Category: Tech

OpenAI Lands $840 Billion Valuation as Amazon, Nvidia, SoftBank Double Down on AI Arms Race

Posted on by slightbourne@noblecapitalmarkets.com

OpenAI has secured one of the largest private capital raises in history, reaching an $840 billion valuation as Amazon, Nvidia, and SoftBank anchor a massive $110 billion funding round.

The blockbuster raise underscores that, despite 2026’s volatility in technology stocks and growing talk of an AI valuation bubble, capital formation in artificial intelligence remains robust. For investors, the message is clear: the AI infrastructure race is accelerating, not slowing.

According to Reuters, SoftBank committed $30 billion in the round, Nvidia invested $30 billion, and Amazon pledged $50 billion. Additional investors are expected to participate as the financing progresses. The funding comes ahead of OpenAI’s anticipated mega-IPO later this year, with Wall Street expecting further capital raises before a public debut.

Compute Is the New Oil

The capital injection is designed primarily to secure advanced chips and computing infrastructure.

OpenAI said it will deploy Nvidia’s latest Rubin systems, representing five gigawatts of computing capacity — enough energy to power millions of U.S. households. That scale highlights a defining theme of the AI cycle: frontier models now require industrial-level energy and hardware commitments.

For Nvidia (NVDA), the $30 billion investment deepens its financial ties to one of its largest customers. However, shareholders have recently pressured the chipmaker over its decision to reinvest heavily into the AI ecosystem rather than prioritize capital returns.

The interdependence has also revived concerns about “circular financing,” in which companies invest in key customers while simultaneously securing supply agreements. Critics argue such structures can blur the line between organic demand and strategically supported revenue.

Amazon Expands Strategic AI Footprint

Amazon (AMZN) is pairing capital with infrastructure.

Alongside its $50 billion commitment — beginning with an initial $15 billion investment — OpenAI will utilize two gigawatts of computing capacity powered by Amazon’s proprietary Trainium AI chips. The companies are also expanding a previously signed $38 billion cloud agreement, with OpenAI planning to spend an additional $100 billion on Amazon Web Services over eight years.

AWS will become the exclusive third-party cloud provider for OpenAI Frontier, the company’s enterprise AI platform for building and running agents. Importantly, OpenAI’s relationship with Microsoft remains intact, with Azure continuing as the exclusive cloud provider for its APIs.

The multi-cloud, multi-chip strategy reflects how hyperscalers are competing not just for AI workloads, but for long-term ecosystem control.

Competition Is Intensifying

The raise comes as Alphabet’s Google strengthens its AI position following the launch of Gemini 3, and as Anthropic continues to gain traction in enterprise AI applications. OpenAI, which has yet to turn a profit, is reportedly targeting approximately $600 billion in total compute spending through 2030.

At the same time, technology stocks have faced sharp declines in 2026 as investors question whether AI investments will generate returns sufficient to justify soaring valuations.

Still, OpenAI’s scale is formidable. The company reports more than 900 million weekly active users for ChatGPT and over 50 million consumer subscribers, with early 2026 pacing as its strongest period for new subscriber growth.

Why It Matters for Investors

This deal reinforces several market themes:

  • AI capital intensity is rising dramatically.
  • Infrastructure partnerships are becoming equity-linked.
  • Hyperscalers are competing for exclusive compute relationships.
  • Pre-IPO valuations are stretching toward trillion-dollar territory.

Whether these commitments ultimately deliver sustainable returns remains a key question for public markets. But for now, the AI capital formation cycle remains firmly in expansion mode.

Nvidia Stock Drops Despite Strong Earnings as AI Spending Questions Grow

Posted on by slightbourne@noblecapitalmarkets.com

Nvidia delivered another quarter of eye-catching growth. Investors still found reasons to sell. Shares of the AI chip leader fell as much as 5.6% Thursday after its fiscal first-quarter revenue forecast, while ahead of average Wall Street estimates, failed to ease mounting concerns about how long the artificial intelligence spending boom can last. The decline marked the stock’s sharpest intraday drop in three months.

On paper, the results were hard to fault. Nvidia projected fiscal first-quarter revenue of about $78 billion, topping the average analyst estimate of $72.8 billion, though some forecasts had climbed closer to $80 billion in recent weeks. For the fiscal fourth quarter, revenue surged 73% to $68.1 billion, beating expectations. Adjusted earnings of $1.62 per share and gross margins of 75.2% also edged past consensus estimates.

The company’s data center division — which includes its AI accelerators and networking products — generated $62.3 billion in quarterly revenue, above projections. That business has become the centerpiece of Nvidia’s growth story as hyperscale cloud providers and enterprises race to build AI infrastructure.

Other segments were softer. Gaming revenue of $3.73 billion and automotive revenue of $604 million both trailed analyst expectations. Ongoing memory supply constraints have weighed on certain product lines, highlighting that even Nvidia is not immune to broader semiconductor supply dynamics.

The market reaction underscores a key shift: Expectations are now extraordinarily high. After explosive gains over the past two years tied to generative AI demand, investors are increasingly focused on sustainability rather than acceleration.

CEO Jensen Huang pushed back against fears of an AI bubble during the earnings call, arguing that customers are already generating returns from their AI investments. According to Huang, expanding compute capacity directly supports revenue growth for Nvidia’s clients, reinforcing the case for continued infrastructure buildouts.

Still, questions remain. Nvidia disclosed $95.2 billion in purchase obligations, up sharply from $16.1 billion a year earlier. While those commitments reflect efforts to secure supply and meet anticipated demand — with shipments extending into calendar 2027 — they also raise the stakes if capital spending slows.

Geopolitical uncertainty adds another layer. The company has received limited U.S. government licenses to ship certain processors to China, but data center revenue from the country remains excluded from guidance. Tariffs and inspection requirements create additional friction in an already complex global supply chain.

At the same time, Nvidia and its competitors are announcing large, long-term agreements with major customers to lock in computing capacity. Nvidia recently disclosed that Meta Platforms plans to deploy “millions” of its processors in the coming years, while Advanced Micro Devices announced its own multibillion-dollar AI infrastructure deal. These agreements are designed to demonstrate durable demand, though some observers caution that increasingly intertwined supplier-customer relationships can complicate traditional demand signals.

For investors, Nvidia’s quarter reflects a broader capital markets dynamic heading into 2026. Growth is still robust, but markets are scrutinizing visibility, balance sheet commitments, and the durability of capital expenditures more closely.

The AI buildout remains one of the most significant investment cycles in technology history. Nvidia’s latest results suggest momentum is intact. The stock’s reaction shows that confidence in how long it lasts is now the real debate.

Google Updates Viral AI Image Tool With Faster, Smarter Nano Banana 2

Posted on by slightbourne@noblecapitalmarkets.com

Google is doubling down on generative AI with the launch of Nano Banana 2, the latest version of its viral AI image generator. The update, announced Thursday, is designed to make the tool faster, more precise and better at rendering text — a key improvement for use cases such as marketing mockups, greeting cards and branded visuals. The rollout underscores how aggressively large technology platforms are iterating in the increasingly competitive AI image and video market.

Shares of Alphabet traded lower alongside the broader tech market, but the Nano Banana refresh highlights the company’s continued push to integrate generative AI deeper into its Gemini ecosystem.

Nano Banana first launched in August and quickly gained traction online as users shared AI-generated images across social platforms. Google followed with Nano Banana Pro in November, built on Gemini 3 Pro, targeting higher-fidelity and more accuracy-sensitive use cases.

Nano Banana 2 is now positioned as the speed-optimized successor.

According to Google, the new model incorporates “advanced world knowledge,” pulling real-time information from Gemini to produce more accurate visual renderings. The company emphasized three primary upgrades: faster generation, improved instruction-following and more precise text rendering inside images — an area where AI image models have historically struggled.

While Nano Banana Pro will remain available for high-fidelity tasks requiring maximum factual precision, Nano Banana 2 is being positioned for rapid creation and integrated image-search grounding. The new version will replace its predecessor across Gemini’s Fast, Thinking and Pro tiers.

The move comes as AI image and video tools are becoming mainstream consumer products. Users can now generate increasingly sophisticated visuals from simple text prompts, blurring the line between professional and consumer-grade creative tools.

Competition in the space is intensifying.

OpenAI launched its video-generation model Sora in 2024, drawing massive demand. Adobe has continued expanding Firefly, integrating generative AI across its creative software suite. ByteDance has also introduced its Seedance video-generation tool, though it has faced legal scrutiny from major studios over alleged intellectual property violations.

The rapid adoption of AI creative tools has also fueled debate around copyright, training data and the protection of original content. Media and entertainment companies have raised concerns that generative models may infringe on protected works, increasing regulatory and legal uncertainty across the sector.

For investors, Google’s Nano Banana 2 rollout highlights a broader capital allocation theme in 2026: speed of iteration is becoming a competitive advantage in AI.

Large platforms are not only investing heavily in infrastructure — such as GPUs and data centers — but are also racing to deliver user-facing AI products that drive engagement, subscription upgrades and enterprise adoption.

The generative AI market is still in its early innings. However, with major players rolling out new versions in rapid succession, product cycles are shortening, and differentiation is increasingly tied to performance, reliability and integration with broader ecosystems.

Nano Banana 2 may be an incremental upgrade. But in today’s AI arms race, incremental improvements — delivered quickly — can shape market leadership.

Perfect (PERF) – Revenue Growth Story Intact

Posted on by slightbourne@noblecapitalmarkets.com


Wednesday, February 25, 2026

Patrick McCann, CFA, Research Analyst, Noble Capital Markets, Inc.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Q4 results. Perfect reported Q4 revenue of $18.1 million, up 14.2% Y/Y and largely in line with our estimate of $18.2 million, while adj. EBITDA of $1.4 million exceeded our forecast of $1.0 million, representing 8% margins. Excluding a one-time goodwill write-off, the company would have generated operating income, underscoring improving cost discipline and operating leverage.

B2C momentum the primary growth driver. Management noted that strong demand for AI-powered content creation is driving engagement across the YouCam app portfolio. Generative AI photo and video tools remain key contributors, and we believe Perfect’s expertise with these technologies positions it well to benefit from sustained demand for personalized, AI-enabled digital experiences.


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

Nvidia and Meta Deepen AI Alliance With Millions of Next-Gen Chips

Posted on by slightbourne@noblecapitalmarkets.com

AI infrastructure is getting another massive upgrade. Nvidia and Meta have announced an expanded multiyear, multigenerational partnership that will deliver millions of Nvidia’s latest GPUs, CPUs, and networking products into Meta’s data centers. The move underscores just how aggressively the world’s largest tech platforms are investing in artificial intelligence — even as investors question the sustainability of that spending.

Under the agreement, Meta will deploy Nvidia’s Blackwell and next-generation Rubin GPUs to train and run AI models across its family of apps, including Facebook, Instagram, and WhatsApp. The chips will power everything from recommendation systems to advanced generative AI tools designed for billions of users worldwide.

Nvidia CEO Jensen Huang described the partnership as a deep integration across computing layers, from GPUs and CPUs to networking and software. The goal is to bring Nvidia’s full-stack AI platform into Meta’s infrastructure, allowing the company’s researchers and engineers to push the boundaries of large-scale AI deployment.

Importantly, Meta will use the chips both in its own data centers and through Nvidia’s Cloud Partner ecosystem, which includes providers like CoreWeave. That hybrid strategy gives Meta additional flexibility to scale workloads quickly without waiting for new facilities to come online.

Beyond GPUs, Meta is also rolling out Nvidia’s Grace CPU-only servers, with plans to adopt the next-generation Vera CPU systems in 2027. These CPU deployments are notable because they signal Nvidia’s growing ambition to compete more directly in the traditional server market long dominated by Intel and AMD. If Nvidia can establish a foothold in CPU-heavy environments alongside its GPU dominance, it could reshape the balance of power in enterprise data centers.

Meta also plans to integrate Nvidia’s Confidential Computing technology into WhatsApp, enhancing privacy protections by enabling secure data processing on GPUs. As AI systems increasingly rely on sensitive personal data, secure processing capabilities are becoming a competitive differentiator.

The announcement comes at a time when AI-related stocks have faced renewed scrutiny. Shares of Nvidia and Meta have cooled in early 2026 amid concerns that hyperscalers may be overspending on AI hardware. Companies such as Microsoft, Amazon, and Google have introduced their own custom AI chips, raising questions about whether Nvidia’s GPUs will remain indispensable.

There are also broader concerns about whether all AI workloads truly require high-performance GPUs, or whether specialized processors could handle certain tasks more efficiently. Yet analysts argue that Nvidia’s advantage lies in versatility. GPUs can support a wide range of AI applications, from training large language models to running inference at scale, while custom chips tend to be optimized for narrower use cases.

For Meta, the decision is clear: scale matters. Running AI at the level required to serve billions of users demands proven hardware, deep software integration, and reliable supply chains. By doubling down on Nvidia, Meta is signaling that it views AI not as an experimental feature, but as core infrastructure for its future.

The partnership reinforces Nvidia’s central role in the AI ecosystem — and shows that, despite market jitters, the largest tech companies are still betting big on next-generation computing power.

The AI Coding Boom Just Created a $1.5B Cloud Contender

Posted on by slightbourne@noblecapitalmarkets.com

Cloud infrastructure startup Render has secured $100 million in new funding at a $1.5 billion valuation, underscoring how the artificial intelligence boom is reshaping the competitive landscape of cloud computing. As developers increasingly rely on AI tools to generate code and launch applications, platforms that simplify deployment and infrastructure management are seeing surging demand.

Founded in 2018 and headquartered in San Francisco, Render offers developers an easy way to deploy web apps, databases and background services without the operational complexity traditionally associated with major cloud providers. The company now counts more than 4.5 million developers on its platform and is growing revenue at well over 100% annually, according to CEO and co-founder Anurag Goel.

The broader cloud market has long been dominated by giants like Amazon, Microsoft and Alphabet. But the rise of generative AI, sparked by the 2022 debut of OpenAI’s ChatGPT, has shifted how software is built and deployed. Developers are now asking AI systems to write applications for them, dramatically lowering the barrier to creating new products. That shift is driving demand for infrastructure platforms that can instantly host and scale those AI-built applications.

Render operates on top of established cloud services such as Amazon Web Services and Google Cloud Platform, but it has also begun testing its own server infrastructure. Moving some workloads in-house could reduce long-term costs and give the company greater control over performance and pricing. However, owning hardware introduces new operational risks, including the need to carefully manage capacity to avoid shortages or downtime.

Investors backing Render include 01A, Addition, Bessemer Venture Partners, General Catalyst and Georgian Partners. The new capital will primarily fund hiring, particularly engineers focused on expanding platform capabilities and reliability.

Render’s growth also reflects changes among legacy platform providers. Salesforce recently indicated it would scale back new feature development for Heroku, once a pioneer in the platform-as-a-service category. That decision has left many developers searching for modern alternatives, and Render is positioning itself as a natural successor.

The company has attracted customers ranging from startups to established brands. AI-powered app builder Base44 uses Render for deployment, and its founder has invested in the company after experiencing the product firsthand. Other customers include e-commerce platforms, media companies and emerging AI startups seeking simplified infrastructure.

Notably, OpenAI’s Codex coding application allows users to deploy apps directly to Render, alongside options such as Cloudflare, Netlify and Vercel. As AI-generated software becomes more common, being integrated into these development workflows provides a powerful distribution channel.

Render’s rise highlights a broader trend: as AI makes software creation easier, infrastructure simplicity becomes a competitive advantage. In a market historically defined by scale and complexity, the winners of the AI era may be those that remove friction rather than add features.

AI Shifts From Market Booster to Source of Volatility for Stocks

Posted on by slightbourne@noblecapitalmarkets.com

Investors are discovering that artificial intelligence (AI) is no longer a guaranteed driver of stock market gains. What once lifted technology stocks across the board has increasingly become a source of volatility, forcing a reevaluation of valuations across multiple sectors.

The surge in AI enthusiasm contributed to a strong U.S. bull market, with gains in technology companies and firms tied to data center expansion. Many investors anticipated that 2026 would mark the point when AI-driven efficiency would translate into measurable bottom-line growth.

Recent developments, however, reveal that AI’s impact is more nuanced. Concerns over the disruptive potential of the technology are affecting sectors beyond software, including legal services, wealth management, and insurance. Questions about the scale and timing of AI capital spending are placing pressure on the share prices of major companies.

Early 2026 has already seen headline-driven market swings. The introduction of AI-powered tools by software startups triggered selling in established software stocks, contributing to a notable decline in the S&P 500 software and services index. Wealth management and insurance firms also experienced losses following the rollout of AI-enabled financial and comparison tools.

Even leading technology stocks have faced headwinds. Declines in stock prices reflect investor concern that high AI-related expenditures may not yield adequate returns. At the same time, some analysts see opportunity in these drops, as valuations for software and services have fallen to their lowest levels in nearly three years, suggesting potential value for patient investors.

The speed of AI adoption has made it challenging for companies to demonstrate the full impact of their investments on earnings. Investors are increasingly looking for firms with strong competitive advantages—economic “moats”—as a way to distinguish sustainable winners from overhyped names.

The AI trade lifted technology stocks for much of 2025, contributing to a third consecutive year of double-digit returns for the S&P 500. Entering 2026, optimism about corporate earnings—expected to rise more than 14%—and potential interest rate cuts provided additional support for equities. However, AI-driven volatility has highlighted the importance of selective stock picking, with a focus on avoiding companies vulnerable to significant setbacks.

In summary, while AI remains a powerful engine for growth, it is increasingly clear that its influence can cut both ways: creating opportunities for companies positioned to capitalize on the technology while introducing risk for those unprepared for rapid disruption. Investors navigating this landscape must balance optimism with caution, identifying firms that combine AI adoption with solid fundamentals to maximize potential returns.

Genius Sports Expands Beyond Data With $1.2 Billion Legend Acquisition

Posted on by slightbourne@noblecapitalmarkets.com

Genius Sports Limited (NYSE: GENI) has entered into a definitive agreement to acquire Legend, a global digital sports and gaming media network, in a transaction valued at up to $1.2 billion. The deal, announced on February 5, 2026, marks a significant strategic step for Genius Sports as it expands beyond official sports data into a fully integrated media, advertising, and fan activation ecosystem.

Under the terms of the agreement, Genius Sports will pay $900 million at closing—comprised of $800 million in cash and $100 million in stock—along with a potential earnout of up to $300 million tied to profitability and cash flow targets over the two years following closing. The acquisition is expected to close in the second quarter of 2026, subject to customary regulatory and closing conditions.

Legend brings to the table a scaled and highly engaged media platform that monetizes sports fan attention through owned and operated digital properties, advanced marketing technology, and syndication partnerships with major publishers such as Sports Illustrated and Yahoo Sports. In 2025 alone, Legend generated approximately 320 million annual visits from 118 million unique users, with more than two-thirds returning regularly—providing Genius Sports with a predictable, high-quality audience base.

Strategically, the acquisition positions Genius Sports as the only company operating two synergistic businesses across official sports data and media and advertising. By combining Legend’s media reach with Genius Sports’ proprietary data, betting, and advertising infrastructure, the company expects to unlock greater scale, stronger margins, and higher cash conversion than previously outlined at its Investor Day.

Financially, the transaction is expected to be immediately accretive to Group Adjusted EBITDA margins and free cash flow conversion. On a 2026 annualized pro forma basis, the combined company is expected to generate approximately $1.1 billion in group revenue and $320–330 million in Group Adjusted EBITDA, with roughly 50% free cash flow conversion. Genius Sports reiterated its expectation to maintain at least a 20% compound annual revenue growth rate through 2028.

The integration of Legend into Genius Sports’ ecosystem will be powered by FANHub, the company’s sports fan activation platform. FANHub will connect Legend’s global audience and marketing technology with Genius Sports’ network of more than 2,000 sports, media, and betting partners through a single, integrated platform—enhancing monetization opportunities at moments when fans are most engaged and likely to act.

Genius Sports also provided preliminary unaudited results for fiscal year 2025, reporting group revenue of $669 million, up 31% year-over-year, and Group Adjusted EBITDA of $136 million, representing 59% growth and a 20% margin. Looking ahead, the company expects standalone 2026 revenue of $810–820 million and Adjusted EBITDA of $180–190 million, before factoring in the Legend acquisition.

Funding for the transaction will include an $850 million Term Loan B, with pro forma leverage expected to remain below 3.0x and decline significantly by 2028. With this acquisition, Genius Sports aims to redefine the digital sports and gaming media landscape—combining data, audience, and technology at unprecedented scale.

Texas Instruments Agrees to Acquire Silicon Labs in $7.5 Billion All-Cash Deal

Posted on by slightbourne@noblecapitalmarkets.com

Texas Instruments (Nasdaq: TXN) announced on February 4, 2026, that it has entered into a definitive agreement to acquire Silicon Labs (Nasdaq: SLAB) in an all-cash transaction valued at approximately $7.5 billion. Under the terms of the deal, Silicon Labs shareholders will receive $231.00 per share, positioning the acquisition as a major consolidation move in the fast-growing embedded wireless connectivity market.

The transaction brings together Texas Instruments’ strength in analog and embedded processing with Silicon Labs’ leadership in secure, intelligent wireless technology. The combined company is expected to emerge as a global leader in embedded wireless connectivity solutions, a segment benefiting from long-term secular trends such as the Internet of Things (IoT), industrial automation, smart infrastructure, and connected consumer devices.

Strategically, the acquisition expands Texas Instruments’ embedded portfolio with approximately 1,200 Silicon Labs products supporting a wide range of wireless standards and protocols. Silicon Labs’ mixed-signal and wireless expertise complements Texas Instruments’ existing analog and embedded processing capabilities, allowing the combined company to deliver more comprehensive and integrated solutions to customers across industrial, automotive, and consumer end markets.

A central pillar of the deal is manufacturing integration. Texas Instruments plans to leverage its industry-leading, internally owned manufacturing footprint to reshore Silicon Labs’ production, which currently relies heavily on external foundries. Texas Instruments operates 300mm wafer fabrication facilities in the United States, along with internal assembly and test operations, providing dependable, low-cost capacity at scale. Management expects this integration to improve supply reliability for customers while reducing costs and shortening development cycles, particularly as Texas Instruments’ 28nm and other defined process technologies are well suited to Silicon Labs’ wireless product portfolio.

The financial rationale is equally compelling. Texas Instruments expects the transaction to generate approximately $450 million in annual manufacturing and operational synergies within three years of closing. These efficiencies are expected to come from manufacturing optimization, operational scale, and streamlined processes across design, production, and distribution. The company also expects the acquisition to be accretive to earnings per share in the first full year after closing, excluding transaction-related costs.

Beyond cost synergies, Texas Instruments sees significant growth opportunities through expanded customer reach and cross-selling. Its global sales force, direct customer relationships, and robust e-commerce platform are expected to deepen engagement with Silicon Labs’ existing customers while introducing its wireless solutions to new markets. Silicon Labs has delivered roughly 15% compound annual revenue growth since 2014, driven by increasing demand for connected devices, and Texas Instruments aims to build on this momentum with greater scale and market access.

The acquisition has been unanimously approved by the boards of both companies. Texas Instruments plans to fund the transaction using a combination of cash on hand and debt financing, with no financing contingency. The deal is expected to close in the first half of 2027, subject to regulatory approvals and approval by Silicon Labs shareholders.

Following the acquisition, Texas Instruments reiterated its commitment to returning 100% of free cash flow to shareholders over time through dividends and share repurchases, signaling confidence that the transaction will enhance long-term shareholder value while strengthening its position in embedded wireless connectivity.

Memory Stocks Surge as AI Boom Creates a New Semiconductor Gold Rush

Posted on by slightbourne@noblecapitalmarkets.com

The artificial intelligence boom has reshaped the global technology landscape, turning companies like Nvidia into market behemoths and pushing cloud giants such as Microsoft and Google to new earnings highs. But while GPUs and AI software platforms dominate headlines, another corner of the semiconductor market is quietly delivering some of the most explosive gains: memory and storage stocks.

As AI data centers multiply around the world, demand for high-performance memory and storage chips has surged to unprecedented levels. These facilities, packed with thousands of servers, rely not only on powerful GPUs from Nvidia and Advanced Micro Devices, but also on vast amounts of DRAM, NAND, and other storage technologies to process and move massive datasets. The result has been a supply crunch years in the making—and eye-popping stock gains for companies positioned to benefit.

Some memory-related stocks have delivered returns that rival even the hottest AI chip names. Sandisk, which began trading in early 2025 following its spin-off from Western Digital, has seen its share price climb more than 1,800%. Micron Technology is up over 360% in the past year, while Western Digital shares have surged nearly 500%. International players are seeing similar momentum, with South Korea’s SK Hynix up roughly 375% and Japan’s Kioxia soaring more than 1,000%.

This surge is the culmination of a “perfect storm” in the memory industry. During the COVID era, demand for PCs, smartphones, and enterprise hardware spiked, leading to heavy investment in memory production. When that demand cooled, the industry entered a deep downturn, with sharp revenue declines in 2023. Micron, for example, saw revenue collapse nearly 50% that year, while Western Digital endured steep sales declines.

Then AI arrived at scale.

As hyperscalers raced to build out AI infrastructure, demand for memory rebounded violently. Western Digital’s revenue jumped 51% in 2025, while Micron posted back-to-back growth years of 62% and 49% in 2024 and 2025, respectively. Micron has leaned so aggressively into the AI opportunity that it has begun winding down its consumer-facing Crucial brand to focus more heavily on enterprise and data center customers, where margins are higher and demand is more consistent.

Industry analysts say the shortage did not fully materialize until late 2025 because manufacturers were initially able to draw down excess inventory left over from the post-COVID slowdown. Once that buffer disappeared, supply simply could not keep pace with accelerating AI-driven demand from companies like Nvidia, Broadcom, and AMD.

With supply tight, memory producers have gained significant pricing power. That scarcity has become the primary catalyst behind soaring profits—and investor enthusiasm. However, the sector’s history serves as a reminder that memory is one of the most cyclical segments of the semiconductor industry. As new manufacturing capacity comes online and supply chains normalize, pricing pressure could eventually ease.

Even so, analysts caution that relief may not come quickly. AI demand continues to grow at a rapid pace, and building new fabrication capacity takes years. Until supply meaningfully catches up, memory and storage companies may continue to enjoy elevated pricing, strong margins, and outsized stock performance—making them an increasingly important, if often overlooked, pillar of the AI trade in today’s stock market.

Elon Musk’s Boldest Bet Yet: How SpaceX Became the Lifeline That Turned xAI Into a $1.25 Trillion Giant

Posted on by slightbourne@noblecapitalmarkets.com

Elon Musk has never been shy about bending corporate structure to his will, but his latest move may be the most audacious of his career. By merging SpaceX with xAI, Musk has created a $1.25 trillion private colossus, instantly making it the most valuable private company in history — and rescuing a cash-hungry AI venture in the process.

The deal folds Musk’s dominant rocket maker, his lossmaking artificial intelligence startup xAI, and the social media platform X into a single vertically integrated entity. Musk framed the merger as a necessary step toward launching data centers into orbit, building factories on the Moon, and ultimately colonizing Mars. Supporters see visionary logic. Critics see financial engineering on a historic scale.

At the heart of the transaction is SpaceX’s balance sheet. The company, now marked up to a $1 trillion valuation, generates roughly $16 billion in annual revenue, driven by its near-monopoly on commercial rocket launches and the rapid expansion of its Starlink satellite broadband business. That steady cash flow and investor confidence gave Musk the leverage to absorb xAI, which reportedly burns around $1 billion per month as it races to build advanced AI models and massive data centers.

Under the terms of the deal, SpaceX will acquire xAI for $250 billion, matching the valuation implied by a recent funding round. xAI shareholders will receive SpaceX stock at roughly a seven-to-one exchange ratio, with the combined entity priced at $527 per share. Investors were briefed on hurried calls, with many reportedly blindsided by both the speed and the scale of the merger.

The strategic rationale is straightforward: AI’s biggest bottlenecks are energy, compute, and data — areas where Musk already has deep assets. SpaceX provides launch capability and satellite infrastructure, Starlink delivers global connectivity, X contributes a vast real-time data stream, and xAI supplies the models. In theory, the combination creates a self-reinforcing ecosystem few competitors can match.

Yet the risks are just as real. xAI’s revenues remain in the low hundreds of millions, far behind rivals like OpenAI, Google, and Anthropic. Folding such a capital-intensive, lossmaking business into SpaceX complicates a planned June IPO, which could raise as much as $50 billion. Existing SpaceX shareholders will be diluted as the company issues new shares to fund the acquisition — a move that has unsettled some long-term investors.

Still, Musk has a long track record of forcing through controversial deals. His 2016 acquisition of SolarCity using Tesla stock faced years of litigation, yet ultimately rewarded shareholders who stayed the course. Many investors believe this is another example of Musk using his control, credibility, and cult-like investor loyalty to move faster than governance norms would typically allow.

The broader market implication is clear: Musk is racing to position his empire at the center of the AI arms race, even if it means rewriting the rules of valuation along the way. Whether this $1.25 trillion gamble proves visionary or reckless will depend on whether xAI can convert ambition into revenue — before investor patience runs out.

Kelly Services (KELYA) – We Have Assumed Control

Posted on by slightbourne@noblecapitalmarkets.com


Monday, February 02, 2026

Kelly (Nasdaq: KELYA, KELYB) connects talented people to companies in need of their skills in areas including Science, Engineering, Education, Office, Contact Center, Light Industrial, and more. We’re always thinking about what’s next in the evolving world of work, and we help people ditch the script on old ways of thinking and embrace the value of all workstyles in the workplace. We directly employ nearly 350,000 people around the world and connect thousands more with work through our global network of talent suppliers and partners in our outsourcing and consulting practice. Revenue in 2021 was $4.9 billion. Visit kellyservices.com and let us help with what’s next for you.

Joe Gomes, CFA, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Sale Completed. On Friday, Hunt Equity Opportunities, a subsidiary of Hunt Companies, acquired the 3,039,240 Class B shares previously held by the Terence E. Adderley Revocable Trust K. Hunt now has effective control of Kelly, as owner of 92.2% of the voting Class B shares. According to James Christopher Hunt, CEO of Hunt, “Hunt is very excited about the value creation opportunities ahead for Kelly. We look forward to supporting Chris Layden, CEO of Kelly, and the rest of the Company’s management team as they focus on accelerating growth and realizing Kelly’s full potential.”

Board Changes. As part of the transition, four Hunt designees have been named to Kelly’s Board, with five former Kelly directors leaving the Board, which will now consist of 8 members. Mr. Hunt has been named Chairman of the Board.


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision. 

1-800-Flowers.com (FLWS) – Leaning Into Its Efficiency Initiatives

Posted on by slightbourne@noblecapitalmarkets.com


Friday, January 30, 2026

For more than 45 years, 1-800-Flowers.com has offered truly original floral arrangements, plants and unique gifts to celebrate birthdays, anniversaries, everyday occasions, and seasonal holidays, and to deliver comfort during times of grief. Backed by a caring team obsessed with service, 1-800-Flowers.com provides customers thoughtful ways to express themselves and connect with the most important people in their lives. 1-800-Flowers.com is part of the 1-800-FLOWERS.COM, Inc. family of brands. Shares in 1-800-FLOWERS.COM, Inc. are traded on the NASDAQ Global Select Market, ticker symbol: FLWS.

Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.

Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Difficult quarter. Fiscal Q2 revenue of $702.2 million declined by a disappointing 9.5%, but was in line with our conservative estimate of $702.0 million. Adj. EBITDA was $98.1 million, beating our estimate of $89.5 million by 9.6%. In our view, the results reflect the company’s initiative to focus on efficient use of marketing spend. 

Cost actions are working, but benefits are not fully visible yet. Operating expenses declined meaningfully year over year, and the company has already achieved approximately $15 million in annualized run-rate cost savings. However, temporary consulting and incentive compensation costs related to the transformation are delaying the full earnings benefit. As these costs roll off, underlying profitability should improve.


Get the Full Report

Equity Research is available at no cost to Registered users of Channelchek. Not a Member? Click ‘Join’ to join the Channelchek Community. There is no cost to register, and we never collect credit card information.

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.