TLDR
- Bank of America named NVIDIA, Broadcom, and AMD as top AI compute picks with price targets of $300, $450, and $280
- Mistral AI raised $830M to buy ~13,800 Nvidia GB300 GPUs for a Paris data center, worth an estimated $575M in chip sales
- Broadcom added OpenAI as a chip design partner and flagged over $100B in AI orders for fiscal 2027
- AMD’s data center revenue is forecast to grow from $17B in 2025 to $77B by 2028, per Aletheia Capital
- Global cloud infrastructure spending hit $110.9B in Q4 2025, up 29% year-over-year
Bank of America has named NVIDIA, Broadcom, and Advanced Micro Devices as its top picks in the AI compute sector, setting price targets and outlining risks for each company.
The moves come as AI infrastructure spending continues to rise globally. Global cloud infrastructure spending reached $110.9 billion in Q4 2025, up 29% year-over-year, according to research firm Omdia. Another 27% growth rate is forecast for 2026.
Bank of America set a $300 price target for NVIDIA, based on 28 times its 2027 estimated earnings. The bank cited NVIDIA’s leading market share in AI compute and networking as its main justification.
Cantor Fitzgerald also reiterated its Overweight rating and $300 price target for NVIDIA following the company’s GTC conference.
French AI company Mistral AI added to the positive news flow. It raised $830 million in debt financing to build a new data center near Paris, housing 13,800 of NVIDIA’s GB300 GPUs. Analysts estimate the order could be worth around $575 million in chip sales to NVIDIA.
Space startup Starcloud raised $170 million at a $1.1 billion valuation. The company already sent an NVIDIA H100 GPU into orbit and plans a second satellite launch with a full GPU cluster later this year.
On March 16, NVIDIA announced its Space-1 Vera Rubin computing module, designed to process data in orbit rather than sending raw data back to Earth. NVIDIA has not said when shipments will begin.
Broadcom Eyes $100 Billion in AI Orders
Bank of America set a $450 price target for Broadcom, based on 26 times its 2027 estimated earnings. The bank pointed to double-digit earnings growth and strong free cash flow.
Broadcom recently added OpenAI as a chip design partner in a multiyear deal to co-develop 10 gigawatts of custom AI accelerators. The company also works with Google, Meta, Amazon, Microsoft, and Anthropic on custom silicon.
Management flagged over $100 billion in AI chip orders booked for fiscal 2027. AI semiconductor revenue is projected to reach $10.7 billion next quarter.
Broadcom also won a five-year, $970 million contract with the Defense Information Systems Agency and began volume shipments of its Tomahawk 6 switch chip.
AMD Targets Data Center Growth
Bank of America set a $280 price target for AMD, citing AI growth and CPU share gains.
Aletheia Capital reiterated a Buy rating with a $330 price target. The firm projects AMD’s server CPU revenue will grow at a 45% compound annual growth rate from 2025 to 2028.
Data center revenue is forecast to grow from $17 billion in 2025 to $77 billion by 2028.
AMD and Celestica announced the Helios rack-scale AI platform. AMD also signed a multi-year licensing deal with Adeia Inc., resolving all outstanding litigation between the two companies.
Lisa Su was appointed to President Trump’s Council of Advisors on Science and Technology.
AMD expressed caution about its client and gaming segments due to rising memory prices.
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