Silver Lake's pursuit of Workday signals private equity sees deep value in enterprise software

Workday shares exploded higher after reports surfaced that Silver Lake is in early talks to take the human-resources software company private in a deal that would rank among the largest software buyouts ever attempted.

The frenzy matters because a deal of this scale would validate the idea that profitable, subscription-based software businesses are worth more off the public markets than on them, where growth-rate anxiety tends to punish any sign of slowing.

Cisco's record AI quarter punished by Wall Street tells you good results are no longer enough

Cisco beat earnings estimates and posted an 18% revenue jump, with CEO Chuck Robbins saying customers are so afraid of falling behind that they won't pause orders, yet the stock still dropped sharply as investors fixated on shrinking profit margins.

The selloff is a warning sign for the entire AI infrastructure trade: the market is now demanding that revenue growth and healthy margins arrive together, and companies that can only deliver one of the two will be penalized regardless of how strong the headline numbers look.

AMD's record quarter followed by a stock drop shows the AI trade has entered a prove-it phase

Advanced Micro Devices reported its highest-ever quarterly revenue, with data center chips now accounting for more than half of all sales and major AI customers like OpenAI and Microsoft locked into large commitments, yet shares fell sharply after the report.

Taken alongside Cisco's similar fate, the pattern suggests the market has already priced in AI optimism and is now demanding evidence that today's demand translates into tomorrow's profits, not just tomorrow's guidance.