Major banks are raising their AI revenue forecasts sharply. Citi increased its AI service revenue projections by 9 percent for 2026, 7 percent for 2027 and 17 percent for 2028, citing strong demand from cloud customers. Combined third-quarter revenue at AWS, Meta Platforms, Google and Microsoft grew 25 percent year over year. Citi now expects worldwide AI capital expenditure to hit $1.68 trillion in 2027, with roughly 64 percent coming from the four largest hyperscalers.
Hyperscaler growth details reinforce those projections. Amazon expects AWS revenue growth above 40 percent in fiscal 2027 and 2028. Google Cloud Platform reported 2,600 customers consuming over 100 billion tokens, up from 2,000 in the second quarter. Microsoft saw Microsoft 365 Copilot consumption-based billing customers rise more than 75 percent quarter over quarter. Hyperscaler backlogs grew 142 percent year over year.
On the equity side, Cerebras Systems and Nebius both posted strong FY 2025 results but face different challenges. Cerebras reported revenue of nearly $510.0 million, up 75.7 percent, with net income of $237.8 million and a net margin of 46.6 percent. Nebius posted revenue of $529.8 million, up 479 percent, with net income of $82.5 million and a net margin of 15.6 percent. Both companies carry negative free cash flow, with Cerebras at $392.8 million and Nebius at $3.7 billion.
Investor interest in AI extends beyond the US. Sequoia Capital closed its London office, but US investment in European AI ventures is accelerating, with $58.7 billion in venture capital flowing to European startups this year. US firms provided 70 percent of that total, and AI companies accounted for 68 percent of deals. Brighton Park Capital and Sixth Street Partners have also expanded in Europe.
AI is also making its way into physical security and product discovery. A hardware store in Thornton, Colorado uses an AI camera system from Veesion that alerts employees to shoplifting in real time. Veesion says nearly 7,000 stores worldwide use the software. Meanwhile, a new book studying 1,855 citations across 160 AI answers found that three out of four sources came from companies selling in the same category, raising questions about bias in AI recommendations.
Key Takeaways
- <ul><li>Citi raised AI revenue projections by 9% for 2026, 7% for 2027 and 17% for 2028</li><li>Combined Q3 revenue at AWS, Meta, Google and Microsoft grew 25% year over year</li><li>Citi forecasts worldwide AI capital expenditure reaching $1.68 trillion in 2027</li><li>Amazon expects AWS revenue growth above 40% in fiscal 2027 and 2028</li><li>Microsoft 365 Copilot consumption-based billing customers rose over 75% quarter over quarter</li><li>Cerebras FY 2025 revenue hit $510.0 million with 46.6% net margin</li><li>Nebius FY 2025 revenue reached $529.8 million with 15.6% net margin</li><li>$58.7 billion in venture capital went to European startups, with US firms providing 70%</li><li>Veesion AI camera system is used in nearly 7,000 stores worldwide</li><li>Three out of four AI recommendation sources favor companies selling in the same category</li></ul>
Cerebras vs Nebius: Which AI stock is a better buy for 2027
Cerebras Systems makes massive wafer-scale chips to speed up AI model training. Nebius Group runs a cloud platform built for the full AI deployment lifecycle. Cerebras reported FY 2025 revenue of nearly $510.0 million, up 75.7 percent, with net income of $237.8 million. Nebius reported FY 2025 revenue of $529.8 million, up 479 percent, with net income of $82.5 million. Both companies are growing fast but face risks from intense competition in the AI hardware and cloud markets.
Cerebras vs Nebius: AI stock comparison for 2027 investors
Cerebras Systems focuses on wafer-scale processors to accelerate AI training while Nebius Group provides a unified cloud platform for AI data and model lifecycle management. Cerebras achieved a net margin of 46.6 percent in FY 2025 but had negative free cash flow of $392.8 million. Nebius reached a net margin of 15.6 percent in FY 2025 with negative free cash flow of $3.7 billion. Stock-based compensation made up 21.6 percent of Nebius operating cash flow. Both stocks saw gains on the day, with Cerebras up 9.75 percent and Nebius up 7.58 percent.
Cerebras vs Nebius: Which AI stock wins for 2027
Cerebras Systems builds specialized AI computing systems using wafer-scale chips covering nearly an entire silicon wafer for faster AI inference and training. Nebius Group targets industries like healthcare, finance and media with computing infrastructure for AI deployment and positions itself as a provider for physical AI and robotics startups. Cerebras improved from a net loss of $481.6 million in the prior year to net income of $237.8 million in FY 2025. Nebius shifted from heavy losses to positive net income of $82.5 million. Cerebras faces risks from intense competition and the need to keep innovating against larger rivals.
Citi raises AI revenue outlook through 2028 on cloud growth
Citi increased its AI service revenue projections by 9 percent for 2026, 7 percent for 2027 and 17 percent for 2028. Combined third-quarter revenue at AWS, Meta Platforms, Google and Microsoft grew 25 percent year over year. Cloud revenue growth among the three largest providers accelerated to 56 percent year over year. Amazon expects AWS revenue growth above 40 percent in fiscal 2027 and 2028. Citi projects worldwide AI capital expenditure will reach $1.68 trillion in 2027, a 64 percent increase from 2026, with about 64 percent coming from the four largest hyperscalers.
Citi lifts AI revenue forecasts as hyperscaler demand climbs
Citi raised AI revenue estimates by 9 percent for 2026, 7 percent for 2027 and 17 percent for 2028 due to strong demand for AI services. Combined revenue at AWS, Meta Platforms, Google and Microsoft grew 25 percent year over year in the third quarter. Google Cloud Platform reported 2,600 customers consuming over 100 billion tokens, up from 2,000 in the second quarter. Microsoft saw Microsoft 365 Copilot consumption-based billing customers rise more than 75 percent quarter over quarter. hyperscaler backlogs grew 142 percent year over year and Citi forecasts AI capital expenditure of $1.68 trillion in 2027.
Thornton hardware store fights shoplifting with AI cameras
A Thornton, Colorado hardware store is using an AI camera system from Veesion to stop shoplifting. The system watches live video and sends employees real-time alerts with video clips when it spots suspicious activity. Manager Richard McLamb says employees can respond within about 10 seconds of an alert. Veesion reports nearly 7,000 stores worldwide use the software, including about 1,000 in the U.S. The technology aims to help retailers address the growing problem of retail theft, which costs over $100 billion a year.
VibeCode30 2026 showcases 30 AI-built products from India
YourStory launched VibeCode30 at TechSparks 2026 in Bengaluru, presented by Hostinger. The initiative highlights 30 AI-native products built by individuals and small teams, many without formal coding experience. The cohort received 207 applications from across India, representing 19 industries and 11 cities. Products range from tools for house hunting and financial literacy to healthcare and business operations. Every selected product was beyond the prototype stage and available to real users.
Sequoia's London exit does not signal US investors leaving Europe
Sequoia Capital closed its London office but this is not a sign that US investors are losing interest in European startups. US investment in European AI ventures is flowing faster than expected, with $58.7 billion in venture capital going to European startups this year. US firms provided 70 percent of that total, and AI companies accounted for 68 percent of deals. Other US firms like Brighton Park Capital and Sixth Street Partners have expanded in London or mainland Europe. Investors believe Europe is on the same trajectory of innovation as the US.
Security researcher finds Android takeover bug using AI in hours
Security researcher Max Justicz used a frontier AI model to find a critical bug in APT, the package manager behind Debian and Ubuntu. He then used the same AI approach to take over a fully patched Android phone remotely via cellular networks in just one afternoon. He reported the APT bug in September 2026, and it took five to six weeks to patch. Justicz says AI is making it possible for ordinary people to find serious security flaws that once required years of expertise.
S&P 500 sees biggest weekly drop since 2025 over AI trade fears
US stocks had their biggest weekly loss since April 2025, driven by concerns over the artificial intelligence trade. The S&P 500 ended the week down 2.7 percent, despite a small gain on Friday. The drop came after Democrats swept the US midterm elections. While the Nasdaq 100 rose 1.4 percent on Friday, the gains were not enough to recover from earlier losses. Market analysts said the AI trade got politically harder, though not impossible.
AI stocks stop worldwide sell-off as Wall Street cuts weekly loss
AI stocks halted a severe worldwide sell-off. Wall Street trimmed its losses for the week. The market showed signs of stabilization after major declines in artificial intelligence related shares.
New book reveals AI recommendation lists often favor sellers
A new book examines how AI tools like ChatGPT recommend products and companies. Researcher Dykstra studied 1,855 citations across 160 AI answers. She found that three out of four sources came from companies selling in the same category, and many lists read as neutral but are actually sales pitches that leave good companies out.
Aramco invests $2.6 billion to boost Humain AI development
Aramco will invest $2.6 billion to acquire 49% of Humain. The Public Investment Fund will keep 51% control of the company. Aramco will also transfer digital assets and AI technologies to help Humain expand its data centers and cloud computing platforms in Saudi Arabia and other markets.
Sources
- Cerebras Systems vs. Nebius: Which Artificial Intelligence Stock Is a Better Buy Going into 2027?
- Cerebras Systems vs. Nebius: Which Artificial Intelligence Stock Is a Better Buy Going into 2027?
- Cerebras Systems vs. Nebius: Which Artificial Intelligence Stock Is a Better Buy Going into 2027?
- Citi Upgrades AI Revenue Outlook as Hyperscalers Accelerate Cloud Growth and Investment
- Citi Raises AI Revenue Forecasts Through 2028 as Cloud Demand Accelerates
- Thornton hardware store uses AI system to fight shoplifting
- VibeCode30 2026: The 30 AI-built products to watch from India
- Sequoia's London Exit Not a Sign US Investors Are Souring on Europe
- Security Researcher Max Justicz Finds Remote Android Takeover With AI in One Afternoon
- S&P 500 Posts Biggest Weekly Drop Since 2025 On AI Trade Worries
- AI stocks halt their brutal, worldwide sell-off as Wall Street trims its loss for the week
- When AI Picks the Shortlist
- Aramco will invest $2.6 billion in Humain
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