🌟 Editor's Note
Welcome to another exciting day in the vibrant tech ecosystem! i’ve got a packed newsletter full of insights, events, and analysis.
🚀 Stay Inspired
Alibaba’s AI Bet Meets a Roadblock
China has ordered tech giants, including Alibaba, to halt NVIDIA chip purchases—a blow to its cloud and AI push.
📊 Fair Value Range: US$106 – US$785 (Simply Wall St community)
💰 New Capital: US$3.17B convertible bond for tech investments
🚀 2028 Targets: CN¥1.26T revenue, CN¥171B earnings
The risk? Heavy AI and cloud spending may squeeze margins if hardware restrictions slow progress. For upside, investors need to believe Alibaba can build sustainable new revenue streams despite shifting regulations.
Microsoft Doubles Down on AI Infrastructure
Microsoft just signed a US$6.2B, five-year deal with Nscale to secure advanced European AI compute capacity—part of a wave of multi-billion-dollar AI partnerships announced across Europe and the UK.
⚡ CapEx Heavy: Growth depends on aggressive infrastructure spending
☁️ Catalyst: AI-driven Azure revenue acceleration
🛍️ New Ventures: “Curated for You” shoppable fashion via Copilot
The upside? Microsoft cements leadership in global cloud and AI. The risk? If AI adoption slows, massive spending could weigh on margins.
Meta Slips Despite Strong AI Optimism
Meta Platforms’ shares dipped 1.7%, reflecting broader tech caution, even as analysts remain bullish on the company’s AI-driven growth potential. Barclays and William Blair reaffirmed Buy ratings, forecasting $25B in incremental ad revenue from WhatsApp and Threads by 2027 and pointing to 25% upside over the next year.
Key growth drivers include Meta’s AI tools and smart glasses innovation, with consensus price targets near $900.
Separately, Meta launched a super PAC to shape state tech policy and push back against strict AI and technology regulations, underscoring its active role in regulatory debates.
Breaking
Meta’s stock is now slowly pulling up from the red.
Stay tuned— the next issue drops tomorrow!
Till next time,