The artificial intelligence sector continues to drive significant investment, with major tech companies projected to spend nearly $700 billion on AI infrastructure by 2026. A crucial shift is underway, as AI inference, the application of AI models in real-world scenarios, is expected to account for two-thirds of all AI computing by 2026, surpassing AI training. This trend is reshaping strategies across the chip and software industries.
Nvidia, a dominant force in AI chips, faces both immense demand and evolving market dynamics. The company recently sold its stakes in Arm Holdings and Applied Digital to invest in Intel, a legacy tech player now focusing on AI, which is also receiving significant government support. Despite strong demand for its GPUs, Nvidia's shares have seen fluctuations due to concerns over potential export restrictions to China. The company is also exploring new avenues like quantum computing and automotive hardware to sustain long-term growth beyond its core data center business.
Beyond Nvidia, several companies are capitalizing on the expanding AI infrastructure. Broadcom stands out with its networking chips, like Tomahawk and Jericho, essential for data flow in AI clusters, and its custom ASICs for hyperscalers such as Alphabet and Anthropic. Arm Holdings, a leader in smartphone chips, is expanding its presence in data centers and is well-positioned for the rise of efficient CPUs driven by inference demand. Micron Technology specializes in memory and storage hardware critical for AI systems, while Meta Platforms is investing billions in Advanced Micro Devices (AMD) chips for its AI development and data centers, even securing an option for a 10 percent financial stake in AMD.
Major tech giants like Microsoft and Alphabet (Google) are also making significant strides. Microsoft is deeply integrating AI across its product ecosystem and holds a strategic advantage through its investment in OpenAI. Alphabet remains at the forefront of AI research, powering its search and cloud computing services. In India, Netweb Technologies saw its stock surge due to its integration with Nvidia's GB200, B100, and B200 accelerators, meeting demand for AI workstations and servers. Other companies like Cognex Corporation are experiencing rising stock values due to demand for AI-driven automation, and cybersecurity firm Cato Networks surpassed $350 million in annual recurring revenue in 2025, attributing its 43% year-over-year growth to the AI transformation.
The impact of AI extends to financial markets, with Coinbase expanding its zero-commission equities trading to 24/5, a move CEO Brian Armstrong views as a bet on agentic artificial intelligence to revolutionize trading. Furthermore, Zscaler, in partnership with Bharti Airtel, launched an AI & Cyber Threat Research Center in India, aiming to bolster national cyber resilience and promote trusted AI adoption. Hedge funds are also increasing investments in software stocks, viewing them as a buying opportunity despite concerns about AI's potential disruption.
Key Takeaways
- Big tech companies plan to spend nearly $700 billion on AI infrastructure by 2026.
- AI inference will drive two-thirds of AI computing in 2026, surpassing AI training.
- Nvidia sold stakes in Arm Holdings and Applied Digital to invest in Intel, which is focusing on AI and receiving government support.
- Broadcom is a key player with custom ASICs for AI hyperscalers like Alphabet and Anthropic, and networking chips for AI clusters.
- Microsoft integrates AI across its products and benefits from its strategic investment in OpenAI.
- Alphabet (Google) leads in AI research, powering its search and cloud services, and is a recommended AI stock.
- Meta Platforms is buying billions of dollars worth of AMD chips for AI development and data centers, with an option for a 10% financial stake in AMD.
- Netweb Technologies' stock surged due to its integration with Nvidia's GB200, B100, and B200 accelerators for servers and workstations in India.
- Cato Networks surpassed $350 million in annual recurring revenue in 2025, achieving 43% year-over-year growth driven by AI transformation.
- Coinbase is expanding to 24/5 zero-commission equities trading, betting on agentic AI to revolutionize financial markets.
Navitas vs. Arm: Which AI chip stock is a better buy?
Navitas Semiconductor and Arm Holdings are both chip companies focusing on AI. Navitas is shifting to larger markets like data centers with its Navitas 2.0 plan, though revenue is expected to drop temporarily. Arm, a leader in smartphone chips, is also growing in the data center market. While Navitas's pivot is a gamble expected to pay off later, Arm is seen as a stronger buy due to its current market position and growth in AI data centers.
Two AI chip stocks to watch after Nvidia earnings
With big tech planning to spend nearly $700 billion on AI infrastructure in 2026, investors are looking beyond Nvidia. Broadcom is highlighted for its networking chips like Tomahawk and Jericho, which help data flow in AI clusters, and its custom ASICs for specific AI tasks. Micron Technology is also positioned to benefit, specializing in memory and storage hardware crucial for AI systems. These companies are expected to grow alongside Nvidia as AI infrastructure expands.
AI inference is the future; Broadcom and Arm are top stocks
AI inference, the use of AI models in real-world applications, will drive two-thirds of AI computing in 2026, surpassing AI training. Broadcom is a key player with its custom ASICs for AI hyperscalers like Alphabet and Anthropic, complementing Nvidia's GPUs. Arm Holdings is also set to benefit as inference increases demand for efficient CPUs, with its market share in data centers growing. Both companies are well-positioned for this shift in AI computing.
AI inference is the future; Broadcom and Arm are top stocks
AI inference, the use of AI models in real-world applications, will drive two-thirds of AI computing in 2026, surpassing AI training. Broadcom is a key player with its custom ASICs for AI hyperscalers like Alphabet and Anthropic, complementing Nvidia's GPUs. Arm Holdings is also set to benefit as inference increases demand for efficient CPUs, with its market share in data centers growing. Both companies are well-positioned for this shift in AI computing.
Nvidia sells Arm, Applied Digital stakes for Intel investment
Nvidia has sold its stakes in Arm Holdings and Applied Digital to invest in Intel, a legacy tech player now focusing on AI. Applied Digital is an AI data center company that rents Nvidia GPUs. Intel is working with Nvidia to build chips for data centers and computers, receiving significant government support. While Intel shows momentum, competition in the CPU and GPU spaces remains intense.
US stocks steady amid tariff and AI concerns
US stock futures remained stable after a significant sell-off on Monday, influenced by worries over tariffs and artificial intelligence. Global markets experienced a broad decline due to escalating US-China trade tensions and concerns about AI's impact on jobs. Nvidia shares fell due to potential export restrictions to China. Investors are awaiting US producer price index data for inflation clues.
AI rally lifts Dow, S&P 500, Nasdaq ahead of Nvidia earnings
The stock market saw a strong rally on Monday, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all gaining significantly. The tech sector, especially software companies, led the charge as investors anticipated Nvidia's earnings report and the continued growth of AI. This relief rally suggests a focus on AI's long-term potential despite ongoing concerns about tariffs and economic policy.
Netweb Technologies stock surges on AI deals and Nvidia integration
Netweb Technologies' stock saw a significant rise due to its integration with Nvidia's GB200, B100, and B200 accelerators and its status as a top OEM. The company's Tyrone-branded servers and AI workstations are in demand for data centers and enterprises in India. This aligns with India's 'Make in India' initiative, boosting local AI infrastructure. Despite a high valuation, Netweb shows strong financials and growth potential.
Cognex Corporation stock rises on AI automation demand
Cognex Corporation (CGNX) stock is trading at $56.47, driven by strong revenue beats and increasing demand for AI-driven automation in sectors like automotive and logistics. The company reported EPS of $0.68 and revenue of $252.34M, exceeding expectations. Despite a high P/E ratio of 83.04, Cognex maintains healthy margins and a strong cash position, positioning it as a growth stock in the AI automation space.
Hedge funds buy software stocks amid AI concerns
Hedge funds are increasing their investments in software stocks, seeing them as a buying opportunity despite fears that AI could disrupt the sector. While tech and software stocks have faced significant selling pressure due to AI automation concerns, some experts believe AI could also spur growth or lead to acquisitions. Funds have notably increased holdings in companies like RELX.
Top AI stocks for $2,000 investment
For investors with $2,000, NVIDIA, Microsoft, and Alphabet are recommended AI stocks. NVIDIA leads with its GPUs essential for AI model training. Microsoft is integrating AI across its products and has a strategic advantage through its investment in OpenAI. Alphabet, parent of Google, is at the forefront of AI research, powering services like search and cloud computing. These companies offer strong exposure to the growing AI market.
Cato Networks tops $350M revenue milestone with AI boost
Cybersecurity startup Cato Networks surpassed $350 million in annual recurring revenue in 2025, experiencing 43% year-over-year growth. CEO Shlomo Kramer stated that the AI transformation is a significant tailwind for the company, which plans to aggressively gain market share in 2026. Cato Networks aims to become a leading player in the network security market, benefiting from AI's role in automating tasks and enhancing security features.
Coinbase bets on AI for 24/5 trading
Coinbase is expanding its zero-commission equities trading to 24/5, a move CEO Brian Armstrong views as a bet on agentic artificial intelligence. Armstrong believes AI will revolutionize financial markets by enabling AI-powered agents to execute trades and manage portfolios around the clock. This innovation aims to create more efficient markets and increase accessibility for retail investors.
Zscaler India AI hub boosts cyber resilience
Zscaler, in partnership with Bharti Airtel, has launched an AI & Cyber Threat Research Center in India to enhance national cyber resilience and promote trusted AI adoption. This initiative combines Zscaler's global threat intelligence with Airtel's visibility into IoT and mobile traffic for faster threat response. The center aims to strengthen Zscaler's investment narrative around Zero Trust and AI security, potentially influencing its premium sales multiple.
Nvidia's future: Growth, AI, and new markets
Nvidia, the dominant AI chipmaker, faces uncertainty despite strong demand for its GPUs. While companies like Amazon and Alphabet are investing heavily in AI infrastructure, potential slowdowns or shifts to custom chips could impact Nvidia. The company is exploring new markets like quantum computing and automotive hardware to maintain long-term growth beyond its data center segment.
Meta and AMD partner for AI chips and data centers
Meta Platforms is buying billions of dollars worth of Advanced Micro Devices (AMD) chips to develop AI technologies and power new data centers. As part of the deal, Meta can also take up to a 10 percent financial stake in AMD. This partnership highlights the high cost of AI development, leading major tech companies to invest in chip developers as they race to build powerful AI capabilities.
Sources
- Better Artificial Intelligence Stock: Navitas vs. Arm
- Prediction: 2 Artificial Intelligence (AI) Chip Stocks That Will Soar After Feb. 25 (Hint: Not Nvidia)
- Forget AI Training: AI Inference Is the Real Money Maker in 2026. Here Are 2 Stocks to Own.
- Forget AI Training: AI Inference Is the Real Money Maker in 2026. Here Are 2 Stocks to Own.
- Nvidia Just Sold Its Stake in Applied Digital and Arm Holdings and Piled Into a New Artificial Intelligence GPU Player Up Over 7,200% Since Its IPO
- US stock futures steady after Monday’s battering; tariffs, AI concerns dominate
- Stock market today: Dow, S&P 500, Nasdaq jump as software leads AI relief rally ahead of Nvidia earnings
- NETWEB.NS Stock Today, February 24: Buy Calls, AI Deals Lift Momentum
- Trading at $56.47: CGNX Cognex Corporation NASDAQ 24 Feb 2026, AI tailwinds next
- Hedge Funds See Software Stocks as Buying Opportunity Despite AI Assault
- The Best Artificial Intelligence (AI) Stocks to Buy With $2,000 Right Now
- Cyber startup Cato Networks tops revenue milestone as CEO says AI is helping business
- Coinbase’s 24/5 Trading Push is Really a Bet on Agentic AI
- Is Zscaler’s (ZS) India AI Security Hub Quietly Reframing Its Zero Trust Investment Narrative?
- Where Will Nvidia Stock Be in 2030?
- Meta Announces Major Chips-for-Stock Deal With AMD
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