Washington, D.C., Nov. 01, 2025 (GLOBE NEWSWIRE) -- In a newly released interview, former CIA officer Buck Sexton unveiled what he calls “Manhattan II” — Americans poised to benefit from the massive economic wave building behind the initiative. Sexton compares the government’s shift into Artificial Superintelligence (ASI) to the original Manhattan Project that changed the course of World War II — and created enormous prosperity in its wake. “The first Manhattan Project minted millionaires… I believe we’re a ...

Core Viewpoint - The artificial intelligence sector is at a high risk of market correction due to inflated valuations and unsustainable business models [2][3]. Group 1: Market Valuations - The AI boom has led to "unbelievable, crazy valuations" that do not align with company fundamentals [2]. - There is a significant increase in deal-making activity within the sector, indicating a potential bubble [2]. Group 2: Infrastructure Investments - Large hyperscalers are investing hundreds of billions of dollars in data centers, raising concerns about their ability to recoup these investments [3]. - The sustainability of business models in the AI industry is under scrutiny, particularly regarding the large language model AI paradigm [3].

Alliance Dynamics - ASI联盟认为在任何不断发展的伙伴关系中，协调一致至关重要，过渡是自然现象[1] - Ocean Protocol退出联盟不影响核心技术堆栈[1] - 创始团队内部的势头和发展保持不变[1] - ASI联盟在核心目标上保持完全一致[1]

Core Insights - Advanced Micro Devices (AMD) has formed a strategic partnership with OpenAI, similar to a recent deal made by Nvidia, which has positively impacted AMD's stock and the broader AI market [1][2]. Company Developments - AMD will supply 6 gigawatts of its Instinct series GPUs to OpenAI for its next-generation AI infrastructure, with the first deployment of 1 gigawatt set to begin in the second half of 2026 [3]. - AMD has issued OpenAI a warrant for up to 160 million shares of its common stock, representing about 10% of AMD's total shares, which is valued at approximately $26.7 billion based on AMD's market cap of $267 billion prior to the announcement [4]. Industry Context - The partnership is expected to generate tens of billions of dollars in revenue for AMD and is anticipated to significantly enhance AMD's non-GAAP earnings per share [6][7]. - The deal is seen as a win-win for both AMD and OpenAI, as it secures a long-term supply of GPUs for OpenAI while providing AMD with a substantial customer base [5][6]. - The recent deals in the AI chip market, including those by Nvidia and AMD, are likely to accelerate the development towards artificial general intelligence (AGI) and artificial superintelligence (ASI) [8].

Core Viewpoint - The demand for artificial intelligence (AI) capabilities is driving a significant increase in the need for electric grid upgrades and expansions, presenting a long-term investment opportunity in grid-related stocks [1][2][19]. Electric Grid Overview - The electric power grid consists of three main stages: electricity generation, high-voltage transmission, and low-voltage distribution [4]. - Regulated electric utility companies typically engage in all stages of the electric grid, while various other companies focus on specific segments such as design, engineering, manufacturing, and installation [5]. Investment Opportunities - Nvidia's $100 billion investment in OpenAI will require at least 10 gigawatts of power, highlighting the substantial electricity demand from AI data centers [3]. - New York City's average power demand is approximately 6.5 gigawatts, with peak demand reaching 10 to 11 gigawatts in summer [8]. Key Electric Grid Stocks - **GE Vernova**: - Market Cap: $162 billion, Forward P/E: 50.6, Expected EPS Growth: 66.2% next year, 10-Year Return: 354% since April 2024 [7][14]. - Revenue in H1 2025 grew 11% YoY to $17.1 billion, driven by a 19% increase in the electrification segment [12]. - Total backlog reached $129 billion, indicating strong demand for its products and services [13]. - **Quanta Services**: - Market Cap: $62.8 billion, Forward P/E: 33.4, Expected EPS Growth: 16.9% over the next five years, 10-Year Return: 1,630% [7][18]. - Revenue in H1 2025 increased 22% YoY to $13.0 billion, with the electric segment's revenue rising 24% to $10.4 billion [16]. - Notable contract win for the Boardman to Hemingway High-Voltage Electric Transmission Project, which will deliver up to 1 gigawatt of power [17].

Core Insights - Nvidia and OpenAI have announced a historic $100 billion partnership to build AI data centers, marking a significant milestone in the AI industry [1][2] - This collaboration is likened to the Manhattan Project, aiming to create advanced AI infrastructure that could reshape industries and redefine daily life [3][4] - The first phase of this infrastructure is expected to be operational by the second half of 2026, utilizing Nvidia's new Vera Rubin platform [2] Investment Landscape - The partnership is part of a larger $2 trillion investment wave into AI infrastructure, with significant spending planned for data center capacity expansion [9][10] - Each gigawatt of AI data center capacity requires $50-60 billion in investment, indicating a massive influx of capital into the AI sector [9] - Companies like Nvidia and OpenAI are positioned to benefit significantly from this unprecedented investment trend [11][12] Company Roles - Nvidia will provide the hardware, including GPUs and networking systems, while OpenAI will focus on software development for future AI models [5][11] - OpenAI has expanded its cloud compute deal with CoreWeave to $22.4 billion, indicating strong demand for AI infrastructure [12] - Other companies in the AI ecosystem, such as Broadcom, Oracle, and Taiwan Semiconductor, are also positioned to benefit from the growing AI infrastructure market [18] Future Implications - The partnership signifies a shift towards a new era of AI growth, with the potential to create a lasting impact on the global economy [8][14] - The ongoing investment in AI infrastructure is expected to drive advancements in robotics, further expanding the market opportunities [16][17] - The companies best positioned to capture this investment wave are likely to experience significant growth in the coming years [13][15]

Core Viewpoint - Alibaba Group is recognized as a leading player in the artificial intelligence sector, with significant investments planned in AI and cloud computing to adapt to the emerging era of Artificial Superintelligence (ASI) [2][3]. Investment Insights - BofA Securities analyst Joyce Ju has raised Alibaba's price target to $195.00 from $168.00 while maintaining a Buy rating, indicating confidence in the company's growth potential [1]. - The company plans to increase its investment in AI and cloud computing beyond the initial budget of RMB380 billion over the next three years [3]. Strategic Positioning - Alibaba aims to establish itself as the world's leading full-stack AI services provider, focusing on delivering high-quality large models and a global AI cloud network [2][3]. - Management believes that the future will see only 5-6 super cloud computing platforms globally, positioning Alibaba to capitalize on this trend [3].

Summary of Alibaba Group (BABA) Conference Call Company Overview - **Company**: Alibaba Group (BABA) - **Event**: Alibaba Cloud APSARA Conference, Day 1 - **Date**: September 24, 2025 - **Location**: Hangzhou Key Industry Insights - **AI Development**: Alibaba is currently at Stage 2 of 4 in its roadmap to achieve Artificial Superintelligence (ASI), with predictions that Large Language Models (LLMs) will become the next operating system and AI Cloud will be the next computer [1][14] - **Investment in AI**: The global AI industry has seen over US$400 billion in investments in the past year, with expectations to exceed US$4 trillion in the next five years [14] - **Data Center Expansion**: Alibaba anticipates a 10x increase in total data center power consumption by 2032 compared to 2022 [4][18] Financial Performance and Projections - **Stock Performance**: Following the conference, Alibaba's shares reacted positively, with a 10% intra-day increase. The stock has seen a year-to-date increase of over 110% [1] - **Valuation Scenarios**: The refreshed bull case valuation implies a potential upside of over 40%, with a target price of US$179/HK$174. The bear case valuation stands at US$106/HK$103 [1][5] - **Revenue Growth**: Alibaba Cloud's AI revenues have seen triple-digit growth for eight consecutive quarters, now accounting for 20% of total cloud revenues [5] Product and Service Developments - **AI Model Releases**: Alibaba has released over 300 AI models, achieving 6 million downloads and serving over 1 million customers with 170,000 derivative models [18] - **Flagship Model**: The Qwen3-Max model, with 1 trillion parameters, has surpassed competitors like GPT-5 and Claude Opus 4, ranking third on the Chatbot Arena leaderboard [18] - **Agent Development**: The upgraded low-code Agent development platform has seen over 200,000 developers build 800,000 agents, indicating strong adoption across various sectors [23] Strategic Focus Areas - **Global Expansion**: Alibaba Cloud is expanding its international presence, with new data centers planned in regions including Japan, South Korea, France, UAE, Brazil, Malaysia, Netherlands, and Mexico within the next 12 months [24] - **AI Infrastructure**: The company has significantly increased its AI computing power by 5x and storage capacity by 4x over the past year [23] Risks and Challenges - **Market Risks**: Key risks include lower-than-expected GMV growth due to macroeconomic factors and competition, as well as potential deceleration in cloud revenue growth [7] - **Profitability Concerns**: The quick commerce segment is expected to impact group EBITA negatively in the near term, although improvements in unit economics are anticipated [6] Conclusion - **Investment Recommendation**: The company is rated as a "Buy" with a focus on its growth potential in AI and cloud services, differentiating itself from other platforms through its unique offerings and strategic investments [5][6]

Market Overview - Stocks opened modestly higher but enthusiasm faded due to a sell-off in AI heavyweights and concerns over a potential government shutdown [1] - At the close, the Dow Jones Industrial Average was down 0.4% at 46,121, the S&P 500 was off 0.3% at 6,637, and the Nasdaq Composite was 0.3% lower at 22,497, although all three indexes are set to end the quarter and month with impressive gains [2] Sector Performance - The materials sector was the worst performer among the S&P 500 sectors, impacted by a 17% decline in Freeport McMoran (FCX) after the company cut its third-quarter sales guidance due to halted operations at its Grasberg Block Cave mine in Indonesia [3] - The technology sector also closed in the red, with major AI stocks Nvidia (NVDA) down 0.8% and Oracle (ORCL) down 1.7% for the second consecutive day [6] Company Highlights - Micron Technology (MU) reported higher-than-expected earnings and revenue for its fiscal fourth quarter, with strong guidance for the first quarter. Analyst Quinn Bolton noted robust AI demand and tightening DRAM supply, reiterating a Buy rating and raising the price target to $200 from $150, indicating over 33% upside [7] - Alibaba Group Holding (BABA) shares rose 8.2% after announcing plans to increase AI spending, with CEO Eddie Wu stating a three-year, 380 billion yuan AI infrastructure initiative [9][10] - Lithium Americas (LAC) surged 95.8% after confirming reports of a potential 10% stake from the Trump administration, as the company renegotiates a $2.26 billion loan for its Thacker Pass mine, expected to be a major lithium source in North America [11][12] Economic Indicators - New home sales surged 20.5% from July to August, reaching a seasonally adjusted annual rate of 800,000, the highest in three years, attributed to lower mortgage rates and increased builder incentives [13]

Group 1: Technology Sector Overview - The technology sector experienced a significant crash in the first quarter of 2025 but has since seen a strong recovery starting in early April [1] - Despite the recovery, many tech stocks are now fully valued or overvalued, making it harder to find bargains [1][2] Group 2: Meta Platforms - Meta Platforms' stock has increased nearly ninefold since its 2022 lows, raising concerns about overvaluation [3] - Currently, Meta trades at 27.6 times earnings, slightly above the market average, with significant investments in Reality Labs and AI superintelligence not yet contributing to current revenue [4] - Reality Labs reported a loss of $8.7 billion in the first half of the year, while the core advertising business generated $46.7 billion in operating income [5] - Excluding Reality Labs losses, Meta is projected to achieve over $100 billion in operating profit this year, making its $1.9 trillion market cap reasonable relative to its core advertising business, which grew 21.4% last quarter [6] - If Meta's investments in the metaverse and AI do not pan out, the company can refocus on its core platforms, which have strong network effects [7] - If successful in AI superintelligence, Meta could see significant upside, making it a compelling investment at its current price [8] Group 3: Applied Materials - Applied Materials' stock is approximately 30% below its all-time highs from last summer, trading at 19 times 2025 earnings estimates [9] - Concerns exist regarding near-term growth, particularly after ASML Holdings indicated uncertainty about growth in 2026, with 25% of Applied's revenues coming from Chinese customers [10] - Applied is well-positioned for the transition to new transistor architectures, focusing on etch and deposition technologies, which aligns with its business strengths [11][12] - The company has a 1% dividend yield and has consistently raised its dividend, with increases of 19% in 2023, 25% in 2024, and 15% in 2025, while maintaining a payout ratio below 20% [13][14] Group 4: On Semiconductor - On Semiconductor's stock fell after earnings, despite beating revenue expectations and meeting adjusted earnings expectations, indicating a potential buying opportunity for long-term investors [15][16] - The company operates in end-markets that have been in downturns, but management believes stabilization is occurring, with a focus on silicon carbide chips for electric vehicles and energy infrastructure [17] - On's AI data center revenue nearly doubled last quarter, providing additional growth potential as the auto and industrial markets recover [17] - The company has maintained cash flow during downturns, allowing for stock repurchases, positioning it well for future recovery [18]