Large tech companies are preparing for the AI weapons race, and the price tags are phenomenal. In 2025, companies like Alphabet (Googl), Meta Platforms (Meta), Amazon (AMZN) and Microsoft (MSFT) will pour an astounding $320 billion into AI and data centers starting from $200 billion in 2024 It is set.
Alphabet’s $75 billion annual CAPEX commitment announced last week shows that AI pushes are far from slowing down. This heavy spending has hammered investors’ sentiment, especially after the rise of Chinese AI startup Deepseek rattled the market. Alphabet’s aggressive CAPEX can put pressure on margins and slow short-term profitability. Still, it’s a big win for chipmakers.
As Alphabet’s investments boost chip stock, Santa Clara-based Nvidia (NVDA) is making the most profitable as it powers the infrastructure behind this AI boom. Despite the short-term uncertainty from Deepseek, Nvidia’s dominance on AI chips has solidified its position as an option for 2025 and continues to drive the booming AI infrastructure market.
About Nvidia Stocks
Nvidia (NVDA) started with game chips, but we saw bigger games to play. Currently, it is worth $3.2 trillion in market capitalization, and is the backbone of the AI era, fueling ChatGpt, and is a self-driving vehicle.
Nvidia’s shares hit early 2025, plunging 17% on January 27th after Deepseek’s AI breakthrough rattles investors. Beyond 15% since its January peak, there has been a long period of concern over competition, and the NVDA remains red for the year.
However, looking at the big picture, NVDA stocks have grown 86% over the past year. As Big Tech doubles its AI infrastructure, stocks have been repaid 15% in the last five trading sessions.
Nvidia is not a bargain, trading at 32.66x advance revenue, but its premium rating has been won. This unusual DIP, which has fallen double digits from its peak, offers long-term investors the opportunity to buy in the future of computing.
Nvidia outperforms the Q3 projection
Nvidia’s third quarter revenue on November 20th blew past expectations and once again proved why it dominates AI computing. That revenue surged to $35.1 billion, 94% year-on-year, as it rose to $30.8 billion, thanks to a 112% spike in data center revenue. The total margin was 74.8%.
Non-GAAP earnings doubled per share to $0.81 per share, marking triple-digit earnings growth in the sixth quarter. Gaming revenue rose 15% year-on-year to $3.3 billion, fueling demand for GeForce RTX GPUs, and automotive revenue rose 72% as Nvidia’s Orin platform gained traction in next-generation vehicles.
Nvidia is scheduled to report its fourth quarter revenue on Wednesday, February 26th, after the market closed. Management is projecting revenue of $37.5 billion, while Wall Street is forecast to be an additional $38.13 billion, with EPS projected between 61.2% and $0.79. Strong hopper tip demand and blackwell ramp up probably drive growth.
For fiscal year 2025, analysts expect earnings to be between $2.77 per share, with an additional 43.7% surge to reach $3.98 per share in fiscal year 2026.
Google’s AI bill could benefit Nvidia
The fourth quarter of the Alphabet’s earnings on February 4th should have been a winning lap, but the stock fell 8%. Despite revenue and profit growth, Google Cloud’s revenue growth is not enough to impress Wall Street, with Alphabet’s CAPEX forecasts reaching $18 billion in the first quarter, with a massive 750 2025 It was part of a billion-dollar AI investment and sent investors. CAPEX annually is $15 billion higher than Wall Street’s expectations, and analysts question whether Google can justify spending. Meanwhile, DeepSeek’s low-cost AI breakthrough has fueled the fear of being more efficient and more efficient in GPU-hungered models.
But for Nvidia, Google’s AI Arms Race is a jackpot. Google Cloud faces supply constraints and relies on Nvidia’s AI Powerhouse GPUs to scale up despite its own custom chips. CEO Sundar Pichai reaffirmed Google’s “strong relationship with Nvidia” and was the first to adopt Nvidia’s next-generation platform.
AI spending has not slowed down. Hyperscalers are in the dominant race, and Nvidia remains at the heart. The GPU giant still commands 90% of the AI chip market, and CUDA software is creating non-intrusive moats. Competitors like Advanced Micro Devices (AMD) are still catching up, but Broadcom (AVGO) and Marvell Technology (MRVL) custom AI chips remain niche solutions.
Of course, the risks are looming. The Deepseek turmoil rattles AI stocks, proving that innovation can move rapidly and the giants can stumble. However, when it comes to mass deployments, NVIDIA remains the fastest and most efficient option for scaling AI infrastructure. The alphabet may have been a hit, but Nvidia is still in the driver’s seat. As big technology pours billions of dollars into AI infrastructure, the GPU king is thriving. In this AI Gold Rush, Nvidia still sells the best.
Wall Street’s bullish bet on the NVDA
Despite recent bumps, Nvidia remains the top pick for Mahoney Asset Management. CEO Ken Mahoney points out that Nvidia’s AI-driven momentum remains strong amid the Deepseek turmoil.
Meanwhile, Morgan Stanley sees Nvidia as a long-term AI powerhouse. Analyst Joseph Moore has reaffirmed his “overweight” rating with a goal of $152 and aims to rise by 17.1%.
Despite Deepseek’s shakeup, Moore calls it a “purchase opportunity” and cites the strong demand for Hopper and Blackwell chips. With the Cloud Giants expanding and AI infrastructure surges, Nvidia’s advantage remains unshakable.
Overall, analysts are very bullish at the NVDA with a solid “strong buy” consensus rating. Of the 43 analysts in the report, 37 recommended “strong buys”, two advised “medium buys”, and four analysts maintain a “hold” rating.
The average price target of $178.09 suggests that AI chip stock could rise by 37.2% from current price levels. Meanwhile, the $220 Street High set by Tigress Financial means a 69.4% increase.
Nvidia is at the heart of the AI gold rush, with tech giants doubling their infrastructure. Alphabet’s vast $75 billion planned spending is a clear signal. AI spending has not slowed down, and Nvidia’s cutting edge chips remain the backbone of this revolution. As Crowtitans move forward, Nvidia’s advantage in high-performance AI hardware will remain prepared for massive growth in 2025.
On the date of publication, Sristi Suman Jayaswal had no position (directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. For more information, see BarChart’s disclosure policy.
