The artificial intelligence sector is currently experiencing a mix of robust growth, significant investment, and some market volatility. Chinese autonomous driving companies Pony.ai and WeRide faced a challenging debut on the Hong Kong stock exchange, with their shares dropping over 10% each. These firms collectively raised approximately $1.17 billion to $1.2 billion, but investor concerns about their high valuations and lack of immediate profitability led to the weak performance, following similar drops in their New York-traded shares. Pony.ai, for instance, reported $35.4 million in revenue for the first half of the year but also a net loss of $96.1 million, despite operating over 720 Level-4 robotaxis and 170 driverless cargo vans in four Chinese cities. In contrast, several companies are seeing strong financial forecasts driven by AI demand. Datadog Inc. anticipates higher fourth-quarter earnings, with its stock rising nearly 10% on predictions of adjusted earnings per share between 54 and 56 cents and revenue between $912 million and $916 million, fueled by AI-powered security products and cloud adoption. Similarly, Akamai Technologies expects fourth-quarter sales to exceed Wall Street predictions, forecasting revenue between $1.07 billion and $1.09 billion, largely due to strong demand for its AI-cloud infrastructure services. Oracle Corp. also unveiled its new AI Data Platform and AI agents, with its stock surging about 50% year-to-date in 2025, reporting $13.3 billion in revenue for the first quarter of fiscal 2026 and signing four multi-billion-dollar contracts. Investment in AI remains strong, particularly from wealthy family offices, which, despite making fewer overall deals in 2025, significantly increased their funding in large AI rounds. The value of family office investments in AI and machine learning nearly tripled to $123.3 billion in the first half of 2025, with the Winklevoss firm notably participating in a $1.4 billion funding round for Gemini. A survey by Dynamo Software Inc. indicates that 88% of asset allocators plan to boost their AI investments in the coming year, focusing on data centers, infrastructure, and cybersecurity. Semiconductor company EdgeCortix Inc. successfully closed its Series B funding round, raising over $110 million with participation from Intel Capital, to advance its energy-efficient AI processing solutions for edge devices like autonomous vehicles and robots. However, the broader AI market experienced a jolt when Nvidia shares fell 7.6%, leading a decline in technology stocks. This occurred after a Trump administration official commented there would be "no federal bailout" for the AI industry, causing Nvidia's market value to drop over $200 billion in two days. Other AI-related companies, including Advanced Micro Devices (AMD), also saw losses. Despite this, corporate spending on AI reached over $250 billion last year and is projected to grow further. While Meta and Microsoft are recognized as leaders in the AI race, other firms like South Korea's ISC (AI chip testing sockets), Taiwan's Aspeed (server management), Taiwan's Alchip (custom AI chips), South Korea's Komico (semiconductor cleaning), Sandisk (data storage), and Applied Materials (memory chip supplier) are also poised to benefit significantly from the increasing demand for AI technology.
Key Takeaways
- Chinese robotaxi companies Pony.ai and WeRide saw their shares drop over 10% on their Hong Kong debut, raising concerns about profitability despite securing nearly $1.2 billion.
- Datadog Inc. expects strong fourth-quarter earnings and revenue, driven by high demand for its AI-powered security products and increased cloud adoption.
- Akamai Technologies forecasts higher fourth-quarter sales, attributing the growth to strong demand for its content delivery network and AI-cloud infrastructure services.
- EdgeCortix Inc. raised over $110 million in Series B funding, with Intel Capital participating, to accelerate development of energy-efficient AI processing solutions for edge devices.
- Family offices are increasingly investing in large AI funding rounds, with the value of their AI/ML investments nearly tripling to $123.3 billion in H1 2025, including a $1.4 billion round for Gemini.
- A survey reveals 88% of asset allocators plan to increase AI investments in the next year, prioritizing data centers, infrastructure, and cybersecurity.
- Oracle Corp. unveiled a new AI Data Platform and AI agents, with its stock surging approximately 50% year-to-date in 2025 due to cloud and AI contracts.
- Nvidia shares fell 7.6%, leading a tech stock decline, after a "no federal bailout" comment for the AI industry, causing its market value to drop over $200 billion in two days and affecting companies like AMD.
- Corporate spending on artificial intelligence exceeded $250 billion last year and is expected to grow further.
- Beyond Meta and Microsoft, companies like ISC, Aspeed, Alchip, Komico, Sandisk, and Applied Materials are identified as key beneficiaries of rising AI technology demand.
Chinese Robotaxi Firms WeRide and Pony Ai Drop in Hong Kong Debut
Chinese autonomous driving companies WeRide and Pony Ai saw their shares fall sharply on Thursday during their first day of trading in Hong Kong. The firms raised nearly $1.2 billion together in their listings. Pony Ai's shares dropped almost 11%, while WeRide's shares opened down about 8%. This weak start followed a similar soft performance for their shares in New York on Wednesday.
Pony.ai and WeRide Robotaxi Shares Fall in Hong Kong Debut
Chinese robotaxi companies Pony.ai and WeRide saw their shares drop over 10% each on their first day of trading in Hong Kong. The companies raised about $1.17 billion from their stock offerings. Pony.ai's shares fell as much as 14.5%, and WeRide's shares dropped 15%. Both firms are major players in China's growing robotaxi market, but they are not yet making a profit. Investors seem worried about their high value and the long time it will take to make money.
Pony.ai and WeRide Shares Drop in Hong Kong Debut
Chinese robotaxi companies Pony.ai and WeRide experienced a significant drop in their share prices during their first day of trading in Hong Kong. Both companies saw their shares slide by more than 10%. They raised about $1.17 billion in total from their stock offerings.
Chinese Self-Driving Firms Pony Ai WeRide Shares Fall in Hong Kong
Chinese autonomous driving companies Pony Ai and WeRide saw their shares fall on Thursday during their Hong Kong trading debut. The firms raised nearly $1.2 billion in their share offerings. Pony Ai's shares dropped almost 11%, and WeRide's shares opened down about 8%. Both companies plan to use the money for expansion and development. This weak performance follows a drop in their New York traded shares on Wednesday.
Pony Ai and WeRide Shares Plunge in Hong Kong Debut
Chinese autonomous driving companies Pony Ai and WeRide saw their shares plunge around 10% each on Thursday during their Hong Kong trading debut. The two firms raised almost $1.2 billion from their public share offerings. Analysts believe the drop is due to too many new listings and their earlier weak performance in US trading. Pony Ai's CEO James Peng and WeRide's CEO Tony Han both expressed confidence in their companies' long-term development despite the short-term stock fluctuations. They plan to use the raised funds for commercialization, expansion, and hiring.
Pony AI Robotaxi Shares Drop in Hong Kong Debut
Robotaxi company Pony AI Inc. saw its shares fall sharply during its Hong Kong trading debut on Thursday. The stock opened 11% lower and closed down 13% at HK$121 by midday. Pony AI is also listed in the US, where its shares have dropped 23% over the past week. The company operates over 720 Level-4 robotaxis and 170 driverless cargo vans in four Chinese cities. In the first half of this year, its revenue grew to $35.4 million, but its net loss also widened to $96.1 million.
Datadog Expects Strong Earnings from AI Security Demand
Datadog Inc. stock rose almost 10% in premarket trading on Thursday after the company predicted higher fourth-quarter earnings than expected. This strong forecast comes from high demand for its AI-powered security products. Datadog expects adjusted earnings per share between 35 and 37 cents, beating analyst estimates of 32 cents. The company also projects revenue between $612 million and $618 million, which is more than expected. Datadog's growth is driven by more businesses using artificial intelligence and moving to cloud systems.
Datadog Predicts High Q4 Earnings Due to AI Security
Datadog's shares increased by nearly 10% in premarket trading, building on an 8.5% rise this year. The company expects strong fourth-quarter results, driven by the growing use of AI and cloud services. Datadog's monitoring and security tools offer real-time protection and access control. The company forecasts fourth-quarter revenue between $912 million and $916 million, higher than analyst predictions. It also expects adjusted profit per share to be between 54 and 56 cents, surpassing earlier estimates.
Akamai Predicts Higher Sales from AI Cloud Demand
Akamai Technologies expects its fourth-quarter sales to be higher than Wall Street predictions. This is due to strong demand for its content delivery network and AI-cloud infrastructure services. The company's shares rose nearly 6% after the announcement. Akamai forecasts fourth-quarter revenue between $1.07 billion and $1.09 billion. CEO Tom Leighton stated that AI is a major benefit for the company. While cloud-computing revenue grew, its traditional delivery revenue saw a slight decrease.
EdgeCortix Raises Over $110 Million for Edge AI Tech
EdgeCortix Inc., a semiconductor company focusing on energy-efficient AI, has closed its Series B funding round, raising over $110 million in total. VisionNav Capital led the latest investment, with Intel Capital and other existing investors also participating. The company will use these funds to speed up product development, expand sales globally, and grow its operations. EdgeCortix creates AI processing solutions for devices like autonomous vehicles and robots, allowing for powerful AI with low power use. CEO Akihiko Kashiwagi is excited about bringing their AI solutions to a wider market.
Tempus AI COO Spouse Sells Company Stock
Tempus AI Inc. Chief Operating Officer Ryan Fukushima reported insider trading activity through a Form 4 filing. On November 3, 2025, Fukushima's spouse sold shares of Class A Common Stock in three separate transactions. The sales included 500 shares at $87.24, 2,300 shares at $88.84, and 2,200 shares at $89.64. These transactions were carried out under a Rule 10b5-1 trading plan established by the spouse on March 4, 2025.
Rich Families Invest Less But Still Fund Big AI Deals
Investment firms for wealthy families, known as family offices, made fewer deals in 2025, with direct investments dropping 63% in October. However, these firms continue to invest heavily in large funding rounds for artificial intelligence companies. They seek bigger returns and want to be part of the growing AI market. For example, the Winklevoss firm joined a $1.4 billion funding round for Gemini. In the first half of 2025, the value of family office investments in AI and machine learning nearly tripled to $123.3 billion, even though the number of deals stayed similar.
Most Investors Plan to Boost AI and Data Center Funding
A recent survey by Dynamo Software Inc. shows that about 88% of asset allocators plan to increase their investments in artificial intelligence over the next year. This is a rise from 75% in 2024. Investors are most interested in funding data centers and infrastructure, followed by workflow automation and cybersecurity. Many limited partners also plan to invest more with general partners who use AI in their decision-making. The survey found that most respondents are in the early stages of using AI, with only 7% using it extensively.
Oracle Unveils New AI Data Platform and Strong Growth
Oracle Corp. revealed its new AI Data Platform, AI agents, and key partnerships at its AI World event in Las Vegas. Chief Technology Officer Larry Ellison believes the AI boom is a massive transformation. Oracle's stock has surged about 50% year-to-date in 2025, driven by cloud and AI contracts. In the first quarter of fiscal 2026, the company reported $13.3 billion in revenue and signed four multi-billion-dollar contracts. Analysts are optimistic, with some setting price targets as high as $415, expecting continued growth in Oracle Cloud Infrastructure revenue.
Nvidia Shares Drop After No AI Bailout Comment
Nvidia shares fell 7.6% on Thursday, leading a decline in technology stocks. This happened after a Trump administration official stated there would be "no federal bailout" for the artificial intelligence industry. Nvidia, a top maker of AI chips, saw its market value drop by over $200 billion in two days. Other AI-related companies like Advanced Micro Devices and Broadcom also experienced losses. Analysts worry that a lack of government support could slow AI investment, though some believe the industry is strong enough to manage on its own.
Analysts Name Top Stocks to Benefit from AI Spending
Corporate spending on artificial intelligence reached over $250 billion last year and is expected to grow even more. While major tech companies like Meta and Microsoft lead the AI race, analysts point to several other firms set to benefit. These include South Korea's ISC, which makes AI chip testing sockets, and Taiwan's Aspeed, known for server management. Alchip, also from Taiwan, designs custom chips for AI, while South Korea's Komico provides essential semiconductor cleaning services. Additionally, Sandisk, a data storage company, and Applied Materials, a memory chip supplier, are expected to see significant gains from the rising demand for AI technology.
Sources
- China's autonomous driving firms WeRide and Pony Ai slide in Hong Kong trading debut
- Robotaxi race: Pony.ai, WeRide slide in Hong Kong trading debut
- Robotaxi race: Pony.ai, WeRide slide in Hong Kong trading debut
- Chinese autonomous driving firms Pony Ai and WeRide slide in Hong Kong trading debut
- China's autonomous driving firms WeRide and Pony Ai slide in Hong Kong trading debut
- BRIEF: Pony AI falls in Hong Kong trading debut - Bamboo Works - China stock insights for global investors
- Datadog forecasts strong fourth-quarter earnings on AI-driven security demand
- Datadog forecasts strong fourth-quarter earnings on AI-driven security demand
- Akamai forecasts fourth-quarter sales above estimates on AI-driven demand
- EdgeCortix Closes Oversubscribed Series B, Bringing Total Funding Over $110M Amid Growing Edge AI Demand
- [Form 4] Tempus AI, Inc. Insider Trading Activity
- Family offices make fewer deals but still flock to AI startup mega-rounds
- Approximately 88% of Asset Allocators Plan to Increase Investments in AI, Data Centers
- As Oracle Reveals Its new AI Data Platform, Should You Buy, Hold, or Sell ORCL Stock?
- Nvidia leads tech stock declines as Trump official says 'no federal bailout' for AI
- The stocks set to win from soaring AI spend, according to analysts
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