Nvidia has launched its Vera Rubin AI platform this year, a move responding to high demand for AI chips. The platform is powered by seven chips, with all leading cloud providers, including Microsoft's next-generation AI data centers, lined up for deployment.
Demand for AI chips remains high as larger AI models require increasing computing power. This trend is expected to grow with the adoption of agentic AI and other advanced systems.
As the dominant AI chip supplier, Nvidia reported third-quarter revenue of $57 billion, a 22% increase over the previous quarter. Data center sales were the main driver. The company guided for fiscal fourth-quarter revenue to reach approximately $65 billion, representing sequential growth of about 14%.
Nvidia's adjusted operating profit grew 25% over the previous quarter to nearly $38 billion. The stock trades at 25 times this year's earnings forecasts on Wall Street. Analysts forecast the company's earnings to increase by 57% this year.
Top hyperscalers continue to sign multibillion-dollar deals for data center leases, pointing to long-term AI infrastructure buildout. Nvidia sees $10 trillion of legacy computing hardware transitioning to modern systems.
Meta Platforms, with over 3.5 billion daily active users across platforms like Instagram and Facebook, is trading at 21 times 2026 earnings estimates. This represents a discount to Alphabet's forward multiple of 29. If Meta reaches a comparable valuation, the stock could rise 38% in 2026.
Meta spent $62 billion on capital expenditures over the last year on data centers and technologies. It monetizes AI capabilities by delivering relevant recommendations to users, driving advertising revenue growth.
Analysts anticipate Meta's full-year revenue for 2025 to be up 21% when fourth-quarter earnings are released. This is driven by balanced growth in ad volume and pricing. Time spent watching videos on Instagram increased 30% year over year in the third quarter.
Meta's Meta AI feature has over 1 billion monthly active users, with usage growing as models improve. The company paid more than $1.3 billion in dividends last quarter, with a trailing dividend yield of 0.33%, while holding over $44 billion in cash and short-term investments.