Core Insights - Google has successfully navigated a significant legal challenge, avoiding the requirement to sell its Chrome or Android platforms, although it plans to appeal the ruling [1] - Google is actively collaborating with competitors in the AI sector, exemplified by a six-year partnership with Meta valued at over $10 billion for cloud services [2] - The demand for computing power in AI is increasing, benefiting Google as companies like Anthropic expand their use of Google Cloud's infrastructure [3][4] Company Developments - Google and Anthropic have expanded their partnership, with Anthropic increasing its use of Google Cloud's Tensor Processing Units (TPUs) and gaining access to over 1 GW of power by 2026 [4][5] - Anthropic's decision to utilize Google Cloud's AI infrastructure for model training reflects the efficiency and performance of Google's TPUs [5][6] - Despite its commitment to Amazon, Anthropic's collaboration with Google indicates a strategic diversification in response to the capacity-constrained AI market [7] Financial Outlook - Bank of America has raised its price target for Alphabet to $280, while adjusting Q3 revenue estimates to $86 billion (up 1%) and lowering EPS estimates to $2.17 (down 8%) ahead of the earnings report on October 29 [8]

Core Viewpoint - The Nasdaq Composite is experiencing a correction as investors are selling growth stocks due to concerns over tariffs, trade wars, and a potential economic slowdown, but long-term investments may yield significant returns [1] Group 1: Nvidia - Nvidia reported sales of $130.5 billion for the fiscal year ending January 26, more than double the previous year's $60.9 billion [3] - The company projects revenue of around $43 billion for the current quarter, a 65% increase from the previous year [4] - Nvidia trades at a forward P/E multiple of 26, which is only slightly above the average tech stock's forward P/E of 25, making it an attractive investment despite a recent 14% decline in stock price [5] Group 2: Amazon - Amazon has integrated AI into its operations, enhancing its online marketplace and logistics with robotics [6] - The company is launching an upgraded Alexa+ assistant for $19.99 per month, free for Prime members, and has invested $8 billion in AI company Anthropic [7] - With $33 billion in free cash flow reported in 2024, Amazon is well-positioned to invest in AI opportunities, trading at a forward P/E of 30 [8] Group 3: Advanced Micro Devices (AMD) - AMD has seen a 50% decline in stock value over the past 12 months, attributed to a slow rollout of AI chips and competitive concerns [9] - The company reported a 14% sales growth last year, totaling $25.8 billion, with potential for significant revenue growth in the future [11] - AMD trades at a forward P/E of 22, offering a lower-cost alternative to Nvidia's chips, but faces risks in proving its competitiveness in the AI chip market [10][11]