OpenAI $10B Deal, Nvidia Stock Dip, Adobe AI Tools

The artificial intelligence sector continues to see significant activity, with companies like Broadcom and Figma reporting strong financial results driven by AI integration and demand. Broadcom's AI chip sales are surging, with Q4 revenue projected at $6.2 billion and a new $10 billion deal with an undisclosed customer, potentially OpenAI, signaling a shift in AI hardware preferences and challenging Nvidia's dominance. Nvidia's stock saw a dip following this news, though its outlook remains robust, and its hardware continues to power cloud AI services like CoreWeave, which is predicted to see substantial stock growth. In the design software space, Figma launched four new AI tools—Make, Draw, Sites, and Buzz—aiming to embed generative AI into its workflows, mirroring strategies seen at Adobe. Despite these advancements, Figma reported a 5% operating margin, with management cautioning that AI inference costs could impact future margins. Other companies are also leveraging AI for growth: Innodata, specializing in AI training data, achieved 79% revenue growth and profitability, while Veritone's core AI software revenue increased over 45%. On the infrastructure front, Lam Research reported $4.72 billion in Q3 2025 revenue due to AI chip manufacturing demand, though trade tensions present a risk. Microsoft and Salesforce are also identified as companies poised for long-term AI growth by integrating AI into their offerings. Security is also a growing concern, with Cato Networks acquiring Aim Security to bolster its cloud security for enterprise AI adoption, following its achievement of over $300 million in annual recurring revenue. Meanwhile, eGain Corp is focusing on AI Agent products, experiencing 25% year-over-year growth in AI Knowledge ARR, even as it phases out older messaging products.

Key Takeaways

• Broadcom's AI chip sales are strong, with Q4 revenue expected at $6.2 billion and a new $10 billion deal with an undisclosed customer, potentially OpenAI.
• Figma launched four new AI tools (Make, Draw, Sites, Buzz) to integrate generative AI into design workflows, reporting Q2 2025 revenue of $249.6 million.
• Nvidia's stock experienced a dip following Broadcom's positive earnings update and major AI deal.
• CoreWeave, a cloud AI services provider utilizing Nvidia hardware, is predicted to see its stock rise by 122%.
• Microsoft and Salesforce are listed among undervalued AI stocks with long-term growth potential due to AI integration.
• Lam Research reported $4.72 billion in Q3 2025 revenue driven by AI chip manufacturing demand, but faces risks from U.S.-China trade tensions.
• Innodata, an AI data services firm, reported 79% revenue growth in Q2 2025 and achieved profitability.
• Cato Networks acquired Aim Security to enhance cloud security for enterprise AI adoption, surpassing $300 million in annual recurring revenue.
• eGain Corp is seeing 25% year-over-year growth in AI Knowledge ARR with its new AI Agent products.
• Companies like Adobe and Autodesk are also integrating AI into their design ecosystems, similar to Figma's strategy.

Figma bets on AI tools despite rising costs

Figma reported a 41% revenue increase to $249.6 million in Q2 2025 but maintained a 5% operating margin. The company launched four new AI tools: Make, Draw, Sites, and Buzz, to integrate generative AI into design workflows. Management warned that AI inference costs will increase, potentially reducing gross margins. This strategy mirrors companies like Adobe and Autodesk, aiming to build AI-native design ecosystems to stand out from competitors.

Aehr Test Systems and Figma: AI stocks poised for growth

Aehr Test Systems and Figma are highlighted as undervalued stocks benefiting from the AI boom. Aehr Test Systems saw a 140% revenue increase to $18.3 million in Q3 2025 due to demand for its AI chip testing systems. Figma's revenue grew 41% to $249.6 million in Q2 2025, driven by its AI-enhanced design tools. Despite facing challenges like revenue dips and operating losses for Aehr, and a rocky IPO for Figma, both are seen as having strong potential in AI infrastructure and design.

Broadcom AI chips challenge Nvidia's dominance

Broadcom's stock surged 10% after reporting strong AI chip sales, expecting $6.2 billion in Q4 revenue, surpassing analyst expectations. The company also secured a new customer, expected to add $10 billion in revenue by 2026. Broadcom is developing advanced AI chips using a 2-nanometer process, ahead of competitors like Nvidia. Analysts see Broadcom's custom AI chips as a strong alternative to Nvidia's GPUs, potentially doubling its market share in AI compute and networking by 2027.

Nvidia stock dips as Broadcom secures major AI deal

Nvidia's stock fell as investors reacted to rival Broadcom's positive earnings update. Broadcom's stock jumped 11% after announcing strong AI-related orders, including a $10 billion deal with an undisclosed customer, likely OpenAI. This deal suggests a potential shift for OpenAI away from Nvidia's GPUs towards Broadcom's custom processors. While Nvidia's outlook remains strong, Broadcom's win highlights increasing competition in the AI chip market.

Nvidia-backed CoreWeave stock could soar 122%

Argus Research analyst Jim Kelleher predicts CoreWeave stock could rise 122% in the next year, with Nvidia holding over 90% of its portfolio in the company. CoreWeave is a leading provider of cloud AI services, utilizing Nvidia's hardware. Despite a debt-heavy business model, Wall Street expects CoreWeave's revenue to grow 127% annually through 2026. The company is also acquiring Core Scientific to improve efficiency and reduce costs.

Quantum Computing Inc. vs. IonQ: Which AI stock is better?

Quantum Computing Inc. (QCi) and IonQ are two companies poised to benefit from the AI market through quantum computing. QCi develops photonic chips that could lower quantum computer costs, while IonQ uses trapped ion technology to potentially shrink quantum processing units. Both companies are experiencing growth, but IonQ is considered more reasonably valued by analysts, despite both facing profitability challenges.

Cato Networks buys Aim Security, tops $300M revenue

Cato Networks acquired Aim Security to enhance its cloud security offerings, especially for enterprise AI adoption. This move comes as AI technologies create new security, compliance, and privacy challenges. Aim Security provides solutions for securing public and internal AI applications and development. The acquisition strengthens Cato's SASE platform, allowing it to monitor and protect AI workflows. Cato Networks also announced it surpassed $300 million in annual recurring revenue.

Innodata vs. Veritone: Comparing AI services stocks

Innodata and Veritone are both AI data services companies, but they differ in scale and strategy. Innodata, a 35-year-old firm, specializes in preparing training data for AI models and reported 79% revenue growth in Q2 2025, turning profitable. Veritone is transforming into a pure-play AI software company, with its core AI software revenues up over 45% year-over-year, driven by public sector demand and its Veritone Data Refinery. Innodata faces client concentration risk, while Veritone deals with ongoing losses and debt.

6 undervalued AI stocks for long-term investors

Amidst the AI boom, investors are seeking undervalued stocks with long-term growth potential. Morningstar identifies six such companies across hardware, software, and AI beneficiary categories: Taiwan Semiconductor Manufacturing Co Ltd ADR, Marvell Technology Inc, ASML Holding NV ADR, Microsoft Corp, Salesforce Inc, and ServiceNow Inc. The key is to find companies that can integrate AI into their products and services to increase revenue or use AI to improve operational efficiency and margins.

Lam Research stock: Hold or sell amid AI boom and trade tensions?

Lam Research (LRCX) reported strong Q3 2025 revenue of $4.72 billion, up 24.5% year-over-year, driven by AI chip manufacturing demand. However, U.S.-China trade tensions pose risks to its margins due to export restrictions. While AI infrastructure growth favors Lam's expertise, competitors like ASML and TSMC offer potentially more resilient growth. Investors must weigh Lam's AI tailwinds and 33% EBITDA margins against geopolitical risks and the stronger growth profiles of alternatives.

4 AI stocks with significant future growth

Instead of chasing popular AI stocks, a smarter approach involves identifying companies with sustainable competitive advantages and long-term growth potential. These opportunities can be found in four categories: Builders creating AI tech, Enablers supplying AI infrastructure, Appliers integrating AI into existing products, and companies benefiting from AI's overall growth. Investors should look beyond the obvious players and focus on understanding the technology, market dynamics, and disruption potential.

eGain Corp AI growth strong despite product sunset

eGain Corp reported $23.2 million in Q4 2025 revenue, an 11% sequential increase, with SaaS gross margins at 80%. The company is launching new AI Agent products and seeing 25% year-over-year growth in AI Knowledge ARR. However, eGain is sunsetting its messaging products, which will create a revenue headwind in fiscal 2026, leading to a 5% year-over-year revenue decrease for the full year. Despite this, the company maintains a strong cash position and is focused on its AI strategy.

Sources

• Figma's Strategic AI Investment and Margin Dynamics: Is the Long-Term Payoff Justified?
• The Next Wave of AI Innovation: 2 Undervalued Stocks Positioned for Explosive Growth in 2025 and Beyond
• Broadcom stock soars as Wall Street cheers AI chips as ‘leading alternative’ to Nvidia
• Nvidia Stock Falls as Broadcom Lands $10 Billion AI Chip Deal
• 1 Nvidia-Backed AI Stock to Buy Before It Soars 122%, According to a Wall Street Analyst
• Better Artificial Intelligence Stock: Quantum Computing Inc. vs. IonQ @themotleyfool #stocks $QUBT $NVDA $MSFT $IBM $IONQ $RGTI
• Cato Networks acquires Aim Security, revenue tops USD $300 million
• Innodata vs. Veritone: Which AI Services Stock Has More Upside in 2025?
• Investing in AI? Here Are 6 Undervalued Stocks for Buy-and-Hold Investors
• Strategic Investment Analysis: Should You Sell or Hold Lam Research (LRCX) Amid AI Booms and Trade Tensions?
• Not All AI Stocks Are Done — 4 With Huge Growth Ahead
• eGain Corp (EGAN) Q4 2025 Earnings Call Highlights: Strong AI Growth Amid Messaging Product Sunset