The big boys want to get bigger

The Federal Reserve raised the benchmark interest rate to 3.75%-4.00%, with most officials projecting one more hike this year. U.S. stock futures rallied as bond yields fell. Key economic data, including jobless claims and manufacturing indices, are expected later. Pre-market, Arm Holdings (ARM) and other tech stocks advanced, while Fluence Energy (FLNC) dropped after cutting revenue guidance.

Salesforce (CRM) announced a $63B revenue target by 2030, exceeding Wall Street estimates. The company unveiled AIforce, integrating CRM data with AI tools like Anthropic's Claude and Slack. Analysts raised price targets, with Stifel setting a $300 target. CRM stock has rebounded 34% in a month, but risks include service disruptions and competition. The company also expanded its partnership with Google Cloud.

The New York Times' lawsuit against OpenAI and Microsoft reveals claims of large-scale content collection for AI training. Microsoft data suggests AI search could reduce Times website traffic by 93%. The filing argues AI poses an existential threat to publishers, with paywalled content allegedly scraped. OpenAI's datasets reportedly contained millions of Times documents, with projects like Mango exchanging training material. The case may set precedents for AI's use of copyrighted content.

Microsoft (MSFT) and NVIDIA (NVDA) are highlighted for attractive valuations despite strong growth. NVIDIA reported $96.2B revenue, up 106% YoY, with Data Center revenue at $89.0B. Microsoft's cloud revenue grew 32% YoY. Both trade at discounts to their 5-year medians, with strong earnings growth expected. Apple (AAPL) is noted as a stable alternative.

Microsoft CEO Satya Nadella emphasized India's AI potential and Microsoft's commitment to the country's AI-first future. He predicted India will have the world's largest developer community by 2030. The remarks were made at the IDEAS4INDIA forum in Seattle, which brought together Indian-origin tech leaders. Microsoft plans to invest $17.5 billion in India from 2026 to 2029, focusing on cloud and AI infrastructure.

Microsoft reported Q4 sales of $90B and EPS of $4.74, exceeding expectations and driving a 28% stock rally. Azure grew 43% and Copilot reached 30M paid seats, but capacity constraints limit further upside. CapEx surged to $41B, and cloud gross margins dipped. An analyst downgraded MSFT to Hold, citing valuation after the rally.