Several companies are making significant strides and investments in the AI sector. C3.ai expanded its Air Force contract to $450 million and renewed its joint venture with Baker Hughes. Veeva Systems reported strong earnings and plans to launch the Veeva AI platform in December 2025. Dell saw revenue growth driven by high demand for AI servers, generating $12.1 billion in AI orders. IBM has created a $500 million investment fund for AI development. Nvidia is considered a leader in the AI revolution, benefiting from the growth in AI token generation, with Microsoft processing over 100 trillion tokens in Q1. Oracle's stock has risen due to high demand for its AI cloud infrastructure, projecting revenue increases of 15% in fiscal 2026 and 20% in fiscal 2027. SoundHound AI's stock decreased despite better-than-expected earnings and increased revenue. Morgan Stanley's CIO does not believe there is an AI bubble. Wedbush Securities analyst Dan Ives also discussed Nvidia's competition with Huawei and the US trade war with China.
Key Takeaways
- C3.ai's contract with the U.S. Air Force expanded to $450 million.
- Veeva Systems plans to launch its Veeva AI platform in December 2025.
- Dell's revenue increased due to high demand for AI servers, with $12.1 billion in AI orders.
- IBM has created a $500 million investment fund for AI.
- Nvidia is considered a leader in the AI revolution.
- Microsoft processed over 100 trillion tokens in Q1, benefiting Nvidia.
- Oracle's stock has risen due to high demand for its AI cloud infrastructure.
- Oracle forecasts revenue increases of 15% in fiscal 2026 and 20% in fiscal 2027.
- SoundHound AI's stock decreased despite a better-than-expected earnings report.
- Morgan Stanley CIO does not believe there is an AI bubble.
C3.ai expands Air Force contract to $450 million
C3 AI has expanded its contract with the U.S. Air Force, increasing the ceiling to $450 million through October 2029. The company also renewed its joint venture with Baker Hughes to work on AI solutions for energy and industrial sectors. The Air Force is using C3 AI's predictive maintenance platform, showing the company is a trusted partner. C3.ai's partnerships help it reach more markets, but the company still faces challenges in becoming profitable.
Veeva Systems' AI plans boost investment outlook after earnings beat
Veeva Systems reported strong first-quarter earnings, with revenue up to $759.04 million and net income at $228.19 million. The company expects continued growth, with revenue guidance of $766 million to $769 million for the second quarter. Veeva is launching the Veeva AI platform in December 2025 to automate tasks for life sciences clients. Customer adoption of this platform could significantly increase software use and revenue growth. Veeva faces competition in healthcare technology as it expands its AI offerings.
Dell stock rises on high demand for AI servers
Dell's revenue grew by 5% to $23.38 billion in the first quarter, exceeding expectations due to strong AI server sales. Server and networking revenue increased by 16% to $6.3 billion, driven by high demand for AI-optimized servers. Dell generated $12.1 billion in AI orders during the quarter. The company maintained its fiscal 2026 revenue forecast of $101 billion to $105 billion. Morgan Stanley analysts believe Dell's AI segment is gaining momentum and could see nearly $20 billion in AI server revenue this year.
IBM's $500 million AI investment fund revealed
IBM has created a $500 million investment fund for AI. The fund will be used to support the development and growth of AI technology.
Analyst discusses Nvidia's AI leadership, trade war, and China competition
Dan Ives from Wedbush Securities says Nvidia is leading the AI revolution. He also discusses the US trade war with China. Nvidia is competing with Huawei.
SoundHound AI stock drops 3% after analyst reports
SoundHound AI's stock price decreased by 3% to $10.22 on Friday. The stock's trading volume was lower than average, with 10,291,500 shares traded. Analysts have recently updated their ratings and price targets for SoundHound AI. The company reported a loss of $0.06 earnings per share for the last quarter, which was better than expected. SoundHound AI's revenue increased by 151.2% compared to last year. Insiders have recently sold shares of the company's stock.
Nvidia's key to success AI token growth
Nvidia's revenue reached $44.1 billion last quarter. A key measure of AI activity is token generation. Microsoft processed over 100 trillion tokens in Q1, a fivefold increase. Tokens are the base unit to measure AI inputs and outputs. Nvidia benefits from token growth due to its market share.
Oracle's AI cloud stock could surge in June analysts predict
Oracle stock has risen nearly 35% since April 21. The company's fiscal 2025 fourth-quarter results are expected in mid-June. Oracle's cloud infrastructure is in high demand for AI training and use. Oracle claims its cloud is faster and cheaper than competitors. Oracle is a key partner in the Stargate project with OpenAI and SoftBank. Oracle forecasts revenue will increase by 15% in fiscal 2026 and 20% in fiscal 2027.
Morgan Stanley CIO discusses the AI stock market
Morgan Stanley CIO Mike Wilson says he does not believe there is an AI bubble. He shared his thoughts on AI stocks on Bloomberg Open Interest.
CoreWeave challenges Amazon and Google in AI cloud market
Information in Investor’s Business Daily is for informational and educational purposes only and should not be construed as an offer, recommendation, solicitation, or rating to buy or sell securities. The information has been obtained from sources we believe to be reliable, but we make no guarantee as to its accuracy, timeliness, or suitability, including with respect to information that appears in closed captioning. Historical investment performances are no indication or guarantee of future success or performance. Authors/presenters may own the stocks they discuss. We make no representations or warranties regarding the advisability of investing in any particular securities or utilizing any specific investment strategies. Information is subject to change without notice.
Sources
- C3.ai's (AI) Air Force Contract Expansion Is Re-Shaping The Investment Case
- Veeva Systems (VEEV) Earnings Beat And AI Ambitions Shift The Investment Case
- Dell Stock Climbs as 'Unprecedented Demand' for AI Servers Powers Revenue Growth
- Inside IBM's $500 Million AI Investment Fund
- Ives on Nvidia Earnings, AI, Trade War, China
- SoundHound AI (NASDAQ:SOUN) Trading Down 3%
- Nvidia's most important number doesn't have a dollar sign in front of it: Token growth
- Prediction: This Top Artificial Intelligence (AI) Cloud Stock Will Skyrocket in June
- Morgan Stanley CIO Mike Wilson Weighs In on the AI Trade
- Nvidia Partner CoreWeave Set To Hack Into Amazon, Google Kingdoms; Investors Pour In As Stock Rockets 227%