Nvidia's Strong Outlook Amid AI Spending Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy NVDA?
Source: Fool
- Stock Surge: Nvidia's shares have skyrocketed by 1,180% since early 2023, currently priced at $187, with Wall Street analysts generally viewing the stock as undervalued, as indicated by a median target price of $250, suggesting a potential upside of 33%.
- Market Share Advantage: Nvidia commands over 80% of the AI accelerator market, and its full-stack strategy enhances its competitive edge in hardware and software development, evidenced by a remarkable 162% increase in networking revenue in the latest quarter, underscoring its significant impact on AI infrastructure.
- Capex Forecast: Wall Street has revised its 2026 AI hyperscaler capital expenditure growth forecast from 19% to 70%, projecting total spending to reach approximately $650 billion, which bodes well for Nvidia as the company is likely to capture a substantial share of this market.
- Industry Leadership: Strong financial results from companies like Alphabet, Amazon, Meta, and Microsoft suggest that Nvidia's performance will be robust in the future, particularly as investments in AI infrastructure continue to rise, positioning Nvidia to maintain its market leadership.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 186.940
Low
200.00
Averages
264.97
High
352.00
Current: 186.940
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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- Successful Fundraising: In August 2025, Cohere raised $500 million, valuing the company at $6.8 billion, with investors including AMD, Nvidia, and Salesforce, reflecting market recognition of its capital-efficient model and strengthening its position in the competitive AI landscape.
- Improved Gross Margins: Cohere's gross margins averaged about 70% in 2025, expanding by 25 basis points year-over-year, demonstrating the company's ability to achieve sustainable growth by optimizing resource allocation and managing customer demand without being affected by market volatility.
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- Significant Technological Edge: Nvidia's graphics processing units (GPUs) are the industry standard for AI computing, while Broadcom collaborates with AI hyperscalers to design custom chips, ensuring their competitiveness in the AI hardware market.
- Key Semiconductor Supply Chain: Taiwan Semiconductor Manufacturing Company (TSMC) fabricates logic chips for Nvidia and Broadcom, and its new 2-nanometer chip technology promises reduced power consumption, further solidifying its critical role in the AI technology supply chain.
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- Taiwan Semiconductor's Key Role: As the primary chip supplier for Nvidia and Broadcom, Taiwan Semiconductor plays an essential role in AI hardware components, and its new 2-nanometer chip technology promises reduced power consumption, supporting sustainable AI data center development and positioning it to benefit from rising AI spending.
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See More
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- Stock Surge: Nvidia's shares have skyrocketed by 1,180% since early 2023, currently priced at $187, with Wall Street analysts generally viewing the stock as undervalued, as indicated by a median target price of $250, suggesting a potential upside of 33%.
- Market Share Advantage: Nvidia commands over 80% of the AI accelerator market, and its full-stack strategy enhances its competitive edge in hardware and software development, evidenced by a remarkable 162% increase in networking revenue in the latest quarter, underscoring its significant impact on AI infrastructure.
- Capex Forecast: Wall Street has revised its 2026 AI hyperscaler capital expenditure growth forecast from 19% to 70%, projecting total spending to reach approximately $650 billion, which bodes well for Nvidia as the company is likely to capture a substantial share of this market.
- Industry Leadership: Strong financial results from companies like Alphabet, Amazon, Meta, and Microsoft suggest that Nvidia's performance will be robust in the future, particularly as investments in AI infrastructure continue to rise, positioning Nvidia to maintain its market leadership.
See More
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- Significant Revenue Growth: Cohere achieved approximately $240 million in annual recurring revenue in 2025, surpassing its $200 million target, indicating strong market demand that is expected to further enhance the company's market share in the AI sector.
- Successful Fundraising: In August 2025, Cohere raised $500 million, valuing the company at $6.8 billion, with investors including AMD, Nvidia, and Salesforce, reflecting market recognition of its capital-efficient model and strengthening its position in the competitive AI landscape.
- Improved Gross Margins: Cohere's gross margins averaged about 70% in 2025, expanding by 25 basis points year-over-year, demonstrating the company's ability to achieve sustainable growth by optimizing resource allocation and managing customer demand without being affected by market volatility.
- Market Expansion Plans: Cohere plans to continue expanding into the European market in 2026 and build its AI agent platform, North, anticipating another year of rapid growth, with the CEO indicating that the company is poised for a public market debut to attract more investor interest.
See More
AI Investment Opportunities Continue to Heat Up
- Strong Market Demand: Despite concerns over spending on hyperscale data centers, the demand in the AI sector remains robust, driving significant growth for companies like Nvidia and Broadcom, which are expected to benefit from this trend in the coming years.
- Significant Technological Edge: Nvidia's graphics processing units (GPUs) are the industry standard for AI computing, while Broadcom collaborates with AI hyperscalers to design custom chips, ensuring their competitiveness in the AI hardware market.
- Key Semiconductor Supply Chain: Taiwan Semiconductor Manufacturing Company (TSMC) fabricates logic chips for Nvidia and Broadcom, and its new 2-nanometer chip technology promises reduced power consumption, further solidifying its critical role in the AI technology supply chain.
- Surging Cloud Computing Demand: Following their latest earnings reports, Alphabet and Microsoft saw stock price declines; however, their strong demand and revenue growth in cloud computing (39% and 48% respectively) indicate that AI investments are justified and will continue to drive their business growth.
See More
CoreWeave's Stock Surges 140% Post-IPO Amid AI Demand
- Strong IPO Performance: CoreWeave's stock soared over 300% following its IPO in late March, and despite some pullback, it remains up nearly 140% since debut, reflecting strong market confidence in its AI chip rental business.
- Significant Revenue Growth: The company has achieved triple-digit revenue growth for three consecutive quarters, primarily due to its flexible GPU rental service that meets the urgent demand for computing power from AI customers, thereby enhancing its competitive position in the market.
- Close Partnership with Nvidia: Nvidia not only holds shares in CoreWeave but has also pledged to purchase any unused cloud capacity until April 2032, indicating strong confidence in CoreWeave's future and further solidifying its position in the AI market.
- Future Investment Challenges: While CoreWeave faces high debt risks due to necessary infrastructure investments, growth investors willing to take on some risk may consider buying shares around the upcoming earnings report on February 26, potentially reaping substantial rewards as the AI sector continues to expand.
See More
CoreWeave's Stock Surges 140% Post-IPO Amid AI Demand
- Significant Revenue Growth: CoreWeave has experienced triple-digit revenue growth for three consecutive quarters, indicating strong demand in the AI workload market and enhancing its market position, which has attracted numerous customers to rent its Nvidia GPUs.
- Strong Stock Performance: Since its IPO in late March, CoreWeave's stock surged over 300% in the following months, and although it has since pared some gains, it remains up nearly 140% from its debut, reflecting market confidence in its future growth.
- Close Partnership with Nvidia: Nvidia, a key investor in CoreWeave, has pledged to purchase any unused cloud capacity until April 2032, demonstrating Nvidia's trust in CoreWeave and its potential in the AI market.
- Infrastructure Investment Challenges: To meet the increasing demand for its services, CoreWeave must invest heavily in infrastructure, leading to rising debt levels; while this poses risks for cautious investors, it presents a compelling opportunity for growth-oriented investors willing to take on some risk.
See More
Surging AI Hardware Demand Benefits Nvidia and Broadcom
- Surging AI Hardware Demand: Nvidia and Broadcom are poised for strong growth due to massive spending in AI data centers, with Nvidia's GPUs being the industry standard for AI computing and Broadcom collaborating with AI hyperscalers to design custom chips, solidifying their market positions.
- Taiwan Semiconductor's Key Role: As the primary chip supplier for Nvidia and Broadcom, Taiwan Semiconductor plays an essential role in AI hardware components, and its new 2-nanometer chip technology promises reduced power consumption, supporting sustainable AI data center development and positioning it to benefit from rising AI spending.
- Cloud Giants' Performance: Alphabet and Microsoft reported robust cloud computing growth in their latest earnings, achieving revenue increases of 39% and 48% respectively; despite stock pullbacks, their investments in AI and strong market demand indicate significant future growth potential.
- Emerging Investment Opportunities: With ongoing AI investment trends, several stocks are emerging as potential buys, and analysts suggest that investors should consider increasing their positions during price pullbacks, particularly in companies like Nvidia and Broadcom, which are expected to shine in the coming years.
See More
Nvidia's Strong Outlook Amid AI Spending Surge
- Stock Surge: Nvidia's shares have skyrocketed by 1,180% since early 2023, currently priced at $187, with Wall Street analysts generally viewing the stock as undervalued, as indicated by a median target price of $250, suggesting a potential upside of 33%.
- Market Share Advantage: Nvidia commands over 80% of the AI accelerator market, and its full-stack strategy enhances its competitive edge in hardware and software development, evidenced by a remarkable 162% increase in networking revenue in the latest quarter, underscoring its significant impact on AI infrastructure.
- Capex Forecast: Wall Street has revised its 2026 AI hyperscaler capital expenditure growth forecast from 19% to 70%, projecting total spending to reach approximately $650 billion, which bodes well for Nvidia as the company is likely to capture a substantial share of this market.
- Industry Leadership: Strong financial results from companies like Alphabet, Amazon, Meta, and Microsoft suggest that Nvidia's performance will be robust in the future, particularly as investments in AI infrastructure continue to rise, positioning Nvidia to maintain its market leadership.
See More
