Nafidia (NASDAQ: NVDA) began a bad start in the stock market in 2025, as it lost more than 10 % of its value to this writing, with the launch of Chinese artificial intelligence (AI) to start Deepseek for a low -cost championship but the capable artificial intelligence model plays a role Main in giant semiconductor problems.
when Dibsic He claimed this It only spent $ 6 million To train its R1 thinking model, which is able to compete with the Openai’s O1 model, artificial intelligence shares in the United States have greatly beaten. NVIDIA Stock was one of the largest sales victims, as it decreased by 17 % on January 27 after it appeared that Deepseek had exceeded the download of ChatGPT on apple The application store in the United States
The low -cost Deepseek model raised concerns about the major cloud computing companies and governments that reduce their request to sell AI NVIDIA chips. However, a closer look at recent developments in the area of artificial intelligence indicates that spending on artificial intelligence chips may continue to go up, which opens the possibility of restoring NVIDIA Mojo shares once its financial results are issued 2025 in the fourth quarter on February 26.
Let’s take a look at the reason for NVIDIA to submit a bright update on the spending of artificial intelligence later this month, along with its separate report.
Over the past few years, technology and governments giants worldwide have poured a lot of money in the development of Amnesty International’s infrastructure, and President Donald Trump gave Amnesty International prospects a tremendous strengthening last month.
On Tuesday, January 21, Trump announced at the White House SoftbankAnd Openai and Oracle (NYSE: ORCL) is a joint project planning to invest $ 100 billion in Amnesty International’s infrastructure. The joint project, known as Stargate, is eventually planning to spend up to $ 500 billion on building an Amnesty International Infrastructure in the United States during the next four years.
The first artificial intelligence center in Stargate is already being constructed in Texas, according to President Oracle Larry Ellison. The joint project is expected to build 20 data centers, creating an estimated 100,000 jobs.
In a publication announcement of the Stargate project, Openai indicated that initial funding will be provided by SoftBank, Openai, Oracle, MGX, MGX. The most prominent post is also that NVIDIA will be among the “primary technology partners” in Stargate.
NVIDIA was at the forefront of the artificial intelligence revolution with powerful graphics processing units (GPUS) based on the brown of ampere that helped Openai Train Chatgpt. It has continued to push the envelope in the AI Accessator market, as it collected more powerful chips in the past three years based on its Qados and Blackweel architects.
This explains why NVIDIA maintains a strong grip in the artificial intelligence chips market with a 90 % stake. Given that NVIDIA has created a technical advantage over competitors in the artificial intelligence chips market, the dominant force may remain in this field. Since NVIDIA graphics units are the basic building blocks of artificial intelligence data centers, given their ability to make huge accounts at one time, allowing companies to train and publish artificial intelligence models quickly, the Stargate Amethical Investment Plan should assist perfectly to improve the chips maker market.
For example, Oracle relies on NVIDIA graphics units to create an artificial intelligence infrastructure to rent customers so that they can train artificial intelligence models in the cloud. In September last year, Ellison noted that one of the largest databases in Oracle “is 800 megawatts, and will contain an acre from NVIDIA GP groups capable of training the largest artificial intelligence models in the world.” This was followed by a note issued by the CEO of Oracle Safra Catz at the Army December 2024 conference that “the company” carried out the greatest and fastest super computers, Amnesty International, reaching 65,000 NVIDIA H200. “
Oracle plans to publish 35 additional clouds around the world as well as the 17 that already have it. It will not be surprising to see the company’s appetite to increase graphics processing units in NVIDIA. More importantly, since NVIDIA works with supply chain partners to increase the production of AI graphics processing units in 2025, it should be in a position to meet the highest demand for its chips that are likely to arise after Stargate.
At the same time, proverbs Definition platforms and Microsoft You will not reduce their spending on Amnesty International’s infrastructure after Dibsic penetrated. Both companies believe that heavy investment in artificial intelligence is required to support the increasing demand for artificial intelligence applications, thanks to the arrival of the most efficient models as shown in Deepseek. Dutch semiconductor equipment Asml He suggested something similar after the company witnessed a strong growth in requests and got more reservations than Wall Street expected.
All this indicates that the artificial intelligence spending environment may remain strong, and this may help to achieve strong results and guidelines later this month.
Analysts are currently expecting NVIDIA revenues in the fiscal year 2026 (which has just started) to increase 52 % to a little more than $ 196 billion, followed by an increase of 21 % in the fiscal year 2027.
However, expect to see these estimates higher in light of the above discussion, which paves the way for more bullish trend in NVIDIA stock. It should be noted that the 12 -month price goal in NVIDIA is $ 175, according to 66 analysts covering the shares, indicating 46 % of the current levels.
NVIDIA’s revenue estimates for both financial years 2026 and 2027 to the top in recent times, a trend that may continue thanks to the ongoing investment in artificial intelligence. As a result, the NVIDIA price goal can also witness escalating reviews.
Therefore, investors who have been on the sidelines and wondering whether it is a good idea to buy NVIDIA shares after the stars offered by the arrow in the past two years, you can think of their purchase immediately as it can restore its waves. The 23 futures profits are very attractive, given that technology full of technology Nasdaq-100 Index has 27 -year -old futures. For this reason, the purchase of NVIDIA can now be a smart step as it is possible that the momentum of healthy profits will continue.
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Look at when Nafidia This list was presented on April 15, 2005 … if you invest $ 1,000 at the time of our recommendation, You will have 714,954 dollars!
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*The stock consultant dates back from February 3, 2025
Randy Zuckerberg, former Director of Market Development and Speak for Facebook and Sister to Meta Platforms, Mark Zuckerberg, member of Motley Fool Board of Directors. Hald Johann He has no position in any of the mentioned stocks. Motley Fool has positions in ASML, Apple, Meta, Microsoft, Nvidia and Oracle. Motley Fool recommends the following options: Long January $ 2026 $ 395 on Microsoft and Short January 2026 $ 405 calls on Microsoft. Motley deception has Disclosure.
