By Zaheer Kachwala (Reuters) -Palantir Technologies fell around 6% on Tuesday as a strong quarterly update from the company failed to extend its record-breaking rally. The company, which has more than doubled in value this year, forecast fourth-quarter revenue above market expectations on Monday, driven by a rapid AI adoption boosting demand for its data analytics services. The company's stock has been riding on its strong relationship with the U.S. government after it won a slew of contracts, including ...

Amazon.com Inc. has accused PacifiCorp, a utility owned by Berkshire Hathaway Inc., of failing to deliver enough electricity to support four new data centres in Oregon. ...

Core Viewpoint - The analysis of Amazon indicates that the performance of AWS (Amazon Web Services) significantly influences the stock price, particularly its Return on Invested Capital (ROIC) [1] Group 1: Company Analysis - The previous rating for Amazon was a Hold, primarily due to the control of AWS' ROIC over the stock price [1] - The freight forwarding professional's extensive industry experience provides insights into market behavior and investment psychology, emphasizing the importance of making informed investment decisions [1] Group 2: Market Insights - The article reflects a contrarian approach to investing, highlighting the necessity of thorough due diligence in research projects to provide timely and accurate information to investors [1]

Core Insights - Amazon has signed a significant $38 billion deal with OpenAI to enhance its cloud computing capabilities, marking the first collaboration between the two companies [1] - This partnership is particularly noteworthy as OpenAI is partially owned by Microsoft, a major competitor of Amazon in the cloud services market [1][4] Group 1: Competitive Landscape - OpenAI has previously lacked the flexibility to partner with various cloud providers, but this deal with Amazon signifies a shift in strategy [3] - Amazon's need for prominent clients like OpenAI is crucial for strengthening its AWS strategy, especially as it competes with Microsoft Azure [3][6] - Microsoft has invested $13 billion in OpenAI, achieving a tenfold return on that investment, while Amazon has invested $8 billion in OpenAI's rival, Anthropic [5] Group 2: Cloud Computing Dynamics - Both Microsoft and Amazon are positioning themselves as the cloud backbone for AI startups, leveraging their computing power to support these companies [6] - OpenAI is diversifying its cloud partnerships, utilizing services from Google, Microsoft, and Amazon due to the high demand for computing resources [7][8] - Amazon is focused on attracting more AI customers to its cloud services, rather than developing its own AI chatbot [8] Group 3: Technology and Infrastructure - OpenAI currently relies exclusively on Nvidia GPUs for its operations, having previously signed a deal with Google Cloud [9] - Amazon is constructing new data centers specifically for OpenAI, similar to its efforts for Anthropic, which may allow for the integration of various chip technologies [10]

Core Insights - Amazon has reached a new record high following a significant partnership with OpenAI, marking a pivotal moment in the tech industry [1][4] - The partnership involves a $38 billion deal with Amazon Web Services, allowing OpenAI to access Nvidia GPUs through Amazon's cloud services [2][3] - This collaboration signifies a strategic shift for OpenAI, moving away from its previous exclusive relationship with Microsoft, which had been its cloud provider until recently [2][3] Company Developments - Amazon is on track for its largest back-to-back gains in three years, driven by the announcement of the partnership with OpenAI [2] - The deal includes plans for Amazon to construct new data centers specifically for OpenAI, enhancing the latter's infrastructure capabilities [3] - Amazon is projected to achieve over $200 billion in revenue for Q4, potentially becoming the first company to reach this milestone [3] Market Impact - Following the announcement, Amazon's shares increased by approximately 5%, reflecting positive market sentiment [4]

Summary of Global Cloud Capex Tracker Conference Call Industry Overview - The conference call focuses on the **US Technology** sector, specifically the **cloud computing industry** and the **capital expenditure (capex)** of global hyperscalers [1][4]. Key Points Capital Expenditure Trends - **2025 Capex**: The cash capex for the top 11 global cloud service providers (CSPs) is projected to be approximately **$470 billion**, reflecting a **68% year-over-year (Y/Y)** increase [2][10]. - **2026 Capex**: The forecast for 2026 cash capex has been revised to **$620 billion**, indicating a **33% Y/Y growth**, which is **$60 billion** higher than previous estimates [2][12]. - The upward revisions in capex are primarily driven by **Amazon**, **Meta**, and **Alphabet**, while **Microsoft** has slightly reduced its estimates due to a higher mix of capital leases [2][9]. Capex Intensity - The capex intensity for 2025 is expected to reach **19.1% of revenue**, marking an increase of approximately **6 percentage points Y/Y**, which is a new all-time high [2][16]. Hyperscaler Management Commentary - Management teams from the **Big 4 US hyperscalers** (Amazon, Microsoft, Meta, Alphabet) have indicated a need to accelerate infrastructure deployment due to **capacity constraints** in compute and power [9][10]. - All four companies have raised their current year capex targets, with expectations of significant increases in spending into 2026 [9][10]. AI Infrastructure Spending - There is a growing demand for AI infrastructure, with expectations that global AI infrastructure spending could reach **$3-4 trillion per year** as indicated by NVIDIA's CEO [3][9]. - Monthly tokens processed by major CSPs are growing exponentially, suggesting an increase in demand for AI inference [3][18]. Revenue Growth Projections - Aggregate cloud revenue for major providers is expected to accelerate, with the top 4 US hyperscalers projected to see revenue growth in the coming quarters [21][22]. Non-AI Cloud Capex - Non-AI cloud capex growth is anticipated to accelerate to **+78% Y/Y in 2025**, followed by **+24% Y/Y in 2026** [23][24]. Additional Insights - The consensus for 2026 capex estimates has been raised by more than **70%** from a year ago, indicating strong confidence in continued growth in cloud spending [20]. - A detailed list of technology companies with revenue exposure to cloud capex is provided, highlighting the interconnectedness of the industry [7]. Conclusion - The overall sentiment from the conference call indicates a robust growth trajectory for cloud capex driven by increasing demand for AI infrastructure and the strategic responses of major hyperscalers to capacity constraints and market opportunities [1][3][9].

November 3, 2025 05:53 PM GMT AI/Tech Diffusion | North America The Impacts of 'Transformational AI': Takeaways from Our Expert Webcast M We recently held a webcast with a leading economist on the impacts of "Transformational AI" — to economies, employment, and asset values. Key takeaways: Premia for assets that cannot be "reproduced" by AI, variables impacting the value of human labor, and economic metrics. Key Takeaways We recently hosted an investor webcast with Dr. Anton Korinek of the University of Vir ...

"The Amazon deal and other M&A news have boosted the market, and then you know we came into the week after getting marginally positive news over the weekend, both about the China trade situation and some dovish Fedspeak," said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky. "(But) it's definitively a market led by big tech semiconductors and it has been for almost this entire bull market." Kimberly-Clark shares slid after it was revealed the consumer goods company will buy Tyle ...

Core Viewpoint - Amazon.com, Inc. has announced a $38 billion multi-year partnership with OpenAI to provide computing infrastructure for AI workloads, leading to a rise in its stock price and an increase in price target by Wedbush analysts [1][5]. Group 1: Partnership Details - The partnership will initially utilize AWS's existing data centers, with plans for Amazon to expand dedicated infrastructure to accommodate future needs [2]. - The entire planned capacity is expected to be operational by the end of 2026, with the partnership designed to grow over the next seven years [3]. Group 2: Financial Implications - Wedbush analysts raised the price target for Amazon stock from $330 to a Street high of $340, indicating a potential 33% upside for Amazon shares [5]. - Amazon's AWS has reached an annual run rate of over $130 billion, with strong year-over-year growth driven by increased demand for AI and core services [4]. Group 3: Market Position and Future Outlook - The partnership with OpenAI is seen as a natural progression following Amazon's recent collaboration with Anthropic, further solidifying its leadership in AI cloud services [3]. - Analysts are optimistic about the demand in the coming quarters, citing backlog growth and a higher capital expenditure guide for 2025 [5].

Core Insights - Amazon.com Inc. is a leader in e-commerce and cloud computing, with its AWS division being a significant player in the cloud infrastructure market [1] - A recent $38 billion agreement with OpenAI is expected to enhance AWS's position in the AI sector and drive stock growth [2][6] Financial Outlook - Wedbush has set a price target of $340 for Amazon, indicating a potential upside of 33.37% from the current price of $254.93 [2][6] - Amazon's market capitalization is approximately $2.72 trillion, with a recent trading volume of 69.28 million shares [5] Strategic Partnerships - The partnership with OpenAI allows the latter to utilize AWS's infrastructure, marking a shift from reliance on Microsoft's cloud services [3][4] - AWS's infrastructure is optimized for AI workloads, including access to Nvidia GPUs and Amazon EC2 UltraServers, which will support OpenAI's next-generation models [4]