Several major developments are unfolding in the AI and tech sectors. Perplexity AI has made a bold move, offering Google $34.5 billion in cash for its Chrome browser, promising to keep the Chromium engine open source and maintain Google as the default search engine, amidst potential antitrust pressure on Google. Meanwhile, Amazon's growth in e-commerce and cloud services positions it for a potential $5 trillion market value by 2030, with AWS revenue up 17.5% and new ventures like Project Kuiper and Zoox on the horizon. Alphabet is also making significant strides in quantum computing, drawing parallels to Nvidia's dominance in AI, with its Willow processor and open-source tools like TensorFlow and Cirq. Nvidia itself is experiencing high demand for its AI chips, leading Wells Fargo to raise its stock price target to $220, and has reached an agreement with the U.S. government to resume AI chip sales in China, potentially recovering $8 billion in quarterly revenue by January 2026. SoftBank's CEO, Masayoshi Son, has reclaimed his title as Japan's richest person, driven by SoftBank's AI investments, including those in OpenAI, and plans to produce its own semiconductors through Arm Holdings. Hermitage Capital is set to invest $500 million in AI and robotics over the next three years, focusing on building an AI ecosystem across Asia, the US, and Europe. SoundHound AI's stock has seen significant movement, with Ladenburg Thalmann upgrading it to a "buy" with a $16 price target, fueled by growing deals in the car industry and a 217% increase in revenues to $42.68 million, though Cetera Investment Advisers reduced its stake by 19%. Micron Technology is also benefiting from the AI boom, with increased demand for its next-generation products like HBM. However, not all AI companies are seeing uniform success; Knightscope reported lower revenue but increased service income, with plans to launch new robots in 2026.
Key Takeaways
- Perplexity AI offered Google $34.5 billion for Chrome, aiming to keep Chromium open source.
- Amazon's market value could reach $5 trillion by 2030, driven by e-commerce, AWS (up 17.5%), and new projects.
- Alphabet is advancing in quantum computing, potentially mirroring Nvidia's AI leadership with tools like TensorFlow and Cirq.
- Nvidia's stock target increased to $220 due to high AI chip demand; deal reached to resume China sales, potentially recovering $8B quarterly.
- Masayoshi Son regains richest in Japan title as SoftBank's AI investments, including OpenAI, boost stock.
- Hermitage Capital will invest $500 million in AI and robotics over three years, focusing on Asia, the US, and Europe.
- SoundHound AI's stock upgraded to "buy" with a $16 target after revenue jumped 217% to $42.68 million.
- Micron Technology is benefiting from AI demand, driving sales of products like HBM.
- Knightscope reported lower revenue but increased service income, planning new robot launches in 2026.
- AMD also reached a deal with the US government to resume selling AI chips in China.
SoundHound AI stock soars Is it a good buy now
SoundHound AI stock jumped after a strong quarterly report. Ladenburg upgraded the stock to a buy with a $16 price target. The stock closed at $15.90, leaving little room for gains based on that target. SoundHound AI's sales are up 217% but it's still a risky investment.
Cetera Investment Advisers reduces stake in SoundHound AI
Cetera Investment Advisers decreased its investment in SoundHound AI by 19% in the first quarter. They now own 135,514 shares, worth $2,007,000. SoundHound AI reported a loss of $0.06 per share in its quarterly earnings. However, revenue was $6.77 million, exceeding expectations. Other firms like Geode Capital Management and Vanguard Group also adjusted their SoundHound AI holdings.
SoundHound AI stock jumps after rating and price upgrade
SoundHound AI's stock price increased by 17.34% after Ladenburg Thalmann upgraded its rating to "buy" with a $16 price target. The upgrade is due to SoundHound AI's growing deals in the car industry. SoundHound AI reported a smaller non-GAAP net loss but a larger GAAP net loss in the second quarter. However, revenues increased by 217% to $42.68 million.
Perplexity offers billions to buy Chrome from Google
Perplexity, an AI search engine, offered to buy Chrome from Google for $34.5 billion in cash. Perplexity promises to keep Chrome's Chromium engine open source and invest $3 billion in it. They also pledged to keep Google as the default search engine. This offer comes as the Department of Justice considers forcing Google to sell Chrome due to antitrust concerns.
Google may lose Chrome after Perplexity bid
Perplexity AI offered Google $34.5 billion for its Chrome browser. This move comes as Google awaits a decision on whether it will be forced to sell Chrome due to antitrust concerns. Analysts estimate Chrome's value at around $50 billion. Google uses Chrome to gather data for targeted ads. A forced sale of Chrome could significantly impact Google's ad revenue.
Amazon stock could reach $5 trillion by 2030
Amazon's e-commerce and cloud businesses are growing, which could lead to a $5 trillion market value by 2030. Amazon's North America sales rose 11%, and international sales jumped 16%. Amazon Web Services (AWS) revenue increased 17.5%. New projects like Project Kuiper satellite internet and Zoox robotaxis could also boost growth. However, a recession or increased competition could hinder this growth.
Alphabet could be the Nvidia of quantum computing
Alphabet is making strides in quantum computing, similar to how Nvidia led in AI. Alphabet's Willow processor solved complex problems faster than supercomputers. Alphabet also has open-source tools like TensorFlow and Cirq for AI development. Alphabet's AI ecosystem is similar to Nvidia's, potentially leading to significant growth. Alphabet's stock is currently undervalued compared to its peers.
Micron stock may rise due to AI demand
Micron Technology is benefiting from strong demand for AI, which is driving up prices and sales of its next-generation products like HBM. The company's strong position in the market helps it increase profits. While the semiconductor industry can be unpredictable, Micron's stock is attractive compared to its competitors. The increasing demand for AI suggests that Micron has potential for further growth.
These AI stocks are quietly beating the market
Despite market volatility, some AI stocks are performing well. Nvidia's GPUs are crucial for AI models, driving its stock's growth. Alphabet, Google's parent company, integrates AI across its products, boosting its stock. Microsoft's partnership with OpenAI and AI integration into its products are also fueling growth. These companies demonstrate that strong AI foundations can lead to success.
Knightscope faces challenges in AI security sector
Knightscope, an AI security company, reported lower revenue but increased service income in 2024. Net losses also increased due to research and development investments. The company plans to launch new robots in 2026 and expand its Sunnyvale facility. Knightscope aims to capitalize on federal security opportunities but faces risks like a small backlog and competition from larger companies.
Nvidia stock target raised on AI chip demand
Wells Fargo analyst Aaron Rakers raised the price target for Nvidia stock to $220 due to strong AI chip demand. Nvidia and AMD reached a deal with the US government to resume selling AI chips in China. Nvidia will give the government 15% of the revenue from those sales. This arrangement could help Nvidia recover $8 billion in quarterly revenue by January 2026.
AI boom makes SoftBank's Son richest in Japan again
Masayoshi Son, SoftBank's CEO, is again Japan's richest person as SoftBank's stock rose due to AI investments. His net worth is $50.5 billion, surpassing Tadashi Yanai. SoftBank's investments in AI companies like OpenAI are driving investor interest. SoftBank sold its Nvidia stake and invested in Oracle and Taiwan Semiconductor Manufacturing Company. SoftBank also plans to make its own semiconductors through Arm Holdings.
Chinese fund Hermitage Capital invests big in AI
Hermitage Capital plans to invest $500 million in AI and robotics over the next three years. Founder Sean Xiang Yuqiu believes AI will shape the future, similar to the internet in 1995. The fund focuses on building an AI ecosystem, from hardware to robotics. Hermitage has invested in 33 companies, with a focus on Asia, the US, and Europe.
Sources
- SoundHound AI Skyrocketed Today -- Is the Stock a Buy Right Now? @themotleyfool #stocks $SOUN
- Cetera Investment Advisers Lowers Stake in SoundHound AI, Inc. (NASDAQ:SOUN)
- SoundHound AI (SOUN) Surges 17.34% on Rating, Price Upgrade
- Perplexity offers to buy Chrome for billions more than it’s raised
- Google faces loss of Chrome as Perplexity bid adds drama to looming breakup decision
- Prediction: This Artificial Intelligence (AI) Stock Could Hit a $5 Trillion Valuation by 2030 @themotleyfool #stocks $AMZN $NVDA
- This Artificial Intelligence (AI) Stock Could Be the Nvidia of Quantum Computing
- Micron’s New Guidance: Why This AI-Driven Rally May Still Have Room To Run (NASDAQ:MU)
- 3 Artificial Intelligence (AI) Stocks That Are Quietly Beating the Market
- Knightscope: Navigating Turbulence in the AI Security Sector
- NVIDIA (NVDA) Gets $220 Target on Strong AI Chip Demand, China Deal
- AI Boom Makes SoftBank’s Masayoshi Son Richest Person In Japan Again
- Chinese PE fund bets big on AI as it sees tech shaping the future