October 1, 2025

finance  
amd, google and nvidia Updates

The artificial intelligence landscape is seeing dynamic shifts, with AMD making significant strides in edge AI hardware. Following its 2022 acquisition of Xilinx, AMD is focusing on field programmable gate arrays (FPGAs) for AI inference on devices like AI PCs, cars, and robots, aiming for substantial growth in this sector despite a recent dip in its embedded chip business. Meanwhile, Alphabet is pursuing a dual strategy, leveraging its Gemini AI model for Google Search revenue growth while developing its own quantum computing chip, Willow, to reduce reliance on external hardware providers like Nvidia and Broadcom. Microsoft is also a strong contender, named a 'Top Pick' by Morgan Stanley due to its AI momentum, particularly with its Azure cloud platform and integration of OpenAI's models. Nvidia continues to lead in AI hardware, reinforced by analyst confidence and its introduction of the new Rubin CPX architecture for advanced AI tasks. The company also reported strong Q2 results and provided robust guidance, with partnerships with Intel and OpenAI bolstering its market position. However, the increasing effectiveness of AI tools presents a potential challenge for platforms like Fiverr, as they may reduce the need for certain freelance services. In the autonomous driving sector, Pony AI received a 'buy' rating from Citigroup, with analysts forecasting significant growth in the robotaxi market, especially in China. Catenai PLC, despite financial losses, is strategically investing in AI through a stake in Alludium Ltd, anticipating benefits in the autonomous AI market.

Key Takeaways

  • AMD is a leader in programmable chips for edge AI devices, focusing on FPGAs for AI inference and anticipating significant growth in this market.
  • Alphabet is investing in both AI, with its Gemini model powering Google Search, and quantum computing, developing its own Willow chip to reduce reliance on Nvidia and Broadcom.
  • Microsoft is a 'Top Pick' for Morgan Stanley, with its Azure cloud platform and OpenAI integrations driving AI momentum.
  • Nvidia continues to lead in AI hardware, introducing its Rubin CPX architecture and reporting strong financial results and guidance.
  • The growing effectiveness of AI tools may pose a risk to freelance platforms like Fiverr by reducing demand for certain services.
  • Pony AI received a 'buy' rating from Citigroup, with analysts predicting substantial growth in the robotaxi market, particularly in China.
  • Catenai PLC is investing in AI technology through Alludium Ltd despite experiencing financial losses.
  • Vertiv Holdings is favored by analysts over BigBear.ai in the AI stock comparison due to strong demand for data center infrastructure.
  • Nvidia's Q3 revenue guidance, excluding China, indicates continued demand acceleration for its AI hardware.
  • Analysts project AMD's embedded segment to grow at an annualized rate of 30%, highlighting its potential in edge AI.

AMD leads in AI chips for edge devices

Advanced Micro Devices (AMD) is a leader in programmable chips for edge devices, which are computers that process data locally. This technology is crucial for AI running on devices like AI PCs, cars, and robots. AMD's acquisition of Xilinx in 2022 made it a top provider of field programmable gate arrays (FPGAs), which are ideal for high-performance, low-latency AI tasks at the edge. While its embedded chip business saw a slight decrease last quarter, AMD anticipates significant growth in the edge AI market, potentially mirroring a 'ChatGPT moment' for these devices. Analysts expect AMD's embedded chip revenue to grow by 30% annually, offering substantial potential for investors.

AMD quietly challenges in AI hardware with edge computing focus

Advanced Micro Devices (AMD) is emerging as a key player in AI hardware, particularly in edge computing, following its 2022 acquisition of Xilinx. While Nvidia dominates AI training in data centers, AMD is focusing on AI inference, where AI tasks are processed directly on devices. The company's field programmable gate arrays (FPGAs) offer high performance and low latency for AI-enabled PCs, cars, and robots, reducing reliance on cloud servers. Despite a recent dip in its embedded segment revenue, AMD's long-term strategy in edge computing is seen as a significant growth opportunity. The flexibility and high profit margins of FPGAs position AMD as a strong contender in the evolving AI hardware market.

AMD is a top AI hardware stock for edge computing growth

Advanced Micro Devices (AMD) is positioned for significant growth in edge computing, where AI tasks are processed directly on devices rather than in data centers. The company's 2022 acquisition of Xilinx made it a leader in field programmable gate arrays (FPGAs), which are essential for high-performance, low-latency edge devices like AI PCs, cars, and robots. Although AMD's embedded chip business experienced a revenue decrease in the last quarter, the company sees a major opportunity in the edge AI market. FPGAs allow for AI inference at the edge, and their adaptability can lead to high profit margins. Analysts project AMD's embedded segment to grow at an annualized rate of 30%, suggesting strong potential for investors.

Alphabet combines AI and quantum computing for future growth

Alphabet, the parent company of Google, is strategically investing in both artificial intelligence (AI) and quantum computing, positioning itself for future technological advancements. Its Gemini generative AI model is widely used and powers features like AI search summaries, contributing to Google Search's continued revenue growth. Alphabet is also developing its own quantum computing chip, named Willow, which has demonstrated significant processing power. By creating its own quantum capabilities, Alphabet aims to reduce reliance on third-party hardware providers like Nvidia and Broadcom, potentially lowering costs and increasing profitability. This dual focus on AI and quantum computing makes Alphabet a strong candidate for long-term growth.

Alphabet leads in AI and develops quantum chip for future advantage

Alphabet is making significant strides in both artificial intelligence (AI) and quantum computing, positioning itself as a key player in emerging technologies. The company's Gemini generative AI model is highly utilized, enhancing Google Search and contributing to its revenue growth. Alphabet is also developing its own quantum computing chip, aiming to reduce dependency on external suppliers like Nvidia and Broadcom. This internal development of quantum technology, demonstrated by its Willow chip's capabilities, could provide a competitive edge and cost savings. By integrating advanced AI with its own quantum computing infrastructure, Alphabet is building a powerful foundation for future innovation and cloud services.

Citigroup initiates coverage of Pony AI with buy rating

Autonomous driving company Pony AI saw its stock price rise significantly after Citigroup initiated coverage with a buy recommendation and a price target of $29 per share. Analyst Jeff Chung believes the robotaxi market is at an inflection point, with strong potential in China, a key market for Pony AI. He forecasts robotaxi penetration in China to increase from 0.1% this year to 9% by 2030 and 30% by 2035. Citigroup also initiated coverage on Pony AI's competitor, WeRide, with a buy rating. This positive analyst outlook suggests confidence in the future growth of the autonomous driving sector, particularly in China.

Catenai PLC invests in AI despite financial loss

Catenai PLC reported a substantial financial loss for the first half of 2025, with revenues dropping significantly compared to the previous year. Despite these financial challenges, the company made strategic investments, including a £500,000 investment in Alludium Ltd, a company advancing AI technology. Catenai PLC is also implementing a Bitcoin-focused treasury policy. The company expects to benefit from Alludium's AI advancements, particularly in the autonomous AI market, aiming for future value creation.

Morgan Stanley names Microsoft a top pick citing AI momentum

Morgan Stanley has reiterated its 'Overweight' rating on Microsoft (MSFT) and named it a 'Top Pick' with a raised price target of $625. The firm believes Microsoft is well-positioned to benefit from the AI boom, despite a potentially slow pace of adoption and monetization. Microsoft's Azure cloud computing platform is expected to see significant growth, with nearly half of CIOs anticipating it to gain the largest share of IT budgets. The integration of OpenAI's models into Microsoft's offerings further strengthens its position in the AI market. Morgan Stanley sees Microsoft as having a high probability of positive risk/reward due to its strong positioning across AI, cloud migration, and cybersecurity.

Wall Street backs Nvidia's lead in AI hardware

Nvidia's stock saw an increase as analysts reinforced the company's leading position in the artificial intelligence (AI) sector. This momentum is partly driven by reports of a significant commitment to support OpenAI's future AI development. Nvidia also introduced its new Rubin CPX architecture, designed for advanced video generation and complex AI inference tasks, signaling its intent to lead in multimodal AI applications. While some analysts, like Citi, have adjusted price targets due to competitive pressures from companies like Broadcom, others, such as Evercore, remain confident in Nvidia's competitive advantages, including its CUDA and NVLink technologies. The stock is currently in a strong uptrend, with traders watching key resistance levels.

AI effectiveness could hurt Fiverr stock investors

The increasing effectiveness of artificial intelligence (AI) poses a potential threat to the Fiverr platform and its investors. As AI tools become more capable, they may reduce the need for certain freelance services offered on Fiverr. This could lead to decreased activity on the platform, negatively impacting its performance and stock value. Investors are advised to consider this evolving AI landscape and its potential implications for Fiverr's business model.

Nvidia offers best AI hardware risk-reward

NVIDIA Corporation (NVDA) has significantly outperformed the S&P 500, demonstrating strong performance in the AI hardware market. The company reported robust Q2 results, provided strong guidance, and is expanding its margins, even with challenges in the China market. Nvidia's Q3 revenue guidance of $54 billion, excluding China, indicates continued demand acceleration. Partnerships with Intel and OpenAI further solidify Nvidia's market leadership and positive investor sentiment. While Nvidia presents the best risk-reward opportunity in the AI space, investors should monitor capital expenditure cycles and market sentiment for future positioning.

Analysts favor Vertiv Holdings over BigBearai in AI stock comparison

Analysts are more optimistic about Vertiv Holdings (VRT) compared to BigBear.ai Holdings (BBAI) in the AI stock market. Vertiv Holdings, which provides infrastructure solutions for data centers, has seen its stock surge over 100% year-to-date due to high demand for AI infrastructure. Despite competition concerns, analysts remain bullish on Vertiv due to the large market for data center infrastructure. BigBear.ai, offering AI-powered decision intelligence, faces challenges with revenue guidance cuts but has seen recent stock gains. Analysts are cautiously optimistic about BigBear.ai's potential with government contracts, but the average price target suggests a downside risk. Vertiv Holdings holds a Strong Buy consensus rating from Wall Street.

Sources

AI chips edge devices AMD FPGAs AI inference AI PCs cars robots Alphabet quantum computing Gemini AI Google Search quantum chip Pony AI autonomous driving robotaxi China Catenai PLC Alludium Ltd autonomous AI Bitcoin Microsoft Azure OpenAI cloud computing cybersecurity Nvidia AI hardware Rubin CPX architecture multimodal AI CUDA NVLink Fiverr freelance services Vertiv Holdings BigBear.ai Holdings data center infrastructure decision intelligence government contracts