Wedbush Optimistic About AI Software Companies' Future
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy NVDA?
Source: stocktwits
- Early Monetization of AI Tools: Wedbush asserts that software companies are in the early stages of monetizing AI tools, with fresh funding at OpenAI and Nvidia CEO Jensen Huang reaffirming strong chip demand, indicating sustained market confidence that could drive industry recovery.
- Salesforce Earnings Highlight: The firm points to Salesforce's earnings updates as evidence that AI-driven revenue is beginning to materialize, reflecting that corporate investments in AI are gradually translating into actual gains, further enhancing market optimism about AI.
- Expected M&A Activity in Software: Analysts anticipate that merger activity in the software sector will accelerate in the coming months as companies pursue strategic acquisitions to bolster their AI capabilities, thereby driving industry consolidation and innovation.
- Accelerated AI Adoption by Big Enterprises: Wedbush notes advancements by Apple in AI assistant Siri features and monetization progress at Microsoft, ServiceNow, Meta, and Alphabet, suggesting that widespread enterprise adoption of AI technologies will boost market sentiment.
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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: 187.900
Low
200.00
Averages
264.97
High
352.00
Current: 187.900
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's Q4 Earnings Outlook Shows Strong Potential
- Earnings Potential Analysis: Oppenheimer anticipates Nvidia's Q4 sales could see a typical upside of $2B to $3B, primarily driven by the GB300 Ultra, indicating strong performance in the AI sector.
- Growing Market Demand: Expected capital expenditures from cloud service providers are projected to reach $650B in 2026, up from over $400B in 2025, reflecting sustained demand for Nvidia's products.
- New Product Outlook: The average selling price for Vera Rubin is expected to be 40% to 50% higher than that of GB300, potentially adding around $8B in revenue for Nvidia, further solidifying its market leadership.
- Market Size Expansion: With China now included, Nvidia's total addressable market is estimated to be around $4T, showcasing its dominant position in the global AI platform and future growth potential.
See More
Nvidia's Stock Pullback Presents Investment Opportunities
- Weak Market Performance: Since August 2025, Nvidia's stock has only risen by 5%, significantly lagging behind the S&P 500's 10% gain, indicating market caution regarding its future growth despite optimistic prospects in the AI sector.
- Surge in Capital Expenditures: Amazon, Alphabet, and Meta expect to spend at least $500 billion in capital expenditures in 2026, positioning Nvidia as a primary beneficiary; if it maintains its market share, it could see substantial revenue growth, with global data center capital expenditures projected to reach $3 trillion to $4 trillion by 2030.
- China Market Resumption: Nvidia has regained the ability to export GPUs to China, re-entering the world's second-largest AI market; although the stock has not significantly reacted to this positive development, it provides new momentum for future growth.
- Attractive Valuation: With a forward P/E ratio of less than 24, Nvidia's stock appears cheap compared to the S&P 500's 21.9, suggesting that investors should consider buying during this pullback, especially with upcoming spending increases on the horizon.
See More
Taiwan Surpasses China as America's Top Supplier Amid AI Boom
- Surge in Imports: U.S. imports from Taiwan soared to $24.7 billion in December, more than doubling year-over-year, surpassing China's $21.1 billion exports, highlighting Taiwan's increasing significance in the global supply chain.
- AI Hardware Driving Growth: Trump's tariff system has failed to halt imports; instead, exemptions for computer equipment and chips have facilitated the flow of AI hardware from Taiwan into the U.S., solidifying Taiwan's central role in the AI economy.
- Shift in Trade Flows: Despite a 44% decline in China's exports, demand for semiconductor-producing nations remains strong, with Taiwan emerging as a key supplier for U.S. AI data centers and cloud infrastructure, indicating a significant shift in global trade dynamics.
- Transfer of Technological Power: This shift represents not just a trade anomaly but a structural transfer of technological power, with Taiwan playing a crucial role in the AI arms race, boosting U.S. tech stocks and reshaping global trade itself.
See More
Wedbush Optimistic About AI Software Companies' Future
- Early Monetization of AI Tools: Wedbush asserts that software companies are in the early stages of monetizing AI tools, with fresh funding at OpenAI and Nvidia CEO Jensen Huang reaffirming strong chip demand, indicating sustained market confidence that could drive industry recovery.
- Salesforce Earnings Highlight: The firm points to Salesforce's earnings updates as evidence that AI-driven revenue is beginning to materialize, reflecting that corporate investments in AI are gradually translating into actual gains, further enhancing market optimism about AI.
- Expected M&A Activity in Software: Analysts anticipate that merger activity in the software sector will accelerate in the coming months as companies pursue strategic acquisitions to bolster their AI capabilities, thereby driving industry consolidation and innovation.
- Accelerated AI Adoption by Big Enterprises: Wedbush notes advancements by Apple in AI assistant Siri features and monetization progress at Microsoft, ServiceNow, Meta, and Alphabet, suggesting that widespread enterprise adoption of AI technologies will boost market sentiment.
See More
Comparing Investment Value: Nebius vs. UiPath
- Nebius Rapid Growth: Nebius reported a staggering 479% year-over-year revenue growth and 547% quarter-over-quarter growth in Q4 2025, yet remains unprofitable with a capital expenditure ratio of 765.63%, raising concerns about its current stock price of $103.94.
- UiPath's Profitability: UiPath's latest quarterly results show a 16% year-over-year revenue increase, and the company is now profitable, with a market cap of $6 billion at a current stock price of $11.51, indicating its stability and attractiveness in the market.
- Market Performance Comparison: While Nebius's stock has surged over 114% in the past year, its high-risk profile and capital expenditures diminish its investment appeal; in contrast, UiPath's steady growth and cash flow expectations position it as a safer investment choice.
- Investment Recommendation: Between the two, UiPath is recommended as the better long-term investment due to its stronger fundamentals and lower execution risk, whereas Nebius presents greater market volatility risks.
See More
Nvidia and Alphabet's Competitive Market Outlook
- Market Dominance: As of February 17, 2026, Nvidia's market cap reached $4.5 trillion, establishing itself as a cornerstone of the modern AI boom, reflecting its significant influence and market leadership in the tech sector.
- Google Cloud Expansion: Alphabet's capital expenditure budget is projected to double from $91 billion to approximately $180 billion by 2027, indicating substantial investments in AI infrastructure that could further drive growth in its cloud business.
- In-house Chip Potential: Google's collaboration with Broadcom and TSMC to develop Tensor chips tailored for its cloud services may undermine Nvidia's pricing power in the AI hardware market, impacting its future profitability.
- Berkshire's Growth Outlook: Although Berkshire Hathaway's market cap stands at $1.1 trillion, if it achieves a 15% annual growth rate, it could approach Nvidia's valuation within the next decade, showcasing its robust business model and long-term investment appeal.
See More
Nvidia's Q4 Earnings Outlook Shows Strong Potential
- Earnings Potential Analysis: Oppenheimer anticipates Nvidia's Q4 sales could see a typical upside of $2B to $3B, primarily driven by the GB300 Ultra, indicating strong performance in the AI sector.
- Growing Market Demand: Expected capital expenditures from cloud service providers are projected to reach $650B in 2026, up from over $400B in 2025, reflecting sustained demand for Nvidia's products.
- New Product Outlook: The average selling price for Vera Rubin is expected to be 40% to 50% higher than that of GB300, potentially adding around $8B in revenue for Nvidia, further solidifying its market leadership.
- Market Size Expansion: With China now included, Nvidia's total addressable market is estimated to be around $4T, showcasing its dominant position in the global AI platform and future growth potential.
See More
Nvidia's Stock Pullback Presents Investment Opportunities
- Weak Market Performance: Since August 2025, Nvidia's stock has only risen by 5%, significantly lagging behind the S&P 500's 10% gain, indicating market caution regarding its future growth despite optimistic prospects in the AI sector.
- Surge in Capital Expenditures: Amazon, Alphabet, and Meta expect to spend at least $500 billion in capital expenditures in 2026, positioning Nvidia as a primary beneficiary; if it maintains its market share, it could see substantial revenue growth, with global data center capital expenditures projected to reach $3 trillion to $4 trillion by 2030.
- China Market Resumption: Nvidia has regained the ability to export GPUs to China, re-entering the world's second-largest AI market; although the stock has not significantly reacted to this positive development, it provides new momentum for future growth.
- Attractive Valuation: With a forward P/E ratio of less than 24, Nvidia's stock appears cheap compared to the S&P 500's 21.9, suggesting that investors should consider buying during this pullback, especially with upcoming spending increases on the horizon.
See More
Taiwan Surpasses China as America's Top Supplier Amid AI Boom
- Surge in Imports: U.S. imports from Taiwan soared to $24.7 billion in December, more than doubling year-over-year, surpassing China's $21.1 billion exports, highlighting Taiwan's increasing significance in the global supply chain.
- AI Hardware Driving Growth: Trump's tariff system has failed to halt imports; instead, exemptions for computer equipment and chips have facilitated the flow of AI hardware from Taiwan into the U.S., solidifying Taiwan's central role in the AI economy.
- Shift in Trade Flows: Despite a 44% decline in China's exports, demand for semiconductor-producing nations remains strong, with Taiwan emerging as a key supplier for U.S. AI data centers and cloud infrastructure, indicating a significant shift in global trade dynamics.
- Transfer of Technological Power: This shift represents not just a trade anomaly but a structural transfer of technological power, with Taiwan playing a crucial role in the AI arms race, boosting U.S. tech stocks and reshaping global trade itself.
See More
Wedbush Optimistic About AI Software Companies' Future
- Early Monetization of AI Tools: Wedbush asserts that software companies are in the early stages of monetizing AI tools, with fresh funding at OpenAI and Nvidia CEO Jensen Huang reaffirming strong chip demand, indicating sustained market confidence that could drive industry recovery.
- Salesforce Earnings Highlight: The firm points to Salesforce's earnings updates as evidence that AI-driven revenue is beginning to materialize, reflecting that corporate investments in AI are gradually translating into actual gains, further enhancing market optimism about AI.
- Expected M&A Activity in Software: Analysts anticipate that merger activity in the software sector will accelerate in the coming months as companies pursue strategic acquisitions to bolster their AI capabilities, thereby driving industry consolidation and innovation.
- Accelerated AI Adoption by Big Enterprises: Wedbush notes advancements by Apple in AI assistant Siri features and monetization progress at Microsoft, ServiceNow, Meta, and Alphabet, suggesting that widespread enterprise adoption of AI technologies will boost market sentiment.
See More
Comparing Investment Value: Nebius vs. UiPath
- Nebius Rapid Growth: Nebius reported a staggering 479% year-over-year revenue growth and 547% quarter-over-quarter growth in Q4 2025, yet remains unprofitable with a capital expenditure ratio of 765.63%, raising concerns about its current stock price of $103.94.
- UiPath's Profitability: UiPath's latest quarterly results show a 16% year-over-year revenue increase, and the company is now profitable, with a market cap of $6 billion at a current stock price of $11.51, indicating its stability and attractiveness in the market.
- Market Performance Comparison: While Nebius's stock has surged over 114% in the past year, its high-risk profile and capital expenditures diminish its investment appeal; in contrast, UiPath's steady growth and cash flow expectations position it as a safer investment choice.
- Investment Recommendation: Between the two, UiPath is recommended as the better long-term investment due to its stronger fundamentals and lower execution risk, whereas Nebius presents greater market volatility risks.
See More
Nvidia and Alphabet's Competitive Market Outlook
- Market Dominance: As of February 17, 2026, Nvidia's market cap reached $4.5 trillion, establishing itself as a cornerstone of the modern AI boom, reflecting its significant influence and market leadership in the tech sector.
- Google Cloud Expansion: Alphabet's capital expenditure budget is projected to double from $91 billion to approximately $180 billion by 2027, indicating substantial investments in AI infrastructure that could further drive growth in its cloud business.
- In-house Chip Potential: Google's collaboration with Broadcom and TSMC to develop Tensor chips tailored for its cloud services may undermine Nvidia's pricing power in the AI hardware market, impacting its future profitability.
- Berkshire's Growth Outlook: Although Berkshire Hathaway's market cap stands at $1.1 trillion, if it achieves a 15% annual growth rate, it could approach Nvidia's valuation within the next decade, showcasing its robust business model and long-term investment appeal.
See More
