Nvidia Technology Boosts PTC While Adobe Partners Google OpenAI

Oracle's recent fiscal second-quarter earnings report and weak forecast have stirred investor concerns about the high costs of AI investments, causing its stock to drop over 10%. The company missed revenue targets, reporting $16.06 billion against an expected $16.21 billion, despite a 68% surge in its AI cloud infrastructure (OCI) sales. This news also led to declines in shares for other major AI hardware companies like Nvidia and Micron, intensifying scrutiny over AI stock valuations and raising fears of a potential AI bubble. Oracle plans to spend an additional $15 billion on capital expenditures in fiscal 2026. Oracle's significant investments aim to compete with giants like Microsoft and Google in cloud infrastructure and AI. The company holds a substantial $300 billion deal with OpenAI and has secured $385 billion in new contracts over six months with clients including Meta and Nvidia. Chairman Larry Ellison emphasized a "chip neutrality" policy, buying chips from any maker to serve clients. Wall Street is closely watching whether these costly bets will translate into long-term gains. In contrast, Adobe Inc. is demonstrating strong performance, forecasting annual revenue between $25.9 billion and $26.1 billion for fiscal year 2026. The company reported record annual revenue for fiscal year 2025, with CEO Shantanu Narayen attributing this success to Adobe's growing role in the AI ecosystem and the rapid adoption of its AI tools. Adobe's fourth-quarter sales increased by 10% to $6.19 billion, exceeding projections, as it actively promotes AI features in products like Photoshop and Acrobat and integrates its Firefly generative AI models, partnering with AWS, Google Gemini, and OpenAI. The demand for AI hardware remains robust. Micron Technology Inc. received a "Strong Buy" rating due to high demand for its HBM and DRAM memory chips, projecting first-quarter 2026 sales to reach $12.7 billion, a 46% year-over-year increase. Similarly, ASML Holding is considered a crucial stock for AI portfolios, thanks to its unique EUV lithography technology and strong order book. In industrial software, Wall Street analysts recommend PTC stock, predicting a 23% increase to $216, as the company integrates AI, including Nvidia technology, into its CAD and PLM software to help clients build data foundations for AI applications. Meanwhile, the AI startup scene continues to attract investment. Donna, an AI platform designed for field sales professionals, successfully secured $4.8 million in new funding. This investment, led by Frontline Ventures, will support Donna's global expansion, including growing its teams across Europe and North America, and accelerating product development. Founded in 2023, Donna's AI assistant automates tasks, reducing administrative work by up to 75%, and integrates with major CRM systems like Salesforce and HubSpot.

Key Takeaways

• Oracle's stock dropped over 10% after missing Q2 revenue targets ($16.06B vs $16.21B expected) and announcing higher AI investment costs, raising AI bubble concerns.
• Oracle plans to spend an additional $15 billion on capital expenditures in fiscal 2026 for AI infrastructure, despite a 68% surge in its OCI sales.
• Oracle holds a $300 billion contract with OpenAI and has signed $385 billion in new contracts over six months with clients like Meta and Nvidia, while pursuing a "chip neutrality" policy.
• Adobe forecasts strong annual revenue between $25.9 billion and $26.1 billion for fiscal year 2026, driven by its successful AI strategy and rapid adoption of AI tools like Firefly.
• Adobe's Q4 sales increased 10% to $6.19 billion, beating projections, and the company partners with AWS, Google Gemini, and OpenAI for its AI ecosystem.
• Micron Technology received a "Strong Buy" rating due to high demand for HBM and DRAM memory chips for AI hardware, expecting Q1 2026 sales of $12.7 billion (46% increase).
• ASML Holding is a key AI stock due to its unique EUV lithography technology and strong order list, with expected growth from new High-NA systems.
• Wall Street analysts predict a 23% increase for PTC stock to $216, as the company integrates AI, including Nvidia technology, into its industrial software.
• Donna, an AI platform for field sales, secured $4.8 million in funding to expand globally, automating tasks by up to 75% and integrating with Salesforce and HubSpot.
• Oracle's performance led to declines in shares for Nvidia, Advanced Micro Devices, and Broadcom, intensifying investor scrutiny over high AI stock valuations.

Adobe forecasts strong sales despite AI worries

Adobe Inc. announced a positive annual forecast, expecting revenue between $25.9 billion and $26.1 billion for the fiscal year ending November 2026. CEO Shantanu Narayen highlighted the company's growing role in the AI ecosystem and the quick adoption of its AI tools. Fourth-quarter sales increased by 10% to $6.19 billion, beating projections. The company's stock had lost about a fifth of its value this year due to investor concerns about AI disruption. Adobe is actively promoting its AI features in products like Photoshop and Acrobat to address these fears.

Adobe's AI strategy leads to record revenue

Adobe reported record annual revenue for fiscal year 2025, showing its AI strategy is successful. CEO Shantanu Narayen stated this success comes from Adobe's growing importance in the global AI ecosystem and the fast adoption of its AI tools. The company plans to increase annual recurring revenue by 10.2 percent in 2026 by improving its AI platforms and expanding its customer base. Adobe has integrated its Firefly generative AI models and partnered with major AI ecosystems like AWS, Google Gemini, and OpenAI.

Wall Street sees big growth for PTC with AI

Wall Street analysts recommend buying PTC stock, predicting a 23% increase to $216. They believe integrating AI, including Nvidia technology, will greatly boost the value of PTC's software for industrial clients. PTC offers CAD and PLM software, helping customers use real-world data to create digital twins and improve processes. CEO Neil Barua noted that customers are using PTC's tools to build data foundations for AI applications. The company expects $1 billion in free cash flow in 2026 and profit margins to grow due to slower expense increases.

Micron stock gets strong buy rating due to AI demand

Micron Technology Inc. (MU) received a "Strong Buy" rating because of high demand for its HBM and DRAM memory chips used in AI hardware. The company expects first-quarter 2026 sales to reach $12.7 billion, a 46% increase from the previous year. Earnings per share are also predicted to be at the top of their guidance. Analysts see a potential stock price increase of 54% to 81% due to surging profit and cash flow estimates. Micron is set for higher profit margins and a strong cash position, even with possible HBM pricing changes in 2026.

Oracle stock falls as AI investment costs worry investors

Oracle Corporation's stock price dropped after its fiscal second-quarter earnings report, despite a 54% increase in adjusted earnings to $2.26 per share. Investors are concerned about the company's large investments in artificial intelligence and whether these will pay off. Oracle is spending heavily on cloud infrastructure and AI to compete with companies like Microsoft and Google. Wall Street is closely watching to see if these costly bets will lead to long-term gains. This situation highlights a broader challenge for tech companies investing in AI.

ASML is a top AI stock despite high price

ASML Holding is considered a crucial stock for AI portfolios because of its unique EUV lithography technology and wide customer base. Even though its stock price is high, analysts believe it offers a good risk-reward opportunity due to steady demand and a strong list of orders. The company faces few competitors and expects growth from new High-NA systems and advanced packaging deals. While some market ups and downs and global risks exist, ASML remains a "Buy" for investors looking for long-term growth.

Oracle stock drops on AI spending worries and weak outlook

Oracle's shares fell sharply after the company gave a weak forecast and announced much higher spending plans for AI infrastructure. This news brought back concerns about a potential AI bubble in the market. Oracle has a significant $300 billion deal with OpenAI, but investors worry about the high costs and the returns from these AI investments. The company expects to spend $15 billion more on capital expenditures in fiscal 2026 than previously estimated. This led to a drop in other AI-related stocks like Nvidia and Micron, and many analysts lowered their price targets for Oracle.

Donna raises $4.8 million for AI sales assistant growth

Donna, an AI platform for field sales professionals, secured $4.8 million in new funding to expand globally. The investment, led by Frontline Ventures, will help Donna grow its teams across Europe and North America and speed up product development. Founded in 2023, Donna's AI assistant helps field sales teams by automating tasks, reducing administrative work by up to 75%. It supports over 40 languages and integrates with major CRM systems like Salesforce and HubSpot, helping customers achieve higher sales and better workflow.

Dow reaches new high even with AI stock worries

The Dow Jones Industrial Average reached a new record high on Thursday, even as concerns about AI stock valuations resurfaced. This happened after Oracle reported disappointing earnings and announced higher spending on AI data centers, causing its shares to drop significantly. Despite the Federal Reserve's third consecutive interest rate cut, which was less aggressive than some expected, investors remain cautious about the AI market. While the Dow rose, the S&P 500 and Nasdaq Composite both saw declines.

Oracle stock drops after missing revenue targets

Oracle's stock price fell by over 10% after the company reported lower revenue than expected for the quarter ending in November. Oracle announced $16.06 billion in revenue, missing analyst predictions of $16.21 billion. Despite a 68% surge in sales for its AI cloud infrastructure (OCI), investor fears about a potential AI bubble were not eased. Oracle has a large $300 billion contract with OpenAI and has signed $385 billion in new contracts over six months with clients like Meta and Nvidia. Chairman Larry Ellison stated a "chip neutrality" policy, buying chips from any maker to serve clients.

AI stocks fall as Oracle's earnings disappoint

Shares of major AI hardware companies like Nvidia, Advanced Micro Devices, and Broadcom dropped after Oracle Inc. reported fiscal third-quarter results that missed Wall Street's expectations. Oracle's cloud-infrastructure business, vital for AI development, grew 25%, which was below the 30% analysts had predicted. This news has intensified investor scrutiny over the high valuations of companies benefiting from the AI boom. The broader market is also showing signs of slowing momentum, suggesting investor enthusiasm for AI stocks might be decreasing.

Sources

• Adobe Gives Strong Sales Growth Outlook, Easing Concern About AI
• Adobe sees a bright future as AI bet pays off
• 1 Stock With Monster Upside to Buy as the AI Trade Enters Its Next Phase in 2026, According to Wall Street Analysts
• Micron Technology: AI HBM Premium Drives DRAM Pricing And Justifies A Strong Buy (MU)
• Oracle Stock Tumbles After Mixed Earnings Amid AI Investment Concerns
• ASML's Moat Makes It A Must-Have AI Play - Even If The Entry Point Isn't Perfect (ASML)
• Oracle shares tumble as gloomy forecasts, higher capex reignite AI bubble concerns
• Donna: $4.8 Million Raised To Advance Global Expansion Of Agentic AI Assistant For Field Sales Teams
• Dow hits record high despite AI fears
• Shares in AI giant Oracle fall after revenue miss
• The AI trade is tanking as anxieties reemerge