Is Nvidia (NVDA) Boosting Demand for Its Own Chips?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 19 2025
0mins
Should l Buy NVDA?
Source: TipRanks
Nvidia's Major AI Investments: Nvidia has announced a significant investment of up to $10 billion in AI startup Anthropic, alongside Microsoft's $5 billion investment, as part of a deal that includes Anthropic purchasing $30 billion in computing power from Microsoft’s Azure cloud services.
Growing AI Deal Activity: In 2025 alone, Nvidia has completed 59 AI-related deals totaling $23.7 billion, surpassing its total investments of $22.8 billion in 2024, and has invested approximately $53 billion across 170 AI deals since 2020.
Concerns Over Market Impact: Analysts express concerns that Nvidia's funding of companies that also purchase its chips may inflate demand, raising fears of an AI-driven market bubble, although CEO Jensen Huang defends the strategy as a smart investment in the future of AI.
Analyst Ratings and Stock Potential: Nvidia stock has a Strong Buy consensus rating from analysts, with 37 Buys, one Hold, and one Sell, and an average price target of $243.09 per share, indicating a potential upside of 30.7%.
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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: 185.410
Low
200.00
Averages
264.97
High
352.00
Current: 185.410
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.
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- Earnings Expectations: With Nvidia's current price-to-earnings ratio at 40, achieving a stock price of $300 requires at least $7.50 in earnings per share, and analysts project $7.66 for FY 2027, providing strong support for the stock's upward trajectory.
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- Stock Selection Recommendations: Nvidia, Taiwan Semiconductor, and Microsoft are identified as potential high-return stocks for the next decade, with Nvidia achieving a 30% average annual return over the past 10 years, emphasizing its significant role in AI infrastructure.
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- Price Projection: Nvidia's current stock price is around $175, and to reach $300 by year-end, it would need to rise over 70%, a target that appears realistic given the company's growth potential and market conditions.
- Surge in Capital Expenditure: Meta Platforms reported $72.2 billion in capital expenditures for 2025, with expectations to increase this to between $115 billion and $135 billion in 2026, while Alphabet plans to spend $175 billion to $185 billion in 2026, driving significant demand for Nvidia GPUs and enhancing its market position.
- Earnings Expectations: With Nvidia's current price-to-earnings ratio at 40, achieving a stock price of $300 requires at least $7.50 in earnings per share, and analysts project $7.66 for FY 2027, providing strong support for the stock's upward trajectory.
- Market Opportunities: As investments in data centers continue to rise, Nvidia stands to benefit from this trend, particularly in 2026, where it is expected to experience dual earnings growth, further solidifying its leadership in the AI sector.
See More
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- 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
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- Revenue Growth: Taiwan Semiconductor Manufacturing reported an increase in revenue for the month, indicating its strong position in the semiconductor supply chain.
- Potential Tariff Relief: The company may benefit further from potential relief from U.S. tariffs, which could enhance its market performance.
See More
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- Massive Market Potential: With a current market cap of $1.6 trillion, Broadcom could offer investors an 86% return if it joins the $3 trillion club, highlighting its strong growth potential in the data center sector.
- Impressive Financial Performance: In Q4, Broadcom generated record revenue of $18 billion, a 28% year-over-year increase, with adjusted EPS reaching $1.95, up 37%, indicating robust performance beyond just AI-related sales.
- Strong Growth Forecast: Management projects Q1 fiscal 2026 revenue of $19.1 billion, nearly a 29% increase, with adjusted EBITDA expected to rise 30% to $12.8 billion, showcasing the company's growth momentum.
- Industry Leadership: As a leader in Application-Specific Integrated Circuits (ASICs), Broadcom is well-positioned to benefit from the ongoing data center infrastructure demand, with global capital expenditures projected to approach $7 trillion by 2030.
See More
Building a Portfolio for Future Growth
- Investment Goal Setting: Achieving a stock portfolio of $1 million by retirement, alongside Social Security and 401(k) benefits, is projected to create a comfortable nest egg, underscoring the importance of long-term investing.
- Return Rate Analysis: With an initial investment of $10,000 and monthly contributions of $100, achieving a 21% annual return over 20 years could reach the $1 million target, highlighting the critical role of time in investment success.
- Stock Selection Recommendations: Nvidia, Taiwan Semiconductor, and Microsoft are identified as potential high-return stocks for the next decade, with Nvidia achieving a 30% average annual return over the past 10 years, emphasizing its significant role in AI infrastructure.
- Market Competitive Advantage: Taiwan Semiconductor holds about 67% of the third-party chip manufacturing market and produces 90% of advanced AI chips, positioning it centrally in the upcoming AI boom, while its relatively low P/E ratio enhances its investment appeal.
See More
Market Sentiment Improves as Nasdaq Rises Over 200 Points
- Sentiment Recovery: The CNN Money Fear & Greed Index rose to 48.3 on Monday, entering the 'Neutral' zone from a previous reading of 43.9, indicating improved market sentiment that may attract more investors.
- Broad Market Gains: U.S. stocks mostly closed higher on Monday, with the Nasdaq Composite jumping over 200 points to 23,238.67, suggesting strong performance in tech stocks driving overall market positivity.
- Dow Jones Record High: The Dow Jones index increased by about 20 points to 50,135.87 on Monday, marking a new record, reflecting enhanced investor confidence in economic recovery that could further propel market growth.
- Sector Performance Divergence: While most sectors in the S&P 500 closed positively, with materials, energy, and information technology stocks leading gains, consumer staples and healthcare stocks fell, indicating a divergence in market performance that may influence investor decisions.
See More
