Core Insights - Rackspace Technology has formed a strategic alliance with Sema4.ai to enhance enterprise AI solutions, integrating Rackspace's Foundry for AI (FAIR™) services with Sema4.ai's SAFE AI Agent Platform [1][5] - The collaboration aims to bridge the gap between AI experimentation and full-scale enterprise adoption, addressing the current statistic that only 24% of enterprises have AI agents in production [2][3] Company Overview - Rackspace Technology is a leading provider of hybrid cloud and AI solutions, focusing on the secure and responsible use of AI technologies to drive business transformation and improve customer experience [6][7] - Sema4.ai positions itself as an innovator in enterprise AI agents, emphasizing the importance of these agents in revolutionizing knowledge work and operational efficiency [9][10] Partnership Benefits - The partnership allows businesses to design and deploy custom AI agents tailored to specific use cases, with seamless integration across various functions such as HR, finance, and customer support [3][4] - The SAFE platform from Sema4 enables the integration of advanced AI capabilities into existing enterprise environments, promoting resilience and interconnectivity among AI agents [5][9] Market Context - Rackspace's AI research report highlights a critical gap in AI adoption, indicating a strong market opportunity for solutions that facilitate the transition from experimentation to enterprise-wide deployment [2] - The collaboration is expected to empower businesses to operationalize AI at scale, moving beyond testing to effective deployment of AI agents [4][5]

Whenever the stock market experiences significant volatility, as it has this year, it can be helpful to step back and examine the performance of broader equities over a decade or more. Doing so puts things in perspective. Corrections appear as pretty minor blips on a chart of the S&P 500's long-term performance, which consistently moves upward for those who wait long enough.That's why panic selling is never a good solution to market volatility. Even in challenging times, it's worth it to purchase shares of ...

The company is growing rapidly, but it's struggling to generate positive cash flow.Artificial intelligence (AI) is changing the game for many sectors. Cloud computing is no exception. The outsourced data center and computing strategy that has steadily gained market share in the last two decades is now seeing accelerating growth because of AI, which requires an immense amount of compute to train and operate.One cloud company to watch in the AI space is CoreWeave (CRWV 8.47%). It is an AI-focused cloud provid ...

Core Viewpoint - Oracle's stock surged after reporting strong fiscal Q4 results, with a market cap exceeding $600 billion, driven by robust cloud infrastructure growth and AI adoption [1][2][3] Financial Performance - Oracle's Q4 results surpassed consensus expectations, indicating a positive outlook for growth in the current fiscal year [2] - The company anticipates fiscal 2026 revenue to reach $67 billion, exceeding previous guidance of $66 billion [6] - Analysts have raised revenue growth expectations significantly due to Oracle's strong performance and growth prospects [9] Growth Catalysts - Oracle's remaining performance obligations (RPO) are projected to more than double in fiscal 2026, with an RPO of $138 billion at the end of fiscal 2025, reflecting a 41% year-over-year increase [7][8] - The company is expected to have around $280 billion in unfulfilled contracts by the end of the current fiscal year, indicating a strong revenue pipeline [11] - The global cloud computing market is projected to generate $2 trillion in revenue by the end of the decade, with significant opportunities in infrastructure-as-a-service and software-as-a-service [12] Capacity Expansion - Oracle plans to build 30 new dedicated data centers and increase multicloud data centers from 23 to 70 within the next 12 months, enhancing its capacity to capture market opportunities [13] Market Cap Projections - Consensus estimates suggest Oracle's earnings will increase by 12% in the current fiscal year, with potential for stronger growth in subsequent years [14] - Assuming a 20% annual earnings growth rate, Oracle's earnings per share could rise to $14.28 in five years, with a potential stock price of $381 by 2030, indicating a 77% upside from current levels [16][17] - Oracle's current market cap of $603 billion positions it well to exceed $1 trillion by the end of the decade, especially given its attractive valuation compared to the U.S. technology sector [18]

Artificial intelligence (AI) investors love Nvidia. One stock has crushed its returns in the last few months: CoreWeave (CRWV 8.45%). The stock in the AI-focused cloud computing provider (and large Nvidia customer) is up 268% since its initial public offering (IPO) in late March, while Nvidia stock is flat year to date as of June 15. Investors are falling in love with the rapid growth at CoreWeave and its huge growth projections when it comes to AI and the cloud. Are you missing out by not owning CoreWeave ...

With a market capitalization of just a tad under $3 billion, Apple (AAPL -1.43%) is one of the largest companies in the world. However, its revenue growth over the past few years has been modest, while much of its stock gains have come from multiple expansions, as its price-to-earnings (P/E) ratio has been increasing.The company also appears to have fallen behind in the artificial intelligence (AI) race, with Apple Intelligence features reportedly consistently running into delays. In addition, some high-gro ...

Core Viewpoint - The Zhejiang Provincial Office has issued implementation opinions to promote the innovative development of intelligent computing cloud services, aiming for significant advancements in technology and service scale by 2027 [1][2]. Group 1: Development Goals - By 2027, the scale of intelligent computing services provided through public cloud is expected to reach 60 EFlops, with breakthroughs in large-scale computing clusters [1]. - The initiative aims to cultivate 100 benchmark enterprises in intelligent computing cloud services and establish over 300 typical application scenarios [1]. Group 2: Key Areas of Focus - Accelerate breakthroughs in key technologies at the computing power layer, focusing on major projects related to AI chips, high-performance networks, and AI acceleration platforms [1]. - Promote the integration of intelligent computing cloud services in artificial intelligence applications, encouraging enterprises to utilize public cloud for model training and development [2]. Group 3: Support for Enterprises - Support the development of competitive intelligent computing cloud enterprises within the province, facilitating collaboration between AI and cloud computing companies [2]. - Encourage the establishment of a robust ecosystem for intelligent computing cloud services, fostering growth in industry-specific service enterprises [2].

This is where Amazon Web Services chips are born. I'm Christina Partzine at Annaperna Labs in Austin, Texas, a lab owned by AWS. And today they're announcing that their Graviton 4 CPU chip will offer 600 gigabytes per second of networking bandwidth, which would be potentially the largest in the public cloud.If you're confused what that means, an executive told me it's like running 100 CDs per second. That's how quickly data is being transferred. and really shows that their custom chip chip strategy is uh ga ...

Core Insights - Alibaba Group's shares have declined by 8.2% over the past month, underperforming both the Zacks Internet-Commerce industry and the Zacks Retail-Wholesale sector, indicating investor uncertainty despite advancements in its AI partnership with Apple [1][8]. Group 1: AI Partnership with Apple - Alibaba has released versions of its Qwen3 AI models compatible with Apple's MLX architecture, allowing integration with various Apple devices, which is a significant step towards introducing Apple Intelligence features in China [2][5]. - The partnership is strategically important as Apple's iPhone sales have surged, capturing the top position in China in May, with global sales increasing by 15% year-over-year in April and May [5]. - However, the collaboration faces scrutiny from U.S. officials, raising concerns about the integration of Alibaba's AI technology into iPhones sold in China, which could impact the partnership's timeline and implementation [6]. Group 2: Financial Performance - Alibaba's fourth-quarter fiscal 2025 results showed total revenues of RMB 236.5 billion, a 7% year-over-year growth, but this fell short of the Zacks Consensus Estimate by 1.49% [9]. - The adjusted EBITA grew by 36% year-over-year to RMB 32.6 billion, reflecting improvements in operational efficiency [9]. - The Taobao and Tmall Group reported a 12% year-over-year growth in customer management revenues, while the Cloud Intelligence Group saw an 18% year-over-year growth, with AI-related product revenues maintaining triple-digit growth for seven consecutive quarters [10]. Group 3: Regulatory Environment and Strategic Uncertainty - The regulatory landscape poses significant risks to Alibaba's growth, particularly concerning the Apple partnership, as U.S. resistance could limit potential revenue growth in the cloud segment [12]. - The Zacks Consensus Estimate for fiscal 2026 earnings has been revised downward by 1.5% over the past 60 days, indicating market pessimism regarding Alibaba's growth trajectory [11]. Group 4: Valuation and Competitive Landscape - Alibaba's stock trades at a forward P/E of 11.07X, significantly lower than the industry average of 22.29X, reflecting ongoing regulatory concerns and slower growth expectations [8][14]. - Despite recent declines, Alibaba's valuation metrics suggest it trades at a discount compared to global technology peers, which may present potential upside for patient investors [14]. - Competition in China's e-commerce and cloud markets is intensifying, with domestic rivals like JD.com and Pinduoduo, as well as international players like Microsoft and Amazon, posing challenges [17]. Group 5: Financial Position and Shareholder Value - Alibaba maintains a robust financial position with RMB 366.4 billion in net cash, providing flexibility for strategic investments and shareholder returns [18]. - During fiscal 2025, Alibaba repurchased $11.9 billion in shares and announced $4.6 billion in dividends, demonstrating a commitment to creating shareholder value [18].

Core Insights - Nebius Group N.V. (NBIS) is emerging in the AI infrastructure market, while Amazon (AMZN) is a dominant player with its AWS platform [1][8] - AI infrastructure spending is projected to exceed $200 billion by 2028, benefiting both companies but in differing magnitudes [2] Nebius Group N.V. (NBIS) - Nebius is focused on building full-stack AI infrastructure, including GPU clusters and cloud platforms, and has partnerships with Saturn Cloud and NVIDIA [3] - The company has increased its capital expenditure plan for 2025 to $2 billion, up from $1.5 billion, to expand its global footprint and meet rising demand [4] - NBIS aims to achieve an annual recurring revenue (ARR) of $750 million to $1 billion for 2025, with a revenue guidance of $500 million to $700 million [7] - The company has upgraded its AI cloud infrastructure, enhancing reliability and reducing downtime, which is expected to improve customer retention [6] - NBIS stock has appreciated 25.5% in a month, outperforming AMZN's 2.9% [9][16] Amazon (AMZN) - Amazon's AWS platform generated a 17% year-over-year revenue increase in Q1 2025, with an annualized revenue run rate of $117 billion and a backlog of $189 billion [8][10] - Amazon's AI segment is experiencing triple-digit percentage growth, with significant investments in custom silicon development and new AI model offerings [11] - The company plans to invest up to $20 billion in Pennsylvania for data center expansion and has previously allocated $10 billion in North Carolina [12] - Despite its strong position, Amazon faces capacity constraints and intense competition from Microsoft Azure and Google Cloud [13] Valuation and Market Position - Both NBIS and AMZN are considered overvalued, with NBIS trading at a Price/Book ratio of 3.52X compared to AMZN's 7.36X [17][18] - Analysts have revised earnings estimates downward for NBIS, while AMZN has seen marginal upward revisions [19][21] - Both companies currently hold a Zacks Rank 3 (Hold) [22]