Alphabet Hits $3T... But This AI Play May Have More Upside

Happy Sunday!

This is Money American - your weekly cheat sheet on the hottest AI stocks, top moves, market sentiment, and a curated watchlist to help you ride the upside while managing the risks.

🔍 Big Themes

• China’s AI giants surge — Alibaba, Baidu, and Tencent outpaced the Nasdaq this week, boosted by state support, chip breakthroughs, and new AI models. Financial Times

• Valuations vs. reality — Nvidia, Micron, and others show strength, but analysts warn some names are overextended. Investors.com

• M&A heating up — Enterprise SaaS players like Workday are buying AI startups to stay competitive. Investors.com

📈 Company & Stock Moves

Workday (WDAY) — Bought AI startup Sana for $1.1B. Betting on AI-native knowledge tools.
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Intel (INTC) + Nvidia (NVDA) — Nvidia took a $5B stake in Intel. Partnership could reshape chip competition.
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Alphabet (GOOGL) — Hit $3T valuation; analysts say it remains the “cheapest” AI mega-cap on earnings multiples.
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Microsoft (MSFT) — Despite strong AI/cloud earnings, stock has lagged peers. Possible setup for reversal.
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Oracle (ORCL) — Signed a five-year, ~$300B deal with OpenAI. Big AI gamble for future growth.
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C3.ai (AI) — Missed earnings: revenue declined, EPS far below estimates. Shows risk in pure-play AI.
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⚠️ Market Sentiment

• Overinvestment risk — Jefferies warns current enthusiasm could trigger a bust if fundamentals don’t keep up. Economic Times

• Bubble not here yet — Bank of America says valuations aren’t extreme yet, but risks rising. Investopedia

• Rates matter — BlackRock notes Fed cuts could boost AI stocks, but inflation keeps risk alive. BlackRock

📊 MoneyAmerica AI Watchlist

Balanced for upside and downside control:

• Alphabet (GOOGL) — Strong AI pipeline, still cheapest mega-cap on valuation.

• Microsoft (MSFT) — Azure + OpenAI dominance; lagging price could mean entry point.

• Oracle (ORCL) — Bold AI pivot with OpenAI deal; riskier but transformative.

• Micron (MU) — Key memory supplier for AI servers; data center demand growing.

• Nvidia (NVDA) — Still the AI infrastructure king; volatility high but dominance intact.

• Palantir (PLTR) — Expanding government + enterprise AI adoption; strong moat in data/AI.

(High-risk traders may keep an eye on C3.ai (AI), but volatility and earnings weakness make it speculative.)

🧭 What to Watch Next Week

• Micron/Nvidia/AMD earnings → will confirm or cool AI demand.

• Oracle/OpenAI updates → how revenue and margins shake out.

• Regulatory moves on AI chips/export controls → especially tied to China.

• Sector rotation → chips vs. cloud vs. SaaS — watch where money flows next.

💡 Bottom Line

AI is still the hottest trade in the market. But not every stock is created equal. Stick with mega-caps and infrastructure players for stability. Take smaller positions in SaaS names or pure plays only if you can stomach volatility.