NVIDIA (NVDA) Shares Rise as Major Tech Firms Increase AI Investments

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TLDR

  • Goldman Sachs reiterates a Buy rating on NVIDIA and a $250 price target, anticipating a strong quarterly report but cautioning that lofty expectations are already reflected in the share price.
  • As of January 31, 2026, Allianz Technology Trust has reported NVIDIA as its top investment, constituting 10.1% of its portfolio with a value of £210.9 million.
  • The four leading hyperscalers (Google, Amazon, Meta, Microsoft) now forecast combined AI infrastructure investment of $650 billion for 2026, a 70% surge compared to Wall Street’s initial projection of 19%.
  • Amazon is at the forefront of spending intentions with $200 billion, trailed by Google at $180 billion, Microsoft at $140 billion, and Meta at $125 billion for 2026.
  • NVIDIA’s comprehensive strategy, encompassing GPUs, networking, and CUDA software, enables it to retain roughly 30% of total AI data center expenditure as profit.

NVIDIA’s position received further endorsement this week after four of the globe’s biggest tech firms revealed substantial boosts to their artificial intelligence infrastructure budgets for 2026.

NVDA Stock Card

This wave of expenditure significantly outpaces Wall Street’s early forecasts. Initial analyst estimates called for a 19% rise in AI hyperscaler capital expenditures for 2026. The updated projection has reached 70%, driving total investment to approximately $650 billion.

On February 5, Goldman Sachs reaffirmed its Buy rating for NVIDIA, maintaining a $250 price target. The firm predicts the chipmaker will exceed expectations and raise its outlook for the quarter, while noting that the stock price already incorporates high hopes.

The investment bank suggests that short-term share price appreciation will hinge on clarity regarding 2027 revenue. Possible drivers include ongoing positive revisions to hyperscaler spending plans through 2027 and increasing assurance in demand from AI firms such as OpenAI and Anthropic.

Tech Giants Open Their Wallets

Amazon is leading the charge with intended capital expenditures of $200 billion in 2026, a 56% increase from $128 billion in 2025. CEO Andy Jassy commented that customers are choosing AWS for both core and AI workloads, noting the company is generating revenue from new capacity as quickly as it can be deployed.

Google is a close second with $180 billion in anticipated spending, almost double the $91 billion spent in 2025. The company’s initial estimate last year was $75 billion, which was substantially surpassed. Cloud revenue backlog more than doubled in the fourth quarter, fueled by robust demand for its Gemini models.

Microsoft is set to spend over $140 billion in fiscal 2026, a 59% jump from $88 billion in fiscal 2025. CEO Satya Nadella announced the company will boost its AI capacity by more than 80% this year and nearly double its total data center footprint within the next two years.

Meta Platforms intends to invest $125 billion at the midpoint in 2026, a 74% increase from $72 billion in 2025. CEO Mark Zuckerberg stated that AI investments are generating significant growth for its social media platforms and advertising operations.

NVIDIA’s Profitable Position

NVIDIA commands the data center accelerator market with a share exceeding 80%. According to AllianceBernstein, the firm profits from about 30% of all AI data center spending.

The company’s edge goes beyond its graphics processing units. NVIDIA provides an end-to-end solution for AI infrastructure, which includes CPUs, networking gear, and software tools. Revenue from networking products alone surged 162% last quarter.

The CUDA software platform continues to be the benchmark for creating GPU-accelerated applications. This full-stack model permits NVIDIA to secure a significant share of total data center capital expenditures.

Allianz Technology Trust reported NVIDIA as its largest holding, representing 10.11% of its portfolio as of January 31, 2026. The holding is worth £210.9 million within the trust’s total gross assets of £2.09 billion.

Historical Underestimation Pattern

Wall Street has repeatedly lowballed the growth of AI spending in recent years. The consensus forecast was for a 19% increase in AI hyperscaler capital expenditures in 2024, yet actual spending climbed 54%.

The trend continued in 2025. Analysts forecast a 22% increase, but actual spending leapt 64%, as reported by Goldman Sachs.

The 2026 estimates seem to be on a similar path. The original 19% prediction has been increased to 70% following the expanded budget announcements from the four hyperscalers.

NVIDIA shares finished at $182.81 on February 13, 2026, down 2.21% for the session. The stock has advanced 1,180% since the beginning of 2023. The median analyst price target of $250 per share suggests a potential 33% gain from current levels.