#AI

Starlink, SpaceX’s satellite internet division, is now the company’s primary profit driver, generating $11.39 billion in revenue last year, 61% of total sales. It’s the only profitable segment, posting a $4.42 billion profit, while rocket launches and AI divisions incurred losses. With over 10,200 satellites covering all seven continents, Starlink’s subscriber base has rapidly grown to 10.3 million. Despite intense competition and regulatory/environmental challenges, Starlink fuels SpaceX’s ambitious future projects, including orbital data centers.

Spotify’s 2030 vision, targeting 1 billion subscribers and $100 billion revenue, fueled by a Universal Music Group AI partnership, has boosted its stock. The deal allows AI-generated artist covers and remixes, creating new revenue streams and expanding content. This move, alongside diversification into podcasts and audiobooks, aims to solidify Spotify’s dominance despite industry AI disruptions and recent stock declines.

Nvidia’s stock dip post-earnings defies stellar performance and surging AI chip demand. This disconnect signals investor disbelief, not business weakness. While hyperscalers drove past growth, the future lies in the “AI Clouds, Industrial and Enterprise” (ACIE) segment, encompassing diverse AI players. Nvidia’s vertically integrated platform offers unique advantages, especially in the inference market, where it holds near-monopoly. Despite strong fundamentals and expanding opportunities, the market reaction remains perplexing, suggesting patient investors will ultimately be rewarded.

Workday shares surged after reporting Q1 earnings beat expectations and upgrading its full-year operating margin forecast. The enterprise software company exceeded revenue and adjusted EPS estimates, with subscription revenue growing robustly. A key positive was the increased full-year operating margin outlook to 30.5%, signaling management confidence. Workday’s AI strategy, including its “Sana” agents, is gaining traction with over 4,000 active users and rapidly approaching $500 million in annualized revenue. This performance comes after a challenging period for the stock, with a renewed focus on transformative AI solutions.

Anthropic projects $10.9 billion in Q2 revenue, potentially marking its first profitable quarter and exceeding last year’s total. The AI firm, known for its Claude models, is experiencing hyper-growth and is reportedly seeking funding at a $900 billion valuation. Despite infrastructure demands and competition, Anthropic secured a significant compute deal with SpaceX and is preparing for a 2026 IPO, setting up a major showdown in the AI sector.

SoftBank Group’s stock surged 19.85% on Thursday, driven by Nvidia’s strong earnings and renewed optimism around OpenAI’s potential IPO. SoftBank’s significant stakes in Arm Holdings and OpenAI, both benefiting from the AI boom, propelled its market capitalization by over $35 billion. This rally boosted related Asian semiconductor stocks, reflecting the broad positive sentiment in the AI sector.

Nvidia reported strong first-quarter earnings and unveiled its Vera CPU, signaling a strategic pivot into the burgeoning AI inference market. Targeting a distinct $200 billion segment, Vera aims to complement Nvidia’s GPU dominance, projected to generate $20 billion in revenue this fiscal year. This move addresses cloud providers’ increasing demand for custom silicon to optimize inference workloads, where Nvidia faces growing competition. Despite supply chain constraints, Nvidia is investing heavily to secure production, underscoring the chip’s critical role in its future growth.

Meta is laying off approximately 8,000 employees, about 10% of its workforce, to aggressively pursue AI dominance. This follows previous cuts and redeployment of 7,000 staff into AI roles. While AI teams are prioritized, the restructuring aims for agility and speed. This move mirrors broader tech industry trends focused on AI investment.

In a CNBC interview, Jeff Bezos acknowledged economic disparities in the US but defended the wealthy, arguing against their vilification. He proposed tax relief for low-income earners, believing government overspending, not insufficient revenue, is the fiscal issue. Bezos also expressed optimism about AI’s potential to enhance human capabilities and invigorate the economy, refuting fears of job displacement. He also commented on a “more mature” Donald Trump and denied claims of Amazon currying political favor.

Intuit, facing intensified AI competition and a tech sector downturn, announced significant restructuring, including laying off over 3,000 employees (17% of its workforce) and incurring $300-$340 million in charges. The company aims to reduce complexity and increase velocity for long-term growth, mirroring widespread tech layoffs. Despite a year-to-date stock drop, Intuit raised its 2026 forecast, anticipating adjusted EPS of $23.80-$23.85. The move involves office closures and operational streamlining.