palantir, nvidia and microsoft Updates

Global stock markets experienced declines on Tuesday, with major technology companies, which had previously fueled rallies, leading the losses. The S&P 500 fell 0.7%, the Dow Jones Industrial Average was down 0.4%, and the Nasdaq composite sank 0.9%. This downturn was partly driven by growing investor concerns that the U.S. Federal Reserve might not implement further interest rate cuts this year due to persistent inflation. Among the companies affected, Palantir Technologies saw its stock drop by 7% to 8% despite reporting stronger-than-expected third-quarter earnings. Wall Street analysts raised concerns about its high valuation, with its forward price-to-earnings ratio at 254, significantly higher than Nvidia's 35. Palantir CEO Alex Karp criticized short sellers, labeling their positions as "market manipulation." Nvidia also fell 1.7%, and Microsoft lost 0.7%. Tesla shares declined 2.7% as Norway's sovereign wealth fund plans to vote against CEO Elon Musk's proposed compensation package. While Wall Street saw gains for companies like Nvidia, Amazon, and Palantir on Monday due to AI optimism, Tuesday brought a shift in sentiment. Despite the market fluctuations, the broader artificial intelligence sector continues to see significant activity and investment. Nvidia and Microsoft remain prominent long-term investments in AI. Nvidia dominates with its powerful graphics processing units (GPUs) and CUDA platform, crucial for AI model development, while Microsoft integrates AI across its Azure cloud platform, Microsoft 365 Copilot, and holds a substantial investment in OpenAI, the creator of ChatGPT. The AI cloud infrastructure market is heating up with companies like Nebius Group and CoreWeave competing to provide GPU capacity. Both are backed by investments from Nvidia and have substantial deals with Microsoft. Nebius Group, with a $30 billion market cap, has seen its stock surge 520% since October 2024, including a $17.4 billion AI infrastructure deal with Microsoft. CoreWeave, boasting a $63 billion market cap and a 230% stock increase since its March IPO, generates 70% of its revenue from Microsoft. Astera Labs is also well-positioned for growth in AI infrastructure, focusing on silicon modules amid the industry's shift to 800 GE in the Ethernet AEC sector. In other AI developments, Zest AI, a provider of AI-powered lending solutions, announced on November 4, 2025, that it completed an oversubscribed financing round led by five of its own customers, including Citi Ventures. Zest AI plans to use this investment to expand its automation efforts and enhance its lending intelligence platform, LuLu, which helps lenders achieve a 25% increase in approvals and a 20% reduction in defaults. Furthermore, Chinese AI chatbots QWEN3 MAX and DeepSeek outperformed OpenAI's ChatGPT in a cryptocurrency trading competition, with QWEN3 MAX earning $751 and a 7.5% return, while ChatGPT lost 57% of its initial $10,000 investment. The cybersecurity industry is also experiencing a boom, largely driven by the increasing use of AI to combat complex cyberattacks. However, not all AI-related companies fared well. SoundHound AI Inc. stock dropped 8.42% on November 4, 2025, following significant share sales by insiders, including CTO Timothy Stonehocker, who sold 70,524 shares worth $1.4 million. The company reported a negative profit margin and an EBIT margin of -175.3%, raising investor concerns about its profitability and high valuation.

Key Takeaways

• Global stock markets, including the S&P 500, Dow, and Nasdaq, experienced declines on Tuesday, with major tech companies like Palantir, Nvidia, and Microsoft leading losses.
• Palantir Technologies' stock dropped 7-8% despite strong Q3 earnings, driven by Wall Street concerns over its high valuation (forward P/E of 254 compared to Nvidia's 35).
• Nvidia and Microsoft are identified as strong long-term AI investments, with Nvidia dominating GPU infrastructure and Microsoft integrating AI across its cloud and software offerings, including a significant investment in OpenAI.
• AI cloud providers Nebius Group and CoreWeave, both backed by Nvidia, are competing in GPU infrastructure, with Nebius having a $30 billion market cap and CoreWeave a $63 billion market cap.
• Both Nebius Group and CoreWeave have significant deals with Microsoft; Nebius signed a $17.4 billion AI infrastructure deal, and CoreWeave generates 70% of its revenue from Microsoft.
• Zest AI, an AI-powered lending solutions provider, secured an oversubscribed financing round on November 4, 2025, led by five of its own customers, including Citi Ventures.
• Chinese AI chatbots QWEN3 MAX and DeepSeek outperformed OpenAI's ChatGPT in a cryptocurrency trading competition, with QWEN3 MAX making a $751 profit (7.5% return) while ChatGPT lost 57%.
• Astera Labs is well-positioned for growth in the AI infrastructure market due to increasing demand and the industry's shift to 800 GE in Ethernet AEC.
• The cybersecurity industry is experiencing a boom, largely fueled by the increasing adoption of AI-powered solutions to combat complex cyberattacks.
• SoundHound AI Inc. stock fell 8.42% on November 4, 2025, following significant insider share sales and concerns over its negative profit margin and high valuation metrics.

Global Stocks Fall as Big Tech and AI Shares Decline

Global stock markets saw declines on Tuesday, with the S&P 500 falling 0.7%, the Dow Jones Industrial Average down 0.4%, and the Nasdaq composite sinking 0.9%. Major technology companies, which had previously driven market rallies, led these losses. Palantir Technologies dropped 8% despite strong earnings, while Nvidia fell 1.7% and Microsoft lost 0.7%. Other companies like Zoetis and Norwegian Cruise Line also saw significant drops after their financial reports. Tesla shares fell 2.7% as Norway's sovereign wealth fund plans to vote against CEO Elon Musk's proposed compensation package.

Wall Street Falls as Big Tech AI Rally Slows and Fed Rate Cut Doubts Grow

Wall Street stocks opened lower on Tuesday, with the S&P 500 sliding 1.2%. This decline was driven by a sell-off in major technology companies, which had previously fueled market rallies. Investors also grew concerned that the U.S. Federal Reserve might not cut interest rates again this year due to inflation remaining above its 2% target. Palantir Technologies fell 7% despite strong third-quarter earnings, and Nvidia also dropped 1.7%. European and Asian markets also experienced declines, reflecting global market caution.

Asian Markets Mixed After Wall Street AI Stocks Boost

Asian stock markets showed mixed results on Tuesday, following a boost from AI technology stocks on Wall Street the previous day. Japan's Nikkei 225, Australia's S&P/ASX 200, and South Korea's Kospi all dipped, while Hong Kong's Hang Seng rose and the Shanghai Composite fell slightly. On Monday, Wall Street saw gains for companies like Nvidia, Amazon, and Palantir Technologies, driven by AI optimism and strong earnings reports. However, a discouraging report on U.S. manufacturing activity and concerns over tariffs also impacted market sentiment.

Zest AI Gets Investment From Key Customers

Zest AI, a company that provides AI-powered lending solutions, announced on November 4, 2025, that it successfully completed a financing round. This investment round was oversubscribed and led by five of its own customers. These key customers include SchoolsFirst Federal Credit Union, Members 1st Federal Credit Union, ORNL Federal Credit Union, Truliant Federal Credit Union, and Citi, through its investing group Citi Ventures.

Zest AI Gains Customer Investment for Lending Platform

Zest AI announced on November 4, 2025, that it secured strategic investment for its AI-powered lending solutions. Five of its financial institution customers, including Citi Ventures, SchoolsFirst Federal Credit Union, Members 1st Federal Credit Union, ORNL Federal Credit Union, and Truliant Federal Credit Union, led the funding round. Zest AI plans to use this investment to expand its automation efforts and increase the use of its lending intelligence platform, LuLu. The company's machine learning models help lenders achieve a 25% increase in approvals and a 20% reduction in defaults. Zest AI CEO Mike de Vere noted strong demand for their solutions due to regulatory support for AI and increased competition.

Comparing AI Cloud Providers Nebius Group and CoreWeave

This article compares Nebius Group and CoreWeave as potential investments in the artificial intelligence sector. Both companies provide cloud-based GPU infrastructure, which is essential for training and running complex AI models. CoreWeave specializes in GPU-accelerated computing, boasting massive GPU capacity and a strong partnership with NVIDIA. Nebius Group, originally an IT outsourcing company, is expanding its offerings to include GPU cloud services and AI development tools across global data centers. For investors focused purely on AI infrastructure, CoreWeave's specialized approach and scale make it a strong contender, while Nebius Group offers a more diversified business model.

Nebius Group and CoreWeave Compete in AI Cloud

Nebius Group and CoreWeave are two companies providing cloud-based GPUs for artificial intelligence tasks, both backed by investments from Nvidia. Nebius, with a $30 billion market cap, has seen its stock surge 520% since October 2024, while CoreWeave, with a $63 billion market cap, soared 230% since its March IPO. Nebius offers a "full stack" AI infrastructure, including managed services, and has one data center in Finland with several leased and planned locations. CoreWeave focuses on GPU-intensive workloads and operates 33 first-party data centers across the US and Europe. Both companies have significant deals with Microsoft, with Nebius signing a $17.4 billion AI infrastructure deal and CoreWeave generating 70% of its revenue from Microsoft.

Astera Labs Poised for Growth in AI Market

William Blair analyst Sebastien Naji maintained a Buy rating for Astera Labs stock on October 23, citing the company's strong performance. Astera Labs is well-positioned for growth due to increasing demand for AI infrastructure and the industry's shift to 800 GE in the Ethernet AEC sector. The company's strategy of focusing on silicon modules rather than complete cables allows it to scale effectively and gain market share. Roth MKM also kept a Buy rating on Astera Labs with a $200.00 price target.

Chinese AI Bots Beat ChatGPT in Crypto Trading

Two Chinese artificial intelligence chatbots, QWEN3 MAX and DeepSeek, outperformed OpenAI's ChatGPT in a cryptocurrency trading competition that ended on Tuesday. QWEN3 MAX was the only bot to make a profit, earning $751 with a 7.5% return, while ChatGPT lost 57% of its initial $10,000 investment. This surprising result highlights that even highly funded AI models like ChatGPT may lack real-time crypto trading capabilities. QWEN3's estimated training cost was significantly lower than OpenAI's $5.7 billion spent on research and development in the first half of 2025. The Alpha Arena competition began on October 18 with trades executed on the Hyperliquid decentralized exchange.

AI Fuels Growth in Cybersecurity Stocks

The cybersecurity industry is experiencing a significant boom, largely driven by the increasing use of Artificial Intelligence. As cyberattacks become more complex, companies are turning to AI-powered solutions for better protection. This trend positions cybersecurity firms with strong AI capabilities for substantial long-term growth. AI helps by analyzing vast amounts of data, detecting unusual activities, predicting threats, and automating responses. Companies that effectively use AI in their security offerings are seeing increased market share and revenue. The ongoing digital transformation across all industries further highlights the critical need for advanced AI-driven cybersecurity solutions.

Palantir Stock Falls Amid Valuation Concerns CEO Calls Manipulation

Palantir stock dropped 7% despite reporting stronger-than-expected third-quarter earnings, as Wall Street analysts raised concerns about its high valuation. CEO Alex Karp criticized short sellers, calling their positions "market manipulation" during a CNBC interview, stating the company delivered excellent results. Palantir's forward price-to-earnings ratio is 254, significantly higher than Nvidia's 35, leading many analysts to question its current stock price. While some analysts like Wedbush remained bullish, others from Jefferies, Mizuho, and RBC expressed caution regarding the company's valuation despite its strong performance in AI commercialization.

SoundHound AI Stock Drops After Insider Share Sales

SoundHound AI Inc. stock (NASDAQ: SOUN) fell by 8.42% on November 4, 2025, following significant share sales by company insiders. Chief Technology Officer Timothy Stonehocker sold 70,524 shares worth $1.4 million, and Majid Emami also sold 41,167 shares. The company reported revenue of $84.69 million but struggles with profitability, showing a negative profit margin and an EBIT margin of -175.3%. These insider transactions have raised investor concerns about the company's future performance and its high valuation metrics, including a negative EPS of -$0.19 and a price-to-sales ratio of 54.65.

Palantir Stock Plunges Despite Strong Earnings Due to Valuation

Palantir's stock tumbled on Tuesday, despite the AI software company reporting strong quarterly results that exceeded analyst expectations. The decline was driven by concerns that the stock is overvalued after its significant rally this year, which saw shares rise about 150%. Analysts from Jefferies called the valuation "extreme" and set a price target of $70, while William Blair and UBS also expressed concerns. However, longtime bulls at Wedbush, led by Dan Ives, remained positive, calling the results "eye popping" and maintaining a $230 price target. Bank of America also reiterated a Buy rating with a price objective of $255.

Top AI Stocks NVIDIA and Microsoft for Long Term

Artificial intelligence is rapidly changing industries, and two companies stand out as strong long-term investments in this field: NVIDIA and Microsoft. NVIDIA dominates the AI sector with its powerful graphics processing units (GPUs), which are crucial for developing and running AI models. The company has seen exceptional earnings, especially from its data center segment, and benefits from its strong software platforms like CUDA. Microsoft is deeply integrating AI across its products, including its Azure cloud platform and popular software like Microsoft 365 Copilot, and has a significant investment in OpenAI, the creator of ChatGPT. Both companies are well-positioned for future growth due to their continuous investment in AI research and strategic partnerships.

Sources

• Global shares trade lower after AI darlings prop up Wall Street
• Wall Street sinks under the weight of its own expectations as Big Tech’s AI high fades and Fed doubts creep in
• Asian shares trade mixed after AI darlings prop up Wall Street
• Zest AI Secures Strategic Investment from Customers in Oversubscribed Round
• Zest AI Secures Strategic Investment for AI-Powered Lending Solutions
• Better Artificial Intelligence Stock: Nebius Group vs. CoreWeave
• Better Artificial Intelligence Stock: Nebius Group vs. CoreWeave
• Astera Labs: Positioned for Growth with AI Demand and Innovative Product Line
• China’s budget AI bots smash ChatGPT in crypto trading face-off
• AI-Driven Security Boom Puts These 4 Cybersecurity Stocks in Spotlight
• Palantir stock drops 7% on valuation concerns as CEO Karp rips short-seller 'market manipulation'
• SoundHound AI Inc. Faces Sell-Off Amid Insider Trading Moves
• Here's What Wall Street Analysts Are Saying About Palantir's Earnings as Its Stock Plunges
• 2 Artificial Intelligence (AI) Stocks You Can Buy and Hold for the Next Decade