Core Insights - Investors are encouraged to focus on Wall Street's strongest momentum leaders for outsized returns this year [2] - The Driehaus investment strategy, emphasizing "buy high and sell higher," has identified Nu Holdings, Amazon, and Microsoft as strong momentum plays [3] Investment Strategy - The Driehaus strategy prioritizes investing in stocks that are increasing in price rather than those in decline, with a focus on the 50-day moving average as a key criterion [4] - A positive 50-day moving average indicates an uptrend, while strong earnings growth rates and a history of beating estimates are crucial for selecting potential outperformers [6] Screening Parameters - Stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and a Momentum Score of A or B are considered to have the best upside potential [7] - The screening process has narrowed down over 7,743 stocks to only 41 that meet the criteria, including Nu Holdings, Amazon, and Microsoft [10] Company Profiles - **Nu Holdings**: Offers a digital banking platform across Latin America, the Cayman Islands, and the U.S. It has a Zacks Rank of 2 and a Momentum Score of B, with a trailing four-quarter earnings surprise of 5.3% [11] - **Amazon**: Engages in selling consumer products and providing advertising and subscription services globally. It holds a Zacks Rank of 2 and a Momentum Score of B, with a trailing four-quarter earnings surprise of 22.5% [12] - **Microsoft**: Develops software, services, devices, and solutions worldwide. It also has a Zacks Rank of 2 and a Momentum Score of B, with a trailing four-quarter earnings surprise of 8.5% [13]

Key Points Within the Magnificent Seven, Alphabet and Nvidia performed the best in 2025. Now, the question is whether the outperformers or underperformers in the group will rise in 2026. While many investors are more cautious on this group, Wall Street analysts still see plenty of room to run for most. 10 stocks we like better than Nvidia › The "Magnificent Seven" stocks had a fascinating year in 2025. Despite being at the center of most market-related conversations and consuming over one-third ...

The U.S. Federal Trade Commission is scrutinizing big tech firms that hire employees of a startup instead of buying the companies outright, Bloomberg News reported on Friday, citing the agency's Chair... ...

Core Insights - OpenAI is aggressively expanding its partnerships with chipmakers to secure processing power for its AI technology, with a recent $10 billion deal with Cerebras marking a significant step in this direction [2][17] - The company has committed over $1.4 trillion to infrastructure deals with major players like Nvidia, AMD, and Broadcom, aiming for a $500 billion private market valuation [3] - Nvidia remains a key partner, having invested $100 billion to support OpenAI's infrastructure, which includes a project to deploy 10 gigawatts of Nvidia systems [5][6] Nvidia - OpenAI has relied on Nvidia's GPUs since its inception, and the partnership has deepened with Nvidia's commitment of $100 billion to support OpenAI's infrastructure [4][5] - The first phase of the Nvidia project is expected to come online in the second half of the year, although there are uncertainties regarding the progression of the agreement [7] - Nvidia's investment will be deployed upon the completion of the first gigawatt of power [8] AMD - OpenAI plans to deploy six gigawatts of AMD's GPUs over multiple years, with AMD issuing a warrant for up to 160 million shares, potentially giving OpenAI a 10% stake in AMD [10] - The first gigawatt of AMD chips is expected to roll out in the second half of 2026, with the deal valued in the billions [11] Broadcom - OpenAI and Broadcom have agreed to deploy 10 gigawatts of custom AI accelerators, with the project expected to be completed by the end of 2029 [14] - Broadcom's CEO has indicated that significant revenue from this partnership is not anticipated in 2026, framing it as a long-term collaboration [15] Cerebras - OpenAI's recent agreement with Cerebras involves deploying 750 megawatts of AI chips, with the deal valued at over $10 billion [16][17] - Cerebras' chips are designed to deliver responses up to 15 times faster than traditional GPU systems, positioning the company for potential public market entry [17] Potential Partners - OpenAI has signed a $38 billion cloud deal with Amazon Web Services, which includes plans for additional infrastructure development [20] - Discussions are ongoing for Amazon to potentially invest over $10 billion in OpenAI, although no official decisions have been made [21] - Google Cloud provides computing capacity to OpenAI, but OpenAI has no plans to utilize Google's in-house chips [22] - Intel, which has lagged in AI chip development, is working on a new data center GPU designed for AI workloads, with customer sampling expected in late 2026 [24]

The department-store chain's bankruptcy throws one of Amazon's biggest bets on luxury retail into doubt ...

Core Insights - Meta Platforms has shown exceptional performance compared to its hyperscaler peers including Apple, Amazon, Alphabet, and Microsoft [1] Group 1 - Meta Platforms is categorized as a hyperscaler alongside major tech companies [1] - The performance of Meta Platforms is highlighted as outstanding in comparison to its peers [1]

Core Viewpoint - Amazon.com, Inc. (NASDAQ:AMZN) has experienced a modest share price increase of 5% over the past year, with varying target price adjustments from financial firms indicating mixed sentiment about its future performance [2]. Group 1: Share Price and Analyst Ratings - Cantor Fitzgerald reduced its price target for Amazon to $260 from $315 while maintaining an Overweight rating, citing potential synergies from AI as a positive factor for internet stocks [2]. - Jefferies raised its price target for Amazon to $300 from $275, keeping a Buy rating, emphasizing the strength of Amazon Web Services (AWS) despite weak performance in 2025 [2]. Group 2: Competitive Landscape - Jim Cramer highlighted the competitive threat posed by Walmart, suggesting that Amazon's market disappointment is linked to Walmart's strong e-commerce initiatives and widespread presence [2]. - Cramer noted that while AWS remains strong, investors should consider Walmart as a legitimate challenger in the retail space [2]. Group 3: Investment Perspective - There is a belief that while Amazon has long-term potential, some AI stocks may offer better returns with lower downside risk, indicating a cautious approach to premium valuations for Amazon [3].

Core Insights - Cloud computing is experiencing rapid growth driven by artificial intelligence, with Amazon and Oracle adopting different strategies to capture market share in this trillion-dollar sector [1][2] Amazon (AMZN) Overview - Amazon Web Services (AWS) holds approximately 29% market share, generating $33 billion in revenues for Q3 2025, with a year-over-year growth rate of 20.2%, the highest in 11 quarters [2][3] - AWS reported $11.4 billion in operating income and has a cloud backlog of $200 billion, indicating strong revenue visibility [3][5] - Amazon has significantly expanded its infrastructure, adding over 3.8 gigawatts of power capacity in the past year and plans to double total capacity by 2027 [4] - The company has made substantial investments, including a $38 billion deal with OpenAI and a $50 billion investment in AI data centers [4] - The Zacks Consensus Estimate for AMZN's 2026 earnings is $7.87 per share, reflecting a 9.65% increase from the previous year [6] Oracle (ORCL) Overview - Oracle's Remaining Performance Obligations (RPO) have surged to $523 billion, a 438% increase year-over-year, with $68 billion in new commitments from major partners [7][10] - Cloud Infrastructure revenues grew 68% to $4.1 billion, driven by demand for AI training workloads [7] - Oracle's differentiated approach focuses on secure, high-performance infrastructure optimized for enterprise databases and AI models [8] - The company faces execution challenges, with a negative free cash flow of $10 billion in Q2 fiscal 2026 and increased capital expenditure guidance to approximately $50 billion [10] - The Zacks Consensus Estimate for ORCL's fiscal 2026 earnings is $7.42 per share, indicating a 23.05% growth over the previous fiscal year [11] Valuation and Market Performance - Amazon shares have returned 6.2% over the past six months, while Oracle shares have declined by 24.4% [12] - Both companies are currently considered overvalued, with Amazon trading at a forward price-to-sales (P/S) ratio of 3.18x and Oracle at 6.96x, despite Oracle's execution uncertainties [16] Conclusion - Amazon is positioned as the superior investment opportunity due to its strong execution, diversified revenue streams, and sustainable growth fundamentals, while Oracle's high RPO introduces concentration risks and requires flawless execution [19]

Group 1 - Amazon and Alphabet are positioned to lead the bull market in 2026, having recently reached new highs, supported by strong revenues and profitability [1][2] - Amazon's stock has increased by 700% over the last decade, driven by significant investments in artificial intelligence (AI) [4] - AI is enhancing customer experiences, improving operational efficiencies, and facilitating cloud computing, contributing to a 10% year-over-year sales increase in Amazon's online store [5][6] Group 2 - Amazon Web Services (AWS) generates $132 billion in annualized revenue, with AI cloud services being a key growth driver [7] - Advertising revenue has reached $71 billion annually, growing 22% year-over-year, making it Amazon's fastest-growing business [8] - Analysts project Amazon's earnings per share to grow at an annualized rate of 18% in the coming years, supported by multiple growing revenue streams [9]

Amazon.com Inc (NASDAQ:AMZN) is one of the best blue-chip stocks to buy for 2026. On January 5, analysts at Evercore ISI reiterated an outperform rating on Amazon.com Inc (NASDAQ:AMZN) and set a $335 price target. According to the research firm, the e-commerce giant is well-positioned for growth driven by its AI-powered shopping assistant, Rufus. AI-Shopping Assistant Rufus to Drive Amazon.com, Inc. (AMZN) e-Commerce Growth: Evercore ISI Evercore ISI expects Rufus and other AI commerce features to bolste ...