News/Investing
AI stocks tumble as tech selloff accelerates amid valuation concerns
AI and tech stocks declined this week as Wall Street's summer rally lost momentum, with the Nasdaq falling 0.67% on Wednesday after a 1.46% drop on Tuesday. The pullback reflects growing investor caution about AI valuations and comes ahead of Federal Reserve Chair Jerome Powell's closely watched speech at Jackson Hole on Friday, which could signal the central bank's rate-cutting plans. What you should know: Major AI and tech stocks are experiencing their first significant correction after months of gains driven by artificial intelligence enthusiasm. The Nasdaq was on track to snap back-to-back weeks of gains, while the S&P 500...
read Aug 20, 2025A bite from the Apple? OpenAI seeks $500B and Most Valuable Company award
OpenAI is reportedly pursuing a $500 billion valuation through a secondary share sale, which would make it the most valuable private company in the world, surpassing SpaceX and ByteDance. The astronomical figure reflects investor confidence that OpenAI can become the next Google or Apple, despite the company's massive burn rate and the inherent risks in such unprecedented valuations. The big picture: Two separate funding deals are driving OpenAI's valuation surge—a SoftBank-led round at $300 billion expected to close by year-end, and employee share sales commanding the higher $500 billion price tag.• Most cheaper shares have already been purchased, forcing investors...
read Aug 20, 2025Nvidia stock drops 5% as AI sector selloff rattles investors
Nvidia's stock plunged more than 3% in early trading Wednesday, extending its weekly decline to over 5%, while other AI industry leaders including Google, Meta, Tesla, and Palantir also saw significant drops. The selloff has rattled investors across the AI sector, with analysts struggling to pinpoint specific causes behind the sudden retreat from what had been a meteoric rise in AI-related stocks. What you should know: The decline comes despite Nvidia's position as the dominant supplier of AI hardware, making its struggles particularly concerning for the broader industry. Nvidia has been the primary beneficiary of the AI boom, selling the...
read Aug 20, 2025AI Winter upon us? Baidu revenue falls 4% as AI investments fail to offset ad decline
Chinese search giant Baidu reported a 4% drop in second-quarter revenue to 32.71 billion yuan ($4.56 billion), missing analyst expectations as its core advertising business declined 15% amid China's economic slowdown. Despite heavy investments in artificial intelligence, including a major search interface overhaul, AI returns have yet to offset the advertising revenue decline that typically represents 60% of the company's total income. Key financial results: Baidu's Q2 performance reflected broader challenges facing China's tech sector during economic uncertainty. Total revenue of 32.71 billion yuan fell short of the 32.76 billion yuan analyst forecast, marking a 4% year-over-year decline. Online advertising...
read Aug 20, 2025Palantir stock falls 20% in 6-day decline after short-seller report, enters bear country
Palantir shares have plummeted 20% from recent highs during a six-day losing streak, the longest such decline since April 2024, officially entering bear market territory. The artificial intelligence software company's dramatic slide follows a broader market selloff and a critical short-seller report from Citron Research questioning whether the stock's valuation reflects its actual fundamentals. What happened: Palantir's stock closed in correction territory Tuesday before sinking further into bear market status Wednesday after six consecutive days of heavy selling. Shares accumulated a 15% loss from highs before crossing the 20% threshold that defines bear market territory. This marks the company's longest...
read Aug 19, 2025Databricks raises funding at $100B+ valuation as AI demand soars
Databricks is set to raise funding at a valuation exceeding $100 billion, marking a 61% jump from its $62 billion valuation less than a year ago. The analytics firm's rapid valuation increase underscores the intense investor appetite for AI companies, as businesses worldwide rush to harness artificial intelligence capabilities from their data. What you should know: Databricks, a San Francisco-based data analytics company, has signed a term sheet for a Series K funding round but hasn't disclosed the specific amount being raised.• The company serves 15,000 customers, including major enterprises like payments firm Block, energy giant Shell, and electric-vehicle maker...
read Aug 19, 2025Bubble? No trouble. Altman admits “insane” AI mania while planning trillion-dollar spending
OpenAI CEO Sam Altman has openly acknowledged that artificial intelligence is currently experiencing a bubble, with "insane" valuations and irrational investor behavior driving the market. Despite warning that some investors will get "very burnt," Altman remains committed to aggressive spending on AI infrastructure, with OpenAI planning to invest trillions in datacenter construction as demand outpaces what any single cloud provider can supply. What they're saying: Altman didn't mince words about the current state of AI investment during a recent dinner with reporters. "Are we in a phase where investors as a whole are overexcited about AI? My opinion is yes,"...
read Aug 18, 2025Palo Alto Networks forecasts $10.5B revenue from AI-driven cybersecurity demand
Palo Alto Networks forecast fiscal 2026 revenue and profit above Wall Street estimates, driven by growing demand for its AI-powered cybersecurity solutions. The company's strong outlook reflects an AI-driven upgrade cycle as enterprises accelerate cloud adoption and modernize security operations amid a wave of high-profile cyberattacks. Key financial projections: Palo Alto's guidance significantly exceeded analyst expectations across multiple metrics. The company projected annual revenue between $10.48 billion and $10.53 billion, above analysts' average estimate of $10.43 billion. Adjusted profit per share is expected to reach $3.75 to $3.85, surpassing estimates of $3.67 for the fiscal year. First-quarter revenue forecast of...
read Aug 18, 2025Data center vacancy hits 2.3% as AI triggers $1T investment surge
The North American data center sector has reached a "critical tipping point" with vacancy rates hitting record lows of 2.3% despite surging development, according to JLL's midyear 2025 report. JLL, a global commercial real estate firm, forecasts up to $1 trillion in North American data center investment from 2025-2030, driven by AI demand and cloud expansion that's forcing operators to completely rethink their strategies. What you should know: Power access, not physical space, has become the primary bottleneck constraining data center growth across North America. Grid connections now take four years on average, while commercial electricity rates have risen nearly...
read Aug 18, 2025Venture capital is AI startups. The rest is just details.
The venture capital landscape has undergone a seismic shift that's fundamentally changing how startups get valued and funded. According to fresh data from Carta, a cap table management platform that tracks startup equity, the top 1% of AI-powered companies now command valuations 3-10 times higher than traditional software businesses at identical stages. This isn't simply a hot market phenomenon. The data reveals something unprecedented: winner-take-all economics—where market leaders capture disproportionate value—has completely taken over venture capital, creating two distinct universes for startup funding. The staggering numbers The valuation gaps between good companies and exceptional ones have reached historic proportions. Seed...
read Aug 18, 2025SoftBank acquires $375M Ohio plant for AI data center manufacturing
SoftBank Group, the Japanese telecommunications and investment giant, has acquired a Foxconn manufacturing facility in Ohio for $375 million, marking a significant step in the company's ambitious push into artificial intelligence infrastructure. The acquisition transforms the former electric vehicle plant into a hub for AI data center equipment production, positioning SoftBank as a key player in America's rapidly expanding AI infrastructure landscape. This purchase represents more than just a real estate transaction—it's a strategic move within Stargate, a massive $500 billion joint venture between SoftBank, OpenAI, and Oracle that aims to revolutionize AI computing capacity across the United States. The...
read Aug 14, 2025Palantir stock soars 1,700% as government AI contracts drive growth
Palantir Technologies has delivered one of Wall Street's most spectacular growth stories since going public through a direct listing in September 2020. The Denver-based data analytics company, co-founded by venture capitalist Peter Thiel and led by CEO Alex Karp, has seen its stock surge more than 1,700% over nearly five years. This meteoric rise has pushed the company's market valuation past $430 billion, placing it among the top 10 most valuable U.S. technology companies despite generating a fraction of their revenue. A direct listing allows existing shareholders to sell their stakes without the company raising new capital, bypassing traditional investment...
read Aug 14, 2025Eli Lilly signs $1.3B AI drug discovery deal to, er, expand obesity dominance
Eli Lilly has signed a $1.3 billion deal with privately held Superluminal Medicines to discover and develop AI-powered small-molecule drugs for obesity and other cardiometabolic diseases. The partnership gives Lilly access to Superluminal's proprietary AI platform for drug discovery, strengthening the pharmaceutical giant's position in the obesity treatment market estimated to reach $150 billion by the next decade. What you should know: The deal centers on Superluminal's AI-driven platform that targets G-protein-coupled receptors (GPCRs), a class of proteins influencing metabolism, cell growth, and immune responses. Lilly will receive exclusive rights to develop and commercialize drug candidates discovered using Superluminal's platform....
read Aug 13, 2025Tornado Valley? Google invests $9B in Oklahoma AI and cloud infrastructure
Google will invest an additional $9 billion in Oklahoma over the next two years to expand its artificial intelligence and cloud computing infrastructure. The massive investment underscores the intensifying competition among Big Tech companies to secure strategic locations and talent as demand for AI services and cloud computing continues to surge. Key details: The investment will fund significant infrastructure expansion across two Oklahoma locations.• Google plans to build a new data center campus in Stillwater while expanding its existing facility in Pryor.• The expansion aims to bolster U.S. AI and cloud capacity to meet growing demand for these services.• The...
read Aug 13, 2025CoreWeave stock drops 14% on earnings miss despite $1.21B revenue beat
CoreWeave's stock plummeted 14% after the AI data center provider reported a wider-than-expected quarterly loss of 27 cents per share, missing analyst expectations of 21 cents. The disappointing results come just ahead of the company's post-IPO lockup expiration on Thursday evening, which could unleash additional selling pressure from insiders previously restricted from trading their shares. What you should know: Despite missing profit expectations, CoreWeave delivered strong revenue growth that more than tripled year-over-year. The company reported $1.21 billion in second-quarter revenue, surpassing Wall Street's $1.08 billion forecast. Revenue guidance was raised to between $5.15 billion and $5.35 billion for 2025,...
read Aug 11, 2025C3 AI shares plummet 30% as CEO health issues impact sales
C3 AI shares plummeted 30% after the enterprise AI company reported preliminary quarterly revenue of $70.2-70.4 million, a significant drop from $87.2 million in the same period last year. CEO Thomas Siebel called the sales performance "completely unacceptable" and attributed it to organizational restructuring and his ongoing health challenges, which have prompted the board to begin searching for his replacement. What you should know: C3 AI's financial struggles reflect deeper operational challenges beyond typical market fluctuations. The company expects to report a GAAP loss from operations between $124.7 million and $124.9 million for the quarter, nearly double the $72.59 million...
read Aug 11, 2025Micron raises Q4 forecast to $11.2B on surging AI memory chip demand
Micron Technology raised its fourth-quarter revenue forecast to $11.2 billion and adjusted earnings per share to $2.85, surpassing previous estimates due to surging demand for AI memory chips. The semiconductor company's shares jumped 5% in premarket trading as investors responded to the stronger-than-expected guidance driven by increased orders from tech firms scaling their AI data center investments. What you should know: Micron significantly boosted its financial outlook for the quarter ending in August, reflecting the company's position in the AI infrastructure boom. Revenue forecast increased from $10.7 billion (plus or minus $300 million) to $11.2 billion (plus or minus $100...
read Aug 8, 2025SoftBank shares surge 13% as $30B OpenAI bet drives $2.87B profit
SoftBank Group shares surged to a record high on Friday, jumping more than 13% to 14,205 yen before closing up 10.39% at 13,865 yen. The rally followed the Japanese technology investor's first-quarter earnings that beat analyst expectations, delivering a net profit of 421.8 billion yen ($2.87 billion) compared to a loss in the same period last year. Why this matters: SoftBank's massive AI investments are driving both its financial performance and investor confidence. The company has committed $30 billion to ChatGPT maker OpenAI this year and is leading financing for Stargate, a $500 billion U.S. data center project. Market enthusiasm...
read Aug 8, 2025Google Finance adds AI assistant for real-time market questions
Google is testing a new AI-powered version of Google Finance that includes a built-in chatbot for answering finance-related questions, along with enhanced charting tools and expanded market data. The revamped web app will roll out in the US over the coming weeks, representing Google's continued effort to integrate AI features across its product ecosystem. What you should know: The updated Google Finance introduces several AI-driven features designed to make financial information more accessible and interactive. Users can ask the built-in chatbot finance-related questions and receive AI-generated answers alongside relevant links. New charting tools go beyond basic asset performance visualization, offering...
read Aug 7, 2025Brookfield commits $33B to European AI infrastructure buildout
Canadian investment giant Brookfield Asset Management is making a massive bet on the infrastructure gold rush powering artificial intelligence, committing over $33 billion to European AI projects as demand for specialized computing facilities explodes worldwide. The Toronto-based asset manager, which oversees more than $900 billion in assets across real estate, infrastructure, and renewable energy, announced a dedicated investment strategy targeting the complex web of physical infrastructure that AI systems require to function. This isn't just about building more data centers—it's about creating an entirely new category of industrial facilities designed specifically for AI's voracious appetite for computing power and energy....
read Aug 7, 2025Data center spending to hit $1.2T as AI reshapes infrastructure
The global data center industry is experiencing unprecedented growth, driven by an artificial intelligence boom that's reshaping how companies think about computing infrastructure. New research reveals that worldwide data center capital expenditure will surge at a 21% compound annual growth rate through 2029, reaching $1.2 trillion in total investment over the next five years. This explosive growth represents far more than incremental technology upgrades. It signals a fundamental shift in how businesses process information, with artificial intelligence applications demanding entirely new categories of specialized computing hardware and infrastructure capabilities. The hyperscaler effect Hyperscalers—the massive cloud computing providers like Amazon Web...
read Aug 6, 2025Duolingo beats Q2 estimates as AI features drive $1B revenue forecast
Duolingo raised its 2025 revenue forecast and beat second-quarter estimates, driven by growing adoption of its AI-enhanced subscription tiers that offer features like video-call conversation practice with chatbots. The language-learning company now expects annual revenue between $1.01-$1.02 billion, up from its previous projection of $987-$996 million, as AI tools boost user engagement and lower operational costs than anticipated. Key financial results: Duolingo's second-quarter revenue reached $252.3 million, surpassing analyst estimates of $240.7 million. The company's stock jumped about 20% in after-hours trading following the earnings announcement. For the third quarter, Duolingo projects revenue between $257-$261 million, compared to analyst estimates...
read Aug 5, 2025Match Group beats earnings with $50M AI strategy to win back Gen Z
Match Group posted second-quarter revenue of $864 million, beating Wall Street expectations of $853.6 million, driven by strong performance at Hinge and new CEO Spencer Rascoff's strategic overhaul. The Tinder-parent company is betting heavily on artificial intelligence features to attract Gen Z users and revitalize growth in a sluggish online dating market, with plans to reinvest $50 million in AI-powered initiatives during the second half of 2025. Why it matters: Match Group's AI-first strategy is showing early results despite broader industry headwinds affecting user growth. The company reported a 5% decline in paying users to 14.1 million, reflecting challenges across...
read Aug 5, 2025Super Micro shares plunge 15% as AI server, infrastructure demand cools
Super Micro Computer shares plunged 15% in extended trading Tuesday after the server maker reported fourth-quarter earnings and revenue that fell short of Wall Street expectations and issued disappointing guidance for the current quarter. The results underscore the company's slowing growth trajectory as the initial surge in AI infrastructure demand begins to normalize. Key financial results: Super Micro missed analyst expectations on both earnings and revenue for the fiscal fourth quarter ending June 30. Adjusted earnings per share came in at 41 cents versus the expected 44 cents. Revenue reached $5.76 billion, below the $5.89 billion consensus estimate. Revenue still...
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