The artificial intelligence sector continues to see robust investment and development, with major tech players like OpenAI, Meta, and Nvidia driving demand for AI infrastructure. CoreWeave, a company focused on AI data centers, has secured a substantial revenue backlog of nearly $14 billion, bolstered by contracts with these tech giants, and is expanding its capacity. In the data and AI platform space, Snowflake and Palantir are both experiencing significant growth, with Palantir's new Artificial Intelligence Platform (AIP) attracting new orders and Snowflake's AI features influencing nearly half of its new customers. Meanwhile, Alibaba is integrating generative AI into its e-commerce platforms, Taobao and Tmall, to enhance customer experience and product relevance, alongside a new partnership with NBA China that is expected to benefit its cloud division. Pearson is also reporting steady growth, fueled by AI-powered learning tools and enterprise deals with companies including Salesforce, Cognizant, and Deloitte. The broader tech industry's commitment to AI spending persists despite concerns about a potential bubble, benefiting semiconductor and technology-focused exchange-traded funds. In the AI cybersecurity realm, SentinelOne is garnering mixed but generally positive analyst attention for its behavioral AI threat detection capabilities. However, not all AI companies are without challenges; C3.ai is facing a class action lawsuit alleging misleading statements to investors regarding its financial health and growth prospects. In the startup space, AI home insurer Stand has raised $35 million to expand into high-risk markets, utilizing AI for risk assessment. Analysts are also evaluating smaller AI players, with Applied Digital, Eos Energy, and CleanSpark being discussed for their roles in areas like HPC hosting and AI power demand.
Key Takeaways
- CoreWeave has a nearly $14 billion revenue backlog from contracts with OpenAI, Meta, and Nvidia, and is expanding its AI data center capacity.
- Palantir's revenue grew 44% in the first half of 2025, driven by its Artificial Intelligence Platform (AIP), while Snowflake sees AI influencing nearly 50% of its new customers.
- Alibaba is using generative AI to improve its e-commerce platforms and has partnered with NBA China, boosting its cloud business.
- Pearson's third-quarter growth is supported by AI learning tools and enterprise deals, including with Salesforce.
- Major technology companies continue significant AI infrastructure spending despite concerns of an AI bubble.
- AI cybersecurity firm SentinelOne receives mixed but generally positive analyst ratings, with price targets ranging up to $29.00.
- C3.ai faces a class action lawsuit alleging misleading statements to investors about its financial health and growth.
- AI home insurer Stand raised $35 million in Series B funding to expand into wildfire and hurricane-prone markets.
- Analysts are examining small and mid-cap AI stocks like Applied Digital for HPC hosting and Eos Energy for AI power solutions.
- Advanced Micro Devices' (AMD) AI hardware is showing increased momentum following an industry conference, according to Bank of America.
CoreWeave stock dips but offers strong AI growth potential
CoreWeave, a company specializing in AI data centers, has seen its stock price drop by about 27% since June 20. Despite this, the company has a massive revenue backlog of nearly $14 billion, boosted by new contracts with OpenAI, Meta Platforms, and Nvidia. CoreWeave is expanding its data center capacity, with 2.2 gigawatts secured for future deployments. Its current valuation appears attractive compared to competitors like Nvidia, given its rapid growth and strong demand for AI computing power.
Snowflake vs Palantir Which AI stock is a better buy
Both Snowflake and Palantir are experiencing significant growth driven by AI. Palantir's revenue increased by 44% in the first half of 2025, with its Artificial Intelligence Platform (AIP) driving new orders. Snowflake's data cloud platform is also seeing strong adoption of its AI features, with AI influencing nearly 50% of new customers. While both stocks are expensive, Snowflake's earnings are projected to grow faster in the coming years. Investors may find Snowflake a more attractive option due to its expected higher earnings growth.
SentinelOne AI security gains mixed analyst support
SentinelOne, a fast-growing AI cybersecurity company, is receiving mixed but generally positive analyst ratings. TD Cowen maintained a Buy rating with a $24.00 price target, citing its growth potential. Citi reiterated a Hold rating but raised its price target to $20, showing some caution. JMP Securities maintained a Market Outperform rating with a $29.00 price target following strong Q2 FY2026 earnings. SentinelOne uses behavioral AI to detect and neutralize threats across various layers of digital security.
Alibaba uses AI for e-commerce and partners with NBA China
Alibaba is enhancing its e-commerce platforms, Taobao and Tmall, with generative AI tools to improve product relevance and customer engagement ahead of the Double 11 shopping festival. The company also formed a partnership with NBA China, which is expected to boost its Alibaba Cloud division. These AI-driven initiatives and the NBA collaboration have contributed to a recent stock price increase. Alibaba is investing heavily in AI to drive growth in its core businesses and expand its cloud services.
Pearson sees steady Q3 growth fueled by AI and enterprise deals
Pearson reported steady third-quarter growth, driven by its focus on technology, data, and partnerships, including AI. The Virtual Learning division saw a 17% increase, supported by higher student enrollments. Pearson also launched new AI-powered learning tools and expanded its school network. Enterprise Learning & Skills grew 3% due to major partnerships with companies like Cognizant, Deloitte, and Salesforce. The company expects a strong finish to the year and is well-positioned for future opportunities.
Big Tech continues AI spending despite bubble fears
Major technology companies are significantly increasing their investments in artificial intelligence (AI) infrastructure, despite growing concerns about a potential AI bubble. This sustained spending is expected to benefit exchange-traded funds (ETFs) focused on semiconductors, technology, and utilities. The demand for AI chips and the expansion of AI capabilities are key drivers of this investment. ETFs like the iShares Semiconductor ETF (SOXX) and the iShares U.S. Technology ETF (IYW) are positioned to gain from these trends.
AI home insurer Stand raises $35M for expansion
Stand Insurance, an AI-powered home insurance startup, has raised $35 million in Series B funding to expand into risky markets. The company focuses on properties in wildfire-prone California and plans to enter Florida this year, a market with high hurricane risk. Stand uses remote sensing data and AI to analyze property vulnerabilities and offer tailored risk mitigation plans and insurance policies. While AI offers potential benefits, concerns exist about model accuracy and potential recourse for homeowners.
Seeking Alpha asks about best SMID AI stocks
Seeking Alpha analysts are discussing the best small and mid-cap AI stocks for investors. Applied Digital is highlighted for its accelerating revenue from HPC hosting and nearing profitability. Eos Energy is noted for scaling domestic energy solutions for AI power demand, while CleanSpark integrates AI with Bitcoin infrastructure. However, some analysts prefer large-cap AI stocks for their stability and lower risk.
C3.ai faces class action lawsuit over alleged misleading statements
Enterprise AI software company C3.ai is facing a class action lawsuit alleging that it misled investors about its financial health and growth prospects. The lawsuit claims that the company and its executives violated the Securities Exchange Act of 1934. Investors allege that C3.ai's public statements were overly optimistic and did not fully disclose the impact of CEO Thomas M. Siebel's health issues on the company's ability to meet financial targets. The stock price dropped significantly after C3.ai announced disappointing first-quarter results and lowered its revenue guidance.
AMD AI hardware gains momentum after industry conference
Advanced Micro Devices' (AMD) AI hardware is showing increased momentum following a recent industry conference, according to Bank of America (BofA). This suggests growing interest and adoption of AMD's solutions in the competitive AI hardware market. Further details on the specific gains and conference impact are expected to be released.
Sources
- Down 27%, This AI Stock Is a Screaming Buy Right Now (Hint: It's Not Nvidia) @themotleyfool #stocks $CRWV $NVDA
- Better Artificial Intelligence (AI) Stock: Snowflake vs. Palantir @themotleyfool #stocks $PLTR $SNOW
- SentinelOne’s AI Security Pitch Gains Mixed but Rising Analyst Support
- Alibaba (NYSE:BABA) Valuation: Weighing AI-Driven E-Commerce Gains and New NBA China Partnership
- Pearson posts steady Q3 growth as AI and enterprise deals boost sales
- Big Tech Keeps Spending Despite Rising AI Bubble Fears: ETFs in Focus
- Californian AI home insurance startup expands in risky markets
- SA Asks: What's the best SMID AI stock right now? (GOOG:NASDAQ)
- AI 4-DAY DEADLINE ALERT: Investors Allege Misleading Statements in C3.ai (AI) Class Action Lawsuit-- Hagens Berman
- Advanced Micro Devices' AI Hardware Gains Momentum After Industry Conference, BofA Says