September 19, 2025

finance  
Nvidia Invests $5 Billion in Intel, AMD Gains Traction

The artificial intelligence sector continues its rapid expansion, with significant developments across hardware, software, and cloud infrastructure. Nvidia, a dominant force in AI GPUs, is expected to benefit from Oracle's projected fivefold increase in cloud infrastructure revenue over the next five years, driven by non-cancellable contracts. Broadcom, a designer of custom AI chips, and AMD, with its ROCm 7 platform, are also positioned to gain from this surge in AI spending, as hyperscalers seek cost-effective alternatives and AI players adopt new GPU technologies. Taiwan Semiconductor Manufacturing (TSMC) remains a critical manufacturer for all chip designers in this growing market. In a notable strategic move, Nvidia has invested $5 billion in Intel, acquiring over 4% of the company's common stock, aiming to bolster U.S. semiconductor manufacturing and collaborate on custom data center and personal computing products crucial for Intel's AI market entry. The global hardware acceleration market is forecast to reach $9.67 billion by 2032, with GPUs leading but ASICs expected to see the fastest growth. Beyond hardware, software companies are also leveraging AI for growth. Atlassian is integrating AI features like Rovo into its work management tools, with analysts projecting significant upside. FactSet reported strong sales growth, exceeding expectations with its AI and data innovation transforming financial workflows. Tempus AI's stock has surged due to its AI applications in personalized medicine and drug discovery, receiving FDA clearance for its AI-powered cardiac imaging platform. Twilio is enhancing its cloud communications offerings with AI tools for customer support and personalization, showing robust revenue and customer growth. Meanwhile, startup Numeral has secured $35 million in Series B funding to expand its AI-powered sales tax automation platform.

Key Takeaways

  • Nvidia is expected to benefit significantly from Oracle's projected increase in cloud infrastructure revenue over the next five years.
  • Broadcom designs custom AI chips for hyperscalers, and AMD's ROCm 7 platform is seeing adoption by major AI players.
  • The global hardware acceleration market is projected to reach $9.67 billion by 2032, with ASICs anticipated to grow fastest.
  • Nvidia has invested $5 billion in Intel, becoming a significant shareholder and partnering on custom AI products.
  • Analysts see strong upside potential in AI stocks like Nvidia (26%) and Atlassian (45%).
  • Tempus AI's stock has more than doubled in 2025, driven by AI in healthcare, and received FDA clearance for its AI cardiac imaging platform.
  • Twilio reported a 13% year-over-year revenue increase to $1.23 billion, integrating AI into its communications services.
  • FactSet exceeded sales expectations with $596.9 million in quarterly revenue, driven by AI and data innovation.
  • Startup Numeral raised $35 million in Series B funding for its AI-powered sales tax automation.
  • TSMC is a key manufacturer benefiting from the overall surge in AI chip demand.

Oracle's cloud growth to boost Nvidia and Broadcom stocks

Oracle projects a significant increase in its cloud infrastructure revenue over the next five years, driven by non-cancellable contracts. While Oracle itself faces high spending needs, Nvidia and Broadcom are expected to be major beneficiaries. Nvidia, as the leader in AI GPUs, will supply chips for Oracle's buildout. Broadcom, which designs custom AI chips for companies like OpenAI, will also benefit as OpenAI is a key Oracle customer. This strategic move positions Nvidia and Broadcom for substantial gains from Oracle's expansion.

Broadcom, AMD, TSMC poised to gain from AI spending surge

Nvidia predicts a fivefold increase in AI infrastructure spending, benefiting multiple companies beyond just Nvidia. Broadcom is a key player in designing custom AI chips, or ASICs, for hyperscalers looking for cost-effective alternatives to Nvidia's GPUs. AMD is set to gain from the growing demand for AI inference, with its ROCm 7 platform and GPUs being adopted by major AI players. Taiwan Semiconductor Manufacturing (TSMC) is a crucial manufacturer for all chip designers, including those creating AI chips, making it a strong investment regardless of which company leads the market.

Wall Street sees Nvidia and Atlassian as top AI stock picks

The Nasdaq Composite has historically provided strong returns, and analysts believe artificial intelligence (AI) stocks will continue this trend. Wall Street analysts have identified Nvidia and Atlassian as two AI stocks with significant upside potential. Nvidia, with its dominant position in AI GPUs, is expected to see 26% growth according to median price targets. Atlassian, a leader in work management software with growing AI features like Rovo, is projected to see 45% upside. Both companies are seen as well-positioned to benefit from the ongoing AI revolution.

Hardware acceleration market to reach $9.67 billion by 2032

The global hardware acceleration market is projected to reach $9.67 billion by 2032, growing at a compound annual growth rate of 10.54%. This growth is driven by the increasing demand for high-performance computing in AI, machine learning, and data analytics. GPUs currently lead the market, but ASICs are expected to grow fastest due to their efficiency. Cloud-based deployment is also anticipated to be the fastest-growing segment. North America currently holds the largest market share, but Asia Pacific is expected to see the fastest growth.

Nvidia takes $5 billion stake in Intel

Nvidia announced it will purchase $5 billion worth of Intel's common stock, making it a significant shareholder alongside the U.S. government. This investment, priced at $23.28 per share, will give Nvidia over 4% of Intel. The move is part of an effort to boost U.S. semiconductor manufacturing and strengthen the nation's position in the global chip industry. Nvidia and Intel will also collaborate on custom data center and personal computing products, a partnership analysts believe is crucial for Intel's entry into the AI market.

Nasdaq's AI stocks Nvidia and Atlassian show strong potential

Analysts suggest that the Nasdaq Composite index may see significant growth, with a particular focus on artificial intelligence (AI) stocks. Nvidia, a leader in AI chips, is expected to benefit from continued demand for its GPUs, with analysts predicting a 26% upside. Atlassian, a software company integrating AI into its work management tools, is also seen as a strong performer, with analysts forecasting a 45% upside. Both companies are considered undervalued and poised for growth within the expanding AI market.

Numeral raises $35M for AI-powered sales tax automation

Numeral, a startup focused on automating sales tax compliance using artificial intelligence, has raised $35 million in Series B funding. The company's AI platform handles complex sales tax laws across over 11,000 jurisdictions, aiming to simplify the process for e-commerce businesses. Numeral's AI can manage tax filing and payments, reducing the burden on businesses that previously struggled with varying state regulations. The funding will support Numeral's continued growth and international expansion, differentiating it from competitors.

FactSet anticipates sales growth amid AI transformation

FactSet Research Systems reported quarterly sales of $596.9 million, exceeding analyst expectations and showing a 6.2% year-over-year increase. While earnings per share missed estimates, organic revenue grew by 4.5%. The company added 185 new clients, primarily in corporate and wealth management sectors, and its Annual Subscription Value reached $2.406 billion. CEO Sanoke Viswanathan highlighted that FactSet is at a key point with AI and data innovation transforming financial workflows. The company projects strong revenue growth for the upcoming year.

Tempus AI stock surges on AI-driven healthcare innovation

Tempus AI, a healthcare technology company, has seen its stock more than double in 2025, driven by its use of AI in personalized medicine and drug discovery. The company leverages a large multimodal data library to power AI tools that assist physicians and accelerate research. Recently, the FDA granted clearance for its AI-powered cardiac imaging platform, Tempus Pixel. In its second quarter of fiscal year 2025, Tempus reported revenue of $314.6 million, an 89.6% year-over-year increase, with strong growth in genomics and data services. Analysts remain positive on the stock, citing its strong execution and innovative AI applications.

Twilio stock undervalued with AI-driven growth potential

Twilio, a cloud communications company, is trading at an attractive valuation despite underperforming the Nasdaq Composite in 2025. The company is integrating AI tools into its offerings, which help businesses automate customer support, gain insights from interactions, and personalize customer messages. Twilio's second-quarter revenue increased by 13% year-over-year to $1.23 billion, with GAAP earnings up 37%. The company's active customer accounts grew 10%, and its dollar-based net expansion rate rose to 108%, indicating existing customers are spending more. Analysts predict significant stock price appreciation for Twilio.

Sources

AI GPUs Nvidia Broadcom Oracle Cloud Infrastructure ASICs AMD TSMC AI Spending Atlassian Hardware Acceleration Machine Learning Data Analytics Intel Semiconductor Manufacturing Sales Tax Automation Numeral FactSet Financial Workflows Tempus AI Personalized Medicine Drug Discovery Healthcare Technology Twilio Cloud Communications Customer Support Automation