AI services revenue grew triple-digits for nine quarters, and its retail business helps fund cloud expansion. Alibaba's stock valuation appears more appealing than Palantir's.

Alibaba and AMD May Outperform Palantir by 2026

Analysts predict that Alibaba and Advanced Micro Devices (AMD) could become more valuable than Palantir Technologies by the end of 2026. Palantir has grown significantly with its AI software, but Alibaba and AMD show potential for even faster growth. Alibaba, a Chinese tech giant, invests heavily in AI research and its cloud arm is a major AI infrastructure provider. AMD supplies crucial high-performance processors and graphics cards for AI models, positioning it well for rising demand in AI computing.

Oracle Stock Falls After Missing Revenue Forecasts

Oracle's stock dropped over 11% after the company missed its third-quarter revenue estimates for the period ending November 30. Investors are concerned about Oracle's high spending on AI infrastructure and its financing needs. However, Oracle Cloud Infrastructure executive vice president Mark Magouyrk stated that the AI buildout will cost much less than the $100 billion analysts expected. Despite the revenue miss, Oracle saw 14% year-over-year revenue growth and its earnings per share of $2.26 beat estimates. Net income also significantly increased to $6.14 billion.

Wall Street Eyes AI Stocks and Economic Forecasts

Global stocks fell as investors awaited earnings from Broadcom and Oracle, which will show trends in AI cloud infrastructure and chip demand. The Federal Reserve will also release new economic projections, revealing differing views among members. Meanwhile, Astera Labs, a semiconductor company for AI infrastructure, received a raised price target to $195.00 and a "Buy" rating from H.C. Wainwright on December 9. Confluent, a data streaming platform, was acquired by IBM for $11 billion, with Bernstein reiterating an "Outperform" rating on December 9.

Oracle Results Spark Concerns Over AI Spending

Oracle's stock fell 11.5% overnight, losing $70 billion in value, after its latest quarterly results disappointed investors. The company reported a lower-than-expected 14% rise in revenue to $16 billion and announced a $15 billion increase in AI spending. Growth in its cloud computing and infrastructure businesses was slower than forecast. Oracle's long-term debt also surged 25% to $99.9 billion, raising concerns about heavy AI investments funded by debt with uncertain returns. This news caused other AI-related stocks like Nvidia, Alphabet, and SoftBank to also decline.

Oracle Earnings Raise New AI Boom Concerns

Oracle's stock fell 13% in premarket trading on Thursday, signaling renewed investor worries about the artificial intelligence boom. Other AI-related stocks like CoreWeave and SoftBank also saw declines, though larger tech companies experienced smaller drops. Investors are closely watching the connections between Oracle, SoftBank, and OpenAI. This comes as the Federal Reserve suggested only one interest rate cut for next year and another for 2027.

Jet Startup Boom Supersonic Powers AI Data Centers

Boom Supersonic, a company known for its supersonic jets, has secured $300 million in funding by shifting to power AI data centers. CEO Blake Scholl learned about the severe power shortages facing AI data centers and found his team had already designed a stationary power turbine from their Symphony engine. Each 42-megawatt Superpower turbine uses natural gas and no water, addressing key data center needs. Boom plans to build a "Superpower Superfactory" to produce over 4 gigawatts annually by 2030, with the first turbine already in production. This move highlights the AI industry's urgent need for power, as tech companies are expected to spend $400 billion on AI infrastructure this year.

Oracle Earnings Spark New AI Spending Worries

US stocks fell on Thursday as Oracle Corp.'s disappointing revenue forecast renewed concerns about the high costs and monetization of AI investments. Oracle's results impacted the entire tech sector, though other market areas like energy stocks performed well. Investors are questioning the massive capital expenditures required for AI data centers. Separately, OpenAI and Microsoft are reportedly discussing a $100 billion investment in a new AI chip venture. The Federal Reserve also announced a third interest rate cut, and US unemployment claims dropped to a September low.

AI Dating App Keeper Claims to Find Soulmates

Keeper, an AI dating startup founded in 2022, claims its technology can find users their "soulmate" for a significant fee. The company raised $4 million in pre-seed funding in October 2024. Keeper uses complex algorithms and AI models to match people, and its CEO Jake Kozloski states they can identify true matches. While it has 1.5 million sign-ups, it has made a "small number" of matches, with 10% of beta dates reportedly leading to marriage. The service is currently for heterosexual couples and involves a detailed profile creation process, including academic scores and net worth. Men using the service pay a "marriage bounty" of $50,000 if they marry, plus $5,000 for each date.

Oracle Earnings Miss Sparks Wider AI Market Concerns

Oracle's shares dropped 11.5% after the company missed revenue and profit expectations, causing a ripple effect across the AI sector. The software giant reported total revenue of $16.06 billion, below estimates, and forecast lower-than-expected profit and revenue growth for the current quarter. Oracle also announced a $15 billion increase in capital expenditure for AI data centers in fiscal year 2026, raising concerns about heavy AI spending financed by debt. Chairman Larry Ellison confirmed a "chip neutrality" policy, working with all CPU and GPU suppliers. Meanwhile, power company Drax plans to add one gigawatt of data center capacity to its Yorkshire plant by 2027.

Palantir and BigBear.ai Vie for AI Stock Leadership

Palantir Technologies and BigBear.ai, both AI software providers, saw impressive stock gains in 2025. Palantir's stock surged 146% due to a 110% increase in adjusted earnings per share and a 2.5 times jump in contract bookings in Q3. Its remaining deal value grew 91% to $8.6 billion, suggesting strong future growth. BigBear.ai, however, experienced a 20% revenue drop in Q3, largely due to its reliance on government contracts. While BigBear.ai acquired Ask Sage to boost its generative AI offerings, its future revenue visibility is less certain than Palantir's, which is expected to grow revenue by 40% in 2026.

Sources

• Prediction: These 2 Artificial Intelligence (AI) Stocks Will Be Worth More Than Palantir by the End of 2026
• Prediction: These 2 artificial intelligence (AI) stocks will be worth more than Palantir by the end of 2026
• Oracle misses on quarterly revenue as questions about AI infrastructure spending and debt drive stock slide
• 12 Hot AI Stocks on Wall Street’s Radar
• Disappointing Oracle results knock $70bn off value amid AI bubble fears
• Why Oracle Is Worrying Investors About the A.I. Boom
• Boom Supersonic jet startup pivots to power AI data centers
• US Stocks Fall as Oracle Revives Worries About Lofty AI Spending
• This AI matchmaking startup says it can find your 'soulmate' — but be prepared to spend $50K
• Oracle shares slide as earnings fail to ease AI bubble fears
• Better Artificial Intelligence (AI) Stock for 2026: Palantir vs. BigBear.ai