Core Insights - The article discusses the expertise of a DevOps Engineer specializing in AI tools and applications, highlighting their deep knowledge in generative AI systems and machine learning algorithms [1] - The engineer is pursuing advanced AWS machine learning certifications to enhance their expertise in AI and machine learning [1] - The engineer contributes insights on AI and machine learning through an investment-focused lens on Seeking Alpha [1] Group 1 - The engineer works for a major subsidiary of a large-cap Fortune 500 company, indicating a strong corporate backing and resources [1] - The engineer ranks 716 out of 31,463 financial bloggers and 1,222 out of 41,143 experts according to TipRanks, showcasing their credibility and influence in the investment community [1] - The article emphasizes that the engineer has no current stock or derivative positions in any mentioned companies, ensuring an unbiased perspective [1] Group 2 - The engineer's insights are based on first-hand experience with the buildout, deployment, and maintenance of AI systems, which adds practical value to their analysis [1] - The article does not provide specific investment recommendations or advice, maintaining a neutral stance on investment suitability [2] - The content reflects the views of individual authors rather than Seeking Alpha as a whole, indicating a diversity of opinions within the platform [2]

Group 1: AI Investment Theme - AI investing is expected to remain a significant theme in 2026, with opportunities for end-of-year rallies as institutional investors adjust their portfolios [1][2] Group 2: Alphabet (GOOG) - Alphabet, the parent company of Google, has established itself as a leader in the AI space with its Gemini generative AI model, which is integrated with Google Search [3][5] - Investor concerns regarding generative AI replacing Google Search and antitrust issues have diminished, leading to a more favorable outlook for Alphabet's stock [4][5] - The stock is currently trading at a discount compared to its big tech peers, suggesting potential for substantial price increases in the coming years [5][7] Group 3: Meta Platforms (META) - Meta Platforms, which includes Facebook and Instagram, is enhancing its advertising effectiveness through AI, resulting in higher conversion rates and increased revenue [8][9] - The company reported a 22% revenue growth in Q2, and ongoing improvements in AI tools are expected to drive further growth [9] - Meta's introduction of second-generation AI glasses could create a new revenue stream, although the success of this product remains uncertain [10] Group 4: Amazon (AMZN) - Amazon's profitability is largely driven by Amazon Web Services (AWS), which is a leader in the cloud computing market [11][12] - AWS accounted for 18% of total revenue but contributed 53% of operating profits, highlighting its importance for Amazon's financial health [13] - If AWS can accelerate its growth rate from 17% to a range of 30% to 40%, it could significantly benefit Amazon shareholders in 2026 [13]

Group 1 - Amazon.com, Inc. (NASDAQ:AMZN) is recognized as one of the Top 10 Long-Term Stocks to Invest In according to David Tepper, with a Buy rating reiterated by Mizuho Securities and a price target set at $300 [1] - Lloyd Walmsley from Mizuho highlights the potential of Amazon's cloud business, particularly AWS, which is expected to benefit from increased capacity and rising inference demand in 2026 [1][2] - Wells Fargo upgraded Amazon from Equal Weight to Overweight, raising the price target from $245 to $280, with expectations of AWS revenue growth accelerating to 22% in 2026, which is four points above consensus [4] Group 2 - The analyst believes that the ecosystem of Amazon Cloud Services provides a strong foundation for continued growth in the GenAI era, with improved supply and cost efficiency from ASICs expected to drive revenue growth in the latter half of 2025 and into 2026 [3] - Amazon offers a diverse range of products and services, including retail sales of consumer products, advertising, and subscription services through both online and physical stores [5]

Group 1 - Goldman Sachs raised its price target on Amazon.com to $275.00 from $240.00 while maintaining a Buy rating [1] - The firm views Amazon as a preferred large-cap name ahead of third-quarter earnings, focusing on the AWS cloud segment and the Advertising business [1] - Analysts project AWS could deliver over 20% top-line growth and sustain GAAP EBIT margins in the low-to-mid-30% range through the second half of 2025 and into 2026 [1] Group 2 - Goldman's outlook is supported by Amazon's revenue backlog, easing capacity constraints, and expanding AI services, including contributions from Anthropic [2] - The firm reiterated its Buy stance and updated its operating estimates, noting an upside-to-downside skew of approximately 3-to-1 from current levels [2]

Core Viewpoint - Wall Street analysts are increasingly optimistic about Alibaba Group (BABA), driven by its cloud and AI momentum, with Morgan Stanley raising its 12-month price target from $165 to $200 due to strong performance in its cloud business and AI investments [1][2]. Group 1: Company Developments - Alibaba is expanding its data centers in Brazil, France, and the Netherlands, collaborating with Nvidia on "physical AI," and launching its Qwen3-Max AI model, which has over one trillion parameters [2]. - The company is significantly enhancing its cloud computing division, Alibaba Cloud, which is a major contributor to its revenue growth [3]. Group 2: Market Performance - Alibaba's market capitalization is approximately $426 billion, and its stock has more than doubled in 2025, making it one of the top performers in the market [4]. - The stock rally is attributed to easing regulatory pressures in China and strong growth driven by cloud, international, and AI sectors, alongside optimism regarding Jack Ma's return and positive Q1 earnings [4]. Group 3: Valuation Metrics - Alibaba's price-to-sales (P/S) ratio stands at 2.86, significantly higher than the sector median of 0.99, indicating a relatively expensive stock compared to peers [5]. - The price-to-earnings (P/E) ratio is 19.95, slightly lower than the sector median of 20.42, suggesting a more reasonable valuation in this aspect [5]. - The current dividend growth rate is -47.5% (TTM), compared to the sector median of 5.4%, and the dividend yield is only 1.2%, indicating a less attractive option for income-focused investors [5].

Core Insights - Amazon shares have increased nearly 40% since the lows in April due to tariffs, but the stock is underperforming compared to its peers in the "Mag 7" group in 2025, being flat for the year while others have risen at least 15% [1][2] - The company is well-positioned in the AI sector, with significant investments in custom silicon and partnerships that could enhance its competitive edge [9][10] Company Performance - Amazon's stock is currently flat for the year, contrasting with the performance of other major tech stocks [1][2] - The company has announced various new products and partnerships, including a collaboration with the NBA and WNBA, which utilizes AWS [3][4] AI and Technology Investments - Amazon is heavily investing in AI infrastructure through AWS, with expectations for announcements related to custom silicon and AI services at their upcoming event [6][7][8] - The company is positioned to benefit from the growing demand for AI services, with a focus on workloads that do not require cutting-edge GPUs [9][10] Upcoming Events - Amazon is set to report earnings at the end of October, which is anticipated to be a significant event for the company [13] - The company will also have Prime Days next week, which could impact retail performance [13] Trading Strategies - Various trading strategies are being considered around Amazon's upcoming earnings, including bullish call verticals and cash-secured puts [15][18] - The bullish call vertical strategy involves buying a call option while selling another at a higher strike to offset costs, while the cash-secured put strategy allows for potential share acquisition if the stock price falls [15][18][20]

Group 1 - Goldman Sachs has raised its price target for Amazon from $240 to $275, indicating a positive outlook for the company [1] - There has been bearish sentiment regarding AWS, with concerns about spending and competition, but the Goldman report addresses these issues positively [1] - The report highlights unappreciated advertising tailwinds for Amazon ahead of the holiday season, suggesting a well-timed call [2] Group 2 - Anthropic is mentioned as a significant part of the discussion, although Amazon itself is not directly referenced [2]

Core Viewpoint - Alibaba Group Holding Limited (NYSE:BABA) is gaining attention from Wall Street analysts, particularly due to its recent announcement to increase AI spending by $53 billion, which has positively impacted its stock price [1][2] Group 1: AI Investment and Market Position - The announcement of a $53 billion investment in AI has generated excitement, indicating Alibaba's intent to compete in the AI sector, although it faces significant constraints compared to US tech giants like Microsoft and Amazon [2] - Alibaba's lack of access to advanced chips and resources that US companies possess may hinder its ability to compete effectively in the AI race [2] Group 2: Financial Performance and Shareholder Actions - Alibaba experienced a 12.8% decline in stock value, following a remarkable 55.3% return in the previous quarter, despite reporting generally positive full-year results [3] - The company achieved an 18% growth in Cloud revenue over the past year, which, while met with some disappointment, is still viewed positively [3] - Alibaba has been actively engaging in share buybacks, repurchasing over 5% of its shares for the year ending March 2025, which is seen as a favorable action by investors [3]

To be sure, the Magnificent Seven — a group of megacap technology stocks including Apple, Microsoft Corp. MSFT, Google parent Alphabet Inc. GOOG GOOGL, Amazon, Nvidia Corp. NVDA, Tesla and Meta — have still dominated the AI narrative this year, accounting for about 36.4% of the S&P 500’s total market capitalization. But they’re no longer driving the S&P 500’s gains the way they did in 2023 and 2024.Just behind, Oracle Corp. ORCL and Palantir Technologies Inc. PLTR have also cracked the top 10 companies with ...

Key Points Meta Platforms signed a $14 billion deal with CoreWeave. The company has several deals with major tech companies. Revenue is expected to top $12 billion in 2026. 10 stocks we like better than CoreWeave › One side effect from the explosion in artificial intelligence (AI) in the last couple of years is the growth of some interesting tech stocks that have been able to take advantage of the trend. One example is CoreWeave (NASDAQ: CRWV), a New Jersey cloud-computing company that has been ...