Amazon’s Satellite Leap, ASML’s Earnings Surge, & Big Tech’s AI Alliances
Portfolio News #25
Hi All,
Welcome to our brief overview of portfolio news from the past few days.
Big Tech’s Space Race & AI Alliances
Amazon’s Satellite Leap: Amazon is making a massive leap into satellite connectivity by acquiring Globalstar for $90.00 per share ($11.57billion). The FCC-approved deal allows Amazon to provide direct-to-device (D2D) services via its Leo satellite network starting in 2028, and includes an established partnership to provide satellite connectivity for Apple’s iPhone and Apple Watch features. This effectively leapfrogs Amazon into the D2D market that SpaceX’s Starlink has been targeting. While legal investigations into the deal’s valuation are ongoing, the operational synergy with Apple provides a massive, immediate subscriber base.
Anthropic’s Valuation: Separately, Amazon-backed Anthropic is seeing a valuation surge, with offers as high as $800 billion as it explores a potential IPO.
Alphabet’s Windfalls & Expansion: Alphabet is poised for a potential $122 billion windfall from its 6.11% stake in SpaceX, should the latter reach a $2 trillion valuation in an IPO. This SpaceX windfall represents a staggering return on early investment that significantly bolsters Alphabet’s financials. On the operational front, Google Cloud is deepening its agentic AI ecosystem through strategic partnerships with Thoma Bravo and Cadence, optimizing Gemini models for enterprise-scale AI transformations.
New Google Integrations: Further expanding its AI applications, Google is negotiating an agreement with the Department of Defense that would allow the Pentagon to deploy its Gemini AI models in classified settings. In the consumer luxury space, Kering aims to launch smart glasses under the Gucci brand in partnership with Google next year, positioning it as the first major luxury brand to enter the AI-powered eyewear sector.
Regulatory Headwinds: Despite these wins, Alphabet continues to face regulatory headwinds, including a new antitrust lawsuit from Aptoide regarding monopolizing Android app distribution and billing systems.
Software & Specialized Services
Adobe: Adobe launched its Firefly AI Assistant, which automates complex multi-step workflows across Creative Cloud apps like Photoshop and Premiere. In a notable move toward an open ecosystem, Adobe is also integrating third-party models, including Anthropic’s Claude, directly into its platform.
Autodesk: Autodesk expanded its long-term partnership with Globant, which was named an Autodesk Tandem Digital Twin Solution Provider. This collaboration aims to accelerate digital twin implementation in global logistics and smart manufacturing.
Other Key Updates
ASML: Analysts have significantly increased their price target to $1,846, citing “substantial AI demand”. Supporting this outlook, ASML posted strong first-quarter 2026 earnings of €7.15 per share, up 19.2% year over year. Total net sales were €8.77 billion, increasing 13.2% from the year-ago quarter. As a result, ASML raised and narrowed its full-year outlook, now expecting 2026 total net sales between €36 billion and €40 billion. The company is also planning to double its EUV production capacity by 2027 to meet expected sales growth driven by global memory shortages and advanced EUV adoption. Meanwhile, a surge in sales from South Korea, which hit 45% of the Q1 total, is helping offset headwinds from evolving export controls in China.
Advanced Micro Devices: The company is expanding its footprint in the autonomous driving sector through a $60 million joint investment in Wayve. Additionally, Supermicro introduced three new edge AI systems powered by AMD’s EPYC 4005 series processors, targeting high-performance workloads in space-constrained environments such as retail stores, manufacturing sites, healthcare environments, where data is processed locally.
That’s a wrap. See you soon.