SAN FRANCISCO, Feb. 28, 2026 (GLOBE NEWSWIRE) -- Following the Trump administration’s move to bar Anthropic from federal use and the Pentagon's reported agreement with OpenAI, an executive overseeing active defense deployments is available to assess the procurement and governance consequences. Ben Van Roo, CEO of Legion Intelligence, leads a company deploying agentic AI systems across operational environments within the U.S. Departments of War and Energy, and argues that the current public framing of the di ...

Core Insights - OpenAI has raised $110 billion in new funding, nearly tripling its previous record of $41 billion from March 2025, marking the largest private tech fundraise in history [1] - The funding round values OpenAI at $730 billion pre-money and $840 billion fully diluted, a significant increase from its $500 billion valuation just four months prior [2] Investment Details - Amazon is investing $50 billion, Nvidia and SoftBank are each committing $30 billion, with the deal expected to attract an additional $10 billion from other investors before closing [2][3] - Amazon's investment includes $15 billion upfront, with the remaining $35 billion contingent on undisclosed conditions, and establishes AWS as the exclusive third-party cloud provider for OpenAI's Frontier platform [5] - Nvidia's investment includes commitments for 3 gigawatts of dedicated inference capacity and 2 gigawatts of training on its next-generation systems [6] - SoftBank's investment continues its support for OpenAI, following a previous $30 billion contribution in March 2025 [6] Strategic Partnerships - The investments are not just financial; they include strategic partnerships that reshape the competitive landscape for cloud computing and AI infrastructure [4] - Amazon and OpenAI will collaborate on developing customized AI models for Amazon's consumer products [7] - OpenAI's reliance on Nvidia's hardware ecosystem is deepened through the commitment of 5 gigawatts of compute capacity for training and inference [7] - SoftBank's ongoing commitment signals confidence in OpenAI's long-term vision despite market skepticism [7]

Core Insights - Small-cap stocks are gaining renewed investor interest in 2026 as capital shifts away from mega-cap stocks, with Goldman Sachs highlighting potential opportunities among AI ecosystem suppliers [2][3] - The easing rate environment is expected to benefit small-cap stocks, with anticipated rate cuts and accelerating earnings providing compelling investment opportunities [3] - The S&P 500 index has remained flat year-to-date, indicating a shift in the AI narrative and a drag from large-cap tech stocks, while the equal-weight S&P 500 shows positive performance [4][5] Company Summaries CeriBell, Inc. (NASDAQ:CBLL) - CeriBell reported Q4 2025 sales of $24.8 million, a 34% increase from the previous year, driven by growth in new and existing accounts [11] - The company achieved a gross profit of $21.6 million with a gross margin of 87%, but reported a net loss of $13.5 million [11] - For the full year, total income reached $89.1 million, up 36% from 2024, with a gross margin of 88% and expectations of $111 million to $115 million in sales for 2026 [12][13] HealthStream, Inc. (NASDAQ:HSTM) - HealthStream's Q4 2025 revenue was $79.7 million, a 7.4% increase year-over-year, with operational income impacted by a stock-based compensation charge [15] - The company reported a full-year revenue of $304.1 million, up 4.3%, and adjusted EBITDA growth of 7.5% to $71.8 million [16] - HealthStream is focused on providing healthcare workforce solutions, enhancing staff competency and regulatory adherence through its cloud-based platforms [17]

Core Insights - The "Magnificent Seven" tech stocks have underperformed in 2026, declining approximately 4.9% as measured by the Roundhill Magnificent Seven ETF (MAGS) [2] - In contrast, the broader S&P 500 index is up about 1.7% this year, while the tech-heavy Nasdaq Composite remains flat [3] Group 1: Performance of the Magnificent Seven - The Magnificent Seven stocks have seen a significant decline since peaking in late October 2025, indicating a downward trend over the past four months [2] - Investor sentiment has shifted, leading to a cautious approach towards the overcrowded AI trade that previously fueled the growth of these stocks [2] Group 2: Performance of Other Stocks - The remaining 493 stocks in the S&P 500, referred to as the "Impressive 493," are performing well, with a 2.9% increase this year as measured by the Defiance Large Cap ex-Mag 7 ETF (XMAG) [3] - Other sectors such as energy, industrials, basic materials, consumer defensive stocks, and healthcare are thriving in 2026, contrasting with the stagnation of big tech [5] Group 3: Market Rotation - A notable market rotation is occurring, moving investment focus from the Magnificent Seven to a broader range of companies [4] - Market analyst Edward Yardeni has expressed concerns about the concentration of market power among the Magnificent Seven, suggesting that their continued success depends on widespread adoption of their products and services across other companies [4]

Geopolitical Risks - The potential escalation of conflict with Iran introduces significant geopolitical risk premiums into global markets, particularly following the reported killing of Iran's supreme leader [1] - Continued tensions with Iran could lead to oil price volatility and increased safe-haven flows into Treasuries and gold, impacting high-beta equity segments [5] U.S. Market Performance - U.S. equities are showing signs of internal deterioration, with the S&P 500 down 0.6% for the week and the Nasdaq Composite now negative year-to-date [2][8] - The S&P 500 ETF is up only 0.6% year-to-date, while the equal-weight S&P is up 7%, indicating a divergence in performance among sectors [4] Sector Analysis - Energy and materials sectors are leading, with Energy (XLE) up 25% year-to-date, while technology (XLK) and financials (XLF) are lagging, down 4% and 6% respectively [4][8] - The so-called "Magnificent Seven" tech stocks have seen significant declines, with Microsoft down 19% and Amazon and Tesla down approximately 10% [4] Bond Market Insights - The global bond market has rallied, with U.S. 10-year Treasury yields falling below 4% for the first time since November, indicating caution among investors [3][8] - Credit spreads have widened slightly, which typically does not signal optimism in the market [3] International Market Performance - U.S. markets are underperforming compared to international markets, with South Korea up nearly 50% year-to-date and Taiwan up 23% [4][8] - European markets are also showing resilience, with modest gains driven by earnings [4] Economic Data and Fed Outlook - A heavy data flow is expected this week, with key indicators such as ISM Manufacturing, ADP Employment, and Nonfarm Payrolls being closely monitored to assess economic resilience [10][15] - The latest PPI print complicates the narrative for near-term rate cuts, as sticky producer prices do not support an aggressive pivot by the Fed [11]

Core Viewpoint - The demand for AI-related infrastructure presents significant investment opportunities, particularly in companies that provide power and connectivity solutions for AI data centers [1][2]. Group 1: Power Supply Companies - NextEra Energy operates the largest utility company in the U.S., serving over 12 million customers through Florida Power & Light [5]. - The company is collaborating with major hyperscalers, including Google Cloud, to build and power new AI data centers [6]. - NextEra plans to deliver an additional 15 gigawatts of power to data centers by 2035, with 6 gigawatts sourced from gas [8]. - Full-year net income for NextEra was $2.97 billion, up from $2.3 billion the previous year, with an expected compound annual growth of at least 8% through 2032 [9]. Group 2: Connectivity Solutions Companies - Credo Technology specializes in high-speed data connectivity for data centers and has a significant opportunity with its Active Electrical Cables (AECs) [10][11]. - The AECs are designed to reduce signal degradation and power consumption, making them superior to traditional copper wiring [11]. - Credo's revenue for the second quarter of fiscal 2026 was $268 million, a 272% increase from the previous year, with net income of $82.6 million [13]. - The company has issued guidance for third-quarter revenue between $335 million and $345 million [13]. Group 3: Investment Considerations - Both NextEra Energy and Credo Technology offer unique investment opportunities in the AI infrastructure space, providing diversification without directly investing in chip stocks [15].

Core Insights - Qnity reported a strong financial performance for 2025, with net sales of $4.75 billion, a 10% increase year-over-year, and an Adjusted Pro Forma Operating EBITDA of $1.4 billion, resulting in an EBITDA margin of 29.5% [1][7] - The company achieved its seventh consecutive quarter of organic growth, driven by demand in advanced semiconductor technologies [3][4] Financial Performance - For the fourth quarter, Qnity's net sales reached $1.2 billion, an 8% increase year-over-year, with an Adjusted Pro Forma Operating EBITDA of $349 million and adjusted pro forma EPS of $0.82 [2] - The full-year adjusted pro forma EPS was $3.35, reflecting a 12% increase compared to the previous year [1] Segment Performance - The Semiconductor segment generated $2.65 billion in sales, reflecting 8% organic growth, with an EBITDA margin just above 35% [6][11] - The Interconnect Solutions segment produced $2.1 billion in sales, a 12% organic growth, with margin expansion to just over 25% [6][11] Growth Drivers - Key growth drivers include advanced nodes, advanced packaging, and thermal management, with significant contributions from AI and advanced semiconductor manufacturing [4][10] - Demand in the semiconductor market is tied to transitions in advanced logic and memory technologies, including 3 nm and 2 nm production [13] 2026 Guidance - For 2026, management projects net sales between $4.97 billion and $5.17 billion, adjusted EBITDA of $1.465 billion to $1.575 billion, and adjusted EPS of $3.55 to $3.95 [5][19] - The company anticipates adjusted free cash flow of $450 million to $550 million for 2026 [20] Capital Allocation and Transformation Plan - Qnity plans to implement a multi-year transformation plan expected to yield approximately $100 million in EBITDA run-rate benefits by 2028, with an implementation cost of around $140 million [17] - The company ended 2025 with over $900 million in cash and a net leverage of approximately 2.2x, below its long-term target [16] Geographic Performance - China accounted for just over 30% of total sales in 2025, growing at a high single-digit rate, while the rest of Asia and the Americas experienced double-digit growth [22]

Core Insights - Everpure achieved its first $1 billion revenue quarter in Q4, marking a 20% year-over-year growth, with full-year revenue reaching $3.7 billion, up 16% year-over-year [3][4][7] - The company reported strong performance in large transactions, with deals over $5 million growing 80% year-over-year in Q4 [1] - Everpure's strategic shift towards data intelligence and AI scale is underscored by its acquisition of 1touch and a rebranding initiative [5][18][20] Revenue Performance - Q4 product revenue was $618 million, a 25% increase year-over-year, while subscription revenue was $440 million, up 14% year-over-year, representing 42% of Q4 revenue [2] - For fiscal 2026, product revenue totaled $1.97 billion (up 16%) and subscription revenue reached $1.69 billion (up 15%) [2] Profitability Metrics - Q4 operating profit reached a record $226 million, resulting in an operating margin of 21.3% [3] - Total gross margin for Q4 was 71.4%, with a product gross margin of 67.3%, which increased by over 400 basis points year-over-year due to a favorable product mix [8] Strategic Initiatives - The acquisition of 1touch aims to enhance data discovery and governance capabilities, supporting enterprise-scale AI deployment [18][19] - Everpure's rebranding reflects a transition from operational storage to broader data intelligence and management capabilities [20] Market Dynamics - The company raised prices by an average of 20% due to AI-driven shortages in NAND, memory, CPUs, and GPUs, which may pressure near-term product gross margins [6][9] - Management anticipates product gross margins in Q1 to be at the lower end of the typical 65%-70% range, with recovery expected as pricing and costs re-synchronize [10] Future Guidance - For Q1 of fiscal 2027, Everpure guided for revenue between $990 million and $1.01 billion, with an operating profit of $125 million to $135 million [21] - Full-year guidance for fiscal 2027 is set at revenue of $4.3 billion to $4.4 billion and operating profit of $780 million to $820 million [21][23]

Core Viewpoint - Microsoft is currently experiencing a significant sell-off, down nearly 30% from its all-time high, presenting a potential buying opportunity for investors as the stock is expected to appreciate significantly over the next three years [1][3]. Company Performance - Microsoft is trading at its lowest price-to-earnings (P/E) ratio since the 2023 sell-off, with an average P/E multiple of 33 since 2020, indicating a potential recovery in valuation [4][6]. - The company's cloud computing division, Azure, is the primary driver of growth, benefiting from increased AI workloads, with Azure's revenue rising by 39% year-over-year in the last quarter [10]. Growth Projections - Analysts project Microsoft's revenue to grow at a rate of 16% for fiscal 2026 and 15% for fiscal 2027, with expected earnings per share (EPS) of $19.02 for fiscal 2027, potentially reaching $23.45 if the growth rate is sustained [11]. - If Microsoft returns to its historical P/E of 33, the stock could be valued at $774 per share, indicating a potential doubling of the stock price from its current level of approximately $390 within three years [12]. Strategic Positioning - Microsoft is adopting a unique approach in the AI sector by providing a platform for developers to access various generative AI models, rather than focusing solely on in-house development, which positions the company to benefit from the overall growth in AI computing [7]. - The company holds a 27% stake in OpenAI, which could yield significant gains if OpenAI goes public at a valuation of around $1 trillion, although this is not factored into current valuations due to unpredictability [8].

Group 1 - Nokia Corporation shares are trading lower premarket following the announcement of a collaboration with Telefónica to implement advanced networking solutions across new Edge data centers in Spain [1] - The deployment will involve Nokia's networking solutions in 17 Edge nodes, with 12 already operational, including at Telefónica's Tecno-Alcalá site [2] - This initiative is part of a broader plan to enhance AI capabilities and digital services in sectors such as healthcare and education, emphasizing data sovereignty and innovation in Spain [3] Group 2 - The partnership positions Nokia as the exclusive provider of networking technology for Telefónica's Edge network, simplifying operations and enhancing efficiency [3] - Nokia's involvement underscores its leadership in AI-ready, high-performance data center networking solutions, utilizing technologies like the 7220 Interconnect Router and 7750 Service Router [4] - This initiative strengthens Nokia's market position and supports a nationwide distributed Edge architecture in Spain, highlighting its role as a trusted partner in building secure and reliable data center networks [5] Group 3 - Recently, Nokia announced a collaboration with Amazon Web Services to introduce an AI-powered 5G-Advanced network slicing solution [6] - This strategic partnership aims to bring agentic AI capabilities to live 5G networks, enhancing telecommunication providers' ability to deliver premium services precisely when and where needed [7]