September 21, 2025

finance  
microsoft, nvidia and amazon Updates

The artificial intelligence landscape is seeing massive investment and strategic partnerships across major tech players. Microsoft has secured crucial AI compute resources through a five-year, $17.4 billion deal with Nebius Group, a GPU infrastructure provider. This move allows Microsoft to access necessary computing power without expanding its own infrastructure, highlighting the intense demand for AI hardware. Nvidia continues its dominance in the AI chip market, with analysts predicting it could reach a $6 trillion market cap, fueled by hyperscalers like Amazon, Microsoft, and Alphabet investing heavily in AI infrastructure. Nvidia's next-generation Blackwell architecture and GPU-as-a-service offerings are key to its sustained growth. Beyond Nvidia, Advanced Micro Devices (AMD) and Marvell Technology are emerging as significant players. AMD is focusing on the AI inference market with its ROCm software and UALink Consortium, while Marvell is securing custom chip designs with hyperscalers like Amazon and Microsoft for high-speed interconnects. Alibaba is making a substantial pivot to AI, committing $53.42 billion over three years to AI and cloud infrastructure, investing in startups and partnering with other tech firms. AppLovin is joining the S&P 500, driven by its AI-powered Axon 2 platform, which has fueled significant growth in its software platform revenue. For long-term investors, Alphabet and Meta Platforms are seen as strong AI stock choices, with combined AI investments expected to reach $154 billion in 2025, leveraging AI to enhance their vast user bases and advertising businesses. Bernstein views Apple as a key player in the AI revolution, initiating coverage with an 'Outperform' rating and a $290 price target, anticipating AI advancements and potential AI partnerships. Nvidia and Amazon are predicted to be the world's most valuable companies within five years, with Nvidia leading in AI chips and Amazon leveraging AWS for AI applications. Other AI stocks to watch include QUALCOMM for its wireless AI solutions, Salesforce for its AI-integrated CRM, and Accenture for its AI consulting services.

Key Takeaways

  • Microsoft has entered a five-year, $17.4 billion deal with Nebius Group for GPU infrastructure to support AI compute needs.
  • Nvidia's market cap is predicted by some analysts to reach $6 trillion by the end of next year due to massive AI infrastructure investments by hyperscalers.
  • Advanced Micro Devices (AMD) is focusing on the AI inference market and developing open standards like UALink.
  • Marvell Technology is securing custom AI chip design wins with hyperscalers such as Amazon and Microsoft.
  • Alibaba plans to invest $53.42 billion in AI and cloud infrastructure over three years.
  • AppLovin is set to join the S&P 500, driven by AI-powered growth from its Axon 2 platform.
  • Alphabet and Meta Platforms are considered strong long-term AI investments, with combined AI investments projected at $154 billion in 2025.
  • Bernstein initiated coverage of Apple with an 'Outperform' rating, seeing it as a key player in the AI revolution.
  • Nvidia and Amazon are predicted to become the world's most valuable companies within five years due to their AI market positions.
  • QUALCOMM, Salesforce, and Accenture are highlighted as promising AI stocks to watch.

Microsoft inks $17.4 billion AI deal with Nebius Group

Microsoft has signed a five-year, $17.4 billion deal with Nebius Group, a company providing cloud-based GPU infrastructure. This agreement allows Microsoft to secure necessary compute resources without expanding its own infrastructure. Nebius Group, competing with giants like Oracle and CoreWeave, gains significant validation and a major client. The deal highlights the growing demand for AI infrastructure and positions Nebius as a key player in the sector. Investors are watching Nebius closely following this transformative contract.

Analyst predicts Nvidia could reach $6 trillion market cap

A Wall Street analyst predicts Nvidia could become the first company to reach a $6 trillion market cap by the end of next year. This forecast is based on the massive investments hyperscalers like Amazon, Microsoft, and Alphabet are making in AI infrastructure. Nvidia's data center business is experiencing rapid growth, driven by demand for its GPUs. The company's next-generation Blackwell architecture and its role in GPU-as-a-service agreements position it for continued dominance in the AI hardware ecosystem. This sustained demand is expected to fuel Nvidia's significant market expansion.

Microsoft partners with AI data center firm Nebius Group

Microsoft has entered into a significant five-year, $17.4 billion agreement with Nebius Group, a company specializing in GPU infrastructure for AI. This deal allows Microsoft to access crucial computing power without the capital expenditure and risks of building more internal infrastructure. Nebius Group, previously a smaller competitor to Oracle and CoreWeave, gains substantial validation and a large-scale contract. The partnership underscores the intense demand for AI infrastructure and solidifies Nebius's position in the market.

AMD and Marvell: AI chip stocks to watch beyond Nvidia

While Nvidia and Broadcom dominate AI chip headlines, Advanced Micro Devices (AMD) and Marvell Technology present significant opportunities. AMD is well-positioned to gain market share in AI inference, where price and efficiency are key, and is developing open standards like UALink. Marvell is securing custom AI chip designs with major hyperscalers like Amazon and Microsoft, focusing on companion chips and high-speed interconnects. Despite near-term lumpiness, both companies are poised to benefit from the expanding AI infrastructure market.

AMD and Marvell: AI chip stocks poised for growth

Advanced Micro Devices (AMD) and Marvell Technology are emerging as key players in the AI chip market, offering alternatives to Nvidia and Broadcom. AMD is focusing on the growing AI inference market with its ROCm software and the UALink Consortium, aiming to offer competitive performance and lower costs. Marvell is securing custom chip design wins with major cloud providers like Amazon and Microsoft, particularly in the high-growth XPU Attach market. These companies are strategically positioned to capture significant market share as AI infrastructure continues to expand.

Alibaba invests billions in AI for a major comeback

Alibaba is making a significant pivot to artificial intelligence, investing billions to revitalize its business. The company has participated in over $3.3 billion in AI-related deals since late 2022, investing in startups like X Square Robot and PixVerse, and partnering with Honor. Alibaba plans to spend $53.42 billion on AI and cloud infrastructure over three years, with over $10 billion already invested in the past year. This aggressive strategy aims to leverage its vast data and cloud capabilities, positioning Alibaba as a major AI player in China and globally, driving revenue growth in its cloud computing services.

AppLovin joins S&P 500 after massive AI-driven growth

AppLovin, a digital advertising company, is set to join the S&P 500 index following significant growth fueled by its AI-powered Axon 2 platform. The company has seen its software platform revenue surge to $4.25 billion over the last four quarters. AppLovin is expanding into connected-TV and e-commerce advertising and plans to further leverage generative AI for personalized ad creatives and automated workflows. Despite a high valuation, its self-serve platform and AI advancements suggest continued growth potential.

Alphabet and Meta: AI stocks for long-term investors

Alphabet and Meta Platforms are presented as strong long-term AI stock investments for those with $3,000 to invest. Both companies leverage AI to enhance their massive user bases and digital advertising businesses, with combined AI investments expected to reach $154 billion in 2025. Alphabet's AI integration in Search and Meta's use of AI for content recommendations are improving user experience and ad effectiveness. Their strong financial resources and dominant market positions provide a solid foundation for continued growth and leadership in the AI era.

Bernstein sees Apple as key to the AI revolution

Bernstein initiated coverage of Apple stock (AAPL) with an 'Outperform' rating and a $290 price target, calling it the 'gateway to the Intelligence Revolution.' The firm believes Apple is well-positioned to benefit from AI advancements, especially after a recent Google remedies decision removed a potential obstacle. This resolution may clear the path for AI partnerships, potentially involving Google's Gemini technology. Bernstein acknowledges risks in AI and new devices but remains optimistic about Apple's EPS growth driven by its expanding user base and share buybacks.

Nvidia and Amazon predicted to be top companies in 5 years

Nvidia and Amazon are predicted to become the world's most valuable companies within five years due to their strong positions in the AI revolution. Nvidia, already the highest-valued company, continues to dominate the AI chip market with its GPUs, supplying major AI players like Amazon, Microsoft, and Meta. Its ongoing innovation, including new processors like Rubin CPX, ensures its continued leadership. Amazon, despite recent stock underperformance compared to peers, is expected to see significant growth from its AWS cloud services supporting AI applications and improvements in its e-commerce operations through AI and robotics.

Top AI stocks to watch: QUALCOMM, Salesforce, Accenture

MarketBeat highlights QUALCOMM, Salesforce, and Accenture as promising Artificial Intelligence (AI) stocks to follow. QUALCOMM leads in wireless technology with AI-focused solutions, while Salesforce integrates AI into its CRM platform for enhanced insights and automation. Accenture offers AI consulting and implementation services across various industries. These companies are positioned to benefit from the significant expected growth in the AI market, though investors are advised to conduct thorough research.

Sources

AI infrastructure GPU Cloud computing Nvidia Microsoft Nebius Group AMD Marvell Technology AI chips Market cap Hyperscalers Amazon Alphabet Meta Platforms Alibaba AppLovin Generative AI Apple QUALCOMM Salesforce Accenture AI stocks AI revolution AI hardware AI inference AI consulting CRM Wireless technology Digital advertising E-commerce Connected TV