The AI Investing Pulse

September 18, 2025

In this Week’s Edition:

1. Analysis - AI’s unexpected movers: These 3 stocks had a standout week

2. Stock Ideas - Morgan Stanley 2 cybersecurity stocks to watch

3. News - Google joins $3 trillion market cap club

4. Startups - BNVT Capital launches $150M fund for AI-first startups

5. Trends - The future of AI in 2099: threat or ally?

6. Other News - How people are using ChatGPT

AI’s Unexpected Movers: These 3 Stocks had a Standout Week

In the fast-moving world of AI investing, market movements are rarely predictable — and this week delivered some striking examples. Three stocks delivered standout performances, led by a sharp rally in two major Chinese tech giants. Their gains reflect a broader resurgence in China’s AI sector, where policy shifts, breakthroughs in chip development, and evolving investor sentiment are driving renewed momentum.

These moves also underline how external catalysts and market psychology can at times propel stocks beyond what fundamentals alone suggest. By tracking both fundamentals and momentum, we can better spot those moments where opportunity emerges in unexpected ways.

1. Tesla, Inc. $TSLA ( ▲ 0.23% )  

• Sector / Industry: Consumer Cyclical / Auto Manufacturers

• AI Stack Layer: Application & Edge (Autonomous Driving, Robotics, Energy)

• Market Cap: $1.4T

• 1-Week Price Total Return: 22.4%

• AIIP Scores: Total Score: 11 - Relative Strength (RS): 83

• Ranking Status: 📈 Momentum

🧠 What the Company Does
Tesla integrates AI into its autonomous driving, robotics, and energy solutions, placing it squarely in the Application & Edge layer of the AI stack. CEO Elon Musk recently reaffirmed the company’s focus on robotaxis and AI-led initiatives, positioning Tesla as more than just an auto manufacturer.

💡 Why It Stands Out
Tesla’s 22.4% rally in just one week is a vivid example of how sentiment and decisive catalysts can amplify market performance. The spark came from Elon Musk’s surprise $1 billion personal share purchase on 12 September, his first major buy since 2020. The move, which instantly added $15 billion to Tesla’s market cap, was read by investors as a rare and powerful show of confidence. Coming at a time when Tesla is doubling down on AI-driven initiatives like robotaxis and robotics, the buy sent a strong signal that Musk sees long-term value in the company’s positioning. The resulting momentum demonstrates how leadership actions and bold statements can at times outweigh the steadier signals from fundamentals, driving sharp short-term moves.

2. Alibaba Group Holding Limited $BABA ( ▲ 4.3% )  

• Sector / Industry: Consumer Cyclical / Internet Retail

• AI Stack Layer: Hardware & Infrastructure (Cloud), Application & Edge

• Market Cap: $371B

• 1-Week Price Total Return: 15.4%

• AIIP Scores: Total Score: 34 - Relative Strength (RS): 84

• Ranking Status: 📈 Momentum

🧠 What the Company Does
In many ways, Alibaba combines elements of Amazon (e-commerce), Microsoft/AWS (cloud), and PayPal (digital payments), with the added twist of in-house chip design. It is a heavyweight in internet retail, but its AI ambitions extend well beyond e-commerce. The company integrates AI across shopping, logistics, and digital payments, while Alibaba Cloud drives advances in enterprise AI services and infrastructure. Its chip unit, T-Head, is also developing homegrown semiconductors to support China’s self-sufficiency push.

💡 Why It Stands Out
Alibaba’s 15.4% surge this week highlights how investor enthusiasm can run well ahead of steady fundamentals. Optimism around China’s domestic AI chip progress, particularly through its T-Head unit combined with speculation about founder Jack Ma’s renewed involvement, lifted sentiment and trading volumes sharply. While heavy AI investment costs still weigh on profitability, the rally shows how progress in chips and leadership shifts can act as powerful short-term catalysts.

3. Baidu, Inc. $BIDU ( ▲ 1.87% )  

• Sector / Industry: Communication Services / Internet Content & Information

• AI Stack Layer: AI Development & Model Training, Application & Edge (Search, Autonomous Vehicles)

• Market Cap: $47.3B

• 1-Week Price Total Return: 23.3%

• AIIP Scores: Total Score: 27 - Relative Strength (RS): 67

• Ranking Status: No Signal

🧠 What the Company Does
Baidu is often called “China’s Google”, thanks to its dominance in search and advertising, but its AI reach goes further. It has invested heavily in autonomous driving through Apollo (a counterpart to Waymo) and conversational AI via DuerOS. Baidu Cloud supports enterprises with model training and data solutions, while its newest Ernie X1.1 model pushes into the generative AI race — drawing comparisons to OpenAI. This combination of search, cloud, and AI innovation reinforces Baidu’s role as a cornerstone of China’s tech ecosystem.

💡 Why It Stands Out
Baidu’s 23.3% weekly surge shows how quickly product breakthroughs can shift sentiment and trading activity. The unveiling of Ernie X1.1, its latest reasoning model, reinforced confidence in Baidu’s ability to compete with global AI leaders and sparked heavy investor interest. This rally illustrates how headline innovations, particularly in China’s increasingly competitive AI landscape, can drive short-term momentum even when longer-term fundamentals remain under scrutiny.

🔍 Final Take

Tesla, Alibaba, and Baidu each show how quickly sentiment and catalysts can propel stocks to standout gains in the AI space. Leadership actions, progress in China’s chip ambitions, and advances in AI models were enough to spark rallies well beyond what fundamentals alone might suggest.

From a technical perspective, all three stocks are now extended after their sharp moves. That doesn’t rule out the potential for further upside — momentum can carry stocks higher — but it does raise the importance of watching for either consolidation or fresh catalysts to sustain the trend. Companies’ fundamentals remain the anchor, yet recognising when sentiment takes control, understanding how far momentum can stretch, and incorporating technical signals from the charts are all essential to navigating today’s AI-driven market.

_{Disclaimer - This content is provided for informational purposes only and does not constitute investment advice, personal recommendations, or an invitation to engage in any investment activity. The information presented is derived from publicly available sources and should not be solely relied upon for making investment decisions. Always consult with a qualified financial professional before making investment choices. Past performance is not a guide to future performance.}

_{Methodology & Scores - All scores are proprietary and calculated using data from Finbox (powered by S&P Global Intelligence). Total Score combines metrics for Sales and EPS Growth, Financial Quality, and Valuation, to assess overall business strength (out of 100). Relative Strength (RS) Score measures a stock’s price performance relative to the AI universe (173 AI-focused public companies). Ranking Status is assigned based on score combinations: Fundamental: Total Score ≥ 70, RS < 80. Momentum: RS ≥ 80, Total Score < 70. Watchlist: Total Score ≥ 70 and RS ≥ 80.}

TOP AI STOCKS PERFORMANCE

TOP AI ETFs PERFORMANCE

AI STOCK IDEAS

Morgan Stanley 2 cybersecurity stocks to watch — RS Web Solutions

Zacks AI investment ideas — Yahoo Finance

These 2 AI cloud stocks beat Nvidia and Palantir — The Motley Fool

AI STOCK & ETFs NEWS

Google joins $3 trillion market cap club — Reuters
Alphabet hits a historic $3T valuation as AI momentum drives big tech higher, cementing its dominance in the sector.

Prediction: Tesla stock to soar 88% in the next year — The Motley Fool
Tesla could rise nearly 90% over the next year, fueled by new models, higher production, and strategic partnerships that bolster investor optimism.

US–UK tech pact marks $42B investment in AI, quantum & nuclear — Seeking Alpha
The US and UK announced a £31B pact to strengthen AI, quantum, and nuclear collaboration, with major US tech firms pledging significant investments.

AI STARTUPS

BNVT Capital launches $150M fund for AI-first startups — Tech Funding News
BNVT Capital unveils a $150M fund targeting AI-driven startups tackling systemic problems through deep tech and transformative innovation.

AI giants lock horns: OpenAI vs Anthropic in fundraising battle — Quartz
OpenAI and Anthropic lead the 2025 fundraising race with $300B and $61.5B valuations, pursuing very different strategies to achieve growth and profitability.

Google pledges £5B AI investment in UK — The Guardian
Alphabet will invest £5B in UK AI infrastructure, creating over 8,000 jobs per year, coinciding with President Trump’s visit.

AI TRENDS

The future of AI in 2099: threat or ally? — Medium
Exploring AI’s potential evolution by 2099 — as either humanity’s last invention or its most powerful ally in solving global challenges.

AI’s role in powering the future energy transition — AI Magazine
Siemens and Nvidia partner to enhance industrial AI and digitalization, boosting efficiency and supporting renewable energy adoption.

AIQuant launches $AIQ token for AI-driven crypto trading — GlobeNewswire
AIQuant introduces the $AIQ token to fuel its AI-driven crypto trading platform with automation, gamified features, and cross-chain strategies.

OTHER

How people are using ChatGPT — OpenAI
From content creation to accessibility, users are adopting ChatGPT across industries, leveraging its multimodal capabilities for productivity and innovation.

MIT students build 3D printer that turns food waste into objects — 3Dnatives
MIT graduates create FOODres.ai, a 3D printer that converts food waste into functional items, combining AI with sustainable design.

_{Disclaimer - The information contained on this newsletter does not constitute investment advice or a personal recommendation, nor is it an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investments, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all. The information presented is based on publicly available data and sources believed to be reliable; however, its accuracy or completeness cannot be guaranteed. Market conditions can change rapidly, and the information provided may no longer be up to date. This content is for informational purposes only and should not be construed as financial, legal, or tax advice. Data sources: S&P Global Market Intelligence}