Three AI Giants Present Investment Opportunities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy NVDA?
Source: Fool
- Nvidia's Market Dominance: Nvidia (NVDA) reported record revenue of $57 billion in Q3 FY2026, reflecting over 60% year-over-year growth, with a forecast of $65 billion for Q4, indicating strong demand and growth potential in the AI chip market.
- Micron's Strategic Shift: Micron Technology (MU) achieved a 57% year-over-year growth in Q1 FY2026 and plans to exit its consumer business to focus on AI storage solutions, which is expected to yield higher profits and long-term growth.
- Alphabet's Diversified Revenue: Alphabet's (GOOGL) search revenue reached $95.9 billion in Q4 FY2024, up 17% year-over-year, while its cloud computing segment grew by 48%, showcasing its success in AI investments and future growth potential.
- Overall AI Industry Growth: As AI technology becomes more prevalent, companies like Nvidia, Micron, and Alphabet are enhancing their market performance, which is expected to drive industry growth and attract more investor interest.
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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: 182.810
Low
200.00
Averages
264.97
High
352.00
Current: 182.810
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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- Increased Capital Expenditures: Major tech companies plan to further increase capital expenditures in 2026, primarily for AI infrastructure, which will directly boost Nvidia's GPU sales and solidify its market dominance.
- Surge in Product Demand: CEO Jensen Huang noted that demand for the Blackwell platform data center products is “off the charts,” indicating rapid growth in market demand for Nvidia's AI computing products.
- Record of Exceeding Estimates: Nvidia has surpassed Wall Street's earnings expectations in 20 out of the last 22 quarters, demonstrating strong performance stability and management's clear visibility into future results, with expectations to continue this trend.
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- Positive Market Reaction: Following the announcement, both Nvidia and Meta saw slight increases in their pre-market stock prices, indicating market confidence in their AI expansion efforts, which could lay the groundwork for future growth.
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- Optimistic Earnings Forecast: Nvidia anticipates fourth-quarter revenue for fiscal 2026 to reach $65 billion, representing a 65% year-over-year growth, highlighting the company's strong demand in the AI chip market and its leadership position.
- Increased Capital Expenditures: Major tech companies plan to further increase capital expenditures in 2026, primarily for AI infrastructure, which will directly boost Nvidia's GPU sales and solidify its market dominance.
- Surge in Product Demand: CEO Jensen Huang noted that demand for the Blackwell platform data center products is “off the charts,” indicating rapid growth in market demand for Nvidia's AI computing products.
- Record of Exceeding Estimates: Nvidia has surpassed Wall Street's earnings expectations in 20 out of the last 22 quarters, demonstrating strong performance stability and management's clear visibility into future results, with expectations to continue this trend.
See More
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SoftBank Group Corp's Decision: SoftBank Group Corp has decided to dissolve its share stake in Nvidia Corp, indicating a strategic shift in its investment portfolio.
SEC Filing: The dissolution of the stake was formally communicated through a filing with the Securities and Exchange Commission (SEC), highlighting regulatory compliance in the process.
See More
Amazon Stock Rebounds, Market Sentiment Improves
- Amazon Stock Rebound: Amazon shares rose over 1% yesterday, breaking a nine-day losing streak that saw an 18% drop and over $450 billion in market cap erased, indicating market skepticism regarding its future capital expenditures.
- Investor Movements: Berkshire Hathaway disclosed in a regulatory filing that it reduced its stake in Apple in Q4 while establishing a position in the New York Times, which saw its shares jump over 3% in after-hours trading, reflecting renewed interest in media stocks.
- Warner Bros. Deal Progress: Warner Bros. Discovery announced the restart of deal talks with Paramount, facilitated by a seven-day waiver from Netflix, aimed at addressing deficiencies in Paramount's offer, potentially impacting M&A dynamics in the media sector.
- Meta and Nvidia Partnership Expansion: Meta announced an expansion of its deal with Nvidia to utilize millions of AI chips for data center build-out, although financial terms were not disclosed, this move underscores the ongoing investment and collaboration potential among major tech companies in the AI space.
See More
Meta and Nvidia Expand Strategic Partnership for AI Infrastructure
- Strategic Partnership Expansion: Meta and Nvidia announced an expansion of their partnership to utilize millions of AI chips in the social media giant's data centers, aiming to enhance data processing capabilities and optimize cloud and AI infrastructure.
- Data Center Development: Meta will construct hyperscale data centers using Nvidia's CPUs and millions of Blackwell and Rubin GPUs, focusing on training and inference, which is expected to significantly improve computational efficiency and lower total cost of ownership.
- Market Reaction: Despite Cramer's confidence in Nvidia and Meta, Meta's stock has declined 3% year-to-date while Nvidia's stock is down 1%, reflecting the overall bearish sentiment towards software stocks in the market.
- Software Stock Turmoil: In 2026, U.S. software stocks have experienced a decline of over 24%, with analysts noting that a significant valuation derating is a primary cause, as investors reassess their portfolios in response to market shifts.
See More
Nvidia and Meta Sign Major AI Partnership
- AI Partnership Agreement: Nvidia and Meta have signed a deal for Meta to utilize millions of Nvidia's Blackwell chips and networking technology in its data centers, which, while undisclosed in value, is expected to significantly enhance Meta's competitive edge in the AI sector.
- Positive Market Reaction: Following the announcement, both Nvidia and Meta saw slight increases in their pre-market stock prices, indicating market confidence in their AI expansion efforts, which could lay the groundwork for future growth.
- Optimistic Industry Outlook: Microsoft forecasts global AI spending to reach $650 billion by 2026, a 60% increase year-over-year, highlighting the rapid expansion of the AI market, positioning Nvidia and Meta favorably within this trend.
- CEO Insights: Nvidia's CEO Jensen Huang emphasized deep collaboration with Meta, while Meta's Mark Zuckerberg expressed aspirations to deliver “personal superintelligence” to users worldwide, showcasing the ambitious vision both companies have for the future of AI.
See More
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- Nvidia Partnership Expansion: Meta's expansion of its partnership with Nvidia to utilize millions of AI chips for data center development led to a 2% increase in Nvidia's stock, reflecting strong confidence in AI demand.
- New York Times Stock Rise: The New York Times Company saw a 3% stock increase after Warren Buffett's Berkshire Hathaway disclosed a new position, indicating market optimism about its future growth potential.
- Palo Alto Networks Warning: Shares of Palo Alto Networks fell 6% after the company issued a weak earnings forecast, projecting adjusted earnings of only 78 to 80 cents per share for the third quarter, significantly below the analyst consensus of 92 cents.
- Analog Devices Earnings Beat: Analog Devices reported earnings of $2.46 per share, exceeding market expectations, resulting in a 9% stock increase, showcasing its strong performance and growth potential in the semiconductor market.
See More
