4 Tech Titans Will Spend a Combined $300 Billion on Artificial Intelligence (AI) in 2025, According to 1 Wall Street Firm. This Stock Could Be the Biggest Winner.

Morgan Stanley expects four tech giants to spend a combined $300 billion on capex in 2025. Based on its forecast:

• Amazon could spend $96.4 billion

• Microsoft could spend $89.9 billion

• Alphabet could spend $62.6 billion

• Meta Platforms could spend $52.3 billion

Those figures represent material growth from what those companies are on track to spend in 2024. It’s impossible to know how much of that money will go toward chips, specifically. But Morgan Stanley issued a forecast back in October that suggests Nvidia could ship up to 800,000 units of its Blackwell-based GB200 GPU during the first three months of 2025 alone.

Price estimates range between $60,000 and $100,000 per GB200 GPU (according to Forbes), so those sales could translate into $64 billion of revenue during the first quarter of 2025 (based on an average price of $80,000 per GPU).

Since Nvidia generated $35 billion in total revenue in its most recent quarter, that implies significant growth could be around the corner.

Reports suggest Microsoft is already the biggest buyer of GB200 GPUs, and Nvidia says Oracle plans to build a cluster using over 131,000 of them. The GB200 NVL72 system can perform AI inference at 30 times the speed of the equivalent H100 system, so it’s no surprise there’s a line of buyers that stretches around the block.

Now, let’s talk about what all of that spending could mean for Nvidia stock because despite its 700% gain over the last two years, it might actually still be cheap.

Nvidia is on track to generate $129 billion in revenue during its fiscal 2025 (which ends in January), but it’s also highly profitable. The company has delivered $2.54 in earnings per share (EPS) over the last four quarters, giving it a price-to-earnings (P/E) ratio of 53.5 as of this writing. That’s below its 10-year average of 58.8:

However, the picture gets even better when you look into the future. Based on Wall Street’s consensus forecast for Nvidia’s fiscal year 2026 (which begins in Feb. 2025), the company could generate $4.43 in EPS on $195 billion in revenue.

That means Nvidia stock trades at a forward P/E ratio of just 30.6. In other words, the stock would have to soar over 90% throughout next year just to trade in line with its 10-year average P/E ratio of 58.8.

And there might even be further upside potential based on the fact Nvidia has consistently beaten Wall Street’s expectations.

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, Oracle, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

4 Tech Titans Will Spend a Combined $300 Billion on Artificial Intelligence (AI) in 2025, According to 1 Wall Street Firm. This Stock Could Be the Biggest Winner. was originally published by The Motley Fool