Vachiravit Vasuponsritara /iStock via Getty Images Investment Thesis Yesterday, Anthropic ( ANTHRO ) announced a new deal with Amazon ( AMZN ) significantly expanding the scope of the collaboration between the two AI players. This is one of the largest, if not the largest, spending commitments that Anthropic has ever made, with the leading frontier AI model company pledging to purchase >$100B wort...
Vachiravit Vasuponsritara /iStock via Getty Images Investment Thesis Yesterday, Anthropic ( ANTHRO ) announced a new deal with Amazon ( AMZN ) significantly expanding the scope of the collaboration between the two AI players. This is one of the largest, if not the largest, spending commitments that Anthropic has ever made, with the leading frontier AI model company pledging to purchase >$100B worth of forward compute, ~5 GW worth of compute, from Amazon’s AWS. In return, Amazon now has to lead efforts to quickly build out the 5 GW compute capacity for Anthropic, with nearly 20% of that compute expected to come online this year itself. This is, obviously, extremely uplifting for Amazon, but I explain why Astera Labs, Inc. ( ALAB ) and Credo Technology Group Holding Ltd ( CRDO ) are my top picks with this mega deal signed between Amazon and Anthropic. What’s The Big Deal About Anthropic’s $100B Pledge? The straight answer—Anthropic's $100B deal with Amazon is most likely the largest ever commitment for forward compute the frontier AI lab has ever signed, in my view, making it larger than the $30B partnership between Anthropic and Microsoft ( MSFT ) back in November. As part of yesterday’s announcement, Anthropic commits to spending >$100B on Amazon’s AWS over the next 10 years or ~$10B ARR per year for AWS. In return, AWS will have to build and ship 5 GW worth of forward compute capacity in the form of its Graviton CPUs and Trainium XPUs (Trainium 2 through Trainium4). Further, Amazon will invest $5B in Anthropic as part of yesterday’s announcement, with the option to invest an additional $20B in the future. But, as TechCrunch puts it , Amazon’s $5B investment isn’t all “straight cash” but likely in the form of compute credits to Anthropic, locking the frontier AI model company further onto AWS’s compute grid. This year alone, Anthropic expects to secure ~1 GW worth of Trainium2 & 3 capacity, which immediately impacts the forward outlook for Amazon as well as Amazon’s...
Vachiravit Vasuponsritara /iStock via Getty Images Investment Thesis Yesterday, Anthropic ( ANTHRO ) announced a new deal with Amazon ( AMZN ) significantly expanding the scope of the collaboration between the two AI players. This is one of the largest, if not the largest, spending commitments that Anthropic has ever made, with the leading frontier AI model company pledging to purchase >$100B wort...
Vachiravit Vasuponsritara /iStock via Getty Images Investment Thesis Yesterday, Anthropic ( ANTHRO ) announced a new deal with Amazon ( AMZN ) significantly expanding the scope of the collaboration between the two AI players. This is one of the largest, if not the largest, spending commitments that Anthropic has ever made, with the leading frontier AI model company pledging to purchase >$100B worth of forward compute, ~5 GW worth of compute, from Amazon’s AWS. In return, Amazon now has to lead efforts to quickly build out the 5 GW compute capacity for Anthropic, with nearly 20% of that compute expected to come online this year itself. This is, obviously, extremely uplifting for Amazon, but I explain why Astera Labs, Inc. ( ALAB ) and Credo Technology Group Holding Ltd. ( CRDO ) are my top picks with this mega deal signed between Amazon and Anthropic. What’s the Big Deal About Anthropic’s $100B Pledge? The straight answer—Anthropic's $100B deal with Amazon is most likely the largest ever commitment for forward compute the frontier AI lab has ever signed, in my view, making it larger than the $30B partnership between Anthropic and Microsoft ( MSFT ) back in November. As part of yesterday’s announcement, Anthropic commits to spending >$100B on Amazon’s AWS over the next 10 years, or ~$10B ARR per year for AWS. In return, AWS will have to build and ship 5 GW worth of forward compute capacity in the form of its Graviton CPUs and Trainium XPUs (Trainium 2 through Trainium4). Further, Amazon will invest $5B in Anthropic as part of yesterday’s announcement, with the option to invest an additional $20B in the future. But, as TechCrunch puts it , Amazon’s $5B investment isn’t all “straight cash” but likely in the form of compute credits to Anthropic, locking the frontier AI model company further onto AWS’s compute grid. This year alone, Anthropic expects to secure ~1 GW worth of Trainium2 & 3 capacity, which immediately impacts the forward outlook for Amazon as well as Amazon...
Amazon evolved from one of the world’s largest online retailers into a tech powerhouse and a hyperscaler. Amazon Web Services (AWS), a cloud computing platform, became the most important part of its business thanks to the artificial intelligence boom. The backbone of Amazon’s AI strategy is ...
Amazon evolved from one of the world’s largest online retailers into a tech powerhouse and a hyperscaler. Amazon Web Services (AWS), a cloud computing platform, became the most important part of its business thanks to the artificial intelligence boom. The backbone of Amazon’s AI strategy is ...
Most dividend stocks have rock-bottom yields these days. The S&P 500 is around 1.1%, which is near its record low. That's leaving income-focused investors with fewer appealing options. However, they aren't without any enticing options. The pipeline sector stands out for its abundance of high-yielding dividend stocks . Here are three top pipeline stocks to buy and hold for a lifetime of dividend in...
Most dividend stocks have rock-bottom yields these days. The S&P 500 is around 1.1%, which is near its record low. That's leaving income-focused investors with fewer appealing options. However, they aren't without any enticing options. The pipeline sector stands out for its abundance of high-yielding dividend stocks . Here are three top pipeline stocks to buy and hold for a lifetime of dividend income. Image source: Getty Images. Continue reading
jetcityimage/iStock Editorial via Getty Images Article Thesis UnitedHealth Group Incorporated ( UNH ) reported its most recent earnings results on Tuesday morning. The company delivered a double beat , showing much stronger than expected profitability, and raised its guidance for 2026—the market liked that, sending UNH 8% higher on the back of the good news. Past Coverage I have written about Unit...
jetcityimage/iStock Editorial via Getty Images Article Thesis UnitedHealth Group Incorporated ( UNH ) reported its most recent earnings results on Tuesday morning. The company delivered a double beat , showing much stronger than expected profitability, and raised its guidance for 2026—the market liked that, sending UNH 8% higher on the back of the good news. Past Coverage I have written about UnitedHealth Group here on Seeking Alpha in the past, most recently on January 27 , around three months ago. I was bullish back then, noting UNH's potential for a turnaround and a profit recovery. So far, this thesis has played out well, with UNH reporting appealing profits today and with UNH trading around 23% higher than when I published my January article—a very nice return for a three-month period, I believe. What Happened? On Tuesday morning, UnitedHealth reported its Q1 earnings results . The headline numbers looked like this: UNH earnings results (Seeking Alpha) UNH beat the consensus estimate on both lines, which is naturally a great result. This was also a major improvement versus the previous quarter, when UNH had delivered an earnings hit and a revenue miss. The revenue growth rate wasn't especially exciting, at just 2%, but this was still better than the roughly flat revenues that analysts had predicted. On the earnings front, UNH did much better, with its Q1 earnings per share of $7.23 being the best result in years. The market reacted very positively to these results and UNH's increased guidance, sending shares higher by 8% at the time of writing—I think this is due to many investors having increased confidence that the turnaround is working. UNH's Performance In Q1 The problems that plagued UnitedHealth in the recent past are well known—bad cost trends, relatively weak margins across its different business units, and so on resulted in major profitability headwinds compared to the peak levels we saw in 2023 to 2024. These headwinds haven't fully passed yet, but du...