4 tech giants will spend a mixed $300 billion on synthetic intelligence (AI) in 2025, based on a Wall Road agency. This title could possibly be the most important winner.

Morgan Stanley expects 4 tech giants to spend a mixed $300 billion on investments in 2025. In line with its forecast:

• Amazon might spend $96.4 billion

• Microsoft might spend $89.9 billion

• Alphabet might spend $62.6 billion

• Meta platforms might spend $52.3 billion

These numbers signify vital progress in comparison with what these corporations are poised to spend in 2024. It is unimaginable to understand how a lot of that cash will probably be spent particularly on chips. However Morgan Stanley launched a forecast in October suggesting Nvidia might ship as many as 800,000 items of its Blackwell-based GB200 GPU within the first three months of 2025 alone.

Worth estimates differ between $60,000 and $100,000 per GB200 GPU (relying on Forbes), these gross sales might subsequently translate into $64 billion in income through the first quarter of 2025 (primarily based on a median value of $80,000 per GPU).

Provided that Nvidia generated $35 billion in complete income in its most up-to-date quarter, this suggests that vital progress could possibly be simply across the nook.

Experiences recommend that Microsoft is already the most important purchaser of GB200 GPUs, and Nvidia says Oracle plans to create a cluster utilizing greater than 131,000 of them. The GB200 NVL72 system can carry out AI inference at 30 occasions the pace of the equal H100 system, so it is no shock that there is a line of consumers stretching across the block.

Now let’s discuss what all this spending might imply for Nvidia inventory, as a result of regardless of its 700% achieve over the previous two years, it might truly nonetheless be low cost.

Nvidia is on monitor to generate $129 billion in income in its 2025 fiscal 12 months (which ends in January), but it surely’s additionally very worthwhile. The corporate generated earnings per share (EPS) of $2.54 during the last 4 quarters, giving it a price-to-earnings (P/E) ratio of 53.5 as of this writing. That is beneath its 10-year common of 58.8:

Nonetheless, the scenario remains to be enhancing if we glance to the long run. Based mostly on Wall Road’s consensus forecast for Nvidia’s fiscal 2026 (which begins in February 2025), the corporate might generate $4.43 in EPS on $195 billion in income.

Which means that Nvidia inventory is buying and selling at a ahead P/E ratio of simply 30.6. In different phrases, the inventory must rise greater than 90% all through the following 12 months simply to commerce consistent with its 10-year common P/E ratio of 58.8.

And there might even be additional upside potential if Nvidia persistently beats Wall Road’s expectations.

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John Mackey, former CEO of Complete Meals Market, an Amazon subsidiary, is a member of The Motley Idiot’s board of administrators. Suzanne Frey, an govt at Alphabet, is a member of The Motley Idiot’s board of administrators. Randi Zuckerberg, former director of market growth and spokesperson for Fb and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Idiot’s board of administrators. Anthony DiPizio has no place in any of the shares talked about. The Motley Idiot holds positions and recommends Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, Oracle and Tesla. The Motley Idiot recommends the next choices: lengthy January 2026 $395 calls on Microsoft and brief January 2026 $405 calls on Microsoft. The Mad Motley has a disclosure policy.

Four tech giants will spend a combined $300 billion on artificial intelligence (AI) in 2025, according to a Wall Street firm. This title could be the biggest winner. was initially revealed by The Motley Idiot