Alphabet Inc. (GOOGL) is a multinational technology conglomerate. Headquartered in Mountain View, California, Alphabet serves as the parent company of Google and several other businesses in areas like cloud computing, autonomous vehicles, life sciences, and venture capital. Alphabet’s market cap stands at around $3.8 trillion, making it one of the most valuable companies in the world. Companies valued above $200 billion are typically classified as “mega-cap stocks,” and GOOGL easily falls into that categ ...

23 February 2026 | 4:18PM EST Equity Research GLOBAL TECHNOLOGY Global Data center Supply/Demand update: Tight conditions likely to extend through 2026 + Read-across for Power, Hardware, and Industrial Tech / Engineering Since the October update of our data center supply/demand model, where we updated for 2Q25, fundamental supply/demand indicators remain healthy in the medium term, occupancy rates continue at elevated levels for outsourced data center providers across key global markets, and our checks cont ...

Microsoft Corporation (NASDAQ:MSFT) ranks among billionaire David Tepper’s 10 favorite stocks. Microsoft Corporation (NASDAQ:MSFT) reported its fiscal Q2 2026 earnings on January 28, with total revenue up 17%, driven by strong demand for its cloud services and AI programs. On an adjusted basis, profitability also exceeded expectations, with adjusted EPS of $4.14 versus the projected $3.92. drserg / Shutterstock.com The company’s Intelligent Cloud revenue totaled $32.91 billion, exceeding forecasts of $3 ...

Explanation of Non-GAAP measures Q4 2025 Earnings Presentation ( N A S D A Q : N I C E ) Disclaimer Forward Looking Statements Disclaimer This presentation contains forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements may be identified by words such as "believe", "expect", "seek", "may", "will", "intend", "should", "project", "anticipate", "plan", and similar expressions. Forward-looking statements are based on ...

Core Viewpoint - Alphabet's stock has experienced a significant decline, driven by concerns over capital expenditures and regulatory challenges, despite some positive developments in acquisitions and infrastructure expansion [2][5]. Group 1: Stock Performance - Alphabet's stock dropped 5.29% this week, closing at $306.02, which is a sharper decline compared to the S&P 500 and Nasdaq-100 [2]. - Year-to-date, Alphabet is down 2.48%, underperforming both the S&P 500 and Nasdaq-100 indexes [2]. Group 2: Capital Expenditures - Alphabet's capital expenditure guidance for 2026 is set at $175-185 billion, aimed at AI buildout and cloud expansion, causing concern over near-term profitability [3]. - To fund this expansion, Alphabet issued $20 billion in multi-tranche bonds, including a rare 100-year sterling bond worth £1 billion, which further impacted the stock negatively [4]. Group 3: Regulatory Developments - EU regulators approved Alphabet's $32 billion acquisition of Wiz, clearing a significant antitrust hurdle, which provided a temporary boost to the stock [5]. - However, regulatory pressures persist, with the European Publishers Council filing an antitrust complaint against Google regarding the use of publisher content and the UK's Competition and Markets Authority enforcing app store changes [5]. Group 4: AI Infrastructure Expansion - Alphabet announced Project Mica, a $10 billion data center campus in Kansas City, requiring up to 500 megawatts of power [6]. - The company secured a 15-year, 1 GW solar capacity agreement with TotalEnergies for its Texas data centers, representing 28 TWh of renewable energy [6]. - Google increased its stake in TeraWulf to 14%, supporting the expansion of the Lake Mariner data center as TeraWulf shifts focus from bitcoin mining to AI infrastructure [6].

Core Insights - Alibaba is set to release its third quarter earnings soon, with expectations for continued profit improvement and core e-commerce growth [1][2] - The company is undergoing a significant AI transformation project valued at $380 billion, which is expected to enhance profitability through cloud and AI solutions [5][7] Financial Performance Expectations - Analysts are looking for profit improvement from Q1 to Q4, alongside a resurgence in core e-commerce growth, which has been lacking [2][4] - Cloud revenue is projected to grow at 38%, indicating strong performance in this segment [7] Market Dynamics - The Chinese e-commerce market is shifting towards quality over volume, with consumers becoming more strategic in their purchasing decisions [8][9] - Government policies aimed at reducing excessive competition may help Alibaba stabilize its e-commerce profitability [10] Investment Sentiment - Current market conditions show a decline in stock prices, but analysts suggest that this presents a buying opportunity, particularly in the KWEB ETF [11][12] - There has been significant buying activity from mainland Chinese investors in the Hong Kong market, totaling $11 billion this week [13] AI and Robotics Trends - The AI sector is experiencing rapid growth, with triple-digit increases in AI-related cloud billings expected [16] - China is positioned as a leader in the robotics market, commanding 90% of global humanoid robot sales projected for early 2026, providing a first-mover advantage [17]

Group 1: Industry Trends - The high-tech manufacturing PMI is at 52.0%, indicating a sustained positive development trend in related industries such as electronics, software, and communication services [1] - Policies aimed at boosting domestic demand are being implemented, including a focus on promoting consumption of durable goods like automobiles and home appliances [1] - There is a shift from "involution" competition to value-oriented competition, creating investment opportunities in sectors like energy metals and specialty steel [1] Group 2: Investment Opportunities - The top five sectors with net inflows include shipbuilding, military industry, film and television, automotive parts, and semiconductors [1] - The leading concepts with net inflows are military groups, liquid-cooled servers, large fund concepts, drones, and Tencent-related stocks [1] - The top ten individual stocks with net inflows include Light Media, Bona Film Group, Invec, Daily Interaction, Hailanxin, China Shipbuilding, Huafeng Technology, Northern Huachuang, Zhongji Xuchuang, and Wangsu Technology [1] Group 3: AI and Technology Developments - The AI healthcare market in China is projected to reach 97.6 billion yuan by 2028, with significant applications in areas like consultation and medical report generation [3] - The global AI computing power center is experiencing explosive growth, leading to a scarcity of transformers, with delivery times in the U.S. extending from 50 weeks to 127 weeks [3] - Domestic large model manufacturers are leveraging major holiday events to enhance user engagement and accelerate commercialization in AI applications [5] Group 4: Market Overview - The overall market trend is weak, with limited new capital entering and a weak profit-making effect [7] - The Shanghai Composite Index saw a nearly 20% increase over the past year, but the market remains challenging for traders [11] - The valuation metrics indicate that the stock market is relatively low compared to historical averages, with the overall A-share index PE at 23.3 [11]

Core Viewpoint - Fastly Inc (NASDAQ:FSLY) is experiencing significant stock price appreciation, reaching nearly two-year highs with a 61.4% increase to $15.02, following strong earnings and revenue forecasts [1] Group 1: Financial Performance - Fastly reported earnings of 12 cents per share on record revenue of $172.6 million, exceeding expectations [1] - The company provided strong full-year revenue and profit forecasts, contributing to the stock's surge [1] Group 2: Market Activity - Fastly is currently the most popular stock in options trading, with 44,000 calls and 18,000 puts exchanged, significantly higher than typical volumes [3] - The most popular options include the weekly 2/13 15-strike call and the February 14 put, with new positions being opened [3] Group 3: Short Interest and Analyst Ratings - Short interest in Fastly represented 10% of the stock's available float prior to the surge, indicating potential short covering contributed to the price increase [4] - Seven out of ten analysts still maintain a "hold" or worse rating on Fastly, with a 12-month consensus price target of $11.86, representing a 21% discount to current levels [4]

Summary of Kingsoft Cloud (KC) Conference Call Company Overview - **Company**: Kingsoft Cloud (KC) - **Market Cap**: $3.7 billion - **Enterprise Value**: $4.0 billion - **Industry**: China Internet Verticals Key Points and Arguments Investment Upgrade - **Rating Upgrade**: KC upgraded to Buy from Neutral with a 12-month target price of $15.60, implying a 16.2% upside from the current price of $13.42 [1] Revenue Growth Projections - **Revenue Growth**: Anticipated revenue from Xiaomi to increase by 10-15% in 2026E-27E, leading to a 37% revenue CAGR from Xiaomi in 2025E-28E [1] - **Overall Revenue Forecast**: KC's revenue forecast for 2026E-28E is 14% above the Visible Alpha consensus, modeling a 22% revenue CAGR [1] AI Investment and Demand - **Xiaomi's AI Investment**: Xiaomi plans to increase its AI investments to Rmb10 billion in 2026E, up from Rmb7 billion+ in 2025, which is expected to benefit KC significantly [1] - **AI Revenue Contribution**: AI-related revenue is projected to account for 58% of total revenue by 2028E, up from 31% in 2025 [24] Customer Base and Revenue Sources - **Revenue from Major Customers**: By 2028E, Xiaomi and Kingsoft combined are expected to account for 39% of KC's revenue, up from 20% in 2024 [34] - **Third-Party Revenue Growth**: KC's third-party public cloud revenue is expected to grow from +7%/15% YoY in 2024/2025E to +25% YoY in 2026E, indicating strong demand from other internet and AI companies [2] Financial Performance and Projections - **Revenue Projections**: - 2026E Revenue: Rmb12,087 million - 2027E Revenue: Rmb14,780 million - 2025E Revenue: Rmb9,515.8 million [6] - **EBITDA Projections**: - 2026E EBITDA: Rmb3,523.9 million - 2027E EBITDA: Rmb4,749.9 million [6] Capital Expenditure and Funding - **Capex Growth**: Projected capex of Rmb9 billion in 2026E, representing a 30% YoY growth, supported by a stronger balance sheet post-Rmb4 billion equity capital raised in 2025 [18] - **Funding Sources**: Prepayments from Xiaomi and major third-party customers are expected to cover at least a quarter of chip procurement capex [18] Market Dynamics - **Cloud Pricing Trends**: Rising upstream costs (GPU/CPU and memory) are making cloud pricing more dynamic. KC is expected to maintain profitability rather than pursue market share aggressively [19] - **Competitive Positioning**: KC's focus on premium customers (top 5 customers accounted for 75% of public cloud revenue in 2025E) allows it to be less affected by price changes compared to long-tail customers [19] Risk Factors - **Profitability Concerns**: KC's gross profit margin is projected to be 16-17% on average in 2026E-28E, which is significantly lower than competitors like AliCloud [20] - **Debt and Cash Flow**: KC is expected to have a net debt position and negative free cash flow over the next 4-5 years, which poses risks to its financial stability [20] Additional Important Insights - **Customer Segmentation**: The top five customers are expected to account for a significant portion of revenue, indicating a concentrated customer base [36] - **Future AI Models**: Xiaomi's upcoming AI models are expected to drive further demand for AI training clusters, enhancing KC's growth prospects [2] This summary encapsulates the key insights from the conference call regarding Kingsoft Cloud's financial outlook, market positioning, and growth strategies in the context of increasing AI investments and evolving market dynamics.

Summary of Key Points from the Conference Call Transcript Industry Overview - The focus is on the **Global Cloud Capital Expenditures (Capex)**, which is projected to reach **$735 billion** in 2026, marking a **60% year-over-year (Y/Y) growth**. This is the third consecutive year of such growth in the cloud sector [2][4][8]. Core Insights - The **2026 cloud capex** forecast is **$120 billion** higher than previous estimates, driven by strong guidance from major players like **Google (GOOGL)**, **Amazon (AMZN)**, and **Meta (META)** [4][11]. - Despite a projected **57% Y/Y growth** in 2026, which indicates a deceleration from 2025, it still represents an unprecedented growth rate for the top 11 cloud spenders [4][11]. - The **aggregate cloud capex** for 2025-2026 is now estimated at **$1.2 trillion**, which is **$500 billion** higher than forecasts made a year ago, equating to **26% of total revenue** for these companies [4][8]. - The **capital spending intensity** among the top 11 cloud providers has increased to over **25%** of total revenue, which is **three times** the average from 2014 to 2023 [8][11]. Company-Specific Guidance - **Meta** has guided for a capex of **$115-135 billion** in 2026, reflecting a **73% Y/Y increase** at the midpoint, focusing on AI infrastructure [11]. - **Google** anticipates a capex of **$175-185 billion** (+97% Y/Y at midpoint), with significant investments in AI and cloud infrastructure [11]. - **Amazon** expects to spend around **$200 billion** in 2026 (+52% Y/Y), primarily for AWS, driven by growth in both AI and non-AI workloads [11]. - **Microsoft** did not provide specific capex guidance but indicated a decline in Q/Q capex due to normal variability in cloud infrastructure buildouts [11]. Additional Insights - The **monthly tokens processed** by major cloud service providers (CSPs) are growing exponentially, indicating a surge in demand for AI inference [19][20]. - The **US top 4 hyperscalers** are expected to see cloud revenue growth accelerate to the **30-35% range** over the next several quarters, the strongest growth since 2020 [22]. - The **non-AI cloud capex** growth is projected to accelerate to **80% Y/Y in 2025**, followed by nearly **60% Y/Y growth** expected in 2026 [24]. Conclusion - The overall outlook for cloud capex remains robust, with significant investments anticipated from major players in the industry. This trend is expected to benefit component suppliers with high exposure to cloud capex, indicating potential investment opportunities in this sector [5][8].