Nvidia, the undisputed leader in AI chips, is poised to reap massive benefits from Meta’s staggering $60 billion to $65 billion spending spree on AI infrastructure in 2025. The tech giant’s dominance in the supply chain of graphics processing units (GPUs) will ensure a lucrative partnership with Meta, which plans to own over 1.3 million GPUs by year’s end.
Meta’s investment will fuel Nvidia’s revenue growth, driven by the insatiable demand for its H100 and next-gen Blackwell chips. The company’s fiscal third-quarter 2025 earnings results outpaced forecasts, with revenue rocketing 94% year-over-year to $35.1 billion. Non-GAAP earnings doubled to $0.81 per share, marking an astonishing sixth straight quarter of triple-digit profit growth.
Analysts are bullish on Nvidia’s stock, with a “Strong Buy” consensus rating overall. Tigress Financial upgraded NVDA to “Strong Buy” with a $220 price target, implying upside potential of 76.5%. The mean price target of $176.90 suggests the AI chip stock could rally as much as 41.9% from current price levels.
Nvidia’s Q4 earnings results are set to be released on February 26, and management projects the quarter’s revenue at $37.5 billion. Wall Street is even bolder, eyeing $38.13 billion with EPS surging 61.2% to $0.79. For fiscal 2025, profit is set to jump 134.8% to $2.77 per share, with another 43.7% growth to $3.98 per share in fiscal 2026.
As Meta’s AI ambitions drive the market for GPUs, Nvidia remains at the forefront of this gold rush. The company’s dominance in the AI chip market and its 5.5 million developers leveraging its CUDA ecosystem will continue to fuel data centers, self-driving cars, and enterprise AI. With billions flowing into AI hardware, Meta’s spending spree could be the catalyst that sends Nvidia’s stock to uncharted heights.
Source: https://www.barchart.com/story/news/30719239/can-metas-massive-manhattan-data-center-take-nvidia-stock-to-new-record-highs