The artificial intelligence sector continues to see significant activity, with major players and emerging startups making strategic moves. Nvidia, a dominant force in AI hardware, is receiving strong analyst backing, with HSBC upgrading its stock to 'buy' and setting a $320 price target, suggesting nearly 80% upside potential. This optimism is fueled by the expanding market for AI GPUs, crucial for developing advanced AI models. Meanwhile, AI startup Anthropic is projecting substantial revenue growth, aiming for up to $26 billion annually by 2026, and has secured a significant deal with Accenture to deploy its AI assistant, Claude. In the realm of AI-powered robotics, Serve Robotics, which utilizes Nvidia's Jetson Orin platform, is expanding its autonomous delivery robot fleet and has a major partnership with Uber, which plans to deploy 2,000 of Serve's robots onto its Uber Eats network by the end of 2025. Marvell Technology is also positioned as a key player in AI infrastructure, providing essential semiconductor solutions for cloud growth and data centers. On the corporate front, Amazon is reportedly undergoing a restructuring that includes job cuts in HR as it invests in AI and cloud data centers, with CEO Andy Jassy suggesting AI and automation could impact white-collar roles. Other companies like Applied Digital are experiencing strong growth in AI server infrastructure, while Proto Labs has appointed a new Chief Technology and AI Officer to drive innovation. The broader market is also considering AI-focused companies like The Trade Desk and Lemonade as strong investment opportunities.
Key Takeaways
- HSBC has upgraded Nvidia stock to 'buy' with a price target of $320, indicating an almost 80% potential upside, driven by optimism in the AI GPU market.
- AI startup Anthropic projects revenues of up to $26 billion by 2026 and is on track for a $9 billion revenue run rate by the end of this year.
- Serve Robotics, using Nvidia's Jetson Orin platform, plans to deploy 2,000 delivery robots with Uber Eats by the end of 2025 and has completed over 100,000 deliveries.
- Marvell Technology is identified as a key AI infrastructure stock with a 'buy' rating and a price target of $119.47, suggesting a 34% potential upside.
- Amazon is reportedly laying off HR staff as it invests in AI and cloud data centers, with CEO Andy Jassy acknowledging potential impacts of AI on white-collar jobs.
- Proto Labs appointed a new Chief Technology and AI Officer to integrate AI into its manufacturing operations.
- Applied Digital reported 84% year-over-year revenue growth, driven by demand for AI server infrastructure.
- The Trade Desk and Lemonade are highlighted as top AI stocks, leveraging AI for digital advertising optimization and insurance business, respectively.
- A consortium including Nvidia and Microsoft is reportedly planning to acquire Aligned Data Centers for $40 billion.
- AI startup ENDOless is using AI and data analysis to diagnose and treat endometriosis, aiming to raise 2 million euros for expansion.
HSBC upgrades Nvidia stock, sees nearly 80% upside potential
HSBC has upgraded its rating on Nvidia stock to 'buy' from 'hold', citing the significant growth potential driven by artificial intelligence. The bank also raised its price target to $320, suggesting an almost 80% increase from its recent closing price. This upgrade implies a potential market capitalization nearing $8 trillion. Analyst Frank Lee believes the total addressable market for AI GPUs will continue to grow beyond major cloud providers, leading to sustained earnings growth for Nvidia. Currently, over 90% of analysts recommend buying Nvidia stock.
Nvidia stock gets 'buy' rating from HSBC on AI optimism
HSBC analyst Frank Lee upgraded Nvidia to 'buy' from 'hold', predicting that artificial intelligence will drive substantial growth for the chipmaker. Lee increased the price target to $320, indicating an almost 80% potential upside from Nvidia's last closing price of $180.03. He sees AI as a transformative technology boosting demand for Nvidia's GPUs, which are crucial for AI development. The analyst believes Nvidia's market leadership and strong partnerships position it well to benefit from this trend, especially with innovations like the Hopper architecture.
HSBC boosts Nvidia rating, citing expanding AI market
HSBC has upgraded Nvidia to a 'buy' rating from 'hold', believing the market for AI GPUs will continue to grow. Analyst Frank Lee also raised his price target to $320 per share, suggesting a significant upside from its recent closing price. This move leaves very few major analysts with a cautious rating on the AI leader. Lee's optimism stems from an increased total addressable market for GPUs in fiscal year 2027 and potential demand recovery in China, which could lead to higher earnings.
Serve Robotics stock could jump 40% says analyst
Serve Robotics, a company specializing in autonomous sidewalk delivery robots, is gaining traction in the urban logistics market. Formerly Uber's robotics division, Serve has deployed 1,000 robots in five cities, completing over 100,000 deliveries. Analyst Michael Latimore maintains a 'buy' rating with a $23 price target, suggesting a 40% potential increase from its recent price. The company aims to expand its fleet to 2,000 robots by the end of 2025 and is partnering with DoorDash and Little Caesars to broaden its delivery network.
Uber backs Serve Robotics stock with 67% annual gain
Serve Robotics, which develops autonomous delivery robots, has seen its stock soar by 67% over the past year, supported by a major partnership with Uber Technologies. Uber is also a significant shareholder in Serve, with plans to deploy 2,000 of Serve's Gen 3 robots into the Uber Eats network by the end of 2025. These robots use Nvidia's Jetson Orin platform for AI-powered autonomous operation. Serve aims to capture a large market opportunity in last-mile delivery and has also partnered with DoorDash.
Marvell Technology: Key AI infrastructure stock for cloud growth
Marvell Technology is a crucial provider of semiconductor solutions powering the growth of cloud computing and AI. The company designs essential components for data center networking, connectivity, and processing. Marvell is well-positioned to benefit from the increasing demand for AI infrastructure, cloud expansion, and high-speed optical interconnects. Its ability to create custom silicon for hyperscale cloud providers is a significant advantage. Analysts initiate coverage with a 'buy' rating and a price target of $119.47, suggesting a 34% potential upside.
AI startup Anthropic targets $26 billion revenue by 2026
AI startup Anthropic is projecting a significant revenue increase, aiming for up to $26 billion annually by 2026, driven by high demand for its AI products. The company is on track to reach an $9 billion revenue run rate by the end of this year and aims to more than double its revenue to $20 billion next year. Anthropic, a competitor to OpenAI, was recently valued at $183 billion after raising $13 billion. It launched a new, cheaper AI model called Haiku and has secured a major deal with professional services firm Accenture to deploy its AI assistant, Claude.
Proto Labs stock may rise after AI leadership appointment
Proto Labs has appointed Marc Kermisch as its new Chief Technology and AI Officer, signaling a strong commitment to integrating artificial intelligence into its manufacturing operations. Kermisch brings extensive experience from companies like Amazon and General Motors, focusing on technology, manufacturing, and software. His leadership is expected to drive innovation, optimize production processes, and enhance customer experience. This strategic move could significantly alter the company's future prospects and potentially boost investor confidence in Proto Labs stock.
AI startup ENDOless uses data to treat endometriosis
ENDOless is a startup using artificial intelligence and data analysis to help diagnose and treat endometriosis, a condition affecting one in ten women. The company is developing an app to provide personalized insights and predict flare-ups, aiming to reduce the current seven-year diagnostic delay. Anonymized user data will be sold to healthcare providers to improve treatment plans. ENDOless plans to become a global platform assisting 190 million women and generating valuable data for research, with a goal of raising 2 million euros to expand its pilot project.
The Trade Desk and Lemonade: Top AI stocks to buy now
The Trade Desk and Lemonade are highlighted as two top AI stocks to consider in October 2025. The Trade Desk uses AI to optimize digital advertising across various platforms, demonstrating resilience even in economic downturns. Lemonade leverages AI for its insurance business, allowing for rapid policy underwriting and claims processing, with its stock showing significant growth. Both companies utilize proprietary AI systems as a core competitive advantage, making them strong investment opportunities beyond the more commonly discussed AI hardware and cloud providers.
Applied Digital: Strong AI infrastructure play with high growth
Applied Digital reported strong first-fiscal-quarter results, driven by high demand for AI server infrastructure. The company achieved 84% year-over-year revenue growth by shifting focus from crypto mining to high-performance data centers. Key projects like the $5.0 billion Macquarie deal and the Polaris Forge 1 Data Center position Applied Digital for further expansion. Despite a forward revenue valuation of 18.5X, its relatively low market cap suggests room for growth as deal sizes increase, making it an attractive AI infrastructure investment.
Amazon hints at job cuts amid AI-driven restructuring
Amazon is reportedly laying off HR staff while investing heavily in AI and cloud data centers, signaling a move towards automation. CEO Andy Jassy has indicated that AI and automation may reduce some white-collar jobs in the future, urging employees to adapt. Meanwhile, a consortium including Nvidia and Microsoft plans to acquire Aligned Data Centers for $40 billion to expand AI infrastructure. Analysts note increased adoption of generative AI, with Walmart enhancing its AI shopping experience. Concerns about an AI-driven stock market bubble are also rising among fund managers.
Sources
- Nvidia Upgraded at HSBC as AI Suggests Upside of Nearly 80%
- Nvidia Upgraded at HSBC as AI Suggests Upside of Nearly 80%
- HSBC upgrades Nvidia, leaving few cautious analysts left on AI leader
- 1 AI and Robotics Stock to Buy Before It Soars by 40% to $23 a Share, According to a Wall Street Expert
- Uber Is Backing This Artificial Intelligence (AI) Stock That Soared 67% Over the Past Year. Should You? @themotleyfool #stocks $SERV
- Marvell Technology: The Overlooked AI Infrastructure Stock Powering Cloud Growth (MRVL)
- Anthropic targets $26 billion revenue by 2026 on AI demand
- The Bull Case for Proto Labs (PRLB) Could Change Following Appointment of Chief Technology and AI Officer
- Startup, ENDOless: Artificial Intelligence and Data to Treat Endometriosis
- 2 Top Artificial Intelligence Stocks to Buy Right Now
- Applied Digital: A Strong Play On The AI Boom (NASDAQ:APLD)
- Wall Street Lunch: Amazon Hints At Job Cuts In AI-Driven Restructure (undefined:AMZN)