'Not so sure' if big tech spenders will keep being the winners, says State Street's Michael Arone
Michael Arone, State Street Global Advisors, joins 'Power Lunch' to discuss Nvidia's impact to the overall stock market, why the market has rewarded the big spenders and much more.
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Veteran analyst drops bold new call on Nvidia stock
Veteran analyst drops bold new call on Nvidia stock originally appeared on TheStreet. You can't talk about artificial intelligence without running into Nvidia () . It's wild how a gaming chipmaker is now basically the face that runs the show in AI. 💵💰💰💵 From data centers to cloud platforms, and from edge devices to the conversations shaping the future of tech, it's Nvidia all the way. Nvidia's ubiquitous GPUs are at the heart of training large language models (LLMs) and accelerating robotics, dominating the most mission-critical chips on the planet. Trillions in market cap later, Nvidia is still getting the love from Wall Street. Sure, Nvidia stock has wobbled, but a new forecast suggests there's still a ton of firepower ahead. Nvidia has effectively become the engine room of the AI frenzy. Its GPUs run roughly 90% of the world's AI data centers, and tech giants including Amazon, Microsoft, Google, and Meta continue gravitating to its silicon architectures. Moreover, its competitive edge in AI goes beyond chips. Its powerful CUDA platform, for instance, is arguably the backbone of AI software, locking in millions of developers looking to optimize their work for Nvidia chips. On the model side, tools such as TensorRT and NeMo help developers run AI systems easily and efficiently. Also, for businesses looking to avoid building massive infrastructure, Nvidia offers DGX Cloud, fully loaded AI clusters you can rent on AI powerhouse like CoreWeave helps run it, with analysts predicting it could be a $10 billion long-term revenue stream. Hence, this end-to-end stack allows Nvidia to dominate the AI value chain. It's also why hyperscalers shell out a ton of money on their Nvidia budgets, knowing an alternative path would fracture their entire pipeline. So it's no surprise that Nvidia stock has gone parabolic over the past few years. For context, its share price surged from $24 at the end of January 2022 to about $134.27 by December 31, 2024, an astonishing 449% gain. This breakneck surge mirrors the explosive growth of its AI-led data-center business. In the fourth quarter of FY 2022, its data center sales were at $3.3 billion. By Q4 FY 2024, though, it stood at an eye-popping $18.4 billion — a 458% jump in just a couple of years. And as we look ahead, it seems the AI buildout is just getting started. McKinsey sees global AI and data-center investment hitting $5.2 trillion by 2030, on the back of a double-digit bump in AI-ready Q1 2025 alone, cloud infrastructure spending hit $90.9 billion, up 21% year-over-year, according to Canalys. Nvidia hogged the spotlight Wednesday after Loop Capital jacked up its price target in a big way. In setting a new Wall Street high for Nvidia, Loop Capital analyst Ananda Baruah raised his price target to $250 from $175. He feels hyperscaler and AI spending could hit $2 trillion by 2028, with Nvidia riding that wave to a $6 trillion market cap. More Tech Stock News: OpenAI's Altman slams Mark Zuckerberg, ignites drama Wall Street rallies behind Marvell Technology stock after blockbuster AI showcase Struggling EV semiconductor company files for bankruptcy He added that Nvidia owns 'critical tech' and has the pricing power to match, as hyperscaler continues to grow over time. Loop Capital's new $250 target is nothing short of extraordinary. When stacked against Wall Street's $172.60 consensus target, that implies a roughly 44% premium, towering even higher than the current 'high' estimate of $220. So far this year, Nvidia stock has quietly gained nearly 10%, starting the year in the high $130s and climbing to the low $150s by late June. It has continued to crush expectations in its data-center division, with more than 70% year-over-year growth in Q1, while next-gen chip pre-orders pile up. Add in software momentum, and analysts say there is still plenty of upside remaining in this AI analyst drops bold new call on Nvidia stock first appeared on TheStreet on Jun 26, 2025 This story was originally reported by TheStreet on Jun 26, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
30 minutes ago
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Nvidia is again the world's most valuable company
Nvidia reclinched its title as the world's most valuable company for a second time this month. The AI chipmaker's shares rose more than 4% on Wednesday, closing at a record high for the first time since January, following CEO Jensen Huang's remarks at Nvidia's annual investor meeting. Nvidia's stock closed at $154.31 on Wednesday, exceeding its prior closing high of $149.43 on January 6. Nvidia is now worth $3.77 trillion, just ahead of Microsoft, which is worth $3.66 trillion, and Apple, at $3.01 trillion. Huang's comments on growth areas for the company boosted investor confidence. "We have many growth opportunities across our company, with AI and robotics the two largest, representing a multitrillion-dollar growth opportunity," Huang said. He added that autonomous vehicles, which will be the first commercial application of robotics, are a big focus for the company. "Nvidia Drive platform is powering the transition to software-defined vehicles and providing the immense computational horsepower required for self-driving capabilities," he said at the meeting. Huang's comments on AI growth quelled investor concerns about the company not being able to sell to China because of the US's export restrictions. Nvidia said last month that it expects to lose about $8 billion in second-quarter revenue due to the loss of sales of H20 chips. In April, President Donald Trump's administration issued new rules that stopped Nvidia from selling its H20 AI processor to China. On last month's earnings call, Huang doubled down on his previous comments that export restrictions to China have been a "failure." "The export control gave them the spirit, the energy, and the government support to accelerate their development. So I think, all in all, the export control is a failure," Huang said last month about Chinese tech companies. Nvidia reported $17.1 billion in revenue from China for its last fiscal year, or 13.1% of its total revenue. Revenue from China increased 66% from the year before. The chipmaker's stock is up almost 15% so far this year.
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Why the tech trade has more room to run even as the Nasdaq 100 hovers at all-time highs
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