AI Spending Continues to Surge, Favoring Key Stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy NVDA?
Source: Fool
- Strong Market Demand: Despite market hopes for a slowdown in AI spending, this trend is expected to persist for several years, particularly as the construction of large data centers takes time, indicating a bullish outlook for companies involved in AI.
- Nvidia's Leading Position: Nvidia (NVDA) has emerged as the top provider of AI computing units since 2023, with its latest Rubin chip architecture requiring four times fewer GPUs for training AI models, further driving customer upgrade demand, and is projected to grow at 65% in fiscal year 2027.
- TSMC's Growth Potential: Taiwan Semiconductor Manufacturing (TSM), as the world's largest chip foundry, is expected to see nearly 30% revenue growth this year, benefiting from the four major hyperscalers planning to invest around $650 billion in capital expenditures, highlighting its crucial role in AI spending.
- Broadcom's Market Opportunity: Broadcom (AVGO) is experiencing exploding demand for its custom AI chips, with management projecting a doubling of AI chip revenue in the upcoming quarter, positioning itself as a strong alternative to Nvidia in the competitive AI computing landscape.
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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.
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- Future Growth Potential: Analysts expect Nvidia to report a 57% revenue growth for fiscal 2026, accelerating to 65% in fiscal 2027, indicating strong growth momentum amid a surge in AI infrastructure spending.
- Capital Expenditure Plans: The four major hyperscalers plan to spend $650 billion on capital expenditures this year, further driving demand for Nvidia's products, with expectations for sustained demand growth in the coming years.
- Attractive Valuation: Despite the bullish outlook, Nvidia's forward P/E ratio is under 24, making the current stock price attractive, and investors should seize the opportunity to buy shares ahead of the upcoming earnings report on February 25.
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- Staggering Investment Returns: Over the past decade, Nvidia's stock has surged nearly 27,000%, meaning a $10,000 investment is now worth $2.7 million, a life-changing amount for most retail investors.
- Future Growth Potential: Analysts expect Nvidia to report a 57% revenue growth for fiscal 2026, accelerating to 65% in fiscal 2027, indicating strong growth momentum amid a surge in AI infrastructure spending.
- Capital Expenditure Plans: The four major hyperscalers plan to spend $650 billion on capital expenditures this year, further driving demand for Nvidia's products, with expectations for sustained demand growth in the coming years.
- Attractive Valuation: Despite the bullish outlook, Nvidia's forward P/E ratio is under 24, making the current stock price attractive, and investors should seize the opportunity to buy shares ahead of the upcoming earnings report on February 25.
See More
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- Strong Growth Expectations: Analysts project Nvidia's revenue to grow by 65% this year, making it one of the fastest-growing stocks while its forward P/E ratio remains relatively low, suggesting that its value is underestimated and attracting more investor interest.
- Industry Standard: Nvidia's graphics processing units (GPUs) remain the industry standard in AI computing, and with major hyperscalers increasing their AI spending, Nvidia is poised to capture a significant share of the market, further solidifying its leadership position.
- Long-Term Investment Potential: With projections indicating that AI spending will last through at least 2030, Nvidia is not only expected to achieve significant growth in 2026 but also possesses strong long-term investment value as a key player in this technological revolution.
See More
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- AI Data Centers by Cipher Mining: Cipher Mining is addressing a significant bottleneck in the AI sector, with a projected 44 gigawatt shortage by 2028, making its 3.4 gigawatt pipeline a highly sought-after resource, although the stock has remained flat for months due to delays in energizing these centers.
- Revenue Potential from Long-Term Contracts: The long-term agreements with Amazon and Alphabet are expected to generate substantial annual recurring revenue, with 244 megawatts allocated to Fluidstack and 300 megawatts to Amazon, indicating significant future revenue growth potential despite currently utilizing less than 20% of its pipeline.
- SoFi's Crypto Growth: SoFi achieved a 37% year-over-year revenue increase in Q4 2025, despite a nearly 30% decline in stock price year-to-date, with its crypto trading platform attracting over 63,000 users within just ten days, highlighting strong market demand.
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See More
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- Stock Performance: Nvidia's stock has surged nearly 27,000% over the past decade, meaning a $10,000 investment made ten years ago would now be worth $2.7 million, highlighting its immense potential and appeal as an investment.
- Revenue Growth Expectations: Analysts expect Nvidia's revenue to grow by 57% in fiscal 2026 and accelerate to 65% in fiscal 2027, indicating a very optimistic growth outlook for the company amid a surge in AI infrastructure spending.
- Capital Expenditure Plans: The four major hyperscalers plan to spend $650 billion on capital expenditures this year, providing a strong demand foundation for Nvidia, with expectations that market demand will not weaken in the near term.
- Valuation Attractiveness: Despite the bullish outlook, Nvidia's forward P/E ratio is expected to be under 24 times, making the current stock price relatively cheap, and investors should seize the opportunity to buy shares ahead of the upcoming earnings report.
See More
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- Surging Uranium Demand: Global demand for uranium has surged over the past year, with spot prices increasing by 32%, highlighting the growing importance of nuclear energy in meeting the needs of artificial intelligence and green energy, thus enhancing the market outlook for companies like Cameco.
- Strong Performance: Cameco reported an 11% revenue growth to $3.48 billion in 2025, with diluted earnings per share (EPS) skyrocketing by 246% to $1.35, demonstrating the company's robust performance and profitability in the nuclear energy market.
- Strategic Investments and Partnerships: Cameco's 49% stake in Westinghouse aligns with the U.S. Department of Energy's plan to triple nuclear energy generation by 2050, and the $80 billion procurement deal with the U.S. further solidifies its market position.
- Dividend Increase and Market Opportunity: Cameco raised its dividend by 50% in 2024, and while the current yield is only 0.15%, investors may consider buying during the stock's recent dip to capitalize on future growth potential amid the uranium bull market.
See More
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- Cipher Mining's Growth Outlook: Cipher Mining is addressing the energy bottleneck in the AI sector, with a projected 44 gigawatt shortage by 2028, making its 3.4 gigawatt pipeline a highly sought-after resource, although it is not yet fully operational, long-term contracts will ensure stable annual revenue.
- Strong Financial Position: Cipher Mining ended Q3 2025 with $1.2 billion in cash reserves, providing ample funding for future AI data center construction, which is expected to attract more customers and expand existing agreements with Amazon and Alphabet.
- SoFi's Growth Potential: Despite SoFi's stock being down nearly 30% year-to-date, its revenue grew by 37% year-over-year in Q4 2025, and after re-launching crypto trading, over 63,000 customers participated within just 10 days, indicating strong market demand.
- Diversified Financial Products: SoFi is not solely reliant on interest income from loans, which increased by 30% year-over-year, and its base of 13.7 million members provides a solid foundation for future growth, especially with the anticipated recovery in the crypto market, which is expected to significantly enhance overall company performance.
See More
