NVIDIA”s stock has gained traction following significant increases in artificial intelligence (AI) infrastructure budgets announced by leading technology companies. Goldman Sachs has reiterated its “Buy” rating for NVIDIA, setting a price target of $250, predicting an impressive quarter ahead while acknowledging that high expectations are already reflected in the current stock price.
The recent disclosures indicate that four major hyperscalers—Amazon, Google, Microsoft, and Meta—are collectively expected to spend about $650 billion on AI infrastructure by 2026. This figure represents a remarkable adjustment from earlier projections, which anticipated a mere 19% increase in spending. The new estimates suggest a staggering 70% upward revision, showcasing the rapidly growing demand for AI technologies.
Amazon leads the charge with planned expenditures of $200 billion for 2026, a significant leap from $128 billion in 2025. CEO Andy Jassy highlighted that customers are increasingly seeking AWS for both core and AI applications, emphasizing the company”s strategy to monetize this capacity swiftly.
Following closely, Google is projected to allocate $180 billion, nearly doubling its previous year”s spending. Microsoft is set to invest over $140 billion, while Meta plans to inject $125 billion into its AI initiatives. Each company recognizes the transformative potential of AI, with investments driving growth across various platforms.
NVIDIA stands to benefit significantly from this surge in spending. The company commands an impressive 80% market share in data center accelerators and captures around 30% of total AI data center expenditures as profit. Its unique full-stack approach, which encompasses graphics processing units (GPUs), networking solutions, and software tools, positions it strategically within the market.
The company”s CUDA software platform remains the industry standard for GPU-accelerated application development, further solidifying NVIDIA”s competitive edge. Recent reports show that networking revenue alone soared by 162% last quarter, underscoring the demand for NVIDIA”s comprehensive solutions.
Allianz Technology Trust has also recognized NVIDIA”s significance, revealing it as its largest holding, comprising 10.1% of its portfolio as of January 31, 2026, valued at £210.9 million within a total of £2.09 billion in gross assets.
Historically, Wall Street has underestimated the growth trajectory of AI spending. For instance, the consensus forecast predicted a 19% increase in 2024, yet actual spending surged by 54%. This trend of underestimation appears to be continuing, with the 2026 projections reflecting a significant revision in expectations.
As of February 13, 2026, NVIDIA shares closed at $182.81, experiencing a slight drop of 2.21% for the day. The stock has, however, skyrocketed by 1,180% since early 2023, with analysts projecting a median price target of $250 per share, indicating a potential upside of 33% from current levels.
