May 1, 2025

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Vertex Invests in Kintsugi, Meta Reports Strong Q1, NVIDIA Stock Rises

Recent developments in the tech industry have highlighted the growing importance of artificial intelligence (AI). Vertex Inc has invested $15 million in Kintsugi, an AI-native startup that automates sales tax compliance for small and mid-size businesses. Meanwhile, Meta Platforms has reported better-than-expected first-quarter results, with a significant investment in AI expected to drive growth. NVIDIA Corporation's stock has risen in response to Meta's increased capital expenditures budget for 2025, which is expected to support its AI efforts. Despite recent struggles, AI stocks such as NVIDIA and Digital Realty Trust are considered promising long-term investment opportunities. Other companies, including Supio and Rogo, have raised significant funding to develop AI-powered platforms for legal analysis and investment banking. As the AI trade faces volatility, investors remain confident in its transformative potential, with global governments and hyperscalers investing in AI projects.

Key Takeaways

  • Vertex Inc has invested $15 million in Kintsugi, an AI-native startup for sales tax compliance.
  • Meta Platforms has reported better-than-expected first-quarter results, with a significant investment in AI.
  • NVIDIA Corporation's stock has risen in response to Meta's increased capital expenditures budget for 2025.
  • AI stocks such as NVIDIA and Digital Realty Trust are considered promising long-term investment opportunities.
  • Supio has raised $60 million to develop an AI-powered platform for legal analysis.
  • Rogo has raised $50 million to build an AI-powered investment banker.
  • Global governments and hyperscalers are investing in AI projects despite current volatility.
  • Meta Platforms expects a 30.1% annual revenue growth rate over the next three years, driven by AI investment.
  • NVIDIA has partnered with Trend Micro to integrate its technology into Trend Micro's AI-driven threat detection platform.
  • Investors remain confident in the transformative potential of AI despite current market volatility.

Vertex Invests in AI Tax Compliance Startup Kintsugi

Vertex Inc has invested $15 million in Kintsugi, an AI-native startup that automates sales tax compliance for small and mid-size businesses. The investment gives Vertex a 10% ownership interest in Kintsugi and includes IP sharing and a commercial arrangement. Kintsugi's AI-driven platform helps businesses with tax calculations, filings, and compliance monitoring across multiple jurisdictions. Vertex plans to use Kintsugi's IP to advance its AI roadmap and deliver new innovations for its customers. The partnership aims to make tax compliance painless and accessible for growing businesses.

Vertex Takes Stake in AI Tax Compliance Startup Kintsugi

Vertex Inc has announced a strategic investment in Kintsugi, an AI-native startup that automates sales tax compliance for small and mid-size businesses. The investment includes a $15 million minority investment and a 10% ownership interest in Kintsugi. Kintsugi's AI-driven platform helps businesses with tax calculations, filings, and compliance monitoring across multiple jurisdictions. The partnership aims to make tax compliance painless and accessible for growing businesses. Vertex plans to use Kintsugi's IP to advance its AI roadmap and deliver new innovations for its customers.

Meta Platforms Beats Q1 Estimates

Meta Platforms reported better-than-expected first-quarter results, with earnings of $6.43 per share on revenue of $42.31 billion. The company's guidance for the second quarter was also upbeat, with expected revenue in the range of $42.5 billion to $45.5 billion. Meta's full-year capital expenditures are expected to be in the range of $64 billion to $72 billion, up from its prior outlook. The company's investment in artificial intelligence is expected to drive growth, with a 30.1% annual revenue growth rate predicted over the next three years.

NVIDIA Stock Rises on Meta's AI Capex Boost

NVIDIA Corporation's stock gained 1.8% in after-hours trading after Meta Platforms increased its capital expenditures budget for 2025. Meta's updated outlook reflects additional data center investments to support its artificial intelligence efforts. The news comes amid concerns about a possible slowdown in AI capex, but Meta's investment is expected to drive growth in the AI sector. NVIDIA's stock rise is a positive sign for the AI industry, which has been experiencing volatility in recent months.

2 AI Stocks to Buy and Hold

Despite recent struggles, artificial intelligence stocks remain a promising long-term investment opportunity. Two AI stocks that are down more than 15% this year are Nvidia and Digital Realty Trust. Nvidia is a dominant player in the AI chip market, while Digital Realty Trust is an AI infrastructure play with a strong track record of growth. Both stocks have the potential for long-term growth and are worth considering for investors who are willing to hold on for the long haul.

NVIDIA Partners with Trend Micro on AI Security

NVIDIA has partnered with Trend Micro to integrate its technology into Trend Micro's AI-driven threat detection platform. The partnership aims to enhance NVIDIA's AI credentials and complement its overall positive market sentiment. NVIDIA's stock price has risen 12% in recent weeks, aligning with broader tech sector gains. The company's involvement in collaborations like Trend Micro's is expected to drive growth and reinforce its position in the AI market.

3 AI Stocks Down 15% This Year

The Nasdaq Composite has experienced a decline in recent months, and AI stocks have been particularly hard hit. Three AI stocks that are down more than 15% this year are Nvidia, Arista Networks, and Broadcom. Despite concerns about slowing growth, these stocks may be worth considering for investors who are willing to hold on for the long haul. Nvidia is a dominant player in the AI chip market, while Arista Networks and Broadcom are also well-positioned for long-term growth.

Supio Raises $60M for AI-Powered Legal Analysis

Supio, a startup that uses AI to automate data collection and analysis for legal teams, has raised $60 million in funding. The company plans to use the funding to expand its Seattle HQ and open a new office, and to grow its 100-person staff. Supio's AI-powered platform connects to law firms' existing file systems to assist with case management and provides a deep understanding of complex, unstructured data. The company has experienced rapid growth, with annual recurring revenue growing 4x in recent years.

Rogo Raises $50M for AI-Powered Investment Banker

Rogo, a tech startup, has raised $50 million to build an AI-powered Wall Street analyst. The company plans to use the funding to boost investment in financial reasoning models and autonomous AI agents. Rogo's AI-powered platform helps clients analyze market data and identify opportunities with unprecedented speed and precision. The company has already seen results, with clients such as Nomura using its platform to analyze market data and identify opportunities.

Volatility Tests the AI Trade

The AI trade is being tested by volatility, with bellwethers of the artificial intelligence trade down big so far in 2025. Despite this, investors remain confident in the transformative potential of AI. Deepwater co-founder Gene Munster says that the current volatility is a test of conviction, but he remains confident that AI will drive growth in the long term. The broader macroeconomic picture is expected to improve over the next 12 months, with global governments and hyperscalers investing in AI projects.

Sources

AI Artificial Intelligence Vertex Kintsugi Tax Compliance Meta Platforms