nvidia, google and amd Updates

The artificial intelligence sector continues to drive significant growth and market shifts, with major tech companies reporting strong performance and increased investments. Nvidia remains a dominant force in AI infrastructure, with Evercore ISI raising its price target to $352, calling it a top pick. The company reported a 63% jump in fiscal third-quarter revenue to $57 billion, primarily from its GPUs and data center networking products. However, competition is intensifying as other giants like Alphabet and Broadcom make significant strides. Broadcom is also poised for substantial growth in the AI trend, with Raymond James initiating coverage with an Outperform rating and a $420 price target. The firm highlights Broadcom's strong product lineup and its role in designing custom AI chips, or ASICs, for large data centers, expecting significant revenue by fiscal 2027. AMD is actively expanding its presence in the AI infrastructure market, leading in data center CPUs and aiming to increase its GPU market share for AI inference through partnerships with OpenAI and Microsoft. Alphabet, the parent company of Google, is experiencing a resurgence, with its shares surging 35% since mid-October, adding nearly $1 trillion in value. This rally positions Alphabet's market cap about $590 billion behind Nvidia's $3.1 trillion, fueled by strong earnings, a growing advertising market, and excitement around its AI initiatives, including the Gemini chatbot. TD Cowen maintained a Buy rating for Alphabet, citing the Gemini 3 launch and increased user engagement across its Search, Gemini, and Cloud services. Alphabet's Tensor Processing Units (TPUs) are emerging as a viable alternative to Nvidia's GPUs, with reports suggesting Meta Platforms might utilize TPUs in its data centers, signaling growing competition in the AI hardware space. Beyond the hardware giants, Zoom Communications is leveraging AI to boost its financial outlook. The company increased its yearly revenue and profit predictions, expecting fiscal 2026 revenue between $4.85 billion and $4.86 billion and adjusted profit per share between $5.95 and $5.97. Zoom's AI tools, such as Phone, Contact Center, Virtual Agent, and the AI Companion 3.0, are key drivers. Zoom also partnered with Nvidia to integrate Nemotron open technologies for its AI Companion 3.0. Meanwhile, Gartner has released new insights to help businesses measure the value and cost of generative AI use cases, providing a framework to align AI initiatives with business goals and assess risks effectively.

Key Takeaways

• Nvidia's fiscal third-quarter revenue jumped 63% to $57 billion, driven by GPU and data center demand, with Evercore ISI raising its price target to $352.
• Broadcom received an Outperform rating and a $420 price target from Raymond James, anticipating significant growth from custom AI chips (ASICs) and its VMware acquisition.
• AMD is expanding its AI infrastructure role, leading in data center CPUs and partnering with OpenAI and Microsoft for GPU market share in AI inference.
• Alphabet's shares surged 35% since mid-October, adding nearly $1 trillion in value, with its market cap now approximately $590 billion behind Nvidia's $3.1 trillion.
• Alphabet's AI initiatives, including the Gemini chatbot and Gemini 3 launch, are boosting investor confidence and driving growth in Search, Gemini, and Cloud services.
• Meta Platforms is reportedly considering using Alphabet's Tensor Processing Units (TPUs) in its data centers, indicating increased competition for Nvidia's GPUs.
• Zoom Communications raised its fiscal 2026 revenue forecast to $4.85 billion-$4.86 billion and adjusted profit per share to $5.95-$5.97, attributing growth to new AI tools like AI Companion 3.0.
• Zoom partnered with Nvidia to use Nemotron open technologies for its AI Companion 3.0, highlighting collaboration in AI development.
• Gartner released a guide titled "How to Calculate Business Value and Cost for Generative AI Use Cases" to help businesses evaluate AI projects.
• Alphabet announced a $70 billion stock buyback, contributing to a broader tech sector rally and the Nasdaq Composite's best day since May.

Zoom raises forecast due to strong AI product demand

Zoom Communications increased its yearly revenue and profit predictions on Monday, driven by hybrid work trends and new AI tools. Products like Phone, Contact Center, Virtual Agent, and Custom AI Companion are fueling much of this growth. Zoom now expects fiscal 2026 revenue between $4.85 billion and $4.86 billion and adjusted profit per share between $5.95 and $5.97. The company also boosted its share repurchase authorization by $1 billion. Zoom partnered with Nvidia to use Nemotron open technologies for its AI Companion 3.0.

Zoom beats forecasts with strong AI and enterprise sales

Zoom Communications Inc. saw its shares rise almost 4% after beating earnings and revenue estimates for its fiscal 2026 third quarter, which ended October 31. The company reported adjusted earnings of $1.52 per share and $1.23 billion in revenue, both higher than expected. Strong enterprise sales, up 6.1% to $741.4 million, and increased customer growth contributed to these results. Zoom also launched its AI Companion 3.0 and added new AI features to Webinars and its contact center suite. For the full fiscal year, Zoom now expects adjusted earnings of $5.95 to $5.97 per share and revenue of $4.852 billion to $4.857 billion.

Evercore raises Nvidia target citing AI leadership

Evercore ISI analyst Mark Lipacis increased his price target for Nvidia to $352 from $261 on November 20. He kept an Outperform rating, calling Nvidia his top pick after its strong third-quarter earnings report. Lipacis believes Nvidia remains the leading choice for AI technology. He also highlighted Nvidia's strong position in data centers and its potential for continued growth in the AI market. The new price target suggests a 22% increase from Nvidia's current stock price.

Broadcom gets $420 target on strong AI growth

Raymond James started coverage on Broadcom Inc. on November 20 with an Outperform rating and a $420 price target. The firm sees significant growth for Broadcom due to the ongoing AI trend, which they expect to last for several years. Broadcom's strong product lineup and diverse customer base position it well to benefit from this. The company's recent purchase of VMware also strengthens its role in enterprise software. Broadcom will report its fourth-quarter earnings on December 7, with analysts predicting $9.3 billion in revenue and $10.50 earnings per share.

Top AI infrastructure stocks to consider now

Nvidia, Broadcom, and AMD are strong contenders in the growing AI infrastructure market. Nvidia remains the leader, reporting a 63% jump in fiscal third-quarter revenue to $57 billion, driven by demand for its GPUs and data center networking products. Broadcom sees a big opportunity in designing custom AI chips called ASICs for large data centers, with several major customer deals expected to bring significant revenue by fiscal 2027. AMD leads in data center CPUs and aims to expand its share in the GPU market, especially for AI inference, supported by partnerships with OpenAI and Microsoft.

Nasdaq surges as Alphabet stock buyback boosts tech

US stocks rebounded on Monday, with the Nasdaq Composite having its best day since May. The S&P 500 gained 0.6%, the Dow rose 0.5%, and the Nasdaq jumped 1.1%. Alphabet shares surged 5.3% after the Google parent announced a $70 billion stock buyback, which boosted the entire technology sector. Investors are now watching for Tuesday's consumer price index report for signs of cooling inflation and clues about the Federal Reserve's next interest rate moves. The stock market will close early on Wednesday and remain closed on Thursday for Thanksgiving.

Gartner offers guide to measure AI value and cost

Gartner released new insights titled "How to Calculate Business Value and Cost for Generative AI Use Cases." This guide provides a practical framework for businesses to measure the value and cost of their AI projects. It helps organizations align GenAI initiatives with business goals and assess costs, benefits, and risks throughout the AI project lifecycle. The insights also offer real-world strategies for benchmarking use cases and avoiding common mistakes. Businesses can download these complimentary Gartner insights to build smarter, more cost-effective AI strategies.

Alphabet stock surge challenges Nvidia's top value spot

Alphabet Inc. shares are surging, rising 35% since mid-October and adding almost $1 trillion in value. This rally puts Alphabet about $590 billion behind Nvidia's $3.1 trillion market cap, making it a contender for the world's most valuable company. Strong earnings, a growing advertising market, and excitement over its artificial intelligence initiatives, including the Gemini chatbot, fuel this growth. Alphabet's cloud computing business also saw a 26% revenue increase in the fourth quarter. The company's heavy investment in AI research and development is starting to pay off, boosting investor confidence.

TD Cowen keeps Alphabet Buy rating on AI growth

On November 20, TD Cowen maintained its Buy rating for Alphabet Inc. (NASDAQ:GOOGL) and kept its price target at $335.00. The firm highlighted Google's recent Gemini 3 launch and the increasing number of monthly active users as key reasons for strong AI engagement. This momentum is visible across Google's Search, Gemini, and Cloud services. Alphabet remains a must-watch stock for AI investors.

Nvidia faces new AI chip competition from Meta

Nvidia shares dropped after a report suggested Meta Platforms might use Alphabet's Tensor Processing Units, or TPUs, in its data centers. This news signals growing competition for Nvidia's leading Graphics Processing Units, or GPUs, as large tech companies explore alternatives. While analysts believe Nvidia remains the market leader, they note that TPUs are more power-efficient ASICs, or application-specific chips. Broadcom, which helps design Google's TPUs, could benefit from this shift. Experts still see a massive, growing market for AI hardware, suggesting both GPUs and ASICs can thrive.

Sources

• Zoom lifts annual outlook on growing demand for AI tools in hybrid work
• Zoom tops estimates with stronger enterprise sales and higher AI adoption
• Evercore Lifts Nvidia (NVDA) Target, Says It Remains the ‘AI Ecosystem of Choice’
• Broadcom (AVGO) Gets $420 Price Target as AI Tailwinds Support Multi-Year Growth
• 3 AI Infrastructure Stocks to Buy Right Now
• Nasdaq has best day since May as Alphabet drives AI rebound. Here’s what it means for the rest of Thanksgiving week.
• How to Calculate Business Value and Cost for Generative AI Use Cases
• Alphabet’s Rally Threatens World’s Most Valuable Stock Standings
• Alphabet (GOOGL) Pt Held at $335 as Analyst Highlights AI Momentum
• Nvidia shares hit by report on new AI chip competition. How worried should investors be?