Nvidia: A Curious Case of Clever Chips

Now, listen closely, because this is about a company called Nvidia. A rather clever bunch, they are, making little silicon brains – chips, you see – that seem to be taking over the world. The stock price, well, it’s been doing a sort of jig – a tremendously energetic jig, actually – shooting upwards like a startled jack-in-the-box. Since the start of 2023, it’s ballooned – a whopping 1,190% increase! One begins to suspect a mischievous goblin is involved.

Some investors, the jittery sort, are starting to fret. They worry the jig might stop, that this artificial intelligence business – a rather peculiar notion, if you ask me – might lose its fizz. And, of course, there are other chip-makers lurking about, trying to muscle in on the fun. Greedy sorts, most of them.

But here’s the curious thing: the evidence suggests this AI business isn’t going to simply vanish in a puff of smoke. Oh no. It’s actually growing, spreading its tentacles into everything. And Wall Street, that collection of rather serious (and often wrong) people, is remarkably agreed on this Nvidia business.

The State of AI: Hiding in Plain Sight

If you’re unsure about this AI commotion, just peek at the big cloud-providers – Amazon, Microsoft, and Alphabet. They’re spending fortunes – absolutely mountains of money – on these clever chips. They’re building enormous data-centers, filling them with humming machines, all to power this AI thing. It’s rather like watching giants prepare for a very important game.

And Meta Platforms, the company formerly known as Facebook, is joining the fray. They’ve got a treasure trove of user-data – a rather unsettling thought, if you dwell on it – and they’re using it to build their own AI brains. They’re spending like mad, too. It’s a right royal scramble, I tell you.

Then there’s Palantir Technologies, a shadowy sort of company that deals in data-mining and AI. They recently announced results that were, to put it mildly, rather splendid. Revenue jumped a whopping 70%, and profits soared. It seems their Artificial Intelligence Platform is proving rather popular. They’re growing at a rate that would make a beanstalk blush.

And let’s not forget Taiwan Semiconductor Manufacturing – TSMC, they’re called. They’re the leading producer of these high-end AI chips. Their results were also impressive, with revenue up 26%. They say it’s all down to “robust AI-related demand.” A rather dry way of putting it, but the message is clear.

In fact, TSMC just had its best month ever. Can you believe it? All thanks to this insatiable demand for AI. It’s a bit like a giant, hungry beast, gobbling up chips as fast as they can be made.

So, all this heavy spending, combined with the strong results from Palantir and TSMC, leads to a rather obvious conclusion: this AI business is not slowing down. It’s actually accelerating. And Nvidia, my dear readers, is right in the thick of it.

Wall Street is Decidedly Bullish

Now, Wall Street analysts are a fickle bunch. They change their minds more often than a chameleon changes color. But on Nvidia, they’re remarkably united. A whopping 94% rate the stock a buy or strong buy. And none recommend selling. It’s a rare sight, indeed.

Evercore ISI analyst Mark Lipacis is the biggest bull of the lot. He thinks Nvidia could jump 85% from here. He says it’s a “Top Pick” for 2026, thanks to this “tectonic shift to parallel processing.” A rather grand phrase, but it seems he believes Nvidia is building the foundations for a new era of computing.

The stock has dipped a bit recently, thanks to worries about competition. But that, combined with Nvidia’s strong earnings, has made the valuation rather attractive. It now trades for less than 25 times forward earnings. A fair price, I’d say, for a company at the heart of this AI boom.

I’d argue it’s a bargain, really. An industry leader, driven by strong tailwinds, with a knack for getting things done. That’s why Nvidia stock is still a buy. A rather clever investment, if you ask me. And who knows? Perhaps this AI business will turn out to be something truly extraordinary. Or perhaps it will all come crashing down in a heap of silicon and disappointment. Only time will tell. But for now, I’m putting my money on Nvidia. And I suggest you do the same.

2026-02-13 11:03

The State of AI: Hiding in Plain Sight

Wall Street is Decidedly Bullish

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