AI Investment Opportunities Continue to Heat Up
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy NVDA?
Source: Fool
- 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.
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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.
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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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See More
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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.
- 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
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- Earnings Growth: Brookfield Corporation's distributable earnings increased by 11% in 2025 to $5.4 billion, supporting its ability to generate market-beating total returns, showcasing the company's strong profitability and competitive position.
- Asset Management Performance: The asset management segment grew its fee-bearing capital to $603 billion, driving a 22% increase in fee-related earnings to $3 billion, indicating robust performance and heightened market demand in asset management.
- Infrastructure Investment Opportunities: Brookfield estimates a need for $7 trillion in global investments over the next decade for data centers and power infrastructure, actively positioning itself in AI infrastructure through partnerships with companies like NVIDIA, demonstrating its forward-looking investment strategy.
- Shareholder Returns Enhancement: The company repurchased over $1 billion in shares last year and recently raised its dividend by 17%, which not only boosts shareholder confidence but also reflects the company's commitment to future growth and value creation.
See More
Market Volatility and Historical Correlations During Trump's Presidency
- Market Performance Review: During Trump's first term, the S&P 500 surged by 70%, the Dow Jones Industrial Average rose by 57%, and the Nasdaq Composite skyrocketed by 142%, indicating a strong market boost from his policies.
- Valuation Warning: As of February 11, the Shiller P/E ratio for the S&P 500 reached 40.35, significantly above the historical average of 17.34, marking the second-highest valuation in 155 years and suggesting potential future market correction risks.
- Tech Bubble Risks: Despite soaring investments in AI technology, history shows that every major tech innovation has faced bubble bursts, and investor over-optimism regarding AI could lead to severe market volatility in the future.
- Midterm Election Impact: Historical data indicates that the S&P 500 has averaged a 17.5% decline during midterm election years since 1950, with nearly a 20% drop during Trump's first term, suggesting significant market adjustment pressures ahead.
See More
Palantir Technologies Continues to Lead Growth Stocks
- Accelerating Revenue Growth: Palantir has achieved accelerating revenue growth for 10 consecutive quarters, with a remarkable 70% increase in the latest quarter, indicating strong performance and sustained demand in the AI market.
- Significant Customer Expansion: U.S. commercial customer revenue soared by 137%, and the customer count jumped 34% in Q4, demonstrating that Palantir's AI platform is being adopted by an increasing number of enterprises and rapidly expanding usage.
- Innovative Sales Model: Through its Bootcamp sales model, Palantir can demonstrate how to create AI-driven tools based on actual data in just five days, which shortens sales cycles and helps quickly secure new customers.
- Valuation Challenges and Opportunities: Although Palantir's forward price-to-sales ratio stands at 47 times, indicating a high valuation, its leadership position in the AI landscape suggests that any sustained weakness in stock price could present a buying opportunity for investors.
See More
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- 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
