Latest news with #cloudservices
Yahoo
a day ago
- Business
- Yahoo
These Artificial Intelligence (AI) Stocks Are Quietly Outperforming the Market
Two AI stocks have crushed the broader market in the past year, and they seem primed for more upside. Fast-growing demand for AI tools in cloud-based services is helping these companies attract new customers. 10 stocks we like better than Twilio › Artificial intelligence (AI) stocks have been in fine form on the market in the past few years, and that's not surprising, as this technology has supercharged the growth of many companies. Thanks to huge investments in AI hardware such as semiconductors, as well as the rapidly growing adoption of AI software to boost productivity, it is estimated that overall spending on AI could hit a massive $628 billion by 2028. This explains why investors have been buying AI stocks hand over fist. However, there are certain AI stocks that have significantly outpaced the broader stock market, and importantly, they still have the potential to deliver more upside. Let's take a closer look at these two names that aren't all that popular, but have been outperforming the market in the past year. Twilio (NYSE: TWLO) stock is up an impressive 115% in the past year as of this writing, easily outperforming the 11% gains clocked by the Nasdaq Composite over the same period. The good part is that Twilio still trades at an attractive 26 times forward earnings and 4 times sales, even after its terrific surge in the past year. The valuation makes buying Twilio stock a no-brainer right now, especially considering how AI now plays an important role in accelerating its growth. Twilio's application programming interfaces (APIs) allow its clients to connect with their customers through various channels such as voice, text, email, video, chat, and others. Twilio points out that its customer engagement platform is used by more than 300,000 enterprises globally. Specifically, the company ended the first quarter of 2025 with more than 335,000 active customer accounts, an increase of 7% from the previous year. This huge customer base is a key reason why one can consider buying Twilio stock right now, as it gives the company the opportunity to cross-sell its AI offerings to a big pool of customers. Twilio has been offering multiple AI tools to customers, such as generative AI-powered assistants that can help tackle customer service queries autonomously, integrating human-like conversational AI assistants to talk to customers in real time and derive critical insights from customers' data with the help of AI. The growing demand for these AI services helps Twilio win more business from existing customers. This is evident from the five-percentage-point jump in fiscal 2025 Q1's dollar-based net expansion rate compared to the first quarter of 2024. The higher customer spending, along with an increase in Twilio's customer base, are the reasons why it has raised its full-year organic revenue growth guidance to 8% from the earlier forecast of 7.5%. This combination of higher customer spending, along with an increase in the customer count, explains why analysts expect a 24% increase in Twilio's earnings this year, followed by impressive growth over the next couple of years as well. Assuming Twilio indeed generates $6.21 per share in earnings after a couple of years and trades at 30 times earnings at that time (in line with the tech-laden Nasdaq-100 index's forward earnings multiple), its stock price could jump to $186. That would be a 59% jump from current levels. So, investors can expect more upside from this AI stock going forward, which is why it would be a smart idea to consider buying it while it trades at attractive levels. Snowflake (NYSE: SNOW) share prices have jumped an impressive 64% in the past year despite bouts of volatility, and a closer look at the price chart will tell us that the stock has made a sharp move up in the past couple of months. Importantly, more upside in Snowflake stock cannot be ruled out, as fast-growing adoption of the company's AI-focused data cloud tools is helping it build a robust revenue pipeline for the future. Snowflake's data cloud platform enables customers to safely store their data in a single platform, which can then be used to derive insights and build applications. The company's AI-specific tools are now helping customers get more out of their data. They can apply large language models (LLMs) to their data to build applications such as AI agents, generative AI assistants, and search documents through natural language prompts, among other things. These offerings are turning out to be a hit among Snowflake customers, with nearly 45% of its 11,600-strong customer base using its AI tools every week in the previous quarter. Additionally, AI is helping Snowflake attract more customers. This is evident from the 19% year-over-year increase in its customer count in Q1 of fiscal 2026. This combination of an increase in Snowflake's customer base, along with the growing adoption of its AI tools, is the reason why its remaining performance obligations (RPO) increased by an impressive 34% year over year in the previous quarter to $6.7 billion, which was better than the 26% growth in its product revenue to just under $1 billion. The strong growth in its revenue pipeline encouraged management to increase its fiscal 2026 revenue guidance as well. What's more, Snowflake's earnings are expected to increase by a third in the current fiscal year to $1.10 per share. Consensus estimates project faster growth over the next couple of fiscal years. That won't be surprising, as Snowflake's ability to win more business from its existing customers and an improvement in its overall customer count should allow it to continue improving its revenue pipeline, especially considering that it sees its total addressable market growing to a whopping $342 billion in 2028. In all, Snowflake investors can expect more upside from this cloud stock following the impressive gains that it has delivered in the past year, driven by a new catalyst in the form of AI. Before you buy stock in Twilio, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Twilio wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Snowflake and Twilio. The Motley Fool has a disclosure policy. These Artificial Intelligence (AI) Stocks Are Quietly Outperforming the Market was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Rigetti Targets Commercial Traction With QPU-as-a-Service Strategy
Rigetti Computing RGTI is sharpening its focus on commercial viability through a service-based approach, offering quantum access via cloud platforms. The company made a significant leap with the launch of its 84-qubit Ankaa-2 system in December 2023, through its Quantum Cloud Services. In August 2024, Rigetti extended Ankaa-2 access to AWS Braket, allowing customers to run quantum workloads on demand with daily system availability. These systems are powered by Quantum Processing Units (QPUs), the quantum equivalent of CPUs, which perform quantum operations by manipulating qubits through quantum gates. The Ankaa-2 boasts a 2.5x performance boost over its predecessor and an approximate 98% median two-qubit fidelity, making it the company's most commercially viable QPU to date. This QPU-as-a-Service model enables Rigetti to reach a wider user base, including enterprise, government, and academic customers, without waiting for full-scale quantum systems. Rather than relying solely on hardware sales or long-term development milestones, Rigetti is now positioned to monetize quantum usage on a consumption basis. The cloud-first approach could help bridge its near-term revenue gap while showcasing the real-world value of its superconducting quantum technology. IonQ IONQ continues to set the commercial benchmark in this space. Its trapped-ion quantum systems are integrated across AWS, Azure, and Google Cloud, offering users seamless access regardless of platform. The company also invests heavily in building application-layer solutions, particularly for machine learning, risk analysis, and quantum chemistry. Strategic collaborations with enterprise partners and government agencies further extend IonQ's reach beyond pure hardware, positioning it as a full-stack player in the QPU-as-a-Service landscape. D-Wave QBTS offers another model of cloud-based commercialization via its Leap platform, which provides real-time access to quantum annealing processors and hybrid solvers. Although D-Wave's architecture differs from Rigetti's gate-based model, Leap has handled millions of production jobs and supports enterprise clients in logistics, materials, and optimization. The company is also integrating AI/ML hybrid solvers to expand its commercial footprint. D-Wave's success reinforces the idea that even non-universal quantum systems can generate meaningful cloud-based revenues when targeted at specific, high-impact use cases. Shares of RGTI have lost 25.7% in the year-to-date period against the industry's growth of 12.9%. Image Source: Zacks Investment Research From a valuation standpoint, Rigetti trades at a price-to-book ratio of 15.73, above the industry average. RGTI carries a Value Score of F. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Rigetti's 2025 earnings implies a significant 86.1% rise from the year-ago period. Image Source: Zacks Investment Research The stock currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report IonQ, Inc. (IONQ) : Free Stock Analysis Report Rigetti Computing, Inc. (RGTI) : Free Stock Analysis Report D-Wave Quantum Inc. (QBTS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Amazon.com (NasdaqGS:AMZN) Collaborates With CSG To Enhance AWS Cloud Transformation
recently experienced a 10% price move over the past quarter, buoyed by its strategic collaboration with AWS to enhance cloud services with potential cost savings of up to 60%. This collaboration underscores the company's focus on cloud transformation, aligning well with the broader market's steady performance. Additional collaborations, such as partnerships with Rebag for sustainable shopping and Elastic N.V. for AI-driven transitions, further highlight Amazon's innovative pursuits. Amidst geopolitical tensions and market volatility, these initiatives have lent weight to Amazon's positive trajectory within the tech sector's general upward trend. Buy, Hold or Sell View our complete analysis and fair value estimate and you decide. Trump has pledged to "unleash" American oil and gas and these 22 US stocks have developments that are poised to benefit. The recent collaboration between Amazon and AWS could enhance the company's narrative around operational efficiency and margin stability, potentially impacting future revenue and earnings. The focus on cloud transformation and sustainability initiatives may align well with Amazon's strategy to leverage AI and fulfillment optimization for cost-effectiveness. Over the past three years, Amazon's total shareholder return was very large, reflecting a significant appreciation in share value. During the recent year alone, Amazon matched the US Multiline Retail industry's performance, underscoring its resilience amid market volatility. Amazon's share performance, with its current price standing at US$185.01, presents an 11.7% discount to the consensus analyst price target of approximately US$239.33. This suggests potential upside if expectations for revenue and earnings growth materialize. The company's expected revenue growth of 8.9% annually may accelerate through initiatives like cloud and AI expansion. However, projected earnings margins need careful monitoring against competitive pressures and market dynamics. The anticipated earnings of US$103.60 billion by 2028 highlight a bullish outlook, yet the diverse forecasts reflect potential uncertainties. As such, investors should independently assess these projections against market conditions and Amazon's strategic initiatives. Evaluate prospects by accessing our earnings growth report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NasdaqGS:AMZN. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Bloomberg
13-06-2025
- Business
- Bloomberg
Temu Enlists Oracle Cloud in Push to Localize US Business
Online discount shopping platform Temu has signed a cloud service agreement with Oracle Corp as the company attempts to localize more operations in the US. The PDD Holdings Inc. subsidiary, which already uses Google and Microsoft Corp. cloud services, is scaling up its US operations by expanding its local partnerships, the Chinese-owned firm said in a statement. The company did not provide details of the deal.
CNA
12-06-2025
- Business
- CNA
Oracle shares hit record high as AI cloud demand propels revenue forecast
Oracle shares surged 14 per cent to breach the $200-mark for the first time on Thursday, after the company raised its annual revenue forecast, driven by strong demand for its AI-related cloud services. Confidence in the software sector remained strong despite geopolitical tensions, even as analysts warn that U.S. President Donald Trump's tariffs could undermine Big Tech's AI investments. Earlier this year, Oracle, whose cloud offerings help companies build their AI infrastructure, announced a joint venture called Stargate to deliver large-scale computing capabilities to OpenAI. "Oracle's once-stodgy image levels up to 'cloud-native mage,' and the competitive map now looks less like a classic three-player real time strategy and more like a battle-royale with everyone dropping in, looking for compute loot", said Michael Ashley Schulman, partner at Running Point Capital Advisors. Oracle expects total revenue to be at least $67 billion for fiscal 2026, CEO Safra Catz said on a post-earnings call. The Texas-based company's cloud services quarterly revenue rose 14 per cent to $11.70 billion. Its overall revenue of $15.90 billion beat estimates of $15.59 least nine brokerages have raised their price target post-earnings. Oracle trades at a forward price-to-earnings ratio of 25.86, compared to rivals Microsoft at 31.34 and Amazon at 31.80, according to data compiled by LSEG. Microsoft's stock has gained 12.16 per cent, while Amazon's has decreased by 2.8 per cent so far this year. "ORCL has entered an entirely new wave of enterprise popularity that it has not seen since the Internet era in the late 90s," analysts at Piper Sandler added.
