Wall Street firms like Vanguard and BlackRock are increasing their holdings in Tesla stock, signaling confidence as the company expands its robotaxi service. Tesla recently launched unsupervised robotaxi rides in Austin, Texas, and plans to transition its Full Self-Driving (FSD) feature to a monthly subscription model starting February 14. CEO Elon Musk also invested approximately $1 billion in Tesla stock last September, highlighting a focus on AI-driven services and recurring revenue.
Microsoft reported a significant profit increase in the last three months of 2025, with net income rising 33 percent year over year to $21.9 billion and total revenues reaching $62 billion. Its Intelligent Cloud division, including Azure, saw revenues jump 26 percent to $25.9 billion. However, Microsoft's shares dropped after reporting slower Azure growth of 22 percent in the fiscal third quarter, coupled with record capital expenditures of $14 billion for AI infrastructure and its partnership with OpenAI.
Oracle is gaining cloud market share, particularly in high-performance computing, securing a $300 billion deal with OpenAI last fall. This boosted its backlog to $523 billion, with its cloud segment generating over $15 billion in the first six months of fiscal 2026. Meanwhile, investors are closely watching AMD and Super Micro Computer (SMCI) ahead of their earnings reports, as AMD designs CPUs and GPUs for AI computing and SMCI builds high-performance AI servers.
Nvidia faces challenges from U.S.-China trade restrictions, including export controls on its H20 AI chip, but maintains strong profitability and a $37.6 billion cash reserve. CEO Jensen Huang announced a deal to supply over 260,000 GPUs to South Korean firms. The company forecasts $170 billion in revenue for fiscal 2026. Separately, SoundHound AI shares fell 2.5 percent on Friday, though analysts generally maintain a positive outlook with a $7.14 price target for the AI-enabled voice and conversational experiences developer.
The Nasdaq Composite index is nearing a new record high, driven by strong performance in AI infrastructure stocks. Investors are focusing on companies supplying AI technology, with upcoming earnings reports from major tech firms like Meta Platforms and Apple serving as key tests for the ongoing AI rally. Chris Versace from Tematica Research noted that AI spending and Meta's advertising revenue figures will be crucial points of interest for Wall Street.
Key Takeaways
- Wall Street firms like Vanguard and BlackRock are increasing Tesla stock holdings as the company expands its robotaxi service and shifts FSD to a monthly subscription starting February 14.
- Microsoft's net income rose 33% to $21.9 billion, with Intelligent Cloud revenue up 26% to $25.9 billion, driven by AI demand.
- Microsoft's Azure cloud growth slowed to 22% in the fiscal third quarter, and capital expenditures surged to $14 billion for AI infrastructure and its OpenAI partnership.
- Oracle secured a $300 billion deal with OpenAI, boosting its backlog to $523 billion and increasing its cloud market share.
- Nvidia forecasts $170 billion in revenue for fiscal 2026, despite U.S.-China trade restrictions on its H20 AI chip, and secured a deal to supply over 260,000 GPUs to South Korean firms.
- AMD is expected to see strong data center and AI-related sales, while Super Micro Computer (SMCI) builds high-performance servers for AI workloads.
- The Nasdaq Composite index is nearing a record high, fueled by strong performance in AI infrastructure stocks.
- Investors are closely watching upcoming earnings reports from Meta Platforms and Apple, with AI spending and Meta's advertising revenue being key focus areas.
- SoundHound AI shares dropped 2.5% on Friday, but analysts maintain a positive outlook with a consensus "Buy" rating and a $7.14 price target.
- Tesla CEO Elon Musk invested about $1 billion in company stock last September, signaling confidence in its AI and robotaxi services.
Wall Street Buys Tesla AI Stock for Robotaxi Growth
Tesla is gaining attention from Wall Street investors like Vanguard and BlackRock, who are buying more shares. The company recently started offering unsupervised robotaxi rides in Austin, Texas, after operating a small fleet in Austin and San Francisco. Tesla plans to shift its Full Self-Driving FSD feature to a monthly subscription starting February 14, aiming for recurring revenue. CEO Elon Musk also bought $1 billion in Tesla stock last September. These moves suggest strong future earnings growth from its AI and robotaxi services.
Tesla Robotaxi Rollout Attracts Big Wall Street Buyers
Wall Street firms like Vanguard, State Street, and BlackRock are increasing their Tesla stock holdings. This comes as Tesla expands its robotaxi service, now offering unsupervised rides in Austin, Texas. The company will also switch its Full Self-Driving FSD feature to a monthly subscription model starting February 14. CEO Elon Musk invested about $1 billion in Tesla stock last September. These actions highlight Tesla's focus on AI-driven services and recurring revenue streams.
Microsoft Profits Soar from Strong AI Cloud Demand
Microsoft's profits increased significantly in the last three months of 2025, driven by high demand for its artificial intelligence services. The company's net income rose 33 percent year over year to $21.9 billion, with total revenues reaching $62 billion. Its Intelligent Cloud division, which includes the Azure platform, saw revenues jump 26 percent to $25.9 billion. CEO Satya Nadella stated Microsoft is building the world's most advanced AI platform, partnering with OpenAI. This strong performance shows Microsoft is well-positioned in the growing generative AI market.
Microsoft Shares Fall as Cloud Growth Slows
Microsoft's shares dropped after the company reported slower growth in its Azure cloud service and record spending. Azure revenue increased 22 percent in the fiscal third quarter, which was less than analysts expected. Microsoft also warned that cloud growth would slow further in the current quarter. The company's capital expenditures surged to $14 billion as it invests heavily in AI infrastructure and its partnership with OpenAI. CEO Satya Nadella remains optimistic about AI's long-term potential, but investors are concerned about the immediate payoff from these large investments.
Investors Watch Microsoft and Meta AI Spending
Wall Street is closely watching the upcoming earnings reports from major tech companies this week. Investors are especially interested in Meta Platforms and Microsoft. Chris Versace from Tematica Research highlights that AI spending and Meta's advertising revenue figures will be key points of focus. Other companies like Apple and Tesla also have earnings reports due.
SoundHound AI Stock Drops 2.5 Percent Friday
SoundHound AI shares fell 2.5 percent on Friday, trading between $5.60 and $5.77. Despite this drop, analysts have a generally positive outlook, with a consensus "Buy" rating and a $7.14 price target. The company, founded in 2010, develops AI-enabled voice and conversational experiences. Its products include Houndify, a development environment for conversational interfaces, and the SoundHound music discovery app. SoundHound AI provides solutions for various industries like automotive and consumer electronics.
Oracle Gains Cloud Market Share with AI Focus
Oracle is increasing its market share in AI infrastructure, especially in high-performance computing. The company secured a $300 billion deal with OpenAI last fall, boosting its backlog to $523 billion. Oracle's cloud segment generated over $15 billion in the first six months of fiscal 2026, making up 49 percent of its $31 billion total revenue. Analysts predict 17 percent revenue growth in fiscal 2026 and 29 percent the following year. Despite a $108 billion debt, Oracle's cost-effective cloud solutions and growing backlog position it well for future growth.
Analysts Weigh AMD and SMCI Before Earnings
Investors are looking closely at AMD and Super Micro Computer SMCI before their upcoming earnings reports. AMD designs CPUs and GPUs for AI computing, while SMCI builds high-performance servers for AI workloads. Analysts are generally positive about AMD, expecting strong data center and AI-related sales. However, analysts are more cautious about SMCI, despite strong demand for AI servers. Both companies' earnings will reveal insights into the booming AI hardware market.
Nvidia Stock Outlook Strong Despite Trade Hurdles
Nvidia faces challenges from U.S. China trade restrictions, including export controls on its H20 AI chip, which could impact revenue. Despite these hurdles, Nvidia's profitability remains strong, supported by investments in U.S. AI infrastructure and a $37.6 billion cash reserve. CEO Jensen Huang announced a deal to supply over 260,000 GPUs to South Korean firms like Samsung and Hyundai Motor. The company forecasts $170 billion in revenue for fiscal 2026, a 30 percent increase from 2025. Nvidia's third-quarter revenue hit a record $57.01 billion, largely due to high demand for its AI chips.
Nasdaq Nears Record High as AI Stocks Rise
The Nasdaq Composite index almost reached a new record high, driven by strong performance in AI infrastructure stocks. The index jumped 0.7 percent to 23,986, nearing its previous record close of 23,958.47. Investors are focusing on the booming businesses that supply AI technology, putting aside earlier concerns about overspending. Chipmakers like Taiwan Semiconductor Manufacturing are showing strong outlooks, and Corning's shares also rose. Upcoming earnings reports from major tech companies will be a key test for the ongoing AI rally.
Sources
- The Artificial Intelligence (AI) Stock Wall Street Insiders Are Quietly Buying
- The Artificial Intelligence (AI) Stock Wall Street Insiders Are Quietly Buying
- Microsoft profits jump as AI services demand boosts cloud sales
- Microsoft drops amid slowing cloud growth, record spending
- Microsoft & Meta earnings: What investors want to know about AI
- SoundHound AI (NASDAQ:SOUN) Trading Down 2.5%
- The AI Infrastructure Stock That's Stealing Market Share in 2026
- AMD vs. SMCI: Which AI Hardware Stock Do Analysts Prefer Ahead of Earnings?
- Nvidia (NASDAQ: NVDA) Stock Price Prediction for 2026: Where Will It Be in 1 Year (Jan 28)
- AI Stocks Pick Up Steam—and the Nasdaq Tests Records—Ahead of Big Tech Earnings
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