STORY: From Oracle's lay offs to a groundbreaking robot... this is AI Weekly. :: AI Weekly Oracle became the latest tech giant to announce layoffs. CNBC reported the Cloud computing firm plans to lay off thousands of employees. It comes as Oracle steps up spending on AI infrastructure The website Layoffs.fyi show more than 70 tech companies have cut over 40,000 jobs so far this year, as firms push...
STORY: From Oracle's lay offs to a groundbreaking robot... this is AI Weekly. :: AI Weekly Oracle became the latest tech giant to announce layoffs. CNBC reported the Cloud computing firm plans to lay off thousands of employees. It comes as Oracle steps up spending on AI infrastructure The website Layoffs.fyi show more than 70 tech companies have cut over 40,000 jobs so far this year, as firms push resources toward AI. Sources told Reuters customer testing of Huawei's new AI chip went well. The new 950PR is designed to challenge Nvidia in the Chinese market. The sources said it's drawn the attention of tech giants like ByteDance and Alibaba, who plan to place orders. They added Huawei aims to ship around 750,000 950PRs this year and mass production should begin in April. Researchers have developed modular robots designed with the help of AI, which can keep moving outdoors even after losing parts. The design made by a team at Northwestern University is a major step towards machines that can adapt to damage and unpredictable terrain. They said an AI-driven algorithm helped generate and test body plans in simulation. "You don't know which design is good or bad until you give it the opportunity to learn. Which takes a little bit of time. So this is why we need a mechanism for efficiently searching that space. And this is where AI comes in." China's strong position in the global AI race was on show at Semicon China 2026 in Shanghai. The country's chip industry has seen demand rise as companies push to build AI infrastructure. Industry executives said higher capital spending and capacity expansion has chipmakers racing to keep up. One expert said China's manufacturing capacity for chips used in cars, smartphones and electronics is projected to reach 42% of global output by 2028. And shares in Arm Holdings soared 20% at one point. Investors bought in after the British chipmaker projected its new data-center semiconductor would bring in billions of dollars in yearly revenue....
baileystock/iStock Editorial via Getty Images Pivoting to Physical AI Comes at a Cost Despite dropping 15% since the beginning of this year, Tesla, Inc.'s (NASDAQ: TSLA ) stock is still a Strong Sell. I know this will agitate TSLA bulls, but trading at 175x forward P/E doesn't make the stock appealing at all. In particular, TSLA's quality could face more deteriorations in the near term due to heav...
baileystock/iStock Editorial via Getty Images Pivoting to Physical AI Comes at a Cost Despite dropping 15% since the beginning of this year, Tesla, Inc.'s (NASDAQ: TSLA ) stock is still a Strong Sell. I know this will agitate TSLA bulls, but trading at 175x forward P/E doesn't make the stock appealing at all. In particular, TSLA's quality could face more deteriorations in the near term due to heavy spending on "physical AI" in FY2026, which will cause negative FCF. The company is now focused on Optimus and robotaxis over new model launches. The existing models have been losing market share. Although the recent 4Q FY2025 earnings came in ahead of consensus, these numbers did not send a clear signal of growth inflection. You may argue that holding the stock is a bet on future large-scale monetization from AI, despite the harsh reality that its vehicle sales have declined in recent years. Unless you choose to downplay financial statements and put your faith in the leadership's visions of TSLA's future businesses (which many people do), I still don't see a solid fundamental reason to own the stock. Still a Tradable Stock The stock's movement has been largely dominated by momentum chasing. We saw the price has broken a strong resistance of $391 in the November 2025 low, making it more vulnerable for further downside to $350. The downside could be exacerbated by a broad-based panic selloff from the recent geopolitical tensions. I've been bearish on TSLA and maintained a Strong Sell since September 2025. I saw some comments in my last article saying that the stretched valuation won't matter; once the company reaches a growth inflection, the upside could be tremendous. At that point, P/E will come down quickly. That sounds reasonable, but this will also expose a tremendous downside given that 175x forward P/E. When you pull out a 5-year chart, TSLA is only up 64% with huge volatility. The company is expected to announce 1Q 2026 delivery results this Thursday. The consensus ...
baileystock/iStock Editorial via Getty Images Pivoting to Physical AI Comes at a Cost Despite dropping 15% since the beginning of this year, Tesla, Inc.'s (NASDAQ: TSLA ) stock is still a Strong Sell. I know this will agitate TSLA bulls, but trading at 175x forward P/E doesn't make the stock appealing at all. In particular, TSLA's quality could face more deteriorations in the near term due to heav...
baileystock/iStock Editorial via Getty Images Pivoting to Physical AI Comes at a Cost Despite dropping 15% since the beginning of this year, Tesla, Inc.'s (NASDAQ: TSLA ) stock is still a Strong Sell. I know this will agitate TSLA bulls, but trading at 175x forward P/E doesn't make the stock appealing at all. In particular, TSLA's quality could face more deteriorations in the near term due to heavy spending on "physical AI" in FY2026, which will cause negative FCF. The company is now focused on Optimus and robotaxis over new model launches. The existing models have been losing market share. Although the recent 4Q FY2025 earnings came in ahead of consensus, these numbers did not send a clear signal of growth inflection. You may argue that holding the stock is a bet on future large-scale monetization from AI, despite the harsh reality that its vehicle sales have declined in recent years. Unless you choose to downplay financial statements and put your faith in the leadership's visions of TSLA's future businesses (which many people do), I still don't see a solid fundamental reason to own the stock. Still a Tradable Stock The stock's movement has been largely dominated by momentum chasing. We saw the price has broken a strong resistance of $391 in the November 2025 low, making it more vulnerable for further downside to $350. The downside could be exacerbated by a broad-based panic selloff from the recent geopolitical tensions. I've been bearish on TSLA and maintained a Strong Sell since September 2025. I saw some comments in my last article saying that the stretched valuation won't matter; once the company reaches a growth inflection, the upside could be tremendous. At that point, P/E will come down quickly. That sounds reasonable, but this will also expose a tremendous downside given that 175x forward P/E. When you pull out a 5-year chart, TSLA is only up 64% with huge volatility. The company is expected to announce 1Q 2026 delivery results this Thursday. The consensus ...
Microsoft (MSFT) is doing something unusual. It's beating earnings, growing revenue at 18% year-over-year, and yet its stock is down 36% from its peak. That doesn't happen to companies this size without a reason. The reason, in this case, is one number: capital expenditure (capex). Pre-AI era capex consistently ran at 25-27% of operating cash flow. The most recent full fiscal year saw that ratio c...
Microsoft (MSFT) is doing something unusual. It's beating earnings, growing revenue at 18% year-over-year, and yet its stock is down 36% from its peak. That doesn't happen to companies this size without a reason. The reason, in this case, is one number: capital expenditure (capex). Pre-AI era capex consistently ran at 25-27% of operating cash flow. The most recent full fiscal year saw that ratio climb to 47.4.
Christmas buyers expect “For Sale” signs, and Thanksgiving shoppers hunt for doorbusters. In the world of retail, a price cut is a signal to act. In the stock market, however, deep discounts often trigger the opposite reaction: hesitation and fear.
Christmas buyers expect “For Sale” signs, and Thanksgiving shoppers hunt for doorbusters. In the world of retail, a price cut is a signal to act. In the stock market, however, deep discounts often trigger the opposite reaction: hesitation and fear.