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Nvidia (NVDA) Stock Holds Strong as Tech Giants Commit Billions to AI Infrastructure
February 18, 2025 – CoinCentral
As the world becomes increasingly reliant on artificial intelligence (AI), tech giants are committing billions of dollars to AI infrastructure. This trend has led to Nvidia’s stock price holding strong, with expectations for a robust Q4 earnings report on February 26.
Analysts predict that Nvidia will post Q4 revenue of $38 billion and earnings per share of $0.84, representing year-over-year growth of 72% and 64%, respectively. The company has consistently exceeded analyst expectations since early 2023, further fueling investor optimism.
Notably, this quarter marks a significant inflection point for the company as it navigates an AI-driven market that is expected to be fueled by massive investments from major players like Amazon, Microsoft, Alphabet, and Meta Platforms.
Amazon leads the pack in planned AI infrastructure spending, committing $100 billion for 2025. CEO Andy Jassy emphasized that “the vast majority of that capex spend is on AI for AWS (Amazon Web Services).” Microsoft plans to invest $80 billion in AI through June 2025, with early results showing promise.
In addition to these significant investments, Alphabet and Meta Platforms have announced their own substantial spending plans. The companies will allocate $75 billion and $65 billion respectively towards data centers and AI infrastructure.
Nvidia’s growth is also being fueled by its diverse revenue streams. While the gaming segment remains a key source of revenue, it has seen acceleration over three consecutive quarters, reaching its highest level since May 2022. Furthermore, professional visualization, another essential division, has witnessed revenue more than double over the past two years.
Meanwhile, the company’s automotive and robotics divisions have exhibited steady growth across five consecutive quarters. This diversification offers a promising outlook for Nvidia’s future performance.
Nvidia’s commitment to innovation is also noteworthy. The development of its H100 and H200 GPU chips drives current revenue growth, while the Blackwell AI architecture enters production with CEO Jensen Huang describing demand as “insane.” The next-generation Rubin AI platform is planned for 2026, further solidifying Nvidia’s technological advantage.
Based on this data, analysts have projected an average 12-month price target of $175, approximately 26% above current trading levels near $138. This valuation is justified considering the company’s exceptional growth trajectory and commitment to innovation.
In conclusion, it appears that Nvidia (NVDA) stock has significant upside potential. With a strong Q4 earnings report pending, investors should remain optimistic about its prospects moving forward.
Source: coincentral.com
