AI Business & Industry

Today's Stories

1. 1

   KLA fair value $232.43 sees 24% undervalued on AI backlog

   Simply Wall St's most-followed KLA narrative sets fair value at $232.43 versus a $176.99 close, with the stock up 4.74% last session but down 34.24% over 90 days. That gap frames the AI equipment debate in pricing terms, and bulls lean on KLA's AI-driven backlog and profit base to argue the retreat is overdone.

   The bull case hinges on whether tariffs and any further China revenue slowdown undercut the backlog story. Note KLA's 47.9x P/E is above peers at 45.3x and the 39.9x fair ratio.

2. 2

   Nvidia's Jensen Huang: develop AI "as fast as we can"

   Nvidia founder and CEO Jensen Huang told CBS News that AI development should move 'as fast as we can irrespective of anybody else,' despite recent calls for caution from Anthropic researcher Jacob Coxon and CEO Dario Amodei. The world's largest chipmaker is publicly rejecting a slowdown, setting up a visible split with those warning about AI risks.

   Huang also said Nvidia would never ship unsafe products, so the test is whether that pledge holds as development accelerates. Watch his full interview on Sept. 20 on 'Sunday Morning.'

3. 3

   Visa joins Mastercard, Ant International on Know Your Agent

   Visa joined Mastercard and Ant International to design a shared Know Your Agent framework, aimed at standardising how AI purchasing agents are identified and monitored across global payment networks. The stock last closed at US$369.93. Agreeing on a common identification framework across these payment networks would reduce the risk that each company sets its own rules for the agents. That shared approach is what the three partners are aiming to build.

   Whether the framework actually curbs fraud or adds compliance costs for the networks is undecided. Watch the DOJ antitrust case, which the leading narrative expects to end in a monetary settlement with limited routing adjustments.

4. 4

   Broadcom's $230 billion AI chip outlook outpaces Nvidia's 70% growth

   Broadcom projected roughly $58 billion in AI semiconductor revenue for fiscal 2026, about $115 billion in fiscal 2027 and $230 billion in fiscal 2028, while Nvidia guided fiscal 2028 total revenue growth of about 70%. Broadcom's forecast implies two consecutive doublings and is the more aggressive of the two outlooks, though its AI business relies on a smaller number of massive custom-chip customers, which carries greater risk if a major buyer pulls back.

   The headline growth rate may not tell the whole story — Nvidia's slower-but-broader expansion, spanning cloud giants, governments, start-ups and enterprises, could prove more durable over the long run. Watch whether Broadcom's concentrated customer base holds up.

5. 5

   Berkshire's 48 million Alphabet buy makes it third-largest holding

   Berkshire Hathaway's latest 13F filing, covering holdings as of June 30, shows it bought more than 48 million Alphabet shares across both share classes in Q2, making Alphabet its third-largest stock position at about 12.6% of its equity portfolio. A roughly 12.6% portfolio weight is a strong signal of confidence in Alphabet from a conglomerate known for long holding periods.

   The filing data is as of June 30 and may be outdated; the test is whether Berkshire keeps or adds to the Alphabet stake in future disclosures.

6. 6

   Aehr Test Systems slips 15.2% as KLA grows 11.7%

   Aehr Test Systems reported FY2026 revenue of $50.0 million, down 15.2% from the prior year, and a net loss of $7.1 million. KLA posted FY2026 revenue of $13.6 billion, up 11.7%, with $4.8 billion in net income. The two AI-linked chip-equipment suppliers moved in opposite directions: Aehr's smaller, specialized business shrank and lost money, while KLA's larger, diversified operation grew profitably.

   Whether Aehr's bet on silicon carbide and high-bandwidth memory can turn its negative $5.4 million free cash flow around, while KLA's Taiwan Semiconductor Manufacturing Company relationship, more than 10% of its revenue, remains a concentration risk.