NVIDIA Partners with Nebius, Investing $2 Billion
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.NVIDIA, NEBIUS PARTNERSHIP:Nvidiaand Nebius Group N.V.announced a strategic partnership to develop and deploy the next generation of hyperscale cloud for the AI market, from AI natives to enterprises. NVIDIA will invest $2 billion in Nebius, reflecting Nvidia's confidence in Nebius's business and unique depth of engineering expertise across the full AI technology stack. This partnership builds upon Nebius's ongoing deployment of Nvidia infrastructure across its global platform, including multiple gigawatt-scale AI factories in the U.S. To enable Nebius to deploy more than 5 gigawatts of capacity by the end of 2030, Nvidia will support Nebius's early adoption of the latest generation of Nvidia's accelerated computing platform.NEW MTIA CHIPS:Metasaid it is developing and deploying four new generations of MTIA chips within the next two years to support ranking and recommendations, along with GenAI workloads. The company also noted that it has "developed a competitive strategy for MTIA by prioritizing rapid, iterative development, an inference-first focus, and frictionless adoption by building natively on industry standards. Our new generations of chips expand on our custom silicon portfolio, which is at the center of our AI infrastructure strategy." "We're continuing to advance the MTIA roadmap by developing four new generations of chips, each bringing significant improvements in compute, memory bandwidth, and efficiency. MTIA 300 will be used for ranking and recommendations training, and is already in production. MTIA 400, 450 and 500 will be capable of handling all workloads, but we will primarily use these chips to support GenAI inference production in the near future and into 2027," it explained.HEALTH AI:In a Tuesday blog, Prakash Bulusu, Chief Technology Officer, Amazon Health Servicesand Andrew Diamond, Chief Medical Officer, Amazon One Medical, wrote, "Health AI is an agentic AI health assistant designed to make health care easier by providing you with insights into your health, helping you understand your medical records, and seamlessly connecting you with licensed health care professionals when you need them. While Health AI can provide general answers to health-related questions without an individual's medical information, it's designed to be a personalized health agent that knows you and your medical history so it can provide more helpful responses and take meaningful action, including connecting you to the professionals, treatments, and account services you need to get and stay well. Once you give permission to Health AI to access your health information, it can explain your lab results, diagnoses, and medical records, and it can provide more accurate, personalized answers to questions about your symptoms and medication. When you need professional care, Health AI connects you directly to One Medical providers through message, video, or in person. It can also help manage prescription renewals with Amazon Pharmacy or your pharmacy of choice, sending requests to your One Medical provider, and will provide relevant health care product recommendations from Amazon.com when you ask for them. Health AI launched earlier this year exclusively for One Medical members in the One Medical app, and the response has been overwhelmingly positive-from patients and providers. We want to bring Health AI to even more people, so we're expanding access to Amazon.com and the Amazon app. We're rolling this out to customers starting today and will continue expanding availability in the coming weeks, with a goal of making it available to all U.S. customers soon. Customers can sign up now at the Amazon Health page."AI ROBOT DEPLOYMENT:Mind Robotics announced a $500M Series A round, co-led by Accel and Andreessen Horowitz, to build and deploy AI-enabled robotic systems at industrial scale. Accel partner, Sameer Gandhi, will be joining the Board of Mind Robotics. This $500M financing, which is expected to close later this month, follows a seed financing of $115M led by Eclipse Capital in late 2025. Mind Robotics, founded and led by RivianCEO RJ Scaringe, operates with Rivian as a partner and major shareholder, providing a very large data flywheel for training the models and an at-scale launch environment.AI AGENT PROJECT:Macrohard, XAI's ambitious AI agent project, has stalled following leadership shake-ups and suspension of a data project involving 600 contractors, people familiar with the situation told Business Insider, Grace Kay. At the same time, Musk's other company, Tesla, has been ramping up its own AI agent project called "Digital Optimus," according to workers.NEMOTRON 3 SUPER:In a blog post, Kari Briski, vice president of generative AI software for enterprise at Nvidia,, "Launched today, NVIDIA Nemotron 3 Super is a 120-billion-parameter open model with 12 billion active parameters designed to run complex agentic AI systems at scale. Available now, the model combines advanced reasoning capabilities to efficiently complete tasks with high accuracy for autonomous agents. AI-Native Companies: Perplexity offers its users access to Nemotron 3 Super for search and as one of 20 orchestrated models in Computer. Companies offering software development agents like CodeRabbit, Factory and Greptile are integrating the model into their AI agents along with proprietary models to achieve higher accuracy at lower cost. And life sciences and frontier AI organizations like Edison Scientific and Lila Sciences will power their agents for deep literature search, data science and molecular understanding. Enterprise Software Platforms: Industry leaders such as Amdocs, Palantir, Cadence, Dassault Systemes and Siemens are deploying and customizing the model to automate workflows in telecom, cybersecurity, semiconductor design and manufacturing."AI COMPUTE TREASURE STRATEGY:VCI Globalannounced the launch of its AI Compute Treasury strategy. The strategy positions VCI Global within the expanding AI infrastructure economy. VCI Global's platform will be built on advanced GPU systems from Nvidia, including systems powered by next-generation Nvidia Blackwell RTX architecture, optimized for high-efficiency AI inference workloads.ROBOTICS FULFILLMENT CENTER:Amazon Australia has unveiled plans to invest more than AU$750M building a new robotics fulfillment center capable of processing over 125M packages per year. Targeted for completion in 2028, the site in Brisbane, Queensland will cover 150,000 square meters across four levels-with a floor size equivalent to 120 Olympic swimming pools.
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Nvidia Stock Pullback Amid Strong Fundamentals
- Stock Pullback: Nvidia's stock has dipped about 1% at the start of 2026, trading near $185 and 11% below its all-time highs; however, the company's business continues to grow at record levels, indicating strong underlying fundamentals.
- Earnings Growth: In fiscal 2026, Nvidia reported earnings per share (EPS) of $4.90, a 67% year-over-year increase, with analysts forecasting EPS to rise to $8.25 in fiscal 2027 and $10.74 in fiscal 2028, reflecting a potential 120% growth in earnings power over two years.
- Revenue Performance: Nvidia generated $68.1 billion in revenue during Q4, marking a 73% year-over-year increase, and analysts predict the company will achieve 70% revenue growth in the coming year, further solidifying its market leadership.
- Market Opportunities: Despite challenges such as trade tensions with China and increased competition, Nvidia is well-positioned to capture demand in multi-trillion-dollar markets through AI infrastructure investments and emerging applications like autonomous systems and physical AI, showcasing a favorable risk-reward profile.
Kite: The First AI Payment Blockchain
- Remarkable Market Performance: Since its launch late last year, Kite's price has surged by 205%, currently boasting a market cap of approximately $513 million, positioning it among the top 100 cryptocurrencies globally, indicating strong market demand and investor interest.
- Significant Investment Potential: With a current price of $0.28, Kite attracts investors looking for bargain-priced cryptocurrencies, reminiscent of early Bitcoin investment opportunities, potentially offering substantial returns for risk-tolerant investors.
- Unique Technological Foundation: Kite is a Layer-1 blockchain specifically designed for autonomous AI agents, serving as a base layer for these agents to manage, trade, and pay for data and services, marking a strategic convergence of AI and blockchain technology.
- Future Growth Expectations: If Kite can compete with Bittensor and reach a market cap of $2.2 billion, investors could see 4-fold returns, with the potential to become a top 10 cryptocurrency, implying a 20-fold investment return, showcasing immense growth potential.
Nvidia Plans $26 Billion Investment in Open-Source AI Development
- Future Investment Plan: Nvidia plans to invest $26 billion over the next five years to develop open-source AI models, aiming to enhance its competitiveness in the AI sector and align with its industry-leading AI chips, thereby driving the development and testing of next-generation AI models.
- Market Leadership: With its performance during the AI revolution, Nvidia's market capitalization has reached $4.5 trillion, making it the world's most valuable publicly traded company, showcasing its strong influence and market share in the rapidly growing AI market.
- Strengthened Competitive Advantage: Nvidia's CUDA programming platform and over 400 libraries help developers optimize GPU performance, and if it launches open-source AI models compatible with its GPUs, it will further enhance its market barriers and user loyalty.
- Outstanding Financial Performance: Since the onset of the AI revolution in 2023, Nvidia's revenue has surged over 1,000%, from $6 billion to $68 billion, while net income skyrocketed 2,940%, from $1.4 billion to $43 billion, reflecting its robust financial health and future growth potential.
Apple's AI Strategy Sparks Market Interest
- Market Position Recovery: Apple's stock has surged nearly 30% over the past few months, potentially allowing it to reclaim its market-leading status, despite its overall business experiencing sluggish growth with revenues fluctuating in the mid-single digits, leading investors to remain cautious about its future performance.
- Low AI Spending Attracts Investors: Apple's conservative approach to AI spending makes it more appealing in the current market, especially as the AI sector faces challenges; investors are increasingly favoring stable companies like Apple over those aggressively transforming into AI-first operations.
- Increased Competitive Pressure: While Apple enjoys high customer loyalty, the introduction of AI features by competitors poses a threat to its market share, and there is a risk that a game-changing feature could emerge, leading to potential user attrition and impacting Apple's ecosystem.
- Strategic Risks Emerge: Although Apple's cautious AI investment strategy has garnered market favor in the short term, if generative AI does not develop as expected, Apple may need to rely on external companies for computing capacity, which could challenge its future market position.
Apple's AI Investment Strategy Raises Concerns
- Market Recovery: Apple's (NASDAQ: AAPL) stock has surged nearly 30% over the past few months, indicating investor preference for its relatively low-risk investment strategy, despite significantly lower AI spending compared to peers.
- Increased Competitive Pressure: While Apple remains the most popular tech brand in the U.S., the introduction of AI features by competitors poses a challenge to user loyalty, which could impact its market share in the future.
- Investor Sentiment Shift: In contrast to Nvidia's (NASDAQ: NVDA) mere 5.5% gain since August, Apple's performance suggests that investors are gravitating towards companies that maintain a low profile in AI spending, reflecting a cautious approach to market volatility.
- Strategic Risk Assessment: Although Apple's conservative AI investment strategy may attract investors in the short term, failing to keep pace with industry changes could necessitate reliance on external computing capacity for its AI models, increasing future uncertainty.
Predictions for Schwab U.S. Dividend ETF Reconstitution
- Reconstitution Impact: The Schwab U.S. Dividend ETF undergoes annual reconstitution in March, with 17 stocks removed and 20 added in 2025, leading to a significant shift in sector allocations, as financials dropped from 17.2% to 8.5% while energy rose from 12.2% to 21%, indicating a potential strategic shift in investment focus.
- Financial Sector Comeback: Predictions suggest that the financial sector may reclaim its status as the largest holding in 2026, currently comprising 35 positions within the fund, and any improvements in these companies could lead to a substantial increase in their weighting, enhancing the fund's return potential.
- Energy Allocation Reduction: The current 20% allocation to energy is unprecedented, and a significant reduction is anticipated due to declining energy prices throughout 2025, which may adversely affect the financial metrics used by the fund, leading to a decrease in future reconstitution weightings.
- Tech Sector Increment: Although tech stocks are not typically dividend-focused, the AI revolution may lead to a modest increase in their weighting within the Schwab ETF, particularly for companies like Texas Instruments and Cisco Systems, which could benefit from strong revenue growth and potentially gain higher allocations.
Nvidia Stock Pullback Amid Strong Fundamentals
- Stock Pullback: Nvidia's stock has dipped about 1% at the start of 2026, trading near $185 and 11% below its all-time highs; however, the company's business continues to grow at record levels, indicating strong underlying fundamentals.
- Earnings Growth: In fiscal 2026, Nvidia reported earnings per share (EPS) of $4.90, a 67% year-over-year increase, with analysts forecasting EPS to rise to $8.25 in fiscal 2027 and $10.74 in fiscal 2028, reflecting a potential 120% growth in earnings power over two years.
- Revenue Performance: Nvidia generated $68.1 billion in revenue during Q4, marking a 73% year-over-year increase, and analysts predict the company will achieve 70% revenue growth in the coming year, further solidifying its market leadership.
- Market Opportunities: Despite challenges such as trade tensions with China and increased competition, Nvidia is well-positioned to capture demand in multi-trillion-dollar markets through AI infrastructure investments and emerging applications like autonomous systems and physical AI, showcasing a favorable risk-reward profile.
Kite: The First AI Payment Blockchain
- Remarkable Market Performance: Since its launch late last year, Kite's price has surged by 205%, currently boasting a market cap of approximately $513 million, positioning it among the top 100 cryptocurrencies globally, indicating strong market demand and investor interest.
- Significant Investment Potential: With a current price of $0.28, Kite attracts investors looking for bargain-priced cryptocurrencies, reminiscent of early Bitcoin investment opportunities, potentially offering substantial returns for risk-tolerant investors.
- Unique Technological Foundation: Kite is a Layer-1 blockchain specifically designed for autonomous AI agents, serving as a base layer for these agents to manage, trade, and pay for data and services, marking a strategic convergence of AI and blockchain technology.
- Future Growth Expectations: If Kite can compete with Bittensor and reach a market cap of $2.2 billion, investors could see 4-fold returns, with the potential to become a top 10 cryptocurrency, implying a 20-fold investment return, showcasing immense growth potential.
Nvidia Plans $26 Billion Investment in Open-Source AI Development
- Future Investment Plan: Nvidia plans to invest $26 billion over the next five years to develop open-source AI models, aiming to enhance its competitiveness in the AI sector and align with its industry-leading AI chips, thereby driving the development and testing of next-generation AI models.
- Market Leadership: With its performance during the AI revolution, Nvidia's market capitalization has reached $4.5 trillion, making it the world's most valuable publicly traded company, showcasing its strong influence and market share in the rapidly growing AI market.
- Strengthened Competitive Advantage: Nvidia's CUDA programming platform and over 400 libraries help developers optimize GPU performance, and if it launches open-source AI models compatible with its GPUs, it will further enhance its market barriers and user loyalty.
- Outstanding Financial Performance: Since the onset of the AI revolution in 2023, Nvidia's revenue has surged over 1,000%, from $6 billion to $68 billion, while net income skyrocketed 2,940%, from $1.4 billion to $43 billion, reflecting its robust financial health and future growth potential.
Apple's AI Strategy Sparks Market Interest
- Market Position Recovery: Apple's stock has surged nearly 30% over the past few months, potentially allowing it to reclaim its market-leading status, despite its overall business experiencing sluggish growth with revenues fluctuating in the mid-single digits, leading investors to remain cautious about its future performance.
- Low AI Spending Attracts Investors: Apple's conservative approach to AI spending makes it more appealing in the current market, especially as the AI sector faces challenges; investors are increasingly favoring stable companies like Apple over those aggressively transforming into AI-first operations.
- Increased Competitive Pressure: While Apple enjoys high customer loyalty, the introduction of AI features by competitors poses a threat to its market share, and there is a risk that a game-changing feature could emerge, leading to potential user attrition and impacting Apple's ecosystem.
- Strategic Risks Emerge: Although Apple's cautious AI investment strategy has garnered market favor in the short term, if generative AI does not develop as expected, Apple may need to rely on external companies for computing capacity, which could challenge its future market position.
Apple's AI Investment Strategy Raises Concerns
- Market Recovery: Apple's (NASDAQ: AAPL) stock has surged nearly 30% over the past few months, indicating investor preference for its relatively low-risk investment strategy, despite significantly lower AI spending compared to peers.
- Increased Competitive Pressure: While Apple remains the most popular tech brand in the U.S., the introduction of AI features by competitors poses a challenge to user loyalty, which could impact its market share in the future.
- Investor Sentiment Shift: In contrast to Nvidia's (NASDAQ: NVDA) mere 5.5% gain since August, Apple's performance suggests that investors are gravitating towards companies that maintain a low profile in AI spending, reflecting a cautious approach to market volatility.
- Strategic Risk Assessment: Although Apple's conservative AI investment strategy may attract investors in the short term, failing to keep pace with industry changes could necessitate reliance on external computing capacity for its AI models, increasing future uncertainty.
Predictions for Schwab U.S. Dividend ETF Reconstitution
- Reconstitution Impact: The Schwab U.S. Dividend ETF undergoes annual reconstitution in March, with 17 stocks removed and 20 added in 2025, leading to a significant shift in sector allocations, as financials dropped from 17.2% to 8.5% while energy rose from 12.2% to 21%, indicating a potential strategic shift in investment focus.
- Financial Sector Comeback: Predictions suggest that the financial sector may reclaim its status as the largest holding in 2026, currently comprising 35 positions within the fund, and any improvements in these companies could lead to a substantial increase in their weighting, enhancing the fund's return potential.
- Energy Allocation Reduction: The current 20% allocation to energy is unprecedented, and a significant reduction is anticipated due to declining energy prices throughout 2025, which may adversely affect the financial metrics used by the fund, leading to a decrease in future reconstitution weightings.
- Tech Sector Increment: Although tech stocks are not typically dividend-focused, the AI revolution may lead to a modest increase in their weighting within the Schwab ETF, particularly for companies like Texas Instruments and Cisco Systems, which could benefit from strong revenue growth and potentially gain higher allocations.
