has emerged as BMO's preferred name among a newly covered group of semiconductor stocks, with the bank setting a $340 price target and an Outperform rating in a research report dated Aug. 21.
The call comes as Nvidia prepares for the next phase of its AI infrastructure roadmap. BMO expects the Vera Rubin NVL72 platform to enter production during the second half of the year, adding another potential driver to the company's data-center business.
BMO's valuation view also stands out. The firm estimates Nvidia is valued at roughly 18 times forward earnings while forecasting revenue growth of 84% in fiscal 2027 and 50% in fiscal 2028.
BMO's $340 target suggests the bank sees room for further gains as Nvidia advances its next-generation AI platform.
Shares of NVDA remained down 0.5% in Friday trading.
Key Takeaways Consensus estimates for NVIDIA's Q2 revenue and EPS suggest y/y increases of 96.4% and 99.1%, respectively.NVIDIA's Data Center results may benefit from hyperscale demand, inference adoption and generative AI.NVIDIA's Edge Computing momentum is supported by demand across gaming, robotics and automotive markets. NVIDIA Corporation (NVDA - Free Report) is scheduled to report second-quarter fiscal 2027 results on Aug. 26, after market close.
The company expects revenues of $91 billion (+/-2%) for the quarter. The Zacks Consensus Estimate is pegged at $91.8 billion, which indicates a whopping 96.4% increase from the year-ago reported figure.
The Zacks Consensus Estimate for quarterly earnings has been revised upward by 2 cents over the past 60 days to $2.09. This suggests growth of 99.1% from the year-ago quarter’s earnings of $1.05 per share.
Image Source: Zacks Investment Research
Earnings of the graphics chip maker surpassed the Zacks Consensus Estimate in the trailing four quarters, delivering an average surprise of 5.52%.
Q2 Earnings Whispers for NVIDIA TechnologyOur proven model does not conclusively predict an earnings beat for NVDA this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.
Earnings ESP: NVIDIA has an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: NVIDIA currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Influence NVIDIA’s Q2 ResultsNVIDIA’s fiscal second-quarter top line is likely to have benefited from the continued strength in its Data Center business. The increasing adoption of cloud-based solutions amid the growing hybrid working trend is anticipated to have boosted the demand for its chips across the Data Center business. An increase in hyperscale demand and growing adoption in the inference market are likely to have acted as tailwinds in the to-be-reported quarter.
The Data Center business should have benefited from the growing demand for generative AI and large language models using GPUs based on NVIDIA Blackwell architectures. The strong demand for its chips from large cloud service and consumer Internet companies is anticipated to have aided the segment’s top-line growth in the to-be-reported quarter.
NVIDIA is also strengthening its position beyond GPUs through networking products such as InfiniBand, Spectrum-X Ethernet and NVLink. This is likely to have enabled the company to capture a larger portion of AI infrastructure spending during the fiscal second quarter.
NVIDIA’s fiscal second-quarter performance is also likely to have benefited from the continued momentum in its Edge Computing segment, fueled by strong demand across the gaming, robotics and automotive end markets.
NVIDIA’s Stock Price Performance & ValuationShares of NVIDIA have been highly volatile over the past year. The stock has gained 21.9% over the past year, underperforming the Zacks Semiconductor – General industry’s rise of 27.3%. The stock has also underperformed major semiconductor shares, including Intel Corporation (INTC - Free Report) , Advanced Micro Devices, Inc. (AMD - Free Report) and Broadcom Inc. (AVGO - Free Report) . Shares of Intel, Advanced Micro Devices and Broadcom have grown 271.5%, 179.3% and 24.2%, respectively.
NVIDIA 1-Year Price Return Performance
Image Source: Zacks Investment Research
Now, let us look at the value NVIDIA offers investors at the current levels. NVIDIA is trading at a discount with a forward 12-month price-to-earnings (P/E) of 19.69X compared with the industry’s 22.14X, reflecting an attractive valuation.
Forward 12-Month P/E Multiple
Image Source: Zacks Investment Research
Compared with other chip giants, NVDA trades at a lower multiple against Intel, Advanced Micro Devices and Broadcom. Currently, Intel, Advanced Micro Devices and Broadcom trade at a forward P/E of 51.77X, 39.08X and 20.60X, respectively.
Investment Consideration for NVIDIAThe company remains the clear leader in AI infrastructure. Cloud providers, enterprises and governments continue to invest billions of dollars in building AI data centers, and NVIDIA's GPUs remain the preferred choice for training and running advanced AI models. The company's newest Blackwell and Vera Rubin AI platforms are seeing strong customer adoption due to their superior performance and energy efficiency.
Another key advantage is NVIDIA's software ecosystem. CUDA, along with its expanding AI software portfolio, creates high switching costs for customers, making it difficult for competitors to take market share. This competitive advantage extends well beyond hardware and should continue supporting long-term growth.
As AI adoption expands from model training to large-scale inference and enterprise deployment, NVIDIA is positioned to benefit across every major phase of the AI investment cycle.
Final Thoughts: Buy NVDA Stock NowAs a leading player in the semiconductor industry, NVIDIA has benefited from its dominance in GPUs and strategic expansion into AI and data centers. The company's strong product portfolio, leadership in AI and relentless innovation present a compelling investment opportunity. A lower valuation multiple than the industry also suggests that NVIDIA is a good investment option right now.
Data-center operator IREN Ltd. (IREN, Financials) has built its business on Bitcoin mining and is beginning to demonstrate that AI drive is more than a promise.
Microsoft Corp. (MSFT, Financials) has officially approved Horizon 1, the first of four data centers IREN is developing under a five-year, $9.7 billion deal.
That's important because IREN may now begin to send Microsoft a bill every month. One of the major uncertainties around the company until now has been whether it can really execute an AI buildout that dwarfs its existing business. The first real proof point is Horizon 1.
Also operating the site were Nvidia Corp. (NVDA, Financials) computers with GB300, which gave the site Exemplar Cloud status, offering IREN another vote of confidence in performance and reliability.
The corporation has already put together a $3.65 billion loan package connected to the Microsoft contract that should pay much of the GPU spending. It also has a separate five-year $3.4 billion cloud deal with Nvidia.
There's still a lot to prove. While IREN's AI business remains small in comparison to Bitcoin mining, the growth comes with substantial cash needs.
But that story is changing. Investors are no longer merely waiting for IREN to announce huge AI acquisitions. They are beginning to see those deals turn into operational infrastructure and now revenue.
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Elon Musk’s decision to build SpaceX’s (NASDAQ:SPCX | SPCX Price Prediction) AI infrastructure around NVIDIA’s (NASDAQ:NVDA) Vera Rubin platform, reportedly claiming 20% of NVIDIA’s next-platform capacity, is the kind of headline that makes AMD bulls nervous. It denies Advanced Micro Devices (NASDAQ:AMD) a flagship logo at exactly the moment Lisa Su is trying to convince Wall Street her Instinct roadmap can rival Jensen Huang’s.
The stock has felt it. Shares closed at $469.46 on Thursday, down 13.77% over the past month even after a blowout quarter.
The question is whether SpaceX is a symptom of something structural or a single lost deal in a market AMD believes will approach $2 trillion by 2030. The answer sits closer to the second interpretation than the first.
What the SpaceX Loss Actually Signals Musk’s rationale centers on allocation guarantees. SpaceX wants guaranteed allocation on a platform NVIDIA controls, and NVIDIA chooses who gets capacity.
That gives NVIDIA a lever AMD cannot yet match: the ability to convert scarcity into exclusivity with the largest AI spenders on earth.
SpaceX also fits a very specific customer profile. It is a single-tenant buyer aligned philosophically with Musk’s xAI, and Grok training runs benefit from staying within a single hardware stack.
Losing that customer stings, but reading it as evidence that AMD is falling apart overlooks the fact that AMD actually won this cycle.
Counter-Evidence Is Loud AMD reported Q2 revenue of $11.54 billion, up 50.1% year over year, with Data Center revenue of $6.72 billion, up 107%.
That segment now generates $2.1 billion in operating income, a swing from a loss a year ago tied to China export charges.
The customer list backing the forward story runs deep. AMD has committed deployments with OpenAI, Meta (NASDAQ:META), and Anthropic, whom Lisa Su called “strategic anchor customers,” plus a 2-gigawatt Anthropic deal on MI450 in Helios and Microsoft (NASDAQ:MSFT) Azure at scale.
Su told analysts, “We enter the second half with strong momentum as EPYC demand accelerates, Instinct deployments scale and Helios begins to ramp.”
Verdict: Contested, Not Collapsing NVIDIA still commands preferential access to hyperscale capital and can still lock in customers like SpaceX through allocation politics rather than benchmarks. That advantage is real, and AMD’s forward P/E of 65 assumes it narrows.
But AMD’s challenge remains intact. Data Center is expected to more than double year over year in 2027, and management raised its long-term targets rather than trimming them. (We reverse-engineered what the biggest chip winners looked like early on and put the pattern in a free playbook, here.)
Reddit sentiment scored a neutral 48 this week, with the most upvoted thread titled “Looking for different perspectives, sell or reduce my position in AMD.” That caution is fair given the recent drawdown.
SpaceX is a loss worth acknowledging, although it is one customer inside a market where AMD has already secured multi-gigawatt commitments from the companies actually building frontier models. The AI challenge is being contested, which is a different thing entirely.
Contact [email protected] for any questions or corrections.
AMD (NASDAQ: AMD | AMD Price Prediction) and NVIDIA (NASDAQ: NVDA) both just delivered post-earnings reports that reframe the AI hardware race. AMD posted record revenue of $11.54 billion with Data Center more than doubling. NVIDIA answered with an $82 billion quarter and Blackwell shipping into every major hyperscaler.
The question is whether AMD is finally catching up, or whether Jensen Huang just widened the moat again.
Helios Lands. Blackwell Scales. Two Different Zip Codes. AMD’s quarter was carried by Data Center revenue of $6.72 billion, up 107% year over year and now 58% of total revenue. EPYC server chips grew greater than 70% year over year, and Instinct more than doubled.
Lisa Su called out Helios, the new rack combining EPYC Venice, MI450 GPUs and Pensando networking, saying customer pull is “very strong and tracking ahead of our initial forecasts.” Anthropic committed to up to two gigawatts of MI450 series GPUs in Helios, with the first gigawatt starting in 2027.
NVIDIA operates at a different altitude. Data center revenue hit $75 billion, up 92%, with networking alone nearly tripling year over year.
Huang told investors the company sees $1 trillion in Blackwell and Rubin revenue from 2025 through calendar 2027, and that “we are growing share in inference very, very quickly.” Buybacks got an $80 billion refresh. The dividend jumped to 25 cents per share.
Business Driver AMD NVIDIA Data Center Revenue $6.72B (+107%) $75B (+92%) Non-GAAP Gross Margin 56% 75% Next-Quarter Guide ~$13B (+41%) $91B (+/-2%) Challenger Rack vs. Full-Stack Monopoly AMD is betting that a credible second source of gigawatt-scale AI compute is worth many billions to hyperscalers who dislike sole-vendor risk. Rackham software now runs more than 3 million models out of the box, with open-source contributions up more than tenfold over the past year. That is real progress against CUDA, though not parity.
NVIDIA’s pitch is vertical integration. Vera Rubin production begins in Q3, and Huang says it can deliver up to 35x higher inference throughput than Blackwell. Standalone Vera CPUs open a claimed $200 billion TAM on top of GPUs. The competitive gap extends well beyond silicon into NVLink, Spectrum-X, InfiniBand and CUDA glued together.
All that gigawatt-scale compute still has to be powered, cooled, and networked by somebody, which is the whole thesis behind our free report on seven AI infrastructure suppliers that aren’t chipmakers.
What I Want to See in Q3 and Q4 I will be watching Helios yields and how quickly Anthropic’s first gigawatt actually turns into revenue. AMD guided Q3 to roughly $13 billion, and management expects Data Center to more than double year-over-year in 2027.
You should also watch NVIDIA’s ability to defend gross margin at 75% while China compute stays excluded from guidance.
How the Setup Favors Each Name On the fundamentals, NVIDIA still screens as the higher-quality name. A P/E of 34 paired with 65.6% operating margins is rare at this scale, and Rubin looks like another generational lead.
AMD screens as the higher-beta way to play the theme. Shares are already up 180.05% over the past year, and the stock trades at a forward P/E of 68, which prices in a lot of Helios success. If MI450 ramps cleanly through 2027, AMD has room to run.
If yields slip or China policy tightens further, the platform that “runs every frontier AI model” looks like the more defensive exposure. Reddit’s neutral, hesitant tone on AMD, with sentiment scores of 45, 47, 48, 48, and 50, tells me I am not alone in that caution.
Contact [email protected] for any questions or corrections.
Nvidia’s next-generation AI chip, the Space-1 Vera Rubin Module, is set to be used on Starcloud’s future satellites. (Nvidia Illustration) Starcloud says it has raised $250 million in new funding to support the creation of a constellation of data center satellites powered by Nvidia’s next-generation AI chips.
The Series A extension funding round was led by Manhattan West, with participation from existing investors including Benchmark, EQT, Soma, NFX and 776. Among the new investors joining for this round are Nvidia, Cisco Investments, Cedar Capital, Goanna Capital and Standard Capital.
Founded in 2024, Starcloud is headquartered in Redmond, Wash., and is building production lines for its Starcloud-3 spacecraft at a new 100,000-square-foot manufacturing facility in Woodinville, Wash. The newly announced round brings the startup’s total capital raised to $450 million, with a post-money valuation of $2.3 billion.
Nvidia’s participation in the funding round brings Starcloud’s collaboration with the computer-chip titan to a new level. In November 2025, Starcloud flew Nvidia’s H100 GPU to orbit for the first time. It used the chip to train a large language model called NanoGPT — marking a milestone in space-based AI data processing.
Starcloud plans to equip future satellites with Nvidia’s Space-1 Vera Rubin Module, which Nvidia says will deliver 25 times as much in-space compute capability as the H100. Starcloud’s satellites will serve as an early flight platform for the space-rated chips.
“This fresh capital empowers us to build the infrastructure to launch many more of Nvidia’s most advanced GPUs into space,” Starcloud co-founder and CEO Philip Johnston said today in a news release.
Starcloud was founded by chief technology officer Ezra Feilden, CEO Philip Johnston and chief engineer Adi Oltean. (Starcloud Photo) Starcloud says the new investment will fund the continued buildout of manufacturing capacity, engineering work in collaboration with Nvidia and the procurement of future launch slots. Manhattan West’s Lauren Selig will join Starcloud’s team as a board observer.
Starcloud has filed an application with the Federal Communications Commission to operate as many as 88,000 satellites as orbital data centers for AI and other applications. It’s not the only company targeting the market for orbital data centers. Most notably, SpaceX has filed its own plans to put up to a million data center satellites in space, for a project called Starmind.
The push to move AI infrastructure into space is driven by growing terrestrial bottlenecks surrounding land, power and water consumption — and by the political controversies those bottlenecks have sparked.
Key Takeaways Cerebras says CS-4 can exceed 4,400 tokens per second per user and run up to 30 times faster than GPUs.CBRS says CS-4 offers up to 10 times more throughput per watt than CS-3, easing data-center constraints.Cerebras posted 287% cloud and services revenue growth as NVIDIA and AMD sharpen inference competition. Cerebras (CBRS - Free Report) unveiled its fourth-generation CS-4 AI system, which the company says can deliver inference speeds of more than 4,400 tokens per second per user on GPT-OSS-120B and perform up to 30 times faster than GPU-based solutions. CS-4 delivers 750 PFLOPS of AI compute and 7.2 Tbps of I/O, strengthening CBRS’ position in the rapidly expanding AI inference market and its competitive prowess against NVIDIA (NVDA - Free Report) and Advanced Micro Devices (AMD - Free Report) . CS-4 is expected to strengthen Cerebras’ rapidly expanding cloud business, manufacturing capacity and data-center footprint.
The CS-4 could improve Cerebras’ infrastructure capabilities by producing more AI output from each system and each unit of power. CBRS says the platform can deliver up to 10 times more throughput per watt than the prior-generation CS-3. This is particularly important because Cerebras has identified data-center capacity as a major constraint on growth. Higher throughput and lower power consumption could allow CBRS to serve more demand from a fixed infrastructure footprint, reduce cost per token and potentially increase revenue and gross margin per system.
Cerebras is benefiting from strong underlying demand. In the second quarter of 2026, core cloud and other services revenues jumped 287% year over year to $127.7 million, while total core revenues rose 103% year over year to $209.9 million. CBRS reported $25.4 billion in Remaining Performance Obligations (RPOs) and more than 600 megawatts of data-center capacity live and under contract for delivery by the end of 2027, while planning to expand manufacturing capacity more than tenfold in 2026. Cerebras said several late-stage hardware opportunities represent hundreds of millions of dollars, while significant cloud deals are developing for 2027.
CS-4 could further strengthen Cerebras’ appeal in coding, agentic AI and real-time enterprise applications, where inference speed is especially important. Cerebras already serves customers including Figma, Cognition, Block, AlphaSense and GSK, while its fast inference technology is being used in security applications with CrowdStrike. CBRS distributes its inference capabilities through its cloud and strategic partners, broadening its reach among enterprise developers. Support for GPT-5.6 Sol helps validate CBRS’ ability to run large frontier models and highlights the maturity of its software stack.
CBRS Faces Tough CompetitionNVIDIA is strengthening its footprint by advancing from Blackwell to Vera Rubin. The company’s dominant installed base and full-stack AI platform have been a key catalyst. NVIDIA reported $75.2 billion of first-quarter fiscal 2027 Data Center revenues and said Blackwell systems are deployed across hyperscalers, AI clouds and frontier-model developers. NVIDIA says Blackwell Ultra increased inference throughput 2.7 times while reducing cost per token by 60% in six months, directly targeting the same inference economics Cerebras emphasizes with CS-4.
AMD is challenging Cerebras with its Helios rack-scale platform, which combines MI450-series GPUs, EPYC Venice CPUs, Pensando networking and ROCm software. AMD says Helios can deliver up to 15% more throughput at the same rack power and up to 30% more tokens per dollar than competing platforms. Customer demand is tracking ahead of AMD’s initial expectations, supported by deployments with OpenAI, Meta, Anthropic and Microsoft. AMD plans annual rack-scale platform updates, with MI500 expected in 2027 and inferencing performance targeted to increase more than 2,000-fold over four years.
CBRS’ Share Price Performance, Valuation & EstimatesShares of Cerebras have declined 18.4% over the past three months, underperforming the broader Zacks Business Services sector’s appreciation of 1.9%.
CBRS Stock’s Price Performance
Image Source: Zacks Investment Research
Cerebras currently has a Value Score of F, reflecting outstretched valuation.
Moreover, Wall Street’s consensus price target implies roughly 37.62% upside from current levels.
Price Target chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Cerebras’ loss is currently pegged at 13 cents per share an improvement from loss of 32 cents per share over the past 30 days.
Cerebras currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Microsoft (NASDAQ:MSFT | MSFT Price Prediction) and NVIDIA (NASDAQ:NVDA) just posted the two most consequential AI earnings reports of the year. Microsoft closed fiscal 2026 with Azure surpassing $100 billion in annual revenue and Microsoft 365 Copilot exceeding 30 million paid seats.
NVIDIA followed with a quarter that felt closer to a coronation, delivering $81.6 billion in revenue, up 85% year over year. The question worth answering is which of these giants has the more credible path to doubling from here.
Azure Sells Software. Blackwell Sells Everything Else Microsoft is monetizing AI through contracts, seats, and consumption. Commercial remaining performance obligations reached $678 billion, up 84% year over year, which is a very large amount of pre-booked revenue that de-risks the next several years.
NVIDIA sells the underlying hardware, and the pricing power shows. Non-GAAP gross margin held at 75% even as Blackwell systems dominated the mix, and management guided Q2 revenue to roughly $91 billion.
Data Center did the heavy lifting, with networking revenue up 199% year over year, driven by InfiniBand and NVLink. Jensen Huang described the moment simply: “Agentic AI has arrived.”
Satya Nadella framed Microsoft’s position differently, telling investors the company is “advancing the frontier on the cost-to-outcome curve.” Both bets are working, but they compound in very different ways.
Math of Doubling From Here This is where the comparison narrows the case for NVIDIA bulls. At a market cap of roughly $5.27 trillion, doubling implies a valuation few companies in history have approached.
Microsoft, by contrast, sits at $3.6 trillion with a P/E near 27x and a forward P/E near 24x. NVIDIA trades at a trailing P/E of 34x, which is reasonable only if growth stays parabolic.
Lens Microsoft NVIDIA Revenue growth 17.8% 85.2% Net margin 40.3% 63% Core risk Capex return China, cyclicality NVIDIA carries the tougher risks. Guidance excludes any China data center compute revenue, and supply commitments have grown to $145 billion, which is a lot of forward exposure if hyperscaler orders wobble.
Why I Lean Toward Microsoft for the Double I think NVIDIA is the better business today, but Microsoft is the better setup to double from here. Doubling a $3.6 trillion company on contracted revenue and Copilot penetration is a more repeatable story than doubling a $5.3 trillion hardware supplier that already prices in near-flawless execution.
Microsoft’s $115.9 billion in FY26 capex is enormous, and free cash flow is under pressure as a result. But the money is buying an asset base that Azure and Copilot will monetize for a decade, and it flows to the power, cooling, and networking suppliers we profiled in a free report on the AI buildout beyond the chipmakers, here.
If you prefer variance, NVIDIA still fits. Its model base case is $270.51, with a bull case near $312.81, and Vera Rubin ramps up in the second half.
For the specific question of a 100% return, though, Microsoft looks like the company still building its monetization engine, while NVIDIA has already delivered much of the acceleration investors were pricing in.
Contact [email protected] for any questions or corrections.
A billionaire venture investor told his audience on Wednesday that the biggest companies on earth are seeing earnings growth with “literally zero” to do with AI. That same day, NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) closed at $216.85, sitting on a 945% gain over five years and a 24% gain over one year.
I have owned Nvidia for over 15 years, and I have never seen a wider gap between what one of the loudest voices in venture is saying and what the market is pricing. Chamath Palihapitiya’s Aug. 20 posts collide directly with the earnings numbers rolling out of Redmond and Santa Clara. The next test arrives fast: Nvidia reports Q3 2026 after the close on Aug. 26.
Three Posts, One Morning Palihapitiya’s Aug. 20 sequence went in this order. At 11:59 UTC, he asked where AI tokens were going: “Yet, high value tasks don’t seem to be increasing…so where are all these tokens going??”
Six minutes later, he warned that data center backlash in Texas, Pennsylvania and Ohio “is a powder keg and has the potential to unwind 200-300 basis points of annual GDP if it metastasizes,” adding that “The collective leadership of frontier AI has failed miserably in doing the basics.”
Later that evening, he wrote of the Global 2000: “Their earnings growth has literally zero to do with AI or anything remotely close…”
What Microsoft Actually Reported Microsoft (NASDAQ:MSFT) sits inside the Global 2000, and its most recent quarter tells a specific story. Q4 FY2026 revenue reached $90 billion, up 18%. Azure surpassed $100 billion in annual revenue and grew 41%. Commercial remaining performance obligations, the committed backlog, expanded 84% to $678 billion.
Satya Nadella tied that growth to AI: revenue reflected “strong demand across both the Azure platform and our first-party AI applications and services.” Microsoft 365 Copilot has over 30 million paid seats, with net seat additions more than doubling quarter over quarter. Full-year FY26 capex hit $115.95B, well above the prior year.
Nvidia’s Q1 FY2027 earnings report, filed with the SEC on May 20, showed revenue of $81.615 billion, up 85% year over year. Data Center revenue was $75.246 billion, up 92%. Networking alone jumped 199%. Total supply commitments stand at $119.0 billion.
Your 401(k) Is Already In This Trade The S&P 500 tracker held across retirement accounts, SPDR S&P 500 ETF Trust (NYSEARCA:SPY), closed at $762.60 on Aug. 20, up 20% over one year and 12% year to date. Nvidia carries a market cap of $5.25T and Microsoft $3.57T. If Palihapitiya is right that AI has no earnings connection at the largest firms, index weights currently priced on the opposite assumption would need to reset (we profiled seven of the picks-and-shovels suppliers behind that spending, from power to cooling, in a free report you can grab here). If Nadella and Jensen Huang are right, those weights get validated by the earnings report.
Recent weeks have been choppy. Nvidia is down 4% over the past week. Microsoft is down 3% over the same span, and its year-to-date change sits essentially flat. Read that as context.
Eight Minutes To “Yay” Here is where the story got strange. Eight minutes after the “literally zero” post, Palihapitiya quote tweeted an announcement from @8090_Factory reading “1,000+ MCP connections live in Software Factory” with the single word “Yay.” MCP, the Model Context Protocol, is the plumbing that lets AI agents connect to enterprise systems. Cheering that milestone while questioning enterprise AI ROI is a tension worth watching, though our sources confirm only the quote tweet, not any ownership or founder role at 8090.
Aug. 26: The Question That Matters Nvidia’s Q2 FY27 guide sits at $91.0 billion, plus or minus 2%, with expected non-GAAP gross margin of 75.0%. If you own an S&P 500 index fund, you already own this question. Keep an eye on the stock next Wednesday. Does AI spending show up in the buyers’ earnings, or only in the sellers’? Palihapitiya has staked out a view. The earnings report gets to answer.
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Though this trading week tilts toward a close in the red, Kevin Hincks sees next week offering more chances for bullish momentum, from a slew of ecodata to Nvidia (NVDA) earnings. Bitcoin's best week since 2024 is something Kevin notes as a strong positive to close out this week as President Trump pushes Congress to pass the legislation.
NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) reports fiscal second-quarter results on Wednesday, August 26, 2026, after the close. The company is worth more than $5 trillion, and every hyperscaler spending plan, sovereign AI project, and new buyer standardizing on Blackwell or Rubin runs through this one report.
Management guided revenue to $91 billion, plus or minus 2%, with China data center compute revenue excluded again. Last quarter, the company delivered $82 billion in revenue, up 85% year-over-year, and Blackwell was the fastest product ramp in the company’s history.
The bar for a satisfying result has moved substantially higher. However, beating is close to priced in.
The real question is whether Wednesday’s report validates the $1 trillion in Blackwell and Rubin revenue from 2025 through calendar 2027 that Jensen Huang has already staked. This is a referendum on the AI infrastructure buildout (the power, cooling, and networking suppliers riding the same wave are the subject of a free report we put together here), and the setup favors those who need every data point to be strong.
How Last Quarter Reset the Bar Q1 was an outlier by any measure. Revenue of $81.61 billion beat consensus by 3.16%, non-GAAP EPS of 1.87 came in 5.6% above estimates, and net income rose 210.63% year-over-year.
Data Center revenue reached $75 billion, up 92% year-over-year, and networking alone nearly tripled. Free cash flow hit $49 billion, and the board authorized an additional $80 billion in buybacks.
Since then, Huang has told investors NVIDIA has full confidence in that trillion-dollar Blackwell and Rubin figure. Total supply commitments now stand at $145 billion, and management expects to be supply-constrained throughout the entire life of Vera Rubin.
The stock has moved less than you might expect given all of that. Shares are up 16.41% year-to-date and 23.79% over the past year, but they have fallen 3.75% in the last week heading into the report.
Numbers Wall Street Is Underwriting Consensus for the current quarter sits close to management’s own guidance, with the market treating $91 billion as a floor rather than a ceiling.
Metric Q2 FY27 Guidance Q2 FY26 Actual Revenue $91.0B +/-2% $46.74B Non-GAAP EPS Not disclosed $1.05 Non-GAAP Gross Margin 75.0% +/-50 bps – FY26 Full-Year Revenue – $215.94B FY26 Full-Year EPS – $4.77 The prior-year comparison shows the scale of what is implied. Revenue guidance is nearly double the level NVIDIA delivered in the same quarter last year.
Management did not issue a specific full-year FY2027 revenue figure, but full-year gross margin is expected to remain in the mid-70s, and full-year operating expense growth was raised to the upper 40s year over year.
Every one of the past five reports has produced a beat on both lines. The stock’s average one-week reaction after those beats has still been negative 2.68%, which tells you plenty about where expectations sit.
Where My Attention Goes on Wednesday Data Center segmentation matters more than the headline. Last quarter NVIDIA moved to a two-market framework: Hyperscale at $38 billion and ACIE (AI clouds, industrial, enterprise) at $37 billion, up 31% quarter-over-quarter.
ACIE is the category management expects to grow faster than hyperscale over time, because it serves an economy worth approximately $50 trillion to $80 trillion. If that segment posts another double-digit sequential gain, the diversification story holds up.
Vera Rubin visibility is the second thing I’ll watch. Production shipments begin in Q3, and every major frontier model company is expected to adopt Rubin from the start.
Any tightening of that timing, or any commentary that pulls Q4 volumes forward, matters far more than a couple points of Q2 upside. Google Cloud’s A5X instances alone can support up to 960,000 Rubin GPUs across multiple sites.
Gross margin is the third watchpoint. There’s a strong probability that non-GAAP gross margin will land between 74% and 76%, matching guidance. A reading above 76% would tell you Blackwell yields are running ahead of internal plans.
Then there is China. Guidance again excludes data center compute revenue from China, and while H-200 licenses were approved, NVIDIA has generated no revenue from those shipments yet. Any change in tone on shipments actually landing would be a genuine upside surprise.
Why Wednesday Sets the Ceiling for the AI Trade A $5 trillion company reporting after five straight beats faces a different test than a growth story on the way up. Analyst consensus target is $302.83, against a current price of $216.85.
Beats have not consistently translated into gains. The two most recent quarters saw 30-day declines of 9.34% and 10.67%, despite each surprise landing above 5%.
What can break that pattern is Q3 guidance strong enough to make the trillion-dollar figure from Blackwell and Rubin look conservative. If Huang signals that demand for Vera Rubin is running ahead of supply commitments, the ceiling lifts.
If guidance simply matches expectations, I think the reaction skews lower because clearing $91 billion by a couple of points is already the base case embedded in the stock.
Contact [email protected] for any questions or corrections.
Today’s economic calendar closes out MOPEX week with very limited U.S. data releases. The primary scheduled catalyst arrives with Preliminary August S&P Global Manufacturing, Services, and Composite PMI. These reports will provide an early look at economic activity during August, with traders likely paying particular attention to whether strength or weakness is broad based across both manufacturing and services. The monthly SEMI Billings Report follows well after the cash close at 6:00PM ET.
With very little else on the calendar, monthly options expiration may be the more important backdrop for today’s session. A significant amount of index and equity options expire today, and the unwinding, rolling, and expiration of those positions can alter dealer hedging requirements throughout the session. That can contribute to price becoming pinned around heavily positioned strikes at times, while movement away from those areas can become faster as existing hedges are adjusted. Expiration related flows can also make intraday price action less straightforward than the quiet economic calendar might otherwise suggest.
With the major economic releases for the week largely behind us, today’s session may ultimately be driven more by positioning, technical levels, options flows, and end of week adjustments than fundamental headlines. Watch the 9:45AM ET PMI reaction, but also pay close attention to how price behaves around important positioning levels as expiration progresses.
Now, we will discuss SPY, QQQ, AAPL, MSFT, NVDA, GOOGL, META, and TSLA.
SPDR S&P 500 ETF Trust (SPY)
SPY is currently trading around 765.25 as markets close out MOPEX week with a very light U.S. economic calendar. With few scheduled catalysts, options expiration flows, technical positioning, and broader risk sentiment may have greater influence on today’s session. If buyers defend 765.25, a move toward 771.25 may develop, followed by 777.25 if momentum builds. Sustained strength above 783.25 would improve the short term structure and put buyers back in control.
If SPY loses 765.25 with conviction, sellers may press into 759.25. A breakdown there could expose 753.25, while continued weakness may bring the 747.25 region into focus. Preliminary S&P Global PMI data at 9:45AM ET represents the primary scheduled catalyst, but today’s monthly options expiration could create less predictable price action around heavily positioned areas as the session progresses.
Invesco QQQ Trust Series 1 (QQQ)
QQQ is currently trading around 715.50 and remains well below its recent highs as technology continues working through a period of consolidation. If buyers defend this pivot, price may advance toward 722.50, followed by 729.50 if momentum strengthens. Sustained strength above 736.50 would indicate improving institutional demand and begin repairing the recent short term weakness.
If 715.50 fails to hold, sellers may drive price toward 709.00. A deeper breakdown could expose 702.50, while continued weakness may bring the 696.00 region into play. With several mega cap components still under pressure, watch whether technology participates if the broader market attempts to rally or continues showing relative weakness into expiration.
Apple Inc. (AAPL)
AAPL is currently trading around 311.75 and continues to hold up relatively well compared with several other mega cap technology names. If buyers defend this pivot, price may rotate toward 317.00, followed by 322.25 if momentum builds. Sustained strength above 327.50 would reinforce the constructive short term structure.
If 311.75 breaks lower, sellers may test 306.75 quickly. Continued downside pressure could extend into 301.75, while deeper weakness may bring the 296.75 region into focus. The psychological 300 level remains an important downside reference if broader selling pressure develops.
Microsoft Corp. (MSFT)
MSFT is currently trading around 482.00 and remains below the psychologically important 500 level following its recent pullback. If buyers defend this area, price may recover toward 489.00, followed by 496.00 if momentum builds. Sustained strength above 503.00 would reclaim 500 and materially improve the short term structure.
If 482.00 fails to hold, sellers may press into 475.00. A deeper pullback could test 468.00, while continued weakness may bring the 461.00 region into play. Until MSFT begins reclaiming higher levels, rallies toward 500 should continue to be monitored for potential overhead supply.
NVIDIA Corporation (NVDA)
NVDA is currently trading around 217.75 and remains an important leadership gauge for semiconductors and QQQ. If buyers defend this pivot, a move toward 225.00 may develop, followed by 232.25 if momentum strengthens. Sustained trade above 239.50 would indicate renewed upside expansion and improve the broader semiconductor structure.
If 217.75 fails to hold, sellers may test 211.75 quickly. Continued downside could extend into 205.75, while deeper weakness may bring the psychological 200 area into focus. With NVDA carrying substantial influence across the technology complex, its ability to stabilize could provide an important read on broader risk appetite.
Alphabet Inc Class A (GOOGL)
GOOGL is currently trading around 342.50 and continues attempting to establish support following its recent weakness. If buyers defend this level, price may rotate toward 349.00, followed by 355.50 if momentum improves. Sustained strength above 362.00 would indicate a more meaningful recovery attempt and improving institutional participation.
If 342.50 fails to hold, sellers may guide price toward 336.50. A breakdown there could expose 330.50, while continued weakness may bring the 324.50 region into play. Relative performance against QQQ remains important, particularly if broader technology strength develops and GOOGL continues struggling to participate.
Meta Platforms Inc (META)
META is currently trading around 549.75 and attempting to stabilize following its substantial pullback from the 600 area. If buyers defend this pivot, a recovery toward 557.25 may develop, followed by 564.75 if momentum builds. Sustained strength above 572.25 would begin repairing the short term structure and provide stronger evidence that buyers are establishing a base.
If 549.75 breaks lower, sellers may guide price toward 542.75. A deeper pullback could test 535.75, while continued weakness may bring the 528.75 region into focus. Until META begins reclaiming higher levels with conviction, traders should remain aware of the potential for rallies to encounter overhead supply.
Tesla Inc. (TSLA)
TSLA is currently trading around 348.75 and continues to show better relative momentum than several other large cap technology names. If buyers defend this pivot, a move toward 357.25 may develop, followed by 365.75 if momentum continues. Sustained strength above 374.25 would indicate stronger speculative participation and continued improvement in the short term structure.
If 348.75 fails to hold, sellers may test 340.75 quickly. Continued downside pressure could extend into 332.75, while deeper weakness may bring the 324.75 region into play. With TSLA carrying substantial options activity, today’s expiration could also contribute to sharper intraday movement around heavily positioned strikes.
Final Word: Good luck, trade safely, and have a great weekend!
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
Alliance Private Wealth LLC reduced its stake in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 27.1% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 23,734 shares of the computer hardware maker’s stock after selling 8,829 shares during the period. NVIDIA makes up about 1.6% of Alliance Private Wealth LLC’s holdings, making the stock its 18th largest holding. Alliance Private Wealth LLC’s holdings in NVIDIA were worth $4,749,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Other hedge funds also recently made changes to their positions in the company. Brighton Jones LLC boosted its stake in NVIDIA by 12.4% in the 4th quarter. Brighton Jones LLC now owns 324,901 shares of the computer hardware maker’s stock worth $43,631,000 after purchasing an additional 35,815 shares during the period. Bank Pictet & Cie Europe AG increased its position in shares of NVIDIA by 1.0% during the fourth quarter. Bank Pictet & Cie Europe AG now owns 2,346,417 shares of the computer hardware maker’s stock valued at $315,100,000 after buying an additional 22,929 shares during the period. Highview Capital Management LLC DE increased its position in shares of NVIDIA by 6.7% during the fourth quarter. Highview Capital Management LLC DE now owns 58,396 shares of the computer hardware maker’s stock valued at $7,842,000 after buying an additional 3,653 shares during the period. Hudson Value Partners LLC lifted its holdings in shares of NVIDIA by 30.7% in the fourth quarter. Hudson Value Partners LLC now owns 50,658 shares of the computer hardware maker’s stock worth $6,805,000 after buying an additional 11,900 shares in the last quarter. Finally, Wealth Group Ltd. boosted its position in shares of NVIDIA by 15.7% in the first quarter. Wealth Group Ltd. now owns 6,598 shares of the computer hardware maker’s stock valued at $715,000 after acquiring an additional 896 shares during the period. 65.27% of the stock is currently owned by hedge funds and other institutional investors.
NVIDIA Stock Performance NASDAQ NVDA opened at $216.85 on Friday. NVIDIA Corporation has a 52-week low of $164.07 and a 52-week high of $236.54. The company has a fifty day moving average of $207.28 and a 200-day moving average of $199.41. The company has a market capitalization of $5.25 trillion, a P/E ratio of 33.21, a P/E/G ratio of 0.43 and a beta of 2.23. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44.
NVIDIA (NASDAQ:NVDA – Get Free Report) last released its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, beating analysts’ consensus estimates of $1.76 by $0.11. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The business had revenue of $81.61 billion for the quarter, compared to analysts’ expectations of $78.42 billion. During the same quarter in the prior year, the firm earned $0.81 earnings per share. The firm’s revenue was up 85.2% on a year-over-year basis. As a group, equities research analysts predict that NVIDIA Corporation will post 8.6 EPS for the current fiscal year. NVIDIA announced that its board has authorized a stock repurchase program on Wednesday, May 20th that allows the company to repurchase $80.00 billion in shares. This repurchase authorization allows the computer hardware maker to repurchase up to 1.5% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s leadership believes its stock is undervalued.
Analysts Set New Price Targets Several brokerages recently commented on NVDA. Craig Hallum boosted their price objective on shares of NVIDIA from $245.00 to $275.00 and gave the company a “buy” rating in a research note on Thursday, May 21st. Susquehanna reiterated a “positive” rating and issued a $275.00 target price (up from $250.00) on shares of NVIDIA in a research note on Tuesday, May 12th. Wells Fargo & Company reissued an “overweight” rating and issued a $315.00 price target on shares of NVIDIA in a report on Tuesday, August 11th. Robert W. Baird set a $500.00 price target on shares of NVIDIA and gave the company an “outperform” rating in a research report on Thursday, May 21st. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and issued a $255.00 price target (up from $220.00) on shares of NVIDIA in a report on Thursday, May 21st. Three research analysts have rated the stock with a Strong Buy rating, forty-nine have issued a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, NVIDIA has an average rating of “Buy” and a consensus target price of $307.28.
Read Our Latest Stock Analysis on NVDA
Trending Headlines about NVIDIA Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: China shipments could reopen a portion of NVIDIA’s market. NVIDIA reportedly plans to begin small-batch shipments of a China-specific AI chip by year-end, while limited H200 shipments have already reached Chinese customers. Although the near-term revenue contribution may be modest, the developments could reduce the impact of export restrictions and preserve relationships with major customers such as Alibaba, ByteDance, and Tencent. Nvidia to ship AI chip for China by year-end Positive Sentiment: Analysts remain optimistic ahead of the August 26 earnings release. Jefferies expects fiscal second-quarter revenue to exceed consensus by roughly $3 billion, while RBC reaffirmed its Outperform rating with a $300 price target. Stifel also maintained a Buy rating, citing supply-chain evidence from Foxconn and Super Micro and continued strength in the GPU cycle. RBC rating and price target Foxconn and Super Micro supply-chain analysis Positive Sentiment: Enterprise and infrastructure demand continues to expand. IBM signed a multiyear $240 million agreement with Together AI to deploy NVIDIA HGX B300 systems on IBM Cloud, using NVIDIA’s Spectrum-X networking. CoreWeave also signed a multibillion-dollar deal giving Hudson River Trading access to NVIDIA’s newest systems, supporting the company’s data-center demand outlook. IBM and Together AI agreement Neutral Sentiment: Investors are focused on whether NVIDIA can clear elevated expectations. The company’s earnings report is the major near-term catalyst, with attention on revenue guidance, demand for the Rubin platform, gross margins amid higher memory costs, and visibility into future spending by hyperscalers and AI developers. Negative Sentiment: China’s opportunity remains constrained. Analysts estimate that returning H200 products to China may provide only limited near-term revenue, while Beijing may restrict domestic use and U.S. regulators are examining loopholes that allow Chinese firms to access NVIDIA computing capacity through overseas data centers. China AI access and export-control loopholes Negative Sentiment: Valuation and competitive risks are limiting enthusiasm. Commentary highlights concentrated AI spending, potential competition from custom chips and rivals, and the possibility that exceptionally strong results are already reflected in the share price. NVIDIA has also underperformed the broader semiconductor index this year, increasing investor sensitivity to any earnings or guidance shortfall. Insiders Place Their Bets In other NVIDIA news, Director John Dabiri sold 625 shares of NVIDIA stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total transaction of $133,750.00. Following the transaction, the director directly owned 14,163 shares of the company’s stock, valued at approximately $3,030,882. This trade represents a 4.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen C. Neal sold 15,500 shares of the business’s stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the completion of the sale, the director owned 116,135 shares of the company’s stock, valued at approximately $25,053,803.55. The trade was a 11.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 1,901,125 shares of company stock valued at $410,583,015 over the last 90 days. Insiders own 3.94% of the company’s stock.
About NVIDIA (Free Report)
NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.
The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.
Featured Stories Five stocks we like better than NVIDIA 3 Energy Stocks Raising Dividends as the Sector Surges 5 Reasons the S&P 500 Could Keep Rallying Through Year-End Walmart’s Post-Earnings Drop Could Be a Buying Opportunity The Trade Desk’s Earnings Miss Raises a Bigger Question About Its AI Future Want to see what other hedge funds are holding NVDA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVIDIA Corporation (NASDAQ:NVDA – Free Report).
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Nvidia (NVDA -0.33%) is all set to release its fiscal 2027 second-quarter results (for the three months ended July 26) after the market closes on Aug. 26.
The market will be eagerly awaiting the artificial intelligence (AI) bellwether's numbers and outlook, as they will provide clarity about the state of the AI market. It is worth noting that Nvidia stock has underperformed the broader semiconductor sector this year. The PHLX Semiconductor Sector index's 63% gains in 2026 are way ahead of the 21% jump in Nvidia's stock price this year.
However, a closer look at the earnings reports of the major U.S. hyperscalers suggests that this semiconductor stock could get a huge shot in the arm when it releases its quarterly report on Aug. 26.
Image source: Nvidia.
A $2.3 trillion revenue backlog points toward greater demand for Nvidia's chipsThere is incredible demand for AI services, and that's evident from the massive revenue backlogs that major hyperscalers in the U.S. are sitting on. Bank of America notes that the top four cloud service providers in the U.S. ended the second quarter with an enormous backlog of $2.3 trillion. Analyst Vivek Arya points out that companies such as Microsoft, Oracle, Amazon, and Alphabet's Google need to invest aggressively in cloud computing capacity to meet their backlogs.
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Oracle, for instance, estimates that it can convert only 12% of its backlog into revenue over the next year, while Microsoft expects to recognize 30% of the backlog as revenue over the same period. As a result, Arya expects that hyperscalers will continue investing more money in computing capacity. Moreover, neocloud companies, such as CoreWeave and Nebius, along with pure-play AI service providers, are on track to significantly expand their capacities.
Not surprisingly, Nvidia's peer, Advanced Micro Devices, noted on its recent earnings call that the total addressable market (TAM) for AI compute is poised to grow at a 40% compound annual growth rate (CAGR) over the long run, generating nearly $2 trillion in revenue by 2030. What's more, AMD now expects to clock faster growth than its earlier long-term revenue growth estimate of 35%.
Given that Nvidia is a much bigger player than AMD, with an estimated 80% to 90% share of the AI accelerator market, it is poised to win big from the lucrative opportunity over here. The increased backlogs of hyperscalers should ideally boost the demand for Nvidia's AI chips, paving the way for the company to deliver stronger-than-expected numbers and guidance.
Also, AMD noted on the earnings call that it now expects the server CPU market to grow by more than 50% annually through 2030, generating $220 billion in annual revenue.
That's well above the $60 billion estimate for the server CPU market that AMD delivered in November 2025. Nvidia has already set its sights on this massive market, noting that it can sell $20 billion worth of stand-alone server CPUs this year. Nvidia previously sold its server CPUs as part of rack-scale systems, and its decision to sell these chips on a stand-alone basis has unlocked a solid growth opportunity.
Nvidia will reportedly start selling its Vera server CPUs this month. This product could play a central role in helping the company deliver better-than-expected results and guidance, as server CPUs are now finding traction in AI data centers to support agentic AI and inference workloads.
Stronger-than-expected results and guidance should give the stock a big boostAnalysts are expecting a 97% year-over-year increase in Nvidia's revenue in fiscal Q2 to almost $92 billion, along with a similar increase in earnings per share to $2.08. The top-line estimate is slightly higher than the midpoint of Nvidia's guidance of $91 billion. It is also worth noting that Nvidia anticipates its non-GAAP gross margin to increase to 75% for fiscal Q2 from 72.7% in the year-ago period.
The margin increase that Nvidia has guided for suggests that its bottom-line growth could exceed Wall Street's expectations. Also, analysts are expecting Nvidia to guide for $2.35 in earnings per share for the current quarter, which would be an 80% increase from the year-ago quarter. There is a solid probability that Nvidia will call for a stronger earnings increase, as it is poised to start shipping its Vera Rubin processors in the second half of 2026.
The company has already noted that it has an order book worth a whopping $1 trillion for 2026 and 2027. For comparison, the company has generated $253 billion in revenue for the trailing twelve months. So, there is a chance that analysts could be underestimating Nvidia's growth potential, which is why a positive earnings surprise on Aug. 26 could send the stock soaring.
Moreover, Nvidia is trading at an attractive 25 times forward earnings, which is slightly lower than the tech-laden Nasdaq-100 index's forward earnings multiple of 26. So, investors are getting a solid deal on this AI stock right now when its outstanding earnings growth is considered. That's why it seems like a good idea to buy shares of Nvidia before its upcoming earnings report, as solid results and guidance could send the stock on a parabolic run.
could be heading toward a record quarterly revenue surprise, with Jefferies forecasting a wider-than-expected beat when the chipmaker reports fiscal second-quarter 2027 results next week.
Jefferies estimates Nvidia will post $95 billion in revenue, compared with the $92.07 billion consensus forecast. The firm also sees fiscal third-quarter revenue reaching $108 billion, about $4.3 billion above expectations.
The outlook comes as Nvidia prepares to increase production of its next-generation Vera Rubin platform. Jefferies expects Rubin-related products to become a larger portion of GPU revenue later this year, with the platform potentially overtaking Blackwell as Nvidia's main revenue contributor in fiscal 2028.
The firm also expects Rubin deployments to scale rapidly, forecasting more than 13,000 racks by the end of 2026 and over 120,000 during 2027. Nvidia's participation in an OpenAI-related AI infrastructure project with SB Energy could further support demand, although Jefferies cautioned that the investment may raise questions about customer financing.
For NVDA stock, the projections point to another strong growth phase, but financing concerns could remain a factor for investors.
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Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
Baird analyst Luke Junk initiated coverage on Hubbell Inc (NYSE:HUBB) with an Outperform rating and announced a price target of $550. Hubbell closed at $469.76 on Thursday. See how other analysts view this stock. BMO Capital analyst Harsh Kumar initiated coverage on NVIDIA Corp (NASDAQ:NVDA) with an Outperform rating and announced a price target of $340. Nvidia shares closed at $216.85 on Thursday. See how other analysts view this stock. Needham analyst Gil Blum initiated coverage on Faeth Therapeutics, Inc (NASDAQ:FTH) with a Buy rating and announced a price target of $56. Faeth Therapeutics closed at $32.10 on Thursday. See how other analysts view this stock. Citizens analyst James McCanless initiated coverage on Builders FirstSource, Inc. (NYSE:BLDR) with a Market Perform rating. Builders FirstSource shares closed at $70.32 on Thursday. See how other analysts view this stock. Cantor Fitzgerald analyst Li Watsek initiated coverage on Nuvation Bio Inc (NYSE:NUVB) with an Overweight rating. Nuvation Bio closed at $6.83 on Thursday. See how other analysts view this stock. Considering buying AVGO stock? Here’s what analysts think:
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Nvidia (NVDA -0.33%) has become one of the most important companies in the world, driving artificial intelligence (AI) development and creating loads of shareholder wealth in the process. However, there are signs the stock may be slowing down. It's beating the market this year, up 16.8% vs. 12.2% for the S&P 500, but that's nowhere near the gains it's delivered in the past.
At the current price, it trades at under 33.3 times trailing 12-month earnings, just off a 5-year low. Nvidia reports fiscal 2027 second-quarter (ended July 27) earnings on Wednesday, Aug. 26. Is now the time to buy?
Image source: Nvidia.
Why Nvidia is still on top The results speak for themselves. Nvidia continues to dominate AI chips and infrastructure, and its growing revenue at a pace more akin to a young upstart. Revenue rose 85% year over year in the first quarter, topping guidance and expectations. The company is highly profitable, and it tends to beat on earnings.
Nvidia sits at the center of AI development, which is growing by leaps and bounds, and it's one of the main beneficiaries of AI spending from hyperscalers like Amazon, Alphabet, and Microsoft. These companies are expected to invest about $1 trillion globally in 2026 alone, according to Goldman Sachs.
Nvidia has done a fantastic job of constructing a long-term moat for its products, keeping the heavy hitters in its ecosystem. It's a lot more than chips these days, with complete AI development systems, including its CUDA programming platform and AI supercomputers that bundle chips into powerful compute units. This creates high barriers to entry for competitors.
It's constantly upping its game, launching ever-more powerful chips and platforms, such as the new Vera Rubin architecture, which is starting to ship. Most recently, Nvidia announced a deal with several financiers, including Goldman Sachs and Blackstone, to build fully functional data factories to rent out to clients, and it's providing funding for OpenAI to lease a data center in Ohio for 20 years.
Why is Nvidia stock cheap? While a P/E ratio of 33.3 isn't objectively cheap, it's cheap comparatively for Nvidia stock, and it's cheap for a company reporting such high growth. However, on a price-to-sales basis, it's fairly expensive, trading at 21 times trailing 12-month sales.
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The stakes for Nvidia are also higher right now, which is what the market is concerned about. AI is growing rapidly, but it's also changing rapidly. While AI spend is expected to grow, dozens of disruptors are rolling out new and improved platforms that may be cheaper to run. What seems like a sure bet right now could look different a year from now.
Nvidia has been able to anticipate trends and pivot thus far, and it's still a great stock to own. However, it may not jump after earnings, and investors should only buy with an eye on the long term. I also wouldn't take a huge position at this point.
Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Blackstone, Goldman Sachs Group, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) heads into its Aug. 26 FY Q2 2027 report with fundamentals, capital return and a demand backdrop that make it one of the cleanest large-cap AI setups in the market. This is a compounder with a catalyst.
Three Reasons The Setup Is Clean 1. Guidance is conservative, and the beat streak is intact: Management guided Q2 revenue to $91 billion plus or minus 2% with non-GAAP gross margin of 75%, and that guide excludes any Data Center compute revenue from China. NVIDIA has beaten EPS estimates by 5.42%, 6.58%, 4.84%, and 3.96% across the last four quarters. Polymarket implies a 0.953 probability of another beat on Aug. 26.
2. Demand visibility is unprecedented: Jensen Huang said “demand has gone parabolic” and NVIDIA reiterated “full confidence in the $1 trillion in Blackwell and Rubin revenue we foresee from 2025 through calendar 2027.” Supply-related commitments now sit at $119 billion. That is booked backlog.
3. Capital return has become material: The board authorized an additional $80 billion buyback on top of $38.5 billion remaining, and NVIDIA raised the quarterly dividend from 1 cent to 25 cents. Q1 free cash flow was $48.5 billion. Retirement accounts want that combination.
Head-To-Head Beat The obvious alternatives are Advanced Micro Devices (NASDAQ:AMD) and Broadcom (NASDAQ:AVGO). NVIDIA’s Data Center segment alone printed $75.2 billion in a single quarter, up 92% year over year, with Data Center Networking up 199%. AMD’s data center franchise is a fraction of that scale. Broadcom is a real AI ASIC winner, but it trades at a higher earnings multiple than NVIDIA’s P/E of 44 while growing slower than NVIDIA’s 85.2% Q1 revenue growth. You are paying up for less growth.
One Risk, Dismissed China. NVIDIA shipped zero H20 units to China in Q1, still beat, and still guided to $91 billion for Q2 with China excluded. If export restrictions were a thesis breaker, the numbers would already show it. They do not. Still, the setup into the Aug. 26 after-close report favors continued execution against a conservative guide.
Contact [email protected] for any questions or corrections.
Key Takeaways
Nvidia is due to report earnings Wednesday afternoon, with options pricing suggesting traders see the stock swinging up to 6% by the end of the week following the results.Analysts expect sales and profits roughly doubled from a year ago as big tech companies pour billions of dollars into AI data centers.
Nvidia is scheduled to post earnings after the closing bell on Wednesday, with traders anticipating a big move from the AI chip leader’s stock.1
Based on current options pricing, traders expect Nvidia (NVDA) shares could swing up to 6% in either direction by the end of the week following the results. A move of that size from Thursday’s close could push the shares as high as $229, approaching their May record just above $236, or drag the stock back below $205.
Nvidia shares have climbed 16% since the start of the year, but are still down some 8% from their May highs after a broader pullback in the AI trade amid concerns around the sustainability of spending on America’s AI buildout.
Why This Matters to Investors
Nvidia could face a particularly challenging setup heading into Wednesday’s earnings, as worries about an AI bubble have weighed on sentiment.
Though analysts widely expect Nvidia to post strong results, quarterly reports have tended to be a sell-the-news event for the chipmaker. Nvidia shares fell the day after each of the company’s last four quarterly reports, and Morgan Stanley analysts told clients recently that they “aren’t necessarily optimistic that trend reverses.” Investor attention could focus on Nvidia’s defense of its market share in the face of growing competition, along with worries about circular financing, Morgan Stanley wrote.2
Nvidia is projected to report a record $92.16 billion in second-quarter revenue, along with adjusted earnings of $2.09 per share, both roughly doubling year-over-year. $85.67 billion of that revenue is expected to come from Nvidia’s data center segment, up 108% from a year ago, per Visible Alpha estimates.
Analysts remain overwhelmingly bullish on Nvidia stock despite the recent volatility, with all but one of the 13 analysts tracked by Visible Alpha recommending buying the stock. Their mean target of $296 would suggest more than 35% upside from Thursday’s close.
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The deal involves an investment of several hundred million dollars and cements the chip maker's role in developing data-center projects at the earliest stages.
Micron Technology stock NASDAQ:MU is heading into Nvidia’s August 26 earnings report with one of Wall Street’s most aggressive semiconductor price targets in focus.
D.A. Davidson analyst Gil Luria raised his Micron target to $2,000 from $1,500 after the memory maker’s fiscal third-quarter results in June, maintaining a Buy rating.
The call rests on a bold idea, as AI demand and long-term customer agreements have made Micron’s historically cyclical earnings far more predictable.
That thesis now faces a stress test. MU is still about 22% below its June 25 record close of $1,213.37 after a sharp summer correction, including a 24% drop in July.
Luria’s target followed Micron’s fiscal third-quarter revenue of $41.46 billion and adjusted earnings of $25.11 a share.
“We posit that Micron has entered an era where it has some of the semi industry’s best visibility,” Luria said.
He added that the “memory cycle is far from over” and expects tight supply-demand conditions through at least calendar 2027.
That visibility matters because memory stocks historically receive lower valuation multiples. High prices encourage producers to add capacity, supply catches up and profits eventually fall.
Micron is trying to change that pattern through multiyear strategic customer agreements designed to improve demand visibility and make financial performance more durable.
The $2,000 target therefore assumes this cycle lasts longer and behaves differently from earlier ones. Luria’s call was not based on Nvidia’s coming results.
Nvidia simply offers the next major outside test of the demand assumptions supporting it.
Nvidia matters because its AI accelerators consume huge quantities of high-bandwidth memory, making its order trends an important read-through for Micron.
Nvidia has confirmed it will report fiscal second-quarter results on August 26.
Investors will be watching management’s comments on Blackwell demand, Rubin deployment, data-centre spending and supply constraints.
UBS analyst Timothy Arcuri said HBM4 and HBM4E pricing was “even stronger than our prior expectations,” MarketWatch reported. UBS expects HBM average selling prices to rise roughly 79% year on year.
Arcuri also sees a counterintuitive benefit from Nvidia potentially using less HBM per Rubin Ultra accelerator.
If constrained memory allows Nvidia to build and ship more accelerators, total HBM consumption could still rise.
The risk is that extraordinary memory pricing cannot persist indefinitely.
Citi analyst Atif Malik cut his Micron target to $1,150 from $1,400 on August 7 while keeping a Buy rating.
He expects pricing momentum for both DRAM and NAND to decelerate over the next four quarters, according to TipRanks.
That tension sits at the heart of Micron’s valuation debate and also matters for investors using top platforms for ETF investing, given the stock’s exposure through semiconductor-focused funds.
Micron does not merely need Nvidia and other AI customers to keep spending. It needs that demand to remain strong enough to preserve HBM scarcity, support broader DRAM pricing and sustain unusually high profitability for longer than a traditional memory cycle.
Recent volatility shows how quickly investors can reassess that assumption when bond yields rise or AI enthusiasm weakens.
Volatilnější obchodování s americkými dluhopisy v posledních dnech prodloužilo na Wall Street období nejistoty, jelikož řada rozhodnutí MF zdůraznila obavy ze zvýšených dlouhodobých výnosů. Rozšířený plán zpětného odkupu státních dluhopisů investory zatím nepřesvědčil. Bessent pohyby na trhu nicméně bagatelizoval s tím, že co se stane během 24 hodin je šum. Indexy včera v zámoří nakonec odepsaly kolem -1 %. Dnes ráno futures kontrakty mírně rostou +0,1 %, Evropa bude začínat podobně nevýrazně. Pozornost se nyní přesouvá na hospodářské výsledky společnosti NVDA příští týden a sympozium v Jackson Hole, které se bude konat také příští týden. Ropa Brent se po pětidenních růstech obchoduje na 93,50 USD (-0,4 %). Bitcoin a kryptoměny pokračovaly v růstu a jsou na cestě k nejlepšímu týdennímu zisku za více než 2 roky. Praha se ve čtvrtek obchodovala na červené nule, index PX uzavíral na 2768 bodech. Zlepšený závěr registroval ČEZ (+0,9 %) na 1363 Kč, z bank se naopak tentokrát nedařilo KB (-0,7 %). Dnes bychom čekali opět poklidnější ráz obchodování.
On a split-adjusted basis, NVDA has seen shares rise from roughly $11 in late 2022 up to $216, a gain of roughly 1,700%. The company has reported 14 earnings triple plays in the 20 quarterly reports it has had in the last five years. For NVDA, the stock has historically averaged one-day gains of more than 1% in reaction to its Q1, Q3, and Q4 earnings reports, but it has averaged a decline of 0.47% on its Q2 reports.
One of the most revealing comments from Alibaba Group Holding Ltd.’s (NYSE:BABA) (OTC:BABAF) fiscal first quarter earnings call wasn’t about revenue or artificial intelligence demand.
Instead, it was about the staying power of Nvidia Corp.‘s (NASDAQ:NVDA) older AI chips, with management saying GPUs purchased as far back as 2018 are still operating at full capacity across its AI infrastructure.
Alibaba: Older Nvidia GPUs Are Still Fully UtilizedDiscussing the economics of the company’s AI investments, Chief Financial Officer Toby Xu said Alibaba expects its AI assets to generate “very positive and robust cash flow” after a three-year payback period.
To illustrate the point, Xu cited the company’s existing GPU fleet, saying “an A100 purchased in 2020 or a V100 purchased in 2018 even today are still running at full capacity.”
The comment offers a rare glimpse into the useful life of AI accelerators inside one of the world’s largest cloud providers. While much of the industry’s attention has centered on the rapid rollout of newer chips, Alibaba indicated that older hardware continues to play a meaningful role in serving AI workloads.
AI Boom Fuels ConcernsRapid GPU turnover has fueled fears that today’s cutting-edge accelerators could become obsolete within just a few years.
Alibaba’s experience suggests otherwise. Rather than retiring older GPUs as newer chips arrive, the company says its existing hardware remains fully utilized years after deployment — and, per Xu, continues to generate cash flow well past its roughly three-year payback period.
Alibaba didn’t disclose what share of its AI workload still runs on V100s or A100s. But continued full utilization of both generations suggests demand has been strong enough to absorb legacy and new hardware alike.
What Investors Should Watch NextAlibaba’s remarks may carry implications beyond its own cloud business. If sustained utilization of older accelerators holds up across other large-scale deployments, it would ease concerns that rapid chip advances are quickly eroding the value of existing GPU fleets.
Investors tracking Nvidia and the broader AI infrastructure trade should watch upcoming hyperscaler earnings for similar disclosures. Confirmation from other cloud providers would reinforce the case that AI demand is strong enough to extend hardware’s economic life rather than render it obsolete overnight.
Read Next
Image by Robert Way via Shutterstock
Market News and Data brought to you by Benzinga APIs
Nvidia (NVDA.O) plans to start shipping small volumes of an AI chip designed for Chinese customers by year-end, The Information reported on Thursday, citing two employees.
Several Chinese customers have already ordered the chip, a version of Nvidia's language processing unit, which uses technology licensed from Groq and works alongside Nvidia's graphics processors to speed up AI chatbot responses, the report said.
The chip complies with U.S. export controls, The Information reported, though it remains unclear whether Beijing will approve sales.
Nvidia did not immediately respond to a Reuters request for comment. Reuters could not independently verify the report.
While the chip giant dominates the market for training AI systems, it faces much more competition in the inference market. Several major Chinese firms, including AI heavyweights such as Baidu (9888.HK), already produce their own inference chips.
Reuters reported in March that Nvidia was preparing a China-compatible version of AI chips, as it sought to compete in the fast-growing market for AI inference.
On Aug. 15, 2026, Mark Cuban posted on X: “Chips as an asset class will be the new crypto.” That is the entire public statement. Cuban did not specify which chips, name an investment vehicle, offer a timeline, or follow up in any interview. The post drew over 1.2 million views within a day and was reported by outlets including Crypto News, TradingView, TheStreet, Protos, and AOL between Aug. 16 and Aug. 18, 2026.
It is perhaps fitting that Cuban’s phrasing is ambiguous. The post could be read as either a warning about the trend to treat chips as a financial asset, or as praise of this trend.
How Commentators Read the Post Reporters connected the line to two threads. The first is scarcity: advanced AI accelerators remain in short supply relative to demand from AI developers, hyperscalers, and enterprises, a dynamic commentators compare to early Bitcoin‘s (CRYPTO:BTC) narrative of limited supply meeting growing demand.
The second is financialization: chips are increasingly discussed in terms of rental value, utilization, and financing structures, including GPU leasing, compute-leasing deals, chip-backed financing, and proposed futures contracts tied to GPU rental costs.
Two Key Players In The Trend NVIDIA (NASDAQ:NVDA | NVDA Price Prediction), in results reported May 20, 2026 for the first quarter of fiscal 2027, posted Data Center revenue of $75.25 billion, up 92% year over year, on total revenue of $81.61 billion, up 85.2% year over year. Data Center Networking revenue rose 199% year over year, roughly half of Data Center revenue came from hyperscale customers, and the company guided the following quarter to $91.0 billion, plus or minus 2%. Total supply-related commitments stood at $119.0 billion, per NVIDIA’s 8-K. CEO Jensen Huang said “The buildout of AI factories, the largest infrastructure expansion in human history, is accelerating at extraordinary speed.” Shares are up 16.79% year to date.
CoreWeave (NASDAQ:CRWV) provides the financialization datapoint. On Aug. 10, 2026, the company closed a $2.6 billion delayed-draw term loan led by JPMorgan and MUFG, maturing in 2031. Yahoo Finance described it as a GPU-backed facility, and it was oversubscribed. CoreWeave’s Q2 2026 backlog reached $104 billion.
Technical Pushback Against the Analogy Bitcoin advocate Pierre Rochard challenged the analogy on mechanics. Chip manufacturing has none of the fixed-issuance features that define Bitcoin’s scarcity: no halvings, no difficulty adjustment. Bitcoin’s issuance schedule is written in code and cannot be increased by any party. A halving cuts the pace of new coin creation on a fixed timetable, and difficulty adjustment keeps that pace stable regardless of mining power. Chip supply is a business decision by manufacturers reflecting ordinary capacity constraints that can be expanded.
NVIDIA’s roadmap sharpens the point. The company announced its Rubin platform, with six new chips it says deliver up to a 10x reduction in inference token cost compared with Blackwell. A bitcoin cannot be made obsolete by a better bitcoin. A Blackwell GPU can be made economically obsolete by a Rubin on a manufacturer’s published schedule. The $119.0 billion in supply-related commitments reinforces the same idea: it documents a manufacturer actively building capacity to meet demand, which cuts against pure scarcity framing.
A Complication in the CoreWeave Reading The CoreWeave financing is not a clean template. TheEnergyMag reported the loan closed at a wider spread, meaning lenders demanded more compensation for risk. Adjacent reporting raised broader concerns about debt levels at AI cloud providers. CoreWeave’s Q2 interest expense reached $640 million, and shares are down 15.65% over the past week.
Cuban’s Crypto Past Much of the public reaction focused on Cuban’s record. He sold roughly 98% of a Bitcoin position he once described as worth “hundreds of millions,” citing a sale price around $88,000. He has been linked to promoted crypto projects that later collapsed, including Iron Finance’s TITAN token and Voyager Digital, though those associations are not established to have caused him direct personal losses. He also disclosed an $870,000 phishing loss. Coverage described the replies under his post as a highlight reel of his prior crypto calls.
Where the Analogy Leaves Investors Two readings sit uncomfortably alongside each other. The bullish read invokes crypto’s biggest success story, a scarce asset that matured into a multi-trillion-dollar class with financing and derivatives markets. The evidence supporting that read, NVIDIA’s growth and CoreWeave’s financing activity, is real and does not need the analogy. The cautionary read leans on how “crypto” lands in mainstream usage: volatility, speculative excess, and boom-bust cycles. “The new crypto” can register as a warning about a coming mania as easily as a forecast of durable growth. Cuban’s most visible crypto chapter is one of retreat and losses. He most likely intended the line as praise. The word choice, paired with his history, leaves it more double-edged than a simple bull call.
Contact [email protected] for any questions or corrections.
Billionaire investor David Tepper of Appaloosa Management has made a name for himself as one of the world's top investment minds. The hedge fund manager is worth an estimated $23.7 billion, and he was recently busy selling high-flying memory stocks while adding to positions in several Magnificent Seven names.
This includes Amazon (AMZN -1.00%), Meta Platforms (META -0.42%), Alphabet (GOOGL -0.87%) (GOOGL -0.87%), and Nvidia (NVDA -0.22%). Let's dive into why Tepper likely likes these stocks.
Amazon
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Tepper's largest position is in Amazon, representing over 15% of his portfolio, and he was adding more shares in Q2. It's easy to see why Tepper would like the stock. Amazon is both the market leader in cloud computing and e-commerce, and it's been showing strong growth in both areas.
The company's cloud computing unit, AWS, has been seeing accelerating growth, with revenue climbing 37% year over year in Q2, its fastest growth in four and a half years. With a huge backlog, partnerships with Anthropic and OpenAI, and the company spending aggressively on high-return AI infrastructure projects, the strong growth should continue.
Amazon also has an important custom chip business that is growing quickly, while it also uses the chips to help reduce its own internal inference costs.
On the e-commerce side, the company is seeing great operating leverage come from its internal investments in robotics and AI. It's also developed a large high-margin digital ad business that continues to grow quickly. Between its cloud computing and e-commerce opportunities, Amazon is a top stock to own.
Meta Platforms
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Tepper was also aggressively scooping up shares of Meta Platforms in the quarter. While some investors have been concerned about the company's AI infrastructure spending, it looks like one of the best values among megacap growth stocks. It has a forward P/E of 16 times 2027 analyst estimates, while it just grew its revenue by 28% in the second quarter.
The company has one of the best flywheel business models out there for AI, with AI advancements helping both keep users on its sites longer and advertisers better reach and convert them into customers. Meta has also made strong progress with its newest AI models and is looking to become an important overall AI player. In addition, the company has a long runway of growth from it just starting to introduce ads to its Threads and WhatsApp platforms.
Alphabet
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Alphabet is Tepper's fourth-largest holding, and he was adding to the position in Q2. Alphabet is the most complete AI company, having both its own top-tier chips and AI models.
Its biggest advantage is its tensor processing units (TPUs), which it developed more than a decade ago and which it has built its entire hardware and software stack around. This gives it a cost edge for internal use and a nice margin boost from customers that opt for them with Google Cloud. It is also starting to let some large select customers like Anthropic deploy the chips in their own data centers.
Meanwhile, Alphabet's core search business continues to grow nicely, with AI-powered features, like AI Mode and AI Overviews, helping drive query growth. It also owns one of the largest streaming services in the world, YouTube, and has a big emerging opportunity with its robotaxi business Waymo.
A great set of emerging and leading businesses, Alphabet is a solid core holding.
Image source: Getty Images
Nvidia During Q2, Tepper also added to his Nvidia position, which is another top-10 holding. Nvidia has been the king of AI infrastructure, with its graphics processing units (GPUs) the main chips used to train AI models. Meanwhile, the company also has a nice opportunity in the inference market, where the combination of its GPUs and the language processing units (LPUs) it attained through its "acquisition" of Groq, gives it a unique end-to-end solution.
With the stock cheap, trading at a forward P/E of 17.5 times fiscal 2028 (ending January 2028) analyst estimates, and continuing to grow rapidly, Nvidia looks like a nice buy at current levels.
Jensen Huang's Nvidia ranks among SpaceX's largest shareholders. Philip FONG / AFP via Getty Images Some of SpaceX's biggest shareholders have officially revealed themselves.
Elon Musk's maker of satellites and rockets disclosed its shareholders with at least a 5% stake ahead of its blockbuster IPO in June. But stockholders below that threshold weren't identified.
However, second-quarter portfolio filings have shed light on several previously unknown investors in the $2 trillion company.
Here are 10 of the largest shareholders of SpaceX as of June 30, based on a Business Insider analysis of regulatory disclosures:
Elon Musk
SpaceX CEO Elon Musk. Reuters No surprises here. Elon Musk, the founder and CEO of SpaceX, owns roughly 6.42 billion shares, or about 49% of the company.
Massive stakes in SpaceX and Tesla have made Musk by far the world's wealthiest person. His net worth stood at $860 billion at Wednesday's close, according to the Bloomberg Billionaires Index.
Alphabet
Alphabet CEO Sundar Pichai. Bloomberg/Getty Images Alphabet — the parent company of Google, Waymo, YouTube, and Android — owns around 551 million shares. The roughly 4.2% stake was worth $94 billion at the end of June.
The tech titan bet $900 million on SpaceX back in 2015, meaning it's likely made a huge return on its investment.
Valor Equity Partners
Antonio Gracias is the founder and CEO of Valor Equity Partners. Bloomberg/Getty Images Valor Equity Partners, a private equity and venture capital firm, reported 503.4 million shares for a 3.8% stake in SpaceX. That position was worth $86 billion on June 30.
Valor is run by Antonio Gracias, a trusted Musk ally for the past 25 years.
"Antonio's ownership stems from absolute support, even when it looked like SpaceX would fail, and many investments over 2 decades," Musk posted on X in June. "One could not ask for a better friend."
Peter Thiel
Peter Thiel cofounded PayPal, Palantir, and Founders Fund. Marco Bello/Getty Images Peter Thiel, through his Founders Fund and related entities, holds 427.3 million shares of SpaceX, representing a roughly 3.2% stake. The holding was valued at $73 billion on June 30.
Thiel cofounded PayPal with Musk and has long been one of his staunchest allies and supporters.
Fidelity Investments
Abigail Johnson is the CEO of Fidelity. Barry Chin/The Boston Globe via Getty Images Fidelity Investments reported 302.6 million shares held across its funds, representing about a 2.3% stake in SpaceX. That was valued at around $52 billion at the end of June.
One of the world's largest asset managers and online brokerages, Fidelity's offerings span mutual funds, exchange-traded funds, and retirement accounts like 401(k)s and IRAs.
CEO Abigail Johnson's family founded the privately held financial giant.
Gigafund
Gigafund is a venture capital firm. IPO Gigafund, founded by PayPal cofounder Luke Nosek and Founders Fund veteran Stephen Oskoui, owns 171.8 million shares, a roughly 1.3% stake. That was worth $29.4 billion on June 30.
The Texas-based venture capital firm specializes in multi-decade, concentrated investments in transformative physical-world technology companies. SpaceX is its largest holding.
Public Investment Fund
Saudi Crown Prince Mohammed bin Salman. FAYEZ NURELDINE/AFP via Getty Images Saudi Arabia's Public Investment Fund holds 154.2 million shares of SpaceX, giving it about a 1.2% stake in the Starlink maker. The position was valued at $26.3 billion at the end of June.
Crown Prince Mohammed bin Salman has spearheaded efforts to diversify the Saudi economy away from oil, in part by investing in foreign tech companies.
Baron Capital
Ron Baron is the founder of Baron Capital. NYSE Baron Capital, a New York-based asset manager, owns 145.8 million shares, or around a 1.1% stake in SpaceX. That was worth just under $25 billion at June's close.
Its founder, billionaire investor Ron Baron, has been a vocal supporter of Musk for years and a prominent investor in Tesla and SpaceX.
D1 Capital Partners
Daniel Sundheim is the founder and chief investor of D1. Kevin Dietsch/Getty Images D1 Capital Partners, a global investment firm based in New York, owns 126 million shares or about 1% of SpaceX. Its stake was valued at $21.5 billion at the end of June.
Under Daniel Sundheim, formerly of Viking Global Investors, D1 makes long-term investments across public and private markets.
Nvidia
Jensen Huang is the founder and CEO of Nvidia. Tomohiro Ohsumi/Getty Images Nvidia, the AI chipmaker and the world's most valuable company, owns 122.8 million shares of SpaceX, or about a 0.9% stake. That was worth almost $21 billion on June 30.
CEO Jensen Huang has sung Musk's praises in recent years, hailing his companies as revolutionary.
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Theron Mohamed You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Theron Mohamed is a London-based correspondent on the International team at Business Insider. His coverage spans finance, investing, wealth, markets, and the economy.Theron joined BI in 2019 as a reporter at Markets Insider and rose to the rank of correspondent before moving to the Trending team then the broader International team. He previously covered tech, media, and telecom stocks for Investors Chronicle magazine and had a brief stint on the Financial Times' Data team. He interned at the Wall Street Journal in New York where he primarily wrote for Heard on the Street.Theron has freelanced for The Independent, The Telegraph, WIRED, and several smaller publications. He holds an undergraduate degree in geography from the London School of Economics, and a master's degree in journalism from Columbia University.Theron often covers Warren Buffett, Michael Burry, and other elite investors. He also writes about the world's wealthiest people and shares financial advice from all manner of rich and successful people.Email Theron at [email protected] and follow him on X @theron_mohamed.
Finance SpaceX Elon Musk More Alphabet Saudi Arabia
If you only looked at their stock prices, then you'd easily assume that Advanced Micro Devices (AMD -0.63%) is eating Nvidia's (NVDA -0.22%) lunch in 2026. Nvidia is up a respectable 20% this year, while AMD has skyrocketed about 125%. If you zoom out a little further, AMD is up 300% since 2025 began, while Nvidia has only risen 67%.
Considering that Nvidia is supposed to be the king of AI stocks, AMD sure appears to be quite the challenger to the crown. But there is more to this story than just stock performance.
Image source: The Motley Fool.
Nvidia is doing better as a business Instead of focusing on stock performance, which could have a whole host of reasons why one is outperforming the other, let's take a look at how each company is doing. From a business standpoint, Nvidia seems to be crushing AMD.
AMD and Nvidia don't operate on the same fiscal calendar, so getting direct period comparisons is difficult. AMD operates on a calendar-year system, while Nvidia's quarter ends about one month later. AMD has already released its second-quarter results, while Nvidia's will be announced later this month.
However, with the AI arms race accelerating, the most recent results have been the best for every company involved in this sector, so AMD will likely receive an artificial boost in this analysis. But it still doesn't matter, because Nvidia is doing far better than AMD.
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Starting with companywide results, during Nvidia's fiscal 2027 first quarter (ended April 2026), its revenue rose 85% year over year to $81.6 billion, with diluted earnings per share rising 214%. While not precisely the same time period, AMD's latest results weren't quite as impressive, as revenue rose 50% to $11.5 billion, while diluted earnings per share increased 156% in its second quarter (ended June 30).
Even more important is how each company's data center division is faring, as this is driving the most growth and will likely continue to do so for the foreseeable future. Nvidia's data center growth was up 92% while AMD's increased 107%. From this perspective, AMD is growing faster, but Nvidia will likely meet or exceed this growth when it announces its Q2 results.
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Overall, Nvidia is the much larger and faster-growing company. This typically results in a better stock performance, but that hasn't been the case over the past two years. The reason? AMD's valuation has become a bit ridiculous.
AMD is valued at a high level The market assigns each stock a multiple, and that conveys to investors how cheap or expensive a stock is. For fast-growing companies like these two, using the forward price-to-earnings P/E ratio is a smart idea. Given how strong next year's AI growth is expected to be, let's use 2027 projections. From this vantage point, AMD is far more expensive than Nvidia.
NVDA PE Ratio (Forward) data by YCharts
Because Nvidia and AMD are in the same industry, their long-term P/E ratio should roughly be the same. However, that's far from the case. If AMD hits Wall Street projections, then it will trade at 33 times next fiscal year's earnings, as long as the stock price stays flat from now until then. Nvidia trades for 17.6 times next fiscal year's earnings, revealing a huge gap.
AMD would need to double its earnings again after 2027 is over to reach the same valuation point that Nvidia would be at. This means that there is an extra year's worth of growth baked into AMD's stock price over Nvidia's, showing that Nvidia is the better value here.
Over the next year and a half, I'd expect this trend to reverse as Nvidia maintains its dominance while AMD takes a while to grow into its sky-high price tag. This makes Nvidia the far better stock to own moving forward.
While Tesla, Inc. (NASDAQ:TSLA) and Alphabet Inc‘s (NASDAQ:GOOGL) (NASDAQ:GOOG) Waymo are often cast as rivals in the race toward autonomous technology, NVIDIA Corp (NASDAQ:NVDA) partner Ouster, Inc. (NASDAQ:OUST) sees their growing investments through a different lens.
In an exclusive email interview with Benzinga, Ouster CEO and co-founder Angus Pacala said the two companies are not competitors to Ouster but “pioneers in the adoption of Physical AI,” whose efforts are helping move the broader industry forward.
• What is OUST stock doing today?
Tesla And Waymo Are Expanding the Physical AI OpportunityThe rapid advances made by Tesla and Waymo have fueled investor enthusiasm around autonomous driving and robotics, while also intensifying debate over which companies will ultimately dominate the space.
Pacala, however, says that framing misses the bigger picture.
“We do not see companies like Tesla and Waymo as competitors but pioneers in the adoption of Physical AI,” he told Benzinga. Instead of viewing autonomy as a zero-sum race, he said Ouster focuses on supplying the sensing and perception technology that enables a broad range of autonomous applications.
That strategy also explains the company’s close collaboration with Nvidia. Pacala called Nvidia “an incredible partner,” noting that Ouster’s sensing platform is certified on both Nvidia’s DRIVE autonomous vehicle platform and Jetson robotics platform while remaining technology-agnostic across the broader autonomy ecosystem.
Read Next
Ouster Wants To Be The Platform Behind Physical AIRather than competing with companies building autonomous vehicles or robots, Ouster aims to become the sensing and perception partner behind them.
Pacala said more developers are looking for partners that can provide an integrated platform instead of forcing customers to assemble separate sensing technologies themselves.
“Increasingly we are seeing companies who are building their autonomy roadmaps seeking a partner who can give them the platform and tools to build Physical AI solutions without having to reinvent the entire sensing stack themselves,” he said.
That reflects a broader shift in Ouster’s positioning. The company increasingly describes its offering as a unified sensing and perception platform that combines digital lidar, cameras, AI compute and perception software rather than simply selling lidar hardware.
The Real Race Is Toward Reliable DeploymentPacala says the long-term winners in Physical AI will not necessarily be those with the flashiest demonstrations, but those capable of deploying autonomous systems safely and reliably at scale.
“The opportunity for Ouster… is to make access to sensing and perception much more accessible to the broader ecosystem of Physical AI companies,” he said, adding that the industry “will ultimately be judged by what works in the real world, that it is reliable and safe, and that it can be deployed at scale.”
For investors, that offers a different way to think about the autonomy race. As more companies invest in autonomous vehicles, robotics and intelligent infrastructure, the opportunity may extend beyond the companies building end products to those supplying the technologies that help those systems operate safely and reliably in the real world.
Traders aren’t wrong in feeling as though second-quarter earnings season is over. However, there’s at least one big report left to absorb. Nvidia (NVDA) is slated to deliver its fiscal second-quarter update on Wednesday, August 26.
Earnings reports are often the ideal times for tactical traders to consider leveraged and inverse ETFs, indicating that the Direxion Daily NVDA Bull 2X Shares (NVDU) and the Direxion Daily NVDA Bear 1X Shares (NVDD) could soon have their moments in the sun. The two Direxion ETFs turn three years old next month.
NVDU attempts to deliver 200% of the daily performance of the bellwether semiconductor stock while the bearish NVDD seeks returns corresponding with the daily inverse performance of Nvidia. Given Nvidia’s knack for beating estimates and raising guidance, it’s not a stretch to assume traders will be focusing on the bullish NVDU.
“We’re looking for another beat-and-raise quarter, given the strong capex trends among hyperscalers and enterprises,” noted Morningstar analyst Brian Colello. “Nvidia should generate well over $300 billion of data center revenue in calendar 2026, which is effectively fiscal 2027, and perhaps over $500 billion in fiscal 2028. We expect to hear an update regarding sales (or non-sales) into China.”
Both ETFs Could Be in Focus
Some traders and investors have bullish biases, but that shouldn’t get in the way of acknowledging the bearish NVDD as a post-earnings play on Nvidia. In fact, the case for that inverse ETF may be heightened at a time when more market participants express concern about artificial intelligence (AI) financing plans.
“Perhaps the most polarizing issue has been Nvidia’s financing and backstopping of certain partners, including its recently announced $500 billion mobilization of large financial asset managers to invest in artificial intelligence,” added Colello. “We trust that Nvidia will lay out its case for why it is arranging such partnerships and/or financing certain firms.”
If Nvidia successfully allays those concerns, that could be a catalyst for the stock and the bullish NVDU, potentially providing icing on the cake for what some experts view as an undervalued stock.
“With its 4-star rating, we believe Nvidia stock is moderately undervalued compared with our long-term fair value estimate of $280 per share,” concluded Colello. “Our fair value estimate and Nvidia’s stock price will be driven by its prospects in the data center and AI GPUs, for better or worse. Nvidia’s DC business has achieved exponential growth already, rising from $3 billion in fiscal 2020 to $194 billion in fiscal 2026, and we estimate it will be $361 billion in fiscal 2027, representing 86% annual growth.”
For more news, information, and strategy, visit the Leveraged & Inverse Content Hub.
Nvidia NVDA shares were down 0.3% at $216.74 in early Thursday trading, extending a period of relative underperformance.
The stock has risen 17% this year through Wednesday's close, well behind the 66% gain in the PHLX Semiconductor Index over the same period.
Nvidia's earnings report next Wednesday could help narrow that gap, with several analysts expecting the chipmaker to beat market expectations for the July quarter and raise its outlook for the current quarter.
Stifel analyst Ruben Roy reiterated a $282 price target on Nvidia in a research note this week.
Roy expects Nvidia to beat consensus expectations of adjusted earnings of $2.09 a share on revenue of $91.96 billion.
His price target is based on a price-to-earnings multiple of 22 times his forecast for Nvidia's fiscal 2028 earnings.
Oppenheimer also reiterated an Outperform rating and $265 price target ahead of next week's earnings report.
The firm expects upside to Nvidia's second-quarter results and third-quarter outlook, driven by Blackwell Ultra.
Its next-generation VR200 is expected to ramp during the current quarter, supporting momentum in the second half of the year.
Oppenheimer projects more than $1 trillion in revenue from GB200, GB300 and VR200 between 2025 and 2027.
The firm said Nvidia continues to maintain a performance-per-watt lead through an annual cadence of AI accelerator introductions.
Oppenheimer also highlighted tokens per minute and cost per token as important measures of AI performance, saying Nvidia remains best in class in training and inference token generation and cost.
The firm's bullish view also rests on Nvidia's full-stack AI platform, which includes GPUs, networking switches, NICs, InfiniBand, Ethernet, NVLink and CUDA.
Analysts at Morningstar also said they are looking for another "beat-and-raise" quarter from Nvidia, pointing to strong capital expenditure trends among hyperscalers and enterprises.
Morningstar has a $280 fair value estimate on Nvidia.
Financing concerns remain in focusNvidia's relative underperformance this year has been driven in part by concerns surrounding AI spending, the company's financing arrangements and increasing competition across the semiconductor industry.
Analysts at Cantor pushed back against concerns that Nvidia is effectively buying revenue through its financial arrangements.
The firm reiterated its Buy rating and said Nvidia's latest agreement is a "clear signal that the current AI investment cycle will be elongated and durable."
"We view this less as circular and more facilitating the coming AI buildout while at the same time creating additional competitive moats that will continue to enable NVDA to remain THE AI leader," the analysts wrote.
Nvidia's substantial cash generation has also allowed it to invest across the AI ecosystem while returning capital to shareholders.
The company said in May that it was increasing its quarterly dividend to 25 cents a share from a penny and announced a new $80 billion stock buyback plan.
Nvidia also pledged "to return roughly 50% of free cash flow to shareholders this year."
Next week's earnings report will provide a key test of Nvidia's ability to convert continued AI infrastructure investment into revenue growth while addressing investor concerns over financing, competition and the sustainability of spending across the sector.
Chase Coleman III of Tiger Global Management is one of the world's premier tech investors. In fact, his fund has spawned many other top investors who now run their own funds. During Q2, Coleman was busy, including reducing his stake in Nvidia (NVDA -0.20%), while adding a new position in Cerebras Systems (CBRS -4.13%) and increasing his holdings in Intel (INTC -1.93%).
Let's take a closer look at these semiconductor stocks and see if investors should be buyers or sellers.
Image source: Getty Images
While Coleman reduced his stake in Nvidia by about 7%, it remains his third-largest holding. There are many reasons to like the stock here, in my view. First, the company is the dominant chipmaker for AI model training with its graphics processing units (GPUs), and that is unlikely to change anytime soon. Its CUDA software platform, where most foundational AI code has been written, just remains a powerful moat.
Today's Change
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Meanwhile, the company has become much more than just a GPU maker. Backed by a strong networking portfolio and other chips, Nvidia is now a complete AI infrastructure player that can provide end-to-end rack-scale solutions for various AI tasks. Its "acquisition" of Groq and its language processing units (LPUs) give it a strong position in the fast-growing inference market, while its custom central processing units (CPUs) set it up well for agentic AI.
Nvidia continues to see explosive growth and has big opportunities still ahead of it, yet the stock trades at a forward P/E of just 17 times fiscal 2028 (ending January 2028) analyst estimates. That makes this a great stock to buy at these levels in my view.
Cerebras Coleman's biggest buy in the quarter was Cerebras, as he made the chip company his 12th-largest holding. Cerebras is one of the most intriguing chip stocks in the market.
Similar to Nvidia's LPUs, Cerebras embeds SRAM (static random-access memory) directly onto its chips, which greatly increases inference speeds. However, SRAM is bulky, and instead of using a small amount like LPUs, it has created massive wafer-sized chips that need special cooling and power management. The result is speeds up to six times faster than LPUs. However, this comes at a cost, and it is generally viewed as a premium solution.
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Cerebras has started to become a player at the high-end of the market, and its system is helping power the new ultrafast mode for OpenAI's GPT-5.6 Sol model. The company has a large commitment in place with the AI model maker that should provide strong growth in the years to come. It also has a deal with Amazon Web Services.
Meanwhile, the company's partnership with Advanced Micro Devices also looks promising to help push the company's solution more into the mainstream with a more cost-effective option. Through the partnership, AMD will provide its Helios system to handle the pre-fill phase of inference, while Cerebras' solution will power the decode phase. The result will be a cheaper, low-latency inference solution that benefits both chipmakers and lets them better compete with Nvidia in this huge and fast-growing market.
Cerebras is a more speculative stock, but the ingredients are in place for it to be a big winner.
Intel Last quarter, Coleman significantly increased his stake in Intel, making it his 15th-largest holding. The company has been a late AI winner, with the rise of agentic AI leading to a surge in demand for data center CPUs. The company remains the CPU market share leader, so it has seen a nice jump in revenue and an improvement in gross margins.
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While Coleman finds the stock attractive, it is not a favorite of mine. The company has been losing share in the server CPU market to AMD, while Arm Holdings has entered the market to add more competition. Meanwhile, it still appears to be trailing in technology and is benefiting more from the high tide raising all ships. On top of that, higher component costs will likely negatively impact sales in its core PC segment, while its foundry business continues to see heavy losses.
The stock is up big over the past year and no longer cheap, and as such, I'd stay on the sidelines.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
The leader in AI chips, Nvidia Corp. (NVDA, Financials), has begun to see H200 processors enter China once more, but Wedbush argues the financial advantage migh
Today’s economic calendar brings us the remaining important data releases of the week as markets move toward Friday’s monthly options expiration. Weekly Initial and Continuing Jobless Claims arrived and will receive the most attention, providing another update on labor market conditions. The July Leading Index follows at 10:00AM ET, with Natural Gas Inventories at 10:30AM ET. Treasury activity fills out the remainder of the session, culminating with the 30 Year TIPS Auction at 1:00PM ET. With relatively little important economic data scheduled for Friday, today’s releases represent the final meaningful macro checkpoints before the week closes.
MOPEX remains an important backdrop, particularly with expiration now only one session away. As monthly options approach expiration, accelerated time decay, position closures and rolls, and changes in dealer hedging requirements can influence price behavior around heavily positioned strikes. With the macro calendar becoming increasingly quiet after today, positioning and options related flows could take on greater importance into Friday. Watch whether the indices remain pinned and rotational around major levels or begin gaining acceptance outside those areas as expiration approaches.
Now, we will discuss SPY, QQQ, AAPL, MSFT, NVDA, GOOGL, META, and TSLA.
SPDR S&P 500 ETF Trust (SPY)
SPY is currently trading around 767.75 as markets move deeper into MOPEX week with the final meaningful economic data of the week arriving today. Weekly Jobless Claims at 8:30AM ET will provide another read on labor market conditions, while the July Leading Index follows at 10:00AM ET. If buyers defend 767.75, a move toward 773.75 may develop, followed by 779.75 if momentum builds. Sustained strength above 785.75 would improve the short term structure and put buyers back in control.
If SPY loses 767.75 with conviction, sellers may press into 761.75. A breakdown there could expose 755.75, while continued weakness may bring the 749.75 region into focus. With Friday offering little in the way of major economic data, today’s releases and the market’s positioning into tomorrow’s monthly options expiration could have greater influence on how the week ultimately closes.
Invesco QQQ Trust Series 1 (QQQ)
QQQ is currently trading around 714.25 and continues to show weakness relative to recent highs as technology remains sensitive to both Treasury yields and shifting risk appetite. If buyers defend this pivot, price may advance toward 721.25, followed by 728.25 if momentum strengthens. Sustained strength above 735.25 would indicate improving institutional demand across technology.
If 714.25 fails to hold, sellers may drive price toward 707.75. A deeper breakdown could expose 701.25, while continued weakness may bring the 694.75 region into play. With MOPEX tomorrow, watch whether QQQ remains contained around heavily positioned areas or begins expanding away from them as expiration related flows intensify.
Apple Inc. (AAPL)
AAPL is currently trading around 316.75 and continues to demonstrate notable relative strength compared with several other mega cap technology names. If buyers defend this pivot, price may rotate toward 322.00, followed by 327.25 if momentum builds. Sustained strength above 332.50 would reinforce the bullish short term structure.
If 316.75 breaks lower, sellers may test 311.75 quickly. Continued downside pressure could extend into 306.75, while deeper weakness may bring the psychological 300 area into focus. Continued strength in AAPL while QQQ remains under pressure would be an important sign of relative institutional demand.
Microsoft Corp. (MSFT)
MSFT is currently trading around 484.25 and remains below the psychologically important 500 level after its recent pullback. If buyers defend this area, price may recover toward 491.25, followed by 498.25 if momentum builds. Sustained strength above 505.25 would reclaim 500 and materially improve the short term structure.
If 484.25 fails to hold, sellers may press into 477.25. A deeper pullback could test 470.25, while continued weakness may bring the 463.25 region into play. Until MSFT begins establishing acceptance back above 500, rallies into that region should be monitored for renewed selling pressure.
NVIDIA Corporation (NVDA)
NVDA is currently trading around 218.25 and remains an important leadership gauge for semiconductors and the broader technology complex. If buyers defend this pivot, a move toward 225.50 may develop, followed by 232.75 if momentum strengthens. Sustained trade above 240.00 would indicate renewed upside expansion and improving semiconductor leadership.
If 218.25 fails to hold, sellers may test 212.25 quickly. Continued downside could extend into 206.25, while deeper weakness may bring the 200.25 region into focus. NVDA’s ability to stabilize will be particularly important for determining whether recent QQQ weakness remains orderly or begins broadening across technology.
Alphabet Inc Class A (GOOGL)
GOOGL is currently trading around 343.75 and continues attempting to establish a durable base following its recent weakness. If buyers defend this level, price may rotate toward 350.25, followed by 356.75 if momentum improves. Sustained strength above 363.25 would indicate a more meaningful recovery attempt.
If 343.75 fails to hold, sellers may guide price toward 337.75. A breakdown there could expose 331.75, while continued weakness may bring the 325.75 region into play. Relative performance against QQQ remains important, particularly if broader technology begins recovering while GOOGL struggles to participate.
Meta Platforms Inc (META)
META is currently trading around 548.25 after experiencing significant selling pressure from the 600 area. If buyers defend this pivot, a recovery toward 555.75 may develop, followed by 563.25 if momentum builds. Sustained strength above 570.75 would begin repairing the short term structure and suggest buyers are establishing a more durable base.
If 548.25 breaks lower, sellers may guide price toward 541.25. A deeper pullback could test 534.25, while continued weakness may bring the 527.25 region into focus. With META still displaying relative weakness, traders should look for sustained acceptance at higher prices rather than assuming the first bounce represents a larger reversal.
Tesla Inc. (TSLA)
TSLA is currently trading around 348.50 and showing improving momentum after extending its recent recovery. If buyers defend this pivot, a move toward 357.00 may develop, followed by 365.50 if momentum continues. Sustained strength above 374.00 would indicate stronger speculative participation and further improve the short term structure.
If 348.50 fails to hold, sellers may test 340.50 quickly. Continued downside pressure could extend into 332.50, while deeper weakness may bring the 324.50 region into play. TSLA’s relative strength against several other large cap technology names is worth monitoring, particularly if broader risk appetite improves.
Final Word: Good luck and trade safely!
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
SummaryNvidia Corporation remains a Strong Buy, as I anticipate robust forward guidance and continued execution on the Rubin ramp.Key metrics to watch are next quarter’s revenue guidance, $1T visibility extension, gross margin resilience amid HBM4 costs, and financing platform disclosures.NVDA stock trades at a forward P/E of 23.1 and outperforms peers in growth, profitability, and return metrics, supporting its premium valuation.Competitive risks from AMD and in-house silicon, plus hyperscaler CapEx digestion, warrant monitoring but do not outweigh NVDA’s dominant positioning. Robert Way/iStock Editorial via Getty Images
Introduction I last covered Nvidia Corporation (NVDA) back in early July, following a drawdown, as I argued that it was an opportunity to pounce. It has since gained over 10%, while the
3.75K Followers
Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Allied Private Wealth LLC acquired a new stake in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 22,476 shares of the computer hardware maker’s stock, valued at approximately $4,588,000. NVIDIA comprises approximately 2.9% of Allied Private Wealth LLC’s holdings, making the stock its 6th biggest holding.
Several other hedge funds have also recently made changes to their positions in the company. Lifetime Wealth Management P.C. acquired a new position in shares of NVIDIA in the fourth quarter valued at about $26,000. Longview Financial Advisors Inc. acquired a new stake in shares of NVIDIA during the first quarter worth about $27,000. Longfellow Investment Management Co. LLC lifted its holdings in shares of NVIDIA by 47.9% during the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock worth $33,000 after purchasing an additional 67 shares during the period. Phillip James Consulting Co. purchased a new stake in NVIDIA in the first quarter valued at approximately $40,000. Finally, Spurstone Advisory Services LLC purchased a new stake in NVIDIA in the second quarter valued at approximately $40,000. 65.27% of the stock is owned by institutional investors and hedge funds.
Wall Street Analyst Weigh In
A number of equities analysts have issued reports on the stock. Jefferies Financial Group reissued a “buy” rating and set a $300.00 price target (up from $275.00) on shares of NVIDIA in a research report on Thursday, May 21st. Bank of America reaffirmed a “buy” rating and issued a $350.00 price objective (up from $320.00) on shares of NVIDIA in a report on Thursday, May 21st. Craig Hallum increased their price objective on shares of NVIDIA from $245.00 to $275.00 and gave the stock a “buy” rating in a research note on Thursday, May 21st. Tigress Financial reissued a “strong-buy” rating and set a $425.00 target price (up from $360.00) on shares of NVIDIA in a report on Wednesday, May 27th. Finally, Itau BBA Securities decreased their target price on shares of NVIDIA from $256.00 to $218.00 in a research report on Wednesday, June 24th. Three equities research analysts have rated the stock with a Strong Buy rating, forty-nine have given a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Buy” and a consensus price target of $305.94.
View Our Latest Research Report on NVDA
Insider Buying and Selling at NVIDIA
In other NVIDIA news, Director Mark A. Stevens sold 885,000 shares of NVIDIA stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $210.17, for a total value of $186,000,450.00. Following the completion of the transaction, the director owned 5,207,271 shares of the company’s stock, valued at approximately $1,094,412,146.07. The trade was a 14.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Stephen C. Neal sold 15,500 shares of the company’s stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the completion of the transaction, the director owned 116,135 shares of the company’s stock, valued at approximately $25,053,803.55. This trade represents a 11.77% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 1,901,125 shares of company stock valued at $410,583,015. Corporate insiders own 3.94% of the company’s stock.
Key Headlines Impacting NVIDIA
Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: Potential China revenue boost: Reports indicate small shipments of NVIDIA’s H200 processors have reached mainland China, with ByteDance and Tencent reportedly receiving units. However, Beijing may restrict how the chips are used. Nvidia H200 chips reach China in small shipments
Positive Sentiment: Analyst support remains strong: Stifel reaffirmed a Buy rating and a $282 target ahead of NVIDIA’s August 26 earnings report, while Bank of America reportedly sees substantial upside based on the company’s valuation and free-cash-flow potential. Analyst updates Nvidia stock price ahead of earnings
Positive Sentiment: Supply-chain checks support the AI buildout: Stifel pointed to signals from Foxconn and Super Micro as evidence that demand for NVIDIA systems remains healthy heading into the company’s results. NVIDIA is also expanding its role by connecting Nordic GPU customers with available data-center capacity. What Foxconn and Super Micro are telling us about the AI boom
Neutral Sentiment: Mercor investment under consideration: NVIDIA is reportedly discussing an investment in AI data-labeling provider Mercor at a valuation of about $20 billion. The deal could strengthen NVIDIA’s broader AI ecosystem, but its size and terms remain unknown. Nvidia weighs investment in Mercor
Negative Sentiment: China uncertainty remains a key overhang: U.S. efforts to close loopholes allowing Chinese firms to access NVIDIA computing power through overseas data centers could limit sales, while any H200 shipments appear restricted and relatively small. U.S. export controls and Nvidia chips
Negative Sentiment: The earnings bar is high: Investors are looking beyond a routine quarterly beat and want higher forward guidance, sustained data-center growth, strong Blackwell demand, and healthy margins. This creates volatility ahead of the August 26 report. NVIDIA earnings expectations and AI demand
Negative Sentiment: Competition and concentration risks are intensifying: Investors are questioning whether custom chips, rivals such as AMD and Broadcom, and newer AI-chip startups could eventually pressure NVIDIA’s dominant position. Michael Burry discusses competition for Nvidia
NVIDIA Price Performance
Shares of NASDAQ NVDA opened at $217.56 on Thursday. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85. The stock has a market capitalization of $5.26 trillion, a price-to-earnings ratio of 33.32, a PEG ratio of 0.44 and a beta of 2.23. The firm’s 50 day simple moving average is $207.04 and its 200-day simple moving average is $199.23. NVIDIA Corporation has a 12 month low of $164.07 and a 12 month high of $236.54.
NVIDIA (NASDAQ:NVDA – Get Free Report) last announced its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.76 by $0.11. The firm had revenue of $81.61 billion for the quarter, compared to the consensus estimate of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The firm’s quarterly revenue was up 85.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.81 earnings per share. Analysts expect that NVIDIA Corporation will post 8.59 EPS for the current year.
NVIDIA announced that its Board of Directors has approved a stock repurchase plan on Wednesday, May 20th that allows the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization allows the computer hardware maker to repurchase up to 1.5% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s management believes its shares are undervalued.
NVIDIA Company Profile
(Free Report)
NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.
The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.
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Want to see what other hedge funds are holding NVDA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVIDIA Corporation (NASDAQ:NVDA – Free Report).
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Focus Financial Network Inc. trimmed its position in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 1.4% during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 1,598,701 shares of the computer hardware maker’s stock after selling 23,393 shares during the period. NVIDIA comprises about 9.9% of Focus Financial Network Inc.’s portfolio, making the stock its largest holding. Focus Financial Network Inc.’s holdings in NVIDIA were worth $319,884,000 at the end of the most recent reporting period.
Other large investors have also modified their holdings of the company. Lifetime Wealth Management P.C. purchased a new position in NVIDIA during the fourth quarter worth about $26,000. Longview Financial Advisors Inc. acquired a new stake in shares of NVIDIA in the first quarter valued at $27,000. Longfellow Investment Management Co. LLC raised its stake in shares of NVIDIA by 47.9% in the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock valued at $33,000 after acquiring an additional 67 shares in the last quarter. Phillip James Consulting Co. purchased a new stake in shares of NVIDIA in the 1st quarter valued at approximately $40,000. Finally, Inspire Investing LLC purchased a new stake in shares of NVIDIA in the 4th quarter valued at approximately $44,000. Hedge funds and other institutional investors own 65.27% of the company’s stock.
NVIDIA Stock Performance NASDAQ:NVDA opened at $217.56 on Thursday. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85. The firm has a market cap of $5.26 trillion, a price-to-earnings ratio of 33.32, a price-to-earnings-growth ratio of 0.44 and a beta of 2.23. The firm’s fifty day moving average price is $207.04 and its 200 day moving average price is $199.23. NVIDIA Corporation has a 1-year low of $164.07 and a 1-year high of $236.54.
NVIDIA (NASDAQ:NVDA – Get Free Report) last released its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, topping the consensus estimate of $1.76 by $0.11. The company had revenue of $81.61 billion during the quarter, compared to analysts’ expectations of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The business’s revenue was up 85.2% on a year-over-year basis. During the same quarter last year, the business earned $0.81 EPS. On average, sell-side analysts expect that NVIDIA Corporation will post 8.59 EPS for the current year. NVIDIA declared that its Board of Directors has authorized a share buyback program on Wednesday, May 20th that allows the company to buyback $80.00 billion in shares. This buyback authorization allows the computer hardware maker to purchase up to 1.5% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s board of directors believes its stock is undervalued.
Insider Buying and Selling In other news, Director John Dabiri sold 625 shares of the stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $214.00, for a total transaction of $133,750.00. Following the completion of the transaction, the director directly owned 14,163 shares of the company’s stock, valued at approximately $3,030,882. This represents a 4.23% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 885,000 shares of the firm’s stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $210.17, for a total value of $186,000,450.00. Following the completion of the sale, the director directly owned 5,207,271 shares of the company’s stock, valued at $1,094,412,146.07. This represents a 14.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 1,901,125 shares of company stock valued at $410,583,015 over the last ninety days. Corporate insiders own 3.94% of the company’s stock.
Key NVIDIA News Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: Potential China revenue boost: Reports indicate small shipments of NVIDIA’s H200 processors have reached mainland China, with ByteDance and Tencent reportedly receiving units. However, Beijing may restrict how the chips are used. Nvidia H200 chips reach China in small shipments Positive Sentiment: Analyst support remains strong: Stifel reaffirmed a Buy rating and a $282 target ahead of NVIDIA’s August 26 earnings report, while Bank of America reportedly sees substantial upside based on the company’s valuation and free-cash-flow potential. Analyst updates Nvidia stock price ahead of earnings Positive Sentiment: Supply-chain checks support the AI buildout: Stifel pointed to signals from Foxconn and Super Micro as evidence that demand for NVIDIA systems remains healthy heading into the company’s results. NVIDIA is also expanding its role by connecting Nordic GPU customers with available data-center capacity. What Foxconn and Super Micro are telling us about the AI boom Neutral Sentiment: Mercor investment under consideration: NVIDIA is reportedly discussing an investment in AI data-labeling provider Mercor at a valuation of about $20 billion. The deal could strengthen NVIDIA’s broader AI ecosystem, but its size and terms remain unknown. Nvidia weighs investment in Mercor Negative Sentiment: China uncertainty remains a key overhang: U.S. efforts to close loopholes allowing Chinese firms to access NVIDIA computing power through overseas data centers could limit sales, while any H200 shipments appear restricted and relatively small. U.S. export controls and Nvidia chips Negative Sentiment: The earnings bar is high: Investors are looking beyond a routine quarterly beat and want higher forward guidance, sustained data-center growth, strong Blackwell demand, and healthy margins. This creates volatility ahead of the August 26 report. NVIDIA earnings expectations and AI demand Negative Sentiment: Competition and concentration risks are intensifying: Investors are questioning whether custom chips, rivals such as AMD and Broadcom, and newer AI-chip startups could eventually pressure NVIDIA’s dominant position. Michael Burry discusses competition for Nvidia Wall Street Analysts Forecast Growth NVDA has been the subject of a number of recent analyst reports. TD Cowen reaffirmed a “buy” rating on shares of NVIDIA in a report on Tuesday. Stifel Nicolaus set a $282.00 target price on NVIDIA and gave the stock a “buy” rating in a research report on Thursday, May 21st. Craig Hallum boosted their target price on NVIDIA from $245.00 to $275.00 and gave the stock a “buy” rating in a research note on Thursday, May 21st. Rosenblatt Securities reaffirmed a “buy” rating and issued a $325.00 price target on shares of NVIDIA in a report on Thursday, May 21st. Finally, Weiss Ratings reiterated a “buy (b)” rating on shares of NVIDIA in a research note on Wednesday, July 8th. Three analysts have rated the stock with a Strong Buy rating, forty-nine have assigned a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Buy” and a consensus price target of $305.94.
Check Out Our Latest Research Report on NVIDIA
NVIDIA Company Profile (Free Report)
NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.
The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.
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AFG Fiduciary Services Limited Partnership lessened its position in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 99.5% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 3,564 shares of the computer hardware maker’s stock after selling 727,500 shares during the quarter. AFG Fiduciary Services Limited Partnership’s holdings in NVIDIA were worth $694,000 at the end of the most recent quarter.
A number of other institutional investors have also made changes to their positions in NVDA. Lifetime Wealth Management P.C. acquired a new position in NVIDIA during the 4th quarter valued at $26,000. Longview Financial Advisors Inc. acquired a new stake in NVIDIA in the 1st quarter worth $27,000. Longfellow Investment Management Co. LLC increased its holdings in shares of NVIDIA by 47.9% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock worth $33,000 after purchasing an additional 67 shares during the period. Phillip James Consulting Co. bought a new position in shares of NVIDIA during the 1st quarter worth about $40,000. Finally, Inspire Investing LLC acquired a new position in shares of NVIDIA during the fourth quarter valued at about $44,000. 65.27% of the stock is currently owned by institutional investors.
Key Stories Impacting NVIDIA Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: Potential China revenue boost: Reports indicate small shipments of NVIDIA’s H200 processors have reached mainland China, with ByteDance and Tencent reportedly receiving units. However, Beijing may restrict how the chips are used. Nvidia H200 chips reach China in small shipments Positive Sentiment: Analyst support remains strong: Stifel reaffirmed a Buy rating and a $282 target ahead of NVIDIA’s August 26 earnings report, while Bank of America reportedly sees substantial upside based on the company’s valuation and free-cash-flow potential. Analyst updates Nvidia stock price ahead of earnings Positive Sentiment: Supply-chain checks support the AI buildout: Stifel pointed to signals from Foxconn and Super Micro as evidence that demand for NVIDIA systems remains healthy heading into the company’s results. NVIDIA is also expanding its role by connecting Nordic GPU customers with available data-center capacity. What Foxconn and Super Micro are telling us about the AI boom Neutral Sentiment: Mercor investment under consideration: NVIDIA is reportedly discussing an investment in AI data-labeling provider Mercor at a valuation of about $20 billion. The deal could strengthen NVIDIA’s broader AI ecosystem, but its size and terms remain unknown. Nvidia weighs investment in Mercor Negative Sentiment: China uncertainty remains a key overhang: U.S. efforts to close loopholes allowing Chinese firms to access NVIDIA computing power through overseas data centers could limit sales, while any H200 shipments appear restricted and relatively small. U.S. export controls and Nvidia chips Negative Sentiment: The earnings bar is high: Investors are looking beyond a routine quarterly beat and want higher forward guidance, sustained data-center growth, strong Blackwell demand, and healthy margins. This creates volatility ahead of the August 26 report. NVIDIA earnings expectations and AI demand Negative Sentiment: Competition and concentration risks are intensifying: Investors are questioning whether custom chips, rivals such as AMD and Broadcom, and newer AI-chip startups could eventually pressure NVIDIA’s dominant position. Michael Burry discusses competition for Nvidia NVIDIA Price Performance NVDA opened at $217.56 on Thursday. The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04. The stock has a market cap of $5.26 trillion, a P/E ratio of 33.32, a P/E/G ratio of 0.44 and a beta of 2.23. The company has a fifty day simple moving average of $207.04 and a 200 day simple moving average of $199.23. NVIDIA Corporation has a 12 month low of $164.07 and a 12 month high of $236.54. NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, beating the consensus estimate of $1.76 by $0.11. The business had revenue of $81.61 billion for the quarter, compared to analysts’ expectations of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The firm’s revenue was up 85.2% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.81 EPS. On average, research analysts expect that NVIDIA Corporation will post 8.59 EPS for the current year.
NVIDIA announced that its Board of Directors has initiated a stock repurchase plan on Wednesday, May 20th that allows the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization allows the computer hardware maker to repurchase up to 1.5% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s management believes its shares are undervalued.
Insider Buying and Selling at NVIDIA In other news, Director Mark A. Stevens sold 885,000 shares of the firm’s stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the completion of the transaction, the director directly owned 5,207,271 shares of the company’s stock, valued at $1,094,412,146.07. This trade represents a 14.53% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director John Dabiri sold 625 shares of NVIDIA stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total transaction of $133,750.00. Following the completion of the sale, the director owned 14,163 shares in the company, valued at $3,030,882. This trade represents a 4.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,901,125 shares of company stock valued at $410,583,015 in the last 90 days. 3.94% of the stock is currently owned by company insiders.
Wall Street Analysts Forecast Growth A number of research analysts recently commented on the company. DZ Bank restated a “buy” rating on shares of NVIDIA in a research note on Thursday, May 21st. William Blair reaffirmed an “outperform” rating on shares of NVIDIA in a report on Tuesday, June 2nd. TD Cowen restated a “buy” rating on shares of NVIDIA in a research note on Tuesday. China Renaissance began coverage on shares of NVIDIA in a report on Friday, June 5th. They issued a “buy” rating and a $319.00 target price on the stock. Finally, New Street Research dropped their target price on shares of NVIDIA from $343.00 to $340.00 in a research report on Thursday, May 21st. Three equities research analysts have rated the stock with a Strong Buy rating, forty-nine have given a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, NVIDIA currently has a consensus rating of “Buy” and a consensus price target of $305.94.
Read Our Latest Analysis on NVDA
NVIDIA Company Profile (Free Report)
NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.
The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.
See Also Five stocks we like better than NVIDIA Bloom Energy’s AI Surge Meets a Valuation Reality Check Target Is Winning Shoppers Back—Can the Rally Reach $180? IonQ’s Space Contract Points to a New Frontier for Quantum Investors Is Apple’s AI Strategy Smarter Than Skeptics Think? Want to see what other hedge funds are holding NVDA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVIDIA Corporation (NASDAQ:NVDA – Free Report).
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For the better part of the last four years, the artificial intelligence (AI) revolution has ruled the roost on Wall Street. Empowering software and systems with the tools to make split-second, autonomous decisions is an estimated $15.7 trillion addressable opportunity by 2030, according to PwC.
Nvidia (NVDA -0.99%) has led the way. Its graphics processing units (GPUs) are the brains of AI-accelerated data centers, and no company is particularly close to matching the compute capabilities of its hardware.
But what you may not realize is that Wall Street's largest publicly traded company is also an investor.
Image source: Getty Images.
Just like institutional investors, companies with at least $100 million in assets under management are required to file Form 13F with regulators no later than 45 calendar days after the end of a quarter. Nvidia's latest 13F, detailing second-quarter investment activity for its $63.4 billion portfolio, revealed a new No. 2 holding: Elon Musk's Space Exploration Technologies (SpaceX) (SPCX -2.57%).
SpaceX is now Nvidia's second-largest public investment According to a person familiar with the matter, per CNBC, Nvidia invested roughly $10 billion in xAI in January 2026, as part of a $20 billion funding round for the AI start-up. SpaceX acquired xAI shortly thereafter.
When SpaceX went public on June 12 in Wall Street's largest-ever initial public offering (IPO), it meant that Nvidia would now need to report its stake in the company on its quarterly 13F. This position, 122,764,805 shares of SpaceX, was worth nearly $21 billion at the end of June. Only Nvidia's stake in chipmaker Intel is worth more.
-- TrendSpider (@TrendSpider) August 14, 2026 Although the initial buzz from SpaceX's IPO was unlike anything we'd ever seen, reality is starting to bite for Nvidia's new No. 2 holding.
Despite a 92% increase in second-quarter sales, SpaceX reported a hefty loss and eye-popping capital expenditures (capex) for its data center segment. Through the first six months of 2026, AI capex has vaulted from $3.32 billion last year to $23.55 billion this year. Musk's company is burning cash at an alarming rate and is expected to lean on potentially dilutive financing rounds to make up for it.
Furthermore, SpaceX has one of Wall Street's more unique lockup periods, and it's not exactly shareholder-friendly. Whereas most newly public companies prevent insiders (high-ranking executives, board members, and early investors) from selling their stock for 180 calendar days after the IPO, SpaceX's unlock schedule is accelerated and staggered. Several event- and time-based unlocks occur that can dramatically increase the float and weigh on SpaceX's shares.
Great look at the SpaceX shares unlock schedule as well as the potential passive buying schedule from @JSeyff @FrancisSharoon Depending on the early post-IPO returns, this could really play with and disperse the returns of "passive" funds (which is why there's arguably no such... pic.twitter.com/KOuEkJlngF
-- Eric Balchunas (@EricBalchunas) May 28, 2026 The argument can also be made that SpaceX has an Elon Musk problem. Aside from splitting his duties between two trillion-dollar companies -- he's also the CEO of electric-vehicle maker Tesla -- Musk doesn't have the best track record of delivering on innovations. Several of his claims at Tesla, such as Level 5 full self-driving being available "next year" or 1 million robotaxis being on public roads by the end of 2020, haven't come to fruition.
While Nvidia has thus far cleaned up with its initial xAI investment, the outlook for SpaceX stock is murky at best.
Sean Williams has positions in Intel. The Motley Fool has positions in and recommends Intel, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
Nvidia guided to fiscal second-quarter revenue of $91.0 billion, plus or minus 2%, implying a top end near $92.8 billion. Analysts' average estimate sits near $91.9 billion, just above the midpoint of the company's own range.
Nvidia has discussed participating in a funding round that would value Mercor, a data labeling provider that supplies data that helps the chip designer develop open-source models, at $20 billion, The Information reported Wednesday (Aug. 19), citing unnamed sources. The size of Nvidia's potential investment and the total funding round could not be learned, according to the report.
Nvidia (NVDA -0.99%) has been making some interesting investments lately, a few of which should be concerning for investors, if not outright red flags.
The AI chip giant just announced it was making a $105 billion investment to support the development of an enormous data center in Ohio that will be leased by OpenAI, the company behind ChatGPT.
OpenAI is a major customer of Nvidia, so the deal will presumably help it continue to purchase Nvidia's expensive graphics processing units and systems.
Image source: Getty Images.
Previously, Nvidia invested billions of dollars in Anthropic, which owns the Claude chatbot, and in the cloud-computing firm CoreWeave. It has also partnered with investment firms Apollo and Blackstone to arrange hundreds of billions in financing for new data centers.
Some observers say Nvidia is engaging in what's known as circular financing. That is, it is investing in AI firms and data centers so that those companies will build more AI infrastructure that requires Nvidia's powerful chips. So, in a way, Nvidia is providing financing for other companies to buy its products, and its own revenue is boosted by capital it has deployed.
Circular financing deals took a toll on hardware firms during the dot-com crash The practice is reminiscent of what occurred during the dot-com boom of the late 1990s, when Cisco Systems, which made the networking hardware that was the backbone for much of the internet, arranged similar deals for its customers. That inflated the company's revenue. Other internet firms made similar deals.
When the internet bubble burst, Cisco's share price fell precipitously from a 2000 peak of around $77 to around just $12 in late 2001. Cisco shares didn't recover fully from that loss until 2025.
Of course, the internet infrastructure built during the dot-com bubble proved highly productive for the U.S. economy, and it's likely that the data centers financed by Nvidia will too. But that will be of little consolation to Nvidia's shareholders should the market decide that the company's revenue and profits are not organic, but self-financed.
Also, if Nvidia invests in customers that later fail or can no longer pay for its products, it will lose both those revenue streams and its investments, which would damage its finances.
All that said, Nvidia is an enormously successful company by almost every metric. In its fiscal 2027 first quarter, which ended April 26, its revenue climbed 85% year over year. It more than doubled its annual revenue in fiscal 2025 and fiscal 2024, and grew its top line by 65% in fiscal 2026. Earnings per share soared 215% last quarter and 147% last year.
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The company's chips are so powerful that the U.S. government restricts their sales to companies in certain nations.
So Nvidia looks strong at the moment, but the vendor financing it's increasingly engaging in is something for investors to watch closely.
Nvidia stock is approaching its all-time high, but Bank of America argues the AI chip giant could still be significantly undervalued ahead of its August 26 earnings report. Yahoo Finance's Brian Sozzi, Jared Blikre, and EMJ Capital founder and president Eric Jackson break down the bullish valuation case for Nvidia, why the company's enormous free cash flow matters, and what investors should watch when Nvidia reports earnings.
