Here are the five biggest bits of tech news this week. Number one, SpaceX has completed its acquisition of XAI, valuing the combined private company at 1.25% trillion as Elon Musk moves to pair his rocket business with an AI unit that's burning about a billion a month and lays out plans to use SpaceX to build spacebased data centers. Second on the list, Microsoft.Now the second largest market cap loss ever. They lost $360 billion in market cap in a day. So what's the problem there.It looks like OpenAI overe ...

Group 1 - Oracle plans to raise up to $50 billion through debt and equity financing to build large-scale AI infrastructure to meet the rapid growth in cloud computing demand [2] - The company aims to raise $25 billion initially through bond issuance to keep pace with major cloud clients like AMD, Meta, NVIDIA, OpenAI, and TikTok [2] - Oracle's investment strategy includes significant funding for Oracle Cloud Infrastructure to satisfy the increasing demand for AI-driven cloud services [2] Group 2 - Oracle is involved in the $500 billion Stargate project led by OpenAI and SoftBank, aimed at building data centers and infrastructure to support global AI development [2][4] - Despite facing scrutiny, some analysts remain optimistic about Oracle's long-term strategy, noting that the company's plans align with real market demand [3] - Oracle Cloud Infrastructure is positioned favorably in the AI boom due to having less technical debt compared to other major cloud providers, allowing for more competitive pricing and technology deployment [3] Group 3 - Investor skepticism arises from Oracle's stock price dropping approximately 50% since September, resulting in a market cap loss of $460 billion [2][4] - Bondholders filed a lawsuit against Oracle in January due to reported losses and the need for substantial debt to maintain its infrastructure roadmap [3][4] - Concerns about the sustainability of AI growth contribute to investor hesitance regarding Oracle's ambitious infrastructure plans [4]

Shares of Microsoft (NASDAQ: MSFT) fell 11% in January, according to data from S&P Global Market Intelligence. Software stocks have been under pressure lately as investors fear the impact generative AI will have on their businesses. Additionally, other investors have been wondering whether artificial intelligence companies will be able to earn adequate returns on their massive capital spending. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to bu ...

Anthropic has set investors on edge for an AI fear they weren't expecting. - Hans Lucas/AFP via Getty Images Alphabet earnings are the headliner for later, but for now, investors continue to weigh the fallout from embattled software stocks after Anthropic’s “Cowork” bombshell. - Tuesday saw the iShares Expanded Tech-Software Sector ETF IGV slide 4.6%, the second-biggest one-day percentage drop since last April. Most Read from MarketWatch Our call of the day from Charlie McElligott, Nomura’s widely res ...

Core Insights - Walmart has become the first retailer to achieve a market capitalization of $1 trillion, marking a successful transformation over the past decade [1][4] - The company's online business became profitable for the first time last year, with projected annual e-commerce sales reaching approximately $140 billion [1][4] - Walmart is heavily investing in AI, allocating billions for supply chain automation to enhance fresh product quality, speed up delivery, and optimize inventory forecasting [1][5] Market Capitalization - On Tuesday, Walmart's stock rose by 2.9% to $127.71, resulting in a market cap of $1.018 trillion [4] - Over the past year, Walmart's stock has increased by nearly 26%, joining the exclusive club of companies with a market cap exceeding $1 trillion, previously dominated by tech giants [4] - Walmart and Berkshire Hathaway are the only non-tech companies in the U.S. with a market cap over $1 trillion, while the remaining are tech firms [4] E-commerce Growth - In the past five years, Walmart's online marketplace has expanded to over 500 million products, introduced one-hour delivery services, and launched the Walmart+ membership program to compete with Amazon Prime [5] - Walmart's U.S. e-commerce sales grew by 28% due to online orders and advertising business, with annual revenue expected to exceed $700 billion [5][6] AI Investments - Walmart has partnered with OpenAI to introduce an "instant checkout" feature and is integrating Google's Gemini AI chatbot into its shopping process [5][6] - The company is transitioning from traditional web or app searches to AI-driven shopping experiences, reflecting changing consumer behaviors [6] Leadership Transition - The recent leadership change with CEO John Furner, a strong advocate for AI investment, signifies a shift towards a decade-long transformation focused on AI and digitalization [8][9] - Walmart plans to maintain its global workforce of approximately 2.1 million employees over the next three years, despite significant changes in job roles due to AI technology [9]

Core Viewpoint - AMD's recent earnings report showed a revenue beat of $600 million, but the stock price fell 9%, indicating market concerns about future growth and execution risks [1][4]. Financial Performance - AMD reported a revenue beat of $600 million for the fourth quarter, but $390 million of this was attributed to a one-time windfall from unexpected sales in China [5][6]. - For the first quarter of 2026, AMD anticipates only $100 million in revenue from China, a 75% decrease from previous expectations, leading to a potential shortfall of $400 million to $800 million [6]. Cost Management - AMD has consistently failed to control operating expenses, exceeding guidance by approximately $200 million for four consecutive quarters, which has negatively impacted data center operating margins [7][8]. - The company is currently valued at 40 times forward earnings, relying on the assumption that profits will grow faster than revenue, which is contingent on effective cost control [8]. Technology Dependencies - AMD's new MI450 chip relies on UALink switches that will not be available in volume until 2027, which could limit the chip's performance and deployment [9][10]. - The production of necessary HBM4 memory chips is sold out for 2026, with AMD being the third priority supplier, which could lead to increased costs or shipment delays [14]. Customer Financial Health - OpenAI, AMD's largest customer, is facing significant financial challenges, having lost $12 billion in a single quarter and requiring over $100 billion in emergency funding [15][16]. - The deal with OpenAI is contingent on successful funding, and any delays could impact AMD's revenue significantly [16]. Market Sentiment - Wall Street is pricing AMD's stock for perfection, assuming all critical factors align favorably; any failure in two out of six key areas could lead to a valuation drop to 25-30 times earnings, representing a potential downside of 25% to 40% [22]. - Analysts express caution, with some firms downgrading price targets while maintaining buy ratings, indicating a lack of confidence in AMD's near-term execution [23]. Future Outlook - AMD's growth is heavily dependent on external factors, including technology readiness, customer financial stability, and effective cost management, which are currently outside the company's control [24]. - Investors are advised to monitor upcoming earnings calls for indications of revenue trends and management's ability to meet guidance [25].

Core Insights - The article discusses the rapid growth of AI companies' Annual Recurring Revenue (ARR) and identifies three underestimated variables contributing to this phenomenon [4][12][32] Group 1: Investment Strategy and Market Position - Jinqiu Fund is an AI-native investment institution, typically investing between $1 million to $25 million in early-stage companies [2][3] - The fund aims to support founders with deep insights and strong execution capabilities, while also leveraging its global investment network [3][4] - Jinqiu has invested in approximately 70 companies, with nearly half being AI application companies, indicating a strong focus on the AI sector [44] Group 2: Underestimated Variables in AI Growth - The first underestimated variable is the true demand and ceiling for AI, which has expanded beyond traditional IT budgets into labor budgets, significantly lowering labor costs [18][22][26] - The second variable is the speed of technological iteration and the growth slope of AI products, with advancements leading to rapid increases in efficiency and capability [32][47] - The third variable is the leverage efficiency of social media, which has transformed user acquisition and product awareness, allowing for faster growth in AI product adoption [66][69] Group 3: Historical Context and Future Implications - Historical shifts in labor sources have often led to GDP surges, and the introduction of AI as a new labor source is expected to have a similar impact [24][30] - The article emphasizes that the service industry is likely to expand significantly as AI capabilities increase, with the potential to create new consumption scenarios [30][41] - The cost of AI-driven services is expected to decrease dramatically, leading to a vast expansion of market opportunities [31][56] Group 4: Examples of AI Impact - AI tools are transforming traditional tasks, such as coding and content creation, making them more efficient and accessible [58][63] - The article highlights the rapid evolution of AI applications, where a small team can achieve what previously required large teams, thus altering the cost structure of software development [60][62] - The potential for AI to operate continuously, breaking the limitations of human work hours, is seen as a significant factor in expanding service industry capabilities [40][41]

Core Viewpoint - AMD's recent earnings report showed a revenue beat of $600 million, but the stock price fell 9%, indicating market concerns about future growth and execution risks [1][4][24]. Financial Performance - AMD reported a revenue beat of $600 million for the fourth quarter, but $390 million of this was attributed to a one-time windfall from unexpected sales in China [5][6]. - For the first quarter of 2026, AMD anticipates only $100 million in revenue from China, a 75% decrease from previous expectations, leading to a potential shortfall of $400 million to $800 million [6]. Cost Management - AMD has consistently failed to control operating expenses, exceeding guidance by approximately $200 million for four consecutive quarters, which has negatively impacted data center operating margins [7][8]. - The company is currently facing a drop in data center operating margins from 29% to 25%, with a promise to reach 35% by late 2026, which appears increasingly unlikely [7]. Product Development Risks - AMD's growth strategy heavily relies on the successful launch of its MI450 chip, which requires UALink switches that will not be available in volume until 2027 [9][10]. - The MI450 chip's performance is contingent on the availability of 432 gigabytes of HBM4 memory, which has already been sold out for 2026, leaving AMD with limited options [14]. Customer Dependency - OpenAI, AMD's largest customer, is facing significant financial challenges, having lost $12 billion in a single quarter and requiring over $100 billion in emergency funding [15][16]. - The deal with OpenAI is not secured by cash reserves and is contingent on successful funding, which poses a risk to AMD's revenue [16]. Market Perception - Wall Street is pricing AMD's stock at 40 times forward earnings, assuming perfect execution across multiple factors, including timely product launches and cost control [3][22]. - Analysts express caution, with some firms downgrading price targets while maintaining buy ratings, indicating a lack of confidence in AMD's current valuation [23]. Future Outlook - AMD's growth is hindered by external dependencies, including technology that is not yet available, memory supply issues, and customer financial stability [24]. - Investors are advised to monitor upcoming earnings calls for indications of revenue trends and management's ability to control spending, with critical assessments expected by October 2026 [25].

Microsoft (NASDAQ: MSFT) is a company that attracts a lot of attention during earnings season. As it is one of the largest and most influential tech companies in the world, its earnings not only provide a look into its business but also give a glimpse of broader tech trends. Unfortunately, this latest earnings report was a tale of two different stories for Microsoft. On the one hand, it delivered an impressive financial performance. On the other hand, a less-than-stellar outlook caused its stock to decline ...

Here's why NVIDIA stock price could be at risk of a crash to $150 false### Choose your country### Choose preferred languagePopular languagesEnglish (USA) [Deutsch] [Español] [Français] [Português]All available languagesEnglish (USA) [English (UK)] [English (Australia)] [English (Canada)] [English (New Zealand)] [English (South Africa)] [English (Ireland)] [English (Singapore)] [English (Nigeria)] [English (Pakistan)] [English (India)] [eština] [Deutsch] [Dansk] [Español] [Français] [Italiano] [] [Melayu] [N ...