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(Reuters) -Wireless tower operator Crown Castle on Wednesday raised its annual site rental revenue forecast for the second time, helped by steady demand for wireless infrastructure services. Crown Castle derives majority of its revenue from leasing out tower infrastructure to U.S. wireless carriers such as AT&T, T-Mobile US, and Verizon Communications on a long-term basis. With about 40,000 cellular towers across the U.S., Crown Castle is looking to focus on growing its tower business, which is expected to benefit from the largest U.S. carriers upgrading their networks to 5G and increasing capacity to meet booming data demand. The real estate investment trust now sees annual site rental revenue in the range of $4.01 billion to $4.05 billion, compared with its earlier projection of between $4 billion and $4.04 billion. Analysts expect earnings growth of real estate investment trusts to improve going into 2026, as pressures from supply, tenant churn, and high development capex ease. Crown Castle posted site rental revenue of $1.01 billion for the third quarter ended September 30, compared with an average estimate of $1 billion. Its adjusted funds from operations came in at $1.12 per share, compared with $1.20 a year earlier. (Reporting by Juby Babu in Mexico City; Editing by Maju Samuel)

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By Akash Sriram and Abhirup Roy (Reuters) -Tesla reported record third-quarter revenue that beat Wall Street estimates on Wednesday, driven by the highest quarterly sales of its electric vehicles as U.S. buyers rushed to lock in a key tax credit ahead of its expiry last month. But Tesla's profit failed to live up to analysts' expectations, in part due to tariff and research costs, as well as a drop in income from regulatory credits that are expected to continue to fade away with recent legislation passed by the Trump administration. Shares of the Austin, Texas-based company were down about 2% in extended trading. Demand for Tesla's vehicles and those of its rivals is also expected to drop through the rest of the year without the tax credits that have been a key driver of EV sales. Tesla did not provide a full-year forecast. Tesla's $1.45 trillion valuation largely reflects investor bets on CEO Elon Musk's pivot to robotics and AI, but vehicle sales remain key to the financial stability of the company while those products are being developed. "While we face near-term uncertainty from shifting trade, tariff and fiscal policy, we are focused on long-term growth and value creation," the company said on Wednesday. Apart from the removal of tax credits and the waning sales of regulatory credits that traditional automakers bought to make up for their polluting vehicles, Tesla is also grappling with tariffs imposed by the Trump administration on auto-part imports. To combat a demand drop, Tesla introduced lower-cost "Standard" variants of Model Y and Model 3 vehicles earlier this month, stripping out a myriad of premium and basic features and lowering prices by about $5,000 to $5,500. While Tesla hopes the cheaper variants will drive higher volumes, analysts warn the move will squeeze margins as thousands of dollars of cost cuts per vehicle may not fully compensate for lower selling prices. Tesla said it was on track to start volume production of its Cybercab robotaxi, Semi truck and Megapack 3 battery in 2026. The electric vehicle maker reported total revenue of $28.1 billion for the third quarter ended September 30, compared with analysts' average estimate of $26.37 billion, according to data compiled by LSEG. Profit per share in the third quarter was 50 cents, below analysts' estimates of 55 cents. Automotive regulatory credits, once a key driver of profit, fell to $417 million in the quarter from $739 million a year ago and $435 million in the second quarter. Tesla reported gross margin of 18%, compared with estimates of 17.5%. Its closely watched automotive gross margin, excluding regulatory credits, was 15.4%, compared with an average estimate of 15.6%, according to 19 analysts polled by Visible Alpha. Tesla flagged rising expenses in multiple areas, including a 50% rise in operating expenses driven by AI and other research and development projects, an increase in stock-based compensation, and higher costs per vehicle due to an increase in tariffs and other issues. Tesla's limited rollout of its self-driving "robotaxi" service in Austin, Texas, earlier this year marked a key strategic pivot, underpinning investor expectations that the company will transition from pure vehicle sales to focusing on self-driving technology. Wall Street expects Tesla's deliveries in 2025 to fall 8.5% due to the expiry of the tax credit, reliance on older models and rising competition. CEO Musk's embrace of right-wing politics has also alienated some potential buyers. Some analysts remain skeptical of a strong rebound as the cheaper version could take away sales of more profitable premium vehicles. (Reporting by Akash Sriram in Bengaluru and Abhirup Roy in San Francisco; Editing by Anil D'Silva, Peter Henderson and Matthew Lewis)

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(Reuters) -Lam Research forecast second-quarter revenue above Wall Street estimates on Wednesday, as chipmakers ordered more of its equipment used to manufacture semiconductors for artificial intelligence applications. Shares of the Fremont, California-based company rose 2.2% in trading after the bell. The stock has doubled so far this year, supported by strong demand for AI semiconductors as chip designers seek equipment to create processors capable of meeting growing computing needs. A boom in demand for AI-powered chips has bolstered demand for companies that provide wafer fabrication equipment (WFE), which are sophisticated and expensive tools to make chips, helping firms including Lam. Lam develops tools essential for semiconductor manufacturing. Its products are primarily used in a wide range of wafer processing and wiring of semiconductor devices. The company faces stiff competition from Analog Devices, Applied Materials and the Netherlands' ASML, among others. The company expects revenue of $5.20 billion, plus or minus $300 million, for the ongoing quarter ending December 28, compared with analysts' estimate of $4.81 billion, according to data compiled by LSEG. It expects adjusted net income per share of $1.15, plus or minus 10 cents, compared to an estimate of $1.04. Lam posted revenue of $5.32 billion for the three months ended September 28, compared with market estimates of $5.23 billion. Excluding items, the company reported a profit of $1.26 per share, compared with estimates of $1.22. (Reporting by Juby Babu in Mexico City; Editing by Shreya Biswas and Maju Samuel)

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(Reuters) -IBM recorded a slowdown in growth in its key cloud software segment, overshadowing booming AI-driven demand for the company's new mainframe that drove third-quarter sales and profit above Wall Street estimates on Wednesday. Slower growth in IBM's hybrid cloud segment, housed within its software unit, raised alarm bells across investors betting heavily on Big Blue's ability to benefit from booming demand for cloud services, as artificial intelligence adoption rises. The company's shares, which have risen about 30% so far this year, fell nearly 4% in extended trading. IBM recorded third-quarter revenue of $16.33 billion, beating analysts' average estimate of $16.09 billion, according to data compiled by LSEG. The company's adjusted profit of $2.65 per share for the September quarter also came in above estimates of $2.45. However, sales in the hybrid cloud unit, also known as Red Hat, grew about 14%, decelerating from 16% growth in the previous quarter. The software segment grew 10% to $7.21 billion, coming in just slightly above estimates. "Although IBM beat expectations handsomely on earnings and revenue … a slowdown in Red Hat revenue and software sales from 16% to 14% will disappoint some that were hoping for accelerating growth in what is a high-margin segment," said Michael Ashley Schulman, chief investment officer at Running Point Capital. Still, the infrastructure segment, housing its mainframe, saw revenue rise 17% to $3.56 billion in the quarter. The new mainframe, which is powered by chips specialized for AI applications, is being widely used by the financial industry, allowing for the maintenance of strict data residency and encryption rules as they work on adopting AI tech, CFO Jim Kavanaugh told Reuters. "Addressing client pain points, around AI, around sovereignty … that is driving the client buying behavior overall." IBM's AI book of business grew to $9.5 billion, up $2 billion from the second quarter. IBM also raised its outlook for the current fiscal year, expecting revenue to grow more than 5% at constant currency, up from its prior forecast of at least 5% growth. (Reporting by Arsheeya Bajwa; Editing by Maju Samuel)

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(Reuters) -OpenAI, along with Oracle and Vantage Data Centers, will develop a data center campus in Wisconsin, as part of the Stargate project, to keep the U.S. ahead in the global artificial intelligence race, the companies said on Wednesday. The new Port Washington campus is part of OpenAI and Oracle's partnership announced in July to develop another 4.5 gigawatts of data center capacity. The Stargate initiative, a project of up to $500 billion and 10 gigawatts, also includes Japanese technology investor SoftBank Group and is setting up its first AI data center in Abilene, Texas. OpenAI, as well as its backer Microsoft, are among the technology companies pouring billions of dollars on data centers to power generative AI services such as ChatGPT and Copilot, which require huge amounts of computing power. The growing use of AI in sensitive sectors such as defense, as well as China's push to catch up, has made the nascent technology a top priority for U.S. President Donald Trump, who unveiled Stargate at the White House in January. The construction of the Wisconsin campus, named Lighthouse, is scheduled to be completed in 2028. It is expected to create more than 4,000 skilled construction jobs, most of which will be union jobs. The campus, combined with other Stargate campuses in collaboration with Oracle, would deliver over 4.5 gigawatts of IT capacity. Vantage, backed by private equity firm Silver Lake and asset manager DigitalBridge, will invest over $15 billion in Port Washington. Once complete, Vantage and Oracle are expected to create more than 1,000 long-term jobs and thousands more indirect jobs. OpenAI, Oracle and SoftBank last month announced plans for five new AI data centers in the United States to build out the Stargate project. (Reporting by Juby Babu in Mexico City; Editing by Alan Barona)

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(Reuters) -Tesla reported record third-quarter revenue, beating Wall Street estimates on Wednesday, driven by the highest quarterly sales of its electric vehicles as car buyers rushed to lock in a key U.S. tax credit ahead of its expiry last month. The $7,500 tax credit had been a driver of EV sales, and the industry is bracing for a drop in demand through the rest of the year. Tesla did not provide a full-year forecast. "While we face near-term uncertainty from shifting trade, tariff and fiscal policy, we are focused on long-term growth and value creation," the company said in a shareholder update on Wednesday. Shares of the Austin, Texas-based company were down about  2% in extended trading.  The electric vehicle maker reported total revenue of $28.1 billion for the third quarter ended September 30, compared with analysts' average estimate of $26.37 billion, according to data compiled by LSEG. Profit per share in the third quarter was 50 cents, below analysts' estimates of 55 cents. Tesla reported gross margin of 18%, compared with estimates of 17.5%. Its closely watched automotive gross margin, excluding regulatory credits, was 15.4%, compared with an average estimate of 15.6%, according to 19 analysts polled by Visible Alpha. Tesla's limited rollout of its self-driving "robotaxi" service in Austin, Texas, earlier this year marked a key strategic pivot, underpinning investor expectations that the company will transition from pure vehicle sales to focusing on self-driving technology. While most of Tesla's current revenue is still derived from vehicle sales, its $1.45 trillion valuation largely reflects investor bets on robotics and AI. Tesla introduced lower-cost "Standard" variants of Model Y and Model 3 vehicles earlier this month as part of a volume-growth push, cutting features and prices to make the vehicles more accessible after the expiration of the U.S. tax credit on EV purchases. A rush in the U.S. to grab the federal incentive before it went away at the end of September resulted in the company delivering a record number of vehicles in the third quarter. While Tesla hopes the cheaper variants will drive higher volumes, analysts warn the move will squeeze margins as thousands of dollars of cost cuts per vehicle may not fully compensate for lower selling prices. Wall Street expects Tesla's deliveries in 2025 to fall 8.5% due to the expiry of the tax credit, reliance on older models and rising competition. Tesla CEO Elon Musk's embrace of right-wing politics has also alienated some potential buyers. Tesla is banking on the rollout of its lower-cost standard variants to revive volume growth, though some analysts remain skeptical of a strong rebound as the cheaper version could take away sales of more profitable premium vehicles. For years, Tesla has benefited from selling regulatory credits to other automakers as they worked to comply with emissions or zero-emission vehicle mandates, representing a meaningful supplemental revenue stream. That tailwind is rapidly fading. U.S. policy changes are expected to reduce this income stream significantly, and analysts now estimate revenue for the highly profitable regulatory credits could fall dramatically in the coming quarters. (Reporting by Akash Sriram in Bengaluru and Abhirup Roy in San Francisco; Editing by Anil D'Silva, Peter Henderson and Matthew Lewis)

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