Tobias

Kraken, a major crypto exchange, has confidentially filed for a U.S. IPO, following successful debuts by Bullish and Gemini. Founded in 2011, Kraken offers digital asset trading and tokenized equities. A recent $800 million funding round, including investment from Citadel Securities, valued the company at $20 billion. Kraken plans to use the funds for global expansion and enhanced payment services. The IPO’s outcome could indicate future success for other crypto firms seeking public listings amid regulatory scrutiny and market volatility.

At its first investor day since 2022, Block projected mid-teens annual gross profit growth over the next three years, targeting $15.8 billion by 2028. This aims to reassure investors after a 30% stock decline in 2025. Block forecasts adjusted operating income exceeding $4.6B and adjusted EPS reaching $5.50 by 2028. With diversified offerings and AI integration, the company emphasizes operational efficiency, a “rule of 40” investment framework, and a $5 billion share repurchase program.

Yann LeCun, a pioneer of AI, is leaving Meta to launch a startup focused on “world models” – AI systems that understand the physical world. Meta will partner with the new venture, signaling the strategic importance of LeCun’s research. This follows a restructuring of Meta’s AI division and a shift in strategy led by new AI chief, Alexandr Wang. LeCun’s move reflects a divergence in vision from the industry’s focus on large language models, as he champions alternative approaches toward achieving artificial general intelligence.

Nvidia and xAI announced a partnership to build a massive data center in Saudi Arabia, powered by hundreds of thousands of Nvidia GPUs. This project, backed by the Saudi Public Investment Fund through Humain, aims to establish a leading AI infrastructure hub and signifies a deepening technological collaboration. AMD and Qualcomm will also contribute chips. This aligns with Nvidia’s “sovereign AI” vision, where nations develop dedicated AI infrastructure for security and cultural identity.

Palo Alto Networks (PANW) reported strong fiscal Q1 earnings, exceeding expectations with $2.47 billion in revenue and adjusted EPS of 93 cents. The company also announced a $3.35 billion acquisition of Chronosphere, a cloud observability platform, linked to the rise of AI. While revenue grew 16% year-over-year, net income slightly decreased. Despite positive guidance, PANW stock dipped in after-hours trading. Investors are watching increased capital expenditures and the integration of CyberArk and Chronosphere for long-term impacts. Remaining purchase obligations grew, showcasing continued demand.

Nvidia’s potential $100 billion investment in OpenAI is not yet a binding contract, as stated in Nvidia’s recent financial report. While Nvidia emphasizes a strategic partnership and OpenAI highlights Huang’s positive statements, the sheer scale of the investment hinges on specific benchmarks. OpenAI has significant infrastructure spending commitments totaling $1.4 trillion and anticipates high revenue growth, but AMD has secured a signed contract with OpenAI, including a substantial stock warrant, for 6 gigawatts of AMD GPUs. This represents a competitive challenge for Nvidia.

Nvidia’s strong earnings, driven by AI chip demand, boosted Asian chip stocks. SK Hynix and Samsung, key memory suppliers, saw gains along with TSMC, Nvidia’s primary chip manufacturer. Renesas and Tokyo Electron, Nvidia suppliers, also rose. SoftBank, despite selling Nvidia shares, benefited through Arm and AI ventures. Nvidia’s CEO dismissed “AI bubble” concerns, citing a “new computing era,” suggesting long-term industry growth.

Nvidia CEO Jensen Huang dismissed concerns of an AI bubble during the Q3 earnings call, citing GPU adoption across sectors, AI’s role in creating new applications, and the emergence of “agentic AI.” He highlighted Nvidia’s unique position to address these trends with its end-to-end platform. Nvidia’s earnings exceeded expectations, and the company anticipates significant growth, projecting a $500 billion market for AI chips in 2025-2026. While some investors worry about customer debt and concentrated sales, Huang emphasized the revenue-generating potential of Nvidia’s technology for hyperscalers.

Elon Musk and Jensen Huang will address the U.S.-Saudi Investment Forum, highlighting deepening ties in AI. Discussions will focus on AI, computing infrastructure, and digital transformation crucial for Saudi Arabia’s “Vision 2030.” This follows increased Saudi investment in the U.S. and signals opportunities for Tesla and Nvidia in Saudi Arabia’s electric vehicle, energy storage, and AI development initiatives. The collaboration could drive innovation in smart cities and autonomous driving using U.S. technology and Saudi capital.

Adobe plans to acquire Semrush, a search engine marketing platform, for $1.9 billion in cash. This strategic move aims to enhance Adobe’s marketing tools amid the growing influence of AI. Semrush shares surged 74% on the news, while Adobe’s stock dipped 2%. The acquisition, expected to close in the first half of 2026, reflects Adobe’s focus on empowering brands in the AI-driven era. The deal follows Adobe’s abandoned attempt to acquire Figma.