Flex Q2 Revenue Surges 54% to $2.5B, Palantir Raises 2026 Guidance

Key Takeaways

• <ul><li>Flex's Cloud and Power Infrastructure segment revenue grew 54% year over year to $2.5 billion, with the company raising its fiscal 2027 CPI growth outlook to 75-85%.</li><li>Monolithic Power Systems' enterprise data revenue jumped 164.6% to $506.7 million, and the company raised its 2026 Enterprise Data growth forecast to 150%.</li><li>Palantir raised 2026 revenue guidance to $8.530-$8.534 billion, reflecting about 91% year-over-year growth driven by sovereign AI demand.</li><li>SpaceX expects compute capacity to reach 2.5-3 GW by end of 2026 and at least 13 GW by end of 2027, with Q3 capital spending of $19.6 billion.</li><li>AI stocks lost roughly $5 trillion in market value since October 6 as hedge funds turned underweight AI for the first time since early 2023.</li><li>Meta filed for five series of senior unsecured notes to fund AI strategy, with data centers in 23 states and four superclusters over one GW each.</li><li>Anthropic's updated spending figures could reshape the AI trade following tepid demand signals from OpenAI.</li><li>Osaic partnered with Nitrogen to give nearly 10,000 advisors access to an agentic AI engine called Nucleus.</li><li>Upwork launched Upwork Now, embedding its marketplace inside AI tools, with AI-skilled talent revenue up 55% year over year to $112 million.</li><li>Space Systems Command is evaluating eight AI projects for funding, including TEMPO and REscan Spatial SI, with winners announced November 13.</li></ul>

Flex CPI sales jump 54% on AI infrastructure demand

Flex reported strong growth in its Cloud and Power Infrastructure segment, with revenues rising 54% year over year to $2.5 billion. The segment's adjusted operating margin expanded 240 basis points to 10.7%. Power was a key driver, with margins climbing nearly 550 basis points to about 16%. Flex acquired EPC Power and launched prefabricated AI Modules to speed up AI factory builds. The company raised its fiscal 2027 CPI revenue growth outlook to 75-85%.

Flex CPI sales surge 54% on AI demand

Flex Ltd. saw its Cloud and Power Infrastructure segment revenue climb 54% year over year in the second quarter of fiscal 2027. CPI revenues reached $2.5 billion, with adjusted operating income of $268 million. The power business grew especially fast, with margins rising about 550 basis points to nearly 16%. Flex is investing in AI infrastructure through the EPC Power acquisition and new prefabricated AI Modules. Management now expects CPI revenue growth of 75-85% for fiscal 2027.

MPWR enterprise data revenue soars 164.6% on AI power demand

Monolithic Power Systems reported a 164.6% year-over-year jump in third-quarter Enterprise Data revenues to $506.7 million. That segment now makes up 42.1% of total revenues, which rose 63.1% year over year to $1.20 billion. Non-GAAP operating margin expanded 320 basis points to 38.6%. Management raised its 2026 Enterprise Data revenue growth forecast to 150%. The company is also working with GlobalFoundries on advanced chip production starting in early 2027.

SpaceX plans major AI compute expansion through 2027

SpaceX expects compute capacity to reach 2.5 to 3 gigawatts by year-end 2026 and at least 13 GW by end of 2027. Third-quarter capital spending hit $19.6 billion, mostly on compute infrastructure. Starlink consumer subscribers reached 13.6 million, with connectivity revenues up 69% year over year to $5.2 billion. The company also reported $7.6 billion in SI revenues, including $608 million from the Cursor acquisition. First-quarter 2027 revenues are projected at $33 billion to $37 billion.

Palantir raises 2026 outlook on strong AI demand

Palantir raised its 2026 revenue guidance to $8.530-$8.534 billion, representing 91% year-over-year growth. Third-quarter revenues of $2.31 billion grew about 96% year over year and beat estimates. U.S. commercial revenue is forecast to exceed $3.55 billion, growing at least 143%. Sovereign AI demand is driving enterprise adoption, with customers moving quickly from pilots to production. U.S. government revenues reached $953 million, up 96% year over year.

AI stocks shed $5 trillion as hedge funds turn cautious

AI stocks lost about $5 trillion in market value since October 6. Hedge funds sold AI holdings faster than they opened short positions. NVIDIA, Alphabet, and TSMC were among the biggest losers. Household stock wealth hit a record 48% of financial assets. NVIDIA reported strong revenue but the sell-off may continue.

Morgan Stanley sees major shift in AI stock positioning

Morgan Stanley says hedge funds turned underweight AI for the first time since early 2023. Gross hedge fund flows fell 8% from their June peak. Leverage dropped to 207% as funds shrank their books. Buying recently went mostly into indexes and ETFs. Light positioning could fuel a rebound if earnings stabilize.

Anthropic spending figures may reshape the AI trade

Anthropic released updated figures that could crack the AI trade in two ways. The company's spending plans are the main focus rather than its revenue and earnings. This comes after OpenAI showed tepid demand. The new numbers could make or break the current AI boom.

New AI-FAIR framework improves science data infrastructure

Researchers proposed AI-FAIR metadata criteria to improve AI use in ecology and biodiversity science. The framework builds on FAIR principles with a bidirectional Question-Data-Model triangle. It includes an agentic evaluation workflow that rates datasets on AI-FAIR and traditional FAIR criteria. The goal is to close the loop so AI enriches data and helps scientific discovery.

China-US AI investment gap smaller than reported

A Chinese think tank says the China-US AI investment gap is narrower than headline figures suggest. China will spend about one-eighth as much as the United States on AI capital expenditure this year. The report comes as AI becomes a focal point of competition between Beijing and Washington. Investment levels and computing power are under greater scrutiny.

5 undervalued AI stocks to consider buying now

An article highlights five AI stocks that may be undervalued despite strong performance. NVIDIA has a price-to-earnings ratio of 25.4, Alphabet 23.4, Microsoft 20.4, Amazon 18.4, and IBM 15.4. These ratios are lower compared to their peers in the AI market. The author notes that investors should still research and consult a financial advisor before making decisions.

Osaic partners with Nitrogen to offer AI tools to advisors

Osaic has partnered with Nitrogen to give nearly 10,000 advisors access to six products including Risk Center and Income Center. The suite features Nucleus, an agentic AI engine that helps advisors turn client data into portfolios and insights. Nitrogen is the first wealthtech company to earn ISO/IEC 42001 certification for responsible AI management. The deal aims to reduce manual work and help advisors spend more time with clients.

Meta proposes five-series senior notes for AI funding

Meta filed a prospectus on November 3, 2026 for five series of U.S. dollar senior unsecured notes to help fund its AI strategy. The company owns data centers in 23 U.S. states and is building four superclusters with over one gigawatt of capacity each. Meta's long-term debt stands at $454.52 billion, with $45.85 billion due in 2026 and $121.41 billion due in 2027. The company also raised about $14.369 billion through equity offerings in October and November 2026.

Space Force considers eight AI projects for funding

Space Systems Command is evaluating eight AI projects for potential funding to support mission planning and satellite communications. The finalists presented proposals on October 7, including TEMPO for launch-range scheduling at Vandenberg Space Force Base and REscan Spatial SI for organizing facility information. The judging panel included Lt. Gen. Philip Garrant and Lt. Gen. Gregory Gagnon. Winners will be announced on November 13 at the Air and Space Forces Association Space Force Ball in Los Angeles.

Upwork embeds freelance marketplace inside AI tools

Upwork launched a feature called Upwork Now that connects AI agents and clients with freelancers ready to start work immediately. The company reported a 55% year-over-year increase in AI-skilled talent revenue to $112 million in the third quarter. Upwork also acquired WorkMotion to expand its employment offerings in global markets. The company's GSV per active client rose 8% to $5,418 while total GSV declined 10% to $914.1 million.

Sources

• Flex's CPI Sales Surge 54%: Can AI Infrastructure Sustain Gains?
• Flex's CPI Sales Surge 54%: Can AI Infrastructure Sustain Gains?
• MPWR's AI Power Boom Accelerates as Enterprise Data Sales Surge 164.6%
• SpaceX Q3 Earnings Call Highlights Aggressive AI Compute Expansion
• Palantir Q3 Earnings Call Highlights Sovereign AI Demand and Outlook
• AI Stocks Lose $5 Trillion in 3 Weeks as Hedge Funds Go Underweight AI for the First Time Since 2023
• Morgan Stanley Flags Major Turn in the AI Trade
• Anthropic’s shocking new spending figures could crack the AI trade in two ways, particularly after OpenAI’s tepid demand
• From FAIR to AI-FAIR Metadata-First Infrastructure for AI-Enabled Science
• China-US AI investment gap narrower than figures suggest: report
• 5 Undervalued AI Stocks to Buy Now in November (2026)
• Osaic Partners with Nitrogen to bring its Full Product Suite and AI Capabilities to Nearly 10,000 Advisors
• Meta Proposes Five-Series Senior Notes Offering in AI Financing Push
• Space Force Weighs 8 AI Projects for Fight Tonight Funding
• Upwork Embeds Freelance Marketplace Inside Top AI Tools