Nvidia, Google AI Chips Power EVs, Cloud; Apple Lags

The artificial intelligence sector continues to see significant developments and strategic moves across major tech players. Nvidia's AI chips are powering advancements in electric vehicles, with its Nvidia Drive platform supporting AI-driven driving systems and battery management. In the cloud and AI infrastructure space, Alibaba is partnering with Nvidia to accelerate humanoid robotics and AI initiatives, while Microsoft and Nvidia are both highlighted as top AI stocks due to Nvidia's GPU dominance and Microsoft's integration of AI across its Azure cloud and services. Alphabet (Google) is also positioned as a bargain AI investment, leveraging its Gemini model in search and offering AI tools to advertisers and cloud clients, with analysts noting its strong AI research through Google DeepMind. Wells Fargo has initiated coverage on Datadog with an overweight rating, recognizing its leadership in AI-powered cloud observability, evidenced by strong Q2 2025 revenue growth. In the hardware race for AI, Bernstein analysts favor Super Micro Computer over Apple for AI hardware, citing Super Micro's positioning in the AI server market. Wall Street analysts also lean towards AMD over Palantir for AI stock investments, with AMD noted for its growing share in AI chips and servers, while Palantir faces valuation and security concerns despite strong demand for its AI tools. Beyond core AI development, AI integration is expanding into various industries: Intuitive Surgical has enhanced its da Vinci 5 system with AI features, securing global approvals and seeing increased adoption of its Single-Port system. Motorola Solutions is launching new AI-powered security platforms, Inform and Avigilon Visual Alerts, to unify surveillance data and improve incident response. Samsara Inc. is expanding its AI safety platform with new fleet features like Weather Intelligence and Automated Coaching, alongside an expanded partnership with First Student. Better.com is boosting its market outlook with an AI-driven Bank Statement HELOC program and expanded home equity products, utilizing its Tinman(R) AI platform. HP Inc. has also launched 14 new AI products and services tailored for hybrid work environments. Despite these advancements, several companies face risks, including reliance on major AI customers, long enterprise sales cycles, high spending on AI, and concerns about profitability and debt.

Key Takeaways

• Nvidia's AI chips are being integrated into the next generation of electric vehicles, supporting AI-driven driving systems and battery management.
• Alibaba is collaborating with Nvidia to advance its humanoid robotics and AI initiatives, increasing its AI spending amidst U.S. export restrictions.
• Alphabet (Google) is considered a top AI stock and a bargain investment, utilizing its Gemini AI model across products and services, with a forward P/E ratio of 23.4.
• Wells Fargo rates Datadog overweight, citing its leadership in AI-powered cloud observability and strong Q2 2025 revenue growth of 28%.
• Bernstein analysts prefer Super Micro Computer over Apple as an AI hardware stock pick due to Super Micro's strong position in the AI server market.
• Wall Street analysts favor AMD over Palantir for AI stock investments, highlighting AMD's growing share in AI chips and servers.
• Intuitive Surgical has upgraded its da Vinci 5 system with AI features and received global regulatory approvals, with its Single-Port system procedures increasing by 88% year-over-year.
• Motorola Solutions and Samsara Inc. are introducing new AI-powered tools for security and fleet safety, respectively, aiming to enhance data analysis and operational response.
• Better.com has launched an AI-driven HELOC program and expanded home equity products, showing 166% year-over-year growth in this area.
• HP Inc. has released 14 new AI-powered products and services designed to support hybrid work environments.

Intuitive Surgical expands da Vinci 5 with AI, gains global approvals

Intuitive Surgical has upgraded its da Vinci 5 system with new AI features and successfully demonstrated telesurgery over long distances. The company also secured regulatory approvals in Europe, Japan, and Korea, boosting its international presence. Procedures using the Single-Port (SP) system increased by 88% year-over-year, with new clearances for colorectal surgeries showing growing adoption of their advanced surgical technology.

Motorola Solutions launches AI security tools Inform and Avigilon

Motorola Solutions introduced new AI-powered security platforms, Inform and Avigilon Visual Alerts, at GSX 2025. These tools aim to unify surveillance data and improve incident response by using AI. This move supports the company's shift towards higher-margin, software-driven security solutions and recurring cloud revenue. However, the risk of customers adopting open, broadband systems remains a concern.

Samsara enhances AI safety platform with new fleet features

Samsara Inc. has expanded its AI-powered safety platform with new features like Weather Intelligence and Automated Coaching. These tools aim to improve fleet safety and operational response by using real-time data and AI insights. The company also announced an expanded partnership with First Student to equip 46,000 vehicles with its technology. Despite these advancements, long enterprise sales cycles still pose a risk to revenue consistency.

Alibaba partners with Nvidia to boost AI robotics and cloud

Alibaba has announced a significant collaboration with Nvidia to accelerate its development of humanoid robotics and expand its AI initiatives. This partnership comes as Alibaba increases its AI spending and faces U.S. restrictions on AI hardware exports. The collaboration aims to boost Alibaba's cloud-driven growth and AI ambitions, but high spending on AI and quick commerce still poses a risk to near-term profitability.

Wells Fargo rates Datadog overweight on AI cloud observability

Wells Fargo initiated coverage on Datadog with an overweight rating, citing the company's momentum in AI-powered cloud observability solutions. The firm highlighted strong adoption among enterprise clients and Datadog's leadership at the intersection of cloud infrastructure and AI. Datadog's Q2 2025 results showed revenue up 28% year-over-year, aligning with analyst optimism. However, reliance on major AI-native customers remains a potential risk.

Alphabet is a top AI stock to buy before 2025 end

Alphabet is highlighted as a leading AI stock to buy before the end of 2025 due to its long-standing innovation in artificial intelligence. The company integrates its AI models, like Gemini, into user-facing products and offers AI tools for advertisers and Google Cloud clients. Alphabet is also developing its own AI chips and has a strong research division through Google DeepMind. Its stock is considered attractively valued with a forward price-to-earnings ratio of 23.4.

Alphabet stock is a bargain AI investment opportunity

Alphabet, parent company of Google, is presented as a valuable AI investment opportunity trading at a bargain price. The company utilizes AI in its search results with its Gemini large language model and offers AI services to advertisers and Google Cloud customers. Analysts consider Alphabet the 'most valuable company' due to its AI business. The stock's current valuation is seen as attractive, with potential for significant gains as its AI capabilities advance.

Bernstein favors Super Micro Computer over Apple for AI hardware

Bernstein analysts have identified Super Micro Computer (SMCI) as their top AI hardware stock pick, preferring it over Apple (AAPL). They believe Super Micro is well-positioned to benefit from the high demand for AI servers and components. The firm's analysis suggests Super Micro's specialized focus and growth potential in providing the physical infrastructure for AI advancements make it a more compelling investment in the AI hardware sector currently.

Trade Desk stock selloff overblown despite AI risk

The Trade Desk (TTD) is rated a Strong Buy with a $64 price target, suggesting a 28% upside after a recent 53% stock decline. Despite competition and AI-related concerns, TTD continues to achieve double-digit revenue growth and maintain strong profitability. Its premium valuation is justified by high growth and a robust cash position. Analysts believe the recent selloff is overdone and that leveraging AI could lead to a significant stock price rebound.

Better.com expands with AI, boosting market outlook

Better.com has launched a new AI-driven Bank Statement HELOC program and expanded its home equity products, showing 166% year-over-year growth. The company also signed two major agreements to increase loan volume, utilizing its Tinman(R) AI platform. These initiatives have boosted investor confidence, with shares trading up significantly. Despite challenges like negative profitability margins and substantial debt, the company's innovative product offerings and strategic partnerships aim to improve future performance.

Nvidia AI chips to power next generation of EVs

Nvidia's AI leadership is driving growth into the electric and autonomous vehicle markets. Its Nvidia Drive platform provides hardware and software tools for developing AI-powered driving systems, scalable for various vehicle types. The company is also investing in AI-powered battery management systems for EVs to optimize performance and reduce charging times. Nvidia's strong AI capabilities position it as a key player in the future of transportation.

Wall Street favors AMD over Palantir in AI stock race

Wall Street analysts currently favor Advanced Micro Devices (AMD) over Palantir Technologies (PLTR) as an AI stock investment. AMD is recognized for its growing share in AI chips and server markets, with a 'Moderate Buy' consensus rating and potential for 14% upside. Palantir, while experiencing strong demand for its AI tools, has a 'Hold' consensus rating and potential downside, partly due to its high valuation and security concerns.

NVIDIA and Microsoft are top AI stocks to buy

NVIDIA and Microsoft are identified as two top AI stocks for investors. NVIDIA leads in AI hardware with its GPUs essential for training AI models, showing strong revenue growth. Microsoft leverages its Azure cloud platform and AI investments, including a partnership with OpenAI, to integrate AI across its products and services. Both companies are considered industry leaders with significant growth potential in the expanding AI market.

HP launches 14 new AI products for hybrid work

HP Inc. has introduced 14 new AI-powered products and services designed for hybrid work environments, including a new portable monitor and enhancements to its Workforce Experience Platform. This launch signifies HP's commitment to integrating AI technology across its hardware and software. The company aims to capture demand for premium devices and expand recurring service models, though challenges remain in offsetting declining print revenues.

Sources

• How AI-Powered da Vinci 5 Expansion and Global Growth Could Influence Intuitive Surgical (ISRG) Investors
• Did Motorola Solutions' (MSI) AI-Powered Security Launch Just Shift Its Recurring Revenue Narrative?
• How Investors Are Reacting To Samsara (IOT) Expanding Its AI Safety Platform With New Fleet Features
• Alibaba (BABA) Is Up 9.4% After Nvidia AI Partnership to Boost Robotics and Cloud Initiatives
• Can Analyst Optimism on AI Help Datadog (DDOG) Sustain Its Competitive Edge in Cloud Services?
• 1 AI Stock to Buy Before the End of 2025 @themotleyfool #stocks $GOOGL $GOOG
• What AI Stock Could Be the Market's Best Bargain Today?
• Apple or Super Micro Computer: Bernstein Selects the Top AI Hardware Stock to Buy
• The Trade Desk Stock (TTD): I Understand AI-Related Risk; Selloff Appears Overblown
• Better.com Expands with AI and Strategic Partnerships, Boosting Market Outlook
• Prediction: This Artificial Intelligence (AI) Stock Could Power the Next Generation of EVs
• AMD vs. Palantir: Which AI Stock Is Wall Street’s Favorite?
• 2 No-Brainer Artificial Intelligence (AI) Stocks to Buy Right Now
• Will HP's (HPQ) New AI-Powered Hybrid Work Solutions Redefine Its Investment Narrative?