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5 AI Stocks Set to Soar: Best Buys for October 2025’s Tech Boom
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AI Stocks to Watch Today (Nov 6, 2025): Snap rockets on Perplexity AI deal, Arm guides higher, Pony.ai & WeRide stumble, Alphabet lines up new AI data centers

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6 November 2025

Your quick, news‑driven briefing on the most interesting AI stocks for Thursday, November 6, 2025.

Key takeaways

  • Snap (SNAP) surged after unveiling a $400 million partnership with Perplexity AI to bring AI‑search natively into Snapchat—Wall Street read it as a credible catch‑up move versus bigger rivals. [1]
  • Arm (ARM) posted a strong quarter and guided above expectations, citing accelerating AI demand and higher‑royalty Compute Subsystems (CSS); shares ticked higher. [2]
  • Pony.ai (PONY) and WeRide (WRD)fell ~10% on Hong Kong debuts, a reality check for autonomous‑driving names amid IPO crowding. [3]
  • Alphabet (GOOGL) headlines today’s infrastructure push: a planned AI data center on Christmas Island and the biggest‑ever investment plan in Germany—both underscore hyperscaler capex momentum. [4]
  • Broader context: AI‑heavy tech remains the market’s engine—but also a concentration risk, with tech near 36% of the S&P 500; this week’s wobble highlights how AI narratives can swing the tape. [5]

Market snapshot: AI still drives, but volatility bites

After months of AI‑led outperformance, this week’s mini‑selloff in AI bellwethers (e.g., Nvidia, Palantir) is a reminder that index performance is tethered to AI‑centric megacaps. Tech’s share of the S&P 500 has swelled to ~36%—above dot‑com bubble peaks—so AI headlines are market headlines. Pullbacks can be “healthy resets,” but the concentration raises downside risk if AI spending or monetization disappoints. [6]

Stock‑by‑stock: What moved today

1) Snap (SNAP): A $400M shot of AI

  • The news: Snap struck a $400 million, one‑year deal with Perplexity AI to embed an AI search agent directly into Snapchat. The rollout aims to deliver verifiable answers in‑app; Snap says Perplexity controls responses and won’t use query data for ads. Revenue impact begins in 2026. [7]
  • Why it matters: Investors see a credible way for Snap to upgrade engagement and ad utility with AI without the cost structure of building frontier models from scratch. Analysts praised the ambition while flagging compute‑cost unknowns. [8]
  • Read‑through: Positive for AI application plays and for model‑as‑a‑service providers that can quickly “snap‑in” experiences to large consumer platforms.

2) Arm (ARM): AI royalty flywheel spins faster

  • The news:Revenue +34% Y/Y to $1.14B; Q3 guidance $1.23B (midpoint) beat Street estimates. Management highlighted CSS (Compute Subsystems) driving higher royalties and faster time‑to‑silicon, plus continued momentum across smartphones, data centers, and auto. Shares rose post‑print. [9]
  • Why it matters: Arm sits at the CPU heart of AI infrastructure—especially where power efficiency is the bottleneck. A bigger CSS mix implies structurally higher take rates as customers adopt fuller Arm blueprints instead of piecemeal IP. [10]

3) Robotaxis in the real world: Pony.ai & WeRide

  • The news:Pony.ai and WeRideslid ~10% on their Hong Kong debuts after raising almost $1.2B combined. Analysts cited IPO oversupply and weak secondary performance as near‑term headwinds. [11]
  • Why it matters: A reminder that autonomous‑driving timelines and unit economics remain debated. Execution risk and market sentiment still swing these names more than fundamentals.

4) Alphabet (GOOGL): Capex compass points due AI

  • The news: Alphabet is planning a powerful AI data center on Christmas Island tied to Australia’s defense cloud, and is preparing its biggest‑ever investment plan in Germany (data centers, renewable‑powered infrastructure). [12]
  • Why it matters: Hyperscaler AI capex continues to scale, fortifying demand for chips (GPUs/CPUs), networking, memory, storage—and raising the bar for ROIC expectations in 2026–2027.

5) Nvidia (NVDA) & AMD (AMD): Still the fulcrum

  • What to know today: Even without a fresh, stock‑specific catalyst this morning, both remain macro swing factors for the AI trade. The market’s sensitivity to AI demand headlines kept these leaders in focus after AMD’s above‑consensus outlook yesterday and recent valuation‑driven volatility. [13]

Theme watch: How today’s headlines map to investable buckets

  • AI Applications (front‑end demand): Snap shows how consumer apps can buy model access and ship differentiated features fast. Watch for usage lift and ad conversion metrics over the next two quarters. [14]
  • AI Infrastructure & IP (back‑end enablers): Arm’s beat‑and‑raise underscores demand for efficient compute; CSS adoption expands Arm’s royalty stack as AI scales. [15]
  • Autonomy & Mobility: Pony.ai/WeRide price action illustrates funding‑cycle sensitivity; milestones (commercial miles, safety stats, city permits) will matter more than hype. [16]
  • Hyperscaler Capex: Alphabet’s new builds (Australia/Germany) affirm multi‑year spend supporting suppliers across chips, power, networking and storage. [17]
  • Macro overlay: With tech ~36% of the S&P 500, AI concentration risk makes pullbacks sharper—and rebounds faster—than in prior cycles. Position sizing and time horizon matter. [18]

What to watch through the close

  1. Follow‑through in SNAP as traders parse the cash/equity structure, compute costs, and 2026 monetization cadence. [19]
  2. ARM commentary drift—any sell‑side notes on CSS adoption or hyperscaler CPU share claims can extend the move. [20]
  3. AI‑infra headlines from hyperscalers, especially around new buildouts, grid partnerships, and supply chain (networking, memory, power). [21]
  4. Tape sensitivity to AI leaders (NVDA, AMD, PLTR): a small move in the megacaps still moves the indices. [22]

Bottom line

Today’s leaders are Snap (AI features driving engagement narrative) and Arm (AI royalty flywheel). Alphabet’s capex signals keep the infra bid intact, while robotaxi debuts remind investors that AI adoption curves aren’t linear. With AI so central to index performance, stock‑specific news can quickly become market‑moving. [23]

Note: This article is for informational purposes only and does not constitute investment advice.

Top 7 Artificial Intelligence (AI) Stocks for Long Term Investment
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References

1. www.reuters.com, 2. www.reuters.com, 3. www.reuters.com, 4. www.reuters.com, 5. www.reuters.com, 6. www.reuters.com, 7. www.reuters.com, 8. www.reuters.com, 9. www.reuters.com, 10. www.reuters.com, 11. www.reuters.com, 12. www.reuters.com, 13. www.reuters.com, 14. www.reuters.com, 15. www.reuters.com, 16. www.reuters.com, 17. www.reuters.com, 18. www.reuters.com, 19. www.reuters.com, 20. www.reuters.com, 21. www.reuters.com, 22. www.reuters.com, 23. www.reuters.com

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Marcin Frąckiewicz Latest posts

CEO of TS2 Space and founder of TS2.tech. Expert in satellites, telecommunications, and emerging technologies, covering trends in space, AI, and connectivity.

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Stock Market Today

  • Target Hospitality Q3: Narrow Loss Beats Revenue, Mixed Outlook, Zacks Rank Hold
    November 6, 2025, 11:36 AM EST. Target Hospitality (TH) posted a Q3 loss of $0.01 per share, narrower than the Zacks consensus loss of $0.04, and far from last year's $0.20 gain. The result, adjusted for non-recurring items, delivered an earnings surprise of +75.0%. Revenue for the quarter ended September 2025 was $99.36 million, topping the consensus by 16.48% and up from $95.19 million a year ago. Over the last four quarters, TH beat EPS estimates twice and revenue estimates four times. Year-to-date, shares are down about 20.1% versus the S&P 500's 15.6% gain. Looking ahead, the current consensus calls for -$0.03 per share on about $97 million in revenue for the next quarter, and -$0.26 on $313.8 million for the full year. Zacks Rank: Hold.
  • Warby Parker (WRBY) Q3 EPS Beats, Revenue Miss; Outlook Mixed
    November 6, 2025, 11:34 AM EST. Warby Parker Inc. (WRBY) reported Q3 earnings of $0.11 per share, beating the Zacks Consensus of $0.09 and marking a +22.22% surprise from a year ago. Revenue came in at $221.68 million, shy of the consensus by about 1.0% versus a year earlier's $192.45 million. The stock has fallen roughly 21.3% year-to-date, underperforming the S&P 500 (+15.6%). The earnings call will be critical as management guides for the next quarter, with the current consensus calling for $0.06 per share on $223.19 million in revenue and full-year estimates around $0.37 on $885.42 million. Zacks ranks the stock #3 Hold, noting mixed estimate revisions and a still-challenging industry backdrop for Consumer Products - Staples.
  • CarMax stock falls in premarket trading as CEO Bill Nash steps down; interim leadership tapped
    November 6, 2025, 11:32 AM EST. CarMax Inc. shares fell more than 10% in premarket trading after the retailer announced the unexpected departure of CEO Bill Nash and issued a weak outlook for its current fiscal quarter. The forecast called for an 8% to 12% drop in comparable-store used unit sales and diluted EPS of $0.18 to $0.36, including about $0.09 in non-recurring costs tied to leadership changes. Board member David McCreight will serve as interim CEO, and Tom Folliard will become interim executive chair. William Blair downgraded CarMax to market perform from outperform. The stock decline comes as the company trails peers; Carvana has surged about 52% this year. CarMax is scheduled to report results on Dec. 18.
  • EU opens probe into Deutsche Börse and Nasdaq over derivatives trading
    November 6, 2025, 11:30 AM EST. The European Commission has opened a probe into Deutsche Börse and Nasdaq over suspected illegal derivatives trading practices. Investigators began unannounced inspections in September 2024 and are examining whether the two firms may have colluded to steer listing, trading and clearing of derivatives, possibly by allocating demand, coordinating prices or sharing sensitive information. The Commission says that opening an investigation does not prove wrongdoing. Deutsche Börse says its cooperation with authorities and Eurex is aimed at promoting competition, not stifling it. Deutsche Börse operates the largest derivatives exchange in the EEA, while Nasdaq runs US and European exchanges.
  • Meta Platforms to Borrow $30 Billion: Implications for Investors and Capital Structure
    November 6, 2025, 11:28 AM EST. Meta Platforms (META) is targeting a $30 billion debt raise, a move with meaningful implications for its capital structure and investors. The funds could finance share repurchases, faster AI investments, or potential acquisitions, while increasing leverage and expected interest expense. For shareholders, the key questions are how management plans to deploy the proceeds, the debt's maturity mix, and the cost of that debt in a rising interest-rate environment. A higher debt load could accelerate EPS growth if ROI on spending exceeds the cost of debt, but it also raises risk if ad revenue slows or growth disappoints. In short, the decision reshapes the balance sheet, cash flow, and long-term profitability-attend to how proceeds are used and how debt is managed over time.
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