According to a report by CNBC, the United States and the United Arab Emirates are seemingly a match made in heaven. While the United Arab Emirates is striving to establish supremacy in the AI race, the United States wishes its big tech firms to dominate the global AI arms race.
The alliance is being hailed as a perfect match, considering both parties have just enough to provide the other. While the US supplies the world’s most advanced AI chips to the UAE, the UAE boasts its vast reserves of energy to power data centers.
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No wonder Abu Dhabi embraced Trump during his recent visit, with both nations finalizing hundreds of billions of dollars in artificial intelligence investments.
“Energy‑rich Gulf nations join the roster of trusted partners just as U.S. data‑center grids hit their physical limits” At the same time, “the UAE gains access to advanced compute and talent, helping it pursue its own sovereign AI goals. The Middle East, flush with cheap energy and capital, is poised to become the next regional AI hub.”
-Myron Xie, an analyst at SemiAnalysis, told CNBC.
Some of the big Abu Dhabi deals made recently include OpenAI, Oracle, Nvidia, and Cisco Systems announcing they will help build Stargate UAE AI campus, anticipated to launch in 2026. OpenAI announced the Stargate Project in January in partnership with Abu Dhabi investment firm MGX and Japan’s SoftBank. The Stargate Project is a $500 billion private sector AI-focused investment vehicle.
Speaking of the alliance, Mohammed Soliman, senior fellow at the Middle East Institute in Washington, DC, has noted how “compute, not crude, is going to be the central pillar of the U.S.-Gulf relationship.”
“Moving forward, it’s no longer going to be only about energy policy; it is going to be about compute and how we and the Gulf are building an AI ecosystem that’s able to service third markets, emerging markets.”
As Daniel Newman, CEO of Futurum Group, told CNBC, “The race is on to diffuse U.S.-based AI into every part of the world.” That said, the US and UAE are not just partners, but co-architects of a global AI order.
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12. Informatica Inc. (NYSE:INFA)
Number of Hedge Fund Holders: 23
On May 28, Wolfe Research downgraded Informatica Inc. (NYSE:INFA) from “Outperform” to Peer Perform without a price target. Informatica is a leader in enterprise AI-powered cloud data management. The rating downgrade follows news that the company has entered into a definitive agreement to be acquired by Salesforce for $8B in equity value, or $25 per share.
According to the firm, the acquisition news is already reflected in Informatica’s current stock price, so there is limited upside potential for the stock. Even though the acquisition by Salesforce is a positive move for Informatica’s shareholders, its stock value will be negatively impacted if the acquisition fails to materialize.
This implies that the acquisition is a major factor in Informatica’s current market performance and investor expectations. As the acquisition date moves closer, investors will be closely watching the stock for any developments that could have an impact on the deal’s completion.
11. Box, Inc. (NYSE:BOX)
Number of Hedge Fund Holders: 32
On May 28, JPMorgan has increased its price target for Box, Inc. (NYSE:BOX) from $37 to $39 while maintaining an “Overweight” rating on the company’s shares. Box, Inc. (NYSE:BOX) develops intelligent content cloud software.
Analyst Pinjalim Bora noted how Box has had a robust start to the year, but also indicated that its guidance integrates a degree of conservatism, positioning the company well in the current market environment.
Box’s reported performance demonstrated calculated billings growth of 27% year-over-year (y/y) in USD, topping the consensus estimate of 13% y/y growth. While some of this growth benefited from early renewals despite normalizing, the figures exceeded guidance. The company attributed the growth to strong demand for Box’s Enterprise Advanced SKU and AI offerings.
The firm also noted how Box has had many positive indicators. For instance, revenue for the quarter was said to be in line with expectations, while pro forma earnings per share (PF EPS) beat forecasts.
Nevertheless, the company management has cautioned about its second-half guidance owing to macroeconomic uncertainties. For this reason, it has adjusted its billings growth outlook in CC but maintained its revenue growth forecast.
The analyst further highlighted the successful adoption of Box’s bundled offerings and the potential for AI to generate significant consumption-based revenue when discussing its first quarter. The lowered billings growth guidance for the fiscal year was seen as the only concern, which may have investors questioning demand in the second half.
Overall, JPMorgan maintains a positive medium-term outlook on Box, noting its position in the industry, particularly with the introduction of Agentic AI.