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Dear Fellow Investor,
For months, investors worried that artificial intelligence (AI) spending was hitting a ceiling. Fears over tightening budgets, slowing capital expenditures, and inflationary pressures had many wondering if the AI boom was losing steam. But recent updates from tech giants Microsoft and Meta paint a very different picture — one that should reignite bullishness in AI-focused names.
According to Citi analyst Christopher Danely, those fears were completely overblown. “Contrary to investors’ worries of slowing capex, it appears that spending for AI continues to be unabated,” Danely said, as quoted by CNBC. “AI infrastructure buildouts remain key priorities for hyperscalers with the companies’ willingness to absorb the costs of tariffs. We view this as positive for AI-exposed stocks.”
In other words, the AI arms race is still in full swing and big tech is betting billions on the future.
Microsoft and Meta Are Spending Big
Microsoft recently revealed that its capital expenditures hit $16.75 billion in the third quarter. Even more eye-catching, the company plans to spend a staggering $80 billion in 2025 to continue expanding its cloud and AI infrastructure.
Meanwhile, Meta Platforms also boosted its 2025 capex guidance. The company now expects to spend between $64 billion and $72 billion, up from its earlier range of $60 billion to $65 billion. The adjustment reflects higher infrastructure hardware costs as the company ramps up its AI data center footprint across the globe.
Meta’s CFO Susan Li noted, “Even with the capacity that we’re bringing online in 2025, we are having a hard time meeting the demand that teams have for compute resources across the company.”
That’s not a sign of slowing growth — it’s a sign of overwhelming demand for AI compute power.
This is a green light for AI-focused investors. It signals that not only is AI investment continuing, it’s accelerating. The spending spree from hyperscalers like Microsoft and Meta is a massive tailwind for companies that power the AI revolution — especially chipmakers and infrastructure providers.
Company: Nvidia (SYM: NVDA)
If you’re going to own just one AI stock, it’s hard to argue against Nvidia (SYM: NVDA).
After a recent dip, Nvidia is trading around $135.40. But with AI spending ramping up and major customers like Microsoft and Meta desperate for more compute power, there’s a strong case for a retest of the $150 level — and potentially much higher in 2025.
Helping to drive the bullish narrative, Microsoft CEO Satya Nadella said during the company’s latest earnings call:
“We continue to expand our data center capacity… We continue to optimize and drive efficiencies across every layer, from DC [data-center] design to hardware and silicon to system software to model optimization, all towards lowering costs and increasing performance.”
This speaks directly to Nvidia’s strength. The company’s GPUs remain the gold standard for AI workloads, training large language models, and enabling high-performance cloud infrastructure.
Meta is also leaning heavily on Nvidia’s chips. With CFO Susan Li saying demand for compute resources is exceeding expectations, Nvidia is in a prime position to benefit.
Bottom line: Nvidia remains the backbone of the AI revolution — and its long-term growth runway is nowhere near over.
Edge on the Street
Huge News Could Be Set To Drive This AI Startup Sky High
A medical AI startup seems to be on a classic tech stock path to major-league success. It's run by trailblazers. It's trimmed losses to the bone. It aggressively entered a $95-billion medical market. So, it looks poised for its first profitable year. This should be a green-light moment while their share price is ultra-low.
The Timing May Never Be Better.
Here's Where To Find The Whole Story
Company: Advanced Micro Devices (SYM: AMD)
AMD has been a strong contender in the AI and data center race, and recent developments suggest its best days could still be ahead.
Susquehanna analysts just gave the stock a fresh price target of $135, citing improving fundamentals and continued traction in AI. That’s a solid upside from current levels, especially considering the stock has been oversold in recent weeks.
Cathie Wood’s Ark Invest is also betting on AMD’s future. The fund recently scooped up 24,800 shares of the company, worth just over $2.14 million.
Financially, AMD is firing on all cylinders. In its first quarter of 2025, the company reported:
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EPS of 96 cents, beating expectations by three cents
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Revenue of $7.44 billion, up 36% year-over-year and ahead of consensus by $320 million
Looking ahead, AMD expects second-quarter revenue to come in around $7.4 billion, which is above Wall Street’s expectations.
Dr. Lisa Su, AMD Chair and CEO, was optimistic about the future:
“We delivered an outstanding start to 2025 as year-over-year growth accelerated for the fourth consecutive quarter driven by strength in our core businesses and expanding data center and AI momentum.”
“Despite the dynamic macro and regulatory environment, our first quarter results and second quarter outlook highlight the strength of our differentiated product portfolio and consistent execution positioning us well for strong growth in 2025.”
AMD may not get as much AI buzz as Nvidia, but it’s proving to be a solid, fundamentally sound player in this space.
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8+ Possible Stocks for AI Rally 2.0
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CHAT is the world’s first ETF focused specifically on generative AI. With an expense ratio of 0.75%, the fund offers diversified exposure to companies that are leading the charge in AI innovation.
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This ETF is a great way to gain exposure to both hardware and software sides of the AI story, including cloud infrastructure, big data, and machine learning applications.
As AI continues to reshape industries from healthcare to finance to cybersecurity, the companies in CHAT are poised to benefit — and so are investors who get in early.
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Are there any other AI stocks you think are worth buying right now? What about other stocks in the broader tech market? Hit "reply" to this email and let us know your thoughts!
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