Top Four AI Beneficiary Stocks to Buy Now
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 07 2026
0mins
Should l Buy NVDA?
Source: Fool
- Nvidia's Market Dominance: Nvidia leads the AI sector with its GPUs, crucial for training and running AI models, and is projected to achieve a 52% growth in fiscal 2027; despite concerns over an AI bubble, its robust long-term growth potential makes it an ideal investment choice.
- Broadcom's ASIC Innovation: Broadcom is challenging Nvidia's dominance by designing application-specific integrated circuits (ASICs), with AI semiconductor revenue expected to double year-over-year in Q1; while these chips won't fully replace GPUs, they offer superior performance for specific workloads, potentially capturing some of Nvidia's market share.
- TSMC's Key Role: As a leading chip foundry, TSMC's unmatched manufacturing capabilities position it well in the AI space, with projected growth rates of 31% and 22% for 2023 and 2024 respectively; as AI spending continues to rise, TSMC's stock performance is worth monitoring.
- Microsoft's Cloud Growth: Microsoft's Azure cloud platform saw a 39% year-over-year revenue increase in Q2 of fiscal 2026; although the market reacted negatively to some quarterly results, its $625 billion backlog indicates significant future growth potential, making the current stock price dip a buying opportunity.
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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: 183.040
Low
200.00
Averages
264.97
High
352.00
Current: 183.040
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.
Together AI Pursues $1B Funding Round Amid Rapid Growth
- Funding Target: Together AI is pursuing a $1 billion funding round aimed at supporting its infrastructure expansion to accommodate a rapidly growing AI ecosystem, with the company currently valued at $7.5 billion.
- Revenue Growth: Since its founding in 2022, Together AI has achieved an annualized revenue of approximately $1 billion, nearly tripling in less than a year, showcasing its strong performance in the AI cloud market.
- Infrastructure Expansion: The company has secured 200 MW of power capacity and is deploying optimized clusters of NVIDIA Blackwell GPUs across multiple North American data centers to enhance its service capabilities, further solidifying its position as a leading AI cloud provider.
- Partnerships: A new partnership with Hypertecto will co-build a cluster of 36,000 NVIDIA GB200 NVL72 GPUs, further enhancing Together AI's competitive edge and ensuring its leadership in the rapidly evolving AI sector.
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- Nvidia's Strong Earnings: Nvidia reported $68.1 billion in revenue for Q4 FY2025, a 73% year-over-year increase, with data center revenue at $62.3 billion, up 22% sequentially, indicating robust demand for AI chips, and management expects Q1 FY2027 revenue to reach $78 billion, solidifying its market leadership.
- Robust Cash Flow: Nvidia generated $97 billion in free cash flow in FY2026, providing the flexibility to aggressively invest in next-generation systems, enhancing its technological competitiveness and driving long-term growth.
- TSMC's Market Leadership: TSMC achieved $33.1 billion in revenue for Q4 FY2025, a 25.6% year-over-year increase, with high-performance computing (HPC) accounting for 58% of revenue, indicating strong demand in AI and HPC, and management projects Q1 revenue of $34.6 to $35.8 billion, reflecting a 38% year-over-year growth.
- Technological Edge: TSMC's advanced process technologies (7nm and below) comprised 74% of wafer revenue in FY2025, and AI accelerator revenues are expected to grow at a mid-to-high 50% CAGR from 2024 to 2029, showcasing strong long-term growth potential.
See More
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- Global Sales Restrictions: U.S. officials have drafted regulations requiring companies to obtain U.S. approval for nearly all exports of AI accelerators developed by Nvidia and AMD, expanding existing restrictions to about 40 countries, which could disrupt global AI chip supply chains.
- Complex Approval Process: The proposed rules mandate that companies seek permission from the U.S. Commerce Department to purchase AI chips, with the approval process varying based on the required computing power; exports of over 200,000 Nvidia GB300 chips will necessitate host government involvement, increasing compliance costs for businesses.
- Impact on China: This initiative aims to curb China's capabilities in AI chip manufacturing; while the Trump administration previously allowed Nvidia to sell certain chips to China, the new regulations may further restrict Chinese firms' access to AI chips, potentially hindering their technological advancements.
- Policy Uncertainty: The framework proposed by the Trump team is not finalized, and input from federal agencies may lead to modifications or shelving of the draft, creating uncertainty that could affect investor confidence in related companies, particularly Nvidia and AMD.
See More
The Future of Financial Services: The Rise of AI and Stablecoins
- Accelerated AI Adoption: According to NVIDIA, 65% of financial services organizations are actively using AI, a 20% increase from last year, indicating a shift from back-office operations to customer experience and trading management, which is expected to significantly enhance customer satisfaction and revenue.
- Opportunities and Challenges of Stablecoins: As stablecoins move toward normalization, banks, as primary customer-facing institutions, face the responsibility of building trust and must adapt quickly to avoid falling behind in competition, necessitating comprehensive adoption strategies to support stablecoin transactions.
- Convergence of Digital Assets and Traditional Banking: Companies like Circle and Ripple are pursuing U.S. bank charters, driving deeper convergence between traditional banking and digital assets, prompting large banks like JPMorgan Chase to explore crypto trading for institutional clients, although most banks are expected to start with low-risk back-office use cases.
- Intensifying Competition and Innovation Demand: With U.S. household debt reaching $18.8 trillion in Q4 2025, consumers are becoming more savvy about financial products, forcing banks to differentiate themselves through innovative offerings and personalized experiences to navigate the increasingly competitive market landscape.
See More
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- Earnings Beat: Kroger reported adjusted earnings of $1.28 per share for Q4 2025, surpassing analyst expectations of $1.20, demonstrating resilience in a competitive retail environment.
- Sales Slightly Down: With quarterly sales at $34.7 billion, slightly below the forecast of $35 billion, the 1.2% year-over-year growth was impacted by falling fuel costs, reflecting challenges in the market landscape.
- Significant Operating Profit Increase: Kroger's operating profit soared by 36.6%, while GAAP earnings per share jumped 50% to $1.35, indicating substantial progress in cost control and operational efficiency.
- Cautious Future Outlook: Management anticipates sales growth of only 1% to 2% in 2026, although earnings are expected to rebound to between $5.10 and $5.30 per share, leaving market confidence in sustained growth under scrutiny.
See More
Oil Prices Surge Amid Supply Concerns and Inflation Fears
- Oil Price Surge: West Texas Intermediate crude oil prices have surged past $80 per barrel, reaching their highest level since July 2024, primarily due to concerns over supply disruptions and ongoing conflict, which could lead to increased living costs for consumers.
- Inflationary Pressures: The rise in oil prices, coupled with higher benchmark 10-year Treasury yields, creates a negative impact on the stock market, undermining investor confidence in future economic growth and potentially leading to increased market volatility.
- Trump Administration Intervention: The Trump administration is drafting a plan that may tighten control over AI chip exports; while this does not constitute an export ban, it could still affect companies like Nvidia, adding uncertainty to the industry.
- Job Data Expectations: Economic data will be in focus, with economists forecasting a 55,000 increase in non-farm payrolls for February, a 3.7% rise in average hourly earnings, and an unemployment rate steady at 4.3%, which will significantly influence market sentiment.
See More
Together AI Pursues $1B Funding Round Amid Rapid Growth
- Funding Target: Together AI is pursuing a $1 billion funding round aimed at supporting its infrastructure expansion to accommodate a rapidly growing AI ecosystem, with the company currently valued at $7.5 billion.
- Revenue Growth: Since its founding in 2022, Together AI has achieved an annualized revenue of approximately $1 billion, nearly tripling in less than a year, showcasing its strong performance in the AI cloud market.
- Infrastructure Expansion: The company has secured 200 MW of power capacity and is deploying optimized clusters of NVIDIA Blackwell GPUs across multiple North American data centers to enhance its service capabilities, further solidifying its position as a leading AI cloud provider.
- Partnerships: A new partnership with Hypertecto will co-build a cluster of 36,000 NVIDIA GB200 NVL72 GPUs, further enhancing Together AI's competitive edge and ensuring its leadership in the rapidly evolving AI sector.
See More
Nvidia and TSMC: AI-Driven Growth Opportunities
- Nvidia's Strong Earnings: Nvidia reported $68.1 billion in revenue for Q4 FY2025, a 73% year-over-year increase, with data center revenue at $62.3 billion, up 22% sequentially, indicating robust demand for AI chips, and management expects Q1 FY2027 revenue to reach $78 billion, solidifying its market leadership.
- Robust Cash Flow: Nvidia generated $97 billion in free cash flow in FY2026, providing the flexibility to aggressively invest in next-generation systems, enhancing its technological competitiveness and driving long-term growth.
- TSMC's Market Leadership: TSMC achieved $33.1 billion in revenue for Q4 FY2025, a 25.6% year-over-year increase, with high-performance computing (HPC) accounting for 58% of revenue, indicating strong demand in AI and HPC, and management projects Q1 revenue of $34.6 to $35.8 billion, reflecting a 38% year-over-year growth.
- Technological Edge: TSMC's advanced process technologies (7nm and below) comprised 74% of wafer revenue in FY2025, and AI accelerator revenues are expected to grow at a mid-to-high 50% CAGR from 2024 to 2029, showcasing strong long-term growth potential.
See More
U.S. Proposes Global Restrictions on AI Chip Sales
- Global Sales Restrictions: U.S. officials have drafted regulations requiring companies to obtain U.S. approval for nearly all exports of AI accelerators developed by Nvidia and AMD, expanding existing restrictions to about 40 countries, which could disrupt global AI chip supply chains.
- Complex Approval Process: The proposed rules mandate that companies seek permission from the U.S. Commerce Department to purchase AI chips, with the approval process varying based on the required computing power; exports of over 200,000 Nvidia GB300 chips will necessitate host government involvement, increasing compliance costs for businesses.
- Impact on China: This initiative aims to curb China's capabilities in AI chip manufacturing; while the Trump administration previously allowed Nvidia to sell certain chips to China, the new regulations may further restrict Chinese firms' access to AI chips, potentially hindering their technological advancements.
- Policy Uncertainty: The framework proposed by the Trump team is not finalized, and input from federal agencies may lead to modifications or shelving of the draft, creating uncertainty that could affect investor confidence in related companies, particularly Nvidia and AMD.
See More
The Future of Financial Services: The Rise of AI and Stablecoins
- Accelerated AI Adoption: According to NVIDIA, 65% of financial services organizations are actively using AI, a 20% increase from last year, indicating a shift from back-office operations to customer experience and trading management, which is expected to significantly enhance customer satisfaction and revenue.
- Opportunities and Challenges of Stablecoins: As stablecoins move toward normalization, banks, as primary customer-facing institutions, face the responsibility of building trust and must adapt quickly to avoid falling behind in competition, necessitating comprehensive adoption strategies to support stablecoin transactions.
- Convergence of Digital Assets and Traditional Banking: Companies like Circle and Ripple are pursuing U.S. bank charters, driving deeper convergence between traditional banking and digital assets, prompting large banks like JPMorgan Chase to explore crypto trading for institutional clients, although most banks are expected to start with low-risk back-office use cases.
- Intensifying Competition and Innovation Demand: With U.S. household debt reaching $18.8 trillion in Q4 2025, consumers are becoming more savvy about financial products, forcing banks to differentiate themselves through innovative offerings and personalized experiences to navigate the increasingly competitive market landscape.
See More
Kroger's Q4 Earnings Beat Expectations
- Earnings Beat: Kroger reported adjusted earnings of $1.28 per share for Q4 2025, surpassing analyst expectations of $1.20, demonstrating resilience in a competitive retail environment.
- Sales Slightly Down: With quarterly sales at $34.7 billion, slightly below the forecast of $35 billion, the 1.2% year-over-year growth was impacted by falling fuel costs, reflecting challenges in the market landscape.
- Significant Operating Profit Increase: Kroger's operating profit soared by 36.6%, while GAAP earnings per share jumped 50% to $1.35, indicating substantial progress in cost control and operational efficiency.
- Cautious Future Outlook: Management anticipates sales growth of only 1% to 2% in 2026, although earnings are expected to rebound to between $5.10 and $5.30 per share, leaving market confidence in sustained growth under scrutiny.
See More
Oil Prices Surge Amid Supply Concerns and Inflation Fears
- Oil Price Surge: West Texas Intermediate crude oil prices have surged past $80 per barrel, reaching their highest level since July 2024, primarily due to concerns over supply disruptions and ongoing conflict, which could lead to increased living costs for consumers.
- Inflationary Pressures: The rise in oil prices, coupled with higher benchmark 10-year Treasury yields, creates a negative impact on the stock market, undermining investor confidence in future economic growth and potentially leading to increased market volatility.
- Trump Administration Intervention: The Trump administration is drafting a plan that may tighten control over AI chip exports; while this does not constitute an export ban, it could still affect companies like Nvidia, adding uncertainty to the industry.
- Job Data Expectations: Economic data will be in focus, with economists forecasting a 55,000 increase in non-farm payrolls for February, a 3.7% rise in average hourly earnings, and an unemployment rate steady at 4.3%, which will significantly influence market sentiment.
See More
