openai, amd and nvidia Updates

The artificial intelligence sector continues to be a dominant force in the market, driving significant growth for companies involved in AI infrastructure and development. Dell Technologies, for instance, is experiencing a surge in its server business, with a 69% growth last quarter, largely due to demand for AI chips. CEO Michael Dell anticipates continued growth in AI data centers, though he acknowledges potential future slowdowns and current constraints like power shortages that are delaying deliveries to clients such as OpenAI. Dell plans to ship $20 billion worth of AI servers in fiscal 2026. Meanwhile, investment in AI infrastructure is attracting significant attention, with Quanta Services, a firm specializing in solutions for technology and energy sectors, recently securing over $414 million in investments. Arista Networks is also seeing increased analyst optimism and strong growth, benefiting from advancements in AI and cloud data center networking. In the chip sector, AMD's collaboration with OpenAI is boosting chipmaker stocks, though questions are being raised about the sustainability of Nvidia's substantial investments in AI companies like OpenAI, with Goldman Sachs labeling some revenue as 'circular.' OpenAI itself may require over $114 billion by 2026 for its AI systems. IBM is looking to capitalize on the AI boom through a partnership with Anthropic, integrating the Claude chatbot into its software to enhance productivity and security. Despite broader market declines, with Oracle shares falling after missing revenue expectations, optimism surrounding AI remains a key influence on investor sentiment. Companies like Tesla, Salesforce, and Amazon are also highlighted for their AI-related growth potential; Tesla is advancing its Robotaxi service, Salesforce is seeing success with its AI tool Agentforce, and Amazon continues to integrate AI into its warehouses and AWS cloud platform.

Key Takeaways

• Dell Technologies' server business grew 69% last quarter, driven by AI demand, with plans to ship $20 billion in AI servers in fiscal 2026, though power shortages are a constraint.
• Quanta Services, an AI infrastructure firm, recently attracted over $414 million in investments due to strong demand for AI data centers.
• Arista Networks is experiencing strong growth and analyst optimism, benefiting from AI and cloud data center networking advancements.
• AMD's deal with OpenAI is boosting chipmaker stocks, while Goldman Sachs questions Nvidia's substantial AI investments, citing 'circular revenue.'
• OpenAI may require over $114 billion by 2026 for its AI systems, raising questions about spending sustainability.
• IBM is partnering with Anthropic to integrate the Claude chatbot into its software, aiming to boost productivity and security.
• Tesla, Salesforce, and Amazon are identified as AI stocks poised for growth, with Tesla advancing Robotaxi, Salesforce seeing success with Agentforce, and Amazon leveraging AI in warehouses and AWS.
• Oracle shares dropped significantly after missing revenue expectations and providing a disappointing forecast, impacting tech stocks.
• Concerns about potential government shutdowns also contributed to market caution, despite ongoing AI optimism.
• Michael Dell believes the AI data center boom is far from over but anticipates a future slowdown and notes power availability as a key customer challenge.

Michael Dell sees AI data center growth slowing eventually

Michael Dell, CEO of Dell Technologies, believes the rapid growth of AI data centers will eventually slow down. Despite this, Dell's server business has seen a significant surge, with 69% growth last quarter, driven by high demand for AI chips and infrastructure. However, power shortages are becoming a major issue, delaying deliveries of AI servers to customers like OpenAI. Dell plans to ship $20 billion worth of AI servers in fiscal 2026, but the company acknowledges that energy availability is a key constraint for its customers.

Michael Dell: AI data center boom continues

Michael Dell, CEO of Dell Technologies, believes the current boom in AI data center construction is far from over, despite potential future overbuilding. The company's server business has grown significantly, fueled by the high demand for computing power for AI. Dell notes that power availability is a major challenge for customers, impacting deployment timelines. Dell Technologies has raised its long-term growth outlook, expecting annual revenue growth between 7% and 9%, and plans to ship $20 billion in AI servers in fiscal 2026.

AI rally FOMO? Expert explains how to invest

Dana D'Auria, co-chief investment officer at Envestnet Solutions, discusses how retail investors can participate in the current AI rally. The AI trade is significantly impacting markets, with AMD's deal with OpenAI boosting chipmaker stocks and other AI-related companies. D'Auria offers insights and analysis on how to navigate this trend for those who feel they might be missing out.

Analyst optimism boosts Arista Networks' AI investment outlook

Arista Networks is attracting significant analyst attention due to strong earnings and revenue growth. The company is also benefiting from advancements in AI and cloud data center networking. Wall Street analysts have increased their consensus earnings estimates for Arista. The company's efficient capital reinvestment has led to higher returns on capital employed, indicating strong business execution in the AI and networking sectors.

US stocks fall as Oracle dips and government shutdown fears grow

U.S. stocks declined on Tuesday, ending winning streaks for the S&P 500 and Nasdaq, while the Dow Jones Industrial Average also fell. Oracle shares dropped significantly after missing revenue expectations and providing a disappointing forecast, impacting tech stocks. Concerns about a potential government shutdown also added to market caution. Despite these factors, optimism surrounding artificial intelligence (AI) continues to be a key theme influencing investor sentiment.

3 AI stocks poised for growth: Tesla, Salesforce, Amazon

This article highlights three artificial intelligence (AI) stocks that are expected to perform well despite recent underperformance: Tesla, Salesforce, and Amazon. Tesla recently reported record vehicle deliveries and is advancing its Robotaxi service. Salesforce is seeing strong growth with its AI tool Agentforce, which helps businesses use AI agents faster. Amazon continues to leverage AI in its warehouses with over a million robots and its growing Amazon Web Services (AWS) cloud platform.

Goldman Sachs questions Nvidia's AI investments

Goldman Sachs has raised concerns about Nvidia's substantial investments in companies like OpenAI and Intel, labeling some of the revenue generated as 'circular revenue.' Analyst James Schneider suggests these investments, including a $100 billion commitment to OpenAI, tie customers to Nvidia's ecosystem but may not be sustainable. OpenAI alone could need over $114 billion in 2026 for its AI systems, raising questions about its ability to sustain current spending levels.

AI infrastructure stock Quanta Services gains investor interest

AI infrastructure firm Quanta Services is attracting significant investment from top funds, with over $414 million invested recently. The company provides specialized infrastructure solutions for industries including technology and energy. Strong demand for AI data centers is boosting Quanta's business, alongside its work in utility and renewable energy sectors. Analysts forecast continued sales and earnings growth for Quanta Services in the coming years.

IBM partners with Anthropic for AI growth

IBM is integrating Anthropic's Claude chatbot into its software portfolio, aiming to boost productivity and security in software development. This partnership is expected to help IBM, which has struggled with growth in the past decade, capitalize on the AI boom. Early testing with select clients has shown significant productivity gains. The collaboration leverages Anthropic's advanced AI models and IBM's extensive corporate relationships, potentially revitalizing IBM's position in the AI market.

Sources

• Michael Dell says AI buildout will eventually overshoot, even as sales explode
• Billionaire PC tycoon Michael Dell is riding the AI gold rush—and he says the party’s far from over even if eventually ‘there'll be too many’ data centers
• Having AI rally FOMO? This strategist explains how to buy in
• How Analyst Optimism and AI Momentum May Influence Arista Networks' (ANET) Investment Narrative
• Stock market today: Dow slides, S&P 500 and Nasdaq snap winning streaks as Oracle leads tech stocks lower
• 3 Top Artificial Intelligence (AI) Stocks Ready for a Bull Run @themotleyfool #stocks $TSLA $CRM $AMZN $NVDA $PLTR $CRWV
• Goldman Sachs is not convinced with Nvidia's investment in OpenAI and Intel; says: Some of this … - The Times of India
• Breakout Watch: Top Funds Fire Up This AI Infrastructure Stock
• IBM's New Anthropic Partnership Could Be the AI Catalyst Investors Have Been Waiting For @themotleyfool #stocks $IBM