Microsoft and Ericsson Launch Trusted Tech Alliance
A consortium of 15 companies led by Microsoft (MSFT) and Ericsson (ERIC) have launched the "Trusted Tech Alliance," an initiative built around five principles to safely use technology regardless of where it is developed, Reuters' Supantha Mukherjee reports. The alliance is meant to address concerns over where data is stored as the increasingly isolationist U.S. has sharpened Europe's and Asia's focus on so-called "digital sovereignty," the author notes. "This is a period of time when many governments and countries are feeling pressure to create stronger technology borders, to focus more on their own digital sovereignty," Microsoft President Brad Smith told Reuters in an interview. "Our companies are working together to set this high standard to really make clear what the definition of trust is," he added.
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- Funding Exceeds Expectations: Anthropic successfully raised $30 billion in its latest Series G funding round, achieving a valuation of $380 billion, which underscores the strong market demand for its AI products and solidifies its leadership position in enterprise AI.
- Significant Revenue Growth: The company's revenue run rate has reached $14 billion, growing more than tenfold over the past three years, indicating a substantial increase in market acceptance and usage of its products, particularly among enterprise clients.
- Surge in Claude Code Demand: Claude Code's revenue run rate now exceeds $2.5 billion, having doubled since the start of the year, with business subscriptions quadrupling since early 2026, reflecting deepening reliance on the tool by enterprises.
- Potential IPO Plans: Anthropic is reportedly working with advisors in preparation for a potential initial public offering later this year, signaling the company's confidence in future growth and its intention to leverage capital markets for further business expansion.
- Earnings Growth: Brookfield Corporation's distributable earnings increased by 11% in 2025 to $5.4 billion, supporting its ability to generate market-beating total returns, showcasing the company's strong profitability and competitive position.
- Asset Management Performance: The asset management segment grew its fee-bearing capital to $603 billion, driving a 22% increase in fee-related earnings to $3 billion, indicating robust performance and heightened market demand in asset management.
- Infrastructure Investment Opportunities: Brookfield estimates a need for $7 trillion in global investments over the next decade for data centers and power infrastructure, actively positioning itself in AI infrastructure through partnerships with companies like NVIDIA, demonstrating its forward-looking investment strategy.
- Shareholder Returns Enhancement: The company repurchased over $1 billion in shares last year and recently raised its dividend by 17%, which not only boosts shareholder confidence but also reflects the company's commitment to future growth and value creation.
- Strong Market Demand: Despite concerns over spending on hyperscale data centers, the demand in the AI sector remains robust, driving significant growth for companies like Nvidia and Broadcom, which are expected to benefit from this trend in the coming years.
- Significant Technological Edge: Nvidia's graphics processing units (GPUs) are the industry standard for AI computing, while Broadcom collaborates with AI hyperscalers to design custom chips, ensuring their competitiveness in the AI hardware market.
- Key Semiconductor Supply Chain: Taiwan Semiconductor Manufacturing Company (TSMC) fabricates logic chips for Nvidia and Broadcom, and its new 2-nanometer chip technology promises reduced power consumption, further solidifying its critical role in the AI technology supply chain.
- Surging Cloud Computing Demand: Following their latest earnings reports, Alphabet and Microsoft saw stock price declines; however, their strong demand and revenue growth in cloud computing (39% and 48% respectively) indicate that AI investments are justified and will continue to drive their business growth.
- Surging AI Hardware Demand: Nvidia and Broadcom are poised for strong growth due to massive spending in AI data centers, with Nvidia's GPUs being the industry standard for AI computing and Broadcom collaborating with AI hyperscalers to design custom chips, solidifying their market positions.
- Taiwan Semiconductor's Key Role: As the primary chip supplier for Nvidia and Broadcom, Taiwan Semiconductor plays an essential role in AI hardware components, and its new 2-nanometer chip technology promises reduced power consumption, supporting sustainable AI data center development and positioning it to benefit from rising AI spending.
- Cloud Giants' Performance: Alphabet and Microsoft reported robust cloud computing growth in their latest earnings, achieving revenue increases of 39% and 48% respectively; despite stock pullbacks, their investments in AI and strong market demand indicate significant future growth potential.
- Emerging Investment Opportunities: With ongoing AI investment trends, several stocks are emerging as potential buys, and analysts suggest that investors should consider increasing their positions during price pullbacks, particularly in companies like Nvidia and Broadcom, which are expected to shine in the coming years.
- Stock Performance: Nvidia's shares have surged 1180% since early 2023, currently priced at $187, with Wall Street analysts generally viewing the stock as undervalued, as the median target price of $250 implies a 33% upside.
- Market Share: Nvidia holds over 80% market share in AI accelerators, and its full-stack strategy allows it to capture 30% of total AI data center capital expenditures as profit, showcasing its formidable competitive position in AI infrastructure.
- Capex Forecast: AI hyperscaler capital expenditures are projected to reach $650 billion in 2026, significantly up from initial estimates of a 19% increase, now revised to 70%, which is positive news for Nvidia as it stands to gain a larger market share.
- Industry Trends: Companies like Alphabet, Amazon, Meta, and Microsoft have all indicated substantial increases in capital expenditures, forecasting $180 billion, $200 billion, $125 billion, and $140 billion respectively for 2026, highlighting that AI investments are driving growth across the industry.
- AI Tool Launch: Anthropic has introduced the Claude Cowork AI agent designed to simplify mundane tasks such as searching and organizing files, which has raised concerns among investors about the potential disruption to traditional software and digital automation providers.
- Market Reaction: The S&P North American Technology Software Index has plunged over 30% into bear market territory, reflecting investor fears that AI technologies could replace traditional software, although many experts disagree with this outlook.
- Expert Opinions: Nvidia CEO Jensen Huang and Wedbush analyst Dan Ives argue that the software industry is not in decline and that enterprises are unlikely to abandon decades of investment in software and infrastructure, creating buying opportunities for certain tech stocks.
- Stock Analysis: Companies like Microsoft, CrowdStrike, Snowflake, Salesforce, and Palantir are viewed as having strong growth potential in the AI sector, despite their stock prices having fallen from peaks, with analysts remaining optimistic about their future performance.









