Palantir Surges, Microsoft AI Demand, Google $3.5B Bonds

Palantir Technologies is experiencing a significant surge, forecasting fourth-quarter revenue between $1.327 billion and $1.331 billion, surpassing analyst estimates. This strong performance, driven by high demand for its artificial intelligence services from both government and commercial clients, led the company to raise its annual sales goal for the third time this year, now expecting $4.396 billion to $4.40 billion. Palantir's US commercial business, in particular, became a juggernaut in the third quarter, growing 121 percent to $397 million, largely fueled by its AI platform launched in April 2023. This robust demand for AI services extends beyond Palantir. Microsoft, a key player with a $3.8 trillion market capitalization, reports a substantial increase in AI demand from its business customers, including OpenAI. Microsoft also solidified its commitment to AI infrastructure by signing a five-year, $9.7 billion deal with Iris Energy for GPU cloud computing services. Alphabet Inc., Google's parent company, is also making record commitments, planning to sell $3.5 billion in bonds to fund its AI investments and data center expansion. Alphabet expects to spend between $91 billion and $93 billion this year and projects revenue from its generative AI models to grow over 200 percent from last year. Major investors are taking note, with Warren Buffett's Berkshire Hathaway investing a quarter of its $315 billion portfolio into two AI-centric stocks: Apple, which integrates AI into products like Siri, and Snowflake, a crucial cloud data warehousing company. The foundational infrastructure supporting this AI expansion is equally active. Nvidia stands at the forefront, providing essential GPUs and holding over 80% of the AI accelerator market, with experts predicting AI infrastructure spending could reach $3 trillion to $4 trillion by 2030. CoreWeave, another pure-play GPU cloud company, has a $30.1 billion backlog and a new $6.3 billion agreement with Nvidia. However, the rise of AI also brings disruption, as evidenced by Chegg's stock dropping 98 percent, with its market capitalization now at $115 million, as AI makes its business model obsolete. Internationally, Alibaba Group Holding Limited is gaining attention, with one analyst calling it the 'Porsche' of China for its AI strategy and growth potential across its cloud, e-commerce, and other businesses. Meanwhile, Datavault AI faces a unique market battle, experiencing a 'short war' after a report questioned its claims, though a group of Reddit users is fighting back.

Key Takeaways

• Palantir forecasts Q4 revenue between $1.327 billion and $1.331 billion, raising its annual sales goal to $4.396 billion to $4.40 billion due to strong AI demand.
• Palantir's US commercial business grew 121% to $397 million in Q3, driven by its AI platform launched in April 2023.
• Microsoft reports surging AI demand from business customers, including OpenAI, and holds a $3.8 trillion market capitalization.
• Alphabet Inc. (Google's parent) plans to raise $3.5 billion in bonds for record AI investments, expecting to spend $91 billion to $93 billion this year and projecting over 200% growth in generative AI revenue.
• Warren Buffett's Berkshire Hathaway invested significantly in Apple and Snowflake, highlighting AI's growing importance in their portfolios.
• Nvidia dominates the AI accelerator market with over 80% share, projecting $300 billion in data center revenue by 2026.
• AI infrastructure providers like Iris Energy secured a five-year, $9.7 billion deal with Microsoft for GPU cloud services, while CoreWeave has a $6.3 billion agreement with Nvidia.
• Chegg's stock dropped 98%, with its market cap at $115 million, as AI disruption makes its business model obsolete.
• Alibaba is highlighted as a strong Chinese AI stock with significant growth potential across its cloud, e-commerce, and other businesses.
• Datavault AI faced a "short war" over disputed claims, illustrating market volatility and investor battles in the AI sector.

Palantir expects strong Q4 sales due to high AI demand

Palantir Technologies predicts higher fourth-quarter revenue than expected. This is because businesses and governments are greatly increasing their use of artificial intelligence. The company's shares have more than doubled this year. Palantir expects Q4 sales between $1.327 billion and $1.331 billion, beating analyst estimates of $1.19 billion. The US Army is also using Palantir's 'Vantage' platform, boosting defense spending on its AI tools.

Palantir raises sales forecast again on strong AI demand

Palantir Technologies expects fourth-quarter revenue to be higher than predicted, thanks to strong demand for AI. The company also raised its yearly sales goal for the third time this year. Palantir, co-founded by Peter Thiel, forecasts Q4 sales between $1.327 billion and $1.331 billion. Its annual sales forecast is now $4.396 billion to $4.40 billion. The company's shares have more than doubled this year, and it benefits from increased defense spending on its military-grade AI tools.

Palantir predicts high Q4 revenue due to AI services

Palantir Technologies Inc. expects fourth-quarter revenue to be higher than Wall Street predicted. This is due to the ongoing strong demand for its artificial intelligence services. The defense contractor has raised its yearly sales target for the third time this year. Palantir, co-founded by Peter Thiel, forecasts Q4 sales between $1.327 billion and $1.331 billion. Its AI platform is very popular with both government and business customers.

Palantir Q4 outlook beats estimates despite shutdown fears

Palantir Technologies Inc. shares rose after the company announced a fourth-quarter outlook that beat Wall Street estimates. Palantir expects Q4 revenue to be between $612 million and $620 million. The company also reported strong third-quarter results, with revenue rising 17% to $563 million. CEO Alex Karp expressed confidence in Palantir's ability to perform well, even with concerns about a possible US government shutdown. Palantir sees strong demand in both its government and commercial sectors, driven by its focus on AI and data analytics.

Palantir sales and profits soar with AI growth

Palantir Technologies exceeded Wall Street's expectations with a large increase in third-quarter revenue and profit. The company's revenue grew 63 percent to $1.18 billion, and net income rose 231 percent to $475.6 million. CEO Alex Karp noted that Palantir's US commercial business became "an absolute juggernaut," growing 121 percent to $397 million. Palantir, founded in 2003, also raised its annual sales forecast to $4.4 billion. The company's AI platform, launched in April 2023, combines machine learning with large language models and is driving significant growth in both government and commercial sectors.

Palantir sees booming US business sales in Q3

Palantir announced that its sales to US businesses reached $397 million in the third quarter. This amount was higher than Wall Street expected and showed a 121% growth compared to the previous year. This strong growth in US commercial sales highlights Palantir's continued success. The company has become the stock market's best-performing software company and is nearing a $500 billion market value.

Chegg stock drops 98 percent due to AI disruption

Chegg's stock has fallen sharply, dropping 98 percent, as artificial intelligence continues to disrupt industries. The company's market capitalization is now $115 million, with its stock price at $0.95. The rising effectiveness of AI is making Chegg's business model obsolete. This significant decline shows how AI can negatively impact companies that do not adapt.

Microsoft sees surging AI demand from business customers

Microsoft, a major tech company, continues to innovate and shows strong demand for its AI services. The company reported a surge in AI demand from its business customers, including OpenAI. Microsoft's market capitalization stands at $3.8 trillion, with its stock price at $518.88. This indicates its continued strength and importance in the technology sector.

Datavault AI faces short war but Reddit army fights back

Datavault AI's stock faced a "short war" after a report from Wolfpack. This report claimed that Datavault's statements, like a $150 million investment and an IBM partnership, were exaggerated. However, a group of Reddit users is fighting back, aiming to turn the selloff into a "short squeeze." This situation highlights a battle between short sellers and retail investors.

Warren Buffett invests big in two AI stocks

Warren Buffett's Berkshire Hathaway has invested a quarter of its $315 billion portfolio into two artificial intelligence stocks: Apple and Snowflake. Apple, the largest holding, integrates AI into products like Siri and its advanced camera features. Snowflake, a cloud data warehousing company, helps businesses store and analyze large amounts of data, making it key to the AI revolution. While Buffett's reasons go beyond just AI, this significant investment shows the growing importance of AI in the market.

Alphabet raises $3.5 billion for record AI investments

Google's parent company, Alphabet Inc., plans to sell 3 billion euros, or $3.5 billion, in bonds to fund its record artificial intelligence investments. This marks Alphabet's second bond offering in the European debt market this year. The money raised will largely go towards developing AI and expanding its data center capacity. Alphabet expects to spend between $91 billion and $93 billion this year, a new record. The company also predicts revenue from its generative AI models will grow over 200 percent from last year.

Nvidia leads AI revolution towards $10 trillion valuation

Nvidia stands at the forefront of the artificial intelligence revolution, providing essential GPUs that are in high demand. Unlike the dotcom bubble, every GPU shipped is immediately used, generating revenue and showing real demand. Analysts predict AI infrastructure spending could reach $3 trillion to $4 trillion by 2030, with Nvidia holding over 80% of the AI accelerator market. The company's strong financials include a Q2 revenue guidance of $54 billion for the next quarter and projected data center revenue of $300 billion in 2026. Experts believe AI creates immediate value, positioning Nvidia for substantial expansion and a potential $10 trillion valuation.

Two AI infrastructure stocks show strong growth potential

Two AI infrastructure companies, Iris Energy and CoreWeave, are showing strong potential for growth. Iris Energy, with a $16 billion market cap, is shifting from Bitcoin mining to AI compute, securing 2.75 gigawatts of power rights. It recently signed a five-year, $9.7 billion deal with Microsoft for GPU cloud computing services, including a 20% prepayment. CoreWeave, a pure-play GPU cloud company with a $67 billion market cap, has a $30.1 billion backlog. It also has a new $6.3 billion agreement with Nvidia, ensuring capacity through 2032. Both companies provide crucial computing power for AI development.

Analyst calls Alibaba the Porsche of Chinese AI stocks

Analyst Tim Seymour, Chief Investment Officer of Seymour Asset Management, highly recommends Alibaba Group Holding Limited. He calls Alibaba the "Porsche" of China, praising its artificial intelligence strategy and growth potential. Seymour believes Alibaba stock is a buy, undervalued, and expects it to outperform the market in 2024. He also likes the company's strong cloud, e-commerce, international, financial services, logistics, and digital media businesses.

Sources

• Palantir forecasts fourth-quarter revenue above estimates on solid AI demand
• Palantir forecasts fourth-quarter revenue above estimates, raises sales target
• Palantir forecasts fourth-quarter revenue above estimates on solid AI demand
• Palantir Q4 outlook beats Wall Street estimates despite US government shutdown worries
• AI powers Palantir ‘juggernaut’ to big rise in sales and profits
• Palantir Reports Booming U.S. Commercial Sales
• Down 98%, This Stock Is Getting Crushed by Artificial Intelligence! I Warned Investors About This.
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• The Next Big Short Squeeze? Datavault AI’s Army Says It’s Coming For Wolfpack
• 25% of Warren Buffett's $315 Billion Portfolio Is Invested in 2 Artificial Intelligence (AI) Stocks
• Google Parent Alphabet Taps European Debt Market Again To Fund Record AI Investments: Report
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• Is Alibaba (BABA) The Best Chinese AI Stock? Analyst Calls It the ‘Porsche’ of China