September 11, 2025

finance  
Google Cloud, Microsoft AI, Meta Platforms Growth

The artificial intelligence sector continues to see significant investment and growth, with key players like TSMC, Alphabet, and Microsoft positioned as top long-term stock picks. TSMC manufactures the advanced AI chips powering this expansion, reporting substantial revenue growth. Alphabet's Google Cloud provides a platform for its AI models and serves other major companies, including Meta Platforms. Microsoft integrates AI across its enterprise software via its Azure cloud and partnership with OpenAI, making it essential for businesses. Apple, while a later entrant, is leveraging its vast user base for future AI integration. Oracle is experiencing an AI-driven surge in cloud contracts, with its remaining performance obligation (RPO) jumping 359% to $455 billion, potentially propelling it towards a $1 trillion market cap within the next year. This growth is also reflected in the market, with major banks raising S&P 500 targets due to AI strength. Broadcom is also making strides with custom AI chips, signaling a move beyond reliance on Nvidia GPUs, a trend echoed by Alphabet, Amazon, and Microsoft's own chip development. In the startup space, Motion has raised $38 million for its integrated AI agents, aiming to automate business processes for SMBs and already achieving over $10 million in annual recurring revenue. Conversely, C3.ai faces a class action lawsuit over alleged misleading statements regarding its financial health and growth prospects, with its stock dropping after a disappointing earnings report and lowered guidance. The interconnectedness of AI is also evident in the record high reached by the CoinShares Bitcoin Mining ETF, influenced by AI stock rallies and deals involving Microsoft. GitLab, despite a stock dip following its earnings report and CFO departure, continues to develop its AI-integrated DevSecOps platform, with analysts maintaining a positive outlook.

Key Takeaways

  • TSMC, Alphabet, and Microsoft are identified as top long-term AI stock investments, with TSMC crucial for AI chip manufacturing and Alphabet's Google Cloud and Microsoft's Azure cloud supporting AI development and integration.
  • Apple is also considered a strong AI stock pick due to its large user base and brand trust, positioning it for future AI integration.
  • Oracle's AI-driven cloud contracts have led to a 359% increase in its remaining performance obligation (RPO) to $455 billion, with analysts predicting it could reach a $1 trillion market cap within a year.
  • Major banks like Deutsche Bank, Wells Fargo, and Barclays have raised their S&P 500 year-end price targets, citing the strong performance of AI stocks and moderating inflation.
  • Broadcom is seeing significant demand for its custom AI chips, with a $10 billion order from a hyperscale customer, indicating a shift away from sole reliance on Nvidia GPUs.
  • AI startup Motion raised $38 million in Series C funding to develop integrated AI agents for automating business processes, having already secured over 10,000 business customers and $10 million in annual recurring revenue.
  • C3.ai is facing a class action lawsuit alleging misleading statements about its financial health and growth prospects, following a stock drop after a disappointing earnings report and lowered revenue guidance.
  • The CoinShares Bitcoin Mining ETF (WGMI) reached a record high, influenced by the rally in AI stocks and deals such as a GPU supply agreement between Nebius Group and Microsoft.
  • GitLab's stock has declined despite beating earnings expectations, impacted by CFO departure and softer guidance, though its AI-integrated DevSecOps platform continues to be developed.
  • Larry Ellison has become the world's richest person, surpassing Elon Musk, largely due to the surge in Oracle's stock driven by AI-related cloud contracts.

AI chipmaker TSMC and Apple are top AI stock picks

Taiwan Semiconductor Manufacturing (TSMC) and Apple are highlighted as strong long-term investments in the growing artificial intelligence (AI) market. TSMC, a key chip manufacturer for AI, has seen significant revenue growth and expects AI chip revenue to double. Apple, despite a slower start in AI, benefits from its vast user base and strong brand trust, positioning it well for future AI integration. Both companies are seen as solid choices for investors looking to capitalize on the AI boom.

Top 3 AI Stocks for Long-Term Investors: TSMC, Alphabet, Microsoft

Investors looking to invest $3,000 in artificial intelligence (AI) should consider Taiwan Semiconductor Manufacturing (TSMC), Alphabet, and Microsoft for long-term growth. TSMC is crucial for producing advanced AI chips, with its high-performance computing segment driving significant revenue. Alphabet's Google Cloud platform supports its own AI models and is used by other major companies like Meta Platforms. Microsoft's Azure cloud and partnership with OpenAI allow it to integrate AI across its widely used enterprise software, making it a staple for businesses.

Invest $3,000 in AI: TSMC, Alphabet, and Microsoft are top picks

For investors with $3,000, three artificial intelligence (AI) stocks stand out for long-term holding: Taiwan Semiconductor Manufacturing (TSMC), Alphabet, and Microsoft. TSMC is essential as it manufactures most advanced AI chips, with its high-performance computing segment being a major revenue driver. Alphabet's Google Cloud provides a robust platform for its AI models and serves other tech giants like Meta Platforms. Microsoft leverages its Azure cloud and partnership with OpenAI to integrate AI into its dominant enterprise software, making it a vital tool for businesses.

AI Stocks to Buy: TSMC, Alphabet, and Microsoft for Long-Term Growth

Investors with $3,000 can consider Taiwan Semiconductor Manufacturing (TSMC), Alphabet, and Microsoft for long-term investment in artificial intelligence (AI). TSMC is vital as it produces nearly all advanced AI chips, with its high-performance computing segment contributing significantly to revenue. Alphabet's Google Cloud offers a powerful platform for its AI models and serves major companies like Meta Platforms. Microsoft integrates AI across its essential enterprise software through its Azure cloud and partnership with OpenAI, making it indispensable for businesses.

Oracle's AI surge could push it into the $1 Trillion Club soon

Oracle's stock surged after reporting strong quarterly results, driven by massive AI-driven cloud contracts. Despite missing some analyst expectations, the company's remaining performance obligation (RPO) jumped 359% to $455 billion, signaling huge future growth. Oracle's extensive cloud, database, and enterprise software are used by 98% of Fortune 500 companies, positioning it well to benefit from AI adoption. Analysts predict Oracle could reach a $1 trillion market cap within the next year due to this explosive growth.

Oracle's AI Cloud Growth Poised for $1 Trillion Market Cap

Oracle's stock surged following its fiscal 2026 first-quarter results, driven by significant AI-related cloud contracts. The company's remaining performance obligation (RPO) increased by 359% to $455 billion, indicating substantial future revenue. With 98% of Fortune 500 companies using its cloud, database, and enterprise software, Oracle is well-positioned to capitalize on the AI boom. Analysts now anticipate Oracle could achieve a $1 trillion market capitalization much sooner than expected, potentially within the next year.

C3.ai Faces Class Action Lawsuit Over Alleged Misleading Statements

Enterprise AI software company C3.ai and its executives are facing a class action lawsuit alleging they misled investors about the company's financial health and growth prospects. The suit claims that C3.ai's public statements were overly optimistic and did not fully disclose the impact of CEO Thomas M. Siebel's health issues. The stock dropped over 25% after the company announced disappointing first-quarter results and lowered its full-year revenue guidance on August 8, 2025. Investors who suffered losses during the class period (Feb. 26, 2025 - Aug. 8, 2025) have until October 21, 2025, to file as lead plaintiffs.

Bitcoin Mining ETF Hits Record High Amid AI Stock Rally

The CoinShares Bitcoin Mining ETF (WGMI) reached a record high of $33.13, marking a 44% year-to-date increase. This surge is fueled by strong performances from its top holdings, IREN and Cipher Mining, and the broader rally in artificial intelligence (AI) stocks. Oracle's significant AI-driven cloud growth forecast and a large GPU supply deal between Nebius Group and Microsoft also contributed to the positive market sentiment. The ETF's success highlights the interconnectedness of AI advancements and the cryptocurrency mining sector.

AI Startup Motion Raises $38 Million for Integrated AI Agents

AI startup Motion has successfully raised $38 million in a Series C funding round led by Scale Venture Partners. The company aims to build an integrated suite of AI agents, described as the 'Microsoft Office of AI agents,' to automate business processes for small and medium-sized businesses. Since launching its AI agents in May, Motion has acquired over 10,000 business customers and achieved more than $10 million in annual recurring revenue. The new funding will support research and development, marketing, and strategic partnerships to expand its agentic work suite.

Broadcom's Custom AI Chips Signal a Shift Beyond Nvidia GPUs

Broadcom's recent earnings report revealed a $10 billion order for custom AI chips (XPUs) from a major hyperscale customer, signaling a significant shift in the AI computing landscape. This move suggests a move away from relying solely on Nvidia's GPUs towards specialized accelerators tailored for specific AI workloads. Companies like Alphabet, Amazon, and Microsoft are also investing heavily in their own custom AI chips. This transition is expected to create new market opportunities for companies involved in custom silicon design, foundries like TSMC, and advanced packaging.

Larry Ellison Becomes World's Richest Person, Surpassing Elon Musk

Larry Ellison, co-founder of Oracle, has become the world's richest person, with his net worth reaching $393 billion. This rise is attributed to Oracle's stock surge, fueled by significant AI-driven cloud contracts and a backlog exceeding $450 billion. Ellison's wealth increase also benefits from his family's recent $8 billion takeover of Paramount Global. The news highlights the substantial financial gains being made in the artificial intelligence sector, with Oracle playing a key role.

Major Banks Raise S&P 500 Targets on AI Strength and Lower Tariff Impact

Wells Fargo, Deutsche Bank, and Barclays have increased their year-end price targets for the S&P 500, citing the strong performance of artificial intelligence (AI) stocks and reduced concerns over tariff impacts. Deutsche Bank raised its target to 7,000, Wells Fargo to 6,650, and Barclays to 6,450. The optimism is driven by continued AI capital expenditures and moderating inflation, which could allow the Federal Reserve to cut interest rates. Oracle's impressive cloud growth forecast also boosted market sentiment.

GitLab Stock Dip: Opportunity in AI-Integrated DevSecOps?

GitLab's stock has experienced a decline following its latest earnings report, despite beating expectations and raising its full-year adjusted EPS forecast. The departure of its CFO and softer forward revenue guidance have impacted investor confidence. However, the company continues to advance its AI-integrated DevSecOps platform, GitLab Duo Agent Platform, aimed at boosting developer productivity. Analysts maintain a moderately bullish outlook, with a consensus 'Buy' rating and an average price target suggesting potential upside, indicating the dip might be a buying opportunity.

Sources

AI Stocks TSMC Apple Alphabet Microsoft Oracle C3.ai Bitcoin Mining ETF Motion AI Broadcom Nvidia GPUs Custom AI Chips Larry Ellison S&P 500 GitLab DevSecOps AI Agents Cloud Contracts Enterprise Software Chip Manufacturing Artificial Intelligence Investment Market Cap Funding Rounds Class Action Lawsuit