Is Nvidia (NVDA) Boosting Demand for Its Own Chips?
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 19 2025
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Source: TipRanks
Nvidia's Major AI Investments: Nvidia has announced a significant investment of up to $10 billion in AI startup Anthropic, alongside Microsoft's $5 billion investment, as part of a deal that includes Anthropic purchasing $30 billion in computing power from Microsoft’s Azure cloud services.
Growing AI Deal Activity: In 2025 alone, Nvidia has completed 59 AI-related deals totaling $23.7 billion, surpassing its total investments of $22.8 billion in 2024, and has invested approximately $53 billion across 170 AI deals since 2020.
Concerns Over Market Impact: Analysts express concerns that Nvidia's funding of companies that also purchase its chips may inflate demand, raising fears of an AI-driven market bubble, although CEO Jensen Huang defends the strategy as a smart investment in the future of AI.
Analyst Ratings and Stock Potential: Nvidia stock has a Strong Buy consensus rating from analysts, with 37 Buys, one Hold, and one Sell, and an average price target of $243.09 per share, indicating a potential upside of 30.7%.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 264.97 USD with a low forecast of 200.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 192.510
Low
200.00
Averages
264.97
High
352.00
Current: 192.510
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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