TRILLION

The burst of energy was likely triggered when an unusually large star wandered too close to the black hole.

Scientists have documented the most energetic flare ever observed emanating from a supermassive black hole, a cataclysmic event that briefly shone with the light of 10 trillion suns.

The new findings were published on Tuesday in the journal Nature Astronomy, with astronomer Matthew Graham of the California Institute of Technology (Caltech) leading the study.

The phenomenal burst of energy was likely triggered when an unusually large star wandered too close to the black hole and was violently shredded and swallowed.

“However it happened, the star wandered close enough to the supermassive black hole that it was ‘spaghettified’ – that is, stretched out to become long and thin, due to the gravity of the supermassive black hole strengthening as you get very close to it. That material then spiralled around the supermassive black hole as it fell in,” said astronomer and study co-author KE Saavik Ford.

The supermassive black hole was unleashed by a black hole roughly 300 million times the mass of the sun residing inside a faraway galaxy, about 11 billion light years from Earth. A light year is the distance light travels in a year, 5.9 trillion miles (9.5 trillion km).

The star, estimated to be between 30 and 200 times the mass of the sun, was turned into a stream of gas that heated up and shined intensely as it spiralled into oblivion.

Almost every large galaxy, including our Milky Way, has a supermassive black hole at its centre. But scientists still aren’t sure how they form.

First spotted in 2018 by the Palomar Observatory, operated by the Caltech, the flare took about three months to reach its peak brightness, becoming roughly 30 times more luminous than any previously recorded event of its kind. It is still ongoing, but diminishing in luminosity, with the entire process expected to take about 11 years to complete.

Because of how far away the black hole is located, observing the flash gives scientists a rare glimpse into the universe’s early epoch. Studying these immense, distant black holes helps researchers better understand how they form, how they influence their local stellar neighbourhoods, and the fundamental interactions that shaped the cosmos we know today.

The figure amounts to roughly $111,000 of debt for every person in the US, think tank says.

The United States national debt has topped $38 trillion, as the gap between government spending and revenues in the world’s largest economy expands at a rapid pace.

The US Department of the Treasury included the staggering figure in its latest report on the nation’s finances, with the debt standing at $38,019,813 as of Tuesday.

The figure amounts to roughly $111,000 of debt for every person in the US, and is equivalent to the value of the economies of China, India, Japan, Germany and the United Kingdom combined, according to the Peter G Peterson Foundation, a Washington, DC-based think tank.

The milestone comes a little over two months after debt in the US surpassed $37 trillion in mid-August. The debt stood at $36 trillion in November 2024, and $35 trillion that July.

Michael A Peterson, CEO of the Peter G Peterson Foundation, said US lawmakers were failing to live up to their “basic fiscal duties”.

“Adding trillion after trillion to the debt and budgeting-by-crisis is no way for a great nation like America to run its finances,” Peterson said in a statement.

“Instead of letting the debt clock tick higher and higher, lawmakers should take advantage of the many responsible reforms that would put our nation on a stronger path for the future.”

In May, Moody’s ratings downgraded the US government’s credit rating from Aaa to Aa1, citing the failure of successive administrations to “reverse the trend of large annual fiscal deficits and growing interest costs”.

The move followed similar downgrades by rating agencies Fitch and Standard & Poor’s in 2011 and 2023, respectively.

While there is debate among economists about how much debt the US can take on before triggering a financial crisis, there is widespread agreement that the current trajectory is unsustainable.

In a 2023 analysis, economists at the Penn Wharton Budget Model estimated that financial markets would not tolerate US debt levels above 200 percent of gross domestic product (GDP).

The nonpartisan Congressional Budget Office has estimated that the debt could reach 200 percent of GDP by 2047, in part due to sweeping tax cuts included in US President Donald Trump’s One Big Beautiful Bill Act.

The electric carmaker had unveiled chief Elon Musk’s proposed $1 trillion compensation plan in September.

Tesla’s proposed $1 trillion pay package for CEO Elon Musk has come under renewed scrutiny after proxy adviser Institutional Shareholder Services (ISS) urged investors to vote against what could be the largest compensation plan ever awarded to a company chief.

ISS’s comments on Friday marks the second consecutive year that it has urged shareholders to reject a compensation plan for Musk.

Proxy advisers often sway major institutional investors, including the passive funds that hold large stakes in Tesla.

The ISS recommendation adds pressure on Tesla’s board before a closely watched November 6 shareholder meeting and renews scrutiny of Musk’s compensation after a Delaware court earlier voided his $56bn pay package.

Musk’s record Tesla pay plan could still hand him tens of billions of dollars even if he falls short of most of its ambitious targets, however, thanks to a structure that rewards partial achievement and soaring share prices.

Last month, Tesla’s board proposed a $1 trillion compensation plan for Musk in what it described as the largest corporate pay package in history, setting ambitious performance targets and aiming to address his push for greater control over the company.

ISS said that while the board’s goal was to retain Musk because of his “track record and vision”, the 2025 pay package “locks in extraordinarily high pay opportunities over the next ten years” and “reduces the board’s ability to meaningfully adjust future pay levels.”

Tesla’s shares rose after the compensation plan was unveiled last month, as investors believe the pay package would incentivise Musk to focus on the company’s strategy.

“Many people come to Tesla to specifically work with Elon, so we recognise that retaining and incentivising him will, in the long run, help us retain and recruit better talent,” Director Kathleen Wilson-Thompson said in a video posted to Tesla’s X handle on Friday.

Unlike the 2018 pay deal, Musk will be allowed to vote using his shares this time, giving him about 13.5 percent of Tesla’s voting power, according to a securities filing last month. That stake alone could be enough to secure approval.

The proxy adviser cited the “astronomical” size of the proposed grant, design features that could deliver very high payouts for partial goal achievement and potential dilution for existing investors.

Tesla did not immediately respond to a request for comment from the Reuters news agency.

ISS valued the stock-based award at $104bn, higher than Tesla’s own estimate of $87.8bn.

The grant would vest only if Tesla reaches market capitalisation milestones up to $8.5 trillion and operational targets, including delivery of 20 million vehicles, one million robotaxis and $400bn in adjusted core earnings.

The proxy adviser’s guidance on Musk’s pay was part of a wider set of voting recommendations issued on Friday.

As of 3:45pm in New York (19:45 GMT), Tesla’s stock was up 2.4 percent.

Over the past few years, investors have witnessed in real time how breakthroughs in artificial intelligence (AI) have sparked a new revolution in the technology sector. The next frontier — quantum computing — promises an even greater leap forward, unlocking efficiency and solving problems that strain the limits of today’s classical machines.

Together, the fusion of AI and quantum computing is expected to create trillions of dollars in economic value over the coming decades. While many companies are dabbling in quantum systems at the margins, two of the industry’s most influential players are already weaving this emerging capability into their broader strategies.

Let’s explore how Nvidia (NVDA -0.62%) and Alphabet (GOOG 0.55%) (GOOGL 0.61%) are positioning themselves to remain leaders at the cutting edge of AI’s next transformation.

Nvidia: GPUs, CUDA, and infrastructure

Nvidia’s rise throughout the AI revolution is deeply rooted in its dominance of the GPU market, where its chips have become the backbone of generative AI development. What investors may not fully realize yet is that the company’s ambitions extend beyond supplying accelerators to train large language models (LLMs). Quietly, Nvidia has been laying the groundwork for a prominent role in the quantum era.

A key part of this strategy is Nvidia’s software architecture, CUDA. CUDA includes tools designed to bridge classical computing systems with quantum-inspired research. At the moment, Nvidia’s CUDA quantum (CUDA-Q) platform is used by a number of academic institutions, as well as integrated with existing developers such as IonQ and Rigetti Computing.

This is a savvy move, as Nvidia is doing all of this without committing massive capital expenditures (capex) to build quantum machines from scratch. Instead, the company is positioning itself as the connective backbone across both hardware and software supporting the next wave of advanced computing applications.

Image source: Getty Images.

Alphabet: Willow, Cirq, and DeepMind

Alphabet has carved more direct inroads into quantum computing through its Google Quantum division.

A central focus is Willow, a processor built to scale quantum workloads more efficiently. To drive adoption, Alphabet introduced Cirq — an open-source software framework that enables developers to design quantum algorithms and run them directly on Google’s infrastructure. The company’s internal research lab, DeepMind, adds another dimension that gives Alphabet the unique advantage to test quantum technologies in-house and refine them at a faster pace.

What makes this approach so compelling is that Alphabet weaves these efforts into a vertically integrated stack. The company’s hardware, software, and research converge within a single ecosystem — allowing emerging services like Google Cloud and Gemini to compete from a position of strength against entrenched rivals like Microsoft Azure and Amazon Web Services (AWS).

Are Nvidia and Alphabet good buys right now?

Nvidia and Alphabet are each building durable platforms optimized for the next phase of advanced computing.

For Nvidia, the company’s GPUs and CUDA architecture are already indispensable to AI infrastructure. Moreover, the company’s collaborations in quantum computing create additional tailwinds across both hardware and software for the data centers of tomorrow. Meanwhile, Alphabet is stitching quantum into a broader, diversified ecosystem that spans processors, software frameworks, cloud distribution, and research.

For both companies, quantum computing is not the ultimate destination, but rather a strategic layer that reinforces their long-term growth prospects — positioning each as resilient, differentiated platform businesses in an increasingly competitive landscape.

I think that each company’s early bets on quantum computing will look shrewd in hindsight as these applications evolve from research-driven environments into real-world value creation.

For investors with patience, owning shares of both Nvidia and Alphabet today offers exposure to two businesses not just benefiting from the AI boom, but actively writing the narrative of its next chapter. For these reasons, I see both stocks as no-brainer opportunities right now.

A flood of wealth is anticipated to sweep from baby boomers to younger generations over the next couple of decades. Cerulli Associates estimates $106 trillion will pass to younger generations. Of that, a large chunk is destined to be passed on to the companies that manage their finances.

Robinhood (HOOD 1.90%) and Lemonade (LMND 2.67%) are two fintechs laser-focused on providing financial services to Great Wealth Transfer winners. Robinhood offers the next generation of investing, banking, and credit products. Lemonade does the same for insurance.

Here’s a look at each.

Image source: Getty Images.

1. Robinhood

Robinhood is widely seen as the face of fintech by young, tech-savvy investors. It pioneered zero-commission stock trading, a win that continues to pay reputational dividends. It continues to attract interest by beefing up its premium Gold subscription. Perks include 3% IRA match, a credit card with 3% rewards, and $1,000 of interest-free margin trading. The subscription is cheap, at $5 a month as of this writing.

Robinhood has promising user base demographics. In a May 2025 Investor Day presentation, the company discloses the median age for Robinhood customers is 35. Robinhood is popular with millennials and Gen X, the two generations primed to inherit the most over the next 10 years. But what really sets it apart from competitors is how it’s sprinting to meet these users where they’ll be not next year, but a decade from now.

The company has diversified from trading into wealth management and banking, a huge profit driver. The recent unveiling of Banking and Strategies products is evidence of a company executing on an ambitious long-term vision. Both product lines are key to convincing young and maturing customers that Robinhood is a “serious” wealth manager.

The stock is far from undervalued. As of this writing, it trades at a forward price-to-earnings (P/E) ratio of over 50x, a valuation typically attributed to tech stocks — much higher than the 29x S&P 500 (^GSPC 0.48%) average. There might be better-valued opportunities among competitors like Block.

Strong fundamentals justify its high multiples. The company is profitable and has been so for over a year. It’s grown total platform assets at a staggering 99% in a single year, and it has over $4 billion on the balance sheet — plenty to invest in growth, or lean upon during tough times.

Robinhood’s young user base, ambitious vision, and strong fundamentals position it perfectly to win the Great Wealth Transfer. Its quickly growing suite of products is proof the company is moving to meet the next generation where it’s at: online, via an award-winning interface that does investing, banking, and wealth management.

2. Lemonade

Lemonade is very well positioned to serve as a major insurer of young and maturing users. It offers insurance via the Lemonade app, an artificial intelligence (AI)-powered interface that can pay out claims in as little as 3 seconds. It typically attracts customers with the promise of cheap rental insurance. As customers mature, they purchase higher-margin insurance from Lemonade, like Car and Pet.

Powerful machine learning models put Lemonade in a league of its own. From Car to Life, these models gobble up data that the company uses to improve predictions. Combined with AI models that manage customers and employees, it can scale premiums from $609 million to $1,083 million while shrinking operating expenses, excluding growth spend.

To scale quickly, Lemonade is leaning into the expansion of its car insurance product. Car insurance is a huge unlock for users who want to stick with a single insurer across all products, snagging discounts. Lemonade knows this. In the Q1 2025 Shareholder letter, the company reveals it sees a 60% boost to conversion rates in states where it offers car insurance.

Lemonade has yet to prove it’s a sustainable business. The company is unprofitable, a red flag in a volatile market that places a premium on stability.

Critics point to the Car product in particular. Car insurance is a loss leader, with an 82% loss ratio, well above the 40% to 60% industry ideal. That needs to improve. An ideal gross loss ratio is typically between 40% to 60%, according to data by Relativity6.

All signs point to Lemonade reaching profitability on a reasonable timeline. Gross loss ratios, a key insurance metric, are trending in the right direction: down. Loss ratios dropped from 79% in Q2 2024 to 69% in Q2 2025. Lemonade expects to reach adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) profitability in 2026, meaning the core business generates more profits than it spends. Investors would love to see it.

Great Wealth Transfer winners to buy and hold

Robinhood and Lemonade may be the real winners of the Great Wealth Transfer. Both are innovative fintech companies with strong and improving fundamentals. I plan on holding both in my portfolio for five years or more.

Sept. 15 (UPI) — Shares of Google‘s parent company Alphabet soared on Monday, pushing the tech conglomerate’s market capitalization past the $3 trillion mark for the first time.

The development puts the search engine giant among a handful of other tech companies that have reached the milestone, which include Apple and Microsoft, as well as AI chipmaker Nvidia. Shares of Alphabet were up by more than 4% and were hovering at around $250 as of Monday afternoon.

The company’s all-time high follows its precipitous stock rise that began in early September when a federal judge ruled that Google would not have to sell off its Chrome browser or Android operating system. The ruling by Judge Amit Mehta was in response to antitrust lawsuit brought by the Justice Department accusing the company of running illegal search engine monopoly.

The ruling meant that Google dodged some of the most consequential remedies sought by federal prosecutors and Mehta still ordered the company to share some search engine data with rivals. The order also barred Google from contracts with other companies making its search engine and other products the default options on their products.

Stock market analysts anticipated the asendance of Alphabet’s stock following the ruling, and the company’s gains Monday account for nearly a third of its value this year, reported Investopedia.

The milestone for Google comes nearly two decades after the company’s first IPO when it began selling publicly traded stocks.

There are 10 companies with a market cap over $1 trillion right now, and all of these except one are involved in artificial intelligence (AI). This technology will drive a substantial amount of economic growth in the 21st century, providing investors the chance to earn substantial gains from the right stocks.

Some companies that are well positioned to play a key role in shaping the economy with AI are still valued at less than $1 trillion. Although their share prices could be volatile in the near term, the following two companies could be worth a lot more down the road they are today.

Image source: Getty Images.

1. Palantir Technologies

More than 800 companies have chosen Palantir Technologies (PLTR 4.14%) to transform their business operations with AI. Businesses can upload data on Palantir’s platforms, and it basically shows them how to be more efficient, grow their revenue, and become more profitable. It is working magic for businesses and the U.S. military, which trusts Palantir to keep top-secret information secure about the U.S. and its allies. Despite its already high market cap of $400 billion, Palantir’s unique value proposition and stellar profitability has all the makings of a $1 trillion business.

Palantir is not just slapping a large language model on a company’s data to make it easy to search information. It pulls together data from different sources within a company, which creates a framework for understanding how the company operates. Palantir is essentially building a digital copy of a company’s operations that can detect problems and solve those problems instantly.

Palantir’s financials suggest there is no replacement for the value it provides. It reported accelerating revenue growth over the last year. In the second quarter, revenue grew 48% year over year, compared to 27% in the year-ago quarter.

Moreover, its net income margin was stellar at 33% in Q2, with an adjusted free cash flow margin of 57%. It’s not common for a small software company in the early stages of growth to be reporting margins like Microsoft.

These margins are being driven by high prices that Palantir charges customers. For example, it recently secured a $10 billion contract with the U.S. Army for the next decade. Organizations are willing to pay up for Palantir’s software because the savings realized are that big. Palantir is saving enterprises millions, even hundreds of millions in costs in some cases, providing an attractive return on investment that is driving the company’s growth.

Palantir stock is expensive, trading at high multiples of sales and earnings. But this is a unique software company with a huge opportunity ahead. CEO Alex Karp is aiming to grow revenue by 10x over time, which would bring annual revenue to more than $40 billion from this year’s analyst estimate of $4.1 billion. Based on its current margins, that could equate to $20 billion in annual free cash flow over the long term. Applying a high-growth multiple of 50 to that would put the stock’s market cap at $1 trillion.

2. Advanced Micro Devices

For AI to keep advancing and transform how people work and communicate, it needs more powerful chips. Nvidia has been the biggest winner so far, but investors shouldn’t overlook Advanced Micro Devices (AMD 1.91%). It is the second-leading supplier of graphics processing units (GPUs), and it could be well positioned to meet growing demand in edge computing and AI inferencing that could send the stock from its current $250 billion market cap to $1 trillion.

As AI proliferates across the economy, people will be able to use powerful AI applications and processing on their devices, which makes edge computing a large opportunity for AMD. The company offers a range of high-performance and energy-efficient chips that are aimed at running AI devices and PCs, positioning it to benefit from a booming market estimated to be worth $327 billion by 2033, according to Grand View Research.

Investors were disappointed by the company’s Q2 data center growth of 14% year over year, but management expects stronger demand once it launches its Instinct MI350 series of GPUs. As it continues to bring new solutions to the data center market, AMD’s data center business should accelerate.

AMD’s chips are clearly addressing needs in the AI market. It announced a partnership with Saudi Arabia’s Humain to build AI infrastructure using AMD’s GPUs and software. Meanwhile, Oracle is building a massive AI compute cluster using multiple AMD chips. AMD says it is also working with governments globally to build sovereign AI infrastructure.

Analysts expect AMD‘s earnings to grow at an annualized rate of 30% over the next several years. Against those prospects, the stock trades at a reasonable forward price-to-earnings multiple of 40. There is enough earnings growth here to potentially triple the stock in five years, putting it easily within striking distance of reaching $1 trillion within the next decade.

There’s no denying the trajectory of artificial intelligence (AI) over the past few years. Many of the companies that have pivoted to adopt this game-changing technology have ascended the ranks of the world’s largest companies when measured by market cap. When the stock market closed on Tuesday, there were 11 members of the vaunted $1 trillion club, the vast majority of which have significant ties to AI.

After the market close, industry stalwart Oracle (ORCL 1.37%) reported its recent quarterly results, and despite missing Wall Street’s expectations, the stock surged higher and never looked back. Why? In a stunning turn of events, the company signed numerous multibillion-dollar contracts that kicked its future growth potential into overdrive.

Given the magnitude of these deals, it seems the writing is on the wall for Oracle to join this elite fraternity. The company’s growth is at a tipping point, and management’s commentary suggests the company has a long AI-centric runway for growth ahead.

Image source: Getty Images.

A trusted partner

Oracle holds a coveted place in the technology community, as roughly 98% of Global Fortune 500 companies make up its customer rolls. The industry stalwart provides its customers with a strategic combination of cloud, database, and enterprise software. Naturally, when the shift to AI began in earnest, this captive audience began to turn to Oracle for its expanding collection of cloud and AI solutions.

The company’s growth has been uneven, but the future looks bright. During Oracle’s fiscal 2026 first quarter (ended Aug. 31), total revenue grew 11% year over year to $14.9 billion, while its adjusted earnings per share (EPS) of $1.47 grew by 6%. Both numbers accelerated compared to Q4, but missed Wall Street’s consensus estimates, which called for revenue of $15 billion and adjusted EPS of $1.48.

However, that wasn’t the headline. Last quarter, CEO Safra Catz noted that the company had reached a “tipping point,” noting that revenue growth was accelerating, “and it’s only going up from here.”

That turned out to be an understatement. Oracle reported explosive growth in its remaining performance obligation (RPO) — or contractual obligations not yet included in revenue — which skyrocketed 359% year over year to $455 billion, up from $138 billion in Q4.

Catz explained, “We signed four multibillion-dollar contracts with three different customers in Q1,” calling the results “astonishing.” He went on to say that demand for Oracle Cloud “continues to build.” The company expects to sign “several additional multi-billion-dollar customers and RPO is likely to exceed half a trillion dollars.”

Looking to the future, Oracle is forecasting Oracle Cloud Infrastructure revenue to grow 77% to $18 billion this year — but that’s just the beginning:

• Fiscal 2027 cloud revenue of $32 billion, up 78%.
• Fiscal 2028 cloud revenue of $73 billion, up 128%.
• Fiscal 2029 cloud revenue of $144 billion, up 97%.

Mind you, this is just Oracle Cloud Infrastructure revenue, and Catz noted that “most of the revenue in this five-year forecast is already booked in our reported RPO.” That means that any future contracts will probably increase those growth targets.

The path to $1 trillion just got much shorter

Oracle is leveraging its position as a trusted partner to help customers choose suitable AI and cloud solutions and profit from the growing adoption of generative AI.

Before today’s results, Wall Street was expecting Oracle to generate revenue of $66.75 billion in its fiscal 2026 (which began June 1), giving it a forward price-to-sales (P/S) ratio of about 10. Assuming its P/S remained constant, Oracle needed to generate revenue of approximately $98 billion annually to support a $1 trillion market cap. Given those figures, Oracle could have achieved a $1 trillion market cap before 2028.

Wall Street hasn’t yet had time to update its models, but given the magnitude of the company’s results, previous forecasts are out the window. Barring unforeseen circumstances, I predict Oracle will join the $1 trillion club within the next 12 months.

Estimates regarding the market potential of generative AI continue to ratchet higher. Big Four accounting firm Price Waterhouse Coopers (PwC) calculates the opportunity could be worth as much as $15.7 trillion annually by 2030, which illustrates the magnitude of the opportunity.

Given the recent contract wins, Oracle has proven that it is leveraging its experience to profit from this windfall. The writing is on the wall, and Oracle is poised to join the fraternity of trillionaires in short order.

Alphabet (GOOGL 1.13%) (GOOG 1.04%) is already one of the biggest companies in the world, but there is no reason to think it couldn’t become much bigger. With a market cap of about $2.8 trillion, it has a real shot at becoming the next $4 trillion stock and possibly the largest company in the world one day.

The recent court ruling that let it keep its search advantages pulled a big risk off the table, and the company now has multiple growth drivers lined up. Let’s look at why Alphabet is set to run higher.

Search advantage stays intact

One of the biggest risks hanging over Alphabet for the past year or so was the Department of Justice’s antitrust case against it. The judge could have forced it to spin off Chrome and Android or end its exclusive search deal with Apple, but that didn’t happen. Alphabet still owns both, and it can still pay Apple and others for default search placement. The only change is that these contracts need to be renewed every year instead of for longer terms.

One of Alphabet’s key advantages in search, as well as in artificial intelligence (AI), is its distribution. Almost 70% of the world uses Chrome, while Android powers about three quarters of the world’s phones. Meanwhile, through a revenue-sharing agreement, Apple’s Safari defaults to Google, helping it reach most of the rest of the world’s population. That makes Alphabet the gateway to the internet, and the judge’s ruling protected that advantage. People don’t often change default browsers, which means billions of users are going to stick with Google Search.    

At the same time, AI isn’t taking away from search; it’s doing the opposite. Over 2 billion people are already using AI Overviews every month, and Alphabet just started rolling out AI Mode globally, which lets users switch between traditional search and chatbot-style results without leaving Google. Last quarter, Alphabet saw its search revenue growth accelerate, as AI helped drive queries.

Meanwhile, the company has been at the forefront of AI search innovation, with features like Lens and Circle to Search driving incremental queries, often with a commercial intent. It’s also embedded AI commerce features in its offering, such as Shop with AI, where users can even virtually try on clothes.

Finally, Alphabet has spent decades building one of the most far-reaching ad networks on the planet. From your local landscape business down the street to global powerhouses, the company has the tools to reach any type of audience for advertisers.

Image source: Getty Images.

Cloud is finally breaking through

While Google Search is Alphabet’s foundation, its cloud computing unit, Google Cloud, has become its growth engine. Revenue jumped 32% last quarter, while operating income more than doubled. This segment is now scaling fast, and it is one of the best ways Alphabet is tied into the AI boom.

One of Alphabet’s big edges here is that it’s designed its own custom AI chips specifically for its infrastructure. Its Tensor Processing Units are designed to handle AI workloads within its TensorFlow framework, which gives it cost and performance benefits. Developers are also adopting its Gemini models and Vertex AI platform at a rapid pace, which keeps customers tied into Google Cloud.

Capacity is tight, and Alphabet is spending aggressively to expand. It recently upped its capex budget by $10 billion to $85 billion to build new data centers, and management has said constraints will likely last into 2026. That shows just how strong demand is.

Emerging opportunities

Alphabet also has a set of bets that could pay off big. YouTube is still dominant in online video and pulling more ad dollars from TV, but the real long-term excitement sits with Waymo and quantum computing.

Waymo is rapidly growing its robotaxi service, rolling into new cities and testing in major markets like New York. It may take time, but if autonomous driving takes off and Alphabet can reduce the cost of its robotaxis, it could end up with another giant business.

Quantum computing is even further out, but progress with Alphabet’s Willow chip shows it is moving forward. Reducing errors is the biggest hurdle for quantum computing, and Alphabet is one of the few companies that have made headway in this area.

Still an attractive valuation

While Alphabet’s stock has recently hit new highs, it still hasn’t seen the momentum of many other megacap AI stocks over the past few years. Investors were too worried about the impact of AI on search and the potential risk of the antitrust trial. However, the worst-case scenario with the trial is now behind it, and Alphabet has been demonstrating that it is set to be an AI winner. In fact, after the trial, it has been reported that Alphabet and Apple are getting close to expanding their relationship, with Google’s Gemini model set to power an AI version of Siri. That’s not the sign of a company that is losing the AI race.

Trading at a forward price-to-earnings (P/E) ratio of just 21 times 2026 analyst earnings estimates, Alphabet is much cheaper than peers like Microsoft, Apple, and Amazon. If it were to trade at a similar 30 times multiple on 2026 analyst estimates as these names, it would already be a $4 trillion company.

Given its strong leadership positions in search and streaming, along with its growth opportunities around AI, cloud computing, robotaxis, and quantum computing, there is now no reason why Alphabet may not become the world’s largest company by the end of the decade.

Nvidia (NVDA -2.78%) is the most valuable company in the world, with a market cap of around $4.1 trillion. Every time it faces adversity, the stock finds a way to go higher.

Early this year, investors were rattled by news of a budget-friendly AI model, DeepSeek R1, developed in China. This raised doubts about the necessity of large investments in Nvidia’s next-generation chips, ultimately causing a drop in the company’s stock price. Then there were the concerns around tariffs in early April, which resulted in the stock hitting its lowest levels this year, falling to below $100.

However, time and time again, Nvidia’s stock has proven to be resilient, and it has continued to rise higher. It would need to rise by another 22% to hit yet another milestone: $5 trillion in market cap. Are there any factors that could hinder Nvidia’s progress, or is it just a matter of time before it reaches that value?

Image source: Getty Images.

Nvidia’s growth rate expected to remain above 50%

Last week, Nvidia posted its latest earnings numbers, and demand remained strong for its cutting-edge AI chips. Its revenue rose by 56% year over year, totaling $46.7 billion for the period ending July 27. That was slightly better than analyst expectations of just over $46 billion. And adjusted per-share profits of $1.05 were also higher than estimates of $1.01.

But what’s most encouraging for investors is that the guidance also looks good, as Nvidia still expects to see its growth rate to be above 50% for the current quarter. Although its growth rate is slowing down, that’s still incredibly impressive for a business of Nvidia’s size.

NVDA Revenue (Quarterly YoY Growth) data by YCharts.

Has Nvidia’s valuation finally gotten too high?

Year to date, Nvidia’s stock has risen by about 25% (as of Sept. 2). It’s trading at a price-to-earnings (P/E) multiple of around 50, which isn’t cheap, but it still may not be all that expensive given the company’s incredibly fast growth rate. And based on analyst estimates, it’s trading at a forward P/E multiple of 38.

Nvidia’s stock price has effectively become a gauge of how much growth potential investors see for AI in general. News of the DeepSeek AI model hurt its valuation temporarily, as did tariff-related news back in April, which affected the stock market as a whole. Given the robust demand anticipated for AI chips, I believe Nvidia, even at its current price, could still climb higher and be a worthwhile investment.

However, if there are any concerns or rumblings that tech companies are cutting back on AI investments, investors who are sitting on big gains may be eager to cash out, which could lead to a decline in Nvidia’s value, at least in the short term.

When might Nvidia hit $5 trillion?

I believe it’s only a matter of time before Nvidia hits a $5 trillion market cap, considering the enormous potential of AI and its likely dominance in the AI chip market for the foreseeable future. But I wouldn’t expect it to reach $5 trillion this year or even within the next 12 months. It could take multiple years, as the stock’s high valuation, combined with uncertainty in the markets due to tariffs and trade wars, may limit its near-term returns.

That’s clear from the stock’s latest earnings beat. Even though Nvidia did well and its guidance was strong, the stock hasn’t been taking off. Investors are clearly thinking about the longer-term picture, including its slowing growth, and what lies ahead. Nvidia still looks to be a solid buy for the long term, but there could be some challenges ahead for it in the short term.

Sept. 5 (UPI) — Tesla is preparing to offer Elon Musk a new pay and incentives plan that would give him more control, more shares and up to nearly $1 trillion in compensation.

Musk is already the world’s wealthiest person, and this new plan is worth about $975 billion.

In order to cash in on the full amount, Musk would have to multiply Tesla’s stock value by eight times over the next decade. All of his compensation would be in Tesla shares. Stockholders will vote on the package at a Nov. 6 annual shareholders’ meeting. Tesla also said in the filing Friday that it will ask shareholders to vote on whether to invest in Musk’s new xAI.

“Retaining and incentivizing Elon is fundamental to Tesla achieving these goals and becoming the most valuable company in history,” Robyn Denholm, chair of the Tesla board, and Kathleen Wilson-Thompson, a director on the board, said in a letter to shareholders.

Musk’s net worth is more than $400 billion, according to Forbes. This compensation plan would add around $900 billion. If he raises Tesla’s stock value from $1.1 trillion to $8.5 trillion, it would be the highest compensation in history.

He would also have to stay at Tesla for 7.5 years to cash in his shares, and 10 years to get the full amount. He would also have to deploy 1 million autonomous taxis and humanoid robots, plus see a more than 24-fold increase in profits.

“If he performs, if he hits the super ambitious milestones that are in the plan then he gets equity — it’s 1% for each half a trillion dollars of market cap, plus operational milestones he has to hit in order to do that,” Denholm said on CNBC’s Squawk Box.

As companies around the world work to create electric cars, self-driving cars and robots, these milestones will be an enormous challenge.

Many shareholders are disillusioned with Musk over his recent performance. Tesla has seen profits slow in the past year as his behavior and his foray into politics hurt the company’s stock prices.

In January, a Delaware Chancery Court judge ruled against Musk’s 2018 compensation package and ordered him to return what he’d already earned from it.

Each of the 96 million shares received in the deal trades at just over $300. Musk would have to pay $23.34 for each of those shares, equal to the amount he was expected to pay when he was first awarded his 2018 compensation package. Tesla is appealing the ruling.

In early August, ​​Tesla’s board gave Musk a $29 billion pay package.

The new package was a “good faith” award designed to keep Musk at the helm of the company.

It would give him 96 million shares of the company that he could take after two years of service in a “senior leadership role” at Tesla. Musk hinted last month that he wanted more ownership at Tesla beyond his 13% stake to prevent his ouster by “activist” shareholders.

The surge comes following announced investments in AI after the company laid off thousands of workers earlier this month.

Microsoft is now the second company ever to surpass $4 trillion in market valuation, following artificial intelligence giant Nvidia.

Microsoft, which is traded under the ticker “MSFT”, is continuing to surge and as of noon in New York City (16:00 GMT) on Thursday, it is up 4.6 percent from the market open.

The technology behemoth said it will spend $30bn in capital spending for the first quarter of the current fiscal year to meet soaring artificial intelligence (AI) demand. Microsoft also reported booming sales in its Azure cloud computing business on Wednesday.

“It is in the process of becoming more of a cloud infrastructure business and a leader in enterprise AI, doing so very profitably and cash generatively despite the heavy AI capital expenditures,” said Gerrit Smit, lead portfolio manager, Stonehage Fleming Global Best Ideas Equity Fund.

Redmond, Washington-headquartered Microsoft first cracked the $1 trillion mark in April 2019.

Its move to $3 trillion was more measured than that of technology giants Nvidia and Apple, with AI-bellwether Nvidia tripling its value in just about a year and clinching the $4 trillion milestone before any other company on July 9.

In its earnings report, revenue topped $76.4bn.

‘Slam-dunk’

“This was a slam-dunk quarter for MSFT [Microsoft] with cloud and AI driving significant business transformation across every sector and industry as the company continues to capitalize on the AI Revolution unfolding front and center,” Dan Ives, senior analyst at Wedbush Securities, said in a note provided to Al Jazeera.

Microsoft’s multibillion-dollar bet on OpenAI is proving to be a game-changer, powering its Office Suite and Azure offerings with cutting-edge AI and fuelling the stock to more than double its value since ChatGPT’s late-2022 debut.

Its capital expenditure forecast, its largest ever for a single quarter, has put it on track to potentially outspend its rivals over the next year.

“We closed out the fiscal year with a strong quarter, highlighted by Microsoft Cloud revenue reaching $46.7bn, up 27 percent [up 25 percent in constant currency] year-over-year,” Amy Hood, executive vice president and chief financial officer of Microsoft, said in a statement.

However, Microsoft’s surge in market value is overshadowed by a wave of layoffs at the tech giant. Earlier this month, the company laid off 9,000 people, representing 4 percent of its global workforce, while doubling down on AI.

Lately, breakthroughs in trade talks between the United States and its trading partners ahead of US President Donald Trump’s August 1 tariff deadline have buoyed stocks, propelling the S&P 500 and the Nasdaq to record highs.

Meta Platforms also doubled down on its AI ambitions, forecasting third-quarter revenue that blew past Wall Street estimates as artificial intelligence supercharged its core advertising business.

The social media giant upped the lower end of its annual capital spending by $2bn – just days after Alphabet made a similar move – signalling that Silicon Valley’s race to dominate the artificial-intelligence frontier is only accelerating.