Lian Loo @Chongloo: "$U Earnings Tomorrow! The Nasdaq keeps..."

Singapore

$U (Unity Software Inc.) Earnings Tomorrow! The Nasdaq keeps making new highs, and tomorrow it’s finally $U earnings day. My expectation? Unity probably delivers a double beat. The main uncertainty is guidance. But here’s the important part: Unity already raised guidance ahead of earnings recently, saying previous forecasts were too conservative. That matters. Companies usually wait until earnings day to raise outlooks unless internal data is already showing strong momentum. So the fact they pre-announced higher guidance could mean management is seeing improving trends earlier than expected. Fundamentally, the setup doesn’t look bad. The problem is that the market has been extremely strict with software stocks lately. Even companies posting solid earnings have still sold off hard afterward. So at this point, market reaction depends heavily on sentiment and positioning. That said, if $ORCL (Oracle Corporation) pulls back, I may consider rotating the remainder of my $U position into Oracle instead. Why? Because I increasingly believe the AI hyperscaler backlog story is real. Recent OpenAI model releases have been extremely impressive. They’re becoming true “all-around” AI systems, which increases confidence that massive AI infrastructure orders will actually get fulfilled. There are also reports allegedly from Microsoft employees suggesting the probability of these AI cloud contracts being canceled is relatively low. In reality, as long as companies like OpenAI and Anthropic continue receiving funding, they will likely continue deploying infrastructure aggressively. And if that happens, cloud providers become the next major AI winners. This is basically the second phase of my long-term AI investment roadmap: Phase 1 (already happening): The chip companies. $NVDA (NVIDIA Corporation), $AMD (Advanced Micro Devices Inc), semiconductor infrastructure, AI hardware. Phase 2 (2027–2028): The cloud giants. $MSFT (Microsoft) and especially $ORCL benefiting from massive AI cloud order fulfillment and data center expansion. 2028 could potentially become Oracle’s real breakout earnings year if backlog conversion accelerates. Phase 3 (2030+): Consumer AI applications and robotics. Things like $TSLA (Tesla Motors, Inc.) humanoid robots, AI agents, autonomous systems, and real-world AI applications built on top of large language models. In many ways, large language models may finally be the breakthrough that makes robotics commercially viable instead of just science fiction. The first wave of AI wealth came from selling the chips. The second wave may come from powering the cloud infrastructure. The third wave could come from companies that successfully bring AI into the real world. $U $ORCL $MSFT $AMD $NVDA $TSLA

Not investment advice. The author may have financial interests in the mentioned instruments.