Alibaba's cloud division is flourishing with a new AI chip in development, leading to a surge in stock prices.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 29 2025
0mins
Should l Buy NVDA?
Source: MarketWatch
Alibaba's Quarterly Earnings Report
- Revenue Performance: Alibaba Group reported $34.6 billion in sales for the first quarter of fiscal 2026, falling short of the $35.2 billion consensus estimate, marking a 2% increase year-over-year.
- Net Income Surge: The company achieved a net income of $5.9 billion, significantly exceeding expectations and reflecting a remarkable 76% year-over-year growth, surpassing the consensus estimate of $3.7 billion.
- Earnings Per Share: Adjusted earnings per share were reported at $2.06, which was above the consensus of $1.97, although this represents a 10% decline compared to the previous year.
AI Developments
- Focus on Artificial Intelligence: The earnings report highlighted that Alibaba's advancements in artificial intelligence are gaining momentum, indicating a strategic focus on this technology as a growth driver for the company.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 264.97 USD with a low forecast of 200.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 171.880
Low
200.00
Averages
264.97
High
352.00
Current: 171.880
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Nvidia vs. Oracle: Compelling Investment Stories
- Nvidia's Market Performance: Nvidia's stock has surged over 700% in the past three years, pushing its market capitalization beyond $4 trillion, making it the largest company globally, which highlights its dominant position in high-performance AI applications and attracts significant investor interest.
- Oracle's Market Challenges: Oracle, with a market cap of $440 billion, has seen its stock drop over 52% since last September, primarily due to high spending on AI infrastructure and a debt exceeding $100 billion, raising concerns about its financial health among investors.
- Financial Performance Highlights: Oracle's recent Q2 FY2026 earnings report revealed a 14% year-over-year revenue increase to $16.05 billion, with net income soaring 95% to $6.13 billion, including a $2.7 billion pre-tax gain, showcasing its strong growth potential in the cloud computing sector.
- Future Growth Expectations: Despite facing debt pressures, Oracle's forward price-to-earnings ratio stands at just 19.8, indicating that its stock is at a two-year low, and analysts expect significant revenue growth in the future, potentially providing a good buying opportunity for investors.
See More
Montage Technology Shares Surge 60% on Hong Kong Debut, Raising $902 Million
- Strong Debut Performance: Montage Technology's shares surged approximately 60% on their Hong Kong debut, climbing from the offering price of HK$106.89 to HK$171, indicating robust market demand for its high-performance semiconductors and reinforcing its position in the cloud computing and AI sectors.
- Significant Fundraising: The IPO raised $902 million, reflecting strong investor interest in Chinese AI and semiconductor firms, particularly as the public tranche was oversubscribed by more than 700 times and the international offering was nearly 38 times covered.
- Intensifying Market Competition: Despite Montage's successful listing, competition is heating up, with Huawei and its chip unit HiSilicon holding a leading share of the domestic market, suggesting that the push for self-sufficiency will lead to fiercer rivalry within the industry.
- Evolving Policy Landscape: As the Chinese government intensifies efforts for self-sufficiency in advanced chips, the recent approval for Nvidia's H200 imports under specific conditions highlights the uncertainty in policy that could impact market dynamics.
See More
Big Tech Stocks Experience Market Volatility
- Market Volatility Impact: Following a week where over $1 trillion was wiped from market caps, Big Tech stocks showed flat performance in premarket trading on Monday, indicating market uncertainty, particularly with rising capital expenditure plans in the AI sector.
- Surge in Capital Expenditure: Amazon, Alphabet, Microsoft, and Meta reported a combined capital expenditure of approximately $120 billion in Q4, with projections soaring to $660 billion by 2026, surpassing the GDP of countries like the UAE, Singapore, and Israel, reflecting strong industry confidence in AI investments.
- Divergent Stock Performance: As of 6:12 a.m. ET, Oracle rose 1.5% and Microsoft edged up 0.8%, while Meta and Amazon fell 0.3% and 0.1% respectively, showcasing varied performances among stocks amidst overall market weakness, which could influence investor decisions.
- Cautious Future Outlook: Despite growing margins for cloud companies, analysts warn of potential stock volatility due to macroeconomic pressures; however, management's confidence in demand forecasting may lead to full capacity utilization by 2026, providing some reassurance to investors.
See More
Lyft Launches Teen Accounts to Compete with Rivals
- Teen Account Launch: Lyft officially launched its teen accounts nationwide on Monday, aiming to match Uber's similar feature, with CEO David Risher emphasizing the importance of getting the product right, particularly in terms of communication with parents and teens.
- Enhanced Safety Features: The new accounts will match passengers aged 13 to 17 with drivers and include safety features such as pin verification, real-time tracking, and recordings, ensuring the safety of young riders.
- Autonomous Vehicle Strategy: Lyft is ramping up its autonomous vehicle strategy, planning to launch Tensor Robocar services powered by Nvidia technology in 2027, while also rolling out Waymo rides in Nashville this year to compete against rivals like Waymo, Uber, and Tesla.
- Market Expansion and Challenges: Lyft's market expansion includes the acquisition of European taxi app Freenow, and despite facing strong competition from companies like Waymo, Risher believes Lyft is in an
See More
Analysis of Peter Thiel's Investment Portfolio
- Tesla Position Change: Peter Thiel reduced his Tesla holdings by 76% in Q3 2025, yet it remains the largest position in his portfolio, indicating ongoing confidence in the electric vehicle market despite skepticism towards Musk's humanoid robot strategy.
- Microsoft Investment Increase: Thiel purchased 49,000 shares of Microsoft in Q3, elevating it to the second-largest holding at 34% of his total portfolio, reflecting his optimism about Microsoft's cloud services and AI integration, even as the company faces growth slowdowns.
- New Investment in Apple: Thiel initiated a new position in Apple by acquiring over 79,000 shares in Q3, suggesting he sees potential in Apple's AI capabilities, particularly its vast iPhone sales network and upcoming AI-powered smart glasses.
- AI Stock Selection: Although Thiel's hedge fund holds only three AI stocks, his choices of Microsoft and Apple demonstrate a preference for technology builders, indicating a belief that these companies will play a more significant role in future technological revolutions.
See More
Palantir's Stock Volatility and AI Bubble Risks
- Stock Volatility: Palantir's stock has surged over 1,900% since the start of 2023, adding more than $300 billion in market value, yet it has plummeted 37% since hitting an all-time high in November, indicating market concerns about its future.
- Core Platform Advantage: Palantir's Gotham and Foundry platforms have driven profitability ahead of Wall Street expectations, with Gotham providing critical support to the U.S. government and Foundry helping commercial clients optimize data flows, although with only 780 customers, it highlights significant long-term growth potential.
- Historical Bubble Warning: While AI is seen as the next major technological trend, history suggests that similar bubbles, like the internet, may emerge, as investors often overestimate the speed of technology adoption and optimization, potentially leading to significant value loss for Palantir and its peers.
- Valuation Risks: Palantir's price-to-sales (P/S) ratio reached 100 before the fourth quarter, and although it has dropped to 69.3, it remains well above historically sustainable levels, indicating that its stock may need to decline by at least 60% to escape bubble territory.
See More
Nvidia vs. Oracle: Compelling Investment Stories
- Nvidia's Market Performance: Nvidia's stock has surged over 700% in the past three years, pushing its market capitalization beyond $4 trillion, making it the largest company globally, which highlights its dominant position in high-performance AI applications and attracts significant investor interest.
- Oracle's Market Challenges: Oracle, with a market cap of $440 billion, has seen its stock drop over 52% since last September, primarily due to high spending on AI infrastructure and a debt exceeding $100 billion, raising concerns about its financial health among investors.
- Financial Performance Highlights: Oracle's recent Q2 FY2026 earnings report revealed a 14% year-over-year revenue increase to $16.05 billion, with net income soaring 95% to $6.13 billion, including a $2.7 billion pre-tax gain, showcasing its strong growth potential in the cloud computing sector.
- Future Growth Expectations: Despite facing debt pressures, Oracle's forward price-to-earnings ratio stands at just 19.8, indicating that its stock is at a two-year low, and analysts expect significant revenue growth in the future, potentially providing a good buying opportunity for investors.
See More
Montage Technology Shares Surge 60% on Hong Kong Debut, Raising $902 Million
- Strong Debut Performance: Montage Technology's shares surged approximately 60% on their Hong Kong debut, climbing from the offering price of HK$106.89 to HK$171, indicating robust market demand for its high-performance semiconductors and reinforcing its position in the cloud computing and AI sectors.
- Significant Fundraising: The IPO raised $902 million, reflecting strong investor interest in Chinese AI and semiconductor firms, particularly as the public tranche was oversubscribed by more than 700 times and the international offering was nearly 38 times covered.
- Intensifying Market Competition: Despite Montage's successful listing, competition is heating up, with Huawei and its chip unit HiSilicon holding a leading share of the domestic market, suggesting that the push for self-sufficiency will lead to fiercer rivalry within the industry.
- Evolving Policy Landscape: As the Chinese government intensifies efforts for self-sufficiency in advanced chips, the recent approval for Nvidia's H200 imports under specific conditions highlights the uncertainty in policy that could impact market dynamics.
See More
Big Tech Stocks Experience Market Volatility
- Market Volatility Impact: Following a week where over $1 trillion was wiped from market caps, Big Tech stocks showed flat performance in premarket trading on Monday, indicating market uncertainty, particularly with rising capital expenditure plans in the AI sector.
- Surge in Capital Expenditure: Amazon, Alphabet, Microsoft, and Meta reported a combined capital expenditure of approximately $120 billion in Q4, with projections soaring to $660 billion by 2026, surpassing the GDP of countries like the UAE, Singapore, and Israel, reflecting strong industry confidence in AI investments.
- Divergent Stock Performance: As of 6:12 a.m. ET, Oracle rose 1.5% and Microsoft edged up 0.8%, while Meta and Amazon fell 0.3% and 0.1% respectively, showcasing varied performances among stocks amidst overall market weakness, which could influence investor decisions.
- Cautious Future Outlook: Despite growing margins for cloud companies, analysts warn of potential stock volatility due to macroeconomic pressures; however, management's confidence in demand forecasting may lead to full capacity utilization by 2026, providing some reassurance to investors.
See More
Lyft Launches Teen Accounts to Compete with Rivals
- Teen Account Launch: Lyft officially launched its teen accounts nationwide on Monday, aiming to match Uber's similar feature, with CEO David Risher emphasizing the importance of getting the product right, particularly in terms of communication with parents and teens.
- Enhanced Safety Features: The new accounts will match passengers aged 13 to 17 with drivers and include safety features such as pin verification, real-time tracking, and recordings, ensuring the safety of young riders.
- Autonomous Vehicle Strategy: Lyft is ramping up its autonomous vehicle strategy, planning to launch Tensor Robocar services powered by Nvidia technology in 2027, while also rolling out Waymo rides in Nashville this year to compete against rivals like Waymo, Uber, and Tesla.
- Market Expansion and Challenges: Lyft's market expansion includes the acquisition of European taxi app Freenow, and despite facing strong competition from companies like Waymo, Risher believes Lyft is in an
See More
Analysis of Peter Thiel's Investment Portfolio
- Tesla Position Change: Peter Thiel reduced his Tesla holdings by 76% in Q3 2025, yet it remains the largest position in his portfolio, indicating ongoing confidence in the electric vehicle market despite skepticism towards Musk's humanoid robot strategy.
- Microsoft Investment Increase: Thiel purchased 49,000 shares of Microsoft in Q3, elevating it to the second-largest holding at 34% of his total portfolio, reflecting his optimism about Microsoft's cloud services and AI integration, even as the company faces growth slowdowns.
- New Investment in Apple: Thiel initiated a new position in Apple by acquiring over 79,000 shares in Q3, suggesting he sees potential in Apple's AI capabilities, particularly its vast iPhone sales network and upcoming AI-powered smart glasses.
- AI Stock Selection: Although Thiel's hedge fund holds only three AI stocks, his choices of Microsoft and Apple demonstrate a preference for technology builders, indicating a belief that these companies will play a more significant role in future technological revolutions.
See More
Palantir's Stock Volatility and AI Bubble Risks
- Stock Volatility: Palantir's stock has surged over 1,900% since the start of 2023, adding more than $300 billion in market value, yet it has plummeted 37% since hitting an all-time high in November, indicating market concerns about its future.
- Core Platform Advantage: Palantir's Gotham and Foundry platforms have driven profitability ahead of Wall Street expectations, with Gotham providing critical support to the U.S. government and Foundry helping commercial clients optimize data flows, although with only 780 customers, it highlights significant long-term growth potential.
- Historical Bubble Warning: While AI is seen as the next major technological trend, history suggests that similar bubbles, like the internet, may emerge, as investors often overestimate the speed of technology adoption and optimization, potentially leading to significant value loss for Palantir and its peers.
- Valuation Risks: Palantir's price-to-sales (P/S) ratio reached 100 before the fourth quarter, and although it has dropped to 69.3, it remains well above historically sustainable levels, indicating that its stock may need to decline by at least 60% to escape bubble territory.
See More
