Nvidia, a pioneer in artificial intelligence (AI), is poised to continue its dominance in the rapidly growing AI chip market. The company’s Blackwell processors power the infrastructure behind this AI boom, and its stock has gained 86% over the past year.
In 2025, Big Tech companies such as Alphabet, Meta Platforms, Amazon, and Microsoft are expected to spend $320 billion on AI and data centers, up from $230 billion in 2024. Nvidia’s $75 billion capex commitment for the year is a major win for chip makers and will likely benefit the company.
Nvidia’s stock has faced short-term jitters due to the rise of Chinese AI startup DeepSeek, but its dominance in AI chips solidifies its position as the go-to choice for 2025 and beyond. The company’s stock took a hit after DeepSeek’s AI breakthrough, but it remains up significantly over the past year.
Nvidia’s Q3 earnings blew past expectations, with revenue soaring 94% year-over-year to $35.1 billion. Gross margins stood at 74.8%, driven by a surge in data center revenue. The company is set to report its Q4 earnings on February 26, and analysts expect strong growth.
Alphabet’s massive $75 billion in planned spending for AI infrastructure in 2025 will benefit Nvidia, as Google Cloud relies heavily on the company’s AI powerhouse GPUs. This trend suggests that AI spending is not slowing down, and Nvidia remains at the center of this revolution.
Analysts are highly bullish on NVDA, with a solid “Strong Buy” consensus rating. The mean price target of $178.09 implies a 37.2% upside from current price levels. With its stock still reasonably priced given its trajectory, NVDA remains a solid option for investors.
Source: https://www.barchart.com/story/news/30861355/googles-ai-investments-worry-investors-but-nvidia-stock-could-win-big