#AI

Lenovo reported record Q3 FY25/26 revenue of $22.2 billion, an 18% year-over-year increase, driven by a 72% surge in AI-related business. All segments saw double-digit growth, with adjusted net income up 36% to $589 million. Strategic restructuring of the Infrastructure Solutions Group is expected to yield significant long-term savings and profitability, as Lenovo leverages its Hybrid AI Advantage.

Threads is launching “Dear Algo,” an AI feature letting users control their feeds via direct prompts. This mirrors chatbot interactions and signals Meta’s deeper AI integration, following recent AI enhancements on Facebook. Meta plans significant AI investment, projecting $115-$135 billion in capital expenditures this year. Threads, a competitor to X, now has 400 million monthly users and is rolling out ads. “Dear Algo” requests, made via public posts, will adjust feeds for three days, initially testing in select countries.

Cisco exceeded analyst expectations for its latest quarterly earnings and revenue, yet its stock saw a dip as its future financial outlook met market forecasts. The company reported strong growth in its core networking segment and highlighted significant AI infrastructure orders, signaling its positioning in the AI revolution. Cisco also announced participation in a major AI project in Saudi Arabia and unveiled new networking hardware incorporating advanced chips. Full-year 2026 targets were set slightly above consensus, indicating anticipated growth.

Uber Eats is integrating an AI-powered assistant to simplify grocery shopping. This feature allows users to build shopping carts using text prompts or handwritten lists, factoring in preferences and item availability. Available with major retailers, it aims to make the process intuitive and helpful, reflecting a broader industry trend of AI adoption to enhance customer experience and streamline operations.

Cloudflare’s stock jumped 10% after reporting strong Q4 results and optimistic guidance. The company’s growth is fueled by the rise of AI, with CEO Matthew Prince explaining how AI agents are creating a “virtuous flywheel” for their networking and security solutions. Cloudflare’s edge infrastructure is positioned as the essential network for these new internet users. Analysts see AI agents directly benefiting Cloudflare’s Workers platform due to the need for low-latency, secure inferencing at the network’s edge.

Barclays reported a robust 12% annual profit surge to £9.1 billion in 2025, raising its 2028 return on tangible equity target to over 14%. This growth is driven by U.S. expansion and significant cost reductions, with artificial intelligence playing a pivotal role in efficiency gains. Barclays is integrating AI into core operations for sustained cost savings, demonstrating a tangible impact of technology on profitability beyond traditional tech firms.

Tony Wu, a founding member of Elon Musk’s xAI, has resigned, adding to a series of departures. This follows backlash over xAI’s Grok AI chatbot and image generator, criticized for creating deepfakes. The company, aiming to rival OpenAI and Google, was recently acquired by Musk’s SpaceX. These departures and the SpaceX acquisition raise questions about xAI’s stability and ethical framework as it navigates intense scrutiny in the AI sector.

UBS has shifted its U.S. tech outlook to neutral, citing “software uncertainty” due to AI advancements and high capital expenditures. Investors are scrutinizing fundamentals and rotating capital away from tech. High spending by cloud providers, especially on AI, creates future uncertainty for companies like the “Magnificent Seven.” Valuations for tech hardware are also seen as full. UBS suggests diversifying beyond U.S. tech into other sectors for better risk management and opportunities.

Alibaba has launched RynnBrain, an AI model for robotics, to enhance robots’ environmental understanding and object recognition. This strategic move places Alibaba in the competitive “physical AI” sector, alongside global giants like Nvidia, Google, and Tesla, all racing to advance AI in robotics. By open-sourcing RynnBrain, Alibaba aims to accelerate its adoption and innovation in this rapidly expanding field.

Tech stocks led market gains, with Nvidia and Broadcom surging on AI enthusiasm. Broadcom benefits from increased AI spending by clients like Alphabet and Meta. Microsoft’s AI narrative faces scrutiny, but long-term conviction remains due to its AI investments and market position. Corning reached record highs as an “AI superstar,” supported by a significant supply deal with Meta for fiber-optic cables crucial for AI infrastructure.