Google Plans to Invest $100M in Fluidstack to Expand AI Chip Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 20 2026
0mins
Should l Buy MSFT?
Catch up on the top artificial intelligence news and commentary by Wall Street analysts on publicly traded companies in the space with this daily recap compiled by The Fly.AI-POWERED DEVICES:OpenAI has more than 200 employees focused on developing AI-powered devices, including a smart speaker expected to be priced between $200 and $300, as well as potential smart glasses and a smart lamp, The Information's Stephanie Palazzolo and Qianer Liu. The initiative signals a broader push beyond software into consumer hardware built around AI experiences, the report notes.AI CHIPS MARKET:Google, seeking to expand the market for its AI chips by increasing financial support to data-center partners to compete with Nvidia, is in talks to invest $100M in cloud startup Fluidstack, part of a deal that values it at $7.5B, and supports other data-center partners, The Wall Street Journal's Raffaele Huang, Kate Clark, and Berber Jin. Some managers at Google's cloud-computing division recently refreshed a longstanding internal debate about restructuring the TPU team into a standalone unit, people familiar with the discussions say, adding that a potential challenge is that Google's cloud business relies heavily on Nvidia chips.CLAUDE CODE SECURITY:Claude Code Security, a new capability built into Claude Code on the web, is now available in a limited research preview, Anthropic said in a blog. It scans codebases for security vulnerabilities and suggests targeted software patches for human review, allowing teams to find and fix security issues that traditional methods often miss. "Claude Code Security is intended to put this power squarely in the hands of defenders and protect code against this new category of AI-enabled attack. We're releasing it as a limited research preview to Enterprise and Team customers, with expedited access for maintainers of open-source repositories, so we can work together to refine its capabilities and ensure it is deployed responsibly." Anthropic added: "This is a pivotal time for cybersecurity. We expect that a significant share of the world's code will be scanned by AI in the near future, given how effective models have become at finding long-hidden bugs and security issues. Attackers will use AI to find exploitable weaknesses faster than ever. But defenders who move quickly can find those same weaknesses, patch them, and reduce the risk of an attack. Claude Code Security is one step towards our goal of more secure codebases and a higher security baseline across the industry." Publicly traded companies in the space include Check Point, CrowdStrike, CyberArk, F5, Fortinet, Gen Digital, Okta, Palo Alto Networksand Qualys.
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Analyst Views on MSFT
Wall Street analysts forecast MSFT stock price to rise
34 Analyst Rating
32 Buy
2 Hold
0 Sell
Strong Buy
Current: 398.550
Low
500.00
Averages
631.36
High
678.00
Current: 398.550
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company that develops and supports software, services, devices, and solutions. Its Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services, spanning a variety of devices and platforms. It comprises Microsoft 365 Commercial products and cloud services; Microsoft 365 Consumer products and cloud services; LinkedIn, and Dynamics products and cloud services. The Intelligent Cloud segment consists of its public, private, and hybrid server products and cloud services. It comprises server products and cloud services, including Azure, and enterprise and partner services, including Enterprise Support Services. Its More Personal Computing segment primarily comprises Windows and Devices, including Windows OEM licensing; Gaming, including Xbox hardware and Xbox content; Search and news advertising, comprising Bing and Copilot, Microsoft News, and Microsoft Edge.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Microsoft's Long-Term Potential in Quantum Computing
- Significant Cloud Growth: In Q2 of fiscal 2026, Microsoft reported a 16.7% year-over-year revenue increase to $81.3 billion, with cloud services contributing $51.5 billion, up 26%, indicating strong market demand and sustained growth potential.
- Increased Quantum Investment: Microsoft is heavily investing in its quantum computing ecosystem, introducing the Majorana 1 quantum processor aimed at enhancing computational stability and reducing errors, laying the groundwork for future commercialization.
- Data Center Expansion: The company added nearly 1 gigawatt of data center capacity in Q2 to address the challenge of Azure service demand exceeding supply, demonstrating its ongoing investment and strategic positioning in cloud infrastructure.
- Rapid AI Application Adoption: Microsoft’s Copilot user base surged over 160% year-over-year to 15 million paid users, showcasing its ability to successfully leverage AI in enterprise workflows, further driving revenue growth.
See More
Analysis of Investment Prospects for Nasdaq-100 Index Fund
- Tech Stocks Drive Market: In recent years, exceptional performances by tech stocks like Nvidia, Meta, and Broadcom have contributed to a more than 500% increase in the Nasdaq-100 index over the past decade, highlighting the significant impact of the tech sector on market returns.
- QQQ ETF Advantages: The Invesco QQQ ETF, the largest exchange-traded fund tracking the Nasdaq-100 index, manages approximately $395 billion in investor assets, and its expense ratio of 0.18% is well below the average, attracting a large number of investors.
- Investment Concentration Risk: The QQQ ETF's investments are heavily weighted towards companies with the largest market capitalizations, with Nvidia accounting for 8.4% and the smallest company, Atlassian, only receiving a 0.07% allocation, indicating that a disproportionate amount of investor capital is tied to a few mega-cap tech firms, increasing investment risk.
- Future Outlook: While the QQQ ETF may face short-term volatility, the rapid advancements in artificial intelligence and other technologies suggest that investors are likely to achieve significant wealth growth over the long term through this ETF.
See More
OpenAI Considers AI Deployment Contract with Microsoft
- Collaboration Potential: OpenAI is contemplating a contract with Microsoft to deploy its artificial intelligence technology, indicating further collaboration potential between the two in the field of technological innovation.
- Market Impact: This move could enhance OpenAI's competitiveness in the AI market while providing Microsoft with new technological advantages for its cloud services, driving growth for both companies.
- Technology Integration: By partnering with Microsoft, OpenAI can leverage its robust infrastructure and resources to accelerate the development and application of AI technologies, improving product market adaptability.
- Strategic Significance: This collaboration not only helps OpenAI expand its market share but may also drive technological advancements across the industry, promoting the widespread adoption and application of AI technologies.
See More
Google Identifies Coruna Hacking Tool Targeting iPhones
- Hacking Tool Identification: Google's Threat Intelligence Group officially identified a hacking tool named 'Coruna' targeting iPhones running iOS versions 13.0 to 17.2.1, revealing its use in attacks against Ukrainian users and by suspected Chinese hackers, highlighting the complexity of cybersecurity threats.
- Market Activity: The report indicates uncertainty about how hackers acquired the tool but suggests an active market for 'second-hand' zero-day exploits, which could encourage more hackers to seek out such tools for attacks, thereby increasing security risks for mobile devices.
- User Advisory: Google strongly urges iPhone users to update to the latest iOS version to prevent potential exploitation of security vulnerabilities, demonstrating the company's commitment to user safety and proactive stance against cybercrime.
- National Context: iVerify noted this is the first observed mass exploitation of mobile phones by a criminal group using tools likely developed by a nation-state, emphasizing the close relationship between national security and cybersecurity, which may prompt broader policy discussions.
See More
CrowdStrike Exceeds Expectations in Quarterly Results, AI Fuels Growth
- Significant Revenue Growth: CrowdStrike reported a 23% year-over-year revenue increase in Q4 FY2024, reaching $1.305 billion, surpassing the market expectation of $1.297 billion, indicating strong performance in the cybersecurity sector.
- Adjusted EPS Beat: The adjusted earnings per share (EPS) for the quarter was $1.12, exceeding the analyst estimate of $1.10, reflecting the company's sustained profitability, although shares dipped slightly in after-hours trading.
- Annual Recurring Revenue Surge: The net new annual recurring revenue totaled $331 million, above the analyst forecast of $304 million, representing a 47% year-over-year growth, marking a successful expansion in customer relationships and revenue stability.
- Optimistic Outlook: Management forecasts revenue for FY2027 to be between $5.87 billion and $5.93 billion, exceeding the FactSet consensus estimate of $5.86 billion, showcasing confidence in future growth driven by AI technology demand.
See More
Trump Announces Maritime Trade Insurance for Middle East
- Maritime Trade Assurance: Trump announced that the U.S. will provide insurance for 'ALL Maritime Trade' in the Middle East and may deploy the Navy to escort ships through the Strait of Hormuz if necessary, a move aimed at enhancing international shipping security and potentially increasing U.S. influence in global trade.
- Market Reaction: Following Trump's announcement, U.S. markets pared losses, with the Dow Jones Industrial Average ending down 403.51 points, or 0.83%, after dipping over 1,200 points at its lowest, indicating the market's sensitivity to geopolitical risks.
- Energy Price Risks: Analysts warn that European and Asian economies could be impacted by a surge in natural gas prices triggered by the ongoing war in the Middle East, as both regions are more exposed to potential gas price shocks compared to the U.S., which benefits from domestic shale and LNG production.
- Digital Service Outages: Outages in apps and digital services in the UAE have been reported following drone strikes on Amazon Web Services' data centers, which could disrupt business operations in the region and further exacerbate uncertainties stemming from geopolitical tensions.
See More
Microsoft's Long-Term Potential in Quantum Computing
- Significant Cloud Growth: In Q2 of fiscal 2026, Microsoft reported a 16.7% year-over-year revenue increase to $81.3 billion, with cloud services contributing $51.5 billion, up 26%, indicating strong market demand and sustained growth potential.
- Increased Quantum Investment: Microsoft is heavily investing in its quantum computing ecosystem, introducing the Majorana 1 quantum processor aimed at enhancing computational stability and reducing errors, laying the groundwork for future commercialization.
- Data Center Expansion: The company added nearly 1 gigawatt of data center capacity in Q2 to address the challenge of Azure service demand exceeding supply, demonstrating its ongoing investment and strategic positioning in cloud infrastructure.
- Rapid AI Application Adoption: Microsoft’s Copilot user base surged over 160% year-over-year to 15 million paid users, showcasing its ability to successfully leverage AI in enterprise workflows, further driving revenue growth.
See More
Analysis of Investment Prospects for Nasdaq-100 Index Fund
- Tech Stocks Drive Market: In recent years, exceptional performances by tech stocks like Nvidia, Meta, and Broadcom have contributed to a more than 500% increase in the Nasdaq-100 index over the past decade, highlighting the significant impact of the tech sector on market returns.
- QQQ ETF Advantages: The Invesco QQQ ETF, the largest exchange-traded fund tracking the Nasdaq-100 index, manages approximately $395 billion in investor assets, and its expense ratio of 0.18% is well below the average, attracting a large number of investors.
- Investment Concentration Risk: The QQQ ETF's investments are heavily weighted towards companies with the largest market capitalizations, with Nvidia accounting for 8.4% and the smallest company, Atlassian, only receiving a 0.07% allocation, indicating that a disproportionate amount of investor capital is tied to a few mega-cap tech firms, increasing investment risk.
- Future Outlook: While the QQQ ETF may face short-term volatility, the rapid advancements in artificial intelligence and other technologies suggest that investors are likely to achieve significant wealth growth over the long term through this ETF.
See More
OpenAI Considers AI Deployment Contract with Microsoft
- Collaboration Potential: OpenAI is contemplating a contract with Microsoft to deploy its artificial intelligence technology, indicating further collaboration potential between the two in the field of technological innovation.
- Market Impact: This move could enhance OpenAI's competitiveness in the AI market while providing Microsoft with new technological advantages for its cloud services, driving growth for both companies.
- Technology Integration: By partnering with Microsoft, OpenAI can leverage its robust infrastructure and resources to accelerate the development and application of AI technologies, improving product market adaptability.
- Strategic Significance: This collaboration not only helps OpenAI expand its market share but may also drive technological advancements across the industry, promoting the widespread adoption and application of AI technologies.
See More
Google Identifies Coruna Hacking Tool Targeting iPhones
- Hacking Tool Identification: Google's Threat Intelligence Group officially identified a hacking tool named 'Coruna' targeting iPhones running iOS versions 13.0 to 17.2.1, revealing its use in attacks against Ukrainian users and by suspected Chinese hackers, highlighting the complexity of cybersecurity threats.
- Market Activity: The report indicates uncertainty about how hackers acquired the tool but suggests an active market for 'second-hand' zero-day exploits, which could encourage more hackers to seek out such tools for attacks, thereby increasing security risks for mobile devices.
- User Advisory: Google strongly urges iPhone users to update to the latest iOS version to prevent potential exploitation of security vulnerabilities, demonstrating the company's commitment to user safety and proactive stance against cybercrime.
- National Context: iVerify noted this is the first observed mass exploitation of mobile phones by a criminal group using tools likely developed by a nation-state, emphasizing the close relationship between national security and cybersecurity, which may prompt broader policy discussions.
See More
CrowdStrike Exceeds Expectations in Quarterly Results, AI Fuels Growth
- Significant Revenue Growth: CrowdStrike reported a 23% year-over-year revenue increase in Q4 FY2024, reaching $1.305 billion, surpassing the market expectation of $1.297 billion, indicating strong performance in the cybersecurity sector.
- Adjusted EPS Beat: The adjusted earnings per share (EPS) for the quarter was $1.12, exceeding the analyst estimate of $1.10, reflecting the company's sustained profitability, although shares dipped slightly in after-hours trading.
- Annual Recurring Revenue Surge: The net new annual recurring revenue totaled $331 million, above the analyst forecast of $304 million, representing a 47% year-over-year growth, marking a successful expansion in customer relationships and revenue stability.
- Optimistic Outlook: Management forecasts revenue for FY2027 to be between $5.87 billion and $5.93 billion, exceeding the FactSet consensus estimate of $5.86 billion, showcasing confidence in future growth driven by AI technology demand.
See More
Trump Announces Maritime Trade Insurance for Middle East
- Maritime Trade Assurance: Trump announced that the U.S. will provide insurance for 'ALL Maritime Trade' in the Middle East and may deploy the Navy to escort ships through the Strait of Hormuz if necessary, a move aimed at enhancing international shipping security and potentially increasing U.S. influence in global trade.
- Market Reaction: Following Trump's announcement, U.S. markets pared losses, with the Dow Jones Industrial Average ending down 403.51 points, or 0.83%, after dipping over 1,200 points at its lowest, indicating the market's sensitivity to geopolitical risks.
- Energy Price Risks: Analysts warn that European and Asian economies could be impacted by a surge in natural gas prices triggered by the ongoing war in the Middle East, as both regions are more exposed to potential gas price shocks compared to the U.S., which benefits from domestic shale and LNG production.
- Digital Service Outages: Outages in apps and digital services in the UAE have been reported following drone strikes on Amazon Web Services' data centers, which could disrupt business operations in the region and further exacerbate uncertainties stemming from geopolitical tensions.
See More
