Cisco Systems Inc (CSCO) News & EventsCSCONews & EventsCisco Systems Inc

OpenAI Set to Generate Over $40B Annual Revenue

Catch up on the top artificial intelligence news and commentary by Wall Street analysts on publicly traded companies in the space with this daily recap compiled by The Fly.AI AGENTS:AI agents could increasingly automate financial decisions and transactions, potentially disrupting retail banking by weakening banks' customer relationships and increasing deposit liquidity risk, though consumer adoption and trust remain key barriers, American Banker's Joey Pizzolato. Publicly traded companies in the space include Bank of America, Citi, Goldman Sachs, JPMorgan, Morgan Stanley, U.S. Bancorpand Wells Fargo.REVENUE RUN RATE:OpenAI is on pace to generate annualized revenue of over $40B based on its present performance, approximately doubling its run rate from the end of last year and strengthening the ChatGPT maker's plans for an IPO, Bloomberg's Natasha Mascarenhas and Rachel Metz reports, citing people familiar with the matter. The company's revenue has accelerated in recent months, driven partially by the growth of its AI coding software, the authors note.ACQUISITION:Datavault AIsigned a definitive agreement under which Datavault AI will acquire 100% of CyberCatch Holdings in an all-cash transaction structured as a court-approved plan of arrangement under the Business Corporations Act. The acquisition is expected to bring CyberCatch's AI-enabled continuous compliance and cyber risk mitigation platform into Datavault AI's Quantum Private Network GPU ecosystem. Under the definitive agreement, Datavault AI will acquire all of CyberCatch's issued and outstanding common shares, approximately 26.8M shares, for $94,500,000 in cash, representing $3.53 per share to CyberCatch's shareholders. All outstanding dilutive securities of CyberCatch will be exchanged on a cashless-exercise basis. Upon closing, subject to customary board, stock exchange, and any necessary regulatory and shareholder approvals, CyberCatch is expected to operate as a subsidiary of Datavault AI from San Diego, California, with CyberCatch founder, Chairman, and CEO Sai Huda serving as President of the subsidiary and reporting to Nathaniel Bradley, CEO of Datavault AI.AI-RELATED DEMAND:New Street upgraded Micronto Buy from Neutral with a $1,250 price target. Even with the share rally, Micron remains attractively valued based on price-to-cost of goods sold, the firm told investors in a research note. New Street believes Micron's cost of goods sold improvement shows the improving economics of the industry with strengthening profitability and through-cycle cash generation. In 2030, Micron will have over $600B in cash and more than $150B in annual free cash flow, the firm predicted. This corresponds to a $2 trillion to $3 trillion market cap at the end of the decade, versus its current market cap of around $1 trillion, New Street said. It believes memory demand will ramp quickly in the coming years due to AI-related demand.AI NETWORKING DEMAND:Argus kept a Buy rating and $150 price target on Ciscoafter its better-than-expected Q4 results. With its business-to-business business model and little direct-consumer exposure, the company will be able to weather current macroeconomic uncertainty while benefiting from strong AI networking demand, the firm told investors in a research note.

Major Averages Broadly Lower Near Noon

The major averages were broadly lower near noon as investors continue to balance easing inflation pressures and strong corporate earnings against renewed geopolitical risks.The inflation backdrop remains supportive for equities. July CPI and PPI both came in softer than expected, reducing concerns that the Federal Reserve will need to raise interest rates at its September meeting. PPI was unchanged in July after declining 0.1% in June, while the latest CPI data showed inflation continuing to moderate. The market is increasingly focused on whether the combination of cooling inflation and a weakening labor market will give the Fed room to ease policy later this year.Get caught up quickly on the top news and calls moving stocks with these five Top Five lists.1. STOCK NEWS:Applied Materialsreportedand provided upbeat Q4 earnings guidanceU.S. President Donald Trumpand their parts and componentsRedditwasAvalonBayin the S&P 500 at the August 18 openTeslaredesigned Roadster may have flying capabilities,OpenAI is on pace to generate annualized revenue of over $40B based on its present performance,2. WALL STREET CALLS:New StreetMicronto Buy, sees multi-trillion market cap by 2030SanDiskwith a raised Overweight rating at JPMorganCiscoto Hold at HSBCWayfairto Outperform at BernsteinFox Corp.to Overweight at Wells Fargo and JPMorgan3. AROUND THE WEB:Nokiais closing its research and development unit in Hangzhou, China, and cutting 1,600 jobs, Helsingin saysCharter Communicationsreceived final approval from California regulators to buy Cox Communications for $21.9B, WSJ reportsGoldman Sachsis courting investors to participate in Nvidia's$500B AI infrastructure financing initiative, leveraging its longstanding Nvidia relationship to secure a key role in mobilizing capital for the AI buildout, Reuters saysBPand UAE-based XRG have secured an exploration and production license for Venezuela's Loran offshore gas field, which holds an estimated 4 trillion cubic feet of recoverable gas and straddles the Venezuela-Trinidad and Tobago maritime boundary, WSJ reportsApplehas trained a large language model in partnership with Alibabafor China's market, Reuters reports4. MOVERS:Capricor Therapeuticsgains afterand announcing the FDA is "willing" to review the company's BLA amendment for its HOPE-3 studyValnevaincreases in New York after announcing with Pfizerthat the EMA has validated theIntermexhigher after providing an update on itsfor Western Union'spending acquisition of the companyKinderCarefalls afterand cutting its guidance for FY26Merlinand York Space Systemslower in New York after5. EARNINGS/GUIDANCE:Heartflowand raised its outlook for FY26Midera Food, with CEO Mark Salman commenting, "We saw continued momentum in the second quarter, with orders up 16% and the backlog reaching $446 million"Teamsharesand backed its outlook for FY26DLocal, with CEO Pedro Arnt commenting, "TPV growth has remained above 50% year-over-year for seven consecutive quarters, with the last three quarters at or above 70%"FocalThericsand backed its outlook for FY26INDEXES:Near midday, the Dow was down 0.19%, or 103.36, to 53,736.63, the Nasdaq was down 0.48%, or 128.01, to 26,675.02, and the S&P 500 was down 0.21%, or 16.73, to 7,782.26.