The AI boom is generating extraordinary profits, but investors are beginning to ask a difficult question: how much money will the industry ultimately make from the billions being poured into data centres? The latest earnings projections highlight both the opportunity and the risk. Nvidia and Micron are expected to contribute a substantial share of S&P 500 earnings growth, with Micron’s quarterly profit reportedly surging 1,078% year over year and analysts forecasting approximately 90% earnings growth for Nvidia. Yet the market’s reaction to AI spending plans suggests that strong earnings alone may no longer be enough. Investors also want evidence that today’s infrastructure investments will generate sustainable returns. Here are three developments worth watching. 1. The rest of the mar

$Grab Holdings(GRAB)$ Down 45% on Grab 😬 A tough hold, but hoping the business fundamentals improve and the stock can recover over time.

$CrowdStrike Holdings, Inc.(CRWD)$   — The Cybersecurity Dip Gets Interesting Cybersecurity has been one of the strongest themes in the market, but Friday brought a reminder that even leaders can get hit hard. $CRWD fell nearly 3% on September 25, while the broader market was pressured by elevated Treasury yields and oil prices.  What makes CrowdStrike interesting is the bigger trend rather than one day’s price action. Cyber threats aren’t going away. As companies add cloud infrastructure, AI systems and connected workloads, the amount of digital infrastructure that needs protection keeps expanding. The question for investors is whether cybersecurity spending can continue growing fast enough to justify premium valuations. Why I’m w

This isn’t really a streaming story anymore. It’s a consolidation story. Paramount Skydance is moving ahead with its acquisition of Warner Bros. Discovery, with the company now seeking another $7.5B in debt financing as part of the deal. The combined company could carry roughly $80B of debt after closing.  And that’s where things get interesting. Warner Bros. Discovery brings together huge pieces of the entertainment ecosystem — Warner Bros., HBO, CNN, Discovery and Max. Paramount brings Paramount Pictures, CBS and its own streaming business. Put them together and suddenly one company controls a much larger collection of studios, TV networks, streaming platforms and content libraries. But bigger doesn’t automatically mean better. 💰 The debt is enormous. 🎬 The studios still have to produce

The AI trade may be entering a new phase. While semiconductor stocks struggled last week, cybersecurity and enterprise software stocks staged a strong rebound. The shift suggests investors are becoming more selective about where they expect AI to generate the next wave of returns. According to Dow Jones, CrowdStrike (CRWD) and Palo Alto Networks (PANW) each gained more than 10% during a volatile week. Meanwhile, the iShares Expanded Tech-Software Sector ETF rose 6%, and the First Trust NASDAQ Cybersecurity ETF gained 7%. The iShares Semiconductor ETF fell 3%. This is more than a simple sector rotation. It reflects changing expectations about how AI will reshape the technology industry. 🔐 1. Cybersecurity could become an AI beneficiary As companies deploy increasingly capable AI agents, sec

Nvidia plans to invest $3 billion in Meta’s equity offering as the two companies expand their AI partnership, including work to improve training and inference performance for Meta’s Muse models. The deal comes as Meta pursues an ambitious funding plan to support its AI expansion. The company has launched approximately $35 billion in public stock offerings and plans a separate share-sale programme of up to $60 billion, although the timing and terms of the future programme have not been finalised. Why is Nvidia investing in its own customer? 1. A deeper relationship with Meta Meta is expanding its AI infrastructure and developing new AI models and assistants. Nvidia supplies the computing platforms, networking and other technology needed to support these workloads. The expanded partnership c

Everyone is watching Nvidia. Then came the memory trade. Now another part of the AI infrastructure chain is starting to get attention: Networking. $Celestica(CLS)$   — sits in a part of the market that doesn’t get nearly as much attention as GPUs or HBM, but increasingly matters as AI data centres scale. The problem is simple: More AI = more data moving between servers. And eventually, computing power isn’t the only bottleneck. Bandwidth becomes the bottleneck. Fresh analyst coverage is highlighting this exact theme, with networking and optical hardware increasingly viewed as critical infrastructure for next-generation AI systems. Celestica is also being linked to programs involving Alphabet’s custom TPUs, OpenAI’s next-generation ch

Not every growth opportunity comes from technology. Sometimes, it comes from a consumer brand trying to win space on supermarket shelves. Today’s stock to watch: $Celsius Holdings, Inc.(CELH)$   Celsius makes energy drinks marketed around fitness and active lifestyles. Its challenge is to turn brand recognition into sustainable sales growth while competing against established giants such as Red Bull and Monster Beverage. 🥤 1. A growing category Energy drinks have become a mainstream consumer product. Celsius has an opportunity to attract customers looking for alternatives to traditional energy drink brands. 📈 2. Distribution is the key Getting more shelf space and reaching more retailers can expand sales. But investors need to watch

$Bloom Energy Corp(BE)$ just jumped 8.27% — but the bigger story may be what happens AFTER the GPUs arrive. Everyone has been focused on chips, servers and data centres. But there is another bottleneck becoming increasingly difficult to ignore: ⚡ Power. Bloom Energy is positioning its fuel-cell technology as an onsite power solution for AI data centres, helping operators avoid some of the delays involved in connecting massive new facilities to the traditional grid. And the timing is interesting. Bloom recently unveiled an 800V DC-native power architecture designed around next-generation AI infrastructure. The company says its system can reduce non-compute capital costs for a 1GW AI data centre by $3.6 billion, although those figures are Bloom’s own

The AI investment race is entering another important phase. Microsoft and Alphabet are set to report earnings after Wednesday’s market close, and investors will be looking beyond headline revenue and earnings per share. The bigger question is whether the enormous sums being poured into AI infrastructure are translating into sustainable revenue growth, stronger margins and healthy cash flow. Ahead of the reports, Alphabet gained 0.84% on Tuesday. Consensus estimates put Microsoft at $4.82 in earnings per share on $92.49 billion in revenue, while Alphabet is expected to deliver $3.11 per share on $132.02 billion in revenue. These are substantial numbers, but the market’s reaction will depend on whether both companies can meet elevated expectations and demonstrate that their AI investments ar