The artificial intelligence boom continues to reshape various industries, driving significant demand for computing power and storage, while also presenting complex challenges for startups and established tech giants alike. Meta Platforms is seeking to enter the wholesale power-trading business to manage the substantial energy needs of its AI-driven data centers, joining other tech leaders like Microsoft, Google, and Amazon already active in energy markets. This surge in AI development is also impacting hardware, with Seagate Technology reporting strong growth from demand for its high-capacity storage drives, essential for AI model training and inferencing. In the realm of AI software and services, Revmatics.ai has secured $21 million to develop its AI operating system for marketers, aiming to convert data into revenue. Meanwhile, the healthcare AI sector faces significant hurdles, with startups needing to navigate complex regulations from bodies like the FDA and the EU's AI Act, alongside challenges in accessing and utilizing patient data ethically and legally. Investors in this space are scrutinizing companies for strong net revenue retention, proprietary data, and clear clinical impact, while cautioning against vague metrics and overreliance on AI buzzwords. Conversely, some AI-focused companies are facing investor skepticism; Palantir, BigBear.ai, and C3.ai are flagged for potential avoidance due to concerns over valuations and declining revenues, even in a favorable AI market. Stride, Inc. is investing in tutoring and AI to enhance its educational offerings, though these initiatives may affect gross margin expansion. Adding to the AI talent movement, a leader from Tesla's Optimus humanoid robot program has departed for Meta's AI team, raising questions about the ambitious robot project's future, despite CEO Elon Musk's high expectations for its long-term value.
Key Takeaways
- Meta Platforms is applying to trade wholesale power to manage the significant energy demands of its AI data centers, joining companies like Microsoft, Google, and Amazon in energy market participation.
- Seagate Technology is experiencing substantial growth due to the AI boom's demand for mass-capacity storage, with its high-density drives being adopted by major cloud providers.
- Revmatics.ai has secured $21 million in capital to develop ADAS, an AI operating system designed to transform marketing data into revenue for businesses.
- Healthcare AI startups face major challenges in navigating regulations like the FDA's requirements and the EU's AI Act, as well as securing compliant access to patient data.
- Investors in healthcare AI are prioritizing companies with strong net revenue retention, proprietary data, and demonstrable clinical impact, while flagging vague metrics and unproven AI applications as red flags.
- Palantir, BigBear.ai, and C3.ai are identified as AI stocks investors might consider avoiding due to concerns about their valuations and recent revenue declines.
- Stride, Inc. is investing in AI and tutoring to improve its educational services, a move that could impact its gross margin expansion.
- A key leader from Tesla's Optimus humanoid robot program has left to join Meta's AI team, raising investor concerns about the robot project's progress.
- FactSet reported Q3 CY2025 revenue of $596.9 million, exceeding expectations, but provided a full-year revenue forecast of $2.44 billion that fell slightly short of analyst predictions, citing cautious client spending.
- The demand for AI is driving significant energy consumption, prompting tech giants to actively manage their power needs and explore clean energy solutions.
FactSet revenue beats estimates, but future guidance falls short
Financial data provider FactSet reported Q3 CY2025 revenue of $596.9 million, exceeding expectations. However, the company's full-year revenue forecast of $2.44 billion was slightly below analyst predictions. FactSet's adjusted earnings per share also missed estimates. The company attributes its growth to strong demand for analytics and data solutions, particularly those enhanced by AI. Despite investments in AI and new products, FactSet's guidance reflects cautious client spending and longer sales cycles.
FactSet revenue beats estimates, but future guidance falls short
Financial data provider FactSet reported Q3 CY2025 revenue of $596.9 million, exceeding expectations. However, the company's full-year revenue forecast of $2.44 billion was slightly below analyst predictions. FactSet's adjusted earnings per share also missed estimates. The company attributes its growth to strong demand for analytics and data solutions, particularly those enhanced by AI. Despite investments in AI and new products, FactSet's guidance reflects cautious client spending and longer sales cycles.
Navigating funding for healthcare AI startups
Building and investing in healthcare AI startups faces significant hurdles beyond just technology. Key challenges include navigating complex and evolving regulations like the FDA's requirements and the EU's AI Act. Accessing high-quality, de-identified patient data while respecting privacy laws like HIPAA is also difficult. Investors require strong clinical validation and clear reimbursement pathways, which can be costly and time-consuming to achieve. Founders must assemble expert teams and manage legal risks to secure funding.
Healthcare AI funding faces regulatory and data hurdles
Starting or investing in healthcare AI companies presents unique funding challenges. Companies must overcome regulatory complexities, such as FDA approvals and international AI laws, and secure access to large, high-quality patient datasets while adhering to privacy rules. Demonstrating tangible clinical value and establishing clear reimbursement strategies are crucial for attracting investment. The competitive landscape and the need for specialized talent also add to the difficulties. Investors look for strong teams, clear regulatory plans, and proven clinical impact.
Meta seeks to trade power amid soaring AI energy demand
Meta Platforms is applying to enter the wholesale power-trading business to manage the immense electricity needs of its data centers, driven by the AI boom. The company, which owns Facebook, aims to participate in energy markets as it increases its use of clean energy. Tech giants like Meta, Microsoft, and Google are facing urgent challenges in securing power for their resource-intensive AI systems. Other major tech firms like Amazon, Google, and Microsoft are already active power traders, leveraging their energy contracts and on-site generation capabilities.
Venture capitalists share AI healthcare startup red flags
Venture capitalists are looking for specific indicators when evaluating healthcare AI startups. They prioritize companies with strong net revenue retention, showing existing customers are increasing their contracts. High-quality, proprietary data sets and a clear, measurable clinical impact are also essential. Red flags include vague revenue metrics, overused AI buzzwords without strong data backing, and a lack of authenticity about the problem being solved. Investors want to see realistic financial projections and a genuine understanding of the healthcare market.
Avoid these 3 AI stocks: Palantir, BigBear.ai, C3.ai
Investors should consider avoiding Palantir, BigBear.ai, and C3.ai due to concerns about their valuations and performance. Palantir's stock has seen significant gains, but its valuation appears disconnected from its revenue growth, suggesting potential for stagnation or decline. BigBear.ai and C3.ai both reported declining revenue in their recent quarters, indicating struggles in a highly favorable AI market. Their inability to grow revenue during optimal market conditions raises doubts about their future competitiveness and long-term viability.
Seagate Technology benefits from AI storage demand
Seagate Technology is experiencing significant growth driven by the AI boom's demand for mass-capacity storage. The company's heat-assisted magnetic recording (HAMR) drives, like Mozaic, are improving storage density and efficiency, leading to adoption by major cloud providers. Seagate reported strong revenue growth and improved margins in Q4 fiscal 2025, with a robust order pipeline extending into mid-2026. The company's high-capacity drives are also well-positioned for edge data centers, supporting AI model training and inferencing.
9 under-the-radar AI stocks for targeted exposure
Nine smaller companies offer targeted exposure to the AI boom, avoiding the high valuations of mega-caps and the speculative nature of pre-revenue startups. These companies focus on specific AI niches like edge computing, credit decisioning, and IoT platforms. Ceva licenses edge AI IP, Pagaya Technologies uses AI for credit decisions, and BigBear.ai provides predictive analytics for defense. Other companies include Perion Network in ad-tech, LiveRamp for data infrastructure, Amplitude for product analytics, Tuya for IoT, Veritone for AI orchestration, and Samsara for fleet intelligence. These firms generate real revenue and serve enterprise customers.
Stride invests in tutoring and AI amid competition
Stride, Inc. closed fiscal 2025 with strong revenue growth, driven by its Career Learning segment. The company is now focusing on innovation, heavily investing in tutoring, especially for early literacy, and expanding its external tutoring platform. Stride is also cautiously integrating AI into its programs to improve efficiency and student engagement. However, these investments may moderate gross margin expansion. Stride faces competition from Chegg and Coursera, which are also expanding their AI-powered tutoring and learning solutions.
Revmatics.ai secures funding to turn data into revenue with AI
Revmatics.ai has secured $21 million in committed capital to develop its AI operating system for marketers, called ADAS. This platform aims to transform unused marketing and revenue data into actionable insights and ultimately, revenue. ADAS autonomously evolves based on real-time campaign data, helping organizations discover new customer personas and expand their total addressable market. The system can also generate creator briefs and personalized landing pages, optimizing sales funnels with real-time analytics and self-improvement capabilities.
Tesla Optimus AI leader departs, impacting TSLA stock
Another leader, Ashish Kumar, has left Tesla's Optimus humanoid robot program, raising concerns among investors about the project's viability. Kumar, who led the AI team for two years, announced he is joining Meta's AI team. CEO Elon Musk has stated that Optimus is expected to account for 80% of Tesla's future value. The departure follows previous leadership changes within the Optimus program. Some Tesla shareholders expressed frustration, while Kumar stated his financial compensation at Tesla was higher, implying his decision was not solely money-driven.
Sources
- FDS Q3 CY2025 Deep Dive: AI Investment Drives Product Momentum, Guidance Disappoints
- FDS Q3 CY2025 Deep Dive: AI Investment Drives Product Momentum, Guidance Disappoints
- Healthcare AI Funding Challenges: A Guide for Founders and Investors
- Healthcare AI Funding Challenges: A Guide for Founders and Investors
- Meta pushes into power trading as AI boom sends demand soaring
- AI in Healthcare: Investors’ Green and Red Flags Among Startups
- 3 Popular Artificial Intelligence (AI) Stocks to Steer Clear Of. (Hint: One of Them Is Palantir) @themotleyfool #stocks $PLTR $AI $BBAI
- Meet the Brilliant Stock That Is Racing Into the AI Infrastructure Boom in 2025. Is It a Buy, Hold, or Sell From Here?
- 9 Under-the-Radar AI Stocks to Buy Now
- Stride Bets on Tutoring and AI: Will New Investments Pay Off?
- Revmatics.ai, Ricky Ray Butler Use Seed Funding Capital to Turn Data into Revenue
- Tesla loses another Optimus robot leader, and upsets TSLA stock gamblers