October 1, 2025

finance  
nvidia, openai and tesla Updates

The artificial intelligence sector continues to attract significant investor attention, with analysts highlighting NVIDIA as a top AI stock, raising its price target to $240. This optimism is fueled by an anticipated $2 trillion in AI infrastructure spending, which is expected to benefit NVIDIA's data center, self-driving car, and cloud service solutions. Investors are also exploring growth opportunities beyond major tech firms by investing in semiconductor manufacturing equipment suppliers like Teradyne, Applied Materials, Lam Research, and KLA Corp., whose stocks have seen substantial gains. CoreWeave is significantly expanding its partnership with OpenAI, committing approximately $22.4 billion for training next-generation AI models and investing in AI startups. Meanwhile, companies like Tesla and Apple are also recognized as key players in the AI landscape, included in a list of 13 AI stocks identified by financial experts Dan Ives and Tom Lee. Walmart's valuation is being supported by its strategic AI adoption, which analysts believe can boost productivity and lower labor costs. CrowdStrike is bolstering its AI security offerings with new platforms and acquisitions, aiming for accelerated growth in AI-driven cybersecurity. Accenture, while reporting strong revenue, faces potential short-term profit margin pressure due to its AI investments, though long-term benefits are anticipated. For Canadian investors, various ETFs offer diversified exposure to AI growth, including those holding major tech companies like Nvidia and Microsoft, as well as specialized AI hardware and software funds. Younger investors can consider companies like Navitas Semiconductor, which supplies chips for AI data centers, SoundHound AI for voice recognition, and Datadog for IT system monitoring enhanced by AI.

Key Takeaways

  • Barclays has raised its price target for NVIDIA to $240 per share, identifying it as the most attractive AI stock due to anticipated AI infrastructure spending.
  • Investors are increasingly investing in semiconductor manufacturing equipment suppliers like Teradyne, Applied Materials, and Lam Research as a way to gain exposure to AI growth.
  • CoreWeave is expanding its partnership with OpenAI to approximately $22.4 billion to support the training of future AI models.
  • Walmart's adoption of AI is seen by analysts as a factor that could justify its high valuation by boosting productivity and potentially reducing labor costs.
  • CrowdStrike is enhancing its AI security capabilities through acquisitions and a new platform, with a 'Buy' rating and a $508 price target.
  • Accenture's significant investments in AI are expected to pressure profit margins in the short term but are anticipated to yield long-term benefits.
  • Financial experts Dan Ives and Tom Lee have identified 13 AI stocks, including Tesla and Apple, that are held in both their ETFs.
  • Canadian investors can access AI growth through various ETFs, offering exposure to tech giants like Nvidia and Microsoft, as well as specialized AI hardware and software companies.
  • Companies like Navitas Semiconductor, SoundHound AI, and Datadog are highlighted as potential growth stocks for younger investors interested in different aspects of the AI market.
  • NVIDIA's AI solutions cater to data centers, self-driving cars, and cloud services, positioning it to benefit from substantial AI infrastructure spending.

Barclays boosts NVIDIA price target to $240, calls it top AI stock

Barclays has increased its price target for NVIDIA (NVDA) to $240 per share, up from $200. The firm views NVIDIA as the most attractive company in the AI sector. Analyst Tom O'Malley anticipates that over $2 trillion in planned AI infrastructure spending will significantly benefit NVIDIA's future earnings. The company specializes in AI solutions for data centers, self-driving cars, and cloud services.

Barclays raises NVIDIA price target to $240, names it most attractive AI stock

Barclays has reiterated its 'Overweight' rating for NVIDIA (NVDA) and raised its price target to $240 from $200, calling it the 'most attractive name in our space.' Analyst Tom O'Malley believes that over $2 trillion in announced AI infrastructure spending will eventually boost the company's results. Despite potential spending on custom silicon, NVIDIA is seen as the clear winner in AI. The firm has launched an AI capacity tracker to monitor deployments, expecting NVIDIA's revenues to climb significantly.

Investors flock to Teradyne and other chip stocks for AI gains

Investors are increasingly turning to suppliers of semiconductor manufacturing equipment as a way to invest in artificial intelligence. Teradyne Inc., which provides chip testing tools, has seen its stock nearly double since April. Other companies like Applied Materials Inc. and Lam Research Corp., makers of semiconductor production machines, have also experienced significant gains this year. These companies are benefiting from increased AI spending by major tech firms, though their valuations are becoming more expensive.

AI chip stocks gain as investors seek growth beyond big tech

As artificial intelligence spending grows, investors are looking beyond large chipmakers and focusing on companies that supply equipment for semiconductor manufacturing. Teradyne Inc., a provider of chip testing tools, has seen its stock price rise significantly. Lam Research Corp. and KLA Corp., which make machines for producing semiconductors, are also among the top performers in the semiconductor index. While these equipment suppliers offer a way to invest in AI, their valuations are becoming higher as more investors pile in.

Canadian investors can access AI growth through these ETFs

Canadian investors looking to capitalize on the artificial intelligence boom have several Exchange Traded Funds (ETFs) to consider. These ETFs offer diversified exposure to companies driving AI innovation. Options include the TD Global Technology Leaders Index ETF, which holds major tech players like Nvidia and Microsoft, and the CI Global Artificial Intelligence Fund ETF, a more concentrated portfolio of AI leaders. For those interested in the hardware side, the Global X Artificial Intelligence Semiconductor Index ETF provides access to chip manufacturers. Newer options like the Invesco Morningstar Global Next Gen AI Index ETF and the Evolve Artificial Intelligence Fund ETF also offer unique approaches to AI investing.

Gen Z investors can consider these 3 AI stocks for growth

Younger investors, often referred to as Gen Z, can explore AI stocks like Navitas Semiconductor, SoundHound AI, and Datadog for potential long-term growth. Navitas Semiconductor's specialized chips are being adopted by companies like Nvidia for AI data centers. SoundHound AI focuses on voice recognition technology, poised to benefit from the increasing use of AI assistants. Datadog provides a platform that helps IT professionals monitor and manage complex systems, enhanced by its AI assistant, Bits AI. These companies offer exposure to different facets of the expanding AI market.

CoreWeave expands OpenAI partnership to $22.4 billion for AI model training

CoreWeave is significantly expanding its partnership with OpenAI, increasing the total contract value to approximately $22.4 billion. This expanded agreement will support the training of OpenAI's next-generation AI models. CoreWeave also announced a $1.5 billion commitment to support AI growth in the UK and launched CoreWeave Ventures to invest in AI startups. The company acquired OpenPipe and Weights & Biases to further enhance its AI capabilities. CoreWeave offers a specialized cloud platform for AI workloads, including high-performance GPU compute.

AI could help Walmart justify its high valuation, analysts say

Analysts believe that Walmart's adoption of artificial intelligence could justify its current high valuation and improve its long-term prospects. The company's CEO expects AI to boost productivity and enable growth without increasing headcount, potentially lowering labor costs. While other retailers like Kroger and Amazon also stand to benefit from AI, Walmart's strategic implementation is seen as a key advantage. Risks include AI not meeting expectations or causing significant job losses, which could impact consumer spending.

CrowdStrike strengthens AI security with new platform and acquisitions

CrowdStrike is enhancing its AI security capabilities through acquisitions like Onum and Pangea, and the launch of its Falcon Agentic Security Platform. These advancements position the company at the forefront of AI-driven cybersecurity. Despite trading at a premium, CrowdStrike is rated a 'Buy' with a price target of $508, reflecting expectations of accelerated growth. The company's strong financials and strategic investments support its long-term outlook in the AI security market.

Accenture's AI investments may pressure profit margins short-term

Guggenheim analyst Jonathan Lee has lowered Accenture's (ACN) price target to $285 while maintaining a 'Buy' rating. Although Accenture reported strong revenue growth, increased investments in artificial intelligence are expected to pressure profit margins in the near term. The firm believes the long-term benefits of AI integration will outweigh these short-term challenges. Accenture is actively investing in AI capabilities and partnerships to drive future growth and maintain its market position in AI-driven solutions.

Dan Ives and Tom Lee agree on 13 AI stocks, including Tesla and Apple

Financial experts Dan Ives and Tom Lee have identified 13 artificial intelligence stocks that are held in both their recently launched ETFs. These shared holdings include major tech companies like Tesla, Alphabet, Apple, Broadcom, NVIDIA, Microsoft, and Advanced Micro Devices. Ives views AI as the 'fourth industrial revolution,' expecting significant opportunities for companies leading this transformation. Both the Wedbush AI Revolution ETF and the Granny Shots US Large Cap ETF have shown strong performance year-to-date.

Sources

NVIDIA AI Stock AI Infrastructure Data Centers Self-Driving Cars Cloud Services Teradyne Applied Materials Lam Research KLA Corp Semiconductor Manufacturing Chip Testing Tools AI ETFs TD Global Technology Leaders Index ETF CI Global Artificial Intelligence Fund ETF Global X Artificial Intelligence Semiconductor Index ETF Invesco Morningstar Global Next Gen AI Index ETF Evolve Artificial Intelligence Fund ETF Navitas Semiconductor SoundHound AI Datadog Voice Recognition AI Assistants CoreWeave OpenAI AI Model Training AI Startups GPU Compute Walmart Retail AI CrowdStrike AI Security Cybersecurity Falcon Agentic Security Platform Accenture AI Investments Profit Margins Tesla Apple Alphabet Broadcom Microsoft Advanced Micro Devices Wedbush AI Revolution ETF Granny Shots US Large Cap ETF Fourth Industrial Revolution