palantir unveils new tools as anthropic ships new models

Key Takeaways

• Core Scientific is pivoting from bitcoin mining to AI and high-performance computing, selling most of its bitcoin holdings (e.g., 1,900 BTC for $175M in January) to fund this expansion.
• Core Scientific reported a Q4 2025 net income of $215.96 million on $79.76 million revenue, driven by reduced impairments and its AI infrastructure focus.
• Palantir Technologies' stock surged due to new U.S. AI policies, as the government restricts some AI tools (like Anthropic's) and considers deals with others (like OpenAI) for defense.
• Anthropic's Claude Code, an AI tool for COBOL modernization, caused a market sell-off, impacting companies like IBM, Salesforce, Adobe, and Intuit due to fears of business model disruption.
• Alphabet's fair value estimate increased to $376.86 per share, reflecting significant investments in AI, heavy compute power, Gemini partnerships, and cloud adoption.
• Jack Dorsey, CEO of Block, expects AI to automate up to 40% of jobs at the company, leading to plans for 4,000 layoffs due to efficiency gains.
• Gartner predicts the AI boom will eliminate the sub-$500 entry-level PC market by 2028 and reduce entry-level smartphone sales in 2026 due to rising memory costs.
• Flux, an AI-powered hardware design platform, raised $37 million in new funding to enhance its AI capabilities, aiming to simplify circuit board design for over 1 million users.
• Western Digital's stock dropped amid oil price spikes and inflation concerns, despite strong demand for its high-capacity storage drives used in AI servers.
• China's NPC meeting is being watched for policy signals to boost the stock market, with a focus on companies aligned with 'new quality productive forces' in technology and environmental protection.

Core Scientific faces financial challenges amid Q4 sales slump

Core Scientific, a company involved in bitcoin mining and data centers, reported lower than expected revenues of $79.8 million for the fourth quarter, missing the estimate of $115 million. Despite this, the company reported an adjusted net income of $216 million, surpassing the estimated -$47.5 million. The company's self-mining and high-performance computing hosting divisions saw significantly lower sales than anticipated. Additionally, Core Scientific had to restate previous financial reports due to an overstatement of property, plant, and equipment value, though this did not affect revenue or cash flows.

Core Scientific to sell bitcoin holdings to fund AI expansion

Bitcoin miner Core Scientific plans to sell most of its bitcoin holdings in 2026, primarily in the first quarter, to fund its expansion into artificial intelligence and high-performance computing. The company held 2,537 bitcoin worth $222 million at the end of 2025 and has already sold about 1,900 bitcoin for $175 million in January. This move reflects a larger trend in the industry where bitcoin miners are selling their reserves to invest in data center and AI infrastructure. Core Scientific's CFO noted the January sale was opportunistic, and the CEO stated that bitcoin mining is now in 'runoff' as the company focuses on AI.

Core Scientific's Q4 profit signals AI pivot success

Core Scientific reported a fourth-quarter net income of $215.96 million on revenue of $79.76 million for 2025, a significant shift from its full-year net loss of $288.62 million on revenue of $319.02 million. This quarterly profit, aided by reduced impairments on property, plant, and equipment, highlights the impact of the company's move towards AI-focused data center infrastructure. Investors are watching if this AI pivot can create a more stable earnings profile, though reliance on a few large contracts remains a key risk. The company projects substantial revenue and earnings growth by 2028, driven by its AI infrastructure expansion.

Guidewire Cloud deal and AI sentiment boost stock

Guidewire Software is gaining attention after Sompo Group decided to use Guidewire Cloud Platform globally, supported by positive sentiment around AI in enterprise software. Despite recent share price volatility, the company shows annual revenue growth of 12.66% and net income growth of 24.42%. Analysts suggest the stock may be undervalued, with a fair value estimate of $268.38 compared to its recent trading price. This optimistic outlook relies on assumptions of faster cloud adoption and increased margins from AI integration, though potential challenges in cloud execution and product customization could impact profitability.

Penguin Solutions appoints new AI product leader

Penguin Solutions has appointed Ian Colle as its new senior vice president and chief product officer, overseeing product strategy for its AI Factory Platform. With shares trading at $20.05, the company has seen modest short-term and modest long-term returns. Current valuation models suggest the stock might be undervalued, with a fair value estimate of $28.25. This potential upside is based on the expansion of recurring software and managed services, which are expected to improve earnings stability. However, the company's valuation also faces risks from lumpy project revenue and tariff exposure.

China's NPC meeting eyed for policy direction amid AI concerns

Investors are closely watching China's upcoming National People's Congress (NPC) meeting in Beijing for policy signals that could boost the stock market, especially as global markets grapple with fears about artificial intelligence disrupting business models. The NPC, China's top legislature, will review the country's next five-year plan, outlining development priorities through 2030. Historically, Chinese equities have seen gains in the weeks following the 'two sessions' meetings, driven by expectations of pro-growth policies. Analysts suggest focusing on companies aligned with 'new quality productive forces,' including technology and environmental protection firms.

Palantir stock surges on defense trade and AI policy shifts

Palantir Technologies' stock price rose significantly in after-hours trading, building on previous gains, as government tech suppliers gained attention following new U.S. AI policies. The U.S. government has restricted the use of certain AI tools, impacting companies like Anthropic, while also considering deals with others like OpenAI for defense systems. Geopolitical events, including recent strikes in the Middle East, have also influenced trading in defense and energy stocks. Palantir's financial forecasts show expected revenue growth for the first quarter and the full year 2026, but its stock performance remains sensitive to policy changes and market sentiment.

AI boom to end sub-$500 PCs by 2028, hit smartphone sales

Gartner, a research firm, predicts that rising memory costs due to the AI boom will cause the sub-$500 entry-level PC market to disappear by 2028. The firm also forecasts a significant drop in sales for entry-level smartphones in 2026, as consumers may opt for refurbished devices or keep their current phones longer. Premium smartphones are expected to be less affected due to higher profit margins. Businesses planning to replace employee devices should be aware of these rising costs and consider purchasing sooner rather than later.

Alphabet's AI investments boost fair value estimate

Alphabet's investment story is evolving with a new fair value estimate of $376.86 per share, up from $330.24. This adjustment reflects recent analyst assessments focusing on the company's significant investments in artificial intelligence and heavy compute power. The growth of its Gemini partnerships and cloud adoption are also key factors influencing long-term cash generation and risk. Investors are closely monitoring these developments as Alphabet continues to integrate AI into its operations and services.

Jack Dorsey: AI could automate 40% of jobs at Block

Jack Dorsey, CEO of Block, believes artificial intelligence could automate up to 40% of jobs within the company, citing internal use of AI tools that enhance productivity. He announced plans to lay off 4,000 workers, stating these cuts are not due to financial hardship but rather the efficiency gains from AI. Despite this, Block's business remains strong, and the company has focused heavily on cryptocurrency and Bitcoin. The announcement led to a 20% increase in Block's stock price, though the company also faces challenges from a weak crypto market.

Western Digital stock drops amid oil spike and insider sale

Western Digital's stock price fell about 6% on Tuesday, alongside other data storage companies like Micron and Seagate, as rising oil prices and inflation concerns impacted AI-linked tech stocks. The surge in oil prices, driven by geopolitical tensions, has renewed inflation worries and pushed back expectations for Federal Reserve rate cuts. A filing also indicated plans for a Western Digital trust to sell 6,000 shares. Despite these factors, Western Digital has seen strong demand for its high-capacity storage drives used in AI servers, but the current market conditions pose a risk to high-momentum AI infrastructure stocks.

Flux raises $37 million for AI hardware design platform

Flux, an AI-powered hardware design platform, has secured $37 million in new funding, including a $27 million Series B round led by 8VC. The platform uses AI to help users design circuit board layouts, source components, and generate manufacturing files through natural language prompts. Flux claims over 1 million users have designed nearly 6.5 million devices using its web-based tools. The company plans to use the new capital to enhance its AI capabilities, making hardware design more accessible to non-experts and smaller businesses. Flux aims to reduce the cost and complexity of traditional hardware development.

AI coding tool sparks $1 trillion market panic

A new AI coding tool called Claude Code from Anthropic has triggered a significant market sell-off, leading to what is being called the 'AI Scare Trade.' This tool automates the modernization of COBOL, a programming language used by many major financial and government institutions. The release caused IBM's stock to drop sharply, raising concerns about companies reliant on legacy systems. The panic spread to other tech companies like Salesforce, Adobe, and Intuit, as investors worried about AI's potential to disrupt business models and reduce pricing power. Reports of a 'Global Intelligence Crisis' and potential white-collar job displacement have further fueled market anxiety.

Sources

• Core Scientific craters after soft Q4 sales
• Bitcoin miner Core Scientific to sell bulk of BTC holdings in 2026 to fund AI pivot
• What Core Scientific (CORZ)'s Q4 Profit Amid Full‑Year Loss Means For Its AI Pivot
• Guidewire Software (GWRE) Valuation Check After Sompo Cloud Deal And Supportive AI Sentiment
• Assessing Penguin Solutions (PENG) Valuation After New AI Product Leadership Appointment
• Investors lock onto NPC as markets seek policy lift amid AI jitters
• Palantir stock jumps nearly 6% after hours as U.S. AI clampdown, Iran strikes drive defense trade
• AI Analytic Firm Predicts the End of the Sub-$500 Entry-Level PC by 2028, as Well as a Major Hit to Smartphone Sales in 2026
• How The Alphabet (GOOGL) Investment Story Is Shifting With AI, Gemini And Heavy Compute
• Can AI do 40% of your job? Block’s Jack Dorsey thinks so
• Western Digital stock slides 6% in regular trade as oil spike rattles AI-linked tech, insider sale filing surfaces
• Flux: $37 Million Raised For AI Hardware Design Platform
• AI Scare Trade: How one AI release sparked a $trillion market panic