October 26, 2025

finance  
Meta $27B Data Center, OpenAI Cloud Deals, Nvidia Partnerships

The artificial intelligence sector continues to see significant investment and strategic shifts across various companies. Meta Platforms is streamlining its operations by cutting approximately 600 jobs in its Superintelligence and AI divisions, while simultaneously pursuing a $27 billion data center joint venture with Blue Owl Capital. In cloud computing, CoreWeave has experienced a remarkable 207.5% stock surge since its IPO, bolstered by a $30.1 billion contract backlog that includes expansions with OpenAI. Micron Technology's stock is rallying strongly due to high demand for its memory chips used in AI applications, with plans to expand its High Bandwidth Memory (HBM) chip production. SS&C Technologies reported exceeding expectations for Q3 fiscal year 2025, with revenue reaching $1.57 billion and projecting $1.61 billion for the next quarter, attributing its performance to product expansion and AI initiatives. Meanwhile, SuperX AI Technology has raised $39.9 million in funding to support AI server development and explore new investment opportunities. In the networking space, Extreme Networks is advancing its AI strategy with new service agents and leadership changes, aiming to embed AI into enterprise networking. Pure Storage is also seeing analyst upgrades driven by AI application momentum and growing partnerships. Marvell Technology is expanding its connectivity products for AI data centers, reporting record data center revenue despite stock price volatility. Coherent is focusing on AI data center growth with new optical technologies, while Eaton Corp. is positioned as a key beneficiary of AI data center build-outs through partnerships with NVIDIA and others. Tempus AI is advancing cancer research through AI tools and a collaboration with Whitehawk Therapeutics, having recently received FDA clearance for a device. Amplitude has launched new AI tools to enhance behavioral data insights, and BigBear.ai, despite a revenue dip, is seeing stock gains from defense AI partnerships and edge computing deals.

Key Takeaways

  • Meta Platforms is cutting approximately 600 AI jobs while pursuing a $27 billion data center joint venture.
  • CoreWeave's stock has surged 207.5% post-IPO, with a $30.1 billion contract backlog including OpenAI expansions.
  • Micron Technology's stock is rallying due to strong demand for AI memory chips, with plans to increase HBM chip production.
  • SS&C Technologies reported Q3 FY25 revenue of $1.57 billion, projecting $1.61 billion for the next quarter, driven by AI initiatives.
  • SuperX AI Technology secured $39.9 million in funding for AI server development.
  • Extreme Networks is enhancing its AI strategy with new service agents and leadership appointments.
  • Pure Storage is experiencing positive analyst ratings due to AI momentum and partnerships.
  • Marvell Technology is expanding its AI data center offerings and reporting record data center revenue.
  • Eaton Corp. is benefiting from AI data center expansion through partnerships with NVIDIA and others.
  • Tempus AI is advancing cancer research with AI tools and a new FDA-cleared device.

Pure Storage AI Momentum Boosts Analyst Ratings

Pure Storage is gaining attention as analysts upgrade ratings due to strong momentum in AI applications and flash storage. The company's growing partnerships with hyperscalers and expected increase in subscription revenue are key factors. Investors are watching closely ahead of upcoming earnings reports. Pure Storage aims to increase long-term recurring revenue through AI-powered storage solutions. Recent updates include enhanced cyber resilience and a public cloud offering on Azure.

Marvell Technology Expands AI Data Center Offerings

Marvell Technology is expanding its connectivity products for AI data centers and has refocused its business. Despite recent stock price turbulence, the company is seeing momentum with record data center revenue. Analysts suggest Marvell may be undervalued, citing growth in custom data center silicon and interconnect designs. However, reliance on a few large customers and high research spending pose risks. An alternative analysis suggests the stock might be overvalued based on cash flow projections.

Meta Cuts AI Jobs to Streamline Operations

Meta Platforms is cutting about 600 jobs from its Superintelligence and AI divisions to improve efficiency and speed up decision-making. This move comes as Meta continues to invest heavily in AI infrastructure and data centers. The company aims to expand its technology capabilities while seeking better operational efficiency. These restructuring efforts may impact Meta's long-term earnings and its focus on AI-driven growth. Meta is also pursuing a $27 billion data center joint venture with Blue Owl Capital.

Amplitude Launches New AI Tools, Stock Sees Volatility

Amplitude has launched its Model Context Protocol server and expanded its AI Agents beta program to all customers. These new tools aim to make behavioral data insights more accessible within AI environments. While Amplitude's shares have been volatile, recent product launches show improving fundamentals. The stock currently trades at a discount to analyst targets, suggesting a potential buying opportunity. However, slow monetization of AI products or reliance on large deals could pose risks.

Extreme Networks Accelerates AI Strategy with New Agent and Leadership

Extreme Networks is advancing its AI strategy with the rollout of its AI Service Agent for all Extreme Platform ONE customers and the promotion of CTO Nabil Bukhari to President of AI Platforms. The company is also hosting an upcoming AI Summit in New York City. These developments signal a shift towards embedding AI in enterprise networking for improved customer efficiency. The AI Service Agent could boost recurring software revenue, though revenue concentration in government contracts remains a risk.

Sea's AI Push May Reshape Investment Outlook

Sea Limited is focusing on AI-driven growth across its e-commerce, gaming, and fintech sectors amid intense competition. Recent analyst updates show mixed views, with a focus on improving Shopee's profitability. Sea is exploring new ways to monetize Shopee, which is seen as key to improving operating margins and revenue quality. However, increasing competition in Southeast Asia and Brazil presents a significant challenge. The company projects substantial revenue and earnings growth by 2028.

SS&C Technologies Exceeds Expectations in Q3 2025

SS&C Technologies reported better-than-expected revenue for the third quarter of fiscal year 2025, with sales reaching $1.57 billion, a 6.9% increase year-over-year. The company anticipates approximately $1.61 billion in revenue for the next quarter, aligning with analyst estimates. SS&C Technologies also surpassed analyst expectations for non-GAAP profit, reporting $1.57 per share. The company highlighted product expansion, AI initiatives, and margin improvement as key factors in its performance.

Micron Technology Stock Soars on AI Chip Demand

Micron Technology is experiencing a significant stock rally, driven by strong demand for its memory chips used in AI applications. The company reported a 49% revenue increase in its fiscal year 2025, with improved profitability due to better memory chip pricing. Micron plans to redirect AI server memory chip capacity from China to other markets. Analysts expect Micron's earnings to double in the upcoming fiscal year, making the stock appear undervalued despite its recent gains. The company is expanding its manufacturing capacity for High Bandwidth Memory (HBM) chips.

Eaton Corp: A Top Second Derivative AI Investment

Eaton Corp. is considered a leading second-tier investment benefiting from the AI data center build-out and U.S. production expansion. The company has formed strategic partnerships with NVIDIA, Siemens Energy, and ChargePoint, which are expected to drive high-margin growth in data centers and electrification. Eaton raised its guidance for organic growth and operating margin in Q2, supported by a strong backlog. Despite a premium valuation, the stock is recommended for long-term investors, especially during market volatility.

Tempus AI Partners with Whitehawk for Cancer Research

Tempus AI is collaborating with Whitehawk Therapeutics to advance cancer research, reinforcing its focus on multimodal datasets and AI tools for precision oncology. This partnership supports Tempus AI's goal of driving biopharma collaborations and recurring revenue. The company recently received FDA clearance for its RNA-based Tempus xR IVD device. While the company shows strong revenue growth potential, increasing competition and potential margin compression are key risks. Community fair value estimates for the stock show a wide range of opinions.

Coherent Eyes AI Data Center Growth for Future Narrative

Coherent is looking to leverage the growing AI data center demand to redefine its long-term growth strategy, focusing on advanced photonics. The company recently introduced new optical technologies like the dual laser QSFP28 DCO module. While these product launches support the AI data center catalyst, margin risks from aggressive Asian competitors remain a concern. Investors are monitoring pricing pressure and potential product commoditization as competition intensifies in the market.

BigBear.ai Stock Surges on Security Partnership and AI Edge Computing

BigBear.ai's stock has seen significant gains in 2025, partly due to its focus on defense AI partnerships and a recent AI edge computing deal with Tsecond. The company also deployed its veriScan biometric platform at Chicago O'Hare Airport, speeding up international arrival processing. Despite these advancements, Q2 2025 revenue decreased by 18%, and full-year guidance was lowered. Analysts are divided, with a consensus 'Hold' rating, but the company maintains a substantial cash reserve and contract backlog.

IREN Ltd. Stock Jumps on AI Enthusiasm and Upcoming Earnings

IREN Ltd. experienced a significant share price increase of 12.60 percent, closing at $62.90. This surge is attributed to renewed investor interest in stocks benefiting from the artificial intelligence (AI) trend, further boosted by positive news from Oracle Corp. The company is poised to release its upcoming earnings report, which investors are closely watching for further insights into its performance and future prospects within the AI sector.

CoreWeave Stock Soars 207.5% on AI Cloud Growth

CoreWeave, a cloud computing company, has seen its stock price surge by 207.5% since its IPO, driven by rapid growth in AI adoption. The company reported a strong second quarter with a $30.1 billion contract backlog, including expansions with OpenAI. CoreWeave's purpose-built AI cloud infrastructure and recent acquisitions like Weights & Biases enhance its competitive edge. However, risks include reliance on a few major customers, significant losses from investments, and heavy data center expansion costs. Analysts maintain a 'Buy' rating on the stock.

SuperX AI Technology Raises $39.9 Million in Funding

SuperX AI Technology Limited has secured approximately $39.9 million through a private placement with an institutional investor. The funds will support AI server development, explore AI investment opportunities, and cover general corporate purposes. This strategic financing is expected to strengthen the company's financial position and fuel its growth within the AI industry. The agreement involves the sale of ordinary shares and warrants, with potential for additional proceeds if warrants are exercised.

Sources

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