Nvidia Invests $100 Billion With OpenAI While Palantir Grows

Investor confidence in AI remains high, with a Motley Fool survey indicating 93% of AI investors expect long-term returns. Nvidia stands out as a top stock for future AI growth, reporting strong demand for its AI infrastructure. The company's Q3 fiscal 2026 revenue reached $57 billion, a significant 62% increase. For the first nine months of its fiscal year, Nvidia's revenue hit $147.8 billion, bolstered by partnerships with companies like Palantir and Uber. Nvidia continues to make substantial investments in the AI sector, committing over $145 billion to acquisitions and investments. This includes a $20 billion deal with Groq and a massive $100 billion investment with OpenAI. The company also announced its "Rubin" platform is in full production at CES. Microsoft recently signed a $9.7 billion, five-year contract with IREN for Nvidia chips, as IREN shifts its focus from bitcoin mining to providing data center capacity for AI workloads. Alphabet's Google Search revenue reached $56.6 billion in Q3, and its Waymo self-driving car unit is expanding to London this year. Wedbush analyst Dan Ives predicts Palantir Technologies could become a trillion-dollar company within one to two years, citing its leadership in AI decisioning software like Gotham and Foundry, and nine consecutive quarters of accelerated revenue growth. Meanwhile, AI startup Anthropic, behind the Claude chatbot, seeks $10 billion in funding, which would value the company at approximately $350 billion. IBM's stock soared 34.7% in 2025, driven by its growing AI business, which hit $5 billion by the end of 2024, and advancements in quantum computing. IBM expects its quantum computers to outperform supercomputers by late 2026. In the AI evaluation space, LMArena, founded in 2025, raised $150 million in Series A funding, valuing it at $1.7 billion. This platform, used by major AI companies like OpenAI and Anthropic, evaluates AI models across various modalities and boasts over 5 million monthly users. BigBear.ai Holdings, Inc. (BBAI) stock is up 18.5% in 2026, reflecting its strategic shift to a platform-centric defense AI company. BigBear.ai acquired Ask Sage in late 2025, projected to add $25 million in annual recurring revenue, and plans to reduce $125 million of convertible debt. Astera Labs saw its Q3 revenue jump 104% to $230.6 million due to demand for AI data center connectivity. Additionally, Cisco Systems Inc. and Arista Networks Inc. are recognized as "underappreciated" AI networking stocks crucial for expanding AI infrastructure.

Key Takeaways

• Nvidia's Q3 fiscal 2026 revenue reached $57 billion, a 62% increase, with total revenue for the first nine months at $147.8 billion.
• Nvidia has committed over $145 billion to AI acquisitions and investments, including $20 billion with Groq and $100 billion with OpenAI.
• Microsoft signed a $9.7 billion, five-year contract with IREN for Nvidia chips, as IREN shifts to providing AI data center capacity.
• Alphabet's Google Search revenue hit $56.6 billion in Q3, and its Waymo self-driving unit expands to London this year.
• Wedbush analyst Dan Ives predicts Palantir Technologies will become a trillion-dollar company within 1-2 years, citing its AI decisioning software and nine quarters of accelerated revenue growth.
• Anthropic, the AI startup behind Claude, seeks $10 billion in funding, potentially valuing the company at $350 billion.
• IBM's stock soared 34.7% in 2025, with its AI business reaching $5 billion by late 2024, and expects quantum computers to outperform supercomputers by late 2026.
• LMArena, an AI evaluation platform used by OpenAI and Anthropic, raised $150 million in Series A funding, valuing it at $1.7 billion.
• BigBear.ai stock is up 18.5% in 2026, driven by its shift to defense AI, acquisition of Ask Sage ($25M ARR), and plans to reduce $125 million in debt.
• Astera Labs' Q3 revenue jumped 104% to $230.6 million due to demand for AI data center connectivity, while Cisco and Arista are key "underappreciated" AI networking stocks.

BigBear.ai Stock Jumps on AI Strategy and Debt Cuts

BigBear.ai Holdings, Inc. (BBAI) stock is up 18.5% in 2026, outperforming its industry. Its high valuation reflects a shift to a platform-centric defense AI company. The company acquired Ask Sage in late 2025, which is expected to bring $25 million in annual recurring revenue. BigBear.ai also announced plans in early January 2026 to reduce $125 million of convertible debt. The company opened a Middle East office in Abu Dhabi to expand globally.

BigBear.ai Stock Surges on AI Pivot and Debt Cuts

BigBear.ai stock has surged this year, reaching a 16X price-to-sales ratio. This rise comes from the company's strategic shift towards AI solutions and its efforts to reduce debt. BigBear.ai is also expanding globally to find new markets for its AI platforms. Investors are optimistic about the company's future growth, but it faces competition in the AI market.

BigBear.ai Stock Jumps on AI Strategy and Debt Cuts

BigBear.ai Holdings, Inc. (BBAI) stock is up 18.5% in 2026, outperforming its industry. Its high valuation reflects a shift to a platform-centric defense AI company. The company acquired Ask Sage in late 2025, which is expected to bring $25 million in annual recurring revenue. BigBear.ai also announced plans in early January 2026 to reduce $125 million of convertible debt. The company opened a Middle East office in Abu Dhabi to expand globally.

Investors Bullish on Nvidia and Alphabet for AI Growth

A Motley Fool survey shows 93% of AI investors are confident in long-term returns. Nvidia and Alphabet are two top stocks for future AI growth. Nvidia's CEO Jensen Huang noted strong demand for AI infrastructure, leading to $57 billion in Q3 fiscal 2026 revenue, a 62% increase. Nvidia also partners with Uber for self-driving cars by 2027. Alphabet's Google Search revenue hit $56.6 billion in Q3, and its Waymo self-driving car unit is expanding to London this year.

Nvidia IBM Astera Labs Are Top AI Stocks for 2026

Nvidia, IBM, and Astera Labs are three top artificial intelligence stocks for 2026. Nvidia's revenue for the first nine months of its fiscal year reached $147.8 billion, thanks to its AI strengths and partnerships with companies like Palantir and Uber. IBM is making strides in quantum computing, expecting its quantum computers to outperform supercomputers by late 2026. Astera Labs saw its Q3 revenue jump 104% to $230.6 million, driven by the need for better connectivity in AI data centers.

Nvidia's Large AI Investments Raise Spending Concerns

Nvidia has committed over $145 billion to AI acquisitions and investments, including a $20 billion deal with Groq and $100 billion with OpenAI. This spending far exceeds its current cash flow. While the AI chip market could reach $1 trillion by 2030, further major deals might hurt shareholder returns. The stock trades at 25 times forward earnings, and analysts expect over 50% growth for the next two fiscal years.

IREN Stock Falls as AI and Crypto Enthusiasm Cools

IREN Ltd shares fell 4.8% to $45.91 in after-hours trading on January 6, 2026. The stock has been seen as a bet on both bitcoin prices and demand for AI data centers. Nvidia's CEO Jensen Huang announced the "Rubin" platform is in full production at CES, affecting AI infrastructure stocks. IREN is shifting from bitcoin mining to providing data center capacity for AI workloads. Microsoft signed a $9.7 billion, five-year contract with IREN for Nvidia chips.

Analyst Predicts Palantir Will Become Trillion-Dollar AI Company

Wedbush analyst Dan Ives believes Palantir Technologies will become a trillion-dollar company within one to two years, suggesting a 140% upside. Palantir's stock saw triple-digit returns in 2024 and 2025. The company leads in AI decisioning software with its Gotham and Foundry platforms. Palantir has accelerated revenue growth for nine straight quarters. However, its current price-to-sales ratio is over 100, which is historically very high for software companies.

LMArena AI Evaluation Platform Raises 150 Million Dollars

LMArena, an AI evaluation platform, raised $150 million in Series A funding, valuing the company at $1.7 billion. This valuation is nearly three times its $600 million seed round from May 2025. The company, founded in 2025, started as Chatbot Arena at UC Berkeley. LMArena now evaluates AI models across text, code, image, video, and search, with over 5 million monthly users. Major AI companies like OpenAI and Anthropic use its services.

IBM Stock Jumps 35 Percent in 2025 on AI and Quantum

International Business Machines (IBM) stock soared 34.7% in 2025, largely due to its growing AI business and advancements in quantum computing. IBM's AI business reached $5 billion by the end of 2024 and continued to grow. The company expects its quantum computers to outperform traditional ones by the end of 2026. IBM also plans to offer its first fault-tolerant quantum computer to clients by 2029.

Cisco and Arista Are Underappreciated AI Networking Stocks

Cisco Systems Inc. and Arista Networks Inc. are two "underappreciated" AI stocks that could see future growth. These companies are key players in networking infrastructure, which is crucial for AI adoption. While other AI chip companies like Nvidia and AMD have soared, Cisco and Arista have lagged. As AI use expands, the demand for strong networking solutions will increase, benefiting these companies.

Anthropic Seeks 10 Billion Dollars Funding at High Valuation

Anthropic, the AI startup behind the Claude chatbot, plans to raise $10 billion in funding. This new funding would value the company at about $350 billion, nearly doubling its valuation from just four months ago. Coatue Management and GIC, Singapore's sovereign wealth fund, are expected to lead the financing. These talks come as Anthropic may consider an initial public offering in the next 12 to 18 months. Developing AI products like chatbots requires massive capital, energy, and data.

Sources

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