Microsoft Loses $350 Billion While Nebius Group Secures Contract

Microsoft's stock recently experienced its longest period of decline in over a decade, with shares falling for eight consecutive days, a trend not seen since 2011. This downturn resulted in a loss of nearly $350 billion in market value, reflecting growing investor apprehension about the sustainability of current AI spending levels. The company itself reported $34.9 billion in capital expenditures last quarter and anticipates even higher spending in the future, fueling concerns among analysts about the long-term viability of the AI investment boom. Despite these broader market jitters, the demand for AI infrastructure remains robust, benefiting companies like Nebius Group. This AI infrastructure provider saw its stock surge an impressive 475% over the past year. Nebius secured a significant $19.4 billion contract with Microsoft to supply GPU infrastructure over five years, commencing in 2025. This deal positions Nebius to potentially reach $4.4 billion in revenue by 2027 and boost its market capitalization to $84 billion. Similarly, CoreWeave, another GPU cloud services provider, experienced recent stock drops of 18.4% weekly and 17.0% monthly, yet its shares still show a substantial 167.3% gain for the year, underscoring the volatile but high-growth nature of the sector. Beyond direct AI computing, other companies are also capitalizing on the AI surge. Seagate Technology, for instance, has seen its shares rise more than Nvidia's, offering high-capacity storage solutions crucial for cloud providers and enterprise customers. Its Mozaic platform, with over one million drives shipped and adopted by five major cloud providers, has earned it a "Strong Buy" rating from analysts. In Europe, Aixtron, a German semiconductor equipment manufacturer, saw its stock jump 30% this week. The company's tools are vital for producing advanced gallium nitride chips, which are essential for powering AI data centers, with predictions of an eightfold increase in AI server power demand by 2030. Aixtron expects an additional 100 million in annual revenue from 2028 due to this demand. The broader AI market continues its rapid expansion, projected to exceed $826 billion by 2030, impacting nearly every industry. The market for AI Training Cards alone is expected to grow from $23.86 billion in 2024 to $115.08 billion by 2031, driven by increasing AI adoption across finance, healthcare, and other sectors. While investment opportunities abound, experts caution about potential risks, including the possibility of an AI stock bubble and "herd mentality" among investors. Meanwhile, AI is already enhancing existing services, as seen with Cars.com, which reported strong Q3 2025 results with $181.6 million in revenue, partly due to AI-driven tools like the Carson search assistant. Even GoPro anticipates a better outlook in 2026, driven by new products and upcoming AI-related deals.

Key Takeaways

• Microsoft's stock experienced its longest decline since 2011, losing nearly $350 billion in market value due to investor concerns about AI spending.
• Microsoft reported $34.9 billion in capital expenditures last quarter and plans for even higher future spending.
• Nebius Group's stock surged 475% in the past year, securing a $19.4 billion contract with Microsoft for GPU infrastructure over five years.
• Nebius AI expects to reach $4.4 billion in revenue by 2027 and an $84 billion market cap due to the Microsoft deal and strong AI demand.
• CoreWeave's stock dropped 18.4% weekly and 17.0% monthly, but remains up 167.3% for the year, highlighting volatility in AI infrastructure.
• Seagate Technology's shares have risen more than Nvidia's, benefiting from demand for its high-capacity Mozaic storage solutions, used by five major cloud providers.
• Aixtron, a German semiconductor equipment company, saw its stock jump 30%, with its tools crucial for advanced AI chips like gallium nitride.
• The global AI market is projected to grow to over $826 billion by 2030, with the AI Training Card market alone expected to reach $115.08 billion by 2031.
• Cars.com reported strong Q3 2025 results with $181.6 million in revenue, boosted by AI-driven tools like the Carson search assistant.
• Investors are warned about potential risks in the AI market, including a possible stock bubble and "herd mentality."

Microsoft Stock Sees Longest Drop Since 2011

Microsoft's stock fell on Friday, marking its longest period of decline since November 2011. The company's shares dropped 8.6% over eight days, losing nearly $350 billion in market value. This decline happened after its late October quarterly results and reflects a change in investor feelings about AI stocks. Microsoft spent $34.9 billion on capital expenditures last quarter and plans to spend even more.

Microsoft Stock Drops $350 Billion Amid AI Concerns

Microsoft's stock is experiencing its longest losing streak in over a decade, losing almost $350 billion in value. Shares have fallen for seven days straight, a trend not seen since 2010. This decline comes as investors worry about how much money companies are spending on artificial intelligence. Analysts are questioning if the current AI spending boom can last.

Nebius AI Stock Jumps 475 Percent With Huge Microsoft Deal

Nebius Group, an AI infrastructure company, saw its stock rise 475% in the past year. Despite its high valuation, the company expects huge growth due to strong demand for AI computing. Nebius builds AI data centers and provides software, offering flexible rental options. It secured a major $19.4 billion contract with Microsoft to provide GPU infrastructure over five years, starting in 2025. This deal could help Nebius reach $4.4 billion in revenue by 2027 and boost its market cap to $84 billion.

CoreWeave Stock Drops Amid AI Market Changes

CoreWeave's stock price recently dropped 18.4% in one week and 17.0% in the past month. Despite this, its shares are still up 167.3% for the year. This change follows big news about its partnerships and growth in the AI infrastructure business. CoreWeave offers special GPU cloud services for AI and machine learning, operating in a fast-growing but competitive market.

Seagate Stock Outperforms Nvidia and Remains Affordable

Seagate Technology, an AI stock, has seen its shares rise more than Nvidia's and still appears to be a good value. The company benefits from strong demand for its high-capacity storage solutions, especially from global cloud providers and enterprise customers. Seagate's Mozaic platform, which uses Heat-Assisted Magnetic Recording, is gaining popularity. Five major cloud providers already use its Mozaic 3+ terabyte-per-disk products, and it shipped over one million Mozaic drives recently. Analysts are positive about Seagate, giving it a "Strong Buy" rating.

Investing in AI Understanding Risks and Opportunities

Artificial intelligence is changing how people live and work, creating many investment opportunities. The AI market is expected to grow to over $826 billion by 2030, impacting every sector. Investors can buy stocks in AI companies like Nvidia or use professionally managed funds and ETFs. However, experts warn about potential risks, including a possible AI stock bubble and "herd mentality" among investors. It is important to research and understand the risks before investing in AI.

Aixtron Stock Rises as Europe's New AI Chip Player

Aixtron, a German company making semiconductor equipment, saw its shares jump 30% this week. An activist investor called it the "most underappreciated AI beneficiary" in the market. Aixtron's tools are crucial for making advanced chips like gallium nitride, which are vital for powering AI data centers. Experts predict AI server power demand will increase eightfold by 2030, bringing Aixtron an extra €100 million in revenue yearly starting in 2028. While 2026 may see a slight decline, a strong rebound in demand is expected from 2027.

AI Training Card Market to Hit $115 Billion by 2031

The global market for AI Training Cards is expected to grow significantly, reaching $115.08 billion by 2031 from $23.86 billion in 2024. This growth is driven by industries increasingly using AI for decision-making and innovation across sectors like finance and healthcare. Cloud computing and advanced terminals are boosting demand for these high-performance cards. The 100-500 TOPS range of training cards is especially popular due to its balance of power and efficiency.

Cars.com Sees Strong Q3 Growth With Dealer and AI Tools

Cars.com reported strong third-quarter results for 2025, meeting revenue expectations with $181.6 million. The company saw its dealer customer base grow to 19,526, the highest in three years. New marketplace packages and AI-driven tools, like the Carson search assistant, helped increase engagement for both consumers and dealers. Carson now assists 15% of searches and will soon be on the mobile app. Additionally, its appraisal tool AccuTrade completed over 1 million appraisals this quarter.

GoPro Could Improve in 2026 With New Products and AI

Morgan Stanley suggests that GoPro may have a better outlook in 2026. This positive forecast is based on the potential for new products and upcoming deals related to artificial intelligence.

Sources

• Microsoft Eyes Longest Selloff Since 2011 as AI Trade Weakens
• Microsoft stock on track for longest losing streak in a decade, wiping out $350 billion as AI stocks tumble
• This AI Stock Has Soared 475%, But Here's 1 Reason It Still Isn't a Bubble
• Assessing CoreWeave’s Value After Share Price Drop and AI Infrastructure News
• This AI Stock Surpassed Nvidia’s Rally and Still Looks Cheap
• How to invest in the artificial intelligence boom
• Niche Chip Stock Emerges as Europe’s Next Big AI Power Play
• AI Training Card Market to Reach USD 115.08 Billion by 2031 | Rising Demand for High-Performance AI Hardware Drives Growth | Valuates Reports
• CARS Q3 Deep Dive: Dealer Growth and AI Drive Stable Marketplace Momentum
• GoPro May See Better 2026 Setup With New Products, AI Deals, Morgan Stanley Says