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
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: 419.090
Low
500.00
Averages
631.36
High
678.00
Current: 419.090
Low
500.00
Averages
631.36
High
678.00
About MSFT
Microsoft Corporation is a technology company. The Company develops and supports software, services, devices, and solutions. The Company’s segments include Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment consists of products and services in its portfolio of productivity, communication, and information services. This segment primarily comprises: Office Commercial, Office Consumer, LinkedIn, and Dynamics business solutions. The Intelligent Cloud segment consists of server products and cloud services, including Azure and other cloud services, SQL Server, Windows Server, Visual Studio, System Center, and related Client Access Licenses (CALs), and Nuance and GitHub; and Enterprise Services, including enterprise support services, industry solutions and Nuance professional services. The More Personal Computing segment primarily comprises Windows, Devices, Gaming, and search and news advertising.
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 AI Investments Drive Strong Growth
- Surge in Capital Expenditure: Microsoft plans to ramp up capital expenditures to $190 billion in the second half of 2026, which has pressured stock prices; however, the company's strong returns on invested capital indicate significant long-term growth potential.
- Azure Revenue Growth: Azure's revenue surged 40% in the most recent quarter, driven by both AI and non-AI services, demonstrating the company's sustained competitiveness in the cloud computing market.
- Strong Microsoft 365 Performance: Commercial software sales rose 19% year-over-year, while consumer version revenue increased by 33%, and Copilot user additions soared 250%, highlighting robust market demand and growth potential for the product.
- Analysts' Optimistic Outlook: Despite shares trading at about 25 times forward earnings expectations, analysts foresee a 30% increase in Microsoft's stock over the next year, reflecting confidence in its ongoing profitability and investment returns.
See More
OpenAI Expected to File for IPO Soon
- Upcoming IPO Filing: OpenAI is expected to file for its initial public offering (IPO) in the coming days or weeks, backed by Microsoft, indicating strong growth potential in the AI sector.
- Valuation Surge: The latest funding round has propelled OpenAI's valuation to $852 billion, with a monthly revenue of $2 billion, showcasing the success of its business model and robust market demand.
- Industry Impact: This news comes just two days after OpenAI CEO Sam Altman won a lawsuit against Tesla CEO Elon Musk, further solidifying its market position.
- Market Frenzy: With OpenAI and Anthropic preparing for IPOs, the investment frenzy in the AI sector is intensifying, attracting increased attention from investors.
See More
Nebius Group Stock Soars 5.3x Amid Strong AI Infrastructure Demand
- Stock Surge: Nebius Group's stock has skyrocketed 5.3x over the past year, reflecting strong market demand for AI data center computing capacity, which has rapidly propelled the company's business growth and attracted significant investor interest.
- Revenue Explosion: In Q1 2026, Nebius reported a staggering 7.8x year-over-year revenue increase to $399 million, demonstrating the success of its full-stack AI infrastructure strategy, with overall revenue expected to reach between $3 billion and $3.4 billion this year, a potential 6x increase from last year.
- EBITDA Improvement: Nebius' adjusted EBITDA surged from a loss of $53.7 million last year to $129.5 million last quarter, achieving a 32% EBITDA margin, with expectations to rise to 40% by the end of 2026, significantly enhancing the company's profitability.
- Data Center Expansion Plans: Nebius aims to expand its active data center power capacity from 170 megawatts to between 800 megawatts and 1 gigawatt by the end of 2026, with a long-term goal of achieving 5 gigawatts by 2030, laying a solid foundation for future revenue growth.
See More
US Stocks Rise as Market Optimism Grows
- Strong Market Performance: The S&P 500 rose by 0.54%, the Nasdaq 100 increased by 0.53%, and the Dow Jones Industrial Average reached an all-time high, reflecting market optimism regarding a potential peace deal between the US and Iran, which could boost investor confidence.
- Software Stocks Lead Gains: Workday's stock surged over 8% after reporting Q1 adjusted EPS of $2.66, exceeding the consensus of $2.51, and forecasting Q2 subscription revenue of $2.46 billion, further enhancing confidence in the software sector.
- Oil Price Volatility Affects Markets: Crude oil prices dipped slightly as Qatar coordinated with the US to send a negotiating team to Tehran, raising concerns about future supply; the IEA warned that global oil inventories will remain tight, potentially impacting overall economic growth.
- International Markets Rebound: The Euro Stoxx 50 climbed 1.23%, China's Shanghai Composite rose 0.87%, and Japan's Nikkei increased by 2.68%, indicating a global market optimism that may provide support for the US market.
See More
Nebius Poised for Massive Growth with Data Center Expansion
- Revenue Surge: Nebius reported a staggering 7.8x year-over-year revenue increase in Q1 2026, reaching $399 million, reflecting strong demand in the AI data center market, which is expected to drive future profitability and market share.
- EBITDA Improvement: The company's adjusted EBITDA soared from a loss of $53.7 million last year to $129.5 million, achieving a 32% EBITDA margin, with expectations to rise to 40% by the end of 2026, enhancing investor confidence.
- Data Center Expansion Plans: Nebius aims to expand its active data center power capacity from 170 MW to between 800 MW and 1 GW by the end of 2026, potentially generating over $46 billion in revenue backlog from contracts with Meta and Microsoft, ensuring long-term growth.
- Clear Long-Term Goals: The company anticipates deploying 5 GW of active data center capacity by the end of 2030, a fivefold increase from this year's target, which will support its software service sales and further solidify its market position.
See More
Investment Value Comparison: Microsoft vs. Meta
- AI Strategic Positioning: Microsoft has rolled out its AI assistant Copilot within its business productivity software, generating billions in subscription revenue, while Azure's revenue grew by 40% in the latest fiscal quarter, marking it as the company's fastest-growing segment, showcasing strong performance in the AI sector.
- Ad Revenue Growth: Meta's revenue rose 33% year-over-year in Q1, with nearly all growth attributed to its ad business; although its AI products are still in development, AI has significantly transformed how ads are created and deployed, enhancing overall revenue potential.
- Capital Expenditure Comparison: Both companies are spending hundreds of billions annually on data center construction, with Microsoft's capital expenditures being more accepted by investors due to its clear monetization path through cloud services, while Meta's investments have yet to yield profits, leading to market skepticism.
- Cash Flow Assessment: From a cash flow perspective, Meta's price-to-cash-from-operations ratio is lower, while Microsoft's has dipped below 20, indicating its AI business is thriving; thus, Microsoft is viewed as a more attractive investment in the current market landscape.
See More
Microsoft's AI Investments Drive Strong Growth
- Surge in Capital Expenditure: Microsoft plans to ramp up capital expenditures to $190 billion in the second half of 2026, which has pressured stock prices; however, the company's strong returns on invested capital indicate significant long-term growth potential.
- Azure Revenue Growth: Azure's revenue surged 40% in the most recent quarter, driven by both AI and non-AI services, demonstrating the company's sustained competitiveness in the cloud computing market.
- Strong Microsoft 365 Performance: Commercial software sales rose 19% year-over-year, while consumer version revenue increased by 33%, and Copilot user additions soared 250%, highlighting robust market demand and growth potential for the product.
- Analysts' Optimistic Outlook: Despite shares trading at about 25 times forward earnings expectations, analysts foresee a 30% increase in Microsoft's stock over the next year, reflecting confidence in its ongoing profitability and investment returns.
See More
OpenAI Expected to File for IPO Soon
- Upcoming IPO Filing: OpenAI is expected to file for its initial public offering (IPO) in the coming days or weeks, backed by Microsoft, indicating strong growth potential in the AI sector.
- Valuation Surge: The latest funding round has propelled OpenAI's valuation to $852 billion, with a monthly revenue of $2 billion, showcasing the success of its business model and robust market demand.
- Industry Impact: This news comes just two days after OpenAI CEO Sam Altman won a lawsuit against Tesla CEO Elon Musk, further solidifying its market position.
- Market Frenzy: With OpenAI and Anthropic preparing for IPOs, the investment frenzy in the AI sector is intensifying, attracting increased attention from investors.
See More
Nebius Group Stock Soars 5.3x Amid Strong AI Infrastructure Demand
- Stock Surge: Nebius Group's stock has skyrocketed 5.3x over the past year, reflecting strong market demand for AI data center computing capacity, which has rapidly propelled the company's business growth and attracted significant investor interest.
- Revenue Explosion: In Q1 2026, Nebius reported a staggering 7.8x year-over-year revenue increase to $399 million, demonstrating the success of its full-stack AI infrastructure strategy, with overall revenue expected to reach between $3 billion and $3.4 billion this year, a potential 6x increase from last year.
- EBITDA Improvement: Nebius' adjusted EBITDA surged from a loss of $53.7 million last year to $129.5 million last quarter, achieving a 32% EBITDA margin, with expectations to rise to 40% by the end of 2026, significantly enhancing the company's profitability.
- Data Center Expansion Plans: Nebius aims to expand its active data center power capacity from 170 megawatts to between 800 megawatts and 1 gigawatt by the end of 2026, with a long-term goal of achieving 5 gigawatts by 2030, laying a solid foundation for future revenue growth.
See More
US Stocks Rise as Market Optimism Grows
- Strong Market Performance: The S&P 500 rose by 0.54%, the Nasdaq 100 increased by 0.53%, and the Dow Jones Industrial Average reached an all-time high, reflecting market optimism regarding a potential peace deal between the US and Iran, which could boost investor confidence.
- Software Stocks Lead Gains: Workday's stock surged over 8% after reporting Q1 adjusted EPS of $2.66, exceeding the consensus of $2.51, and forecasting Q2 subscription revenue of $2.46 billion, further enhancing confidence in the software sector.
- Oil Price Volatility Affects Markets: Crude oil prices dipped slightly as Qatar coordinated with the US to send a negotiating team to Tehran, raising concerns about future supply; the IEA warned that global oil inventories will remain tight, potentially impacting overall economic growth.
- International Markets Rebound: The Euro Stoxx 50 climbed 1.23%, China's Shanghai Composite rose 0.87%, and Japan's Nikkei increased by 2.68%, indicating a global market optimism that may provide support for the US market.
See More
Nebius Poised for Massive Growth with Data Center Expansion
- Revenue Surge: Nebius reported a staggering 7.8x year-over-year revenue increase in Q1 2026, reaching $399 million, reflecting strong demand in the AI data center market, which is expected to drive future profitability and market share.
- EBITDA Improvement: The company's adjusted EBITDA soared from a loss of $53.7 million last year to $129.5 million, achieving a 32% EBITDA margin, with expectations to rise to 40% by the end of 2026, enhancing investor confidence.
- Data Center Expansion Plans: Nebius aims to expand its active data center power capacity from 170 MW to between 800 MW and 1 GW by the end of 2026, potentially generating over $46 billion in revenue backlog from contracts with Meta and Microsoft, ensuring long-term growth.
- Clear Long-Term Goals: The company anticipates deploying 5 GW of active data center capacity by the end of 2030, a fivefold increase from this year's target, which will support its software service sales and further solidify its market position.
See More
Investment Value Comparison: Microsoft vs. Meta
- AI Strategic Positioning: Microsoft has rolled out its AI assistant Copilot within its business productivity software, generating billions in subscription revenue, while Azure's revenue grew by 40% in the latest fiscal quarter, marking it as the company's fastest-growing segment, showcasing strong performance in the AI sector.
- Ad Revenue Growth: Meta's revenue rose 33% year-over-year in Q1, with nearly all growth attributed to its ad business; although its AI products are still in development, AI has significantly transformed how ads are created and deployed, enhancing overall revenue potential.
- Capital Expenditure Comparison: Both companies are spending hundreds of billions annually on data center construction, with Microsoft's capital expenditures being more accepted by investors due to its clear monetization path through cloud services, while Meta's investments have yet to yield profits, leading to market skepticism.
- Cash Flow Assessment: From a cash flow perspective, Meta's price-to-cash-from-operations ratio is lower, while Microsoft's has dipped below 20, indicating its AI business is thriving; thus, Microsoft is viewed as a more attractive investment in the current market landscape.
See More
