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Yahoo
a day ago
- Business
- Yahoo
Could The Data Center Bubble Be About To Pop--Lux Capital Heavyweight Sees Warning Signs
Data centers have been one of the most pleasant surprises in the real estate sector, generating strong returns for real estate investment trust investors for the last several years. The massive facilities are mission-critical pieces of AI infrastructure, which explains why many of the world's biggest tech companies have multi-billion-dollar data center investments. However, Lux Capital partner Josh Wolfe is concerned that the data center sector is showing signs of a bubble ready to pop. Data center spending is on pace to exceed $405 billion in 2025, which is a 23% increase over 2024, according to This sector used to be dominated by data center REITs like Equinix (NASDAQ: EQIX) and Digital Realty Trust (NYSE: DLR). However, they now face competition from tech titans like Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), and Meta (NASDAQ: META), who would rather own and operate facilities than rent them in perpetuity. Don't Miss: GoSun's breakthrough rooftop EV charger already has 2,000+ units reserved — become an investor in this $41.3M clean energy brand today. Invest early in CancerVax's breakthrough tech aiming to disrupt a $231B market. Back a bold new approach to cancer treatment with high-growth potential. Runaway data center construction drives AI's ever-expanding capabilities, but Wolfe also believes it may be creating "irrational" demand. In May, he told the Axios AI summit that he sees parallels to tech booms of the past. Cloud computing and fiber optic network investments created lots of millionaires in the 1990s and early 2000s. Wolfe remembers that many of those investors were left holding the bag when production outpaced demand. 'I think that you're going to have the same phenomenon now,' said Wolfe. He noted the potential danger of groupthink in the tech sector, where building data centers seems prudent for individual companies. However, he fears that multiple companies building hyperscale data centers simultaneously, 'collectively becomes irrational.' 'It will not necessarily persist,' he warned. Wolfe also said thinks the potential fallout from the bubble popping extends to other sectors. Data centers consume incredible amounts of power, which has driven rapid growth in the nuclear energy sector. 'One take that is related to that is the demands for energy, which is presumed that, because you need all these data centers," Wolfe said. "Then you need small modular reactors, and so you're getting speculative capital that's going into the energy provision therein.' Trending: This Jeff Bezos-backed startup will allow you to become a landlord in just 10 minutes, with minimum investments as low as $100. Wolfe's warning is reminiscent of then- Federal Reserve Chair Alan Greenspan's worry over "irrational exuberance" in the marketplace. It's a cycle that has played itself out for almost as long as people have been investing. A sector gets hot, which causes more investor capital to flow in until suddenly, the sector is oversaturated. During these hot cycles, money continues flowing in long after the best deals have been snapped up. When overheated markets correct, what looked like a "can't miss" investment a few months ago suddenly becomes a white elephant. This causes a massive outflow of capital as all the investors head for the exit door at the same time. Wolfe has seen these cycles come and go throughout his career. "I think that that whole (data center) thing is going to end in disaster, mostly because, as clichéd as it is, history doesn't repeat. It rhymes,' he said at the Axios AI Summit. See Next: $100k in assets? Maximize your retirement and cut down on taxes: Schedule your free call with a financial advisor to start your financial journey – no cost, no obligation. Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here's how you can earn passive income with just $100. Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Could The Data Center Bubble Be About To Pop--Lux Capital Heavyweight Sees Warning Signs originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
a day ago
- Business
- Yahoo
10 Artificial Intelligence (AI) Companies to Buy Now and Hold Forever
Artificial intelligence has become an increasingly integral part of our daily lives, and it's not expected to ebb any time soon. Nvidia and Broadcom are examples of semiconductor stocks that provide strong exposure to artificial intelligence. Microsoft Azure and Amazon Web Services are two cloud computing platforms that support artificial intelligence computing. 10 stocks we like better than Nvidia › From the growth of self-driving cars to the explosion in generative artificial intelligence (AI) capabilities, it's clear that AI is going to become increasingly integrated in our lives. Recognizing this fact, investors should keep tabs on leading AI companies since these stocks have the potential to provide sizable returns in the years to come. Nvidia (NASDAQ: NVDA) is a semiconductor stalwart that pioneered the development of the graphics processing unit (GPU). Invaluable for AI applications, GPUs are also critical components found in data centers, where AI computing occurs. The company consistently generates strong free cash flow -- just one of many reasons why Nvidia stock is a must-consider for any investor looking to gain AI exposure. The parent company of numerous businesses, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) incorporates its large language model (LLM) chatbot, Gemini, into offerings like Google Search and Android phones. Other companies also integrate Gemini into their products, like visual messaging provider Snap and strategy and consulting leader Accenture. Besides Gemini, Alphabet provides extensive AI exposure through its cloud computing service, Google Cloud. Expanding beyond the software offerings that initially made it famous, Microsoft (NASDAQ: MSFT) offers AI exposure through its generative AI chatbot, Copilot, found in several Microsoft products like Microsoft 365. Investors also gain AI exposure through the company's cloud computing platform, Microsoft Azure. Microsoft also provides indirect AI exposure as the company is a major investor in OpenAI, the owner of ChatGPT. Meta Platforms (NASDAQ: META) may be most recognizable as the parent company of Facebook, but the company emerged as a leader in AI tools after developing Meta AI, an AI-powered assistant that's integrated in other Meta apps and built on the Llama LLM. In June 2025, Meta broadened its AI reach with a $14.3 billion investment in Scale AI, a company pursuing artificial general intelligence. Like Nvidia, Broadcom (NASDAQ: AVGO) is another leading semiconductor stock that has close ties to the AI industry. Data center growth is contributing to strong demand for Broadcom's AI accelerators. For Q2 2025, Broadcom reported over $4.4 billion in AI semiconductor revenue, a 46% year-over-year increase. AI networking represented 40% of AI revenue, a 70% year-over-year gain. Once upon a time, Amazon (NASDAQ: AMZN) was merely a bookseller. Today, however, it has a robust cloud computing business. Launched almost 20 years ago, Amazon Web Services has emerged as a premier cloud computing option, providing the foundation for companies to develop their own AI resources as well as AI services and tools like Amazon Bedrock and Amazon SageMaker. At the end of 2024, AWS achieved a $115 annualized revenue run rate. For context, Amazon reported total revenue of $638 billion for 2024. Considering its scale and its dedication to innovation, Amazon is sure to remain a premier AI force for years to come. From assisting customers with data integration, to security and compliance, to healthcare advances, to supporting the militaries of the U.S. and allies, software company Palantir Technologies (NASDAQ: PLTR) developed a sophisticated platform for analyzing large datasets. In strong financial health, Palantir is consistently profitable and ended the first quarter 2025 with $5.4 billion in cash and cash equivalents with no debt. Plus, it routinely generates strong free cash flow. With its Dedicated IC Foundry business model, Taiwan Semiconductor Manufacturing (NYSE: TSM) produces semiconductors for customers instead of original semiconductors for itself. Nvidia, for example, is a Taiwan Semiconductor customer, turning to it for help in production of the Blackwell GPU, which is used in AI applications. Illustrating its strong exposure to AI, Taiwan Semiconductor stated that 2024 revenue from AI accelerators represented "close to mid-teens percent" of its total revenue. Most recognize Tesla (NASDAQ: TSLA) for its electric vehicles (EVs) but its leadership in AI warrants recognition. For one, the company's EVs have sophisticated autonomous driving capability -- capability that's only expected to increase -- and it's making steady progress in advancing its robotaxi business. Tesla reported about $5 billion in 2024 AI-related capital expenditures, and it expects about the same in 2025. Considering Elon Musk's enthusiasm for AI, it would be unsurprising if Musk moves toward a Tesla acquisition of his AI start-up, xAI. Providing infrastructure for AI computing, CoreWeave (NASDAQ: CRWV) developed a cloud platform to support AI's high computing demands. The allure of its technology is highlighted by its recent $11.9 billion deal with OpenAI to develop AI infrastructure. CoreWeave is in rapid growth mode. In Q1 2025, it reported revenue of $982 million, a year-over-year increase of 420% resulting from high demand for the company's cloud platform. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $713,547!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $966,931!* Now, it's worth noting Stock Advisor's total average return is 1,062% — a market-crushing outperformance compared to 177% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Accenture Plc, Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, Palantir Technologies, Taiwan Semiconductor Manufacturing, and Tesla. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 10 Artificial Intelligence (AI) Companies to Buy Now and Hold Forever was originally published by The Motley Fool 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
Globe and Mail
3 days ago
- Business
- Globe and Mail
Oracle vs. Intuit: Which Enterprise Software Giant Should You Bet On?
Two enterprise software giants are commanding investor attention as artificial intelligence reshapes the business solutions landscape. Oracle ORCL, the database and cloud infrastructure stalwart, and Intuit INTU, the financial technology platform behind TurboTax and QuickBooks, represent different approaches to serving enterprise and small-to-medium business markets. Both companies have demonstrated strong financial performance and are integrating AI capabilities across their platforms to drive growth. While Oracle focuses on large enterprise customers with comprehensive cloud infrastructure and database solutions, Intuit specializes in financial software for consumers and small businesses, leveraging its data-rich platform to deliver AI-powered experiences. Both companies are experiencing robust demand for their AI-enhanced offerings, with Oracle's cloud infrastructure seeing massive uptake from AI workloads and Intuit expanding its done-for-you AI agents across tax preparation and business management applications. Let's delve deep and closely compare the fundamentals of the two stocks to determine which one is a better investment now. The Case for ORCL Stock Oracle's transformation into a cloud-first company continues gaining momentum, with the company reporting impressive growth metrics across its infrastructure and applications segments. The company's fourth-quarter results showed total cloud revenues growing 27% to $6.7 billion, while infrastructure-as-a-service revenues surged 52% to $3 billion. Oracle's remaining performance obligations reached $138 billion, representing a 41% increase year over year, providing strong revenue visibility. The company's competitive advantage lies in its differentiated cloud infrastructure designed specifically for enterprise workloads. Oracle's multi-cloud strategy, allowing customers to run Oracle databases across various cloud platforms, including Azure, Google Cloud, and AWS, addresses a critical market need for flexibility. This approach is driving significant database migration to the cloud, with Oracle 23 AI serving as an AI data platform that enables enterprises to leverage their proprietary data with popular large language models. However, Oracle faces challenges in scaling its infrastructure to meet astronomical demand. Management acknowledged having to turn away customers due to capacity constraints, and the company plans to increase capital expenditures to more than $25 billion in fiscal 2026. While this represents a significant investment opportunity, it also pressures near-term cash flows and margins. Additionally, Oracle operates in an intensely competitive cloud infrastructure market dominated by Amazon Web Services, Microsoft Azure, and Google Cloud, requiring continuous innovation and substantial capital allocation to maintain its market position. The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $6.71 per share, up 1.1% over the past 30 days. Find the latest earnings estimates and surprises on Zacks Earnings Calendar. The Case for INTU Stock Intuit represents a compelling growth story fueled by its AI-driven transformation of financial software solutions. The company's strategic focus on serving the entire spectrum from consumers to mid-market businesses through an integrated platform creates multiple expansion opportunities. Recent quarterly results demonstrated this momentum, with revenue growing 15.1% and the company raising full-year guidance based on strong performance across all segments. The company's Generative AI Operating System provides a significant competitive moat, enabling breakthrough done-for-you experiences that automate complex tasks for customers. Intuit's recent partnership with Google Cloud enhances tax preparation capabilities, while its upcoming AI agents for customer management, payments, finance, and accounting promise to revolutionize small business operations. The acquisition of GoCo strengthens Intuit's human capital management offerings, positioning the company as a comprehensive business platform. Intuit's recurring revenue model, with 77% of total revenues coming from subscriptions, provides exceptional business stability and predictability. The company's TurboTax Live segment is experiencing remarkable growth, with customer growth expected at 24% and revenue growth at 47% for the fiscal year. Credit Karma's 31% revenue growth in the third quarter demonstrates successful expansion beyond core tax and accounting services. The mid-market opportunity through Intuit Enterprise Suite represents a substantial growth catalyst, as the company leverages its AI capabilities to serve businesses with $2.5 million to $100 million in annual revenues. This market expansion, combined with the company's strong cash generation and disciplined capital allocation, positions Intuit for sustained double-digit growth. The Zacks Consensus Estimate for fiscal 2025 earnings is pegged at $20.06 per share, up 0.4% over the past 30 days. Valuation and Price Performance Both Oracle and Intuit trade at premium valuations reflecting their strong market positions and growth prospects. Oracle has demonstrated superior stock performance with shares gaining 27.7% year to date, outpacing Intuit's 23% rise and the broader Zacks Computer and Technology sector. ORCL Outperforms INTU, Sector YTD However, Intuit commands a significant valuation premium with a price-to-sales ratio of 10.4x compared to Oracle's 8.89x multiple. Intuit commands an even higher valuation multiple, justified by its predictable subscription revenue model and expanding total addressable market. ORCL vs. INTU: P/S F12M Ratio Conclusion Intuit emerges as the superior investment opportunity for the second half of 2025, offering better upside potential through its comprehensive AI-driven platform strategy, diversified revenue streams, and expanding market opportunity. The company's recurring revenue model provides greater stability, while its focus on serving the underserved small-to-medium business market presents a larger growth runway compared to Oracle's enterprise-focused approach. Intuit's successful integration of AI across tax preparation, accounting, and business management creates multiple monetization opportunities with higher margins than Oracle's capital-intensive infrastructure business. Investors should buy Intuit stock to capitalize on its accelerating growth trajectory, while holding Oracle or waiting for a better entry point, given its substantial capital requirements and competitive pressures in cloud infrastructure. INTU currently sports a Zacks Rank #1 (Strong Buy), whereas ORCL has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. See Our Top Stock to Double (Plus 4 Runners Up) >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Intuit Inc. (INTU): Free Stock Analysis Report
CNA
4 days ago
- Business
- CNA
OVHcloud teams up with Crayon to develop European data infrastructure
-France's OVHcloud, Europe's largest data centre provider, has partnered with Norway's cloud software provider Crayon to develop a sovereign European data infrastructure, with both hardware and software components originating from European companies. The collaboration will enable customers of both companies to access and integrate solutions across more than 45 regions, the companies said in a joint statement.
Yahoo
4 days ago
- Business
- Yahoo
OVHcloud teams up with Crayon to develop European data infrastructure
-France's OVHcloud, Europe's largest data centre provider, has partnered with Norway's cloud software provider Crayon to develop a sovereign European data infrastructure, with both hardware and software components originating from European companies. The collaboration will enable customers of both companies to access and integrate solutions across more than 45 regions, the companies said in a joint statement. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
