NVIDIA’s stock had been under pressure following concerns sparked by China’s AI firm DeepSight. However, it recently rebounded nearly 3% after major U.S. tech companies announced plans to ramp up AI investments in their earnings reports.
On Monday, NVIDIA’s stock rose 2.87% to close at $133.57 on the New York Stock Exchange, bringing its market cap to $3.271 trillion.
Amazon revealed last Thursday that it plans to invest $100 billion in AI this year, up from $83 billion last year. Microsoft plans to allocate $80 billion, while Alphabet, Google’s parent company, aims to invest $75 billion. Facebook’s parent company, Meta, has set aside $65 billion for AI investments.
According to Yahoo Finance, U.S. tech giants are expected to collectively invest $325 billion in AI this year, a 46% increase from last year’s $223 billion.
With big tech continuing to pour substantial resources into AI, NVIDIA’s stock appears to be stabilizing for a potential rebound.
Additionally, several investment firms have raised their target prices for NVIDIA.
On Monday, Evercore ISI analyst Mark Lipacis assigned NVIDIA an outperform rating ahead of its February 26 earnings report, setting a target price of $190—suggesting a potential 43% upside from the closing price. Argus Securities also issued a buy rating with a target price of $175.
Argus senior analyst Jim Kelleher noted that while competition in the AI sector is intensifying, NVIDIA has significant growth potential beyond data centers, particularly in gaming and automotive applications.