Super Micro Computer Inc (NASDAQ: SMCI) remains in focus today after Coatue Management founder Philipe Laffont revealed he’s pulled out of AI server company.

In its place, the hedge fund manager has made a substantial investment in a legacy tech company with deep roots in enterprise software and cloud infrastructure.

While Supermicro shares successfully avoided a delisting threat in 2025 – they have not been particularly exciting for investors in recent months.

At the time of writing, the AI stock is down roughly 30% versus its July high.

Why Laffont unloaded SMCI stock

Super Micro Computer has been riding the AI wave, but not without turbulence.

In mid-2024, the company faced allegations from Hindenburg Research, which raised concerns about its accounting practices and executive rehiring decisions. Although Supermicro ultimately filed its annual report without restating financials, the damage to investor confidence lingered.

Add to that weaker-than-expected earnings and guidance in August – partly due to tariff-related constraints and shifting customer specs – and the SMCI stock narrative became more complicated.

More importantly, the artificial intelligence server giant renewed concerns of inadequate internal financial controls last week, adding its remedial measures may fail to fully address the problem or avoid future inaccuracies.

Laffont, known for his tactical exits, may have seen enough red flags to justify locking in gains. While SMCI still trades at a modest valuation, its near-term outlook remains clouded by macro and regulatory risks.

Why Laffont loaded up on Oracle stock

Instead of chasing the flashiest AI names, Laffont turned to Oracle Inc (NYSE: ORCL), a company that’s been quietly reinventing itself for the artificial intelligence era.

Coatue acquired over 3.8 million shares in the second quarter, a stake worth north of $843 million. Oracle’s cloud infrastructure business is booming, with management forecasting 70% growth in fiscal 2026 after a strong 52% expansion the prior year.

CEO Larry Ellison emphasized Oracle’s unique position: “Our applications take all of your application data and make that data available to the most popular AI models.”

With its massive database footprint and enterprise relationships, Oracle stock is becoming a go-to platform for companies integrating AI into their operations.

Laffont’s bet reflects confidence in Oracle’s ability to scale AI solutions without the hype.

Should you invest in ORCL shares today

Oracle stock isn’t cheap – trading at roughly 34 times forward earnings – but its fundamentals are strengthening.

That’s why Wall Street currently rates ORCL shares at “overweight” with price targets going as high as $325, indicating potential upside of another 45% from current levels.

Additionally, Oracle stock does also pay a small dividend yield of 0.88% at the time of writing, which makes it even more attractive as a long-term holding.

While it may not deliver explosive returns like early-stage AI plays, Oracle’s blend of scale, profitability, and strategic positioning could make it a cornerstone in any tech-focused portfolio.

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Shares of Reliance Industries (RIL) continued their decline on Monday, falling by close to 0.4% after their 2% drop on Friday following the company’s 48th Annual General Meeting (AGM) wherein company chief Mukesh Ambani announced his plan to list the company’s telecommunications arm Jio in the first half of 2026.

Despite the market reaction, most analysts remain upbeat on the oil-to-telecom conglomerate’s long-term prospects.

They cited the planned listing of Jio, the group’s rapid retail expansion, and its aggressive push into Artificial Intelligence (AI) and new energy ventures as structural growth drivers.

Jio IPO set to be India’s biggest listing

Ending years of speculation, Ambani confirmed on Friday that Reliance Jio will debut on the Indian stock market in the first half of 2026, subject to approvals.

The listing, expected to raise more than $6 billion through a 5% stake sale, could surpass Hyundai Motors India’s $3.3 billion flotation in 2024 to become the country’s largest-ever IPO.

“Jio is making all arrangements to file for its IPO. We are aiming to list Jio by the first half of 2026,” Ambani told shareholders.

“This will demonstrate that Jio is capable of creating the same quantum of value as our global counterparts.”

Ambani had first indicated in 2019 that both Jio and Reliance Retail would be listed within five years.

IPO announcement could led to telecom tariff hikes, unlock shareholder value

Analysts view the IPO roadmap as a critical step to unlock shareholder value and provide greater transparency into Jio’s business performance.

Brokerages broadly retained their bullish stance on RIL, with price targets suggesting up to 27% upside from current levels.

Citi maintained its “buy” rating with a price target of ₹1,690, calling the Jio listing timeline the highlight of the AGM.

JP Morgan, which has an “overweight” rating and a ₹1,695 target, said the IPO announcement increases the probability of telecom tariff hikes, a move that could boost Reliance’s earnings.

Jefferies echoed the view, projecting a 20% cumulative tariff increase for Jio by FY27. It retained a “buy” call with a target of ₹1,670.

Macquarie, with an “outperform” rating and a ₹1,650 target, called the IPO clarity a “key positive,” noting multiple growth levers across Reliance’s portfolio.

JM Financial reiterated its “buy” with a higher target of ₹1,700, highlighting Jio’s growth potential, Reliance’s AI foray through its new unit “Reliance Intelligence,” and ongoing partnerships with Meta and Google.

JM Financial believes hikes could arrive as early as 2025, benefiting both Reliance and rival Bharti Airtel.

Motilal Oswal expects Jio to deliver a 19% Ebitda CAGR between FY25 and FY28, supported by tariff increases, subscriber growth, and expansion in home broadband and enterprise services.

The brokerage also pointed to Reliance Retail’s continued scale-up and RCPL’s growing footprint as strong contributors to future earnings.

O2C and new energy businesses remain important

While Jio and Retail remain the central focus, analysts are also watching developments in RIL’s oil-to-chemicals (O2C) and new energy businesses.

JM Financial flagged Reliance’s ₹75,000 billion O2C expansion and its rapid progress in renewable energy, both of which are expected to support the company’s ambitious plan to more than double Ebitda by 2027.

Motilal Oswal expects earnings recovery in O2C after a subdued FY25, though it projects consolidated Ebitda from O2C and E&P to remain 4% lower than FY24 levels by FY28.

Nonetheless, it forecasts an 11% CAGR in consolidated Ebitda and profit after tax over FY25-28.

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The share buyback machine in the United States has never been stronger.

By late August, companies had already announced more than one trillion dollars in repurchases, the fastest pace on record. Executions lived up to expectations.

The numbers are impressive, but investors should ask what they really mean.

Share buybacks are more than a technical detail. They have become one of the dominant forces driving up the equity market, influencing liquidity, valuations, and even the perception of corporate strength.

The flow is powerful today, but it carries risks that are not always obvious.

How big has the wave become

The S&P 500 set a new record in 2024 with $942.5 billion in buybacks.

And that record is already under threat. In the first quarter of 2025 alone, companies spent $293.5 billion, up more than 20% from the prior quarter. The 12-month tally to March touched $999 billion, according to S&P Global.

The activity is highly concentrated. Only 20 companies accounted for nearly half of total repurchases in the first quarter.

Apple alone spent $26.2 billion, Meta $17.6 billion, NVIDIA $15.6 billion, and Alphabet $15.1 billion. JPMorgan bought back $7.5 billion.

The sector breakdown shows that technology leads share buybacks with $80 billion, followed by financials at $59 billion and communication services at $45 billion.

Announcements have been even larger. Apple refreshed its program with $100 billion in May. NVIDIA unveiled a $60 billion authorization in its most recent earnings report.

JPMorgan and Bank of America added $50 billion and $40 billion respectively over the summer.

Birinyi Associates noted that buyback plans topped $1 trillion by August 20, the earliest that milestone has ever been reached. July alone saw $166 billion in new announcements, the highest ever for that month.

Why boards keep spending

The drivers are clear. First, corporate cash flows remain strong. The largest technology groups are generating enormous free cash from cloud, mobile, and increasingly AI.

They are able to fund multibillion-dollar capex programs while still setting aside tens of billions for shareholders.

NVIDIA’s results in August were a big case in point.

Second, the banks regained flexibility after this year’s stress tests. Capital return plans at JPMorgan and Bank of America show that financials are back to being major buyers.

Third, repurchases offset stock-based compensation. S&P points out that only 14% of companies actually cut their diluted share count by more than 4% year-on-year. Much of the spending simply keeps share counts flat against rising option grants.

Fourth, buybacks play a market role. They act as an automatic stabilizer during periods of selling.

When markets fell in April, company programs continued to execute, cushioning the downside. Corporate desks have become the most reliable “dip buyers” in the US market.

The tax overhang

It’s not all good news for share buybacks.

Policy is the one headwind. Since January 2023, repurchases are subject to a 1% excise tax under the Inflation Reduction Act. S&P estimates the levy cut operating earnings per share for the index by about half a percentage point in the first quarter.

That is manageable at current levels, but the administration has proposed raising that rate on certain occasions.

A 2 to 4 percent rate would change behavior at the margin. Boards may shift a portion of distributions toward dividends.

The EPS optics of buybacks would also diminish. The current effect is small, but the trajectory of policy is a variable investors cannot ignore.

Does the bid really make equities safer

There is a common assumption that buybacks provide a floor for the market. There is truth in that, but the support is conditional.

Repurchases are discretionary and pro-cyclical.

They are strongest when profits are high and valuations elevated, and they vanish when earnings contract. In other words, companies buy the most stock at the top of the cycle and the least at the bottom.

That means investors cannot treat buybacks like a bond coupon or dividend stream.

They are not a permanent safety net. In recessions, programs are scaled back quickly to preserve cash. The “liquidity floor” created by buybacks is real today, but it is a mirage in downturns.

Another point is effectiveness. At record stock prices, every dollar spent retires fewer shares.

The EPS benefit of buybacks is shrinking compared to 2022 and 2023. This limits their ability to keep earnings optics climbing when valuation multiples are already stretched.

What investors should really focus on

There are three markers worth monitoring.

The first is actual execution versus authorizations. Announcements make headlines, but they are only capacity. The true market impact comes from the dollars spent each quarter, disclosed in 10-Qs and tracked by S&P.

The second is the blackout cycle. Repurchases dip around earnings releases, reducing flow by roughly 30% versus open windows. Investors often mistake this for structural weakness. In fact, many companies continue buying through pre-programmed 10b5-1 plans, just at a lower rate.

The third is the capex trade-off. AI build-outs are swallowing tens of billions in cash. If margins compress or borrowing costs rise, boards may prioritize investment and balance sheet strength over discretionary buybacks. The moment that shift happens, the buyback bid weakens.

The bullish and the bearish case

From a bullish perspective, buybacks are functioning like private-sector quantitative easing.

The flow is steady, automated, and large enough to dampen volatility. As long as cash flows remain healthy, companies will keep absorbing their own stock, shortening selloffs and prolonging the bull market.

The bearish case is that we are near the peak of buyback effectiveness.

Valuations are high, free cash flow will face pressure from rising capex, and tax risk is not trivial. The buyback bid disappears precisely when investors need it most.

In that sense, 2025 may represent a blow-off top in financial engineering, an era when EPS was flattered by record spending that may not be sustainable.

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Alibaba Group shares surged in Hong Kong trading on Monday, boosted by optimism over its cloud business and improving e-commerce operations.

The stock jumped as much as 19% to HK$137.50 (US$17.64), marking its biggest single-day gain in more than three years. It closed higher by more than 13%.

It was also the top performer on the Hang Seng Index, which rose 2.2%.

The rally followed a 13% surge in the company’s US-listed ADRs on Friday, after Alibaba posted robust quarterly earnings.

Net profit rose 78% year-on-year in the April-June period, driven by strong demand for its cloud computing services and steady performance in retail.

AI drives cloud growth and investor confidence

Cloud revenue rose 26% in the quarter, supported by surging demand for artificial intelligence applications.

Chief Executive Eddie Wu described “AI plus cloud” as one of Alibaba’s two core growth engines, alongside e-commerce.

The results prompted a wave of analyst upgrades.

Daiwa Capital Markets analysts John Choi and Robin Leung said profitability in Alibaba’s quick commerce unit is improving faster than expected, while cloud revenue growth is likely to accelerate as AI adoption scales.

They lifted their Hong Kong target price to HK$180 from HK$170.

Jefferies said Alibaba has achieved its “first-stage goal” in quick commerce by building user growth and consumer mind share.

Nomura analysts raised their ADR price target to US$170 from US$152, noting strength in both e-commerce and cloud.

Quick commerce expansion shows promise but pressures margins

Alibaba’s rapid-delivery service, which delivers orders within an hour, is its latest effort to gain share in China’s on-demand delivery market against rivals JD.com and Meituan.

Analysts believe the segment provides long-term growth potential, though margin pressures are expected in the near term.

Nomura analysts Jialong Shi and Rachel Guo cautioned that while the expansion delivers “much-needed growth,” it could weigh on short-term profitability.

They argued, however, that Alibaba’s strength lies in retail-related quick commerce, which will remain a strategic focus.

Competitive AI race intensifies in China

Alibaba is also pushing forward in artificial intelligence, rolling out upgrades to its open-source video-generating model and launching new agentic AI services and chatbots.

Morgan Stanley analysts described Alibaba as holding “China’s best AI enabler thesis,” suggesting that losses from meal delivery and instant commerce could peak this quarter while cloud continues to grow.

Still, Alibaba faces mounting competition as rivals Baidu and Tencent accelerate their own AI model launches.

Investors are closely watching whether Alibaba can successfully monetize its AI bets while managing margin pressures from quick commerce.

For now, analysts expect quick commerce losses to peak in the September quarter, with AI-driven cloud momentum underpinning earnings growth through the rest of the year.

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OpenAI is preparing to expand its Stargate-branded artificial intelligence infrastructure into Asia with a large-scale project in India.

The ChatGPT-maker is seeking local partners to establish a data centre with at least 1-gigawatt capacity, making it one of the biggest in the country.

The move signals a shift in focus towards India, OpenAI’s second-largest user market, where other technology firms such as Microsoft, Google, and Reliance Industries have already built significant cloud and computing facilities.

The development also aligns with India’s $1.2 billion IndiaAI Mission, designed to strengthen domestic AI capabilities.

OpenAI scouts India for mega data centre

According to people familiar with the matter, OpenAI has started discussions with potential partners to develop the facility. The project could be announced when Chief Executive Officer Sam Altman visits India this month, although the timeline remains uncertain.

OpenAI has declined to comment on the matter, but the size of the proposed centre—at least 1-gigawatt—would make it among the largest data facilities in India.

The infrastructure would help deliver customised AI chatbots while keeping user data within the country, addressing ongoing concerns about international data transfers.

Stargate expansion beyond the US

The initiative in India comes as part of OpenAI’s wider Stargate project. In the United States, the company has teamed up with SoftBank Group and Oracle to develop facilities totalling 4.5 gigawatts of computing power, with the investment pegged at $500 billion.

The scale of the American buildout has already drawn attention from President Donald Trump, who described the project as unprecedented.

Beyond the US, OpenAI has announced plans to anchor a 520-megawatt facility in Norway and a 5-gigawatt project in Abu Dhabi, where it will use 1-gigawatt of computing power.

OpenAI for Countries initiative gathers momentum

India’s potential data centre also ties into OpenAI’s collaboration with the US government under the “OpenAI for Countries” programme.

The effort aims to build AI infrastructure in line with democratic values and position the US as a leader in global AI development against China.

More than 30 countries have expressed interest in partnerships, though OpenAI is initially targeting ten. The model allows the company to position itself as both a technology provider and a strategic partner in national AI missions.

Expansion in India during trade tensions

The timing of OpenAI’s Indian ambitions comes as Washington and New Delhi face fresh trade disputes. President Trump has imposed a 50% tariff on Indian goods in response to trade barriers and the country’s purchase of Russian oil.

Despite these challenges, OpenAI has committed to working with the Indian government to support the IndiaAI Mission.

The San Francisco-based firm is also growing its presence in the market by opening an office in New Delhi, expanding its workforce, and launching a $5 monthly plan tailored to Indian users.

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The FTSE 100 Index has pulled back in the past few days, falling from a high of £9,358 on August 22 to £9,187 today. Still, the blue-chip index has performed well this year as it jumped by over 21% from its lowest point in April. This article looks at the most notable performers this year and what to expect in September.

Top FTSE 100 gainers in 2025

Many companies in the FTSE 100 Index have done well by gaining by over 20% this year, mirroring the performance of the broader financial market. 

Fresnillo’s stock price has jumped by over 186% this year, making it the best-performing company in the index. Its performance is mostly because of the strong performance of silver. 

Silver, a top precious and industrial metal, has jumped to $40, the highest level in over a decade, driven by strong demand and a supply deficit. This is important for Fresnillo because it is one of the biggest players in the silver market.

Babcock International’s share price has soared by over 102% this year, making it the second-best-performing company in the FTSE 100 Index. It has jumped because of the ongoing demand for military equipment as it is a key manufacturer of warships, land systems, and aviation. 

European defense companies have surged this year as most countries have boosted their spending. Most of them are focusing their procurement on European companies amid the ongoing trade war with the US.

Airtel Africa’s share price has jumped by 94% this year as the telecom giant has continued to gain market share in the region. The most recent results showed that its customer base jumped by 9% to 169.4 million in the last quarter, with data one jumping by 17.4%.

Airtel is also benefiting from the money transfer business as the number of customers soaring to 45.9 million. Consequently, revenue jumped by 24.9% to $1.42 billion. 

Rolls-Royce share price has jumped by 88% this year as its three segments have continued thriving. Other top gainers in the index include BAE Systems, BT Group, St. James Place, Lloyds Banking Group, BAT, Standard Chartered, and Aviva. 

Top laggards in the Footsie Index

Not all companies in the FTSE 100 Index have done well this year. WPP stock price has dropped by 52% this year as the advertising industry has faced a major challenge. This is notable since WPP is the biggest advertising agency group globally. 

The most recent results showed that WPP Group’s revenue dropped by 7.8% in the first half to £6.6 billion, while the operating proit rose to £221 million.

Croda International stock price has dropped by 26% this year, making it the second-worst performing company in the FTSE 100 Index. Its recent results showed that the sales rose by 4.9% in the first half of the year to £855 million, while its profit plunged 20% to £85 million.

The other notable laggards in the FTSE 100 Index are companies like Bunzl, Taylor Wimpey, Diageo, Barratt Redrow, and the London Stock Exchange (LSE).

FTSE 100 Index analysis 

The daily timeframe chart shows that the FTSE 100 Index has pulled back in the past few days, moving from a high of £9,358 on August 22 to the current £9,187. 

On the positive side, the index remains above all moving averages, a sign that the bullish momentum is continuing. It has moved slightly below the weak, stop & reverse point of the Murrey Math Lines tool. 

Therefore, the most likely scenario is where the index rebounds and possibly hits the extreme overshoot point at £9,687, up by 5.60% from the current level. 

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A quiet and tentative optimism is gracing European markets at the start of the new trading week, with stocks poised for a slightly higher open on Monday.

This fragile calm comes after a turbulent end to the previous week and against a complex global backdrop, as investors digest conflicting economic signals from China and the lingering echo of a pivotal policy hint from the US Federal Reserve.

With US financial markets closed for the Labor Day holiday, Europe is left to set its own tone, and early indications point to a cautious but positive start.

Data from IG suggests Germany’s DAX and Italy’s FTSE MIB will both open around 0.12% higher, with France’s CAC 40 up 0.1%.

The Asian ambiguity: a conflicting signal from China

The session is unfolding against a mixed and somewhat confusing picture from the Asia-Pacific region. The key data point overnight was a set of dueling manufacturing reports from China.

The private RatingDog survey—formerly the Caixin PMI—showed a welcome return to expansion, with a reading of 50.5. However, the official government data, released on Sunday, remained in contraction territory at 49.4.

This divergence paints an ambiguous picture of the health of the world’s second-largest economy, leaving investors to wonder which signal to trust.

The diplomatic thaw: a new partnership in the east

On the geopolitical front, a more clearly positive narrative is emerging. Investors are continuing to assess the significant warming of relations between India and China.

Following a landmark meeting at the Shanghai Cooperation Organization summit, leaders from both nations agreed that they are “development partners, not rivals,” a major diplomatic breakthrough that could have long-term positive implications for regional stability and trade.

The shadow of the Fed: a dovish echo lingers

While the immediate economic calendar in Europe is light, the market is still very much operating in the shadow of last week’s events.

Regional markets closed lower on Friday as traders wrestled with a volley of inflation data.

But the week’s defining moment was a speech from Fed Chair Jerome Powell, which was widely interpreted as dovish-tilting and significantly stoked expectations for an interest rate cut at the central bank’s next meeting on September 16-17.

It is this prospect of easier monetary policy that is providing a quiet, underlying support for equities as a new and uncertain week begins.

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