Oracle’s Credit Stress Is Becoming an AI Financing Test

Nokia’s third-quarter results gave investors concrete evidence that artificial intelligence demand is moving beyond chipmakers and into networking equipment. Net sales rose 10% from a year earlier to €5.15 billion, while comparable operating profit increased 35% to €605 million.

The strongest growth came from Network Infrastructure. Revenue in that division rose 15% on a constant-currency basis to €2.15 billion, with IP Networks up 43% and Optical Networks up 18%. These products carry data between servers and data centers, making them essential when AI workloads require larger and faster networks.

Nokia said revenue from AI and cloud customers increased 123%, while orders from those customers rose 118%. The company secured €1.5 billion of new AI and cloud orders during the quarter. That order figure is particularly useful because it shows demand beyond revenue already recognized.

The €1.5 billion of AI and cloud orders gives Nokia a measurable pipeline rather than only a long-term technology narrative.

Profitability improved, but not every indicator moved in the same direction. Comparable gross margin slipped 0.2 percentage points to 44.6%, while operating margin rose to 11.7%. The divergence suggests that volume growth and operating leverage helped offset some pressure at the gross-profit level.

Management maintained its 2026 comparable operating-profit outlook of €2.1 billion to €2.6 billion. It also expects the combined Optical and IP Networks businesses to grow between 25% and 30% in 2027. That target now has support from current orders, though investors still need to see how much of the backlog converts into revenue and cash.

Nokia is also expanding its work with Nvidia on AI-native radio access networks. The companies are combining Nokia software with Nvidia’s Aerial platform to improve signal processing, beamforming and network-resource allocation. Nokia said it completed an AI-RAN call in a live operator network with T-Mobile and Nvidia.

The investment case is becoming more specific: AI spending can benefit Nokia through data-center networking and telecom automation. The next evidence should come from backlog conversion, sustained margins and cash generation. If those measures improve together, the quarter could mark more than a temporary demand spike.

Apple is expanding its United States supplier network for materials used in the iPhone Duo and iPhone 18 Pro. The company added Perryman Company as a titanium supplier and expanded its relationship with Qnity Electronics, which produces advanced films for the iPhone 18 Pro camera system.

Apple committed up to $100 million over three years to Perryman, a Pennsylvania manufacturer that melts, forges and rolls titanium. Apple said the material contains at least 80% recycled content and will be used in iPhone Duo casings. The commitment provides a defined commercial opportunity for a domestic supplier, although Apple did not disclose unit volumes or pricing.

Qnity, based in Delaware, will supply advanced films for the variable-aperture system in the iPhone 18 Pro’s 48-megapixel main camera. A variable aperture changes how much light reaches the sensor, giving the camera more control across different conditions. The expanded agreement links a specialized US material supplier to a visible product feature rather than a generic localization pledge.

The new contracts add domestic capacity for specific components, but Apple still relies on a global network spanning more than 60 countries.

The agreements are part of Apple’s American Manufacturing Program and its four-year, $600 billion commitment to US manufacturing. Apple says it works with suppliers in all 50 states and supports more than 450,000 jobs. US companies now make nearly 100 components for the iPhone Duo and iPhone 18 Pro across more than a dozen states.

Apple has also expanded domestic sourcing for radio-frequency components, cover glass and semiconductor packaging. Broadcom announced a $1.5 billion modernization of its Fort Collins facility within a larger multiyear Apple agreement, while Corning is expected to produce all cover glass for iPhones and Apple Watches at its Kentucky site by year-end.

For investors, the strategy can reduce exposure to trade restrictions and improve political support in the United States. It may also raise costs if local manufacturing is more expensive than established Asian supply chains. Apple has not provided enough detail to calculate the margin effect of the Perryman and Qnity agreements.

The most useful evidence will be product volumes, supplier investment and any change in component costs. The announcement shows a real shift in sourcing, but not a wholesale relocation of iPhone production.

Alphabet and Apple are taking different paths through the artificial intelligence investment cycle. Alphabet is spending aggressively on data centers and models, while Apple has committed far less capital and continued returning large amounts of cash to shareholders. The contrast gives investors a clear trade between faster growth and greater financial risk.

Alphabet reported second-quarter 2026 revenue of about $119.8 billion, up 24%, while Google Cloud grew 82%. Its spending was equally dramatic. Capital expenditure reached roughly $44.9 billion in the quarter, and management’s full-year outlook rose as high as $185 billion. The company’s quarterly free cash flow turned negative in the original analysis, while long-term debt increased.

Apple’s June-quarter revenue rose 16% and management guided to 9% to 11% growth for the following quarter. Apple spent about $2.5 billion on property and equipment during the period and returned $33 billion to shareholders through dividends and buybacks. It also raised the quarterly dividend to $0.27 and authorized another $100 billion of repurchases.

Alphabet offers stronger operating growth and a cheaper forward earnings multiple, but Apple currently converts more of its scale into shareholder distributions.

The valuation gap reflects that trade. The original analysis placed Alphabet near 23 times forward earnings and Apple around 35 times. Alphabet’s trailing earnings were boosted by a large securities gain, so the forward comparison is more useful than the lower trailing multiple. Apple’s premium assumes that its brand, installed base and cash generation can offset slower AI investment.

Neither approach is free of risk. Alphabet must prove that cloud growth, advertising and AI products can earn adequate returns on unprecedented capital spending. If demand or pricing disappoints, depreciation and financing costs will remain. Apple risks falling behind in AI capabilities while paying investors less current growth for a higher valuation.

The investment choice therefore depends on time horizon and tolerance for volatility. Alphabet may offer more upside if the infrastructure produces durable revenue and margin expansion. Apple may suit investors who value buybacks, dividends and a less capital-intensive path, but its valuation provides little protection if growth slows.

Investors should watch free cash flow, capital intensity and revenue generated by new AI products. Those measures will reveal whether Alphabet’s spending advantage becomes an earnings advantage, or whether Apple’s restraint proves more valuable.

Doximity and OpenEvidence have ended a contentious legal dispute over clinical artificial intelligence, with a federal judge dismissing the case with prejudice. That means the claims cannot be filed again in the same court. Each company agreed to pay its own legal costs, while other settlement terms were not disclosed.

OpenEvidence originally accused Doximity employees of posing as physicians and using provider identification numbers to gain access to its platform. The complaint alleged that users submitted prompts designed to reveal system instructions and proprietary information. Doximity denied wrongdoing and countersued for defamation and harassment, arguing that OpenEvidence had made misleading public comparisons and pressured employees.

The allegations changed during the litigation. OpenEvidence later dropped its trade-secret claims and focused on alleged violations of federal anti-hacking law and misuse of the platform. The settlement arrived as OpenEvidence faced a deadline related to internal Slack messages that Doximity said had been deleted. Neither company provided a detailed public explanation of the agreement.

The dismissal removes a legal distraction, but it does not establish that either side’s allegations were proven.

Both companies remain direct competitors. Doximity offers an AI-backed clinical assistant alongside its professional network for physicians, while OpenEvidence provides an AI medical search and reasoning platform for verified doctors. Doximity says its clinical AI products are used by more than 165 health systems. It also signed a partnership with Wolters Kluwer to bring UpToDate information into Doximity Ask.

For Doximity shareholders, the settlement reduces uncertainty around legal expense and management attention, but the financial effect cannot be measured because payment and conduct terms were not disclosed. The more important long-term question is whether Doximity can convert physician usage into durable revenue while maintaining accuracy, security and trust.

Doximity reported fiscal 2026 revenue of $644.9 million, up 13%, and free cash flow of $317.5 million, up 19%. Those figures provide a profitable base for investment in clinical AI. The settlement clears one obstacle, but competitive performance will be determined by adoption, product quality and customer retention rather than the court outcome alone.

Alaska Airlines has appointed Amaresh Siva as chief information and technology officer, bringing in an executive with experience across health care, retail and industrial companies. The role covers enterprise technology, data, digital products, cybersecurity and artificial intelligence, according to the airline.

Siva joins Alaska after serving in senior technology roles at CVS Health. Alaska said his career spans nearly three decades and also includes Target and GE. The breadth is relevant because airline technology touches reservation systems, operations, maintenance, payments, customer service and employee tools. Failures can interrupt travel, while well-designed systems can reduce costs and improve reliability.

The timing adds significance. Alaska Air Group is integrating Hawaiian Airlines, a process that requires systems, data and operating procedures to work together without disrupting customers. Technology leadership will influence how quickly the group combines platforms, protects sensitive information and delivers a consistent digital experience across brands.

Siva’s appointment is strategically relevant because Alaska’s integration challenge is as much about systems and data as it is about aircraft and routes.

The position does not create an immediate financial forecast. No compensation terms, cost-savings target or technology budget was disclosed in the reviewed materials. A senior hire can improve execution, but the effect must be measured through operational results rather than a résumé alone.

Investors should look for evidence in several areas: fewer technology-related disruptions, better on-time recovery tools, progress toward common customer platforms, stronger cyber controls and clear savings from replacing duplicate systems. AI initiatives should also be judged by observable outcomes such as faster service, better scheduling or lower support costs, not by the number of projects announced.

Alaska included the appointment in its third-quarter corporate update, confirming that Siva joined the executive committee. That gives the technology function direct representation in strategic decisions, which is important during a multi-year integration.

The hire is a sensible step for an airline with a complex transformation ahead. It is not, by itself, a reason to change earnings estimates. The investment value will emerge if Alaska converts Siva’s cross-industry experience into reliable systems, measurable integration progress and a better customer journey while keeping cybersecurity and operational resilience intact.