June 28, 2025

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Nvidia, Microsoft Eye $4T, Meta Invests $14.3B in Scale AI

The S&P 500 and Nasdaq both hit record highs recently, fueled by enthusiasm for AI and expectations of interest rate cuts. Nvidia is at the forefront of this surge, with analysts predicting its stock, along with Microsoft's, could reach a $4 trillion market value this summer. Nvidia's dominance in the AI chip market, holding approximately 92% market share for data centers, positions it for continued growth, with its stock already up 900% since 2023. Other companies are also making significant strides in the AI space. Meta is increasing its AI investments, even hiring Alexandr Wang from Scale AI, to compete with OpenAI, while Palantir's stock reached a record high after partnering with The Nuclear Company to develop AI-driven software for nuclear plant construction. GitLab is integrating AI to boost its DevSecOps business, with its AI assistant, GitLab Duo, adding $50,000 to $100,000 per year to enterprise contracts. SoundHound AI is experiencing growth in the voice AI market, and Manta AI received a $2 million investment to enhance data science accessibility. Investors are also looking beyond Nvidia, with Solaris Energy Infrastructure, Marvell Technology, Broadcom, Oracle, and Pagaya Technologies identified as potential AI stocks. Meta's commitment to AI is further underscored by its acquisition of a 49% stake in Scale AI for $14.3 billion to improve data annotation for AI models like Llama. Overall, the AI sector is experiencing a broad upswing, driving market records and attracting substantial investment.

Key Takeaways

  • S&P 500 and Nasdaq reached record highs driven by AI optimism and anticipated interest rate cuts.
  • Analysts predict Nvidia and Microsoft could reach $4 trillion market values this summer.
  • Nvidia's stock has increased by 900% since 2023, dominating the AI chip market with a 92% share for data centers.
  • Meta is increasing AI investments to compete with OpenAI, hiring Alexandr Wang from Scale AI.
  • Palantir's stock hit a record high after partnering with The Nuclear Company to develop AI software for nuclear plants.
  • GitLab's AI assistant, GitLab Duo, adds $50,000 to $100,000 per year to enterprise contracts.
  • SoundHound AI is growing in the voice AI market, with revenue expected to grow roughly 27% next year.
  • Manta AI received a $2 million investment from Equal Opportunity Ventures to advance data science accessibility.
  • Solaris Energy Infrastructure, Marvell Technology, Broadcom, Oracle, and Pagaya Technologies are identified as potential AI stocks beyond Nvidia.
  • Meta acquired a 49% stake in Scale AI for $14.3 billion to improve data annotation for AI models.

S&P 500 and Nasdaq hit record highs amid AI and rate cut hopes

The S&P 500 and Nasdaq reached all-time highs on Friday because of growing excitement around AI and possible interest rate cuts. The S&P 500 increased by 0.7% to 6,183, passing its previous high from February. The Nasdaq rose 0.5% to 20,275, exceeding its December record. Optimism about interest rate cuts later this year and easing global tensions helped boost the market. Nvidia shares jumped 1.4% to $157.23, and analysts predict Nvidia and Microsoft could reach $4 trillion market values this summer.

AI enthusiasm and rate cut hopes drive S&P 500 and Nasdaq to records

On Friday, the S&P 500 and Nasdaq Composite both reached record highs due to renewed enthusiasm for AI and expectations of looser monetary policy. The S&P 500 rose 0.59% to 6,178.80, while the Nasdaq gained 0.59% to 20,299.72. Markets were boosted by chipmaker Micron's positive outlook and Nvidia's approach to a $4 trillion market value. A U.S.-brokered ceasefire between Israel and Iran also helped ease market worries. Investors are also anticipating potential interest rate cuts, further fueling the market's rise.

Nvidia stock predicted to beat the market in the next decade

Nvidia is expected to outperform the market in the next decade because of the ongoing AI boom. Nvidia's stock has already increased by 900% since 2023. Companies are investing heavily in data centers for AI, potentially reaching $7 trillion by 2030. Nvidia dominates the AI chip market for data centers with about 92% market share. Analysts estimate Nvidia's earnings will grow by nearly 29% annually, making its valuation reasonable for future growth.

SoundHound AI poised for growth in voice AI market

SoundHound AI, a leader in voice AI technology, has seen its stock price rise over 205% in the past three years. Specializing in voice AI gives SoundHound AI an advantage over larger competitors. The company also takes a neutral approach with customers, offering white-label technology. SoundHound AI is expanding beyond the automotive industry and growing in new markets. Analysts estimate revenue will grow roughly 27% next year, making its stock a potentially lucrative long-term investment.

GitLab's AI integration drives potential for stock re-evaluation

GitLab, a DevSecOps leader, is integrating AI to transform its business, with Q1 2025 revenue growing 33% year-over-year. GitLab Duo, an AI assistant, improves customer retention and drives enterprise adoption. The company's AI tools directly generate revenue, adding $50,000 to $100,000 per year to enterprise contracts. GitLab's focus on security has earned it certifications like FedRAMP and HIPAA compliance. Analysts suggest the stock is undervalued and has potential for a 50% upside.

Manta AI receives investment to advance data science accessibility

Manta AI, an AI platform focused on making data science more accessible, received a $2 million investment from Equal Opportunity Ventures. Manta enables organizations to ask questions and receive answers in minutes, without needing a full analytics team. Equal Opportunity Ventures supports technologies that help public-serving organizations make faster decisions. Manta aims to provide organizations with the same analytical capabilities as top universities and Silicon Valley teams. The investment will help Manta scale its vision and reach more people.

Five AI stocks to watch that aren't Nvidia

Investors seeking AI stocks beyond Nvidia can explore options using the Zacks Rank system. Rising earnings estimates can indicate a company's involvement in the AI Revolution. Solaris Energy Infrastructure, Marvell Technology, Broadcom, Oracle, and Pagaya Technologies are highlighted as potential AI stocks. Solaris Energy benefits from data center customers and pays a dividend. Pagaya Technologies is bringing AI tools to finance and lending.

Palantir stock hits record high with nuclear plant software deal

Palantir Technologies' stock reached a record high after partnering with The Nuclear Company. They will develop NOS, an AI-driven software system for nuclear construction. The goal is to build nuclear plants faster, safer, and at lower costs. Palantir's software will help power the next generation of nuclear energy infrastructure. Palantir shares finished up nearly 1% to $144.25, a closing record, and are up more than 90% this year.

Meta increases AI spending amid rising competition

Mark Zuckerberg is increasing Meta's investment in AI after the company's new AI model underperformed. Zuckerberg wants Meta's AI to rival systems from OpenAI. He demoted a vice president and hired Alexandr Wang from Scale AI. Meta is also trying to hire AI researchers from OpenAI, offering high compensation packages. This push aims to improve Meta's AI capabilities and catch up with competitors.

Meta and Tesla: Long-term investments with AI potential

Meta and Tesla are becoming promising long-term investments due to their AI and robotics work. Meta is investing heavily in AI infrastructure, acquiring a 49% stake in Scale AI for $14.3 billion. This aims to improve data annotation for training AI models like Llama. Tesla focuses on AI through autonomous driving technologies. Both companies are strategically using AI to transform their business models.

Nvidia stock extends winning streak as AI trade rebounds

Nvidia shares are on track for a fifth straight day of gains as the AI trade is making a comeback. The chipmaker's stock has jumped 14% over the past four days. Nvidia's chips are essential for running AI applications, driving high demand. Other AI-related stocks like Palantir and C3.ai are also performing well. Investors are increasingly optimistic about the potential of AI technology.

Sources

AI Artificial Intelligence S&P 500 Nasdaq Stock Market Interest Rate Cuts Nvidia Microsoft Micron SoundHound AI Voice AI GitLab DevSecOps Manta AI Data Science Equal Opportunity Ventures Zacks Rank Solaris Energy Infrastructure Marvell Technology Broadcom Oracle Pagaya Technologies Palantir Technologies Nuclear Energy Meta OpenAI Alexandr Wang Scale AI Tesla Autonomous Driving C3.ai AI Chips Data Centers Investment Market Analysis Earnings Estimates Revenue Growth Stock Performance Long-Term Investment Robotics Llama AI Models Data Annotation Monetary Policy Market Value AI Revolution White-label Technology FedRAMP HIPAA AI Assistant Nuclear Plant Software