Nvidia’s latest quarterly results could signal a boost for other stocks in the artificial intelligence space. The company reported fiscal 2025 fourth-quarter revenue growth of 78% from the year-earlier period. Its guidance for the current quarter was also ahead of analyst expectations. That comes a month after the stock plummeted nearly 17% on worries that the emergence of Chinese AI startup DeepSeek could hinder spending in the space and lead to more competition. “With yet another ‘beat and raise’ quarter, NVIDIA’s latest results support our view that the AI compute industry should continue its strong growth despite recent concerns around low-cost models like DeepSeek and recent noise around data centers,” UBS wrote in a Thursday note. “We maintain our positive view on AI semiconductors and leading cloud platforms, and recommend investors take advantage of elevated near-term volatility by buying the dip in quality AI stocks or through structured strategies.” According to Bank of America, Taiwan Semiconductor could be a key beneficiary of this strong AI demand. Following Nvidia’s results, the firm reiterated its buy rating on the name, believing it’s on track to double year-over-year revenue related to AI in 2025 and calling it the industry’s “go-to supplier” across all clients of graphics processing units (GPUs) and ASICs, known as application-specific integrated circuits. “NVIDIA’s Jan-Q earnings call once again reaffirmed the robust Al industry momentum, reinforcing a positive outlook for TSMC,” wrote analyst Brad Lin, whose $265 price target implies more than 36% upside from Wednesday’s close. “With NVIDIA reporting strong results and solid demand guidance, the rapid ramp-up of Blackwell and continued supply tightness (also reflected by comments on NVIDIA’s gaming business) suggest sustained high utilization rates at TSMC.” While U.S. shares of the company have underperformed this year, falling around 4%, they have risen more than 4% in the past three months. Most analysts are bullish on the name as well, with all but one of the 18 total analysts covering it having a strong buy or buy rating, per LSEG. Earlier this week, the company announced plans to expand its collaboration with Nvidia by integrating Cisco System’s Silicon One technology with Nvidia’s Spectrum-X Ethernet networking platform for data centers. Citi believes that partnership could support more growth for Cisco. On Thursday, Citi maintained its buy rating on the stock and raised its price target to $73 from $71, which implies about 14% upside from Thursday’s close. The stock has already risen more than 9% so far in 2025. “We believe Nvidia’s comments support Cisco’s recent partnership with Nvidia and likely adds to Cisco’s $1B AI order outlook provided on its earnings call,” analyst Atif Malik wrote. “CSCO remains our top comms equipment pick in 2025 given a growing AI opportunity and its relatively undemanding valuation.” CSCO YTD mountain CSCO, year-to-date Other names that could also be beneficiaries of AI demand with Nvidia are Vertiv Holdings and Amphenol , which Evercore ISI noted are suppliers for Nvidia’s Blackwell system. Those stocks have underperformed the broader market this year, falling more than 16% and more than 5%, respectively. Evercore ISI also said that Nvidia’s Hopper 200 growth in the fourth quarter is a “positive” for both Dell Technologies and Hewlett Packard Enterprise “given fears of a pocket of digestion between the Hopper to Blackwell transition.”
