AI Stocks & Markets

Today's Stories

1. 1

   Tesla Slumps 21% YTD as AI Pitch Hits Spending Wall

   Tesla trades at $354.08 with a 369x earnings multiple, a 1.4% operating margin, and negative $1.1 billion free cash flow, prompting a Sell rating. The stock has slid 21.27% year to date despite a 10.12% bounce in the last month. Management is pitching Tesla as an AI company via Robotaxi, the Optimus humanoid robot, in-house AI chips, and a planned Austin semiconductor fab. However, the story collides with a brutal spending cycle, as management guided capex above $25 billion for 2026 backed by a new $30 billion borrowing facility, while Optimus carries just 3% year-end launch odds.

   The bull case hinges on whether AI, software, and fleet revenue eventually join "hardware-related profits." Q2 revenue hit $28.24 billion, up 25.5% year over year, with 1.48 million active FSD subscriptions (up 56%) and a live Robotaxi fleet across seven U.S. metros—yet GAAP EPS still missed estimates by 39%.

2. 2

   Berkshire's New CEO Greg Abel Sees AI Growth Opportunities

   Greg Abel took over as CEO of Berkshire Hathaway at the start of 2026, and he is actively looking at artificial intelligence as a growth opportunity. He sees potential in both tech and energy sectors, noting in a recent CNBC interview that "energy would be the constraint" for data center development. This marks a clear shift from Warren Buffett's cautious approach to tech investing. Abel is more comfortable with AI and has added to the company's position in Alphabet, which Buffett started last year. Investors who wanted more growth from Berkshire may find this openness encouraging.

   Whether Berkshire will invest in more tech and energy companies to capitalize on AI-related opportunities. The stock's returns are flat this year, but the company's disciplined approach combined with Abel's willingness to embrace AI could make it a stronger long-term investment.

3. 3

   Applied Materials Could Be 28% Undervalued as AI Chip Rally Lifts Interest

   Applied Materials (AMAT) is highlighted as potentially 28% undervalued, amid rising interest driven by the AI chip rally. This suggests that the company's stock price may not fully reflect its growth prospects in the AI semiconductor equipment market, which could present an opportunity for investors.

   The valuation hinges on whether the AI chip rally sustains and translates into stronger earnings for AMAT. Watch the company's upcoming earnings reports to see if this undervaluation narrows.

4. 4

   Goldman Sachs: AI Trade Barely Started, But Leaders Will Change

   Goldman Sachs has stated that the AI trade is barely started, but the stocks that have driven gains so far will not lead future growth. This suggests that investors who have benefited from current AI stock leaders may need to look elsewhere for continued gains, as the next phase of the AI trade could favor different companies.

   Whether the market rotation away from current AI leaders accelerates, and which sectors or companies emerge as the new beneficiaries.

5. 5

   BlackRock warns of AI boom vs debt

   BlackRock, the world's largest asset manager, has flagged a potential collision between the ongoing AI boom and record-high debt levels alongside persistently high interest rates. This intersection could create significant market volatility and challenges for investors, as the excitement around AI-driven growth must be weighed against macroeconomic pressures that could impact corporate profitability and valuations.

   Investors should monitor how central banks navigate interest rate policy in response to inflationary pressures, especially as AI-related spending continues to surge. The outcome could determine whether the AI boom can sustain its momentum or face headwinds from debt servicing costs.

6. 6

   Evercore warns AI IPOs may pressure IBM, AppLovin

   Evercore ISI, reported September 7, warned that investors preparing for possible OpenAI and Anthropic listings and seasonal tax-loss selling could sell stocks they already own. Its screen flagged IBM and AppLovin as potential casualties, based on underperformance and negative earnings-revision trends. The two companies face different tests. IBM's Q2 showed software revenue growing 5% to $7.8 billion, but infrastructure revenue fell 7% and free cash flow declined $300 million to $2.5 billion. AppLovin's June-quarter revenue rose 53% to $1.924 billion with $863.3 million of free cash flow, yet management flags forecasting, competition and execution risks.

   The screen describes vulnerability, not actual selling — the outcome hinges on whether those IPOs happen on a fixed timetable and whether investors rotate. Watch whether IBM can improve business results and whether AppLovin sustains growth while scaling to new customers.