October 7, 2025

finance  
Anthropic Secures 29% AI Funding, Nvidia GPU Demand Soars

Global venture funding saw a significant 38% increase in Q3 2025, reaching $97 billion, with artificial intelligence companies attracting 46% of this investment. Major AI players like Anthropic, which alone secured 29% of the total funding, alongside others like xAI and Mistral AI, drove this surge. The U.S. continues to lead in venture capital investment. In the tech sector, Oracle is nearing a $1 trillion market capitalization, bolstered by its cloud infrastructure and AI performance, evidenced by a 359% rise in remaining performance obligations. Companies like Nvidia are central to the AI boom, with its GPUs in high demand for AI workloads, positioning it as a more stable investment compared to emerging players like CoreWeave, which, despite significant deals with Meta Platforms and OpenAI, is not yet profitable. The Invesco QQQ Trust, tracking the Nasdaq 100, offers investors exposure to AI leaders such as Nvidia, Microsoft, and Apple, having delivered substantial returns. A new partnership between AMD and OpenAI, involving OpenAI deploying six gigawatts of AMD's AI infrastructure and taking a 10% stake, is seen by some analysts as a major AI development, though others have downgraded AMD due to concerns about margins and competition from Nvidia and Broadcom. Beyond direct AI companies, the AI boom is also indirectly benefiting sectors like utility stocks, with NextEra Energy showing positive technical signals, and companies like Ouster, which provides lidar sensors for AI applications. Meanwhile, some European media stocks are considered undervalued by UBS, with analysts believing fears of AI disruption are overstated for companies like Informa and RELX.

Key Takeaways

  • Global venture funding reached $97 billion in Q3 2025, a 38% increase year-over-year, with AI companies attracting 46% of the total investment.
  • Anthropic secured a significant portion of AI funding, accounting for 29% of the total investment in the sector.
  • Oracle is approaching a $1 trillion market cap, driven by its cloud infrastructure and AI growth, with remaining performance obligations up 359% to $455 billion in fiscal Q1 2026.
  • Nvidia is seen as a more stable AI investment than CoreWeave, which, despite deals with Meta Platforms and OpenAI, is not yet profitable.
  • The Invesco QQQ Trust, an ETF tracking the Nasdaq 100, offers exposure to AI leaders like Nvidia, Microsoft, and Apple, and has delivered a 536% total return over the past decade.
  • A partnership between AMD and OpenAI involves OpenAI deploying six gigawatts of AMD's AI infrastructure and taking a 10% stake, though some analysts view AMD's position cautiously due to margin concerns and competition.
  • AI stocks collectively rose 15.7% in Q3 2025, outperforming the broader market, with infrastructure providers like Corning, Teradyne, and Arista Networks among top performers.
  • Utility stocks, such as NextEra Energy, are indirectly benefiting from the AI boom, showing positive technical signals for growth.
  • Ouster, a lidar sensor company for AI applications, is experiencing positive stock momentum driven by its position in the AI market.
  • UBS suggests European media stocks like Informa and RELX are undervalued, with AI disruption risks being overstated for their business models.

Q3 2025 Venture Funding Soars 38% Driven by AI Giants

Global venture funding jumped 38% in Q3 2025, reaching $97 billion, up from $70 billion in Q3 2024. This growth was largely fueled by massive funding rounds for AI companies, which attracted 46% of all venture capital. Hardware and healthcare/biotech sectors also saw significant investment. The U.S. led global venture capital, receiving nearly two-thirds of the total. Late-stage funding increased by over 66% year-over-year, while early-stage and seed funding also saw modest gains. Exit activity, including IPOs and M&A, showed strong performance compared to the previous year.

AI Companies Attract Majority of Venture Funding in Q3 2025

Venture funding for AI companies surged in the third quarter of 2025, with the sector attracting 46% of the total global investment. Overall venture funding increased by 38% year-over-year to $97 billion. Major AI players like Anthropic, xAI, and Mistral AI secured billions in funding. U.S. companies received the largest share of global venture capital. Hardware was the second-largest funded sector, followed by healthcare and biotech.

AI Fuels 38% Surge in Global Venture Capital to $97 Billion in Q3 2025

Global venture capital funding experienced a significant 38% year-over-year increase in Q3 2025, reaching $97 billion. This growth was primarily driven by artificial intelligence companies, which secured 46% of the total funding, with Anthropic alone receiving 29%. Hardware and healthcare/biotech were the next largest funded sectors. The quarter also saw a rise in exit activity, with venture-backed IPOs and M&A deals showing strong performance.

Oracle Poised to Be Next $1 Trillion AI Company

Oracle is nearing a $1 trillion market capitalization, driven by its strong performance in cloud infrastructure and AI. The company's remaining performance obligations (RPOs) surged 359% to $455 billion in fiscal Q1 2026, leading to a significant stock increase. While Oracle's cloud segment is growing rapidly, its overall revenue growth is moderate, and it carries substantial debt. Despite these concerns, analysts predict continued growth, positioning Oracle as a likely candidate for the next trillion-dollar AI company.

Invesco QQQ Trust: The Smartest AI ETF for $2,000 Investment

The Invesco QQQ Trust (QQQ) is highlighted as a smart ETF choice for investors seeking exposure to the AI boom. This ETF tracks the Nasdaq 100 index, featuring 100 of the largest non-financial companies, including major AI players like Nvidia, Microsoft, and Apple. The QQQ has delivered exceptional returns over the past decade, with a 536% total return. While it offers diversification and exposure to leading tech companies, investors should be aware of potential risks if AI progress stalls.

CoreWeave vs. Nvidia: Which AI Investment is Better?

CoreWeave, an AI-first cloud computing company, is rapidly expanding with major deals from Meta Platforms and OpenAI, generating $1.2 billion in revenue in its recent quarter. However, CoreWeave is not profitable, raising concerns about its long-term sustainability as clients like Meta and OpenAI build their own capacity. Nvidia, on the other hand, benefits from the continuous need to replace GPUs used in AI workloads, ensuring a more stable revenue stream. Despite CoreWeave's growth, Nvidia appears to be the more secure investment due to its profitability and recurring hardware demand.

AI Stocks Shine in Q3 2025: Top Performers and Laggards Revealed

Artificial intelligence stocks saw significant gains in Q3 2025, with a basket of 38 AI stocks rising 15.7%, outperforming the broader market. Top performers included Corning, Teradyne, and Arista Networks, benefiting from AI data center infrastructure buildouts. Alphabet also saw a strong rally following a favorable antitrust ruling. However, some software stocks like Salesforce, ServiceNow, and Adobe experienced declines due to generative AI competition and market shifts. The AI basket now trades at a premium to its fair value.

European Media Stocks Offer Value Amid AI Fears, Says UBS

UBS Global Research suggests that several European media stocks are undervalued due to excessive market fears about AI disruption. Companies like Omnicom and Publicis have seen significant price drops, which analysts believe overstate the actual risks to their business models. Informa and RELX are highlighted as offering value with minimal structural risk from AI, due to their resilient business models in areas like data and scientific content.

AMD and OpenAI Partnership Heralds Major AI Revolution Moment

Wedbush analysts describe the new partnership between Advanced Micro Devices (AMD) and OpenAI as a 'major moment in the AI revolution.' The deal involves OpenAI deploying six gigawatts of AMD's AI infrastructure and includes a 10% stake in the company. This collaboration positions AMD as a key player in AI chip development and strengthens its integration within the AI ecosystem, signaling a broad expansion of AI spending globally.

Analyst Downgrades AMD to Strong Sell After OpenAI Deal

Despite a 30% surge following the announcement of a partnership with OpenAI, an analyst has downgraded Advanced Micro Devices (AMD) to a 'Strong Sell' with a $140 price target. The analyst argues that AMD's profit margins and innovation still lag behind competitors like Nvidia and Broadcom. The OpenAI deal is considered non-exclusive and potentially dilutive to AMD's margins, while the company's valuation remains high compared to peers. The current rally is seen as an opportunity to sell the stock.

AI Boom Boosts Utility Stocks Like NextEra Energy

Utility stocks are indirectly benefiting from the AI boom, with NextEra Energy (NEE) showing strong technical signals for a breakout. NEE is breaking out of a multi-year triangle pattern, supported by positive momentum indicators and ample room for growth. The stock has cleared key resistance levels, suggesting a potential rise towards its previous highs. With a low beta and correlation to the broader market, NEE is positioned to outperform, making it an attractive investment amid the current market trends.

Ouster Stock Climbs on AI Momentum

Ouster (OUST), a company specializing in lidar sensors and software for AI applications, is showing positive momentum. The stock is recovering from a late September sell-off and is climbing from an early-stage consolidation pattern. Ouster's recovery is driven by its position in the growing AI market, indicating potential for further gains as the company continues to develop its high-performance lidar technology.

Sources

AI Venture Capital Venture Funding Q3 2025 AI Companies Funding Rounds Hardware Healthcare Biotech U.S. Venture Capital Late-Stage Funding Early-Stage Funding Seed Funding Exit Activity IPOs M&A Anthropic xAI Mistral AI Oracle Cloud Infrastructure Market Capitalization Invesco QQQ Trust QQQ ETF Nasdaq 100 Nvidia Microsoft Apple CoreWeave OpenAI Meta Platforms GPU AI Stocks Corning Teradyne Arista Networks Alphabet Antitrust Ruling Salesforce ServiceNow Adobe Generative AI European Media Stocks UBS Omnicom Publicis Informa RELX AMD AI Chip Development AI Infrastructure Broadcom Utility Stocks NextEra Energy Ouster Lidar Sensors AI Momentum