| | Hello and welcome to the Tech Stock Insider, the twice-weekly newsletter covering the biggest opportunities in the tech world. If you’re not looking for more emails from us, just click here to unsubscribe! | Today, we’ll look into the latest tech news, highlight some recent movers, and investigate an under-the-radar tech stock with potential. |
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| | | | Cloud & AI | Microsoft’s AI Cloud Expansion Hits a Surprising Shift | | Microsoft has canceled some U.S. data center leases, signaling a shift in its AI infrastructure strategy. The company, which has been aggressively expanding its cloud and AI capabilities, is adjusting its external data center footprint while continuing to invest heavily in its infrastructure. | According to industry reports, Microsoft voided leases for several hundred megawatts of data center capacity, affecting agreements with private operators. While the company did not provide specific reasons, it reaffirmed its commitment to spending over $80 billion this fiscal year on AI infrastructure. | Microsoft operates one of the largest AI cloud ecosystems, powering services for OpenAI, enterprise clients, and AI-driven products. Reports indicate that some workloads may shift to other cloud providers, such as Oracle, as Microsoft optimizes its AI computing resources. | The decision to adjust leased capacity significantly highlights the complex challenges of managing AI computing demand as the industry races to expand data center capacity for AI model training and enterprise cloud services. | Despite these changes, Microsoft remains focused on expanding its AI cloud services globally. The company continues to build new data centers while maintaining strategic partnerships to meet the growing demand for AI-powered computing. | As Microsoft refines its AI infrastructure approach, its cloud investments remain at the core of its long-term growth in enterprise AI, computing power, and large-scale AI deployments. |
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| | Artificial Intelligence | Apple’s AI Push Gets Bigger With $500 Billion U.S. Plan | | Apple is making one of its most significant investments, pledging $500 billion over the next four years to strengthen AI infrastructure and U.S. manufacturing. The company announced plans to build a 250,000-square-foot server facility in Houston, Texas, set to open in 2026. | The facility will focus on producing AI-optimized servers to support Apple Intelligence, the company’s latest AI initiative. This expansion aligns with Apple’s broader push into AI-powered services and products, enhancing its ability to develop and deploy AI tools across its ecosystem. | Apple will double its Advanced Manufacturing Fund and hire 20,000 new employees in various technology and production roles as part of the investment. The company also confirmed it will begin manufacturing servers in Houston later this year, signaling its commitment to expanding its domestic AI capabilities. | Apple has long maintained a presence in U.S. manufacturing, previously investing in chip development and assembly operations. This latest commitment reinforces its focus on AI, automation, and next-generation computing. | Apple’s expansion into AI-driven hardware manufacturing marks a significant shift in its long-term technology strategy. With this move, Apple is solidifying its position in AI infrastructure and advanced computing, setting the stage for further AI integration into its ecosystem. |
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| | | | Payments | PayPal Merges Business Services Under One Platform | | PayPal is restructuring its enterprise payment system, consolidating multiple business services under PayPal Open. This new platform combines Braintree, Hyperwallet, and Chargehound, providing businesses with a unified solution for fraud protection, cross-border payments, buy now, pay later options, and AI-powered financial insights. | Over the years, PayPal expanded its business-to-business (B2B) offerings through acquisitions, creating a fragmented system of multiple brands. With PayPal Open, the company aims to simplify financial transactions for merchants and developers by integrating these services into one seamless payment platform. | Despite the shift, Venmo will remain a separate brand, maintaining its identity as a consumer-focused payment service with over 90 million active users in the U.S. The decision reflects Venmo’s strong brand recognition in peer-to-peer payments, which differs from PayPal’s B2B focus. | The rollout of PayPal Open begins this week, with a phased transition for businesses starting in April. PayPal reassures businesses that existing integrations will continue working, allowing a smooth migration to the new system without disruption. | With this consolidation, PayPal is streamlining its business operations, reinforcing its position in the enterprise payments market, and enhancing financial services for businesses while keeping Venmo as a standalone consumer payment brand. |
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| | Recent Tech Movers | Applied Digital (APLD) continues to thrive as it segues into the data center industry. Its growing revenue and partnerships bode well as spring approaches. | Pony AI (PONY) recently launched a robotaxi service connecting Guangzhou, China, to other strategic locations in the area. This move appears to be the beginning of a large-scale plan to grow its share price despite some setbacks today. | Block (XYZ), on the other hand, is clearly moving in the wrong direction as it falls behind its peers in earnings and revenue. With a weak outlook for the coming months, we suggest leaving this stock on the shelf for now. | | | | Don’t Overlook This Tech Stock | Alibaba Group (BABA) may seem out of place here, growing some 70% in the last six months. Even so, the Chinese e-commerce giant appears that it’s not trading anywhere near its potential. | For one, its current share price pales in comparison to some of its rivals, like Amazon and other tech giants, despite having a dominant position in the Chinese market. Its growing reputation internationally allows the company to capture even more users. | The improving regulatory landscape in China bodes well for Alibaba’s future, and is coupled with several cost-cutting measures to streamline its operations. Finally, huge AI investments mark even more reason for a boost in valuation on the horizon. | | Everything Else | Apple has officially removed the Lightning port from the iPhone 16E, fully transitioning to USB-C. Google saw its Pixel 9a unexpectedly appear in a Samsung Galaxy S25 Edge leak. Samsung is reportedly making the Galaxy Z Fold 7 thinner than ever, with a sleek 9mm design. Apple is increasing its U.S. investments in manufacturing and technology. BBC explored how AI interprets Rorschach inkblot tests, revealing surprising insights into machine perception. New York Times reports that Silicon Valley startups are in a race to dominate the AI landscape. |
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| | That's our coverage for today; thanks for reading! Reply to this email with feedback or any tech stocks you want me to check out. | Best Regards,
—Noah Zelvis
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