May 30, 2025

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Nvidia Beats Sales, Zscaler Expands AI Security, KhanAI Leads Trading

The AI industry has seen significant developments, with companies like Nvidia beating quarterly sales expectations due to pre-ban stockpiling of its AI chips. However, the company warned that new US export curbs will cut $8 billion from its current-quarter sales. Other companies like Zscaler are expanding their AI security capabilities, while KhanAI is leading the AI revolution with its next-generation AI-powered trading platform. Rillet has raised $25 million in Series A funding to accelerate the development and deployment of AI within its platform. Investors like Cathie Wood are investing in companies like TSMC, which is expected to benefit from the growing demand for AI-powered chips. Additionally, companies like Netflix and Apple are using AI to simplify and speed up content production and develop their own large language models. C3.ai's stock soared over 25% after the company reported better-than-expected results, driven by skyrocketing demand for generative AI products. Other AI laggards like Arista Networks, Five9, and HubSpot have solid short-term price upside potential due to their AI-powered solutions and growing adoption of AI tools.

Key Takeaways

  • Nvidia's quarterly sales exceeded expectations due to pre-ban stockpiling of its AI chips, but the company warned that new US export curbs will cut $8 billion from its current-quarter sales.
  • Zscaler is expanding its AI security capabilities by acquiring Red Canary to position itself for the growing demand in AI-powered security solutions.
  • KhanAI is leading the AI revolution with its next-generation AI-powered trading platform, achieving up to 90% prediction accuracy and being used by over 100,000 investors.
  • Rillet has raised $25 million in Series A funding to accelerate the development and deployment of AI within its platform, automating key accounting workflows and providing real-time financial data.
  • Cathie Wood has invested in TSMC, a leading manufacturer of semiconductors, to capitalize on the AI trend and growing demand for AI-powered chips.
  • Companies like Netflix and Apple are using AI to simplify and speed up content production and develop their own large language models, making them underrated AI stocks to buy.
  • C3.ai's stock soared over 25% after the company reported better-than-expected results, driven by skyrocketing demand for generative AI products.
  • Arista Networks, Five9, and HubSpot are AI laggards with solid short-term price upside potential due to their AI-powered solutions and growing adoption of AI tools.
  • The AI industry is expected to continue growing, with companies investing heavily in AI infrastructure and developing new AI-powered solutions.
  • The use of AI is expected to increase in the coming years, with companies like Amazon and Alphabet already investing heavily in the technology.

Nvidia Sales Beat Expectations

Nvidia's quarterly sales exceeded expectations due to customers stockpiling its AI chips before US export curbs took effect. The company's shares rose 5% in extended trading. However, Nvidia warned that the new export restrictions will cut $8 billion from its current-quarter sales. The company is also facing trade restrictions and a maturing AI data center market. Nvidia's CEO Jensen Huang expressed concerns about the US-China policy and its impact on the company's access to China's massive AI developer base.

Nvidia Beats Q1 Forecast

Nvidia beat its quarterly sales expectations due to pre-ban stockpiling of its AI chips. The company warned that new US export curbs will cut $8 billion from its current-quarter sales. Despite this, Nvidia's shares rose 5% in extended trading. The company is experiencing strong demand for its new Blackwell chips, including large-scale projects in the Middle East and Taiwan. Nvidia's sales are expected to be impacted by trade restrictions and a maturing AI data center market.

Zscaler Expands AI Security

Zscaler is expanding its AI security capabilities by acquiring Red Canary. The company is positioning itself for the growing demand in AI-powered security solutions. Zscaler is not the only company investing in AI, as the technology is being adopted across various industries. The use of AI is expected to increase in the coming years, with companies like Amazon and Alphabet already investing heavily in the technology. Zscaler's acquisition of Red Canary is a strategic move to enhance its AI security offerings.

KhanAI Leads AI Revolution

KhanAI is a next-generation AI-powered trading platform that is making waves in global markets. The platform uses deep learning and predictive market modeling to automate trading processes. KhanAI has achieved up to 90% prediction accuracy and is being used by over 100,000 investors. The company is democratizing smart investing and making it accessible to everyone. KhanAI's success is attributed to its ability to adapt to market volatility in real-time and make decisions based on data rather than emotion.

Rillet Raises $25M in Funding

Rillet, a provider of an AI-native ERP platform, has raised $25 million in Series A funding. The funding round was led by Sequoia Capital. Rillet plans to use the funds to accelerate the development and deployment of AI within its platform. The company's AI agents automate key accounting workflows, enabling customers to close their books in hours rather than weeks. Rillet's platform integrates with tools like Salesforce and Stripe, and its AI agents provide real-time financial data.

Cathie Wood Invests in TSMC

Cathie Wood, a well-known investor, has invested in Taiwan Semiconductor Manufacturing (TSMC). TSMC is a leading manufacturer of semiconductors and is expected to benefit from the growing demand for AI-powered chips. Wood's investment in TSMC is seen as a strategic move to capitalize on the AI trend. TSMC's services are expected to remain in demand as companies continue to invest in AI infrastructure. The company's valuation multiples have been expanding, but its forward P/E is still relatively low compared to the S&P 500 index.

Underrated AI Stocks to Buy

Netflix and Apple are two underrated AI stocks that are worth investing in. Netflix is using AI to simplify and speed up content production, while Apple is developing its own large language model to run its Apple Intelligence suite. Both companies have a strong brand name and are expected to benefit from the growing demand for AI-powered services. Netflix's AI strategy is focused on making better movies for less, while Apple's AI initiatives are expected to drive a robust cycle of renewals in the next few years.

C3.ai Stock Soars After Strong Results

C3.ai's stock soared over 25% after the company reported better-than-expected results. The company's revenue increased 26% to $108.7 million, driven by skyrocketing demand for generative AI products. C3.ai also renewed a major contract with Baker Hughes, a leading oilfield services provider. The company's subscription revenue rose 9% to $87.3 million, and engineering services revenue jumped 196% to $17.0 million. C3.ai's generative AI business more than doubled in the fiscal year.

AI Laggards with Short-Term Price Upside

Arista Networks, Five9, and HubSpot are three AI laggards with solid short-term price upside potential. Arista Networks is well-positioned with its AI-powered cloud networking solutions, while Five9 is benefiting from the growing adoption of AI tools in its call center services. HubSpot is witnessing steady multi-hub adoption from enterprise customers and is driving more value to customers with its AI-powered platform. All three companies have a favorable Zacks Rank and are expected to experience significant growth in the short term.

Sources

Nvidia AI Chips Export Restrictions Zscaler AI Security KhanAI AI-Powered Trading Platform