ZACKS·2025-11-05 15:36Core Insights - Wall Street's interest in artificial intelligence (AI) remains strong, with AI stocks significantly contributing to market rallies over the past few years, and optimism has increased in 2023 due to substantial investments from major tech companies [1][2] AI Industry Overview - The AI sector is experiencing robust growth driven by a highly optimistic demand outlook, with significant investments expected to transform various industries including robotics, healthcare, and cybersecurity [2][3] Major Investments in AI - Amazon.com, Inc. announced a $38 billion deal with OpenAI to enhance AI workloads using Amazon Web Services, involving millions of NVIDIA Corporation's GPU chips [4] - Microsoft Corporation and IREN Limited entered a $9.7 billion agreement to access Nvidia GB300 GPUs [4] - NVIDIA plans to develop AI supercomputers for the U.S. energy sector and has invested $1 billion in Nokia to support AI initiatives [5] Financial Performance of Tech Giants - Microsoft reported Q1 fiscal 2026 earnings of $4.13 per share and revenues of $77.67 billion, with Azure revenues increasing by 40% year over year [6][7] - Alphabet Inc. reported Q3 2025 earnings of $2.87 per share and revenues of $87.47 billion, attributing growth to its AI-powered cloud business and increasing its 2025 capex to $91-93 billion [8][9] - Meta Platforms, Inc. reported Q3 2025 earnings of $7.25 per share and revenues of $51.24 billion, with advertising revenues driven by AI increasing by 25.6% year over year [10] Company-Specific Insights - Micron Technology, Inc. is benefiting from strong AI-driven demand for memory and storage technologies, with an expected earnings growth rate of 95.7% for the year [11][13] - ASML Holding N.V. invested €1.3 billion in Mistral AI to enhance AI integration in its lithography systems, with an expected earnings growth rate of 39.7% for the current year [15][16]