September 13, 2025

finance  
Nvidia Rubin CPX, Microsoft $368B Backlog, Google Cloud

The artificial intelligence landscape continues to see significant shifts, with Nvidia maintaining its dominance in AI chips while facing competition and evolving market dynamics. Nvidia recently launched its Rubin CPX AI chip system, designed for AI-led video and software creation, boasting 8 exaflops of AI performance. Despite this, other companies are making notable strides. Microsoft is projected to potentially surpass Nvidia as the world's largest company by 2030, driven by its strong Azure cloud business and a substantial commercial bookings backlog of $368 billion. Microsoft also recently gained attention for a deal with OpenAI. Broadcom is also a key player, securing major clients like Alphabet, Meta Platforms, and ByteDance for its custom AI chips, and has a $10 billion order from OpenAI, with future work planned for Apple. Competitors like AMD are also aiming to capture market share in AI inference workloads. In the AI cloud infrastructure space, CoreWeave is positioned for strong growth with a $30.1 billion backlog from clients including Microsoft, OpenAI, and Google Cloud, offering a more attractive investment than Nebius Holdings, which secured a $19.4 billion contract with Microsoft. Oracle is also rapidly expanding its data center capacity to meet AI cloud service demand, positioning itself alongside Microsoft, Google, and Amazon. Beyond hardware, Zscaler's stock has jumped 59% in 2025 due to its AI-centric cybersecurity solutions, outperforming Nvidia. Twilio is also seeing growth, focusing on being the 'communications backbone for the AI ecosystem.' Meanwhile, Alibaba is investing $3.2 billion in AI infrastructure, upgrading its Qwen AI models and exploring in-house chips. Adobe is also seeing strong AI adoption, integrating AI tools into its workflows. In the energy sector, Greenvoltis secured funding for its AI-powered energy technology platform. Amidst these developments, Wall Street has seen mixed trading, with optimism in AI stocks like Oracle and Microsoft, though consumer sentiment has dropped.

Key Takeaways

  • Nvidia launched its new Rubin CPX AI chip system, offering 8 exaflops of AI performance for video and software creation.
  • Microsoft is projected to potentially become the world's largest company by 2030, fueled by its Azure cloud growth and a $368 billion commercial bookings backlog.
  • Broadcom is securing significant AI chip orders from major clients including OpenAI ($10 billion) and is expected to work with Apple.
  • CoreWeave, an AI cloud infrastructure provider, holds a $30.1 billion backlog from Microsoft, OpenAI, and Google Cloud.
  • Zscaler's stock has risen 59% in 2025, outperforming Nvidia, due to its AI-centric cybersecurity solutions.
  • Twilio is positioning itself as the 'communications backbone for the AI ecosystem,' showing strong financial acceleration.
  • Alibaba is investing $3.2 billion in AI infrastructure and developing its own chips to reduce reliance on foreign hardware.
  • Oracle is expanding its data center capacity to meet the high demand for AI cloud services, competing with Microsoft, Google, and Amazon.
  • Nvidia holds a dominant 94% share of the AI GPU market, while Broadcom leads the ASIC market with 70% share.
  • Marvell Technology offers custom ASICs as cost-effective alternatives to generic chips and is considered a bargain AI stock with a P/E multiple of 22.

Nvidia vs. Broadcom: Which AI chip stock is a better buy?

Nvidia leads the AI graphics card market, while Broadcom's custom AI processors are gaining traction. Both companies are poised for long-term growth in the expanding AI chip market. Nvidia holds a dominant 94% share of the GPU market due to its technological lead and manufacturing capacity from TSMC. Broadcom, controlling 70% of the ASIC market, is experiencing rapid AI revenue growth. While both are strong, Nvidia's stock appears more attractive due to its faster earnings growth and lower valuation multiples compared to Broadcom.

Zscaler stock outperforms Nvidia in 2025 with AI cybersecurity focus

Zscaler, a cybersecurity company, has seen its stock price jump 59% in 2025, outperforming Nvidia's 32% gain. This growth is driven by Zscaler's focus on AI-centric cybersecurity solutions, including protecting AI applications and offering agentic AI cybersecurity tools. The company's contractual backlog has also significantly increased, indicating strong future business. Analysts expect Zscaler to continue growing faster than the zero-trust security market, making it an attractive alternative to Nvidia.

CoreWeave stock is a cheaper alternative to Nebius in AI data centers

Nebius Holdings stock surged nearly 50% after securing a $19.4 billion contract with Microsoft for AI data center capacity. However, CoreWeave, another AI cloud infrastructure provider, offers a more attractive investment opportunity. CoreWeave's revenue jumped 207% in Q2 2025, and it holds a $30.1 billion backlog from major clients like Microsoft, OpenAI, and Google Cloud. With more active and contracted data center capacity than Nebius and a significantly lower valuation, CoreWeave is positioned for strong future growth.

Microsoft could overtake Nvidia as the world's largest company by 2030

Microsoft is projected to potentially surpass Nvidia as the world's most valuable company by 2030. While Nvidia leads in AI chips, Microsoft's strong performance in cloud computing, particularly its Azure business, and its significant commercial bookings backlog of $368 billion are driving substantial growth. Analysts expect Microsoft's revenue to reach $562 billion by 2030, and its current lower valuation compared to Nvidia suggests significant upside potential. Microsoft's ongoing investment in AI data centers further strengthens its position.

Twilio stock is a buy as AI fuels its growth

Twilio, a provider of cloud communication solutions, is showing strong financial acceleration, with revenue up 13% year-over-year in Q2 2025. The company's focus on being the 'communications backbone for the AI ecosystem' and its growing shareholder returns have led to positive analyst ratings. Despite past volatility, Twilio's expanding margins and free cash flow generation suggest a sustainable shift. With a consensus price target of $131.79, analysts see significant upside potential for the stock.

Nvidia launches Rubin CPX AI chips, analysts remain optimistic

Nvidia has unveiled its new Rubin CPX chip system, designed for AI-led video and software creation, boasting 8 exaflops of AI performance. This platform, based on the successor to Blackwell chips, uses a monolithic die design for efficient performance. Nvidia's financial performance remains strong, with Q2 2025 revenues of $46.7 billion, a 56% year-over-year increase. Analysts maintain a 'Strong Buy' rating on NVDA stock, with a mean target price of $211.07, citing its market leadership and expanding AI opportunities.

Broadcom stock is a buy despite hitting new highs on AI chip demand

Broadcom's stock has reached new all-time highs, driven by its custom AI chip business. The company designs application-specific integrated circuits (ASICs) for hyperscalers, offering tailored solutions that differ from Nvidia's GPUs. Broadcom has secured major clients like Alphabet, Meta Platforms, and ByteDance, with a potential market opportunity of $60 billion to $90 billion. The recent addition of OpenAI as a customer, with a $10 billion order, and future work with Apple, further solidifies Broadcom's strong growth prospects in the AI chip market.

AMD and Broadcom offer AI opportunities beyond Nvidia

While Nvidia dominates the AI infrastructure market, Advanced Micro Devices (AMD) and Broadcom present compelling investment opportunities. AMD is gaining traction in AI inference workloads with its GPUs, aiming to capture market share from Nvidia. Broadcom is a leader in custom AI chip design (ASICs), partnering with major tech companies like Alphabet, Meta Platforms, and potentially OpenAI and Apple. Both companies are well-positioned to benefit from the growing AI market, especially as it shifts towards inference and custom solutions.

Marvell Technology stock is a bargain AI chip investment

Marvell Technology, a custom chipmaker, posted nearly 60% revenue growth last quarter, but its stock has been impacted by underwhelming near-term guidance. Despite this, Marvell trades at a price-to-earnings multiple of 22, making it one of the cheapest AI stocks available. The company's ASICs offer cost-effective alternatives to generic chips, and it is well-positioned to play a vital role in AI's long-term growth as customers seek alternatives to Nvidia. Marvell's modest valuation and strong growth prospects make it an attractive buy on weakness.

Marvell Technology stock is a bargain AI chip investment

Marvell Technology, a custom chipmaker, posted nearly 60% revenue growth last quarter, but its stock has been impacted by underwhelming near-term guidance. Despite this, Marvell trades at a price-to-earnings multiple of 22, making it one of the cheapest AI stocks available. The company's ASICs offer cost-effective alternatives to generic chips, and it is well-positioned to play a vital role in AI's long-term growth as customers seek alternatives to Nvidia. Marvell's modest valuation and strong growth prospects make it an attractive buy on weakness.

Greenvoltis secures funding for AI energy innovation

Greenvoltis, a Swedish company, has secured multi-million dollar funding led by DeepMind Capital to advance its AI-powered energy technology platform. This investment will strengthen its position in the European flexibility market and support the region's transition to renewable energy. Greenvoltis uses an AI-native platform to enable intelligent grid participation for renewable asset owners and energy retailers. The company recently launched Aether, an AI trading platform, and Terra AI, a financial analysis tool for investors.

Alibaba invests $3.2B in AI, boosting stock performance

Alibaba's stock surged over 7% after raising $3.2 billion in convertible bonds to fund its AI infrastructure development. The company is upgrading its Qwen AI models and exploring the use of in-house chips to reduce reliance on foreign hardware like Nvidia's GPUs. While Alibaba is heavily investing in AI, its cloud division's profitability remains a concern. The company is also boosting e-commerce with consumer subsidies, leading to mixed analyst opinions on its strategy.

Adobe integrates AI, defying competition concerns

Adobe's stock is performing well due to strong AI adoption, with analysts Gil Luria and Pat Walravens discussing its position. Luria, a bull, highlights Adobe's successful integration of third-party AI tools and its focus on workflows, which maintains its value for enterprises. Walravens, while impressed by recent results, expresses caution about the platform shift and competition from tools like Canva and Figma, particularly with the younger generation. Despite challenges, Adobe's entrenched position and expanding creative class support its growth.

Wall Street sees mixed trading amid AI optimism and economic shifts

Wall Street experienced mixed trading, with the Nasdaq reaching intraday highs due to renewed optimism in AI stocks, particularly following Oracle's positive forecast. Microsoft also saw gains after a deal with OpenAI. However, consumer sentiment dropped in September, reinforcing expectations of interest rate cuts by the Federal Reserve. The energy sector performed strongly as oil prices rose, offsetting losses in other sectors. Despite economic concerns, major indexes are expected to close the week with gains.

Wells Fargo backs Nvidia stock amid AI growth opportunities

Wells Fargo reiterated an 'Overweight' rating on NVIDIA (NVDA) stock, citing its strong competitive position in gaming GPUs and expanding opportunities in data centers, high-performance computing, and emerging AI fields like autonomous vehicles and healthcare. NVIDIA specializes in AI-driven solutions for various sectors. While acknowledging NVDA's potential, the report suggests other AI stocks might offer greater upside and less risk.

Oracle is a leader in AI cloud infrastructure

Oracle's cloud business is performing strongly, with significant growth in both software as a service (SaaS) and infrastructure as a service (IaaS). The company has embraced a cloud-first strategy, evolving from its traditional software licensing model. Oracle is rapidly expanding its data center capacity to meet the high demand for AI cloud services, positioning itself as a key player alongside competitors like Microsoft, Google, and Amazon. This focus on infrastructure is becoming a major driver of Oracle's business.

Sources

AI chips Nvidia Broadcom Zscaler cybersecurity CoreWeave AI data centers Microsoft Twilio cloud communication Rubin CPX AMD ASICs Marvell Technology Greenvoltis AI energy Alibaba Adobe AI integration Nasdaq Oracle AI cloud infrastructure GPU market AI revenue growth zero-trust security cloud infrastructure provider cloud computing Azure AI ecosystem AI performance monolithic die design hyperscalers AI inference custom chipmaker AI stocks AI-powered energy technology AI trading platform AI infrastructure development in-house chips creative class AI optimism data centers high-performance computing autonomous vehicles healthcare SaaS IaaS