Three Tech Giants Set to Benefit from AI Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy NVDA?
Source: NASDAQ.COM
- Nvidia's Market Leadership: As a leading designer of AI processors, Nvidia is poised to benefit from the increasing spending on AI data center infrastructure, particularly as Alphabet and Meta ramp up capital expenditures to $185 billion and $135 billion respectively, driving demand for Nvidia's processors.
- Alphabet's Gemini Success: Alphabet's Gemini chatbot now boasts 750 million monthly active users, a 67% increase from nine months ago, and has secured a partnership with Apple to make Gemini the underlying AI model for an upcoming version of Siri, which is expected to generate billions in revenue for Alphabet.
- Taiwan Semiconductor's Market Share: Taiwan Semiconductor holds a 70% share of the global semiconductor manufacturing market, with revenue projected to increase by 30% to $122.4 billion by 2025, and diluted earnings expected to rise by 47% to $10.65 per ADR, showcasing its strong performance amid surging AI processor demand.
- Long-Term Competitive Advantage: Research from Morningstar indicates that TSMC's organic growth driven by major tech trends could last for decades, with management confidently forecasting a 30% increase in sales this year, further solidifying its market position.
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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.
Cohere Achieves $240M Annual Revenue in 2025, Surpassing Targets
- Significant Revenue Growth: Cohere achieved approximately $240 million in annual recurring revenue in 2025, surpassing its $200 million target, indicating strong market demand that is expected to further enhance the company's market share in the AI sector.
- 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.
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Tech Giants Mask Underlying Market Risks
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- Financial Performance Analysis: These companies report strong revenue growth in their financial statements; however, market uncertainties could impact future profitability, necessitating investor attention to shifts in macroeconomic indicators.
- Investor Strategy Adjustments: In light of market risks, investors may need to reassess their portfolios, considering a more balanced allocation between tech stocks and other sectors to mitigate potential losses.
- Industry Outlook: Although the performance of tech giants may mask underlying market issues, the long-term growth of the sector still relies on innovation and the stability of market demand.
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- Government Investment Support: In early 2026, the Trump administration announced a $1.6 billion deal to acquire a 10% stake in USA Rare Earth, with funds allocated for developing the Round Top mine and a magnet manufacturing facility in Oklahoma, highlighting government commitment to the project.
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- Nvidia's Market Leadership: As a leading designer of AI processors, Nvidia is poised to benefit from the increasing spending on AI data center infrastructure, particularly as Alphabet and Meta ramp up capital expenditures to $185 billion and $135 billion respectively, driving demand for Nvidia's processors.
- Alphabet's Gemini Success: Alphabet's Gemini chatbot now boasts 750 million monthly active users, a 67% increase from nine months ago, and has secured a partnership with Apple to make Gemini the underlying AI model for an upcoming version of Siri, which is expected to generate billions in revenue for Alphabet.
- Taiwan Semiconductor's Market Share: Taiwan Semiconductor holds a 70% share of the global semiconductor manufacturing market, with revenue projected to increase by 30% to $122.4 billion by 2025, and diluted earnings expected to rise by 47% to $10.65 per ADR, showcasing its strong performance amid surging AI processor demand.
- Long-Term Competitive Advantage: Research from Morningstar indicates that TSMC's organic growth driven by major tech trends could last for decades, with management confidently forecasting a 30% increase in sales this year, further solidifying its market position.
See More
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- Nvidia's Market Position: As the leading designer of AI processors, Nvidia's stock remains attractive despite bubble concerns, with a current P/E ratio of 47, slightly above the tech sector average of 43, indicating strong demand amid increasing AI infrastructure spending.
- Alphabet's AI Success: Alphabet's Gemini chatbot has reached 750 million monthly active users, a 67% increase in nine months, and its collaboration with Apple to integrate Gemini into Siri is expected to generate billions in revenue, further boosting its cloud computing growth.
- Taiwan Semiconductor's Competitive Edge: Holding a 70% market share in the global semiconductor market, TSMC's advanced chip manufacturing and high yield rates position it well, with projected revenue growth of 30% to $122.4 billion by 2025, reflecting strong performance amid surging AI processor demand.
- Optimistic Industry Outlook: All three companies excel in the AI sector, with reasonable P/E ratios of 47, 30, and 34 for Nvidia, Alphabet, and TSMC respectively, suggesting that investors can expect substantial returns over the coming years.
See More
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- Increased Market Volatility: Last week, stocks in software, real estate, financial services, and logistics faced selling pressure due to concerns over AI-related disruptions, with the Nasdaq Composite falling 0.2% and a weekly loss of 2.1%, indicating market sensitivity to AI impacts.
- Consumer Spending Data Focus: This week's highlight will be the Personal Consumption Expenditures (PCE) report on Friday, which will provide insights into consumer spending in December and inflation trends, especially following last week's unexpected slowdown in the Consumer Price Index (CPI).
- Corporate Earnings in Spotlight: Walmart (WMT) is set to release its fourth-quarter earnings on Thursday, marking the first report under new CEO John Furner, making it a key indicator of consumer spending that the market is eagerly anticipating.
- Ongoing AI Impact: As AI tools' potential effects intensify across various sectors, software stocks like Salesforce (CRM) and ServiceNow (NOW) have seen significant declines, reflecting the market's heightened vigilance regarding AI disruptions, necessitating close monitoring of future industry developments.
See More
Cohere Achieves $240M Annual Revenue in 2025, Surpassing Targets
- Significant Revenue Growth: Cohere achieved approximately $240 million in annual recurring revenue in 2025, surpassing its $200 million target, indicating strong market demand that is expected to further enhance the company's market share in the AI sector.
- 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
Tech Giants Mask Underlying Market Risks
- Market Risk Concerns: While tech giants like Apple, Google, Amazon, Meta, and Nvidia demonstrate some market resilience, the overall market remains highly dangerous, prompting investors to stay vigilant against potential volatility.
- Financial Performance Analysis: These companies report strong revenue growth in their financial statements; however, market uncertainties could impact future profitability, necessitating investor attention to shifts in macroeconomic indicators.
- Investor Strategy Adjustments: In light of market risks, investors may need to reassess their portfolios, considering a more balanced allocation between tech stocks and other sectors to mitigate potential losses.
- Industry Outlook: Although the performance of tech giants may mask underlying market issues, the long-term growth of the sector still relies on innovation and the stability of market demand.
See More
USA Rare Earth Aims to Revolutionize Magnet Manufacturing
- Rare Earth Resource Advantage: USA Rare Earth controls the Round Top Mountain in Texas, which contains 15 of the 17 rare-earth metals and significant lithium deposits, and if successful, this could greatly enhance U.S. self-sufficiency in the rare-earth supply chain.
- Government Investment Support: In early 2026, the Trump administration announced a $1.6 billion deal to acquire a 10% stake in USA Rare Earth, with funds allocated for developing the Round Top mine and a magnet manufacturing facility in Oklahoma, highlighting government commitment to the project.
- Market Competition Risks: Despite federal backing, USA Rare Earth faces high costs associated with building its mine and manufacturing arm, along with fierce competition from China, which remains the dominant global supplier of permanent magnets, adding uncertainty to the project.
- Cautious Investment Advice: While USA Rare Earth has long-term potential, analysts suggest conservative investors consider metal exchange-traded funds (ETFs) to mitigate risks and achieve more stable returns, given the numerous unknowns surrounding the company’s future cash flow.
See More
Three Tech Giants Set to Benefit from AI Surge
- Nvidia's Market Leadership: As a leading designer of AI processors, Nvidia is poised to benefit from the increasing spending on AI data center infrastructure, particularly as Alphabet and Meta ramp up capital expenditures to $185 billion and $135 billion respectively, driving demand for Nvidia's processors.
- Alphabet's Gemini Success: Alphabet's Gemini chatbot now boasts 750 million monthly active users, a 67% increase from nine months ago, and has secured a partnership with Apple to make Gemini the underlying AI model for an upcoming version of Siri, which is expected to generate billions in revenue for Alphabet.
- Taiwan Semiconductor's Market Share: Taiwan Semiconductor holds a 70% share of the global semiconductor manufacturing market, with revenue projected to increase by 30% to $122.4 billion by 2025, and diluted earnings expected to rise by 47% to $10.65 per ADR, showcasing its strong performance amid surging AI processor demand.
- Long-Term Competitive Advantage: Research from Morningstar indicates that TSMC's organic growth driven by major tech trends could last for decades, with management confidently forecasting a 30% increase in sales this year, further solidifying its market position.
See More
Three Tech Stocks Worth Holding Long-Term
- Nvidia's Market Position: As the leading designer of AI processors, Nvidia's stock remains attractive despite bubble concerns, with a current P/E ratio of 47, slightly above the tech sector average of 43, indicating strong demand amid increasing AI infrastructure spending.
- Alphabet's AI Success: Alphabet's Gemini chatbot has reached 750 million monthly active users, a 67% increase in nine months, and its collaboration with Apple to integrate Gemini into Siri is expected to generate billions in revenue, further boosting its cloud computing growth.
- Taiwan Semiconductor's Competitive Edge: Holding a 70% market share in the global semiconductor market, TSMC's advanced chip manufacturing and high yield rates position it well, with projected revenue growth of 30% to $122.4 billion by 2025, reflecting strong performance amid surging AI processor demand.
- Optimistic Industry Outlook: All three companies excel in the AI sector, with reasonable P/E ratios of 47, 30, and 34 for Nvidia, Alphabet, and TSMC respectively, suggesting that investors can expect substantial returns over the coming years.
See More
AI Turbulence Impacts Market Performance
- Increased Market Volatility: Last week, stocks in software, real estate, financial services, and logistics faced selling pressure due to concerns over AI-related disruptions, with the Nasdaq Composite falling 0.2% and a weekly loss of 2.1%, indicating market sensitivity to AI impacts.
- Consumer Spending Data Focus: This week's highlight will be the Personal Consumption Expenditures (PCE) report on Friday, which will provide insights into consumer spending in December and inflation trends, especially following last week's unexpected slowdown in the Consumer Price Index (CPI).
- Corporate Earnings in Spotlight: Walmart (WMT) is set to release its fourth-quarter earnings on Thursday, marking the first report under new CEO John Furner, making it a key indicator of consumer spending that the market is eagerly anticipating.
- Ongoing AI Impact: As AI tools' potential effects intensify across various sectors, software stocks like Salesforce (CRM) and ServiceNow (NOW) have seen significant declines, reflecting the market's heightened vigilance regarding AI disruptions, necessitating close monitoring of future industry developments.
See More
