Key Highlights
- BofA analysts designated NVIDIA, Broadcom, and AMD as premier AI computing investments with price targets of $300, $450, and $280 respectively
- French AI firm Mistral AI secured $830M in funding to acquire approximately 13,800 Nvidia GB300 GPUs, representing roughly $575M in chip revenue
- Broadcom secured OpenAI as a custom chip partner and announced over $100B in AI semiconductor orders through fiscal 2027
- Aletheia Capital projects AMD’s data center business will surge from $17B in 2025 to $77B by 2028
- Cloud infrastructure expenditures worldwide reached $110.9B in Q4 2025, marking a 29% annual increase
Bank of America analysts have identified NVIDIA, Broadcom, and Advanced Micro Devices as their preferred investments within the artificial intelligence computing space, establishing specific price objectives and evaluating potential challenges for each semiconductor company.
This strategic positioning emerges amid accelerating worldwide investment in AI infrastructure. According to Omdia’s research data, global expenditures on cloud infrastructure climbed to $110.9 billion during the fourth quarter of 2025, representing a 29% jump compared to the previous year. Projections indicate another 27% expansion throughout 2026.
For NVIDIA, Bank of America established a $300 price objective, calculated using a 28x multiple on projected 2027 earnings. The financial institution highlighted NVIDIA’s dominant position in AI computing and networking infrastructure as the primary rationale behind this valuation.
Cantor Fitzgerald reinforced its confidence by maintaining an Overweight designation alongside a $300 target price for NVIDIA after the chipmaker’s GTC conference presentation.
French artificial intelligence developer Mistral AI contributed additional momentum to the sector’s growth narrative. The company secured $830 million through debt financing to construct a new computing facility outside Paris, which will accommodate 13,800 of NVIDIA’s GB300 GPU units. Industry analysts estimate this procurement could generate approximately $575 million in chip revenue for NVIDIA.
Space technology venture Starcloud obtained $170 million in capital at a $1.1 billion valuation. The enterprise previously deployed an NVIDIA H100 GPU into orbital operations and has scheduled a subsequent satellite deployment featuring a complete GPU array later this year.
On March 16, NVIDIA unveiled its Space-1 Vera Rubin computing module, engineered to handle data processing during orbital operations instead of transmitting unprocessed information to Earth. NVIDIA has not disclosed a timeline for commercial shipments.
Broadcom Anticipates $100 Billion AI Order Pipeline
Bank of America assigned a $450 price target for Broadcom, applying a 26x multiple to anticipated 2027 earnings. The bank emphasized double-digit profit expansion and robust free cash generation.
Broadcom recently incorporated OpenAI into its custom chip design partnership portfolio through a multi-year agreement to jointly engineer 10 gigawatts of specialized AI accelerators. The semiconductor company maintains similar collaborative arrangements with Google, Meta, Amazon, Microsoft, and Anthropic for custom silicon development.
Executive leadership disclosed more than $100 billion in AI chip commitments secured through fiscal year 2027. The company anticipates AI semiconductor sales will hit $10.7 billion in the upcoming quarter.
Broadcom additionally secured a five-year, $970 million agreement with the Defense Information Systems Agency and initiated high-volume distribution of its Tomahawk 6 switching silicon.
AMD Pursues Data Center Expansion
Bank of America determined a $280 price target for AMD, emphasizing AI sector expansion and increasing CPU market penetration.
Aletheia Capital maintained its Buy recommendation with a $330 price objective. The investment firm anticipates AMD’s server CPU business will achieve a 45% compound annual growth rate spanning 2025 through 2028.
Data center revenues are expected to expand from $17 billion in 2025 to $77 billion by 2028.
AMD partnered with Celestica to introduce the Helios rack-scale AI platform. AMD also finalized a multi-year licensing agreement with Adeia Inc., settling all pending legal disputes between both organizations.
Lisa Su received an appointment to President Trump’s Council of Advisors on Science and Technology.
AMD conveyed conservative expectations regarding its consumer and gaming divisions attributable to escalating memory component costs.
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