nvidia, amazon and microsoft Updates

Global venture capital deal value hit $512 billion in 2025, marking the second-highest year on record, with artificial intelligence dominating over half of all deal value. This surge in AI investment, particularly in late-stage companies, highlights the sector's rapid expansion. However, Goldman Sachs analyst Ben Snider cautions that the substantial capital flowing into AI might not translate into sufficient profits, projecting only $450 billion in annual profit by 2026 against a needed $1 trillion to justify current investment returns. Despite these warnings, major tech companies like Nvidia, Amazon, Microsoft, and even Alphabet, remain central to the AI boom and are recommended as top stocks for 2026. Nvidia, a leader in AI infrastructure, saw its revenue grow from $5.9 billion in fiscal Q3 2023 to $57 billion in fiscal Q3 2026. Microsoft, with its Copilot and Azure AI solutions, reported Q1 2026 revenue of $68 billion, while Amazon's AWS, a key cloud provider, achieved $170 billion in Q3 2025 revenue. Broadcom is also making significant strides in the AI chip market, specializing in custom AI chips known as ASICs, which offer a cheaper alternative to Nvidia's GPUs for hyperscalers. Citigroup analysts predict Broadcom's AI revenue will soar from $20 billion in fiscal 2025 to over $100 billion by fiscal 2027. Meanwhile, Iren, a smaller AI-focused data center operator, secured a five-year deal with Microsoft, potentially reaching $20 billion in annual recurring revenue within the next decade. The immense demand for data storage to train and run AI models has fueled record growth in data storage stocks, with Seagate and Western Digital surging over 220% and 300% respectively in 2025. Nvidia CEO Jensen Huang emphasized that "context memory storage" will become the largest storage market globally. Separately, Goldman Sachs forecasts a 20 percent rise in China stocks for 2026, driven by the booming AI sector and Chinese companies' overseas expansion, with corporate profits expected to grow by 14 percent. While the AI sector continues to attract substantial investment, as seen with Ark Invest's interest in Tempus AI, some companies present mixed signals, like director share sales without insider buying. Globally, while venture capital deal value remains high, fundraising for new funds dropped to a decade low of $118.6 billion in 2025, indicating a more selective investment environment despite AI's dominance in deal activity.

Key Takeaways

• Global venture capital deal value reached $512 billion in 2025, with AI accounting for over half of all deal value.
• Goldman Sachs warns that AI investments may not yield sufficient profits, estimating $450 billion in annual profit by 2026 against a needed $1 trillion.
• Nvidia's revenue grew from $5.9 billion in fiscal Q3 2023 to $57 billion in fiscal Q3 2026, solidifying its lead in AI infrastructure.
• Broadcom's AI revenue is projected to increase from $20 billion in fiscal 2025 to over $100 billion by fiscal 2027, driven by custom AI chips (ASICs).
• Microsoft, Amazon, and Nvidia are recommended as top AI stocks for 2026, with Microsoft's Q1 2026 revenue at $68 billion and Amazon's Q3 2025 revenue at $170 billion.
• Iren secured a five-year deal with Microsoft, potentially generating $20 billion in annual recurring revenue within 5-10 years.
• The demand for AI data storage led to significant gains for companies like Seagate (over 220% surge) and Western Digital (over 300% surge) in 2025.
• Nvidia CEO Jensen Huang predicts "context memory storage" will become the largest storage market globally due to AI system needs.
• Goldman Sachs forecasts a 20 percent rise in China stocks for 2026, fueled by the AI sector and overseas expansion.
• Despite high deal value, global VC fundraising dropped to a decade low of $118.6 billion in 2025, indicating a shift in funding dynamics.

Investors eye AI stocks Nvidia and Broadcom for 2026

Motley Fool analyst Asit Sharma suggests investors consider top AI chipmakers Nvidia and Broadcom for their portfolios in 2026. Nvidia leads the AI infrastructure market, showing massive revenue growth from $5.9 billion in fiscal Q3 2023 to $57 billion in fiscal Q3 2026. Broadcom specializes in data center networking and custom AI chips, called ASICs, which are gaining popularity among hyperscalers seeking alternatives to Nvidia's GPUs. Analysts predict Broadcom's AI revenue will soar from $20 billion in fiscal 2025 to over $100 billion by fiscal 2027. Both companies offer strong growth potential in the expanding AI chip market.

Top AI stocks Nvidia and Broadcom recommended for 2026

A Motley Fool analyst suggests investors consider leading AI stocks Nvidia and Broadcom for their portfolios in 2026. Nvidia remains the top company for AI infrastructure, showing significant revenue growth. Broadcom is making a name for itself in custom AI chips, known as ASICs, which are becoming a cheaper option for large tech companies. Citigroup analysts predict Broadcom's AI revenue will dramatically increase from $20 billion in fiscal 2025 to over $100 billion by fiscal 2027. Both companies offer strong investment opportunities in the growing AI sector.

Iren stock may outperform Vertiv in AI market

Marc Guberti suggests investors consider Iren stock instead of Vertiv for potentially higher returns in the AI market. Vertiv, a strong performer providing liquid cooling for data centers, has seen its shares rise significantly. However, Iren, a smaller AI-focused data center operator, shows faster growth potential. Iren recently secured a five-year deal with Microsoft, which could help it achieve $20 billion in annual recurring revenue within the next 5 to 10 years. With a smaller market cap of $12 billion compared to Vertiv's $67 billion, Iren could see more rapid stock movement.

Goldman Sachs warns AI profits may not meet investment costs

Goldman Sachs analyst Ben Snider warns that tech companies might not generate enough profit to justify their large investments in AI. While the S&P 500 is expected to see solid gains in 2026, AI capital spending growth will likely slow down. Companies need over $1 trillion in annual profit to match their investment returns, but current estimates for 2026 are only $450 billion. This gap could mean that some major tech firms will not provide sufficient returns for investors. Other analysts, like Piper's Nancy R. Lazar, believe tech spending still has room to grow due to new tax breaks.

China stocks could rise 20 percent on AI and global growth

Goldman Sachs predicts that China stocks will see a 20 percent increase in 2026. This growth is expected due to the booming artificial intelligence sector and Chinese companies expanding their businesses overseas. The MSCI China Index is forecast to surge, with corporate profits potentially growing by 14 percent. Exports and AI technology are major factors, supported by higher overseas profits and government policies. Chinese policymakers view the stock market as important for allocating resources and funding new growth, suggesting continued support for equities.

Seagate stock dips after Nvidia boosts AI storage demand

Seagate Technology Holdings stock saw a small dip in premarket trading after a 14 percent jump, following news from Nvidia. Nvidia CEO Jensen Huang announced new storage technology at the Consumer Electronics Show, which caused a rally in storage and memory stocks like SanDisk and Western Digital. Huang believes "context memory storage" will become the largest storage market globally as AI systems need more working memory. Seagate reported strong fiscal second-quarter revenue guidance of about $2.70 billion and is increasing shipments of its Mozaic HAMR drives. However, the stock's rapid rise makes it vulnerable to profit-taking.

Top three AI stocks to consider for 2026

The year 2025 saw significant growth in technology stocks, with artificial intelligence leading the way. For 2026, analysts recommend three top AI stocks: Nvidia, Amazon, and Microsoft. Nvidia, a leader in accelerated computing, reported $57 billion in revenue for Q3 2026. Amazon, through its Amazon Web Services, is a major cloud computing provider and reported $170 billion in revenue for Q3 2025. Microsoft offers various AI solutions like Copilot and Azure AI, with Q1 2026 revenue reaching $68 billion. All three companies currently hold "Strong Buy" ratings from analysts.

Data storage AI stocks achieve record high growth

While major AI companies like Nvidia and Alphabet made headlines in 2025, lesser-known data storage stocks also saw huge gains. Hard drive makers Seagate and Western Digital surged over 220 percent and 300 percent respectively, while flash memory companies like Sandisk and Micron Technology also rose significantly. This growth is due to the massive demand for data storage needed to train and run AI models, which generate vast amounts of text, photos, audio, and video. Experts predict $800 billion will be spent on data center storage in the next five years. Hard drives, once struggling, are now crucial for long-term "cold storage" in data centers because they are more affordable.

Tempus AI sees mixed signals despite Ark Invest interest

Tempus AI (TEM) has attracted significant attention from large investors, including Ark Invest, which bought shares for its ARK Genomic Revolution and ARK Innovation ETFs. Options trading for Tempus AI also shows a lot of activity. However, director Jennifer Doudna recently sold shares, and there have been no reports of insiders buying stock for a year. These mixed signals, along with varied analyst ratings, create a complex picture for potential investors.

AI drives global venture capital near record in 2025

According to PitchBook, global venture capital deal value reached $512 billion in 2025, making it the second-highest year on record. Artificial intelligence strongly dominated this market, accounting for more than half of all deal value and nearly one-third of all venture deals worldwide. While late-stage companies received the most investment, global VC exit value also rose significantly to $549.2 billion. However, global VC fundraising dropped to $118.6 billion, the lowest level in a decade, and the number of new funds also hit a 10-year low. The United States saw a rebound in venture investment, largely driven by AI companies.

Sources

• 90% of Investors Plan to Own AI Stocks in 2026: Here Are 2 That Should Be in Your Portfolio
• 90% of Investors Plan to Own AI Stocks in 2026: Here Are 2 That Should Be in Your Portfolio
• Forget Vertiv Stock and Look at This AI Stock Instead
• Tech companies may only get half the profit they need to justify their AI investment, Goldman warns
• China stocks to see 20% upside on AI boom, overseas expansion: Goldman
• Seagate stock (STX) slips in premarket after 14% jump as Nvidia CES storage push reshapes AI trade
• The 3 Best AI Stocks to Buy for 2026
• These Lesser Known AI Stocks Are Reaching Record Highs
• Does Tempus AI’s (TEM) Insider Selling Undercut Ark’s Bullish Options-Driven Investment Narrative?
• PitchBook: AI dominates global venture capital as 2025 deal value nears record