September 5, 2025

finance  
meta, microsoft and palantir Updates

The artificial intelligence sector continues to see significant investment and growth, with Morgan Stanley predicting a 600% surge in AI spending by 2028. Companies like Meta Platforms are leveraging AI to enhance recommendations and ad performance on their social media platforms, while also being viewed as resilient investments amidst potential market corrections. Microsoft and Meta are already reporting AI as a key revenue driver, contributing to strong overall growth in the tech industry. Despite market uncertainty, the CNEQ ETF has seen its Net Asset Value rise over 24% year-to-date, with over 40% of its portfolio in information technology. Meanwhile, Palantir Technologies has seen its stake sold by billionaire Stanley Druckenmiller, who has shifted his investment towards Broadcom, a key provider of AI networking hardware and custom AI chips crucial for data centers. Other companies like Apple are also developing their AI strategies, with rumors of an AI search engine, and are considered potentially spared from an AI bubble risk due to their current valuations. The demand for AI infrastructure is evident in the strong performance of companies like Amphenol and HPE, both experiencing surges in stock prices due to robust AI server sales and networking growth. Credo Technology is also playing a vital role in AI connectivity with its active electrical cables, leading Bank of America to maintain a buy rating on the stock. In the realm of AI data infrastructure, Recall.ai has secured $38 million in Series B funding for its platform that processes billions of minutes of conversations annually, with backing from investors including Salesforce Ventures. Chinese venture capital firm Lanchi Ventures is also actively investing in AI and robotics startups within China, focusing on AI applications and multimodal AI models.

Key Takeaways

  • Morgan Stanley predicts a 600% surge in AI spending by 2028, identifying Meta Platforms and Pure Storage as strong investment choices.
  • Meta uses AI to enhance recommendations and ad performance on its social media platforms.
  • Microsoft and Meta have reported AI as a key revenue driver, contributing to overall tech industry growth.
  • The CNEQ ETF, with over 40% in information technology, has seen its NAV rise over 24% year-to-date.
  • Billionaire Stanley Druckenmiller sold his Palantir stake and increased his investment in Broadcom, a key AI networking hardware provider.
  • Apple is developing its AI strategy, potentially including an AI search engine, and is seen as resilient to AI bubble risks.
  • Amphenol and HPE have seen stock surges due to strong AI server sales and networking growth.
  • Recall.ai raised $38 million in Series B funding for its AI conversation data platform, with support from Salesforce Ventures.
  • Credo Technology's active electrical cables are crucial for AI connectivity, leading Bank of America to maintain a buy rating.
  • Chinese venture capital firm Lanchi Ventures is launching a new fund to invest in AI and robotics startups in China.

Meta and Pure Storage: Top AI Stock Picks for September

Morgan Stanley predicts a 600% surge in AI spending by 2028, suggesting Meta Platforms and Pure Storage as strong investment choices beyond Nvidia and Palantir. Meta uses AI to enhance recommendations and ad performance on its social media platforms. Pure Storage offers efficient enterprise storage solutions ideal for AI workloads. Analysts have positive outlooks for both companies, with price targets suggesting potential upside.

Meta and Pure Storage: Top AI Stock Picks for September

Morgan Stanley predicts a 600% surge in AI spending by 2028, suggesting Meta Platforms and Pure Storage as strong investment choices beyond Nvidia and Palantir. Meta uses AI to enhance recommendations and ad performance on its social media platforms. Pure Storage offers efficient enterprise storage solutions ideal for AI workloads. Analysts have positive outlooks for both companies, with price targets suggesting potential upside.

Meta and Pure Storage: Top AI Stock Picks for September

Morgan Stanley predicts a 600% surge in AI spending by 2028, suggesting Meta Platforms and Pure Storage as strong investment choices beyond Nvidia and Palantir. Meta uses AI to enhance recommendations and ad performance on its social media platforms. Pure Storage offers efficient enterprise storage solutions ideal for AI workloads. Analysts have positive outlooks for both companies, with price targets suggesting potential upside.

CNEQ Fund Focuses on Tech Innovation Amid Market Uncertainty

Despite market uncertainty, tech companies like Nvidia, Meta, and Microsoft are showing strong growth driven by artificial intelligence. The CNEQ ETF offers a focused strategy on individual securities with high growth potential, holding up to 30 stocks. Over 40% of its portfolio is in the information technology sector, but it also includes non-tech companies for diversification. As of August 14, 2025, CNEQ's NAV has risen over 24% year-to-date.

AI Spending Payoff Nears as Cash Flow Expected to Rise

Major tech companies have invested heavily in AI, and research from Alger suggests a payoff is approaching. Capital expenditure for the top five AI hyperscalers is projected to slow, while operating cash flow is expected to increase. Microsoft and Meta have already reported AI as a key revenue driver. The Alger AI Enablers & Adopters ETF (ALAI) offers diversified exposure to AI companies, including those in infrastructure and AI implementation.

Deutsche Bank Warns of AI Bubble Risk; Apple and Meta May Be Spared

Deutsche Bank has flagged potential "AI bubble risk" in the U.S. stock market, though a crash is not guaranteed. Investors are advised to stay invested and consider companies that might withstand a correction. Apple is seen as potentially spared due to its AI strategy not being heavily priced into its stock, despite rumors of an AI search engine. Meta Platforms is also considered resilient due to its agile approach to AI spending and its relatively low valuation.

Amphenol Stock Surges on Strong AI Server Sales

Amphenol (APH), an AI data center company, saw its stock rise significantly, breaking above a key buy point. The stock has gained 59% year-to-date and reached an all-time high. This surge is attributed to strong AI server sales and a boost from its networking business. Amphenol's performance highlights its position in the growing AI infrastructure market.

Recall.ai Secures $38 Million for AI Conversation Data Platform

Recall.ai has raised $38 million in Series B funding, reaching a $250 million valuation. The company provides infrastructure for AI products built on human conversations, offering a unified API for recordings, transcripts, and metadata. This platform supports over 1,000 conversation intelligence products and processes billions of minutes of conversations annually. Investors include Bessemer Venture Partners, HubSpot Ventures, and Salesforce Ventures.

Lanchi Ventures Invests Heavily in Chinese AI and Robotics Start-ups

Chinese venture capital firm Lanchi Ventures is launching a new fund to invest in AI and robotics start-ups within China. The firm, formerly BlueRun Ventures China, manages over 15 billion yuan and focuses on AI applications, multimodal AI models, and companies targeting international markets. Lanchi believes China's data advantage benefits its embodied AI start-ups. The new fund aims to support Chinese entrepreneurs with global visions.

HPE Stock Rises on Strong AI Server Sales and Networking Growth

HPE's stock saw a slight increase due to robust sales of its AI servers and a boost from its networking division. The company's performance reflects the growing demand for AI infrastructure. Strong sales in these key areas are driving positive momentum for HPE in the market.

Druckenmiller Sells Palantir, Buys Broadcom AI Stock

Billionaire Stanley Druckenmiller has sold his entire stake in Palantir Technologies, possibly due to its high valuation. He has also increased his investment in Broadcom, a major player in AI networking hardware. Broadcom's custom AI chips are crucial for data centers, with significant projected revenue from hyperscaler customers. Druckenmiller's moves suggest a shift towards companies with essential AI infrastructure.

BofA Bullish on Credo Technology's AI Growth Potential

Bank of America maintains a buy rating on Credo Technology (CRDO), citing its strong financial results and key role in AI connectivity. Analysts predict the stock could rise another 32% from its current target of $165. Credo's active electrical cables (AEC) are vital for high-speed, low-cost connectivity in AI clusters. The company is also diversifying its customer base and expanding its product pipeline.

Sources

AI Spending Meta Platforms Pure Storage Nvidia Palantir AI Investment Tech Stocks Artificial Intelligence AI Infrastructure AI Servers AI Chips AI Data Centers AI Networking AI Conversation Data AI Robotics AI Start-ups AI Bubble Risk AI Strategy AI Revenue AI Workloads AI Solutions AI Products AI Models AI Connectivity AI Growth Potential AI Market AI Enablers AI Adopters AI Hyperscalers