Meta Delays Avocado AI Launch to May
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.AVOCADO AI DELAYED:Metahas delayed the launch of its Avocado AI model to at least May over performance concerns and has discussed temporarily licensing Gemini to power its products, The New York Times' Eli Tan. While Avocado outperformed Meta's previous AI model and did better from Google'sGemini 2.5 model from March, it has not performed as strongly as Gemini 3.0 from November, people familiar with the matter say.NVIDIA CHIPS:ByteDance is working with Aolani Cloud to use 500 NvidiaBlackwell computing systems in Malaysia, totaling around 36,000 B200 chips, in an effort to become a global AI leader, Jon Emont and Liza Lin of The Wall Street Journal, people familiar with the matter told the Journal. ByteDance intends to use the computing power for AI research and development outside of China, the sources added.AI CONSULTING JV:Anthropic is in talks with Blackstoneand other private equity firms to form a joint venture selling consulting services for integrating Claude into portfolio companies, The Information's Anissa Gardizy, Valida Pau, and Stephanie Palazzolo.CLAUDE PARTNER NETWORK:Anthropic said it is launching the Claude Partner Network, a program for partner organizations helping enterprises adopt Claude. The company is committing an initial $100M to support its partners with training courses, dedicated technical support, and joint market development. Partners who join from today will get immediate access to a new technical certification and be eligible for investment, says Anthropic. Alongside the network, the company is introducing the first Claude technical certification: Claude Certified Architect, Foundations, available today for partners. This is a technical exam for solution architects building production applications with Claude. Later this year, the company says it will introduce additional certifications for sellers, architects, and developers. Partners who join the network now will get priority access to new certifications as they roll out. Finally, Anthropic is launching a Code Modernization starter kit, which gives its partners a straightforward starting point for migrating legacy codebases and remediating enterprises' technical debt. "This is one of the highest-demand enterprise workloads, and one where Claude's agentic coding capabilities most directly translate into client outcomes," the company adds.MORE NEWS FOR META AI:In a blog, Metaannounced it is partnering with a variety of news outlets, including News Corp, Le Figaro, Prisa and Sueddeutsche Zeitung, to integrate real-time news stories into Meta AI responses. "We're committed to making Meta AI more responsive, accurate, and balanced," the Facebook parent said. "Real-time events can be challenging for current AI systems to keep up with, but by integrating more and different types of news sources, our aim is to improve Meta AI's ability to deliver timely and relevant content and information with a wide variety of viewpoints and content types. We have consistently emphasized that our business decisions are driven by the goal of providing valuable experiences for people who use our technologies. We are excited about the ways people are using Meta AI, whether it's to spark new ideas, edit and animate media, dive deeper into topics of interest, find creative inspiration, and more. As our products evolve, we continue to experiment with different Meta AI experiences for everyone using our services."AI INFERENCE SOLUTIONS:Amazon Web Servicesand Cerebras Systems announced a collaboration that will, in the coming months, deliver the "fastest AI inference solutions available for generative AI applications and LLM workloads." The solution, to be deployed on Amazon Bedrock in AWS data centers, combines AWS Trainium-powered servers, Cerebras CS-3 systems, and Elastic Fabric Adapter networking. Later this year, AWS will also offer leading open-source LLMs and Amazon Nova using Cerebras hardware. "Inference is where AI delivers real value to customers, but speed remains a critical bottleneck for demanding workloads like real-time coding assistance and interactive applications," said David Brown, Vice President, Compute & ML Services, AWS. "What we're building with Cerebras solves that: by splitting the inference workload across Trainium and CS-3, and connecting them with Amazon's Elastic Fabric Adapter, each system does what it's best at. The result will be inference that's an order of magnitude faster and higher performance than what's available today."
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Nvidia Reports 65% Revenue Growth in Fiscal 2026
- Significant Revenue Growth: Nvidia reported a revenue of $215.9 billion for fiscal 2026, reflecting a 65% year-over-year increase, despite a 10.2% decline in stock price so far in 2026, indicating market concerns about the sustainability of AI infrastructure spending.
- Robust AI Demand Outlook: CEO Jensen Huang announced at the GTC AI Conference that demand for AI systems is projected to reach at least $1 trillion in 2026 and 2027, a substantial increase from the previous estimate of $500 billion, highlighting the long-term trend in AI infrastructure development.
- Diversified Customer Base: Nvidia's business is composed of 60% from hyperscalers and 40% from enterprises, sovereign AI projects, startups, and emerging applications, ensuring that the company is not overly reliant on any single industry, thereby mitigating market risks.
- Continuous Product Innovation: Nvidia is actively launching new products, with ongoing deployments of Hopper systems and ramping up Blackwell systems, while future platforms like Rubin and Feynman are already in development, enhancing the company's competitive edge in the market.
Investors Remain Bullish on Artificial Intelligence Stocks
- Investor Confidence: According to recent research by The Motley Fool, 59% of investors surveyed on March 3, 2026, hold AI stocks, indicating strong investor confidence in AI despite the tech sector's slump.
- Youth Engagement: The survey reveals that Gen Z and millennials have the highest AI stock ownership rates at 67% and 66%, respectively, highlighting the younger generation's keen interest and willingness to invest in future technologies.
- Major Investment Plans: Leading tech giants like Alphabet, Amazon, Meta, and Microsoft are projected to spend between $600 billion and $700 billion on AI data centers by 2026, reflecting their commitment to the AI sector and confidence in future growth.
- Nvidia's Success Story: Nvidia's stock has surged 1,190% over the past five years, exemplifying a successful investment in AI infrastructure, which encourages investors to consider opportunities in this rapidly evolving field.
Nike's Earnings Fall Short of Expectations, Stock Plummets
- Flat Earnings Report: Nike's Q3 revenue stood at $11.28 billion, flat year-over-year and down 3% in constant currency, slightly exceeding the market expectation of $11.23 billion; however, this lackluster performance led to a 9% drop in after-hours trading, reflecting investor disappointment.
- Declining Gross Margin: The gross margin fell by 130 basis points to 40.2%, primarily due to tariffs in North America, while selling, general, and administrative expenses rose 2% to $3.98 billion, resulting in a 23% decline in operating income to $635 million, indicating increasing cost pressures.
- Inventory Clearance Strategy: Management indicated that efforts to clear excess inventory of classic styles resulted in a five-point revenue headwind this quarter, with expectations of a continued revenue decline of 2%-4% in the upcoming quarters, highlighting the slow progress of Nike's turnaround and dampening investor confidence.
- Running Category Growth: Despite overall struggles, revenue from the running category surged over 20%, and North American footwear sales grew 6%, showcasing potential in specific areas; management hopes to leverage this success across other sports categories, yet concerns about ongoing revenue declines persist.
Nvidia Leads Stock Success in AI Boom
- Nvidia's Outstanding Performance: Nvidia stands out in the AI boom, reporting triple-digit revenue growth last year and a remarkable 73% increase in the current quarter, elevating its market cap to $4 trillion and showcasing its formidable competitive edge in the AI sector.
- Micron Technology's Rapid Growth: Micron Technology achieved $23.9 billion in revenue for Q2 of fiscal 2026, marking a 196% growth rate primarily driven by demand for high-bandwidth memory, with analysts forecasting a continued revenue growth of 191% in the coming year, indicating strong potential in the AI market.
- CoreWeave's Surge in Cloud Demand: CoreWeave's AI-native cloud platform revenue soared to nearly $1.6 billion in Q4, a 110% increase, despite facing a backlog of almost $67 billion and over $21 billion in debt; analysts predict a 143% revenue growth in the upcoming fiscal year, reflecting sustained market demand.
- Nebius Group's Rapid Ascent: Nebius Group reported $228 million in revenue for Q4, a staggering 547% growth, with forecasts suggesting a 523% increase in the next year; despite a high P/S ratio of 41 potentially limiting near-term upside, its long-term growth potential remains strong due to insatiable demand for AI-ready capacity.
Micron Technology Reports 196% Revenue Growth Amid AI Demand
- Significant Revenue Growth: Micron Technology reported $23.9 billion in revenue for Q2 of fiscal 2026, marking a 196% increase, primarily driven by the strong demand for high-bandwidth memory (HBM), solidifying its leadership in the AI applications market.
- Optimistic Market Outlook: Despite the cyclical nature of the memory industry, analysts forecast a 191% revenue growth for Micron in the current fiscal year, indicating strong growth potential and positioning it as one of the best-performing stocks of 2026.
- CoreWeave's Strong Performance: CoreWeave's AI-native cloud platform generated nearly $1.6 billion in revenue in Q4, a 110% increase, but faces challenges with a backlog of $67 billion and over $21 billion in debt, although a 143% revenue growth is expected in the upcoming fiscal year.
- Rapid Rise of Nebius: Nebius achieved $228 million in revenue in Q4, with an astounding growth rate of 547%, and is projected to maintain a 523% growth rate over the next year, although its high price-to-sales ratio of 41 may limit short-term upside potential.
Lattice Semiconductor Shares Rise After Nvidia's Strategic Investment
- Stock Price Surge: Shares of Lattice Semiconductor rose 4.8% following Nvidia's announcement of a strategic partnership and a $2 billion investment in Marvell Technology, indicating increased market confidence in the semiconductor sector.
- Industry Impact: Marvell's stock jumped 6.9%, and Nvidia's shares also climbed, suggesting that the collaboration aims to connect Marvell to NVIDIA's AI ecosystem via NVLink Fusion technology, enhancing customer flexibility in developing advanced infrastructure.
- Market Volatility: Lattice Semiconductor has experienced 32 moves greater than 5% over the past year, and while today's increase is seen as significant, it does not fundamentally alter the market's perception of the company's business.
- Trade Tensions: China's investigation into U.S. trade practices could impact U.S. tech companies, particularly in the semiconductor sector, as geopolitical tensions in the Middle East tighten helium supplies, driving up production costs.
Nvidia Reports 65% Revenue Growth in Fiscal 2026
- Significant Revenue Growth: Nvidia reported a revenue of $215.9 billion for fiscal 2026, reflecting a 65% year-over-year increase, despite a 10.2% decline in stock price so far in 2026, indicating market concerns about the sustainability of AI infrastructure spending.
- Robust AI Demand Outlook: CEO Jensen Huang announced at the GTC AI Conference that demand for AI systems is projected to reach at least $1 trillion in 2026 and 2027, a substantial increase from the previous estimate of $500 billion, highlighting the long-term trend in AI infrastructure development.
- Diversified Customer Base: Nvidia's business is composed of 60% from hyperscalers and 40% from enterprises, sovereign AI projects, startups, and emerging applications, ensuring that the company is not overly reliant on any single industry, thereby mitigating market risks.
- Continuous Product Innovation: Nvidia is actively launching new products, with ongoing deployments of Hopper systems and ramping up Blackwell systems, while future platforms like Rubin and Feynman are already in development, enhancing the company's competitive edge in the market.
Investors Remain Bullish on Artificial Intelligence Stocks
- Investor Confidence: According to recent research by The Motley Fool, 59% of investors surveyed on March 3, 2026, hold AI stocks, indicating strong investor confidence in AI despite the tech sector's slump.
- Youth Engagement: The survey reveals that Gen Z and millennials have the highest AI stock ownership rates at 67% and 66%, respectively, highlighting the younger generation's keen interest and willingness to invest in future technologies.
- Major Investment Plans: Leading tech giants like Alphabet, Amazon, Meta, and Microsoft are projected to spend between $600 billion and $700 billion on AI data centers by 2026, reflecting their commitment to the AI sector and confidence in future growth.
- Nvidia's Success Story: Nvidia's stock has surged 1,190% over the past five years, exemplifying a successful investment in AI infrastructure, which encourages investors to consider opportunities in this rapidly evolving field.
Nike's Earnings Fall Short of Expectations, Stock Plummets
- Flat Earnings Report: Nike's Q3 revenue stood at $11.28 billion, flat year-over-year and down 3% in constant currency, slightly exceeding the market expectation of $11.23 billion; however, this lackluster performance led to a 9% drop in after-hours trading, reflecting investor disappointment.
- Declining Gross Margin: The gross margin fell by 130 basis points to 40.2%, primarily due to tariffs in North America, while selling, general, and administrative expenses rose 2% to $3.98 billion, resulting in a 23% decline in operating income to $635 million, indicating increasing cost pressures.
- Inventory Clearance Strategy: Management indicated that efforts to clear excess inventory of classic styles resulted in a five-point revenue headwind this quarter, with expectations of a continued revenue decline of 2%-4% in the upcoming quarters, highlighting the slow progress of Nike's turnaround and dampening investor confidence.
- Running Category Growth: Despite overall struggles, revenue from the running category surged over 20%, and North American footwear sales grew 6%, showcasing potential in specific areas; management hopes to leverage this success across other sports categories, yet concerns about ongoing revenue declines persist.
Nvidia Leads Stock Success in AI Boom
- Nvidia's Outstanding Performance: Nvidia stands out in the AI boom, reporting triple-digit revenue growth last year and a remarkable 73% increase in the current quarter, elevating its market cap to $4 trillion and showcasing its formidable competitive edge in the AI sector.
- Micron Technology's Rapid Growth: Micron Technology achieved $23.9 billion in revenue for Q2 of fiscal 2026, marking a 196% growth rate primarily driven by demand for high-bandwidth memory, with analysts forecasting a continued revenue growth of 191% in the coming year, indicating strong potential in the AI market.
- CoreWeave's Surge in Cloud Demand: CoreWeave's AI-native cloud platform revenue soared to nearly $1.6 billion in Q4, a 110% increase, despite facing a backlog of almost $67 billion and over $21 billion in debt; analysts predict a 143% revenue growth in the upcoming fiscal year, reflecting sustained market demand.
- Nebius Group's Rapid Ascent: Nebius Group reported $228 million in revenue for Q4, a staggering 547% growth, with forecasts suggesting a 523% increase in the next year; despite a high P/S ratio of 41 potentially limiting near-term upside, its long-term growth potential remains strong due to insatiable demand for AI-ready capacity.
Micron Technology Reports 196% Revenue Growth Amid AI Demand
- Significant Revenue Growth: Micron Technology reported $23.9 billion in revenue for Q2 of fiscal 2026, marking a 196% increase, primarily driven by the strong demand for high-bandwidth memory (HBM), solidifying its leadership in the AI applications market.
- Optimistic Market Outlook: Despite the cyclical nature of the memory industry, analysts forecast a 191% revenue growth for Micron in the current fiscal year, indicating strong growth potential and positioning it as one of the best-performing stocks of 2026.
- CoreWeave's Strong Performance: CoreWeave's AI-native cloud platform generated nearly $1.6 billion in revenue in Q4, a 110% increase, but faces challenges with a backlog of $67 billion and over $21 billion in debt, although a 143% revenue growth is expected in the upcoming fiscal year.
- Rapid Rise of Nebius: Nebius achieved $228 million in revenue in Q4, with an astounding growth rate of 547%, and is projected to maintain a 523% growth rate over the next year, although its high price-to-sales ratio of 41 may limit short-term upside potential.
Lattice Semiconductor Shares Rise After Nvidia's Strategic Investment
- Stock Price Surge: Shares of Lattice Semiconductor rose 4.8% following Nvidia's announcement of a strategic partnership and a $2 billion investment in Marvell Technology, indicating increased market confidence in the semiconductor sector.
- Industry Impact: Marvell's stock jumped 6.9%, and Nvidia's shares also climbed, suggesting that the collaboration aims to connect Marvell to NVIDIA's AI ecosystem via NVLink Fusion technology, enhancing customer flexibility in developing advanced infrastructure.
- Market Volatility: Lattice Semiconductor has experienced 32 moves greater than 5% over the past year, and while today's increase is seen as significant, it does not fundamentally alter the market's perception of the company's business.
- Trade Tensions: China's investigation into U.S. trade practices could impact U.S. tech companies, particularly in the semiconductor sector, as geopolitical tensions in the Middle East tighten helium supplies, driving up production costs.
