October 1, 2025

finance  
openai, meta and nvidia Updates

The artificial intelligence sector continues to be a major focus for investors and companies, with Vercel securing a significant $300 million in Series F funding, valuing the company at $9.3 billion. This investment will fuel the growth of Vercel's AI Cloud platform and its AI development agent, v0, which already boasts over 3.5 million users. Meanwhile, Oracle is positioning itself as a key player in AI cloud infrastructure, announcing substantial growth in its cloud business and securing major deals with AI leaders like OpenAI. The broader AI market shows sustained strength, evidenced by Micron Technology's increasing revenue, profit, and cash flow, signaling that the AI boom is a lasting trend rather than a temporary surge. Ubiquiti also plays a critical role, having shipped 85 million devices globally to support the infrastructure for AI networks. However, not all AI-focused companies are without challenges. Meta Platforms faces potential limitations on stock growth due to high AI spending, increased competition, and slowing ad growth, with its long-term AI investment impact remaining uncertain. CoreWeave, an AI infrastructure provider, is experiencing a stock rebound following substantial deals with Meta Platforms, OpenAI, and Nvidia, bolstering its backlog and revenue. Despite these developments, some veteran investors, like Bill Smead, warn of a potential AI stock bubble, drawing parallels to the dot-com era and cautioning about dramatic stock declines if the bubble bursts. In the broader market, stocks ended the third quarter on a strong note, with the Dow Jones Industrial Average reaching a record high, largely driven by the technology sector and the ongoing AI rally. As investor caution grows around AI stocks, some analysts suggest focusing on companies with less direct ties to the AI sector, though others continue to highlight top AI stocks to watch.

Key Takeaways

  • Vercel has raised $300 million in funding, achieving a valuation of $9.3 billion, to expand its AI Cloud platform and AI development agent, v0.
  • Micron Technology's sustained growth in revenue, profit, and cash flow indicates that the AI boom is a lasting market trend.
  • Ubiquiti has supplied 85 million devices worldwide, contributing to the global infrastructure for AI networks.
  • Oracle is a competitive provider of AI cloud infrastructure, securing significant deals with companies like OpenAI.
  • Meta Platforms' stock growth may be limited by substantial AI spending, increased competition, and slowing ad growth.
  • CoreWeave, an AI infrastructure provider, is seeing its stock rebound after securing major deals with Meta Platforms, OpenAI, and Nvidia.
  • Some veteran investors warn that the current AI stock boom could be a bubble, similar to the dot-com era, with potential for dramatic declines.
  • The stock market ended the third quarter with strong gains, led by the technology sector and the AI rally, with the Dow Jones Industrial Average reaching a record high.
  • As caution grows around AI stocks, some research firms suggest focusing on companies with minimal ties to the AI sector.
  • Several AI stocks, including SoundHound AI, BigBear.ai, and Upstart, are gaining investor attention due to advancements in AI technology.

Vercel lands $300M for AI Cloud, valued at $9.3B

AI startup Vercel has raised $300 million in a new funding round led by Accel and GIC, reaching a valuation of $9.3 billion. New investors like BlackRock and Khosla Ventures also participated. Vercel creates tools for building web and AI applications in the cloud. The company plans to use the funds to grow its AI Cloud platform and its AI development agent, v0, which already has over 3.5 million users. This funding highlights the increasing investor interest in AI development.

Vercel secures $300M at $9.3B valuation for AI development

Cloud platform Vercel announced it raised $300 million in an oversubscribed Series F funding round, valuing the company at $9.3 billion. The round was co-led by Accel and Singapore's GIC, with participation from BlackRock and Khosla Ventures. Vercel helps developers build websites and AI-powered applications. The company will use the funds to expand its AI Cloud services, enhance security, and invest in its AI development agent, v0. Vercel also expects a $300 million secondary tender offer for employees and early investors to close in November.

Vercel raises $300M in funding, reaches $9.3B valuation

Vercel, a U.S.-based cloud platform for building websites, has raised $300 million in a Series F funding round, achieving a valuation of $9.3 billion. Accel and Singapore's GIC co-led the round, with new investors including BlackRock and Khosla Ventures. The company uses AI to help developers create applications. Vercel plans to use the investment to grow its AI Cloud services and its AI development agent, v0, which has over 3.5 million users. A secondary tender offer for employees and early investors is also expected to close in November.

Micron shows AI boom is here to stay

Micron's financial performance is improving, with revenue, profit, and cash flow all on the rise. The company's management expects this positive trend to continue. This sustained growth provides further evidence that the artificial intelligence boom is a lasting trend in the market.

Micron's growth signals AI boom is lasting

Micron Technology is experiencing increasing revenue, profit, and cash flow, with management projecting this trend to continue. This sustained financial growth offers investors strong evidence that the artificial intelligence boom is not a temporary surge but a lasting development in the market. The company's performance suggests a robust future driven by AI demand.

Ubiquiti powers global AI networks

Ubiquiti, a maker of radio frequency gear, has shipped 85 million devices worldwide to support the development of AI networks. The company's technology plays a crucial role in building the infrastructure needed for artificial intelligence applications globally. Ubiquiti is recognized for its contribution to leading stock lists like the IBD 50 and Stock Spotlight.

Meta's AI spending may limit stock growth

Meta Platforms faces challenges from slowing ad growth, increased competition, and high AI spending, which could limit its stock's potential. Analysts predict Meta's revenue growth will slow to 9% annually, while capital expenditures may reach two-thirds of its EBITDA in 2025. The long-term impact of its AI investments on financials is uncertain and might not justify current stock prices. An analyst recommends holding META stock with a fair value estimate suggesting modest downside.

Oracle leads in AI cloud infrastructure

Oracle's cloud business is experiencing accelerated growth, with remaining performance obligations reaching $455 billion. The company is proving competitive in building large-scale data centers for AI workloads. Oracle has secured major deals with AI companies like OpenAI, driving demand for its cloud services. Its ability to scale rapidly and offer cost-efficient data centers makes it a strong choice for training AI models.

Veteran investor warns AI stock bubble is set to burst

Veteran investor Bill Smead believes the current AI stock boom is a bubble fueled by momentum and soaring prices, similar to the dot-com era. He is concerned that many investors have heavily invested in AI stocks, whose success may already be overvalued. Smead warns that when the bubble bursts, AI stocks could fall dramatically, impacting savings and the broader economy. His fund avoids tech stocks, focusing instead on sectors like energy and healthcare.

CoreWeave AI infrastructure stock rebounds after major deals

CoreWeave, an AI cloud infrastructure provider, is seeing its stock rebound after securing significant new contracts. A $14 billion deal with Meta Platforms for AI computing capacity follows multi-year agreements with OpenAI and Nvidia. These deals boost CoreWeave's backlog and revenue, diversifying its customer base beyond Microsoft. Despite risks like debt and valuation, the company's strong contract wins and high margins are driving its recovery.

Top AI stocks to watch now

Several artificial intelligence stocks are gaining investor attention. These include SoundHound AI, BigBear.ai, Upstart, Pagaya Technologies, Tempus AI, Rezolve AI, and SentinelOne. These companies are involved in developing, manufacturing, or using AI technology. The AI sector has seen significant growth due to advancements in machine learning and other AI fields.

Stocks end Q3 strong with Dow record amid AI rally

The stock market concluded the third quarter with strong gains, as the Dow Jones Industrial Average reached a record high. The S&P 500 and Nasdaq also saw their best third quarters since 2020. The rally was led by the Technology and Consumer Discretionary sectors, driven by investor confidence in the economy and the ongoing AI trade. Analysts suggest that market volatility may depend on the duration of any potential government shutdown.

Trivariate suggests stocks to buy if AI trade falters

As investors grow cautious about AI stocks, Trivariate Research recommends focusing on companies with minimal ties to the AI sector. Several tech stocks like Oracle, Micron Technology, Broadcom, and C3.ai saw pullbacks recently. Trivariate's list of non-AI stocks includes companies like Johnson & Johnson, Paramount Skydance, and CVS, which have shown strong performance and are in diverse industries.

Sources

AI Cloud Vercel Funding Valuation AI Development Micron AI Boom Ubiquiti AI Networks Meta AI Spending Oracle AI Infrastructure AI Stocks Stock Market CoreWeave OpenAI Nvidia Trivariate Research Tech Stocks