Nvidia's Strong Position in AI Market Reaffirmed by Investor Optimism and Strategic Investments

NVIDIA Stock Is A 'Buy' Amid Strong AI Investments By Hyperscalers, Predicts Top Investor - Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL)

Nvidia Corporation NVDA remains strong, with shares recovering double digits a month after the DeepSeek-led selloff. What Happened: Renowned investor Michael Del Monte is optimistic about Nvidia's growth trajectory. He stated that no hyperscaler has reduced its capital outlay for computer and data centers, which bodes well for Nvidia, reported Market Insider. Del Monte also highlighted the industry's current focus on model optimization, which he expects will encourage domestic AI developers to speed up growth and sustain their leadership in AI. Del Monte further emphasizes the need for more AI data centers to meet enterprise demand. He predicts that AI capital expenditures will increase by nearly 40% year-over-year to reach $313 billion this year, with growth expected to stabilize at these levels in subsequent years. The investor stated that the industry is going through the "model optimization" stage. "I expect that the emergence of these models will ignite the necessity of domestic AI developers to accelerate growth and development to maintain their leadership in AI," Del Monte explained. Looking ahead, Del Monte anticipates a strong performance from Nvidia's fourth-quarter earnings, scheduled for release on February 26. He rates Nvidia stock as a Buy. "Nvidia's q4'25 earnings have a strong potential to outperform driven by strong data center growth and hyperscalers' continued investment in compute capacity," added the investor. SEE ALSO: Top 2 Energy Stocks That May Explode This Month Why It Matters: Investors initially feared that a decrease in capex spending on AI infrastructure would impact the AI giant's revenues and margins. However, these fears appear to be unfounded as major tech companies continue to invest heavily in AI infrastructure. For instance, Alphabet GOOGL GOOG and Meta Platforms META have announced a capital outlay of $75 billion and $60 to $65 billion respectively in 2025. The bullish sentiment surrounding Nvidia is not isolated. UBS maintained its bullish stance and noted that Nvidia stands strong against other AI stocks. Nvidia should deliver 'solid' results amid 'mixed' sentiment, stated UBS. Furthermore, Wedbush analyst Dan Ives on CNBC's Squawk Street reaffirmed his confidence in Nvidia, describing it as a "table pounder" and forecasting that its market cap will eventually reach $5 trillion. This context underscores the significance of Del Monte's predictions and the potential growth trajectory for Nvidia. READ MORE: Mark Cuban Once Said 'The Stock Market Is for Suckers,' Calling 'Buy And Hold' the Second Most Misleading Slogan Ever -- 'Right After Rinse And Repeat' Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. GOOGAlphabet Inc$186.96-0.09%Overview Rating:Good62.5%Technicals Analysis1000100Financials Analysis400100WatchlistOverviewGOOGLAlphabet Inc$185.13-0.08%METAMeta Platforms Inc$700.71-0.43%NVDANVIDIA Corp$139.340.08%Market News and Data brought to you by Benzinga APIs

Why buying Nvidia stock can be smart nowadays

After soaring more than 800% over the last two years, shares of Nvidia (NVDA -0.12%) have experienced a downturn in early 2025 following China's DeepSeek announcement that it developed an advanced large language model at a low cost. This raised questions about the demand for Nvidia's graphics processing units (GPUs), which account for over 80% of its total revenue. In response to the DeepSeek news, Nvidia's top customers have reported earnings that indicate a rising demand for AI chips. Cloud service providers generated approximately half of Nvidia's $30 billion in data center revenue for the fiscal third quarter ending in October. Amazon, as the leading cloud provider, is significantly investing in technology, with capital expenditures increasing to $83 billion in 2024 and plans to reach around $100 billion in 2025, primarily directed toward technology infrastructure for cloud and AI services. Amazon utilizes Nvidia's H100 GPU for generative AI workloads within Amazon Web Services and is expected to adopt Nvidia's Blackwell computing platform launching this year. Meta Platforms is another major Nvidia customer that aims to boost its capital spending, with plans to raise its budget to between $60 billion and $65 billion in 2025, up from $37 billion last year. Meta has been deploying Nvidia's H100 GPUs extensively, training its Llama 4 models on a large cluster of 100,000 GPUs. Meta also projects substantial long-term investments in AI infrastructure, indicating a strong outlook for Nvidia, which holds an estimated 70% to 95% market share of AI chips. Nvidia's data center revenue growth has overshadowed other significant business opportunities. The company's gaming segment, for instance, is recovering, with sales of gaming GPUs increasing from $1.5 billion in the third quarter of fiscal 2023 to $3.2 billion in the same quarter of 2025, representing an annual run rate exceeding $12 billion. Additionally, Nvidia achieved record revenue in its automotive segment, which includes the Drive computing platform for training autonomous vehicles. Automotive revenue rose from $251 million in the third quarter of 2023 to $449 million in the same quarter two years later. As the adoption of autonomous driving technology increases, this segment could develop into a multibillion-dollar opportunity. Nvidia has previously stated that its total addressable market is $1 trillion, with the potential for growth as the company explores new markets for its technology. At the J.P. Morgan Healthcare Conference in January, Nvidia highlighted that the rising number of interactions in health services will create new avenues in robotics and AI solutions where its GPUs could play a crucial role. The emergence of DeepSeek's cost-effective large language model is unlikely to impede Nvidia's long-term prospects, as it may drive faster innovation in AI, favoring the leading AI chip supplier. The recent decline in Nvidia's stock has reduced its valuation to a forward price-to-earnings multiple of 30, which analysts consider a potential bargain given expectations of a 51% revenue and earnings increase this year. Moreover, Microsoft recently unveiled a new chip, suggesting that quantum computing is becoming achievable in the near term rather than the distant future, alongside predictions from Google and IBM about imminent changes in computing technology. Quantum computing is expected to facilitate calculations that would take current systems millions of years, potentially accelerating advancements in fields such as medicine and chemistry. As these developments unfold, Nvidia is positioned to play a key role in integrating AI and quantum computing technologies. Disclaimer: The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities.

2 Reasons to Buy Nvidia Stock in the Wake of DeepSeek | The Motley Fool

After soaring more than 800% over the last two years, shares of Nvidia (NVDA -0.12%) have stumbled out of the gate in 2025. Sentiment worsened after China's DeepSeek claimed it built an advanced large language model at a very low cost. This raised uncertainty about the demand for Nvidia's graphics processing units (GPUs) used for AI research. Its data center GPU business comprises over 80% of its total revenue. However, since the DeepSeek news surfaced in January, some of Nvidia's top customers have reported earnings results and provided their outlook for technology investment this year, and it points to a growing appetite for AI chips. Here are two reasons to buy Nvidia stock on the dip. Cloud service providers comprised about half of Nvidia's $30 billion in data center revenue in the company's fiscal third quarter ending in October. The leading cloud provider is Amazon, and it's not slowing down investment in technology. Amazon's capital expenditures accelerated to $83 billion in 2024. It plans to spend roughly $100 billion in 2025, with the majority of that going toward technology infrastructure to support demand in cloud and artificial intelligence (AI) services. The company has used Nvidia's H100 GPU for powering generative AI workloads in Amazon Web Services. Amazon is also expected to be an early adopter of Nvidia's Blackwell computing platform that is being launched this year. Meta Platforms is another Nvidia customer planning to increase capital spending this year. Meta has trained its Llama 4 models on a massive cluster of 100,000 Nvidia H100 GPUs. It plans to increase spending to between $60 billion and $65 billion this year, up from $37 billion last year. Meta expects to invest hundreds of billions of dollars in AI infrastructure over the long term. It plans to significantly increase the number of GPUs in deployment this year, and that is good news for Nvidia, which controls an estimated 70% to 95% share of the AI chip market. The growth from Nvidia's data center business has taken the spotlight off other opportunities, which are quite substantial. For example, the company's gaming business is starting to recover from a slump. Sales of gaming GPUs have increased from $1.5 billion in the third quarter of fiscal 2023 to $3.2 billion in the 2025 third quarter. That's an annual run rate of over $12 billion for Nvidia's gaming segment. Nvidia also reported record revenue last quarter for its automotive segment, which includes sales of its Drive computing platform for training autonomous vehicles. The company has partnerships with several car companies, including electric vehicle makers BYD and Rivian. Automotive revenue has increased from $251 million in the third quarter of 2023 to $449 million in the same quarter two years later. As autonomous driving becomes more widely adopted in the coming decades, this could blossom into a multibillion-dollar opportunity. The company has previously pegged its total addressable market at $1 trillion, but this figure could grow over time since it is still finding new markets for its technology. At the J.P. Morgan Healthcare Conference in January, Nvidia said that the growing number of interactions in health services is going to create more opportunities in the field of robotics and AI agents, and its GPUs could play a pivotal role in these advancements. DeepSeek's ability to build a top large language model at low cost is probably not going to hurt Nvidia in the long run. It may only lead to faster innovation in AI, and that should continue to benefit the top AI chip supplier. The recent dip has brought the stock's valuation down to a more reasonable forward price-to-earnings multiple of 30, which could almost be looked at as a bargain considering that analysts expect the company's revenue and earnings to increase 51% this year.

Nvidia Just Bought These 2 Artificial Intelligence (AI) Stocks. Should You? | The Motley Fool

What's one of the best ways to turbocharge the stocks of small technology companies? Reveal significant investments in those companies by a giant technology leader. That's exactly what happened last week as Nvidia (NVDA 0.40%) disclosed stakes in two small artificial intelligence (AI) companies. Who are these AI companies? Why did Nvidia buy their stocks? And should you buy them, too? Nvidia's filing to the U.S. Securities and Exchange Commission (SEC) revealed ownership of over 1.19 million shares in Nebius Group (NBIS 8.05%) at the end of 2024. This stake shouldn't have been surprising, though. Nebius announced in December 2024 that it had entered into definitive agreements for private placement financing of $700 million. Nvidia was one of the participants in this financing. Nebius Group's core business focuses on AI infrastructure. The company operates an AI-centric cloud platform with a large data center located in Finland. As you might expect, Nebius partnered with Nvidia and uses the huge company's GPUs to power its servers. AI infrastructure isn't Nebius' only business, though. It also owns Toloka, which helps customers prepare data for use in training models using AI and human experts who review and label data. The rapid growth of generative AI has opened a big market opportunity for the unit. Nebius' third business is TripleTen. It operates a leading online education platform that trains individuals in business intelligence analytics, cybersecurity, data science, quality assurance, and software engineering. Finally, the company's Avride unit is a Texas-based developer of self-driving car technology and delivery robots. Autonomous vehicles using its technology have been driven more than 22 million miles with no serious accidents. Speaking of autonomous vehicles, Nvidia also invested in Chinese self-driving car company WeRide (WRD 28.25%) in the fourth quarter of 2024. Nvidia's SEC filing revealed it owned nearly 1.74 million shares of WeRide at the end of the year. WeRide has been very busy in its home country. In July 2024, the company launched the first unmanned sanitation project in the Chinese city of Dongguan. The next month, WeRide began using its Robosweeper autonomous road-sweeping vehicle in Shantou. It secured approval in August to begin charging fares for a Robobus self-driving bus service in Hengqin. But WeRide's operations aren't limited to China. The company is working with Uber Technologies to offer robotaxis in the United Arab Emirates. It partnered with Beti, a leading French automated mobility provider, to launch Robobus services in France. WeRide also offers Robobus in Singapore and has plans to expand its Robosweeper business into the Asian country. Investors shouldn't buy shares of Nebius Group and WeRide solely because Nvidia did. For one thing, Nvidia was able to secure stakes in the two companies for much less than the price you'll have to pay for either stock now. Importantly, neither of these two small companies is profitable yet. Nebius posted a net loss of $96.8 million in its latest quarter with revenue of only $5 million. WeRide's revenue declined year over year to $10 million in its last reported quarter with a net loss of $148.6 million. Both Nebius and WeRide face deep-pocketed rivals. Nebius battles cloud services giants including Amazon, Alphabet's Google Cloud, Microsoft, and Oracle in its core AI infrastructure business. WeRide and Nebius' Avride could compete against Alphabet's Waymo and Amazon's Zoox units as well as other big players. However, I think aggressive investors with plenty of patience might find Nebius to be an interesting speculative pick. Its data center's energy efficiency helps give Nebius a lower total cost of ownership than competitors. The AI data center market is also growing fast enough to support multiple winners. Nebius' other businesses provide additional growth paths as well.

Does Nvidia Know Something Wall Street Doesn't? The Chipmaker Just Sold 4 Popular Artificial Intelligence (AI) Stocks and Bought 2 Others. | The Motley Fool

The chipmaker and AI specialist just sold several of the companies in its portfolio. Should investors follow suit? Advances in the field of artificial intelligence (AI) over the past couple of years have come fast and furious. Arguably, one of the biggest beneficiaries of this trend is Nvidia (NVDA 0.40%). The company's graphics processing units (GPUs) have underpinned many of the advances in the field and have become the gold standard for AI. This has fueled unprecedented sales and profit growth for Nvidia, and every move the company makes is dissected by investors for insight into the future of the AI revolution. Late last week, Nvidia filed its 13F report with the Securities and Exchange Commission (SEC), which details the changes to its investment portfolio in the most recent quarter -- in this case, the quarter ended Dec. 31. Nvidia made some significant changes, selling out of three AI stocks, trimming one position, and adding stakes in two others. Because the company has its finger on the pulse of AI, its decisions seem to carry a lot of weight with investors. Let's take a look at the stocks in question and see what insight we can glean from Nvidia's moves. Nvidia sold completely out of its position in SoundHound AI (SOUN 4.33%). The company is one of the leading providers of voice-enabled AI solutions in the smart television, automotive, Internet of Things (IoT), and customer service spaces. Its generative AI solutions have been expanding into a variety of industries, helping fuel its growth. Nvidia sold roughly 1.7 million shares worth more than $34 million. In the third quarter, SoundHound AI's record revenue of $25 million grew 89% year over year, resulting in a loss per share of $0.06, an improvement from a $0.09 loss in the prior-year quarter. While those results are impressive, SoundHound AI stock had gained roughly 836% in the year since Nvidia initially reported its stake. The resulting increase in its valuation has been equally eye-catching, and the stock closed out the year selling for 90 times sales, a stunning multiple for a company that's not yet profitable. Nvidia also dumped its entire stake in Serve Robotics (SERV -14.66%), which describes itself as a "leading autonomous sidewalk delivery company" focusing on last-mile delivery. Serve Robotics has a fleet of delivery robots and has partnered with some of the market's biggest food delivery companies, but its growth has been extremely lumpy. Nvidia sold about 3.7 million shares worth $50 million. In the third quarter, Serve Robotics generated revenue of $0.22 million, which grew 254% year over year, but decelerated from $0.51 million in Q2. Furthermore, the company's losses increased to $7.9 million. Nvidia's interest sparked a run on the stock, which gained 592% between June 30 and Dec. 31. This resulted in a commensurate increase in its valuation, as the stock was selling for 279 times sales, yet profitability was nowhere in sight. The chipmaker also ditched its entire stake in Nano-X Imaging (NNOX -2.68%), a company that uses AI in conjunction with real-world medical imaging applications to provide advanced diagnostic capabilities and improve patient care. This was by far Nvidia's smallest stake, and it sold all 60,000 shares worth roughly $429,000. In the third quarter, Nano-X delivered revenue of $3 million, which increased 22% year over year, while Nano-X's loss per share of $0.23 improved compared to a per-share loss of $0.37 in the prior-year quarter. Furthermore, the company's cash position declined from $82 million to $57 million as it continues to burn through its reserves. Nano-X stock ended the year selling for 39 times sales, a steep price to pay for a company whose financial progress has been tepid at best. Nvidia also significantly reduced its stake in Arm Holdings (ARM 0.49%), which had long been its largest holding. The company provides the designs used in many of the world's most advanced semiconductors, generating royalties and licensing fees in the process. Nvidia sold off roughly 860,000 shares worth roughly $106 million. To be fair, it still has more than 1.1 million shares that were worth nearly $176 million (as of market close on Friday), so it's still Nvidia's largest stake by far. In the third quarter, Arm generated revenue that grew 19% year over year to a record $983 million, driven by record royalty revenue and strong licensing. This fueled earnings per share (EPS) of $0.24, which tripled. Helping drive the results were the company's AI-centric version 9 cores, which offer greater computing power and generate twice the royalty rate of its predecessor. While Arm is profitable and growing, the stock still carries a lofty valuation, selling for 209 times earnings and 46 times sales (as of this writing). The first of Nvidia's new holdings is Nebius Group (NBIS 8.05%). The company, previously known as Yandex Group, provided internet and search services in Russia. Trading of the stock was suspended in February 2022, shortly after the invasion of Ukraine. The company divested control of its Russian businesses and relocated to the Netherlands. Nebius has pivoted and now offers cloud and AI services to a global customer base. The stock began trading on Oct. 20 and, soon thereafter, Nvidia purchased roughly 1.2 million shares worth roughly $33 million at the time of purchase. It's also worth noting that Nvidia was part of a private placement of $700 million, which Nebius said will be used for additional capacity to support training and running AI models. The company previously announced plans to invest more than $1 billion to AI-centric infrastructure in Europe. Comparisons are relatively meaningless, given the situation. That said, revenue of $43.3 million grew 766%, and its adjusted loss of $47 million improved by 45%, albeit from a small base. At the time of Nvidia's investment, the stock was selling for less than 1 times sales, which usually suggests an undervalued stock. Nvidia's other new position is in WeRide (WRD 28.25%). The Chinese robotaxi and autonomous driving company went public in late October, shortly after announcing a strategic partnership with Uber to integrate its robotaxis onto Uber's platform. Shortly after its IPO, WeRide began deploying its fleet of robotaxis on the Uber app in the United Arab Emirates. In the third quarter, WeRide generated revenue that declined 6% to $10 million, while its loss per share of $2.10 improved 31%. Because of its limited public operating history, there isn't much to go on, and it would be tough to assign a valuation. However, Nvidia must have liked what it saw, as it purchased more than 1.7 million shares in a stake worth nearly $25 million at the time of purchase. The common thread behind all of Nvidia's sales is relatively stretched valuations. It appears the company was simply reacting to what it likely viewed as lofty multiples and indulged in a bit of profit-taking. It's also possible Nvidia had reviewed the relative financial and operating performances of its investments and concluded that they simply weren't living up to their potential. In hindsight, it's likely that Nvidia didn't know something that Wall Street doesn't, but was merely reacting to what it perceived as more compelling opportunities.

One Incredible Artificial Intelligence (AI) Quantum Computing Stock to Buy Before it Surges 23%, According to Wall Street Analysts | The Motley Fool

Quantum computing is quickly emerging as an exciting opportunity in the artificial intelligence (AI) market. Over the last few months, small-cap stocks such as Rigetti Computing, D-Wave Quantum, and IonQ have burst onto the scene in the realm of artificial intelligence (AI). Each claims to be making groundbreaking progress in a hot new field known as quantum computing. Predictably, droves of investors have flocked to these stocks in hopes of finding the next golden opportunity involving AI. Here's the problem: Many companies working on quantum computing are still in development stages -- generating very little (if any) revenue, and burning heaps of cash. This isn't to say that investing in quantum computing is a poor idea. I would just encourage investors to think bigger-picture and consider which existing movers and shakers in the AI domain could also play a role in the development of quantum computing. To me, one of the best companies that fit this criterion is Nvidia (NVDA -0.12%). Let's dive into why Nvidia looks well positioned to dominate the quantum computing arena, and assess why shares look reasonably valued right now. My bet is that for the last two years, you've been bombarded with information about Nvidia and its graphics processing units. GPUs are advanced pieces of hardware that are capable of running algorithms and computations at continuous high speeds. Many generative AI applications such as large language models (LLMs) and machine learning protocols rely heavily on GPU chips. What you may not realize is that Nvidia's influence in the GPU market is not solely predicated on the company's hardware. It also has a flourishing software platform, originally dubbed Compute Unified Device Architecture. Now usually known simply as CUDA, it's almost like Nvidia's secret weapon, as the software runs parallel to the company's GPUs. In other words, using Nvidia chips with software from another provider is an enormous pain and can slow down a customer's AI progress considerably. The one-two punch of GPUs and CUDA has helped Nvidia stitch together quite a lucrative AI fabric. Now, Nvidia is taking this combination to the next level, as quantum computing presents another meaningful opportunity, even though the company receives little attention in discussions of this technology. In early January, Nvidia CEO Jensen Huang predicted that commercially available quantum computing applications won't be here for another 20 years. While that might not be great for Rigetti, D-Wave, or IonQ, I see Huang's outlook as incredibly bullish for Nvidia. During the same speech, Huang spoke at length about how Nvidia is parlaying its capabilities with CUDA into the area of quantum computing. It now offers a new architecture known as CUDA-Q, specifically programmed for supercomputing and quantum mechanics. Although the number of legitimate use cases for quantum computing is limited today, I think CUDA-Q could become a pillar supporting Nvidia's growth over the next several years or decades. Furthermore, I think the company could mimic its existing strategy -- essentially locking in customers to using end-to-end Nvidia infrastructure across hardware and software -- as it scales up its quantum computing operation. Right now, there is a lot of volatility surrounding Nvidia stock. Over the last month, shares dropped by as much as 15% -- erasing nearly $600 billion in market value. The driver of this sell-off revolves around a rival AI platform from China, called DeepSeek. Namely, DeepSeek claims to have trained its AI models by using Nvidia's older GPU architectures as opposed to its newest products. As such, some investors have questioned if Nvidia's influence in the AI realm is on the decline. But here's the thing: over the last few weeks, more news surrounding DeepSeek has come to light. Many analysts and AI enthusiasts are proclaiming that DeepSeek likely used more sophisticated methodologies than its leading on. Moreover, hyperscalers Microsoft, Amazon, and Alphabet, as well as social media behemoth Meta Platforms are expected to continue spending heavily on AI infrastructure this year. That's great news for Nvidia, who works closely with each of these "Magnificent Seven" peers. As such, Nvidia's share price has rebounded entirely from its intra-year lows as fears surrounding DeepSeek have dissipated. With all of that in mind, Nvidia currently trades at a forward price-to-earnings (P/E) multiple of 31; its ratio of price to free cash flow (P/FCF) is 61. As the chart below illustrates, both of these valuation multiples appear reasonable considering their historical averages: NVDA PE Ratio (Forward) data by YCharts. Given Nvidia's reasonable valuation, its solid grip on the GPU market, and strong secular demand for AI infrastructure, it's not surprising that Wall Street's consensus price for the stock is $123 per share -- implying at least 23% upside from current levels. While the baseline view is that Nvidia stock should continue rising throughout 2025, I'd urge investors to think longer-term. Given how far away quantum computing is from becoming mainstream, the prospects of this technology aren't even really being considered by analysts yet. That's also an important point to make, as Nvidia's consensus price target among analysts remains strong -- despite the initial trepidation presented by DeepSeek. Not only do I see Nvidia as a screaming buy right now, but I also think the stock is a compelling opportunity to hold: CUDA-Q is likely to emerge as another major segment of the business, thanks to quantum tailwinds.

This AI Stock Could Be the Best Investment of the Decade | The Motley Fool

Technology companies of all shapes and sizes have bet their futures on artificial intelligence. The shockwave felt by nearly everyone after the release of OpenAI's ChatGPT was the catalyst for the current AI land grab, and subsequent releases of its model, as well as other advanced models released by competitors, are fueling an all-out king-of-the-hill battle among tech giants. Among the top contenders is semiconductor company Nvidia (NVDA -0.12%). Once an obscure name among more well-known tech companies, Nvidia has bolted to the top of many investors' buy lists and jockeys for the most valuable company title with Apple. There's a risk of choosing Nvidia as a top AI stock for the next decade simply because it's been a big winner over the past few years. But there's also a risk in ignoring the company's clear advantages in the AI market and settling for lesser AI stocks. Here's why I think Nvidia may go the distance over the next 10 years. Nvidia designs some of the world's most advanced processors. It doesn't manufacture them (check out Taiwan Semiconductor if AI chip-making is your thing) but instead uses a fabless semiconductor model, designing chips that have become integral to the tech industry. Nvidia's processors account for an estimated 70% to 95% of AI chips, giving the company a massive lead among competitors like Advanced Micro Devices. To stay a few steps ahead of its rivals, Nvidia continues to release new AI chips that tech companies are knocking down its doors to get their hands on. For example, its Blackwell processor is the next iteration of its AI processor, and Nvidia's CFO, Colette Kress, said on a recent earnings call that the company is ramping up production to keep up. "Blackwell demand is staggering, and we are racing to scale supply to meet the incredible demand customers are placing on us," Kress said. With its lead already well-established and the company continuing its history of releasing advanced AI processors that outpace rivals and satisfy customers, it's likely there are many more years ahead for Nvidia's growth. Having in-demand chips right now is one thing, but parlaying that opportunity into a years-long opportunity is quite another. That's why the massive data center market is such an important factor for Nvidia. Nvidia CEO Jensen Huang estimates that data center spending will accelerate over the next few years as companies aim to dominate AI in cloud computing and develop AI models. Huang said a few months ago that technology companies could spend up to $2 trillion over the next five years as they try to race ahead of each other. That's a huge number to get your head around, but the largest tech companies are already showing their hand with AI data center spending. Consider that OpenAI, Oracle, and Softbank recently launched Stargate, a data center infrastructure plan that involves spending up to $500 billion over the next few years. And other tech leaders vying to be the king of the AI hill are doing the same. Microsoft just said on its latest earnings call that it would spend $80 billion this year alone on data center infrastructure, and Meta CEO Mark Zuckerberg said his company is shelling out $65 billion this year. Alphabet, another key AI player, says it'll spend $75 billion this year on AI data centers. Naysayers will point out that smaller AI start-ups will spend far less and still develop advanced AI models without the need for Nvidia's most advanced processors. DeepSeek shed light on this recently when it released an impressive AI chatbot despite the company's limited resources. But the long and short of it is that the world's biggest tech companies can't afford to not invest in the best data centers with the most advanced processors. There's too much at stake for them in the $15.7 trillion AI market (by 2030) for them to bootstrap their AI efforts. That bodes well for Nvidia and its AI processors in the coming years. Nvidia isn't the cheapest AI stock, with a forward price-to-earnings of 30.6. However, the company has proven that it's a unique leader in the AI processor segment and poised to benefit as tech companies duke it out for AI dominance. There's no way to guarantee Nvidia's success over the next 10 years, but considering its current position in the market, its ability to continue to attract customers, and the all-out sprint tech companies are making to outpace each other in data center prowess, Nvidia looks like one of the best AI stocks around.

Better Artificial Intelligence Stock: Nvidia vs. AMD | The Motley Fool

Which of these AI chipmakers is the better investment right now? Discrete GPUs were initially designed for use in video games and professional graphics applications, but they've now become the backbone of data centers that use them to process all sorts of computations, especially those involving complex artificial intelligence (AI) functions. Unlike CPUs, which process a single piece of data at a time through scalar processing, GPUs use vector processing to manage a wide range of floating-point numbers and integers simultaneously. That key difference makes powerful data center GPUs the picks and shovels of the AI gold rush. Nvidia (NVDA -0.12%) and Advanced Micro Devices (AMD 0.36%) share a near-duopoly in this market, but which chipmaker is the better AI-driven investment right now? Nvidia is the 800-pound gorilla of the GPU market, while AMD is the distant underdog. Nvidia's share of the entire discrete GPU market grew eight percentage points year over year to 90% in the third quarter of 2024, according to JPR, while AMD's share shrank from 17% to 10%. TechInsights estimates Nvidia accounted for 98% of all data center GPU shipments in 2023. Nvidia generated 88% of its revenue from the data center market in its latest quarter. Only 9% came from its gaming GPU segment (which was once its biggest business), while the rest mainly came from other chips for the auto and OEM markets. AMD produces GPUs, x86 CPUs, and APUs (accelerated processing units) which merge CPUs and GPUs for gaming consoles and other devices. It controlled 38% of the x86 CPU market in the first quarter of 2025, according to PassMark Software, while Intel held a 60% share. AMD sells both types of chips for the PC and data center markets. For PCs, AMD sells Ryzen CPUs and Radeon GPUs. For servers, it sells Eypc CPUs and Instinct GPUs. Its Epyc CPUs compete against Intel's Xeon CPUs, while the Instinct GPUs target Nvidia's Hopper series GPUs at a much lower price point. However, Nvidia locks in a lot of AI developers into its proprietary CUDA (Compute Unified Device Architecture) platform for GPU applications. AMD's GPUs can only run CUDA with non-native porting tools and applications, which further limits its appeal among large cloud and AI customers. That's why the world's top AI companies -- including OpenAI, Microsoft, Amazon, Meta Platforms, and Alphabet's Google -- still mainly use Nvidia's GPUs to power their generative AI applications. In fiscal 2023 (which ended in January 2023), Nvidia's revenue growth flatlined as the PC market lapped its pandemic-driven growth spurt and the macroeconomic headwinds battered the data center market. But in fiscal 2024, its revenue soared 126% as the sudden rise of generative AI applications lit a raging fire under its data center business. From fiscal 2024 to fiscal 2027, analysts expect Nvidia's revenue and EPS to grow at a compound annual growth rate (CAGR) of 57% and 65%, respectively, even as it faces tighter export curbs in China, potential competition from AMD and other AI chipmakers, and possible antitrust regulations targeting its near-monopolization of the market. It expects its near-term growth to be driven by the ongoing expansion of the AI market and the rollout of its next-gen Blackwell GPUs, which are roughly 2.5 times faster than its Hopper GPUs. In 2023, AMD's revenue fell 4% as the PC and gaming console markets cooled off. In 2024, its revenue rose 14% as it lapped that slowdown and sold more Epyc CPUs and Instinct GPUs for the data center market. For the full year, its data center revenue soared 94% and accounted for 49% of its top line. However, AMD's data center growth notably slowed down in the fourth quarter and sowed doubts regarding its ability to keep pace with Nvidia in the AI-oriented GPU market. From 2024 to 2027, analysts expect AMD's revenue and EPS to grow at a CAGR of 20% and 73%, respectively, assuming the PC market recovers, Intel continues to struggle in the x86 CPU market, and it sells more data center CPUs and GPUs. Nvidia trades at 33 times its projected earnings for fiscal 2026 (which ends in January 2026), while AMD trades at 45 times its estimated earnings for 2025. Therefore, Nvidia's stock still looks cheaper than AMD's relative to its growth potential -- even though it has already outperformed AMD by a wide margin over the past five years. Nvidia's business is less diversified than AMD's, but it generates most of its revenue from the higher-growth data center GPU market, which will probably keep expanding for the foreseeable future. AMD's data center business is growing rapidly, but it's still being weighed down by the cyclical PC and gaming console markets. So, for now, Nvidia is still a better value than AMD. Nvidia's stock might run out of steam if the AI market cools off, but it should stay ahead of its smaller and messier competitor.

These Tech Stocks Are Soaring Friday After Nvidia Disclosed Stakes

Shares of WeRide (WRD) soared Friday, along with other tech stocks after Nvidia (NVDA) disclosed a stake in the Chinese autonomous driving company. WeRide shares nearly doubled in value during Friday's session, after a filing Thursday showed Nvidia held 1.74 million shares as of Dec. 31. WeRide, which operates driverless vehicles in 30 cities across nine countries, made its debut on the Nasdaq in October. The filing showed Nvidia added a stake in Nebius Group (NBIS), an AI infrastructure company, as well. Shares of Nebius were up 7% in recent trading. Meanwhile, shares of AI voice technology company SoundHound AI (SOUN), delivery robot developer Serve Robotics (SERV), and medical technology firm Nano-X Imaging (NNOX) tumbled as the filing showed Nvidia divested its holdings in those companies. SoundHound shares dropped over 30%, Serve Robotics shares plunged more than 40%, and Nano-X fell 11%. Nvidia also reduced its stake in chip designer Arm Holdings (ARM) to roughly 1.1 million shares from 1.96 million. Its shares were down 5% Friday afternoon.

These Tech Stocks Soared Friday After Nvidia Disclosed Stakes

Shares of WeRide (WRD) soared Friday along with other tech stocks after Nvidia (NVDA) disclosed a stake in the Chinese autonomous driving company. WeRide shares nearly doubled in value during Friday's session, rising more than 80$ after a filing Thursday showed Nvidia held 1.74 million shares as of Dec. 31. WeRide, which operates driverless vehicles in 30 cities across nine countries, made its debut on the Nasdaq in October. The filing showed Nvidia added a stake in Nebius Group (NBIS), an AI infrastructure company, as well. Shares of Nebius were up nearly 7%. Nvidia rose almost 3%. Shares of AI voice technology company SoundHound AI (SOUN), delivery robot developer Serve Robotics (SERV), and medical technology firm Nano-X Imaging (NNOX) tumbled as the filing showed Nvidia divested its holdings in those companies. SoundHound shares dropped almost 30%, Serve Robotics shares plunged 40%, and Nano-X fell 11%. Nvidia also reduced its stake in chip designer Arm Holdings (ARM) to roughly 1.1 million shares from 1.96 million. Its shares finished Friday 5% down more than 3%.

Nvidia Shifts Strategy, Boosts WeRide Investment, Trims Arm Stake - NVIDIA (NASDAQ:NVDA), WeRide (NASDAQ:WRD)

Chinese autonomous startup WeRide Inc WRD stock gained Friday after Nvidia Corp NVDA disclosed new holdings in the stock during the quarter ended December 31. Nvidia procured 1.74 million shares in the startup. Last December, Uber Technologies Inc UBER and WeRide launched a robotaxi service in Abu Dhabi, marking Uber's largest commercial robotaxi service outside the U.S. and China. Also Read: AMC Networks Q4 Earnings: Streaming Revenue And Subscriber Growth Cushions Revenue Decline Morgan Stanley's Tim Hsiao hailed WeRide as a global player in the self-driving vehicle sector. Its product lineup has accomplished significant milestones, including robotaxis, robot vans, robot buses, and robot sweepers, supported by advanced driver-assistance systems (ADAS). WeRide is well-positioned to capitalize on the L4+ autonomous vehicle trend backed by its innovative products, strategic partnerships, and expanding global footprint. AI cloud firm Nebius Group NBIS stock also gained after The AI chip designer reported acquiring 1.19 million shares. Nvidia also reduced its stake in British chip designer Arm Holdings ARM to 1.10 million shares from 1.96 shares during the quarter ended September 30. Arm's stock price declined after the stake cut. Recently, Arm announced Meta Platforms Inc META as the first customer for its new in-house chip project. In the December 31 quarter, Nvidia retired its stake in AI-robotics mobility platform Serve Robotics SERV, voice AI company SoundHound AI SOUN, and medtech company Nano-X Imaging NNOX. Price Action: At the last check on Friday, WRD stock was up 82.3% at $31.31. ARM is down 4.64%. Also Read: Apple Focuses On Alibaba, Baidu Partnership In Race To Bring AI Features To China by Mid-2025 Image by WeRide via Company NVDANVIDIA Corp$136.851.15%Overview Rating:Good75%Technicals Analysis1000100Financials Analysis600100WatchlistOverviewWRDWeRide Inc$31.2181.8%ARMARM Holdings PLC$156.33-5.16%METAMeta Platforms Inc$733.460.67%NBISNebius Group NV$43.875.20%NNOXNano X Imaging Ltd$6.60-12.6%SERVServe Robotics Inc$13.12-42.8%SOUNSoundHound AI Inc$10.74-29.6%UBERUber Technologies Inc$79.25-1.30%Market News and Data brought to you by Benzinga APIs

Nvidia discloses investments in China self-driving startup WeRide, sending shares up 90%

Chip giant Nvidia revealed in a filing that it took a stake in China's self-driving startup WeRide last quarter, sending shares skyrocketing. The artificial intelligence winner owned 1.7 million shares in WeRide for a stake worth about $25 million at the end of December, according to a new 13F regulatory filing. WeRide shares surged more than 90% in premarket trading on the news. WeRide develops self-driving technology for robotaxis, minibuses as well as freight sanitation vehicles. The firm was founded in Silicon Valley in 2017 and incorporated in the Cayman Islands, before it launched a robotaxi service in Guangzhou, China, in 2019. The Chinese firm debuted on Nasdaq in October. Nvidia's filing also disclosed a $33 million new stake in Nebius Group , an AI infrastructure firm. The stock jumped more than 10% in premarket trading. In the meantime, Nvidia cut its stake in British chip name Arm Holdings by 44% last quarter to a stake worth $136 million. Arm was still Nvidia's biggest equity holding at the end of 2024. The tech giant also exited a few names last quarter such as Serve Robotics , SoundHound AI and Nano-X Imaging. Serve Robotics shares tanked 36% in premarket trading on Friday, while SoundHound AI's stock declined almost 25%.

WeRide shares soar 85% after Nvidia discloses position in Chinese co & cuts stake in Arm Holdings

Nvidia significantly reduced its stake in Arm Holdings by 44% and completely exited its investments in Serve Robotics and SoundHound AI in the fourth quarter. The company also established new positions in WeRide and Nebius Group, which aligns with Nvidia's long-term AI strategy, causing a notable increase in WeRide's stock value. Nvidia reduced its stake in British chip firm Arm Holdings by about 44% and exited its holdings in Serve Robotics and SoundHound AI in the fourth quarter, a regulatory filing showed on Friday. The artificial intelligence chip giant also reported a position of 1.7 million shares in China's self-driving startup WeRide Inc, sending its shares up 135% at open. The stocks was later trading at $14.73, up 85% at 11.14 am. WeRide uses Nvidia's advanced graphics processors and AI software to power its vehicles and had a market valuation of $4.71 billion as of the last closing. Nvidia was an early investor in WeRide. Investors closely monitor Nvidia's stake disclosures as they can influence the stock prices of companies it invests in or divests from while providing insights into the growth strategy of the dominant artificial intelligence chip designer. "There is no greater vote of confidence than Nvidia taking a stake in your company," said Dennis Dick, trader at Triple D Trading. Shares of Nebius Group rose 8% after Nvidia reported 1.2 million shares in the AI cloud firm in the quarter ended December 31. Santa Clara, California-based Nvidia cut its stake in Arm by 43.8% to 1.1 million shares, valuing its remaining stock at about $181 million as of Thursday's close. "While trimming its Arm Holdings position may raise some eyebrows, the move into Nebius and WeRide aligns with its long-term AI strategy," said Shiraz Ahmed, senior portfolio manager and founder of Sartorial Wealth at Raymond James. Arm supplies the crucial intellectual property that firms such as Apple and Nvidia license to create their chips. Last year, struggling chipmaker Intel sold off its entire stake in Arm during a restructuring. Nvidia also dissolved its holdings in Serve Robotics , known for its sidewalk delivery robots, and Israel-based medtech company Nano-X Imaging Ltd, sending their shares down 39% and 11% respectively. Voice assistant maker SoundHound AI's shares fell 25%.

Nvidia cuts stake in Arm Holdings, discloses position in China's WeRide

Feb 14 (Reuters) - Nvidia reduced its stake in British chip firm Arm Holdings by about 44% and exited its holdings in Serve Robotics and SoundHound AI in the fourth quarter, a regulatory filing showed on Friday. The artificial intelligence chip giant also reported a position of 1.7 million shares in China's self-driving startup WeRide Inc, sending its shares up 76%. WeRide uses Nvidia's advanced graphics processors and AI software to power its vehicles and had a market valuation of $4.71 billion as of the last closing. Nvidia was an early investor in WeRide. Investors closely monitor Nvidia's stake disclosures as they can influence the stock prices of companies it invests in or divests from while providing insights into the growth strategy of the dominant artificial intelligence chip designer. "There is no greater vote of confidence than Nvidia taking a stake in your company," said Dennis Dick, trader at Triple D Trading. Shares of Nebius Group rose 8% after Nvidia reported 1.2 million shares in the AI cloud firm in the quarter ended December 31. Santa Clara, California-based Nvidia cut its stake in Arm by 43.8% to 1.1 million shares, valuing its remaining stock at about $181 million as of Thursday's close. "While trimming its Arm Holdings position may raise some eyebrows, the move into Nebius and WeRide aligns with its long-term AI strategy," said Shiraz Ahmed, senior portfolio manager and founder of Sartorial Wealth at Raymond James. Arm supplies the crucial intellectual property that firms such as Apple and Nvidia license to create their chips. Last year, struggling chipmaker Intel sold off its entire stake in Arm during a restructuring. Nvidia also dissolved its holdings in Serve Robotics , known for its sidewalk delivery robots, and Israel-based medtech company Nano-X Imaging Ltd, sending their shares down 39% and 11% respectively. Voice assistant maker SoundHound AI's shares fell 25%. (Reporting by Jaspreet Singh in Bengaluru; Editing by Tasim Zahid)

Why WeRide Stock Is Skyrocketing Today | The Motley Fool

WeRide (WRD 80.55%) is shooting to the moon in Friday's trading. The China-based autonomous driving company's share price was up 81% as of 1 p.m. ET and had been up as much as 146% earlier in the session. WeRide's valuation is surging after artificial intelligence (AI) hardware leader Nvidia revealed in its new 13F filing that it purchased roughly 1.74 million shares of the Chinese company's stock in the fourth quarter. As of this writing, Nvidia's position in WeRide is worth roughly $58 million. In the context of Nvidia's roughly $3.35 trillion market cap, that's a small investment. On the other hand, it's also brought tons of new attention to WeRide -- and it wouldn't be surprising to see a sustained rally for the self-driving-technologies specialist as a result. Nvidia is arguably the most influential player in the AI space, and its endorsement carries a lot of weight. A similar situation played out last year after it was revealed that Nvidia had invested in SoundHound AI. Notably, Nvidia's latest 13F filing showed that it had sold its stake in SoundHound AI, triggering a big sell-off. Following today's explosive gains, WeRide now has a market capitalization of roughly $8.3 billion. However, the company is still generating relatively little revenue. In its most recently reported quarter, it generated sales of just $10 million -- which actually marked a mid-single-digit decline from its performance in the prior-year quarter. Nvidia clearly sees something in the company, and that's a bullish indicator. On the other hand, investors should keep in mind that WeRide is a high-risk, high-reward stock. SoundHound's example shows us there's no guarantee that Nvidia will continue to back WeRide over the long term -- and there's a risk the stock will see big sell-offs if the AI leader reduces its position.