Nvidia, AMD, OpenAI Power AI Growth, Palantir Valuation Scrutinized

The artificial intelligence boom continues to reshape the tech industry, with companies like Oracle making significant strides toward trillion-dollar valuations. Oracle's stock has surged, fueled by demand for its AI infrastructure and the launch of its new AI Database, positioning it to potentially reach $1 trillion by 2028, supported by a substantial $455 billion contract backlog and plans to expand its data center capacity with 37 new facilities by fiscal 2026. Analysts project Oracle's cloud infrastructure revenues to hit $73 billion by fiscal 2028. Meanwhile, the AI hardware market sees intense competition and growth. Nvidia remains a favored analyst pick due to its GPU dominance and innovation, with Cantor Fitzgerald raising its price target to $300, anticipating years of massive demand. Advanced Micro Devices (AMD) is also benefiting, increasing AI chip production and showing accelerating revenue growth, partly due to its relationship with OpenAI. Samsung Electronics is experiencing a profit rise in Q3, driven by demand for AI chips, though it awaits Nvidia's approval for its latest high-bandwidth memory (HBM) products. In the AI services and software sector, Palantir Technologies faces scrutiny, with predictions that Alibaba and AMD could surpass its $441 billion valuation by 2026. Alibaba, valued around $409 billion, is growing its AI sales, partnering with Apple, and developing its own AI chip and chatbot. Cathie Wood's ARK Invest has trimmed its Palantir stake, reallocating to fintech and automation amid concerns about current AI valuations. BigBear.ai Holdings, despite a recent NSA contract, reported a Q2 revenue drop to $32.5 million, with analysts seeing potential downside risk, though it has resources for further AI investment. Applied Digital is expanding its AI campus in North Dakota and has a major lease agreement with CoreWeave, with Roth Capital Partners raising its price target to $43. Keysight Technologies, a provider of electronic design and test solutions for AI development, has seen Benson Investment Management acquire a new stake. Utility providers like PG&E are also gaining investor interest as they power AI data centers, with PG&E attracting attention for its role in supplying electricity to Microsoft's expanding AI data center in San Jose. Oracle's push into AI, using Nvidia chips to serve clients like OpenAI, faces margin challenges due to high costs, though its Stargate project aims to improve efficiency through scale and integrated services.

Key Takeaways

• Oracle is targeting a $1 trillion market capitalization by 2028, driven by AI infrastructure demand, a $455 billion contract backlog, and planned data center expansion.
• Nvidia is favored by analysts for its AI hardware dominance, with expectations of sustained high demand for its GPUs.
• AMD is increasing AI chip production and revenue growth, benefiting from its partnership with OpenAI.
• Alibaba and AMD are predicted to surpass Palantir Technologies in market value by 2026, with Alibaba expanding its AI offerings and partnerships.
• Palantir Technologies' valuation is considered high by some analysts, leading to strategic portfolio adjustments by investors like ARK Invest.
• BigBear.ai Holdings reported a Q2 revenue of $32.5 million, facing analyst concerns despite government contract wins.
• Applied Digital is expanding its AI campus and has secured a significant lease agreement with CoreWeave, with its price target raised to $43 by Roth Capital Partners.
• Keysight Technologies, a key player in AI hardware development, has attracted a new investment stake from Benson Investment Management.
• PG&E is gaining investor interest for its crucial role in powering AI data centers, including Microsoft's facility in San Jose.
• Oracle's AI cloud margins face pressure from high costs, despite efforts to serve clients like OpenAI and improve efficiency through projects like Stargate.

Oracle stock eyes $1 trillion valuation by 2028

Oracle's stock has surged significantly in 2025, benefiting from high demand for AI infrastructure. With a market cap near $829 billion, the company aims to reach $1 trillion by 2028. This goal is supported by a massive $455 billion contract backlog and the launch of its new AI Database, which enhances data processing for large language models. Oracle is also expanding its data center capacity, planning to build 37 more multicloud data centers by the end of fiscal 2026. The company expects substantial revenue growth from its cloud infrastructure, projecting $73 billion by fiscal 2028.

Oracle stock eyes $1 trillion valuation by 2028

Oracle's stock has seen a significant rise in 2025, driven by the demand for AI infrastructure and data center capacity. Currently valued around $828.6 billion, the company is aiming for a $1 trillion market cap by 2028. Key factors supporting this projection include a substantial $455 billion backlog of orders and the introduction of Oracle's AI Database, designed to improve AI model processing. Oracle plans to expand its data center footprint by adding 37 new facilities by the end of fiscal 2026 to meet this demand. Management anticipates strong revenue growth from its cloud services, projecting $73 billion by fiscal 2028.

Oracle stock eyes $1 trillion valuation by 2028

Oracle's stock has surged nearly 74% in 2025, fueled by the high demand for AI infrastructure and data center capacity. With a market capitalization near $828.6 billion, the company is positioned to potentially reach $1 trillion by 2028. This outlook is bolstered by a $455 billion contract backlog and the launch of its AI Database, which enhances data processing for large language models. Oracle is actively expanding its data center operations, planning to add 37 more multicloud data centers by the end of fiscal 2026. The company projects its cloud infrastructure revenues to reach $73 billion by fiscal 2028.

Alibaba and AMD could surpass Palantir in value by 2026

Alibaba and Advanced Micro Devices (AMD) are predicted to become more valuable than Palantir Technologies by the end of 2026. Palantir's current market cap of $441 billion is seen as potentially overvalued, with a very high price-to-earnings ratio. Alibaba, a Chinese tech and AI company, is valued around $409 billion and shows strong growth in AI-related sales, partnering with Apple and developing its own AI chip and chatbot. AMD, a chipmaker with a market cap around $370 billion, is benefiting from its relationship with OpenAI and is increasing its AI chip production, showing accelerating revenue growth.

Oracle poised to join trillion-dollar tech giants

Oracle is positioned to potentially join the ranks of trillion-dollar tech companies like Nvidia and Apple, driven by its significant role in the artificial intelligence (AI) boom. The company provides essential AI products and services without directly competing in the chatbot market. Oracle's contract backlog has increased by an impressive 359% to $455 billion, indicating strong demand. Its cloud segment revenue grew by 28% year-over-year, contributing significantly to its overall revenue. Analysts project continued growth in the global cloud AI market, supporting Oracle's potential to reach a $1 trillion valuation.

Analysts favor Nvidia over BigBear.ai and Palantir

Nvidia is favored by analysts among BigBear.ai Holdings, Palantir Technologies, and Nvidia due to its strong position in the AI hardware market. While BigBear.ai faces concerns about its fundamentals despite government contract wins, and Palantir's valuation is considered high, Nvidia benefits from robust demand for its GPUs. Analysts highlight Nvidia's continuous innovation and significant opportunities in sovereign AI. Cantor Fitzgerald raised Nvidia's price target to $300, viewing the current AI infrastructure build-out as an early stage with massive demand for years to come.

BigBear.ai stock gains on AI optimism despite mixed outlook

BigBear.ai Holdings stock has risen significantly in 2025, driven by its expanding role in AI and government analytics, including a recent five-year NSA contract. However, the company reported a drop in Q2 revenue to $32.5 million, and analysts suggest a potential downside risk of 19% from current levels. Despite mixed investor opinions, BigBear.ai has resources for further investment in the AI sector. Analysts believe the company must demonstrate steady revenue growth and improved margins to maintain investor confidence.

Cathie Wood trims Palantir stake amid AI stock shifts

Cathie Wood's ARK Invest recently sold approximately 4,000 shares of Palantir Technologies, valued at $754,000. This move comes as Palantir's stock has cooled after a significant run, and ARK Invest is reallocating its portfolio towards fintech and automation. While Wood has supported Palantir's software platform, the sale suggests a cautious approach to current AI valuations. ARK Invest also reduced stakes in Roblox and Shopify, while increasing investments in LY Corp. and Klarna Group.

Oracle's AI growth faces margin challenges

Oracle is making a significant push into artificial intelligence using Nvidia's chips, aiming to provide AI computing services to clients like OpenAI. However, recent reports suggest that Oracle's AI cloud margins may be thinner than anticipated due to high costs associated with data centers, chip scarcity, and customer pricing pressures. While Oracle prioritizes growth, investors are concerned about the timeline for profitability. The company's Stargate project, a large-scale AI buildout with OpenAI and SoftBank, aims to improve efficiency and margins by increasing scale and offering integrated services.

Samsung's Q3 profit rises on AI chip demand

Samsung Electronics is expected to report its highest third-quarter profit since 2022, driven by increased memory chip prices due to demand from AI servers and inventory rebuilding. Analysts project an operating profit of 10.1 trillion won ($7.11 billion), a 10% increase year-over-year. This recovery is mainly due to higher pricing for conventional memory chips, which offsets weaker sales of high-bandwidth memory (HBM) chips as Samsung awaits Nvidia's approval for its latest HBM products. Demand for memory chips from hyperscalers and AI services has boosted server workloads and chip prices.

PG&E stock gains investor interest powering Microsoft's AI data center

PG&E (PCG) is attracting investor attention due to its role in powering Microsoft's expanding AI data center in San Jose, California. The growing demand for electricity from AI data centers makes utility providers like PG&E crucial. This partnership is seen as a significant positive development, potentially creating a new revenue stream and enhancing PG&E's image. Analysts view PG&E as potentially undervalued, highlighting its critical infrastructure role and growth potential in the AI sector, suggesting a compelling investment case.

Benson Investment adds Keysight stake amid AI hardware growth

Benson Investment Management has acquired a new stake of approximately $5.5 million in Keysight Technologies, purchasing 31,240 shares. This investment positions Benson to benefit from the momentum in AI hardware. Keysight Technologies provides electronic design and test solutions crucial for industries involved in AI development, including communications, aerospace, defense, and semiconductors. Despite a flat stock performance year-to-date, Keysight's recent financial results and raised guidance indicate potential for upside as the testing and measurement cycle strengthens.

Roth raises Applied Digital price target on AI campus expansion

Roth Capital Partners has raised its price target for Applied Digital (APLD) to $43, maintaining a Buy rating. The firm highlights Applied Digital's expansion of its AI campus in North Dakota and a significant lease agreement with cloud provider CoreWeave. Analyst Scott Searle believes the company is well-positioned to meet the growing demand for AI infrastructure, with potential for another major colocation agreement. Applied Digital's existing data center operations in Fargo and Grand Forks are already generating revenue, and its focus on AI infrastructure services is resonating with investors.

Sources

• Could This Artificial Intelligence (AI) Stock Leapfrog Into the $1 Trillion Club by 2028?
• Could This Artificial Intelligence (AI) Stock Leapfrog Into the $1 Trillion Club by 2028?
• Could This Artificial Intelligence (AI) Stock Leapfrog Into the $1 Trillion Club by 2028? @themotleyfool #stocks $ORCL
• Prediction: 2 Artificial Intelligence (AI) Stocks That Will Be Worth More Than Palantir by the End of 2026
• 1 Unstoppable Stock That Could Join Nvidia, Apple, Microsoft, Amazon, Alphabet, Meta, and Tesla in the $1 Trillion Club @themotleyfool #stocks $ORCL
• BBAI vs. PLTR vs. NVDA: Which AI Stock Is the Best Pick, According to Analysts?
• BigBearai Holdings Stock (BBAI) Is up 350%, What’s Next for the AI Firm?
• Cathie Wood sells shares in major AI stock
• Oracle’s AI empire runs on Nvidia, but the numbers don’t add up
• Samsung set for highest Q3 profit in three years as AI demand lifts chip prices
• How Investors Are Reacting To PG&E (PCG) Powering Microsoft’s San Jose AI Data Center Expansion
• Benson Investment Adds $5.5 Million Keysight Stake Amid AI Hardware Momentum
• Roth Raises Price Target on Applied Digital to $43 Amid AI Campus Expansion, CoreWeave Leases