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This Artificial Intelligence (AI) Stock Just Dropped, and That’s a Buying Opportunity

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Here’s why the sell-off in The Trade Desk stock is overdone.

Investors tend to want to avoid stocks after they have made a significant drop. Such price action points to problems investors either did not understand previously or ignored for whatever reason. This is likely the case with The Trade Desk (TTD -1.18%) after announcing its earnings for the second quarter of 2025, and the price fell 39% the following trading day.

In The Trade Desk’s case, investors dealt with elevated expectations and valuations. They have also become increasingly aware of the effects of the “walled gardens” that limit engagement with the largest ad platforms such as Alphabet‘s Google and Amazon.

Despite such concerns, The Trade Desk may still be a buy, and here is why investors should still consider owning this stock that is widening its competitive moat through artificial intelligence (AI).

Image source: Getty Images.

The Trade Desk’s Q2 earnings

For the second time this year, the stock fell after releasing an earnings report that arguably brought more positives than negatives.

Its second-quarter revenue was $694 million, a 19% yearly increase and slightly ahead of analyst expectations. The company also beat analyst estimates on earnings, though the $90 million in net income rose by 6% compared to year-ago levels, primarily due to a 56% in its provision for income taxes.

Still, the company’s third-quarter revenue forecast of $717 million fell slightly short of expectations. It also implied a 14% yearly growth rate, increasing concerns over the company’s long-term growth.

The company announced the departure of its chief financial officer. When combined with the increased concerns over the “walled gardens” eating into market share and a pre-announcement price-to-earnings ratio (P/E) of 108, that could have prompted investors to rethink what had become an elevated valuation.

This decline slightly surpasses its one-day drop following fourth-quarter earnings, when investors sold the stock after it missed its own revenue target for the quarter. Although The Trade Desk’s stock rose after first-quarter earnings, this may undermine investor confidence.

Why investors should consider buying The Trade Desk anyway

Nonetheless, the sell-off has made the valuation more attractive. The trailing P/E that was 108 has now fallen to 65. Moreover, the stock sells for 31 times forward earnings.

Even if revenue growth slows to 14%, that could still prompt rapid net income growth at the same time investors become more accustomed to a tax rate more fitting of a consistently profitable company.

Furthermore, AI is on track to supercharge this growth. The company is in the process of switching from Solimar to Kokai. Solimar specializes in optimizing digital ad campaigns, but with the AI-driven Kokai platform, users have a more holistic approach to media buying, applying deep-learning algorithms to every aspect of the process.

Thus, Kokai leverages AI for better forecasting, predictive bidding, and impression scoring. Moreover, it enables users to allocate ad budgets more effectively and curate premium ad inventory.

And The Trade Desk offers a neutral platform targeting digital ad opportunities on every platform. This lack of bias helps advertisers and ad agencies place ads where they can best perform, unencumbered by biases that a Google or Amazon might have toward those platforms.

Furthermore, the numbers are likely lower amid a sluggish economy. Still, that price action is probably cyclical, and the predictions for 17% revenue growth in 2025 and 18% the following year do not point to a significant slowdown. That means growth could easily accelerate, reinforcing the buy case for the stock.

The Trade Desk buying opportunity

Amid the considerable drop in the stock price, investors have a tremendous opportunity to buy it at a significant discount. Indeed, the sell-off is the second huge post-earnings sell-off over three quarters, and such price behavior could diminish confidence in the stock.

However, thanks to the discounted price, the forward P/E of 30 makes the stock particularly attractive. Also, forecasts so far indicate that the slowing to 14% revenue growth may be temporary. Assuming a reacceleration of revenue growth occurs, investors will likely wish they had bought shares at current prices.

Will Healy has positions in The Trade Desk. The Motley Fool has positions in and recommends Alphabet, Amazon, and The Trade Desk. The Motley Fool has a disclosure policy.



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Our new study found AI is wreaking havoc on uni assessments. Here’s how we should respond

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Artificial intelligence (AI) is wrecking havoc on university assessments and exams.

Thanks to generative AI tools, such as ChatGPT, students can now generate essays and assessment answers in seconds. As we have noted in a study earlier this year, this has left universities scrambling to redesign tasks, update policies, and adopt new cheating detection systems.

But the technology keeps changing as they do this, there are constant reports of students cheating their way through their degrees.

The AI and assessment problem has put enormous pressure on institutions and teachers. Today’s students need assessment tasks to complete, as well as confidence the work they are doing matters. The community and employers need assurance university degrees are worth something.

In our latest research, we argue the problem of AI and assessment is far more difficult even than media debates have been making out.

It’s not something that can just be fixed once we find the “correct solution”. Instead, the sector needs to recognise AI in assessment is an intractable “wicked” problem, and respond accordingly.

What is a wicked problem?

The term “wicked problem,” was made famous by theorists Horst Rittel and Melvin Webber in the 1970s. It describes problems that defy neat solutions.

Well-known examples include climate change, urban planning and healthcare reform.

Unlike “tame” problems, which can be solved with enough time and resources, wicked problems have no single correct answer. In fact there is no “true” or “false” answer, only better or worse ones.

Wicked problems are messy, interconnected and resistant to closure. There is no way to test the solution to a wicked problem. Attempts to “fix” the issue inevitably generate new tensions, trade-offs and unintended consequences.

However, admitting there are no “correct” solutions does not mean there are not better and worse ones. Rather, it allows us the space to appreciate the nature and necessity of the trade offs involved.

Our research

In our latest research, we interviewed 20 university teachers leading assessment design work at Australian universities.

We recruited participants by asking for referrals across four faculties at a large Australian university.

We wanted to speak to teachers who had made changes to their assessments because of generative AI. Our aim was to better understand what assessment choices were being made, and what challenges teachers were facing.

When we were setting up our research we didn’t necessarily think of AI and assessment as a “wicked problem”. But this is what emerged from the interviews.

Our results

Interviewees described dealing with AI as an impossible situation, characterised by trade-offs. As one teacher explained:

We can make assessments more AI-proof, but if we make them too rigid, we just test compliance rather than creativity.

In other words, the solution to the problem was not “true or false”, only better or worse.

Or as another teacher asked:

Have I struck the right balance? I don’t know.

There were other examples of imperfect trade-offs. Should assessments allow students to use AI (like they will in the real world)? Or totally exclude it to ensure they demonstrate independent capability?

Should teachers set more oral exams – which appear more AI resistant than other assessments – even if this increases workload and disadvantages certain groups?

As one teacher explained,

250 students by […] 10 min […] it’s like 2,500 min, and then that’s how many days of work is it just to administer one assessment?

Teachers could also set in-person hand-written exams, but this does not necessarily test other skills students need for the real world. Nor can this be done for every single assessment in a course.

The problem keeps shifting

Meanwhile, teachers are expected to redesign assessments immediately, while the technology itself keeps changing. GenAI tools such as ChatGPT are constantly releasing new models, as well as new functionalities, while new AI learning tools (such as AI text summarisers for unit readings) are increasingly ubiquitous.

At the same time, educators need to keep up with all their usual teaching responsibilities (where we know they are already stressed and stretched).

This is a sign of a messy problem, which has no closure or end point. Or as one interviewee explained:

We just do not have the resources to be able to detect everything and then to write up any breaches.

What do we need to do instead?

The first step is to stop pretending AI in assessment is a simple, “solvable” problem.

This not only fails to understand what’s going on, it can also lead to paralysis, stress, burnout and trauma among educators, and policy churn as institutions keep trying one “solution” after the next.

Instead, AI and assessment must be treated as something to be continually negotiated rather than definitively resolved.

This recognition can lift a burden from teachers. Instead of chasing the illusion of a perfect fix, institutions and educators can focus on building processes that are flexible and transparent about the trade-offs involved.

Our study suggests universities give teaching staff certain “permissions” to better address AI.

This includes the ability to compromise to find the best approach for their particular assessment, unit and group of students. All potential solutions will have trade offs – oral examinations might be better at assuring learning but may also bias against certain groups, for example, those whose second language is English.

Perhaps it also means teachers don’t have time for other course components and this might be OK.

But, like so many of the trade offs involved in this problem, the weight of responsibility for making the call will rest on the shoulders of teachers. They need our support to make sure the weight doesn’t crush them.



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Stony Brook University Receives $13.77M NSF Grant to Deploy a National Supercomputer to Democratize Access to Artificial Intelligence and Research Computing

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Grant Includes Collaboration with the University at Buffalo

Professor Robert Harrison

STONY BROOK, NY – September 16, 2025 – The U.S. National Science Foundation (NSF) has awarded a $13.77 million grant to Stony Brook University’s Institute for Advanced Computational Science (IACS), in collaboration with the University at Buffalo. The award titled, Sustainable Cyber-infrastructure for Expanding Participation, will deliver cutting-edge computing and data resources to power advanced research nationwide.

This funding will be used to procure and operate a high-performance, highly energy-efficient computer designed to handle the growing needs of artificial intelligence research and other scientific fields that require large amounts of memory and computing power. By making this resource widely available to researchers, students, and educators across the country, the project will expand access to advanced tools, support groundbreaking discoveries, and train the next generation of scientists.

The new system will utilize low-cost and low-energy AmpereOne® M Advanced Reduced Instruction Set Computer (RISC) Machine processors that are designed to excel in artificial intelligence (AI) inference and imperfectly optimized workloads that presently characterize much of academic research computing. Multiple Qualcomm® Cloud AI inference accelerators will also increase energy efficiency, enabling the use of the largest AI models. The AmpereOne® M processors, in combination with the efficient generative AI inference performance and large memory capacity of the Qualcomm Cloud AI inference accelerators, will directly advance the mission of the NSF-led National Artificial Intelligence Research Resource (NAIRR).

This is the first deployment in academia of both of these technologies that have transformed computing in the commercial cloud. The new IACS-led supercomputer will efficiently execute diverse workloads in an energy- and cost-efficient manner, providing easily accessible, competitive and consistent performance without requiring sophisticated programming skills or knowledge of advanced hardware features.

“This project employs a comprehensive, multilayered strategy, with regional and national elements to ensure the widest possible benefits,” said IACS director Robert J. Harrison. “The team will collaborate with multiple initiatives and projects, to reach a broad audience that spans all experience levels from high school students beginning to explore science and technology to faculty members advancing innovation through scholarship and teaching.”

“The University at Buffalo is excited to partner with Stony Brook on this new project that will advance research, innovation and education by expanding the nation’s cyber-infrastructure to scientific disciplines that were not high performance computing-heavy prior to the AI boom, as well as expanding to non-R1 universities, which also didn’t have much of high-performance computing usage in the past,” says co-principal investigator Nikolay Simakov, a computational scientist at the University at Buffalo Center for Computational Research.

“AmpereOne® M delivers the performance, memory and energy footprint required for modern research workloads—helping democratize access to AI and data-driven science by lowering the barriers to large-scale compute,” said Jeff Wittich, Chief Product Officer at Ampere. “We look forward to working

with Stony Brook University to integrate this platform into research and education programs, accelerating discoveries in genomics, bioinformatics and AI.”

“Qualcomm Technologies is proud to contribute our expertise in high-performance, energy-efficient AI inference and scalable Qualcomm Cloud AI Inference solutions to this groundbreaking initiative,” said Dr. Richard Lethin, VP, Engineering, Qualcomm Technologies, Inc. “Our technologies enable seamless integration into a wide range of applications, enabling researchers and students to easily leverage advanced AI capabilities.”

Nationally and regionally, this funding will support a variety of projects, with an emphasis on fields of research that are not targeted by other national resources (e.g., life sciences and computational linguistics). In particular, the AmpereOne® M system will excel on high-throughput workloads common to genomics and bioinformatics research, AI/ML inference, and statistical analysis, among others. To help domain scientists achieve excellent performance on the system, software applications in these and related fields will be optimized for Ampere hardware and made readily available. This award reflects NSF’s statutory mission and that this initiative has been deemed worthy of support through evaluation using the foundation’s intellectual merit and broader-impacts review criteria.

The awarded funds are primarily for purchase of the supercomputer and first year activities, with additional funds to be provided for operations over five years, subject to external review.

# # #

About the U.S. National Science Foundation (NSF)

The U.S. National Science Foundation (NSF) is an independent federal agency that supports science and engineering in all 50 states and U.S. territories. NSF was established in 1950 by Congress to:

  • Promote the progress of science.
  • Advance the national health, prosperity and welfare.
  • Secure the national defense.

NSF fulfills its mission chiefly by making grants. NSF’s investments account for about 25% of federal support to America’s colleges and universities for basic research: research driven by curiosity and discovery. They also support solutions-oriented research with the potential to produce advancements for the American people.

About Stony Brook University

Stony Brook University is New York’s flagship university and No. 1 public university. It is part of the State University of New York (SUNY) system. With more than 26,000 students, more than 3,000 faculty members, more than 225,000 alumni, a premier academic healthcare system and 18 NCAA Division I athletic programs, Stony Brook is a research-intensive distinguished center of innovation dedicated to addressing the world’s biggest challenges. The university embraces its mission to provide comprehensive undergraduate, graduate and professional education of the highest quality, and is ranked as the #58 overall university and #26 among public universities in the nation by U.S. News & World Report’s Best Colleges listing. Fostering a commitment to academic research and intellectual endeavors, Stony Brook’s membership in the Association of American Universities (AAU) places it among the top 71 research institutions in North America. The university’s distinguished faculty have earned esteemed awards such as the Nobel Prize, Pulitzer Prize, Indianapolis Prize for animal conservation, Abel Prize, Fields Medal and Breakthrough Prizes in Mathematics and Physics. Stony Brook has the responsibility of co-managing Brookhaven National Laboratory for the U.S. Department of Energy — one of only eight universities with a role in running a national laboratory. In 2023, Stony Brook was named the anchor institution for The New York Climate Exchange on Governors Island in New York City. Providing economic growth for neighboring communities and the wider geographic region, the university totals an impressive $8.93 billion in increased economic output on Long Island. Follow us on Facebook https://www.facebook.com/stonybrooku/ and X @stonybrooku.



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Ongoing research to use AI to help Northwestern Ontario farmers

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Funding for a three-year research project slated to help develop a continuously updated database of available farmland.

RAINY RIVER — An ongoing research and innovation project that’s received provincial funding aims to use artificial intelligence to help create a database of available farmland.

The initiative is the brainchild of the Northern Ontario Farm Innovation Alliance, a not-for-profit that focuses on the agriculture sector.

“Our overall goal is to be able to create an online mapping tool that links both Crown land and private land that is available as a starting place for farmers who are looking for land,” Emily Seed, the alliance’s executive director, said in an interview with Newswatch.

“So, they know where to go looking and then they can then take the next steps in following up — whether that be an application to access that land or whether it be working with a realtor, or whatever that might look like.”

Access to usable farmland has been a longstanding issue when attempting to expand and better agriculture across northern Ontario, Seed said.

The AI component will be implemented both in the database’s front and back ends, she said. Users will be able to use a feature like a chatbot to help with searches and, behind the scenes, it will scrape data from sources like open-source databases and public information released by realtors to constantly update the tool.

That will “keep that information up-to-date and relevant in real time, so that it’s not just a standalone static tool,” Seed said.

In Northwestern Ontario, most agricultural land is southwest of Thunder Bay and in the Rainy River District.

“There’s a lot of barriers around things like Crown land access and then being able to find private land can also be a challenge,” she said. “This project is looking at how can we create some linkages in there to create long-term sustainability and make sure that people are able to find land available for agricultural use.”

“Trying to fill in some of those gaps when we’re talking about agricultural expansion and land use for agriculture in northern Ontario.”

The roughly $50,000 funding commitment from the provincial Ontario Agri-food Research Initiative will help support the project until 2027.

Seed said a publicly-available resource will likely be online more towards the end of the scheduled timeline.

“As we go through this project, we very much anticipate it to morph as we go and see what’s actually applicable,” she said. “AI is fairly new to us on that end, so we’re working with a few different developers and experts in the area to help us sort of navigate that side of things.”

“We will be working hard on it on the back end to morph it into something that’s a usable tool.”





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