September 7, 2025

finance  
Nvidia Invests CoreWeave, Tesla Votes xAI, Palantir Expands

The artificial intelligence sector continues to see significant investment and strategic partnerships, though some analysts express caution regarding current valuations. Nvidia, the world's largest company by market cap, has made a substantial investment in CoreWeave, an AI data center company, with Microsoft identified as CoreWeave's largest customer. Despite this, analysts warn that stocks like Palantir and CoreWeave could face significant drops, citing high valuations and debt-heavy models respectively. This caution is echoed in a recent MIT study indicating that 95% of organizations currently see no return on their AI investments, leading to skepticism about adoption speed and complexity. However, long-term prospects for AI infrastructure remain strong, drawing parallels to the internet and cloud adoption phases. In the enterprise space, DXC Technology is partnering with startups to develop AI solutions for automotive and manufacturing, while Lumen Technologies is integrating Palantir's AI platforms to enhance its telecom operations. Lear Corporation is expanding its existing Palantir partnership, having already achieved $30 million in savings. Northwestern Medicine is integrating Tempus AI's clinical co-pilot into its electronic health records, and ServiceNow has secured a major federal AI modernization deal with the GSA. Canadian companies like Coveo, Kinaxis, and Shopify are also demonstrating growth through AI integration. Meanwhile, Tesla shareholders are set to vote on a proposal to invest in Elon Musk's xAI startup, a move that could shape Tesla's future in AI and robotics. For investors, UBS recommends Datadog and Cognex as top AI stock picks, while Wall Street sees Super Micro Computer as an undervalued AI stock with considerable upside potential. KeyBanc has raised Alphabet's price target, citing improved AI prospects and Google Cloud's growth.

Key Takeaways

  • Nvidia has invested heavily in AI data center company CoreWeave, which counts Microsoft as its largest customer.
  • Analysts are warning of potential significant drops for Palantir and CoreWeave stocks due to high valuations and financial models.
  • A recent MIT study found that 95% of organizations are currently experiencing no return on their AI investments, leading to skepticism about adoption.
  • DXC Technology is partnering with startups Acumino, CAMB.AI, and GreenMatterAI to advance AI solutions in automotive and manufacturing.
  • Lumen Technologies is integrating Palantir's AI platforms to improve decision-making and streamline operations.
  • Lear Corporation has expanded its AI partnership with Palantir, achieving over $30 million in savings in the first half of 2025.
  • Northwestern Medicine is the first health system to fully integrate Tempus AI's generative AI clinical co-pilot into its electronic health records.
  • Tesla shareholders will vote on a proposal to invest in Elon Musk's xAI startup.
  • UBS analysts recommend Datadog and Cognex as top AI stock picks, citing their AI-driven tools and market position.
  • Wall Street views Super Micro Computer (SMCI) as an undervalued AI stock with potential for at least 24% upside.

KKR hires ex-AWS CEO Adam Selipsky to lead AI infrastructure investments

KKR has appointed former AWS CEO Adam Selipsky as its top technology advisor. He will guide the firm's investments in AI infrastructure and real assets. This move signals KKR's strong focus on expanding its presence in the global AI and data center markets. Selipsky's expertise is expected to shape KKR's future investment strategies in this rapidly growing sector.

DXC Technology partners with startups for new AI solutions

DXC Technology has formed new partnerships with startups Acumino, CAMB.AI, and GreenMatterAI. These collaborations aim to advance AI solutions in the automotive and manufacturing industries. The focus includes smart factory robotics, real-time speech translation, and synthetic data projects. This initiative, part of the STARTUP AUTOBAHN program, shows DXC's commitment to applying emerging technology for practical industry impact.

Lumen Technologies partners with Palantir for AI integration

Lumen Technologies is collaborating with Palantir Technologies to integrate Palantir's AI platforms into its operations. This partnership aims to improve decision-making and streamline workflows as Lumen transitions to next-generation telecom infrastructure. The integration is expected to accelerate Lumen's digital transformation and operational efficiency. This move aligns with Lumen's strategy to enhance its business through advanced AI capabilities.

Lear expands Palantir AI partnership, achieving $30M in savings

Lear Corporation is expanding its five-year partnership with Palantir Technologies to use AI across its global operations. This collaboration has already saved Lear over $30 million in the first half of 2025 through its IDEA program. The expanded use of Palantir's Foundry, Warp Speed, and AI Platform aims to further boost efficiency and innovation for its employees. This move strengthens Lear's focus on cost savings and digital transformation in the automotive sector.

Northwestern Medicine integrates Tempus AI's clinical AI co-pilot

Northwestern Medicine will be the first health system to fully integrate Tempus AI's generative AI clinical co-pilot, 'David', into its electronic health records. This marks a significant step in their ongoing collaboration. The integration aims to provide clinicians with real-time AI insights and improve workflow efficiency. It highlights the growing use of Tempus AI's platform in healthcare for data-driven decisions.

Nvidia invests heavily in AI infrastructure company CoreWeave

Nvidia, the world's largest company by market cap, has invested significantly in CoreWeave, an AI data center company. 91% of Nvidia's $4.3 billion stock portfolio is in CoreWeave. CoreWeave builds specialized data centers for AI applications, using Nvidia hardware. Microsoft is CoreWeave's largest customer, making up about 60% of its revenue. This investment highlights Nvidia's commitment to bolstering the AI sector's infrastructure.

Analysts warn Palantir and CoreWeave stocks could drop significantly

Wall Street analysts are warning that popular AI stocks Palantir Technologies and CoreWeave could see significant drops. Brent Thill at Jefferies has a $60 price target for Palantir, implying 61% downside. Gil Luria at D.A. Davidson has a $36 target for CoreWeave, suggesting 59% downside. While Palantir's software architecture is unique, its valuation is very high. CoreWeave faces challenges with its debt-heavy model despite strong revenue growth.

AI adoption faces skepticism but long-term ROI expected

A recent MIT study found that 95% of organizations see zero return on their AI investments, leading to skepticism. Jefferies analyst Brent Thill notes that enterprise AI adoption is slow and complex, requiring significant effort in data security, integration, and training. He believes that while AI applications are not yet widely successful, the underlying AI infrastructure is a strong area. Thill remains bullish on AI long-term, comparing its adoption to past tech shifts like the internet and cloud.

Canadian AI stocks Coveo, Kinaxis, and Shopify show growth potential

Canada is a significant player in the AI revolution, with companies like Coveo, Kinaxis, and Shopify integrating AI into their products. Coveo uses AI to enhance digital experiences like search and recommendations. Kinaxis leverages AI for supply-chain management, simulating various scenarios. Shopify, a major e-commerce platform, increasingly uses AI tools to support businesses. These Canadian companies are demonstrating strong AI integration and market presence.

Tesla shareholders to vote on investing in Elon Musk's xAI startup

Tesla shareholders will vote on November 6 on a proposal to invest in Elon Musk's AI company, xAI. This decision could impact Tesla's future in AI and robotics. The company's board has taken a neutral stance on the shareholder-submitted proposal. Concerns exist about potential conflicts of interest due to Musk's leadership roles at both Tesla and xAI. The vote comes as Tesla faces challenges with vehicle sales and its robotaxi program.

UBS recommends Datadog and Cognex as top AI stock picks

UBS analysts suggest Datadog and Cognex as two top AI-driven stocks to buy. Datadog, a data analytics company, uses its Bits AI tools for monitoring and securing data workflows, serving major clients like OpenAI and Microsoft Azure. Cognex, a leader in machine vision systems, provides essential technology for manufacturing and chip production, with AI enhancing its capabilities. Both companies are seen as well-positioned for long-term growth in the AI sector.

ServiceNow secures major federal AI modernization deal with GSA

ServiceNow has secured a significant federal modernization agreement with the U.S. General Services Administration (GSA) called OneGov. This deal highlights ServiceNow's momentum in the federal sector, leveraging its AI-driven digital workflow platform. While the agreement expands market access, potential discounts offered to federal customers could impact margins. The partnership demonstrates ServiceNow's ability to scale advanced workflow tools for large government clients.

KeyBanc raises Alphabet price target after DOJ ruling

KeyBanc analyst Justin Patterson increased Alphabet's price target to $265.00, maintaining an Overweight rating. This follows a federal judge's ruling that rejected the DOJ's attempt to force Google to sell its Chrome browser and Android operating system. Although Google must share data with competitors, the ruling was better than anticipated, boosting investor confidence. KeyBanc believes improved AI prospects and Google Cloud's growth will lead investors to re-evaluate Alphabet's underlying asset value.

Wall Street sees Super Micro Computer as cheap AI stock with 24% upside

Wall Street analysts view Super Micro Computer (SMCI) as an undervalued AI stock with significant potential. The company designs and manufactures high-performance servers crucial for AI computations. Despite its vital role in AI infrastructure, SMCI's stock is seen as having not yet experienced the explosive growth of some peers. Analysts predict at least a 24% upside for SMCI, citing its consistent growth and increasing order backlog as indicators of strong future demand.

Sources

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