ARK: AI is not a bubble

ARK: AI is not a bubble

According to a recent report from Cathie Wood’s ARK Invest, artificial intelligence (AI) is distinct from the dot-com boom in that it is characterised by measurable improvements in the economic fundamentals. This is connected to the fact that, “like electricity, the internet, or cloud computing before it, AI increasingly functions as a general-purpose technology with applications across nearly every sector of the economy.” As such, the report argues, it has become a core component of diversified, long-term equity portfolios.

Google invictus

A US judge has rejected the Department of Justice’s bid to force Alphabet’s [GOOGL] Google to sell key parts of its digital advertising business, including its AdX exchange and publisher ad server. Instead, Google will face behavioural remedies, potentially including data-sharing and interoperability requirements, in a blow to the government’s efforts to break up Big Tech. 

Virtual power plant trial in California

PG&E [PCG] has launched a Bay Area virtual power plant pilot using more than 20,000 smart home devices, alongside Google, Tesla [TSLA] and Sunrun [RUN]. The SHARE programme aims to boost grid capacity and reliability, Seeking Alpha reported, easing pressure on electricity rates and cutting household costs through smarter energy management. 

Agentic AI + cyber security

Netskope [NTSK] beat Q2 revenue and EPS expectations and raised its full-year guidance, with annual recurring revenue up 27% y/y to $899m. The company is racing to secure AI agent workflows before competitors like Palo Alto Networks [PANW] and Zscaler [ZS] can out-scale it. Aureon weighs Netskope’s early traction in agentic security against its post-IPO share price slide and the threat from much larger rivals. 

Broadcom’s $230bn AI roadmap

The California-based chipmaker [AVGO] reported its Q3 results on Wednesday, with revenue, operating income and free cash flow all topping previous records. Central to the results was a 221% y/y surge in AI semiconductor revenue to $16.7bn. Management expects AI revenue to continue its explosive growth, reaching $58bn in FY2026, then doubling to $115bn in 2027 and again to $230bn in 2028. “We are very much on target to exceed $30 EPS in FY2028,” Broadcom CEO Hock Tan said during the earnings call. 

ByteDance borrows big

The TikTok developer has secured a $29.6bn loan, Asia’s second-largest dollar-denominated facility this year behind SoftBank’s [SFTBY] $40bn bridge loan in March. The funds will go towards general corporate purposes, with the company on track to reach $70bn in capital spending this year amid an AI push. ByteDance originally planned to borrow $20bn, Bloomberg reported, but the amount increased following strong commitments from banks. 

Geothermal is heating up: Two ways to play the theme

AI-driven electricity demand is boosting interest in geothermal, with enhanced geothermal systems offering the potential for reliable, round-the-clock clean power. Upstart Fervo [FRVO] signed a 396MW PPA with Google in September. Aureon details how incumbent Ormat [ORA] offers more established exposure through its operating geothermal portfolio and growing energy storage business, but FRVO provides higher-risk, higher-reward exposure.