September 15, 2025

finance  
Nvidia Revenue Hits $130B, Microsoft Deal $19.4B

The artificial intelligence sector continues its rapid expansion, with significant developments across hardware, infrastructure, and software. Nvidia, a dominant force in AI chips, is projected to reach a $10 trillion market valuation within five years, fueled by its revenue surge from $27 billion to over $130 billion in two years. The demand for its GPUs remains exceptionally high. In a major infrastructure deal, Nvidia-backed Nebius Group has secured a capacity agreement with Microsoft, potentially worth up to $19.4 billion through 2031 for its New Jersey data center. This news propelled Nebius's stock up nearly 50%. Beyond Nvidia, other companies are making significant strides. Oracle is experiencing robust growth in its cloud infrastructure, driven by AI demand, with its Remaining Performance Obligations increasing by $317 billion. Cantor Fitzgerald has raised Oracle's stock target to $400 based on this AI cloud growth. CoreWeave, a specialized AI cloud platform, has seen its revenue triple, working closely with Nvidia. Broadcom is also making waves, having secured a $10 billion deal for custom AI chips, signaling a move towards specialized hardware beyond traditional GPUs. Taiwan Semiconductor Manufacturing Company (TSMC) is also benefiting from AI demand, with Bernstein raising its stock target to $290 and anticipating 33% revenue growth for the year. In the robotics and embodied AI space, Shenzhen-based X Square Robot has raised approximately $100 million, led by Alibaba, bringing its total funding to around $280 million. This investment supports their development of humanoid robots for various sectors, with plans for an IPO next year. Meanwhile, Goldman Sachs highlights that companies are prioritizing AI investments over stock buybacks, a trend supported by McKinsey's estimates of trillions in annual economic benefits from generative AI. However, Goldman Sachs also warns that a slowdown in AI spending could lead to a 20% drop in the stock market. Palo Alto Networks is enhancing its AI security offerings with the launch of Prisma SASE 4.0, reinforcing its AI-powered cloud security strategy.

Key Takeaways

  • Nvidia is poised for a $10 trillion market valuation in five years, with its revenue growing from $27 billion to over $130 billion in two years.
  • Nvidia-backed Nebius Group secured a deal with Microsoft for data center capacity, potentially worth up to $19.4 billion through 2031.
  • Oracle's cloud infrastructure business is growing rapidly due to AI demand, with Cantor Fitzgerald raising its stock target to $400.
  • Broadcom has signed a $10 billion deal for custom AI chips, indicating a shift towards specialized AI hardware.
  • TSMC's stock target has been raised to $290 by Bernstein, anticipating 33% revenue growth driven by strong AI demand.
  • Alibaba led a $100 million investment in X Square Robot, a startup focused on embodied AI and humanoid robots, bringing its total funding to $280 million.
  • Companies are prioritizing AI investments over stock buybacks, as AI spending accelerates.
  • Goldman Sachs warns that a slowdown in AI spending could cause a 20% drop in the stock market.
  • Palo Alto Networks launched Prisma SASE 4.0 with new AI security features to bolster its cloud security solutions.
  • CoreWeave, an AI cloud platform, has tripled its revenue and works closely with Nvidia.

Nvidia-backed Nebius Group lands $19B Microsoft deal

Nebius Group, an AI infrastructure company backed by Nvidia, has signed a major deal with Microsoft. The agreement will provide Microsoft with capacity from Nebius's New Jersey data center, potentially worth up to $19.4 billion through 2031. This deal caused Nebius's stock to surge nearly 50%. Nebius, which was formed from assets of the Russian company Yandex, operates data centers in multiple countries and focuses on AI applications. Analysts are optimistic about Nebius's future, with one firm raising its price target significantly.

Nvidia poised for $10 trillion valuation in five years

Nvidia, the leading designer of AI chips, is predicted to reach a $10 trillion market valuation within five years. The company's revenue has surged from $27 billion to over $130 billion in just two years, driving its market cap to $4.3 trillion. This growth is fueled by the high demand for its powerful GPUs, which are essential for AI tasks. Analysts expect AI infrastructure spending to reach $4 trillion by the end of the decade, with Nvidia potentially capturing a significant portion of this market.

Oracle, CoreWeave, Broadcom may beat Magnificent Seven in AI

Three companies, Oracle, CoreWeave, and Broadcom, are predicted to outperform the 'Magnificent Seven' stocks over the next decade due to their strong positions in the AI market. Oracle is experiencing rapid growth in its cloud infrastructure business driven by AI demand. CoreWeave, a specialized AI cloud platform, works closely with Nvidia and has seen its revenue triple. Broadcom recently secured a $10 billion deal for custom AI chips, indicating a significant shift in AI hardware.

Bernstein raises TSMC stock target to $290 on AI demand

Bernstein SocGen Group analyst Mark Li has increased the price target for Taiwan Semiconductor Manufacturing Company Limited (TSMC) to $290, maintaining an Outperform rating. This adjustment is based on a more optimistic outlook for artificial intelligence demand. The firm anticipates TSMC will achieve 33% revenue growth for the year, exceeding its previous guidance. Strong AI demand, along with a recovery in non-AI segments, supports this positive forecast.

TSMC price target boosted to $290 amid strong AI demand

Analyst Mark Li from Bernstein SocGen Group has raised the price target for Taiwan Semiconductor Manufacturing Company Limited (TSMC) to $290, keeping an Outperform rating. This move is driven by a stronger artificial intelligence outlook, with the firm expecting 33% revenue growth for the year. Export data and customer signals indicate a rapid near-term ramp and robust AI demand for the upcoming year. Non-AI demand is also showing signs of recovery.

Goldman Sachs warns AI slowdown could drop stock market 20%

Goldman Sachs warns that a slowdown in artificial intelligence spending could lead to a 20% drop in the stock market. Analyst Ryan Hammond noted that a return of long-term growth estimates to early 2023 levels could cause a significant valuation decrease for the S&P 500. While current AI spending is high, some analysts predict a deceleration in late 2025 and 2026. The stock market's performance is heavily influenced by AI, with companies like Nvidia making up a substantial portion of major indexes.

AI spending sidelines stock buybacks, Goldman Sachs reports

Goldman Sachs reports that companies are prioritizing artificial intelligence investments over stock buybacks. This shift means less capital is available for buyback programs as spending on AI accelerates. McKinsey estimates generative AI could deliver trillions in economic benefits annually, making it a compelling investment for tech giants. While stock buybacks may not disappear entirely, they are expected to be less prevalent in the near future due to the ongoing AI spending surge.

Alibaba leads $100M investment in X Square Robot for AI advancements

Shenzhen-based startup X Square Robot has secured about $100 million in funding, led by Alibaba Group Holding through Alibaba Cloud. This investment brings the startup's total funding to around $280 million since its launch in December 2023. X Square Robot is focused on developing embodied AI and next-generation humanoid robots, with current sales to educational, hospitality, and senior care facilities. The company plans to prepare for an IPO next year and is expanding internationally.

Alibaba leads $100M funding for X Square Robot's AI and robotics

X Square Robot, a startup based in Shenzhen, has received approximately $100 million in funding, with Alibaba Group Holding leading the investment through Alibaba Cloud. This brings the company's total funding to about $280 million since its inception in December 2023. X Square Robot is developing embodied AI and advanced humanoid robots, already generating revenue from educational, hospitality, and senior care clients. The company aims to make humanoid robots more affordable for consumers within three to five years and plans to prepare for an IPO next year.

NVIDIA is a top AI stock choice for investors

NVIDIA is highlighted as a leading artificial intelligence stock due to its dominance in AI hardware, particularly its high-performance GPUs essential for training AI models. The company also develops AI software and solutions for various applications like autonomous vehicles and healthcare. NVIDIA's financial performance has been strong, driven by high demand for its AI products. Despite competition and potential risks, NVIDIA's innovation and market position make it a compelling choice for long-term growth portfolios.

Cantor Fitzgerald raises Oracle stock target to $400 on AI cloud growth

Cantor Fitzgerald has increased its price target for Oracle Corporation to $400, maintaining an Overweight rating. This decision follows Oracle's significant growth in AI-related contracts, which are driving its cloud business. The company reported a 359% year-over-year increase in Remaining Performance Obligations, adding $317 billion. Oracle has also raised its cloud infrastructure estimates with revenue guidance extending to fiscal year 2030, positioning the company to benefit from long-term AI trends.

Salem Investment Counselors increases stake in Tempus AI

Salem Investment Counselors Inc. significantly increased its stake in Tempus AI, Inc. during the second quarter, acquiring an additional 30,075 shares. The firm now owns 30,450 shares, representing 0.09% of the company's outstanding stock. Tempus AI provides artificial intelligence solutions across various industries. The company's stock has shown stability over the past year, trading between $1.00 and $1.00, with analysts expecting a specific earnings per share for the current fiscal year.

Palo Alto Networks' AI security launch boosts investment story

Palo Alto Networks has launched Prisma SASE 4.0 with new AI security features, reinforcing its strategy of offering AI-powered cloud security solutions. This development supports the company's recurring revenue model and margin potential. While the immediate impact on Secure Access Service Edge (SASE) annual recurring revenue may be incremental, the launch aligns with the company's focus on expanding its SASE portfolio. Integration risks from acquisitions remain a consideration for short-term earnings.

Broadcom's $10B deal signals new era in AI investing

Broadcom's recent $10 billion deal for custom AI chips, known as XPUs, marks a significant shift in AI hardware, moving beyond Nvidia's GPUs. This move indicates that hyperscalers are increasingly opting for specialized chips tailored to specific AI workloads. This transition is expected to redirect billions of dollars across the semiconductor supply chain, creating new opportunities. While GPUs will remain important for training large models, XPUs are poised to dominate inference and other specialized tasks.

Sources

AI infrastructure Microsoft Nebius Group Nvidia Nvidia GPUs AI chips market valuation AI hardware AI cloud platform Oracle CoreWeave Broadcom TSMC AI demand semiconductor AI spending stock market Alibaba X Square Robot humanoid robots embodied AI robotics AI stock AI solutions Tempus AI Palo Alto Networks AI security cloud security SASE custom AI chips semiconductor supply chain