Core Insights - The AI boom has created new winners in various industries, but recent market volatility raises questions about the sustainability of AI growth as valuations outpace earnings [1] - Companies like Palo Alto Networks, Palantir Technologies, and Microsoft demonstrate resilience and long-term potential in the AI space despite market fluctuations [1] Palo Alto Networks (PAN) - In Q2 FY2026, PAN's total revenue grew 15% YoY to US$2.6 billion, with net income increasing nearly 62% YoY to US$432 million, driven by strong demand for its cybersecurity solutions [3] - PAN's management emphasizes that its security services are essential for enterprises transitioning from AI experimentation to full-scale integration [3] - Despite a decline in stock prices alongside other SaaS companies, PAN's AI-powered cybersecurity platform remains widely adopted [5] Palantir Technologies (PLTR) - Palantir differentiates itself from commoditized AI services by offering operational leverage to manage complex enterprise needs through its unique software architecture [6] - In Q4 2025, Palantir's total revenue surged 70% YoY to US$1.41 billion, with an adjusted operating margin increase of 12 percentage points to 57%, reflecting the strength of its AI offerings [9] - The company's products, such as Prisma AIRS and Cortex XSIAM, have seen significant adoption, with Cortex XSIAM achieving over US$0.5 billion in Annual Recurring Revenue [7] Microsoft (MSFT) - In Q2 FY2026, Microsoft reported a 17% revenue increase to US$81.3 billion, with net income rising 60% YoY to US$38.5 billion, fueled by its cloud business and service demand [10] - Microsoft has optimized its AI infrastructure, processing 50% more AI inference data per unit of resources, and has seen a 160% YoY increase in paid seats for Microsoft 365 Copilot [11] - The company anticipates slight increases in operating margins for FY2026, indicating ongoing operational efficiency [12] Investment Strategy - Investors are encouraged to focus on companies with durable competitive advantages rather than reacting to current market volatility, as the AI landscape continues to evolve [13] - The emphasis is on positioning for future growth based on substance rather than sentiment, particularly in the context of AI adoption and infrastructure [13]