Three of 'your father's' stocks may be among the top AI derivative investments moving forward.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 17 2025
0mins
Should l Buy NVDA?
Source: CNBC
Investment Insights: Tim Seymour, a chief investment officer, highlights classic companies like Cisco, Caterpillar, and Siemens as promising investments benefiting from the AI-driven data center buildout, suggesting they are undervalued compared to tech giants like Nvidia.
Cisco's Transformation: Cisco, once primarily a networking company, has successfully transitioned to a software-focused model with significant recurring revenue from security software, positioning it as a strong player in the current market.
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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: 207.830
Low
200.00
Averages
264.97
High
352.00
Current: 207.830
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
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.
AI Drives Nvidia's Earnings Growth Amid Market Concerns
- Significant Earnings Growth: Nvidia achieved a remarkable 65% revenue growth in fiscal 2026, primarily driven by artificial intelligence, although concerns about future growth slowing persist in the market.
- Market Share Risks: While Nvidia maintains its leadership in the AI chip market, other semiconductor companies are actively developing their own AI chips, which could impact its market share, although this is unlikely to threaten its leadership position in the short term.
- Valuation Pressure: With a market cap of approximately $4.8 trillion, Nvidia's strong revenue growth is tempered by a P/E ratio of 40, and if the stock were to decline by 25% over the next 12 months, its P/E could drop to 18, potentially entering value stock territory.
- Investor Strategy: Despite the potential for AI growth to slow, investors are advised to hold Nvidia shares, as current performance remains robust and valuations may adjust downward in the future, thereby limiting potential downside risks.
See More
SoftBank Plans Local AI Server Development
- Local AI Server Development: SoftBank plans to start designing and assembling local AI servers by the end of the decade to meet the growing demand for sovereign AI services, which is expected to significantly enhance its competitive edge in the AI market.
- Partnership Formation: SoftBank has initiated discussions with Nvidia and Foxconn to leverage Nvidia's GPU certification program and Foxconn's manufacturing capabilities, thereby strengthening its technological prowess and market position in high-performance server development.
- Manufacturing System Establishment: SoftBank aims to build a production base at a former Sharp plant, transitioning from assembling externally sourced components to eventually controlling the entire server production process, which will help improve production efficiency and reduce costs.
- AI Infrastructure Integration: The new servers will not only be used in SoftBank's data centers but will also support its AI-RAN integrated infrastructure, designed to handle communication and AI processing simultaneously, further advancing its strategic positioning in the AI sector.
See More
IREN Limited Partners with NVIDIA for AI Infrastructure Expansion
- Stock Surge: Shares of IREN Limited (IREN) surged 21% in after-hours trading on Thursday, reflecting strong market enthusiasm for the strategic partnership with NVIDIA that commits IREN to deliver up to 5 GW of next-generation AI infrastructure.
- Equity Rights Granted: Under the agreement, NVIDIA will receive a five-year warrant to purchase up to 30 million shares of IREN at $70 per share, representing a potential investment of $2.1 billion, indicating NVIDIA's confidence in IREN's future growth prospects.
- Accelerated Technology Integration: IREN will deploy massive clusters of NVIDIA's latest GPUs across its renewable-powered campuses in Texas and Canada, which not only accelerates IREN's transition to a full-stack AI cloud leader but also provides direct access to NVIDIA's advanced technology roadmap.
- GPU Expansion Strategy: This partnership builds on IREN's previous GPU expansion efforts, including a March 2026 order for over 50,000 NVIDIA B300 GPUs, raising its total fleet to 150,000 units, thereby strengthening its competitive position in the AI cloud market.
See More
Super Micro Computer Faces Major Challenges Amid Allegations
- Strong Financial Performance: Super Micro Computer reported a non-GAAP EPS of $0.84 for Q3 2026, beating estimates by $0.22, with revenues of $10.2 billion; however, negative publicity has impacted stock performance.
- Investigation Impact: Allegations against two employees for illegally shipping billions of dollars worth of NVIDIA servers to China have raised concerns about the company's financial health, potentially leading to further regulatory actions or restatements.
- Loss of Major Contract: BlueFin Research reported that Super Micro lost a significant deal with Oracle for 300 and 400 racks, valued between $1.1 billion and $1.4 billion, highlighting vulnerabilities in the company's market position.
- Market Share Pressure: As competitors like Dell and Hewlett Packard Enterprise ramp up their AI server offerings, Super Micro's current market share of approximately 13% may be squeezed, with analysts noting these rivals' superior global supply chains and enterprise relationships.
See More
NVIDIA and IREN Partner for 5GW AI Infrastructure Deployment
- Partnership Agreement: NVIDIA and IREN have formed a partnership to deploy up to 5 gigawatts of AI infrastructure, which is expected to significantly enhance IREN's competitiveness in the AI cloud market and drive business growth.
- GPU Procurement Agreement: IREN signed purchase agreements for over 50,000 NVIDIA B300 GPUs on March 4, 2026, with plans to expand its total GPU fleet to 150,000 by the end of 2026, deploying them in phases at its air-cooled data centers in British Columbia and Texas.
- Revenue Expectations: IREN anticipates that the expanded GPU fleet will support annualized AI cloud revenue exceeding $3.7 billion by the end of 2026, highlighting its strong growth potential in the AI infrastructure sector.
- Funding Assurance: IREN has secured $9.3 billion in funding over the past eight months through customer prepayments, convertible notes, GPU leasing, and financing, ensuring approximately $3.5 billion in capital expenditures tied to GPU orders, covering servers, storage, and networking equipment.
See More
CoreWeave Q1 Revenue Surpasses Expectations
- Significant Revenue Growth: CoreWeave reported Q1 revenue of $2.08 billion, exceeding analyst expectations of $1.97 billion, and more than doubling from $981.8 million a year ago, indicating strong performance in the rapidly growing cloud computing market.
- Widening Net Loss: Despite substantial revenue growth, CoreWeave's net loss widened to $740 million from $315 million a year earlier, reflecting a 127% surge in technology and infrastructure expenses to $1.27 billion, highlighting the financial pressures faced during its expansion.
- Accelerated Debt Financing: The company raised $8.5 billion in new debt in Q1, with total financing exceeding $20 billion this year, demonstrating its aggressive investment strategy for data center development, although this has pushed total debt close to $25 billion.
- Intensifying Market Competition: CoreWeave is competing with major cloud providers like Amazon, particularly in renting Nvidia GPUs to companies such as OpenAI and Anthropic, and despite high operating costs, its stock has surged nearly 80% in 2026.
See More
AI Drives Nvidia's Earnings Growth Amid Market Concerns
- Significant Earnings Growth: Nvidia achieved a remarkable 65% revenue growth in fiscal 2026, primarily driven by artificial intelligence, although concerns about future growth slowing persist in the market.
- Market Share Risks: While Nvidia maintains its leadership in the AI chip market, other semiconductor companies are actively developing their own AI chips, which could impact its market share, although this is unlikely to threaten its leadership position in the short term.
- Valuation Pressure: With a market cap of approximately $4.8 trillion, Nvidia's strong revenue growth is tempered by a P/E ratio of 40, and if the stock were to decline by 25% over the next 12 months, its P/E could drop to 18, potentially entering value stock territory.
- Investor Strategy: Despite the potential for AI growth to slow, investors are advised to hold Nvidia shares, as current performance remains robust and valuations may adjust downward in the future, thereby limiting potential downside risks.
See More
SoftBank Plans Local AI Server Development
- Local AI Server Development: SoftBank plans to start designing and assembling local AI servers by the end of the decade to meet the growing demand for sovereign AI services, which is expected to significantly enhance its competitive edge in the AI market.
- Partnership Formation: SoftBank has initiated discussions with Nvidia and Foxconn to leverage Nvidia's GPU certification program and Foxconn's manufacturing capabilities, thereby strengthening its technological prowess and market position in high-performance server development.
- Manufacturing System Establishment: SoftBank aims to build a production base at a former Sharp plant, transitioning from assembling externally sourced components to eventually controlling the entire server production process, which will help improve production efficiency and reduce costs.
- AI Infrastructure Integration: The new servers will not only be used in SoftBank's data centers but will also support its AI-RAN integrated infrastructure, designed to handle communication and AI processing simultaneously, further advancing its strategic positioning in the AI sector.
See More
IREN Limited Partners with NVIDIA for AI Infrastructure Expansion
- Stock Surge: Shares of IREN Limited (IREN) surged 21% in after-hours trading on Thursday, reflecting strong market enthusiasm for the strategic partnership with NVIDIA that commits IREN to deliver up to 5 GW of next-generation AI infrastructure.
- Equity Rights Granted: Under the agreement, NVIDIA will receive a five-year warrant to purchase up to 30 million shares of IREN at $70 per share, representing a potential investment of $2.1 billion, indicating NVIDIA's confidence in IREN's future growth prospects.
- Accelerated Technology Integration: IREN will deploy massive clusters of NVIDIA's latest GPUs across its renewable-powered campuses in Texas and Canada, which not only accelerates IREN's transition to a full-stack AI cloud leader but also provides direct access to NVIDIA's advanced technology roadmap.
- GPU Expansion Strategy: This partnership builds on IREN's previous GPU expansion efforts, including a March 2026 order for over 50,000 NVIDIA B300 GPUs, raising its total fleet to 150,000 units, thereby strengthening its competitive position in the AI cloud market.
See More
Super Micro Computer Faces Major Challenges Amid Allegations
- Strong Financial Performance: Super Micro Computer reported a non-GAAP EPS of $0.84 for Q3 2026, beating estimates by $0.22, with revenues of $10.2 billion; however, negative publicity has impacted stock performance.
- Investigation Impact: Allegations against two employees for illegally shipping billions of dollars worth of NVIDIA servers to China have raised concerns about the company's financial health, potentially leading to further regulatory actions or restatements.
- Loss of Major Contract: BlueFin Research reported that Super Micro lost a significant deal with Oracle for 300 and 400 racks, valued between $1.1 billion and $1.4 billion, highlighting vulnerabilities in the company's market position.
- Market Share Pressure: As competitors like Dell and Hewlett Packard Enterprise ramp up their AI server offerings, Super Micro's current market share of approximately 13% may be squeezed, with analysts noting these rivals' superior global supply chains and enterprise relationships.
See More
NVIDIA and IREN Partner for 5GW AI Infrastructure Deployment
- Partnership Agreement: NVIDIA and IREN have formed a partnership to deploy up to 5 gigawatts of AI infrastructure, which is expected to significantly enhance IREN's competitiveness in the AI cloud market and drive business growth.
- GPU Procurement Agreement: IREN signed purchase agreements for over 50,000 NVIDIA B300 GPUs on March 4, 2026, with plans to expand its total GPU fleet to 150,000 by the end of 2026, deploying them in phases at its air-cooled data centers in British Columbia and Texas.
- Revenue Expectations: IREN anticipates that the expanded GPU fleet will support annualized AI cloud revenue exceeding $3.7 billion by the end of 2026, highlighting its strong growth potential in the AI infrastructure sector.
- Funding Assurance: IREN has secured $9.3 billion in funding over the past eight months through customer prepayments, convertible notes, GPU leasing, and financing, ensuring approximately $3.5 billion in capital expenditures tied to GPU orders, covering servers, storage, and networking equipment.
See More
CoreWeave Q1 Revenue Surpasses Expectations
- Significant Revenue Growth: CoreWeave reported Q1 revenue of $2.08 billion, exceeding analyst expectations of $1.97 billion, and more than doubling from $981.8 million a year ago, indicating strong performance in the rapidly growing cloud computing market.
- Widening Net Loss: Despite substantial revenue growth, CoreWeave's net loss widened to $740 million from $315 million a year earlier, reflecting a 127% surge in technology and infrastructure expenses to $1.27 billion, highlighting the financial pressures faced during its expansion.
- Accelerated Debt Financing: The company raised $8.5 billion in new debt in Q1, with total financing exceeding $20 billion this year, demonstrating its aggressive investment strategy for data center development, although this has pushed total debt close to $25 billion.
- Intensifying Market Competition: CoreWeave is competing with major cloud providers like Amazon, particularly in renting Nvidia GPUs to companies such as OpenAI and Anthropic, and despite high operating costs, its stock has surged nearly 80% in 2026.
See More
