September 27, 2025

finance  
google, microsoft and nvidia Updates

The artificial intelligence sector continues to see significant investment and development, with major tech players like Google and Microsoft solidifying their positions. Google's parent company, Alphabet, is experiencing rapid growth in its Google Cloud division, fueled by businesses adopting AI services and leveraging Alphabet's custom AI chips, known as TPUs. Meanwhile, Microsoft is recognized as a top pick in software by Morgan Stanley, with its price target raised to $625, due to its strong standing in generative AI and public cloud services. In the hardware space, Broadcom is emerging as a notable competitor to Nvidia in the AI chip market, focusing on custom AI chips (XPUs) and securing substantial orders, potentially from OpenAI. OpenAI itself has launched ChatGPT Pulse, a new feature for Pro subscribers that proactively delivers personalized insights, particularly useful for crypto traders, though it functions as a monitoring tool rather than a financial advisor. On the investment front, AI ETFs offer a diversified approach to the booming AI market, which is projected to exceed $2 trillion. Companies like Vertiv and Eaton are also attracting attention from income investors due to their AI exposure and dividend payments. However, the AI landscape isn't without its challenges. Accenture is navigating slower growth by cutting staff it cannot retrain for AI skills, while simultaneously planning for overall headcount growth and investing in AI specialists. The company incurred approximately $615 million in restructuring charges. Separately, enterprise AI software firm C3.ai faces a class action lawsuit alleging misrepresentation to investors regarding its financial health and growth prospects, particularly in light of CEO Thomas M. Siebel's health issues.

Key Takeaways

  • Alphabet's Google Cloud is experiencing rapid growth, with operating profit doubling year over year, driven by AI service adoption.
  • Microsoft is named a 'Top Pick' by Morgan Stanley with a raised price target of $625, due to its generative AI strength and cloud leadership.
  • Broadcom is positioning itself as a significant rival to Nvidia in AI chips, focusing on custom XPUs and securing large orders, potentially from OpenAI.
  • OpenAI has launched ChatGPT Pulse, a proactive insight feature for Pro subscribers, especially beneficial for crypto traders.
  • Accenture is cutting approximately 7,000 jobs in Q4FY25 while planning for overall headcount growth and investing in AI skills, incurring about $615 million in restructuring charges.
  • Enterprise AI company C3.ai is facing a class action lawsuit for alleged investor misrepresentation concerning financial health and growth prospects.
  • Alphabet and TSMC are highlighted as strong AI stock investment choices due to their roles in AI development and chip manufacturing.
  • AI ETFs provide a diversified investment route into the AI market, expected to surpass $2 trillion.
  • Vertiv and Eaton are noted as AI-exposed stocks offering dividend payments for income investors.
  • The AI market is projected for substantial growth, with TSMC anticipating over 40% annual revenue growth through 2029 for AI chips.

Accenture cuts jobs but plans to hire more amid AI shift

Accenture is reducing its workforce by cutting employees it cannot retrain for AI skills, while also planning to increase its overall staff in the next fiscal year. CEO Julie Sweet stated that upskilling is the company's top strategy, but some employees are being let go due to a lack of viable reskilling paths. Despite these cuts, Accenture expects its global headcount to grow, with over 779,000 employees at the end of August. The company incurred about $615 million in restructuring charges, mainly for severance, and plans to divest two acquisitions. Accenture has significantly increased its AI and data specialists and trained many employees in generative AI, viewing AI as an expansionary force.

Accenture cuts staff and exits deals amid slowing growth

Accenture is reducing staff and divesting $865 million in non-core assets as it anticipates slower growth in fiscal year 2026. CEO Julie Sweet noted that while AI demand remains strong, overall market growth is moderating. The company's workforce decreased by about 7,000 employees in Q4FY25, bringing the total to approximately 770,000. Accenture projects FY26 revenue growth between 2% and 5%, impacted partly by changes in the U.S. federal business. Despite layoffs, the company plans to continue hiring and reskilling in key areas like AI and cloud services, expecting headcount growth in the U.S. and Europe.

Alphabet and TSMC: Top AI stock picks for investors

Alphabet and Taiwan Semiconductor Manufacturing (TSMC) are highlighted as strong investment choices in the growing AI market. Alphabet's Google Cloud is experiencing rapid growth, with its operating profit doubling year over year, driven by companies adopting AI services. Alphabet's competitive edge comes from its AI models and custom-designed Tensor Processing Units (TPUs). TSMC, the world's largest chip manufacturer, is crucial for powering AI technologies and is expanding its global facilities. The company expects significant revenue growth in 2025, fueled by high demand for AI chips.

Alphabet and TSMC: Top AI stock picks for investors

Alphabet and Taiwan Semiconductor Manufacturing (TSMC) are recommended as strong AI stock investments. Alphabet's Google Cloud is seeing significant growth as businesses adopt AI, with its operating profit doubling in the second quarter. The company benefits from its proprietary AI models and Tensor Processing Units (TPUs). TSMC, the leading chip manufacturer, is essential for AI development and is expanding globally. TSMC anticipates substantial revenue growth in 2025 due to high demand for AI chips, with projections of over 40% annual growth through 2029.

Broadcom emerges as a potential rival to Nvidia in AI chips

Broadcom is rapidly growing its presence in the AI chip market, potentially challenging Nvidia's dominance by 2030. While Nvidia's GPUs are powerful and general-purpose, Broadcom designs custom AI chips called XPUs for specific functions, which accounted for 65% of its AI revenue last quarter. The company recently secured a $10 billion order for AI racks, possibly from OpenAI. Although Broadcom is unlikely to surpass Nvidia entirely, its specialized approach and growing market share position it as a significant player in the expanding AI infrastructure market.

OpenAI's ChatGPT Pulse offers proactive crypto insights

OpenAI has launched ChatGPT Pulse, a new feature that proactively delivers personalized daily updates and insights to users, especially benefiting crypto traders. This AI tool works in the background to anticipate user needs, providing market signals and news before users even ask. Available initially for Pro subscribers on mobile, Pulse analyzes past conversations and interests to create targeted reports. While it integrates with the Google ecosystem for broader insights, OpenAI emphasizes that Pulse is a monitoring tool and not a financial advisor, requiring human validation for its recommendations.

Vertiv and Eaton: Dividend-paying AI stocks for income investors

Vertiv and Eaton are highlighted as two AI-exposed stocks that also offer dividend payments, appealing to income-focused investors. Vertiv exceeded earnings and sales expectations, raising its full-year 2025 guidance due to strong demand driven by AI adoption and data center growth, offering a modest 0.1% annual yield. Eaton, an intelligent power management company, also benefited from AI-driven data center demand, reporting record-breaking quarters and offering a 1.1% annual yield with a long history of consistent dividend payments.

AI ETFs offer a safe way to invest in the AI boom

Exchange-traded funds (ETFs) provide a potentially safer and simpler way for investors to gain exposure to the rapidly growing artificial intelligence market. With AI expected to reach over $2 trillion by early next decade, ETFs like the Global X Artificial Intelligence and Technology ETF allow investment in a diversified basket of AI companies, from chipmakers to robotics firms. This approach mitigates the risk of picking individual winners and offers exposure to both established and emerging players. Investors should look for ETFs with low expense ratios, typically under 1%, to maximize their returns.

Morgan Stanley names Microsoft its top AI pick with higher price target

Morgan Stanley has named Microsoft (MSFT) its 'Top Pick' in large-cap software, raising its price target to $625, indicating a potential 23.3% upside. Analyst Keith Weiss cited Microsoft's strong position in generative AI, which is driving significant wallet share gains, and its leadership in public cloud migration and cybersecurity. Weiss believes the market is underestimating Microsoft's sustained high-teens total return potential and views the stock as undervalued. He also addressed concerns about the Pentagon's JEDI cloud contract, suggesting it highlights Microsoft's capacity and focus on higher-margin enterprise clients.

C3.ai faces class action lawsuit over alleged investor misrepresentation

Enterprise AI software company C3.ai (AI) and its executives are facing a class action lawsuit for allegedly misleading investors about the company's financial health and growth prospects. Filed in the U.S. District Court for the Northern District of California, the suit claims C3.ai downplayed risks related to CEO Thomas M. Siebel's health issues, which plaintiffs argue heavily influenced the company's projections. The stock price dropped over 25% after C3.ai announced disappointing first-quarter results and lowered its revenue guidance, citing reorganization and Siebel's health problems. Investors who purchased C3.ai securities between February 26, 2025, and August 8, 2025, are encouraged to contact Hagens Berman by October 21, 2025.

Sources

AI chips Artificial Intelligence Generative AI AI stocks Investment Cloud computing Data centers Workforce Reskilling Layoffs ETFs Software Cybersecurity Semiconductors AI market AI infrastructure Crypto insights Dividend stocks Enterprise AI