AI plays a bigger role in the $302 billion portfolio the Oracle of Omaha oversees at Berkshire Hathaway than you might realize.For six decades, billionaire Warren Buffett has been dazzling Wall Street with his investing prowess. Though his company, Berkshire Hathaway (BRK.A -0.63%) (BRK.B -0.59%), hasn't outperformed the benchmark S&P 500 every year since 1965, he's nearly doubled the average annual total return of this broad-based index, including dividends, spanning 60 years.For some investors, riding the ...

Two AI beneficiaries just posted eye-catching updates. But which is the more attractive stock?Shares of Broadcom (AVGO 0.19%) and Oracle (ORCL -5.05%) both ripped higher around earnings, with Oracle's one-day surge among the biggest in decades. Broadcom, a chip and infrastructure-software company, continues to ride custom artificial intelligence (AI) accelerators and high-end networking. Oracle, the database and cloud provider, stunned investors with a massive jump in contracted work tied to AI demand.The q ...

Duquesne Family Office's billionaire boss bid adieu to a "magnificent" stock and absolutely gobbled up shares of what had been a remarkably cheap media company.For a lot of investors, earnings season is the pinnacle of each quarter. The six-week period where a majority of S&P 500 businesses report their operating results gives investors invaluable information on the health of the U.S. economy.But earnings season isn't the only important data dump of the quarter. Aug. 14 marked the deadline for institutional ...

Core Viewpoint - The "Magnificent Seven" stocks are leading the growth in the AI sector, which is projected to reach trillions of dollars by the early 2030s, but other companies are also poised for significant growth in this area [2][3] Company Summaries - **Oracle**: The company has shifted focus to its cloud infrastructure business, resulting in a 55% increase in infrastructure revenue in the recent quarter. Oracle expects to generate $18 billion in revenue this year, with projections of $144 billion in four years [6][7] - **CoreWeave**: This company has tailored its cloud platform for AI workloads and has seen its revenue triple to over $1.2 billion in the latest quarter. CoreWeave's close partnership with Nvidia positions it well for future growth in AI infrastructure [9][11] - **Broadcom**: The company reported a 63% year-over-year increase in AI revenue, reaching $5.2 billion in the recent quarter. Broadcom is also working on custom chips for major clients and has received a $10 billion order, potentially from OpenAI [13][15]

Core Insights - Tesla's stock has rebounded as investors focus on its AI ambitions alongside its electric vehicle business, particularly the commercialization of an autonomous ride-hailing network called Robotaxi [1][5] - The debate continues regarding Tesla's vision-only approach to autonomy without LIDAR, questioning its scalability and effectiveness compared to sensor-heavy alternatives [2][10] Financial Performance - In Q2 2025, Tesla's operating income fell 42% year-over-year to approximately $0.9 billion, with a 4.1% operating margin due to pricing pressure and mix affecting automotive profitability [4] - Tesla produced over 410,000 vehicles and delivered more than 384,000 vehicles in the same quarter, while energy storage deployments reached 9.6 GWh, indicating growth in this segment [4] Autonomy Strategy - Tesla's long-term investment thesis is heavily reliant on achieving autonomy, which could significantly alter its earnings profile by layering higher-margin software revenue on a large fleet [6][13] - CEO Elon Musk emphasizes that Tesla's vision approach mirrors human driving, using cameras and AI instead of LIDAR, which simplifies hardware and reduces costs [8][10] Market Position and Future Outlook - The success of Tesla's vision-only system hinges on its ability to handle edge cases and prove safer than human driving, with investors needing to monitor software adoption and regulatory approvals closely [11][12] - The company's strategy could lead to faster deployment and improved unit economics if it meets safety standards, but it raises expectations for software progress and real-world validation [14][15]

Core Viewpoint - Vail Resorts presents an attractive dividend yield of around 6%, but the investment case hinges on cash-flow growth potential and business momentum rather than yield alone [3][9]. Group 1: Company Overview - Vail Resorts operates a global network of ski areas, supported by the Epic Pass, with a competitive advantage due to regulatory challenges in establishing new resorts [2]. - The stock has faced struggles despite its iconic assets, making it a candidate for investors' watchlists [2]. Group 2: Recent Performance and Financials - In Q3 of fiscal 2025, Vail reported flat resort net revenue year-over-year and a slight 1% decrease in EBITDA, attributed to pre-sold pass revenue despite a decline in skier visits [5]. - The company updated its fiscal-year resort reported EBITDA guidance to a range of $831 million to $851 million, reflecting cost discipline and a resource efficiency plan [6]. - Cash from operations for the trailing nine months was approximately $726 million, allowing for capital expenditures, share repurchases, and dividends [7]. Group 3: Dividend and Shareholder Returns - Vail's annual dividend payments amount to roughly $330 million, with future increases contingent on significant cash flow growth [9]. - The stock trades at 6.3 times the midpoint of management's EBITDA forecast, indicating a reasonable valuation for a capital-intensive operator [10]. - The company also engages in stock buybacks, with an expanded buyback authorization to retire shares when deemed valuable [11]. Group 4: Investment Considerations - The current dividend, supported by strong cash generation, is appealing for income-focused investors, but it is not guaranteed to grow automatically [13]. - Investors should monitor pass sales and early season trends for signs of improvement before making investment decisions [13].

Artificial intelligence is set to become a trillion-dollar market in a few years.Artificial intelligence (AI) has clearly been driving growth for a number of companies over the past few years. The technology promises to change the way many things are done and, as a result, supercharge companies' businesses and lower costs. Certain players are already winning in this field, either creating AI tools and services or applying such AI to their daily operations.This has resulted in billions of dollars in revenue ...

Core Insights - The cloud and AI focus has driven unprecedented growth for the company [1] - The demand for cloud infrastructure services has surged due to advancements in AI, particularly large language models [2] - Oracle is positioned to potentially disrupt the cloud infrastructure market, traditionally dominated by AWS, Microsoft Azure, and Google Cloud [3] Company Performance - Oracle's total revenue for fiscal Q1 2026 reached $14.9 billion, reflecting an 11% year-over-year growth, with adjusted EPS of $1.47, up 6% [7] - The company's remaining performance obligation (RPO) surged 359% year-over-year to $455 billion, with $317 billion in contracts signed in the first quarter alone [8][9] - Oracle's cloud revenue projections show significant growth, with fiscal 2026 expected at $18 billion (up 77%), fiscal 2027 at $32 billion (up 78%), fiscal 2028 at $73 billion (up 128%), fiscal 2029 at $114 billion (up 56%), and fiscal 2030 at $144 billion (up 26%) [14] Market Position - As of the end of the second quarter, AWS, Microsoft Azure, and Google Cloud held 30%, 20%, and 13% of the market, respectively, while Oracle held a distant 3% [6] - The potential for Oracle to challenge the Big Three is indicated by its RPO and the expectation of signing additional multi-billion-dollar customers [9][11] - Current revenue figures for the Big Three include AWS at $225 billion, Azure at $241 billion, and Google Cloud at $157 billion, compared to Oracle's projected $144 billion by fiscal 2030 [15] Valuation Metrics - Oracle's stock is currently valued at 38 times next year's earnings, but the forward PEG ratio is 0.8, indicating potential undervaluation [13]

There's a lot of love out there right now for two household names that are currently leading the tech and retail industries. But when you dig into the divergent paths and also compare them to their peers, some good old fashioned prudence might be order.It's no surprise that emotional, trend-seeking investors often chase top performers in hopes of cashing in on momentum that may very well have already passed them by.Fundamental investors, on the other hand, typically take a more surgical approach by looking ...

GoPro could mint millionaires by becoming a large-cap stock, but will it ever achieve that feat?Whatever one thinks of GoPro (GPRO 3.50%) stock, one has to acknowledge its theoretical ability to turn small investors into millionaires.Its market cap is only $265 million, making it barely a small-cap stock. If one invested $5,000 at today's levels, it would need to grow by 200-fold to become $1 million. A 200-fold gain in the stock price would send its market cap to $53 billion, a level well into large-cap te ...