Yesterday was a tale of two hyperscalers. Both Meta and Microsoft held after-the-bell earnings calls (for Meta’s fourth quarter and Microsoft’s second). Both have faced recent shareholder skepticism about the scale of investment in AI-powered data centers and their seemingly far-off returns. Both companies announced capex projections that blew past consensus expectations. And yet only one firm, Meta, seemed to overcome Wall Street’s wariness. Double standard? SUBSCRIBE:  Receive more of our free The Dail ...

The Nasdaq jumped 0.7% at the open to trade at 23,986, its highest price since early November. (The index was about flat in recent trading.) Its last record closing high—23,958.47—came on Oct. 29, right before earnings reports from tech giants amplified the debate on Wall Street about an AI bubble, dragging on tech stocks. Why are we back here? Because this year, investors have put those concerns aside to focus on the booming businesses of the companies supplying the technology that enables AI. Why This Is ...

A Wall Street Journal deep dive into artificial intelligence (AI) startup valuations found that they are not necessarily based on revenue or products. This could be seen as evidence of an AI bubble, as investors push and pull on the issue. 24/7 Wall St. Key Points A recent analysis found that artificial intelligence startup valuations are not necessarily based on revenue or products. The proliferation of well-funded startups is surely a sign of an AI bubble. Investors rethink ‘hands off’ investing an ...

CoreWeave has a lot to gain from OpenAI's growth.2026 could be the year that AI grows up.Three years after OpenAI launched ChatGPT, the AI boom is in full effect. Stocks like Nvidia have soared, adding trillions of dollars in market value, but there are still some doubts about whether AI will have the same real-world impact as the concerns about an AI bubble indicate.However, OpenAI CFO Sarah Friar recently said that 2026 will be a year of "practical adoption," meaning the start-up intends to close the gap ...

Core Viewpoint - The Russell 2000, a small-cap index, has shown strong performance at the start of 2026, outperforming the S&P 500 in the first 14 trading days of the year, indicating a potential shift in market dynamics favoring small-cap stocks [1][4]. Performance Comparison - The Russell 2000 has built a significant lead over large-cap stocks in the first three weeks of 2026, contrasting its underperformance in the previous five years [2][4]. - Historically, the S&P 500 has outperformed the Russell 2000, particularly during the AI boom, but the current trends suggest a possible reversal in 2026 [4]. Valuation Insights - The S&P 500 has seen a price-to-earnings (P/E) ratio of 28, making it one of the most expensive periods in its history, while the Russell 2000 ETF trades at a P/E ratio of 19.5, representing a discount of about one-third compared to the S&P 500 [5][6]. - For the Russell 2000 to match the valuation of the S&P 500, it would need to increase by approximately 50%, which may encourage a rotation from large-cap to small-cap stocks [6][7]. Interest Rate Impact - Small-cap stocks are more sensitive to macroeconomic factors, particularly interest rates. The Russell 2000 has increased by 17% over the last six months due to three rate cuts by the Federal Reserve, lowering the benchmark rate by 75 basis points [8]. - The Federal Reserve is currently forecasting one additional rate cut this year, but there is potential for more cuts, which could further benefit small-cap stocks [9]. Investment Opportunities - The iShares Russell 2000 ETF (IWM) is the largest small-cap ETF with net assets of approximately $75 billion, providing a straightforward way to gain exposure to small-cap stocks [10]. - Individual small-cap stocks such as Amplitude, a digital product analytics software company, and Innodata, a data-labeling specialist, are highlighted as potential breakout candidates for 2026 due to their growth prospects [11]. - The overall outlook for small-caps in 2026 appears positive, with various investment vehicles available for capitalizing on the expected market rotation [12].

Core观点 - CoreWeave's shares surged following the announcement of an expanded partnership with Nvidia, which previously contributed to discussions around the AI bubble on Wall Street [1][9] 分组1: 合作与投资 - CoreWeave and Nvidia have expanded their partnership to enhance the development of AI data centers utilizing Nvidia's technology stack [2] - Nvidia has committed an additional $2 billion investment in CoreWeave, building on a previous $250 million investment during CoreWeave's IPO [2] - CoreWeave will implement Nvidia's latest products, including storage systems and a new central processing unit [2] 分组2: 股市表现 - CoreWeave's stock increased by 8% in recent trading, leading a broader rally in AI stocks [3] - Since the beginning of the year, CoreWeave's stock has risen 40%, recovering from losses experienced during the AI bubble concerns in late 2025 [5] - The AI sector has seen a resurgence, particularly in memory chip and data storage stocks, which have benefited from a memory shortage [9] 分组3: 市场担忧 - Investors have expressed concerns that tech companies, including CoreWeave, may be overestimating future AI demand, leading to difficulties in recouping substantial investments [4] - CoreWeave was significantly impacted by scrutiny over debt-financed AI investments, with its shares losing over 50% of their value from late October to mid-December last year [7] - Skeptics draw parallels between CoreWeave's partnership with Nvidia and the vendor-financing deals of the Dotcom Bubble, suggesting that Nvidia's investments may be subsidizing an unsustainable AI data center boom [8]

Key Takeaways This year has started off with a mixed showing from America’s heavy-hitting “Magnificent 7” stocks. Their earnings, which kick off this week, could shed more light on how they’re approaching their challenges and breathe fresh enthusiasm into their shares. America’s heavy-hitting “Magnificent 7” stocks have driven years of market gains. That may not continue to be the case. This year has started with a mixed showing from the grouping of some of America’s biggest tech stocks, which acco ...

Core Insights - OpenAI's recent developments, particularly the launch of Gemini 3.0, have shifted market sentiment, favoring Google (Alphabet) over OpenAI, although volatility remains a concern for OpenAI's potential stock performance [1][2][5] - OpenAI's valuation could reach between $750 billion and $830 billion in the upcoming capital raise, despite financial uncertainties [3][4] - The potential for OpenAI's IPO could lead to a historic debut, possibly valued at $1 trillion, depending on future performance and market conditions [4] Company-Specific Insights OpenAI - Concerns about OpenAI's financial sustainability have led to significant market reactions, with fears of running out of cash by mid-2027 if capital raises do not occur [3] - The company is exploring monetization opportunities, which could enhance its market position and potentially lead to a resurgence against competitors like Google [5] Oracle - Oracle's stock has been negatively impacted due to its reliance on OpenAI, with approximately two-thirds of its remaining performance obligations (RPOs) tied to OpenAI's financial health [6][7] - Despite the risks, Oracle is viewed as a valuable investment, particularly due to its role in the GPU market, which could benefit from ongoing AI advancements [8] Microsoft - Microsoft has experienced a decline in stock value, attributed to the diminishing hype surrounding OpenAI, which is crucial for its Copilot product [9] - A significant capital raise, potentially around $50 billion, could alleviate investor concerns and improve Microsoft's stock performance, especially as earnings reports approach [10]

Core Insights - CoreWeave (CRWV) stock increased by over 13% following Nvidia's (NVDA) announcement of an additional $2 billion investment in the AI cloud company [1] - Nvidia aims to assist CoreWeave in building over five gigawatts of AI factory capacity by 2030, enhancing its AI native software and deploying multiple generations of Nvidia's AI systems [1][2] Investment Context - This new investment adds to Nvidia's existing $3.3 billion stake in CoreWeave, highlighting Nvidia's strategy of investing in "neocloud" companies focused on AI cloud offerings [3] - Nvidia's investments in its customers have raised concerns on Wall Street regarding a potential AI bubble [3] Market Dynamics - Demand for Nvidia's chips has led legacy cloud hyperscalers to turn to neoclouds for access to AI systems, with Microsoft being the largest revenue source for CoreWeave, followed by Meta and Alphabet [4] - CoreWeave's stock has risen nearly 16% for the month and 138% over the past year [4] Nvidia's Performance - Nvidia's shares experienced a slight decline on the same day, but are up 27% over the past year, despite facing uncertainties regarding its China business and geopolitical tensions affecting investor sentiment [5]

Core Insights - The current sentiment in the tech sector is characterized by "tech angst," primarily driven by concerns regarding software and the monetization of AI, leading to a cautious narrative among investors [1] - Long-biased tech investors are exhibiting a defensive posture not seen since the onset of the AI Revolution in late 2022 [2] Valuation Trends - Information technology stocks are trading at their lowest valuation premium to the S&P 500 in the post-pandemic era, with the "Magnificent Seven" stocks aligning with their post-pandemic average price-to-earnings multiples [3] - The price-to-earnings growth (PEG) ratio for megacap tech has fallen to 1.4 times, matching the low point reached in 2022, indicating potential valuation concerns [4] Earnings and Cash Flow Concerns - Investors are increasingly questioning the appropriateness of earnings-based valuations for AI-related stocks due to significant capital expenditures impacting free cash flows, leading to elevated price-to-free cash flow multiples [5] - Software stocks like Salesforce and Workday have experienced significant declines in 2026, down 14% and 12% respectively, reflecting broader concerns in the sector [5] Company Performance Highlights - Alphabet has shown resilience, with its shares up 5% in 2026 and a market cap exceeding $4 trillion, making it the best-performing member of the Magnificent Seven [6] - Nvidia, while still holding a market cap of $4.57 trillion, faces competition from Alphabet, which is positioning itself as a leading AI-centric stock for 2026 [7]