In the second quarter of 2026, SpaceX's (SPCX -2.57%) revenue surged 92% year over year to $7.8 billion, and it narrowed its net loss from $1.01 billion to $541 million. However, its total capex surged more than sixfold year over year, from $2.83 billion to $18.37 billion. It allocated $15.8 billion of that capex to expanding its AI business. Let's see where all that money went.
Image source: Getty Images.
What AI investments did SpaceX make? SpaceX originally operated two main businesses: its Starlink satellite internet services and its rocket launch services. But in Feb. 2026, it acquired xAI -- which owns Grok, X, and its other AI assets -- in an all-stock transaction to form its new AI business. It also acquired the AI start-up Cursor earlier this month. Elon Musk believes its AI revenue will jump from $3.5 billion in 2025 to $700-$750 billion in 2030.
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To sow the seeds for that expansion, SpaceX spent most of its second-quarter capex on Nvidia's (NVDA -0.99%) data center GPUs and other AI accelerators. The rest was used to deploy, acquire, and build more high-power data centers to increase its active capacity from 1.4 GW today to its target of 10 GW by next year.
That would give it a lot more bandwidth to handle its multi-billion-dollar compute hosting contracts with external enterprise clients. However, the expansion of that unprofitable AI business could offset Starlink's profits and keep its bottom line in the red.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
Nvidia (NVDA) has begun shipping its H200 artificial-intelligence chips into mainland China, according to a report, potentially reopening a lucrative market tha
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A monthly buyer of the Schwab U.S. Large-Cap Growth ETF (NYSEARCA:SCHG) has spent a decade being rewarded for a simple habit. Over the last ten years, SCHG returned about 445% against roughly 254% for the S&P 500, a gap that makes dollar-cost averaging feel like a decision that made itself.
This year the arithmetic has flipped. SCHG is up roughly 9% year-to-date, while SPY (NYSEARCA:SPY) has returned around 13% and QQQ (NASDAQ:QQQ) has returned nearly 19%.
SCHG’s pitch is owning the fastest-growing large American companies, yet in 2026 it trails both a plain vanilla index fund and the tech-heavy Nasdaq 100. That deserves a closer look before the next automatic contribution goes in.
What SCHG Was Built to Do SCHG holds the growth half of the U.S. large-cap universe at a very low fee. The fund manages about $61 billion and concentrates it heavily at the top, with the top ten positions accounting for roughly 57% of the fund and NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) alone at around 11%. That is a bet on the same handful of companies that dominated the last decade.
The return engine is straightforward: own the megacap growth basket, rebalance to a growth index, and let capital appreciation do the work. For most of the past ten years, that structure was exactly what an accumulator wanted, because the fund tilted into the leaders and stayed there while other strategies churned around them.
Why 2026 Looks Different The concentration that drove the decade is now dragging on the fund. When leadership broadens, a portfolio where the top ten names carry more than half the weight cannot help but lag a broader benchmark.
The S&P 500 owns the same megacap names but dilutes them with industrials, financials, healthcare, and staples that have participated in this year’s rally. SCHG owns almost none of that ballast.
The Nasdaq 100 has the opposite problem in SCHG’s favor and still beat it, because the growth index SCHG tracks holds positions like Eli Lilly and Costco that have not kept pace with the pure semiconductor and hyperscaler trade. The fund is doing exactly what it says it does, which happens to be the wrong shape for the market that showed up this year.
The Sequence Argument for a Monthly Buyer For someone still in the accumulation phase, a stalled year is not the same event as a stalled year near retirement. Early in the window, a lower price means each monthly contribution buys more shares, and the eventual recovery lifts a larger share count.
Late in the window, the same stall does real damage, because there is no longer enough time or contribution volume to average down before the balance has to start supporting withdrawals. Planners call this sequence-of-returns risk, and we wrote a free guide on defending the first years of retirement against exactly this problem, here. SCHG’s 2026 underperformance is only a problem if you are close enough to needing the money that this year’s shortfall cannot be diluted by the next several years of buying.
If you have ten or more years of contributions ahead of you, this year is neutral at worst and quietly useful at best.
Who Should Keep Going and Who Should Not An accumulator with a long runway should keep the automatic buys running. The fund’s structure has not changed; the fee is still low; and the shares you buy in a lagging year are the ones that compound the hardest if leadership returns.
Someone who has held the account for roughly five years should stop treating SCHG as a core holding and start treating it as a satellite. The concentration that helped for a decade is a real risk when there is no time left to wait out a rotation.
A simpler alternative for the core role is a plain S&P 500 fund, which holds the same leaders, offers greater diversification, and charges a comparable fee. The read on 2026 is that SCHG is doing what it was designed to do, and whether that is a problem depends entirely on where you sit in your own timeline.
Contact [email protected] for any questions or corrections.
Nvidia (NVDA), the king of AI accelerators, held near $219.31 Wednesday morning while Apple (AAPL), Tesla (TSLA), Amazon (AMZN) and Meta (META) bounced harder.
NVIDIA has become the load-bearing wall of the AI buildout. With OpenAI’s 10GW commitment, Anthropic, Meta, and AWS all queuing for Blackwell and Vera Rubin silicon, the question centers on how much runway remains in the AI cycle.
Our 24/7 Wall St. price target for NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) is $273.83, implying 24.62% upside from the $219.74 close on August 18, 2026. Our rating is buy, with high confidence at 90%. NVIDIA is compounding at hyperscale rates while trading at a forward multiple below the market’s most expensive AI names.
24/7 Wall St. Price Target Summary Metric Value Current Price $219.74 24/7 Wall St. Price Target $273.83 Upside 24.62% Recommendation BUY Confidence Level 90% What NVIDIA Just Delivered NVIDIA is up 17.96% year to date and 20.89% over the trailing year, currently about 28% below the 52-week high of $236.26. Q1 FY2027 (filed May 20, 2026) topped estimates: non-GAAP EPS of $1.87 beat $1.7738 consensus, and revenue of $81.61 billion, up 85.23% year over year.
Data Center revenue reached $75.25 billion, with networking up 199%. Management guided Q2 to $91 billion and lifted supply commitments to $145 billion. The OpenAI narrative dominates bullish sentiment into the August 26 earnings report.
Why Bulls See $315-Plus Our bull scenario points to $316.70, a 44.12% return. The case rests on three pillars. First, Jensen Huang put visibility at $1 trillion in Blackwell and Rubin revenue through calendar 2027, with hyperscale capex tracking above $1 trillion this year.
Second, Vera CPU opens a $200 billion TAM market NVIDIA has never addressed, with $20 billion already visible this year.
Third, gross margins remain at 75%, and management plans to return roughly 50% of free cash flow to shareholders. Analyst consensus target of $302.83, with 58 buy ratings, backstops the bull path.
What Could Go Wrong Our bear case lands at $235.92, a 7.36% gain. Risks include no China Data Center compute revenue in guidance, $119 billion in supply commitments requiring the demand curve to hold, and TSMC single-source dependence.
Prediction markets flag near-term caution, pricing a 44% probability of NVDA closing August at $232 and only 49.5% above $220. Bulls counter that supply commitments reflect confirmed orders backed by hyperscaler demand, and Q1 free cash flow of $48.55 billion funds working capital.
How NVIDIA Compares to AMD and Broadcom Advanced Micro Devices (NASDAQ:AMD) is the direct GPU competitor with OpenAI’s 6GW commitment and Anthropic’s 2GW Helios deal. AMD’s Q2 2026 data center revenue of $6.72 billion grew 107% YoY, outpacing NVIDIA’s growth rate, but AMD trades at a trailing P/E of 182 versus NVIDIA’s 34. NVIDIA looks conservatively priced.
Broadcom (NASDAQ:AVGO) is the custom-silicon counterweight, with Q2 2026 AI semi revenue of $10.8 billion (up 143%) and Q3 guidance for $16 billion in AI silicon. Broadcom’s $1.81T market cap sits at roughly a third of NVIDIA’s, yet earns similar hyperscaler mindshare. Against these peers, the $273.83 target sits within a defensible range.
Company Forward P/E Latest Rev Growth YoY NVIDIA 26 85% AMD n/a 50% Broadcom n/a 48% Bull and Bear Triggers to Watch The 24/7 Wall St. price target is $273.83 with a buy rating at 90% confidence. The tipping factor is 75% gross margins with 85%-plus revenue growth at a forward P/E of 26.
Investors researching entry points may focus on any pullback into the low $200s ahead of the August 26 earnings report. The thesis weakens if hyperscaler capex guides roll over or Vera Rubin ramp slips into 2027.
Extending the base-case trajectory using our 247Factor model:
Year 24/7 Wall St. Price Target 2026 $243 2027 $274 2028 $318 2029 $365 2030 $421 These projections assume NVIDIA executes on Blackwell and Rubin. Meaningful upside or downside could come from AI infrastructure spending reaching the $3 to $4 trillion annually by end of decade Jensen Huang outlined (the power, cooling, and networking suppliers riding that same buildout are the subject of a free 24/7 Wall St. report on seven AI infrastructure names outside the chipmakers), or from a China policy resolution reopening Data Center compute revenue.
Contact [email protected] for any questions or corrections.
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VUG has spent 2026 losing a quiet race to the Vanguard fund most of its holders barely think about. The Vanguard Growth ETF (NYSEARCA:VUG) is up roughly 10% year to date, while the Vanguard Dividend Appreciation ETF (NYSEARCA:VIG) has returned about 12%, a gap that would have felt unimaginable in any of the past ten calendar years.
The gap is smaller than the eight points some headlines have suggested, but the direction is what matters. VUG holders are living through the first stretch in a decade in which the growth style has cost them measurable returns relative to a boring dividend index within the same fund family.
Most of them never chose the style. They chose Vanguard and growth because growth had won every argument for a decade running.
The Style Bet You Never Made VUG’s top ten positions are roughly 65% of the fund, with NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) at 13.3% and Apple (NASDAQ:AAPL) at 12.3%. Technology and adjacent growth sectors account for the overwhelming majority of the portfolio.
That concentration is the whole explanation for the fund’s decade of outperformance and for this year’s shortfall. There is no separate stock-picking story to tell.
When an investor bought VUG, they were making a bet that long-duration earnings would continue to be rewarded relative to near-term cash flows. Nothing on the fact sheet frames the purchase that way.
The Dividend Appreciation ETF sits at the other end of the same shelf, screening for mature businesses paying rising dividends today (the same 50-year-streak profile we ranked by valuation in a free Dividend Kings report). Owning one instead of the other is a style decision worth several points of annual return, and most holders never made it consciously.
Why the Rotation Happened Sovereign bond yields have pushed toward multidecade highs, compressing the multiple the market will pay for earnings that arrive far in the future.
VUG owns almost nothing but long-duration earnings. The megacap technology names that dominate the fund derive most of their present value from cash flows expected years out, which is precisely the profile a higher discount rate punishes hardest.
The Dividend Appreciation ETF holds the opposite profile: businesses whose value lies mostly in a near-term dividend stream, backed by decades of payout history. Higher rates barely touch that math.
This dynamic persists as long as rates stay where they are, which has been the base case for most of the year, with no recession or tech blowup required.
Who Should Still Hold VUG VUG remains the right holding for an investor who genuinely wants concentrated exposure to American growth leaders and has a horizon long enough to ride out multi-year style droughts. The 0.03% expense ratio is close to free, and the ten-year record of roughly 412% still speaks for itself.
It is the wrong holding for anyone who bought it thinking it was a diversified US equity fund. A portfolio already heavy in company stock, tech-tilted 401(k) options, or individual mega-cap positions is doubling down every time it adds to VUG.
The practical move for a drifted holder is to stop adding to VUG rather than to sell it. New contributions can be routed into VIG, a total-market fund, or a high-dividend cousin like VYM until the style tilt across the whole portfolio evens out. Handled that way, the choice becomes a rebalancing decision rather than a market call, which is the only version of it a long-term investor should be willing to make.
Contact [email protected] for any questions or corrections.
Alpha-01 deployment fully funded by $6.4 million customer prepayment of lease payments; AI gaming subsidiary Gamee delivers third consecutive month of revenue growth with positive EBITDA; company builds out Global Infrastructure Services executive bench and reports sales pipeline in excess of $1.5 billion Alpha-01 deployment fully funded by $6.4 million customer prepayment of lease payments; AI gaming subsidiary Gamee delivers third consecutive month of revenue growth with positive EBITDA; company builds out Global Infrastructure Services executive bench and reports sales pipeline in excess of $1.5 billion
Nvidia is playing matchmaker, trying to connect companies with its graphics processing units to data-center operators that have the capacity to deploy them in the Nordics, sources have told CNBC.
While Nvidia has established an effective monopoly over the most powerful AI chips, it has worked to exert greater influence across the AI ecosystem as the race to build infrastructure accelerates. That reach extends through its software stack, relationships with governments and direct investments in other companies.
The chip giant has also sought a role in AI infrastructure deals. Two sources familiar with the matter have told CNBC that Nvidia has offered to introduce companies with data centers in the Nordics, an increasingly sought-after AI infrastructure region, to firms with its GPUs that are in the market for capacity.
The sources asked to remain anonymous when discussing private information.
How Nvidia is playing matchmaker for AI infrastructureTheir accounts add context to remarks by Nvidia Chief Financial Officer Colette Kress, who said in June that Nvidia had "certainly engaged" in "matchmaking" with companies. "How can we help them obtain land, power, shell?" she added. "How do we help them in terms of standing up the compute as fast as possible for what they need to do?"
Gigawatts of data-center capacity are due to be built in the Nordics in the coming years, thanks to access to power and abundant land. Neoclouds and hyperscalers including Nebius and Microsoft have inked deals in the region in 2026.
One source said that Nvidia had reached out to a data-center company, sounding out potential offtakers: customers that commit to buying or leasing computing capacity.
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This is part of what Nvidia sees as its "value proposition to GPU customers," the source said, adding that the chip giant "often" didn't name the companies on whose behalf it was reaching out.
The other source told CNBC that Nvidia had also made introductions between a company building AI infrastructure and those with GPUs in the U.S. and Asia. Nvidia is "helping make sure people who have money and demand for GPUs also have data center space," they added.
Nvidia did not respond to a request for comment from CNBC.
The company typically sells its chips to original equipment manufacturers, or OEMs, which then build them into racks and servers before selling them on. But it often has relationships with the companies buying the end product.
Why the Nordics are attracting AI data centersAccess to power and land attracts builders to the Nordics, while the cooler climate is appealing as data centers need to keep chips from overheating.
Numerous multi-hundred-megawatt facilities have been announced in Finland and Norway in recent months.
Pure DC said in July it would invest 1.5 billion euros ($1.74 billion) to build a 110 MW campus in Finland, with the potential to scale beyond 550 MW. Arcem has plans for a site with up to 500 MW of capacity. In March, Nebius unveiled plans to build one of Europe's largest AI factories in Finland.
In April, Microsoft announced it would take up extra computing capacity at an Nscale site in Norway.
There is currently 2.3 GW of data center capacity queuing for future connections to the power grid, according to Statnett, the Norwegian grid operator.
Oslo, Stockholm and Helsinki are among the top six locations worldwide for future data-center development potential, according to a report this month from real estate company Savills.
"For AI-driven data centre growth, the Nordics offer one of the clearest delivery propositions globally," Rupert Duckworth, associate director, EMEA Data Centre Advisory at Savills, said in the report.
"The region has increasingly become a focus for large-scale, AI-oriented development – with significant new campuses now progressing."
For much of the AI boom, investors believed one thing: expensive AI meant booming demand for Nvidia Corp‘s (NASDAQ:NVDA) chips. Now the opposite may be becoming true.
As OpenAI cuts prices, Chinese challengers like DeepSeek and Kimi introduce lower-cost models, and enterprises gain access to cheaper AI than ever before, the economics of artificial intelligence are changing rapidly. While that may sound like bad news for companies building AI models, it could ultimately strengthen the investment case for Nvidia.
The AI Price War Is Driving Costs LowerAI usage has become dramatically cheaper over the past few months.
SoFi Technologies, Inc. (NASDAQ:SOFI) Chief Market Strategist Liz Thomas noted on X that average AI token costs have fallen from $2.07 per million tokens in late May to $1.02, citing OpenAI’s price reductions and the growing availability of lower-cost open-source models from companies including Kimi and DeepSeek.
The broader trend is becoming increasingly difficult to ignore.
OpenAI recently reduced prices for some of its frontier models by as much as 80%, while Anthropic has also introduced lower-cost offerings as competition intensifies. Chinese AI companies, including DeepSeek and Moonshot AI, have further accelerated the industry’s shift toward cheaper inference.
The competition is no longer just about building the smartest model. It’s increasingly about building the most affordable one.
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Cheaper AI Could Mean More Demand for NvidiaAt first glance, falling prices might appear negative for the AI ecosystem. Lower prices usually imply lower revenue per transaction. But technology markets often behave differently.
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Economists call it the Jevons Paradox—the idea that making a resource cheaper and more efficient often increases total consumption rather than reducing it.
Early evidence suggests AI may already be following that pattern. After OpenAI reduced prices for some of its models, usage surged sharply. Business Insider reported that usage of GPT-5.6 Luna increased roughly fourteenfold, while Terra usage rose fivefold, with revenue also increasing despite the lower prices.
For Nvidia, that’s an important distinction.
The company doesn’t earn money from the price customers pay per token. It benefits when AI developers, hyperscalers and enterprises deploy more computing infrastructure to serve growing demand.
If cheaper AI encourages businesses to automate more workflows, launch more AI agents and process more inference requests, the total amount of computing required could continue rising—even if each individual AI query costs less.
The AI Winners May Shift, but Nvidia Still Stands to BenefitThe AI price war is undoubtedly putting pressure on model developers.
OpenAI, Anthropic and others must balance lower pricing with the enormous cost of building and operating frontier AI models. At the same time, open-source alternatives are forcing proprietary model providers to compete more aggressively on both performance and economics.
Hardware companies occupy a different position in that ecosystem.
As long as total AI workloads continue expanding, demand for GPUs, networking equipment and AI infrastructure can grow even if software becomes increasingly commoditized. The Wall Street Journal recently argued that the rise of cheaper open-weight AI models is unlikely to reduce demand for the industry’s “picks and shovels,” because broader adoption ultimately requires more computing capacity.
That doesn’t mean Nvidia is insulated from every competitive threat. Efficiency gains, custom AI chips and evolving model architectures remain important variables.
But falling AI prices alone are not necessarily bearish.
What Nvidia Investors Should Watch NextThe more important metric may no longer be the price of AI, but its usage. If lower costs encourage enterprises to embed AI into more products, automate more workflows and serve millions of additional users, infrastructure demand could continue climbing even as token prices fall.
For Nvidia investors, the next phase of the AI boom may be driven less by increasingly expensive models—and more by making AI affordable enough to be used almost everywhere.
Bank of America says so. The discount may be 34%, but its analysts say it could be as high as 50%. The Bank of America price target for Nvidia is $350. It trades at $218 today.
The analysts who made the statement with such an aggressive target believe the path there is simple. The money is locked up in free cash flow, especially when investors look at the sources that make up this number. Another factor is that the market is “overstating” the risk of AI in general.
Nvidia (NASDAQ: NVDA | NVDA Price Prediction) has spread its bets across the industry, which the analysis says is the right call by Nvidia management. “The strategic intent is clear: NVDA is committed to the transformational nature of AI and to securing every input,” including chip supply, land and power,” B of A writes.
The analysis is flawed for several reasons. It is very rare to find a price target so high, unless it is among Nvidia’s wild enthusiasts. Nvidia’s all-time high is $236, set in mid-May. The overall AI sell-off is driven by the debt the industry has taken on for data centers, and the concern that AI will not have the commercial adoption the sector’s cheerleaders assume.
Nvidia’s risks are actually simple to understand. One is that it is a chip maker which, with its technology lead, is the arms merchant to the entire AI industry. The other is that it is a banker. It provides capital, or backstops investments in AI companies and the infrastructure that lets them operate at a scale that implies massive demand for decades.
At the top of its list of cash investments are those in private-market leaders. It paid $30 billion for ownership in OpenAI earlier this year. It committed “up to” $10 billion to invest in Anthropic. The pessimistic part of the market criticizes this, saying the money is often used to buy Nvidia chips. However, traditional accounting rules have not changed to prevent this approach.
Nvidia, the banker for AI infrastructure, recently put more money on the table. It has offered $105 billion in credit support for a new data center in Ohio. “OpenAI will be the customer. SB Energy will build, own, and operate the data center under a 20-year lease to OpenAI.” Some of that money will go toward securing the land and supplying power. AI data centers are notorious for the massive demand for electricity. That, by itself, is a risk for most of these centers. So is the chance that laws and ordinances could block these projects. The Information says data center bans have hit over 500 locations.
The fear of the risk of data centers’ capital commitments has shown up in the interest rates for this capital. Even Meta (NASDAQ: META) is being hit by high interest rates for a project near El Paso.
The 50% premium B of A has put on the shares, based on current AI expansion challenges, is a particularly huge one. Not much negative news from the sector would be needed to push Nvidia stock the other way.
Contact [email protected] for any questions or corrections.
Nvidia stock NVDA edged 0.1% lower in early Wednesday trading as investors looked ahead to the chipmaker's August 26 earnings report and weighed reports that Chinese customers may receive additional shipments of its H200 processors.
The move followed a 2.3% decline on Tuesday amid a broader selloff in semiconductor stocks.
The company's upcoming fiscal 2027 second-quarter results remain the main focus for investors, with analysts expecting another strong performance from the leading AI chipmaker.
An additional source of upside could come from Nvidia's business in China.
Chinese authorities have allowed domestic companies ByteDance and Tencent to receive around 10,000 Nvidia H200 processors each in recent weeks, the Financial Times reported, citing people familiar with the matter.
Other Chinese companies could also receive approval for similar shipments, according to the report.
Nvidia's potential China revenue will be closely watched when the company reports results on August 26, as investors assess the impact of restrictions and approvals on its ability to serve the Chinese market.
Morningstar also highlighted China sales as an issue to watch in Nvidia's upcoming results.
The research firm expects the company to provide an update on sales, or non-sales, into China.
Morningstar has a $280 fair value estimate and a four-star rating on Nvidia, with a Wide economic moat rating and a Very High uncertainty rating.
Morningstar said it is looking for another "beat-and-raise" quarter from Nvidia, pointing to strong capital expenditure trends among hyperscalers and enterprises.
The firm expects Nvidia to generate well over $300 billion in data center revenue in calendar 2026, which corresponds to fiscal 2027, and potentially more than $500 billion in fiscal 2028.
Morningstar also expects the earnings report to provide an update on the pace of Nvidia's expansion and its product roadmap.
The firm said reports surrounding Rubin Ultra, expected in late 2027, suggest the product will still arrive but may not meet all of Nvidia's ambitious technological targets.
Nvidia's financing and backstopping of AI infrastructure partners is another area Morningstar plans to watch.
The firm highlighted Nvidia's recently announced $500 billion mobilization of large financial asset managers to invest in artificial intelligence, as well as smaller arrangements involving Sharon AI and Firmus.
The firm maintained that Nvidia's competitive position remains intact, citing its AI GPU hardware, CUDA software ecosystem, networking and interconnectivity capabilities.
Stifel also reiterated a Buy rating on Nvidia and a $282 price target ahead of the company's fiscal 2027 second-quarter earnings report.
The firm expects Nvidia to beat estimates and raise its guidance.
Stifel said debates surrounding memory costs and competition in AI inference are more likely to show up in Nvidia's gross margin than in demand.
Nvidia currently has a 74.15% gross profit margin, reflecting the company's pricing power in the AI chip market.
Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.
@CharlesSchwab's Joe Mazzola gauges AI chip volatility in the U.S. and aboard, noting the South Korean KOSPI's rampant swings as more extreme than those in the PHLX Semiconductor Index (SOX). He discusses activity "above the surface" of the index level to volatile moves below as investors parse out winners and losers in the space.
Artificial intelligence (AI) is moving beyond just cloud computing for software. It is moving into the real world and onto the factory floor.
One example of this is Nvidia's (NVDA -0.16%) recent partnership in Japan. The country is a leader in advanced manufacturing techniques and wants to maintain its lead in the age of AI and robotics. Japan is creating a 44-company consortium of industrial giants, called Noetra, to bring AI onto the factory floor, powered by Nvidia.
Here's the skinny on Nvidia's deal with Japan, and what it could mean for the stock going forward.
Image source: Nvidia.
Robotics as the next stage of AI development The collection of companies operating under the Noetra umbrella is part of the Japanese government's drive to remain relevant in the age of AI. Specifically, it aims to dominate advanced manufacturing techniques while remaining relatively independent of Chinese- and United States-based AI models.
To spark this growth, the Japanese government is providing $6.1 billion in subsidies for AI across manufacturing and industrial use cases. Nvidia was chosen as the compute backbone for the investment and is providing its advanced GPU clusters to power these innovations.
It is unclear exactly how much the Japanese government and Noetra group will spend on Nvidia chips, but it could be in the tens of billions over many years. Sovereign AI investments are a growing theme in places like Japan, South Korea, and the Middle East, as a way to diversify away from the leading private companies from the U.S. and China. Nvidia has positioned itself to benefit from both use cases.
What does this mean for Nvidia? Japan and its industrial giants are poised to invest billions in AI infrastructure in the years ahead, with Nvidia powering it. While this will not be a negative for the company, it is actually small compared to the overall revenue.
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In the last 12 months, Nvidia's revenue was $253 billion. It had $37.4 billion in revenue from AI cloud and industrial use cases last quarter alone, excluding the traditional hyperscaler cloud computing business. This is up from $21.5 billion in revenue from the same quarter a year prior.
Noetra is a part of this growth segment for Nvidia, but still a small part of it. The big question for Nvidia and its price-to-earnings ratio (P/E) of 35 is whether it can maintain its aggressive growth rate at such a massive scale, not whether Japan decides to subsidize less than $10 billion in AI compute capacity for factories.
Chinese robot makers showed off humanoids sorting parcels, packing mobile phones and helping with household chores at a Beijing conference on Wednesday, seeking to demonstrate a shift from crowd-pleasing displays to broader commercial use.
More than 300 mostly domestic companies are attending the World Robot Conference, which runs through Sunday, displaying over 2,000 exhibits and launching more than 150 products, according to organizers.
The event comes amid a surge of investor interest in humanoids, a potential new source of industrial growth for China and an arena of technological competition with the United States.
Humanoid robots produced by UB Tech sort small parcels at during the 2026 World Robot Conference in Beijing on Wednesday. AFP via Getty Images Shares in Unitree, China’s best-known humanoid robot maker, soared nearly sixfold in their Shanghai trading debut on Wednesday, after Unitree’s initial public offering was more than 8,000 times oversubscribed by retail investors.
Following Unitree’s IPO, startup Lumos Robotics and the robotics division of China’s largest auto exporter Chery Automobile told Reuters they were also considering stock market listings.
Nvidia executive visits Madison Huang, a senior Nvidia executive and daughter of the US chipmaker’s CEO Jensen Huang, made an unannounced visit to the event, watching robots perform flying kicks and dance routines before stopping at a companion-robot booth to ask about its sensors.
Huang, who drew onlookers much as her father has on past visits to Beijing, oversees marketing for Nvidia’s Omniverse and robotics platforms, software used to simulate and test physical AI — systems that can perceive and act in the real world.
Despite geopolitical tensions and US restrictions on exports of Nvidia’s most advanced AI chips to China, her visit highlighted foreign suppliers’ role in China’s push to develop intelligent and autonomous robots for its factories, warehouses and homes.
Madison Huang, a senior Nvidia executive and daughter of CEO Jensen Huang, made an unannounced visit to the event. REUTERS RealSense, a US-based maker of vision systems for robots and one of the few foreign exhibitors at the conference, said it was expanding manufacturing capacity and building sales partnerships in China as the sector develops.
“We see China as a very strategic market for us,” said Mike Nielsen, the company’s chief marketing officer.
“It is becoming the center of humanoid technology.”
A staff member dressed up in a costume poses with VBot robots on a dog leash. REUTERS Robotics an ‘important force’ At the opening ceremony, Xin Guobin, vice minister of industry and information technology, pledged support, saying robotics had become “an important force” in China’s economic and social development, state-backed financial outlet Cailianshe reported.
Robots are increasingly being tested in logistics, manufacturing and service settings, though many deployments remain at the pilot or early commercial stage.
“Our most common application scenarios are in logistics,” said Zhang Dapeng, assistant vice president at industrial humanoid robot firm Leju, as his company showed robots moving and sorting crates and small objects.
Exhibitors watch a robot play table tennis at a booth of Unitree. Shares soared in Unitree’s trading debut. AP Photo/Andy Wong
A robot demonstrates jumping ability. ZUMAPRESS.com Zhang said European factories and Chinese auto plants were using Leju robots to move boxes and load components.
At Robotera’s booth, a humanoid torso on a wheeled tripod base sorted parcels. A company official said the robot had been deployed at China Post logistics sites since last year using Robotera’s AI software.
A sales representative said Robotera had more than 100 parcel-sorting robots in 15 warehouses nationwide.
From demonstrations to deployment Nearby, DexForce demonstrated humanoid robots packing mobile phones into boxes on an assembly line.
The robots have been deployed since early this year at a Lens Technology factory, a Chinese supplier of touchscreens and other components to Apple and Huawei, said DexForce official Nicole Yang.
Yang said the machines had millimeter-level operating accuracy and could detect and correct errors, such as a phone being placed at an angle.
A robot demonstrates its ability to do chores. Xinhua/Shutterstock
People take pictures of Casbot humanoid robots playing the guitar. AFP via Getty Images “In theory, human beings are the most dexterous,” Yang said. “But many workers in factories are unwilling to do this kind of boring work.”
Lumos Robotics is already using robots to automate the assembly of key modules at its factory and plans to introduce them into final assembly, founder and Chief Executive Yu Chao said.
“This year, everyone is more focused on how robots can work in real-world scenarios,” he said.
China is beomcing the “center of humanoid technology,” said one attendee. ZUMAPRESS.com X Square Robot, known for its focus on household chores, is looking to move beyond short home-service trials.
Its longest deployment has lasted one month, and it is testing robots in hundreds of homes this year before gradual commercialisation next year, said co-founder and Chief Executive Yang Qian.
Commercial test Global humanoid shipments rose 272% in the first half of 2026 to about 19,000 units, with Chinese companies accounting for 97% of the total, according to Morgan Stanley, citing Smart Analytics Global data.
But about 65% of shipments still went to entertainment, education, research and data collection rather than productive commercial work, Morgan Stanley said.
A hyper-realistic silicon face for robots is displayed at the Magic Cube Robot booth. REUTERS
Humanoid robots from Unitree fight each other as they perform kickboxing. Getty Images RealSense’s Nielsen said the companies most likely to succeed would be those able to put robots into active production environments, adding that China’s rapid development cycle was pushing suppliers to move more quickly.
“The product cycles for robots are more like six to eight months, not three to four years,” he said.
Everpar Advisors LLC increased its stake in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 5.2% during the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 77,449 shares of the computer hardware maker’s stock after buying an additional 3,857 shares during the period. NVIDIA accounts for about 4.4% of Everpar Advisors LLC’s holdings, making the stock its 2nd largest holding. Everpar Advisors LLC’s holdings in NVIDIA were worth $15,497,000 as of its most recent filing with the Securities & Exchange Commission.
Other institutional investors have also recently modified their holdings of the company. Spectrum Financial Alliance Ltd LLC increased its position in shares of NVIDIA by 3.8% during the first quarter. Spectrum Financial Alliance Ltd LLC now owns 1,395 shares of the computer hardware maker’s stock valued at $243,000 after acquiring an additional 51 shares in the last quarter. LMG Wealth Partners LLC boosted its stake in shares of NVIDIA by 0.7% in the 4th quarter. LMG Wealth Partners LLC now owns 7,649 shares of the computer hardware maker’s stock worth $1,427,000 after buying an additional 53 shares during the last quarter. Vision Financial Markets LLC grew its holdings in shares of NVIDIA by 1.2% in the third quarter. Vision Financial Markets LLC now owns 4,640 shares of the computer hardware maker’s stock worth $866,000 after acquiring an additional 53 shares during the period. JGP Global Gestao de Recursos Ltda. boosted its position in NVIDIA by 2.3% in the fourth quarter. JGP Global Gestao de Recursos Ltda. now owns 2,402 shares of the computer hardware maker’s stock worth $448,000 after purchasing an additional 55 shares during the last quarter. Finally, Penobscot Wealth Management grew its stake in shares of NVIDIA by 0.7% during the 1st quarter. Penobscot Wealth Management now owns 7,930 shares of the computer hardware maker’s stock valued at $1,383,000 after purchasing an additional 55 shares during the period. 65.27% of the stock is owned by hedge funds and other institutional investors.
Insider Buying and Selling In other news, Director Stephen C. Neal sold 15,500 shares of the firm’s stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total value of $3,343,815.00. Following the sale, the director directly owned 116,135 shares in the company, valued at approximately $25,053,803.55. This trade represents a 11.77% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Mark A. Stevens sold 885,000 shares of NVIDIA stock in a transaction on Thursday, June 18th. The stock was 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 in the company, 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 90 days. Corporate insiders own 3.94% of the company’s stock.
NVIDIA News Roundup Here are the key news stories impacting NVIDIA this week: Positive Sentiment: Bank of America argued that NVIDIA’s shares offer a compelling valuation relative to free cash flow and could have as much as 55% upside, partly because expanded buybacks may improve shareholder returns. Here’s the case for Nvidia’s stock to climb 55% from here, according to BofA Positive Sentiment: NVIDIA’s agreement to support financing for OpenAI’s Ohio data center could help secure up to 8 gigawatts of future AI-compute capacity. The company is also investing $1.5 billion in SB Energy and is expected to be the campus’s exclusive AI-compute provider, potentially expanding long-term demand for its systems. Nvidia backs financing for OpenAI data center in Ohio Positive Sentiment: Analysts and investors continue to describe NVIDIA as a central “chokepoint” in AI infrastructure. Wall Street’s average price target implies substantial potential upside, while demand for GPUs remains strong even as custom AI chips gain traction. Wall Street Analysts Think Nvidia Could Surge Neutral Sentiment: Investors are focused on NVIDIA’s upcoming earnings and, more importantly, its forward guidance. Strong data-center growth, Blackwell demand, gross margins near 75%, and commentary on next-generation Rubin products will determine whether estimates move higher. Nvidia’s Q2 Preview Negative Sentiment: The Ohio project and NVIDIA’s broader plan to help arrange as much as $500 billion in AI infrastructure financing are raising concerns about circular financing, credit exposure, and whether customers can support the resulting spending. Higher Treasury yields further pressured high-growth technology valuations. Nvidia’s AI moat is shifting from chips to capital Negative Sentiment: Some investors favor Micron because of surging high-bandwidth-memory demand and a lower valuation, while comparisons with AMD and Broadcom highlight intensifying competition from custom AI silicon. NVIDIA’s large Intel investment and divided hedge-fund positioning also add to uncertainty. NVIDIA vs. Micron NVIDIA Price Performance NVIDIA stock opened at $219.74 on Wednesday. NVIDIA Corporation has a 1 year low of $164.07 and a 1 year high of $236.54. The stock has a market cap of $5.32 trillion, a price-to-earnings ratio of 33.65, a price-to-earnings-growth ratio of 0.44 and a beta of 2.23. The firm has a 50-day moving average of $206.70 and a two-hundred day moving average of $199.05. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85.
NVIDIA (NASDAQ:NVDA – Get Free Report) last issued its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, beating analysts’ consensus estimates of $1.76 by $0.11. The business had revenue of $81.61 billion during the quarter, compared to analyst estimates of $78.42 billion. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.NVIDIA’s revenue was up 85.2% on a year-over-year basis. During the same period in the previous year, the company posted $0.81 EPS. On average, research analysts forecast that NVIDIA Corporation will post 8.79 earnings per share for the current year.
NVIDIA announced that its board has approved a stock buyback program on Wednesday, May 20th that authorizes the company to buyback $80.00 billion in shares. This buyback authorization authorizes the computer hardware maker to purchase up to 1.5% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s management believes its stock is undervalued.
Wall Street Analyst Weigh In A number of equities research analysts have recently issued reports on the stock. Wedbush boosted their price objective on shares of NVIDIA from $300.00 to $330.00 and gave the company an “outperform” rating in a research report on Thursday, May 21st. Benchmark reissued a “buy” rating and set a $335.00 target price (up from $250.00) on shares of NVIDIA in a research note on Thursday, May 21st. KeyCorp reiterated an “overweight” rating and issued a $330.00 price target (up from $310.00) on shares of NVIDIA in a research note on Tuesday, July 14th. BNP Paribas Exane increased their target price on NVIDIA from $270.00 to $285.00 and gave the company an “outperform” rating in a research report on Thursday, May 21st. Finally, Stifel Nicolaus set a $282.00 price objective on shares of NVIDIA and gave the company a “buy” rating in a research 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 assigned a Hold rating to the stock. According to MarketBeat, NVIDIA presently has an average rating of “Buy” and a consensus price target of $305.94.
View Our Latest Analysis on NVIDIA
NVIDIA 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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Gradient Investments LLC raised its position in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 29.5% in the 2nd quarter, according to its most recent filing with the SEC. The firm owned 960,223 shares of the computer hardware maker’s stock after acquiring an additional 218,677 shares during the period. NVIDIA makes up 2.7% of Gradient Investments LLC’s investment portfolio, making the stock its 2nd largest holding. Gradient Investments LLC’s holdings in NVIDIA were worth $192,131,000 at the end of the most recent quarter.
A number of other institutional investors and hedge funds have also made changes to their positions in the company. Diversified Enterprises LLC increased its holdings in shares of NVIDIA by 44.2% in the 4th quarter. Diversified Enterprises LLC now owns 127,604 shares of the computer hardware maker’s stock worth $23,798,000 after acquiring an additional 39,129 shares during the period. Altshuler Shaham Ltd boosted its stake in NVIDIA by 6,451.9% during the 1st quarter. Altshuler Shaham Ltd now owns 637,236 shares of the computer hardware maker’s stock valued at $111,134,000 after purchasing an additional 627,510 shares during the period. ASR Vermogensbeheer N.V. boosted its stake in NVIDIA by 1.8% during the 4th quarter. ASR Vermogensbeheer N.V. now owns 3,169,377 shares of the computer hardware maker’s stock valued at $591,086,000 after purchasing an additional 54,877 shares during the period. Storen Legacy Partners LLC bought a new position in NVIDIA in the 4th quarter worth about $1,350,000. Finally, Weaver Capital Management LLC increased its stake in shares of NVIDIA by 5.5% in the fourth quarter. Weaver Capital Management LLC now owns 85,216 shares of the computer hardware maker’s stock valued at $15,893,000 after purchasing an additional 4,439 shares during the period. 65.27% of the stock is currently owned by institutional investors and hedge funds.
Key Stories Impacting NVIDIA Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: Bank of America argued that NVIDIA’s shares offer a compelling valuation relative to free cash flow and could have as much as 55% upside, partly because expanded buybacks may improve shareholder returns. Here’s the case for Nvidia’s stock to climb 55% from here, according to BofA Positive Sentiment: NVIDIA’s agreement to support financing for OpenAI’s Ohio data center could help secure up to 8 gigawatts of future AI-compute capacity. The company is also investing $1.5 billion in SB Energy and is expected to be the campus’s exclusive AI-compute provider, potentially expanding long-term demand for its systems. Nvidia backs financing for OpenAI data center in Ohio Positive Sentiment: Analysts and investors continue to describe NVIDIA as a central “chokepoint” in AI infrastructure. Wall Street’s average price target implies substantial potential upside, while demand for GPUs remains strong even as custom AI chips gain traction. Wall Street Analysts Think Nvidia Could Surge Neutral Sentiment: Investors are focused on NVIDIA’s upcoming earnings and, more importantly, its forward guidance. Strong data-center growth, Blackwell demand, gross margins near 75%, and commentary on next-generation Rubin products will determine whether estimates move higher. Nvidia’s Q2 Preview Negative Sentiment: The Ohio project and NVIDIA’s broader plan to help arrange as much as $500 billion in AI infrastructure financing are raising concerns about circular financing, credit exposure, and whether customers can support the resulting spending. Higher Treasury yields further pressured high-growth technology valuations. Nvidia’s AI moat is shifting from chips to capital Negative Sentiment: Some investors favor Micron because of surging high-bandwidth-memory demand and a lower valuation, while comparisons with AMD and Broadcom highlight intensifying competition from custom AI silicon. NVIDIA’s large Intel investment and divided hedge-fund positioning also add to uncertainty. NVIDIA vs. Micron Insider Activity In other NVIDIA news, Director Stephen C. Neal sold 15,500 shares of the firm’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 sale, the director directly owned 116,135 shares in the company, valued at approximately $25,053,803.55. This trade represents a 11.77% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Mark A. Stevens sold 885,000 shares of NVIDIA stock in a transaction dated 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 transaction, the director directly owned 5,207,271 shares in the company, valued at approximately $1,094,412,146.07. This trade represents a 14.53% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 1,901,125 shares of company stock worth $410,583,015. 3.94% of the stock is owned by corporate insiders. Analysts Set New Price Targets Several brokerages have recently issued reports on NVDA. Royal Bank Of Canada set a $280.00 price objective on NVIDIA in a research report on Thursday, May 21st. Wall Street Zen downgraded NVIDIA from a “strong-buy” rating to a “buy” rating in a research note on Saturday, July 4th. Weiss Ratings reiterated a “buy (b)” rating on shares of NVIDIA in a research report on Wednesday, July 8th. Daiwa Securities Group increased their price target on NVIDIA from $215.00 to $255.00 and gave the stock an “outperform” rating in a research note on Friday, May 22nd. Finally, DA Davidson reissued a “buy” rating and issued a $300.00 price target on shares of NVIDIA in a research note on Monday, June 1st. Three investment 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. Based on data from MarketBeat.com, NVIDIA presently has a consensus rating of “Buy” and an average price target of $305.94.
Check Out Our Latest Research Report on NVIDIA
NVIDIA Trading Down 2.3% NVIDIA stock opened at $219.74 on Wednesday. NVIDIA Corporation has a 52 week low of $164.07 and a 52 week high of $236.54. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44. The firm has a market capitalization of $5.32 trillion, a price-to-earnings ratio of 33.65, a P/E/G ratio of 0.44 and a beta of 2.23. The company has a 50 day moving average price of $206.70 and a 200 day moving average price of $199.05.
NVIDIA (NASDAQ:NVDA – Get Free Report) last released its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.76 by $0.11. The company had revenue of $81.61 billion during the quarter, compared to analyst estimates of $78.42 billion. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The company’s revenue for the quarter was up 85.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.81 earnings per share. Research analysts forecast that NVIDIA Corporation will post 8.79 EPS for the current year.
NVIDIA declared that its Board of Directors has approved a share buyback plan on Wednesday, May 20th that authorizes the company to buyback $80.00 billion in outstanding shares. This buyback authorization authorizes the computer hardware maker to repurchase up to 1.5% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s board believes its stock is undervalued.
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.
Read More Five stocks we like better than NVIDIA The AI Boom Is Turning This Cable Maker Into a Stock to Watch A Star Investor Just Trimmed Amazon—Here’s What It means Wendy’s Deal Buzz May Give Fast-Food Investors a New Reason to Look Home Depot Analysts See a Path to $375 and Beyond 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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First National Bank of Mount Dora Trust Investment Services lessened its stake in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 3.5% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 97,463 shares of the computer hardware maker’s stock after selling 3,540 shares during the period. NVIDIA comprises about 3.9% of First National Bank of Mount Dora Trust Investment Services’ holdings, making the stock its 2nd largest holding. First National Bank of Mount Dora Trust Investment Services’ holdings in NVIDIA were worth $19,501,000 as of its most recent filing with the Securities and Exchange Commission.
Several other institutional investors have also added to or reduced their stakes in the company. Lifetime Wealth Management P.C. purchased a new stake in shares of NVIDIA during the fourth quarter worth about $26,000. Longview Financial Advisors Inc. bought a new position in shares of NVIDIA in the 1st quarter worth approximately $27,000. Longfellow Investment Management Co. LLC lifted its position in NVIDIA by 47.9% during the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock valued at $33,000 after buying an additional 67 shares during the period. Phillip James Consulting Co. bought a new stake in NVIDIA during the first quarter worth about $40,000. Finally, Inspire Investing LLC bought a new stake in shares of NVIDIA in the 4th quarter worth approximately $44,000. Hedge funds and other institutional investors own 65.27% of the company’s stock.
NVIDIA Trading Down 2.3% NVDA opened at $219.74 on Wednesday. The firm has a market cap of $5.32 trillion, a P/E ratio of 33.65, a P/E/G ratio of 0.44 and a beta of 2.23. The company has a current ratio of 3.44, a quick ratio of 2.85 and a debt-to-equity ratio of 0.04. The stock has a 50-day moving average of $206.70 and a 200 day moving average of $199.05. 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 issued 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. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The company had revenue of $81.61 billion during the quarter, compared to the consensus estimate of $78.42 billion. During the same period last year, the company earned $0.81 earnings per share. NVIDIA’s revenue was up 85.2% on a year-over-year basis. As a group, research analysts forecast that NVIDIA Corporation will post 8.79 EPS for the current year. NVIDIA declared that its board has approved a stock repurchase program on Wednesday, May 20th that permits the company to buyback $80.00 billion in outstanding shares. This buyback authorization permits the computer hardware maker to purchase up to 1.5% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s leadership believes its stock is undervalued.
NVIDIA News Summary Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: Bank of America argued that NVIDIA’s shares offer a compelling valuation relative to free cash flow and could have as much as 55% upside, partly because expanded buybacks may improve shareholder returns. Here’s the case for Nvidia’s stock to climb 55% from here, according to BofA Positive Sentiment: NVIDIA’s agreement to support financing for OpenAI’s Ohio data center could help secure up to 8 gigawatts of future AI-compute capacity. The company is also investing $1.5 billion in SB Energy and is expected to be the campus’s exclusive AI-compute provider, potentially expanding long-term demand for its systems. Nvidia backs financing for OpenAI data center in Ohio Positive Sentiment: Analysts and investors continue to describe NVIDIA as a central “chokepoint” in AI infrastructure. Wall Street’s average price target implies substantial potential upside, while demand for GPUs remains strong even as custom AI chips gain traction. Wall Street Analysts Think Nvidia Could Surge Neutral Sentiment: Investors are focused on NVIDIA’s upcoming earnings and, more importantly, its forward guidance. Strong data-center growth, Blackwell demand, gross margins near 75%, and commentary on next-generation Rubin products will determine whether estimates move higher. Nvidia’s Q2 Preview Negative Sentiment: The Ohio project and NVIDIA’s broader plan to help arrange as much as $500 billion in AI infrastructure financing are raising concerns about circular financing, credit exposure, and whether customers can support the resulting spending. Higher Treasury yields further pressured high-growth technology valuations. Nvidia’s AI moat is shifting from chips to capital Negative Sentiment: Some investors favor Micron because of surging high-bandwidth-memory demand and a lower valuation, while comparisons with AMD and Broadcom highlight intensifying competition from custom AI silicon. NVIDIA’s large Intel investment and divided hedge-fund positioning also add to uncertainty. NVIDIA vs. Micron Wall Street Analyst Weigh In NVDA has been the topic of a number of recent research reports. Needham & Company LLC reissued a “buy” rating and issued a $270.00 target price on shares of NVIDIA in a research note on Tuesday, June 2nd. Bank of America restated a “buy” rating and set a $350.00 price objective (up from $320.00) on shares of NVIDIA in a research report on Thursday, May 21st. Wolfe Research reissued an “outperform” rating and issued a $275.00 target price on shares of NVIDIA in a research report on Thursday, May 21st. Sanford C. Bernstein reissued a “buy” rating on shares of NVIDIA in a research report on Monday, June 29th. Finally, DA Davidson reaffirmed a “buy” rating and issued a $300.00 price objective on shares of NVIDIA in a research note on Monday, June 1st. Three equities research analysts have rated the stock with a Strong Buy rating, forty-nine have issued a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, NVIDIA currently has an average rating of “Buy” and an average target price of $305.94.
Get Our Latest Report on NVIDIA
Insider Buying and Selling at NVIDIA In other news, Director Mark A. Stevens sold 885,000 shares of the company’s stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the transaction, the director owned 5,207,271 shares of the company’s stock, valued at approximately $1,094,412,146.07. This represents a 14.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director John Dabiri sold 625 shares of the company’s stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total value of $133,750.00. Following the completion of the transaction, the director directly owned 14,163 shares in the company, valued at $3,030,882. This trade represents a 4.23% decrease in their position. 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 sold 1,901,125 shares of company stock worth $410,583,015 over the last 90 days. Company insiders own 3.94% of the company’s stock.
NVIDIA 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.
Read More Five stocks we like better than NVIDIA The AI Boom Is Turning This Cable Maker Into a Stock to Watch A Star Investor Just Trimmed Amazon—Here’s What It means Wendy’s Deal Buzz May Give Fast-Food Investors a New Reason to Look Home Depot Analysts See a Path to $375 and Beyond
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GoalVest Advisory LLC lowered its stake in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 49.0% in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 21,878 shares of the computer hardware maker’s stock after selling 21,004 shares during the quarter. NVIDIA comprises 0.8% of GoalVest Advisory LLC’s portfolio, making the stock its 18th largest holding. GoalVest Advisory LLC’s holdings in NVIDIA were worth $4,378,000 as of its most recent filing with the Securities & Exchange Commission.
Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. State Street Corp raised its holdings in NVIDIA by 1.2% in the 4th quarter. State Street Corp now owns 991,480,489 shares of the computer hardware maker’s stock worth $184,911,111,000 after acquiring an additional 11,451,386 shares during the period. Geode Capital Management LLC boosted its holdings in NVIDIA by 0.6% during the fourth quarter. Geode Capital Management LLC now owns 588,803,093 shares of the computer hardware maker’s stock valued at $109,446,217,000 after acquiring an additional 3,383,441 shares during the period. Norges Bank bought a new stake in NVIDIA during the fourth quarter valued at about $62,244,133,000. Bank of America Corp DE grew its position in shares of NVIDIA by 2.1% in the first quarter. Bank of America Corp DE now owns 191,200,989 shares of the computer hardware maker’s stock valued at $33,345,453,000 after purchasing an additional 4,019,505 shares during the last quarter. Finally, Legal & General Group Plc increased its stake in shares of NVIDIA by 1.5% in the third quarter. Legal & General Group Plc now owns 181,203,035 shares of the computer hardware maker’s stock worth $33,808,862,000 after purchasing an additional 2,609,560 shares during the period. Institutional investors and hedge funds own 65.27% of the company’s stock.
Insider Buying and Selling In related news, Director Stephen C. Neal sold 15,500 shares of the firm’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 transaction, the director owned 116,135 shares in the company, valued at $25,053,803.55. This trade represents a 11.77% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Mark A. Stevens sold 885,000 shares of the business’s 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 sale, the director directly owned 5,207,271 shares in the company, valued at approximately $1,094,412,146.07. This represents a 14.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,901,125 shares of company stock worth $410,583,015 in the last 90 days. 3.94% of the stock is owned by company insiders.
Analysts Set New Price Targets Several research firms recently weighed in on NVDA. Raymond James Financial reissued a “strong-buy” rating and set a $330.00 price objective on shares of NVIDIA in a research report on Thursday, May 21st. Robert W. Baird set a $500.00 price target on NVIDIA and gave the stock an “outperform” rating in a research report on Thursday, May 21st. Bank of America reiterated a “buy” rating and set a $350.00 price target (up from $320.00) on shares of NVIDIA in a report on Thursday, May 21st. Evercore reissued an “outperform” rating and issued a $413.00 price objective (up from $352.00) on shares of NVIDIA in a research report on Thursday, May 21st. Finally, HSBC restated a “buy” rating and issued a $325.00 price objective (up from $295.00) on shares of NVIDIA in a research note on Tuesday, May 19th. Three equities research 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. Based on data from MarketBeat.com, the company presently has an average rating of “Buy” and a consensus target price of $305.94. View Our Latest Report on NVIDIA
Key NVIDIA News Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: Bank of America argued that NVIDIA’s shares offer a compelling valuation relative to free cash flow and could have as much as 55% upside, partly because expanded buybacks may improve shareholder returns. Here’s the case for Nvidia’s stock to climb 55% from here, according to BofA Positive Sentiment: NVIDIA’s agreement to support financing for OpenAI’s Ohio data center could help secure up to 8 gigawatts of future AI-compute capacity. The company is also investing $1.5 billion in SB Energy and is expected to be the campus’s exclusive AI-compute provider, potentially expanding long-term demand for its systems. Nvidia backs financing for OpenAI data center in Ohio Positive Sentiment: Analysts and investors continue to describe NVIDIA as a central “chokepoint” in AI infrastructure. Wall Street’s average price target implies substantial potential upside, while demand for GPUs remains strong even as custom AI chips gain traction. Wall Street Analysts Think Nvidia Could Surge Neutral Sentiment: Investors are focused on NVIDIA’s upcoming earnings and, more importantly, its forward guidance. Strong data-center growth, Blackwell demand, gross margins near 75%, and commentary on next-generation Rubin products will determine whether estimates move higher. Nvidia’s Q2 Preview Negative Sentiment: The Ohio project and NVIDIA’s broader plan to help arrange as much as $500 billion in AI infrastructure financing are raising concerns about circular financing, credit exposure, and whether customers can support the resulting spending. Higher Treasury yields further pressured high-growth technology valuations. Nvidia’s AI moat is shifting from chips to capital Negative Sentiment: Some investors favor Micron because of surging high-bandwidth-memory demand and a lower valuation, while comparisons with AMD and Broadcom highlight intensifying competition from custom AI silicon. NVIDIA’s large Intel investment and divided hedge-fund positioning also add to uncertainty. NVIDIA vs. Micron NVIDIA Trading Down 2.3% Shares of NVIDIA stock opened at $219.74 on Wednesday. NVIDIA Corporation has a 52-week low of $164.07 and a 52-week high of $236.54. The firm has a market capitalization of $5.32 trillion, a PE ratio of 33.65, a price-to-earnings-growth ratio of 0.44 and a beta of 2.23. 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 company’s fifty day moving average price is $206.70 and its two-hundred day moving average price is $199.05.
NVIDIA (NASDAQ:NVDA – Get Free Report) last released its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share 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 company had revenue of $81.61 billion for the quarter, compared to the consensus estimate of $78.42 billion. During the same period in the previous year, the business earned $0.81 earnings per share. The company’s quarterly revenue was up 85.2% on a year-over-year basis. On average, analysts expect that NVIDIA Corporation will post 8.79 EPS for the current year.
NVIDIA declared that its Board of Directors has initiated a stock repurchase plan on Wednesday, May 20th that permits the company to buyback $80.00 billion in shares. This buyback authorization permits the computer hardware maker to purchase up to 1.5% of its shares through open market purchases. Shares buyback plans are often a sign that the company’s leadership believes its stock is 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.
Featured Stories Five stocks we like better than NVIDIA The AI Boom Is Turning This Cable Maker Into a Stock to Watch A Star Investor Just Trimmed Amazon—Here’s What It means Wendy’s Deal Buzz May Give Fast-Food Investors a New Reason to Look Home Depot Analysts See a Path to $375 and Beyond
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Everhart Financial Group Inc. trimmed its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 4.0% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 240,854 shares of the computer hardware maker’s stock after selling 10,003 shares during the period. NVIDIA makes up about 3.1% of Everhart Financial Group Inc.’s portfolio, making the stock its 10th biggest position. Everhart Financial Group Inc.’s holdings in NVIDIA were worth $48,193,000 as of its most recent SEC filing.
Several other large investors have also made changes to their positions in NVDA. Sax Wealth Advisors LLC increased its stake in shares of NVIDIA by 11.5% in the second quarter. Sax Wealth Advisors LLC now owns 106,898 shares of the computer hardware maker’s stock worth $21,389,000 after acquiring an additional 10,985 shares during the period. Oliver Luxxe Assets LLC raised its holdings in shares of NVIDIA by 8.1% during the second quarter. Oliver Luxxe Assets LLC now owns 2,667 shares of the computer hardware maker’s stock worth $534,000 after purchasing an additional 200 shares during the last quarter. Everpar Advisors LLC raised its holdings in shares of NVIDIA by 5.2% during the second quarter. Everpar Advisors LLC now owns 77,449 shares of the computer hardware maker’s stock worth $15,497,000 after purchasing an additional 3,857 shares during the last quarter. Chemistry Wealth Management LLC lifted its position in NVIDIA by 1.7% during the second quarter. Chemistry Wealth Management LLC now owns 17,401 shares of the computer hardware maker’s stock valued at $3,482,000 after purchasing an additional 297 shares during the period. Finally, Avity Investment Management Inc. lifted its position in NVIDIA by 0.4% during the second quarter. Avity Investment Management Inc. now owns 294,605 shares of the computer hardware maker’s stock valued at $58,948,000 after purchasing an additional 1,259 shares during the period. 65.27% of the stock is owned by hedge funds and other institutional investors.
NVIDIA Trading Down 2.3% Shares of NASDAQ:NVDA opened at $219.74 on Wednesday. The business’s 50 day moving average price is $206.70 and its 200-day moving average price is $199.05. NVIDIA Corporation has a 1 year low of $164.07 and a 1 year high of $236.54. The firm has a market capitalization of $5.32 trillion, a price-to-earnings ratio of 33.65, a price-to-earnings-growth ratio of 0.44 and a beta of 2.23. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85.
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 analysts’ consensus estimates of $1.76 by $0.11. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The business had revenue of $81.61 billion during the quarter, compared to analysts’ expectations of $78.42 billion. During the same quarter in the previous year, the company earned $0.81 earnings per share. The company’s quarterly revenue was up 85.2% on a year-over-year basis. On average, equities research analysts forecast that NVIDIA Corporation will post 8.79 earnings per share for the current fiscal year. NVIDIA declared that its board has authorized a stock repurchase plan on Wednesday, May 20th that permits the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization permits the computer hardware maker to purchase up to 1.5% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board of directors believes its stock is undervalued.
Analysts Set New Price Targets Several equities research analysts have weighed in on the company. Zacks Research raised NVIDIA from a “hold” rating to a “strong-buy” rating in a research report on Monday, July 20th. Craig Hallum boosted their price objective on NVIDIA from $245.00 to $275.00 and gave the company a “buy” rating in a report on Thursday, May 21st. Susquehanna restated 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. Rosenblatt Securities reaffirmed a “buy” rating and set a $325.00 target price on shares of NVIDIA in a report on Thursday, May 21st. Finally, BMO Capital Markets reiterated a “buy” rating on shares of NVIDIA in a research report on Tuesday. Three investment 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 stock. According to MarketBeat, the company currently has a consensus rating of “Buy” and a consensus price target of $305.94.
Get Our Latest Research Report on NVDA
Key Headlines Impacting NVIDIA Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: Bank of America argued that NVIDIA’s shares offer a compelling valuation relative to free cash flow and could have as much as 55% upside, partly because expanded buybacks may improve shareholder returns. Here’s the case for Nvidia’s stock to climb 55% from here, according to BofA Positive Sentiment: NVIDIA’s agreement to support financing for OpenAI’s Ohio data center could help secure up to 8 gigawatts of future AI-compute capacity. The company is also investing $1.5 billion in SB Energy and is expected to be the campus’s exclusive AI-compute provider, potentially expanding long-term demand for its systems. Nvidia backs financing for OpenAI data center in Ohio Positive Sentiment: Analysts and investors continue to describe NVIDIA as a central “chokepoint” in AI infrastructure. Wall Street’s average price target implies substantial potential upside, while demand for GPUs remains strong even as custom AI chips gain traction. Wall Street Analysts Think Nvidia Could Surge Neutral Sentiment: Investors are focused on NVIDIA’s upcoming earnings and, more importantly, its forward guidance. Strong data-center growth, Blackwell demand, gross margins near 75%, and commentary on next-generation Rubin products will determine whether estimates move higher. Nvidia’s Q2 Preview Negative Sentiment: The Ohio project and NVIDIA’s broader plan to help arrange as much as $500 billion in AI infrastructure financing are raising concerns about circular financing, credit exposure, and whether customers can support the resulting spending. Higher Treasury yields further pressured high-growth technology valuations. Nvidia’s AI moat is shifting from chips to capital Negative Sentiment: Some investors favor Micron because of surging high-bandwidth-memory demand and a lower valuation, while comparisons with AMD and Broadcom highlight intensifying competition from custom AI silicon. NVIDIA’s large Intel investment and divided hedge-fund positioning also add to uncertainty. NVIDIA vs. Micron Insider Activity In other NVIDIA news, Director John Dabiri sold 625 shares of NVIDIA stock in a transaction 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 sale, the director owned 14,163 shares of the company’s stock, valued at $3,030,882. The trade was a 4.23% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available 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 company’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 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 ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,901,125 shares of company stock worth $410,583,015 over the last quarter. 3.94% of the stock is currently owned by corporate insiders.
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.
See Also Five stocks we like better than NVIDIA The AI Boom Is Turning This Cable Maker Into a Stock to Watch A Star Investor Just Trimmed Amazon—Here’s What It means Wendy’s Deal Buzz May Give Fast-Food Investors a New Reason to Look Home Depot Analysts See a Path to $375 and Beyond
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Cardano Risk Management B.V. cut its position in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 4.5% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 7,715,089 shares of the computer hardware maker’s stock after selling 359,349 shares during the period. NVIDIA makes up about 11.9% of Cardano Risk Management B.V.’s portfolio, making the stock its biggest holding. Cardano Risk Management B.V.’s holdings in NVIDIA were worth $1,543,712,000 at the end of the most recent reporting period.
Several other institutional investors have also added to or reduced their stakes in NVDA. Lifetime Wealth Management P.C. bought a new stake in NVIDIA in the fourth quarter worth $26,000. Longview Financial Advisors Inc. purchased a new position in shares of NVIDIA in the 1st quarter worth $27,000. Longfellow Investment Management Co. LLC grew its stake in shares of NVIDIA by 47.9% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock worth $33,000 after buying an additional 67 shares in the last quarter. Phillip James Consulting Co. bought a new stake in shares of NVIDIA in the 1st quarter worth about $40,000. Finally, Spurstone Advisory Services LLC bought a new stake in shares of NVIDIA in the 2nd quarter worth about $40,000. Hedge funds and other institutional investors own 65.27% of the company’s stock.
Insider Transactions at NVIDIA In other NVIDIA news, Director Stephen C. Neal sold 15,500 shares of the business’s stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total value of $3,343,815.00. Following the completion of the sale, the director directly owned 116,135 shares of the company’s stock, valued at $25,053,803.55. The trade was a 11.77% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director John Dabiri sold 625 shares of the company’s stock in a transaction dated 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 owned 14,163 shares in the company, valued at $3,030,882. This represents a 4.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 1,901,125 shares of company stock worth $410,583,015. Insiders own 3.94% of the company’s stock.
NVIDIA News Summary Here are the key news stories impacting NVIDIA this week: Positive Sentiment: Bank of America argued that NVIDIA’s shares offer a compelling valuation relative to free cash flow and could have as much as 55% upside, partly because expanded buybacks may improve shareholder returns. Here’s the case for Nvidia’s stock to climb 55% from here, according to BofA Positive Sentiment: NVIDIA’s agreement to support financing for OpenAI’s Ohio data center could help secure up to 8 gigawatts of future AI-compute capacity. The company is also investing $1.5 billion in SB Energy and is expected to be the campus’s exclusive AI-compute provider, potentially expanding long-term demand for its systems. Nvidia backs financing for OpenAI data center in Ohio Positive Sentiment: Analysts and investors continue to describe NVIDIA as a central “chokepoint” in AI infrastructure. Wall Street’s average price target implies substantial potential upside, while demand for GPUs remains strong even as custom AI chips gain traction. Wall Street Analysts Think Nvidia Could Surge Neutral Sentiment: Investors are focused on NVIDIA’s upcoming earnings and, more importantly, its forward guidance. Strong data-center growth, Blackwell demand, gross margins near 75%, and commentary on next-generation Rubin products will determine whether estimates move higher. Nvidia’s Q2 Preview Negative Sentiment: The Ohio project and NVIDIA’s broader plan to help arrange as much as $500 billion in AI infrastructure financing are raising concerns about circular financing, credit exposure, and whether customers can support the resulting spending. Higher Treasury yields further pressured high-growth technology valuations. Nvidia’s AI moat is shifting from chips to capital Negative Sentiment: Some investors favor Micron because of surging high-bandwidth-memory demand and a lower valuation, while comparisons with AMD and Broadcom highlight intensifying competition from custom AI silicon. NVIDIA’s large Intel investment and divided hedge-fund positioning also add to uncertainty. NVIDIA vs. Micron Wall Street Analyst Weigh In A number of research analysts recently commented on NVDA shares. William Blair reaffirmed an “outperform” rating on shares of NVIDIA in a report on Tuesday, June 2nd. Morgan Stanley restated an “overweight” rating on shares of NVIDIA in a research report on Tuesday, August 11th. Sanford C. Bernstein reaffirmed a “buy” rating on shares of NVIDIA in a research note on Monday, June 29th. Argus lifted their target price on NVIDIA from $220.00 to $270.00 and gave the stock a “buy” rating in a report on Thursday, May 21st. Finally, Robert W. Baird set a $500.00 target price on NVIDIA and gave the company an “outperform” rating in a research report on Thursday, May 21st. Three research analysts have rated the stock with a Strong Buy rating, forty-nine have given a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, NVIDIA presently has an average rating of “Buy” and a consensus price target of $305.94.
View Our Latest Report on NVDA
NVIDIA Price Performance Shares of NVDA stock opened at $219.74 on Wednesday. The stock has a 50 day moving average price of $206.70 and a 200 day moving average price of $199.05. NVIDIA Corporation has a 52-week low of $164.07 and a 52-week high of $236.54. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44. The firm has a market capitalization of $5.32 trillion, a P/E ratio of 33.65, a P/E/G ratio of 0.44 and a beta of 2.23.
NVIDIA (NASDAQ:NVDA – Get Free Report) last announced 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. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The company had revenue of $81.61 billion for the quarter, compared to the consensus estimate of $78.42 billion. During the same quarter in the prior year, the company posted $0.81 EPS. NVIDIA’s quarterly revenue was up 85.2% on a year-over-year basis. As a group, sell-side analysts predict that NVIDIA Corporation will post 8.79 earnings per share for the current year.
NVIDIA announced that its board has authorized a share buyback 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 typically an indication that the company’s board of directors believes its shares are undervalued.
NVIDIA 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.
Recommended Stories Five stocks we like better than NVIDIA The AI Boom Is Turning This Cable Maker Into a Stock to Watch A Star Investor Just Trimmed Amazon—Here’s What It means Wendy’s Deal Buzz May Give Fast-Food Investors a New Reason to Look Home Depot Analysts See a Path to $375 and Beyond 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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Today’s economic calendar continues MOPEX week with a limited number of scheduled releases. DoE Crude Oil, Gasoline, and Distillate Inventories arrive at 10:30AM ET, followed by the Treasury’s 20 Year Bond Auction at 1:00PM ET. The primary event of the day comes at 2:00PM ET with the release of the July FOMC Meeting Minutes, which could provide additional insight into policymakers’ views on inflation, employment, economic growth, and the future path of monetary policy. Traders should watch Treasury yields closely around both afternoon events, particularly if the Minutes reveal meaningful disagreement within the Committee or alter expectations for future policy.
With the morning relatively quiet, market structure, technical levels, and options positioning may carry greater influence before the afternoon catalysts arrive. We are also moving deeper into MOPEX week, with monthly options expiration approaching Friday and positioning potentially having a greater influence around heavily concentrated strikes. The combination of a quiet morning followed by a Treasury auction and FOMC Minutes could create a session where volatility is concentrated later in the day rather than around the opening bell.
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 continue through MOPEX week with a relatively light economic calendar. If buyers defend this level, 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 few morning catalysts, positioning and technical levels could dominate early trade before the 20 Year Treasury auction and FOMC Minutes create potential afternoon volatility.
Invesco QQQ Trust Series 1 (QQQ)
QQQ is currently trading around 716.50 and remains under pressure as several mega cap technology names continue to trade below recent highs. If buyers defend this pivot, price may advance toward 723.50, followed by 730.50 if momentum strengthens. Sustained strength above 737.50 would indicate improving institutional demand across technology.
If 716.50 fails to hold, sellers may drive price toward 710.00. A deeper breakdown could expose 703.50, while continued weakness may bring the 697.00 region into play. Treasury yields should be particularly important this afternoon, with both the 20 Year auction and FOMC Minutes capable of influencing rate sensitive growth stocks.
Apple Inc. (AAPL)
AAPL is currently trading around 310.00 and continues to demonstrate better relative stability than several other mega cap technology names. If buyers defend this pivot, price may rotate toward 315.25, followed by 320.50 if momentum builds. Sustained strength above 325.75 would indicate improving institutional participation.
If 310.00 breaks lower, sellers may test 305.00 quickly. Continued downside pressure could extend into the psychological 300 level, while deeper weakness may bring the 295.00 region into focus. Relative performance against QQQ should remain worth monitoring throughout the session.
Microsoft Corp. (MSFT)
MSFT is currently trading around 479.75 and remains under pressure after losing the psychologically important 500 level. If buyers defend this area, price may recover toward 486.75, followed by 493.75 if momentum builds. Sustained strength above 500.75 would reclaim 500 and materially improve the short term structure.
If 479.75 fails to hold, sellers may press into 472.75. A deeper pullback could test 465.75, while continued weakness may bring the 458.75 region into play. Until MSFT begins reclaiming higher levels, rallies should be watched closely for continued selling pressure.
NVIDIA Corporation (NVDA)
NVDA is currently trading around 220.00 and remains an important leadership gauge for semiconductors and QQQ. If buyers defend this pivot, a move toward 227.25 may develop, followed by 234.50 if momentum strengthens. Sustained trade above 241.75 would indicate renewed upside expansion and improving semiconductor leadership.
If 220.00 fails to hold, sellers may test 214.00 quickly. Continued downside could extend into 208.00, while deeper weakness may bring the 202.00 region into focus. With technology already under pressure, NVDA’s ability to hold its structure could provide an important indication of whether selling is broadening.
Alphabet Inc Class A (GOOGL)
GOOGL is currently trading around 342.25 and continues to struggle with relative weakness. If buyers defend this level, price may rotate toward 348.75, followed by 355.25 if momentum improves. Sustained strength above 361.75 would indicate a more meaningful recovery attempt.
If 342.25 fails to hold, sellers may guide price toward 336.25. A breakdown there could expose 330.25, while continued weakness may bring the 324.25 region into play. GOOGL remains a name where traders should look for evidence of stabilization before assuming broader technology strength will translate into sustained buying.
Meta Platforms Inc (META)
META is currently trading around 544.25 after experiencing significant weakness from the 600 area. If buyers defend this pivot, a recovery toward 551.75 may develop, followed by 559.25 if momentum builds. Sustained strength above 566.75 would begin improving the damaged short term structure.
If 544.25 breaks lower, sellers may guide price toward 537.25. A deeper pullback could test 530.25, while continued weakness may bring the 523.25 region into focus. META’s relative weakness remains notable, and buyers will need to establish a durable base before a larger recovery becomes more convincing.
Tesla Inc. (TSLA)
TSLA is currently trading around 336.00 and continues to consolidate following its recent recovery. If buyers defend this pivot, a move toward 344.50 may develop, followed by 353.00 if momentum continues. Sustained strength above 361.50 would indicate stronger speculative participation and improve the short term structure.
If 336.00 fails to hold, sellers may test 328.00 quickly. Continued downside pressure could extend into 320.00, while deeper weakness may bring the 312.00 region into play. With TSLA’s typically elevated volatility, broader risk sentiment and MOPEX positioning could amplify moves in either direction.
Final Word: Good luck and trade safely!
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Stifel Nicolaus has reaffirmed its ‘Buy' rating on Nvidia (NASDAQ: NVDA) and maintained a price target of $282 ahead of the company's fiscal second-quarter 2027 earnings report scheduled for August 26.
Small batches of Nvidia's H200 artificial intelligence chips have been allowed into mainland China as Beijing attempts to balance support for its leading AI companies with its push to build a domestic semiconductor industry, the Financial Times reported.
ByteDance and Tencent have each received roughly 10,000 H200 processors in recent weeks, while several other Chinese technology companies could receive approval for shipments of a similar size, according to people familiar with the matter cited by the newspaper.
The developments highlight the complicated position Nvidia occupies in China.
Beijing wants its technology companies to have enough computing power to compete with US AI developers, but it also wants to reduce the country's dependence on foreign semiconductor technology.
The H200 is already at least two generations behind Nvidia's most advanced processors, which remain unavailable to Chinese customers because of US export restrictions.
Beijing seeks to limit mainland useChinese technology groups have received US approval to purchase as many as 100,000 H200 processors each.
However, Beijing wants most of those chips to remain outside mainland China, according to the Financial Times report.
Chinese regulators have also told companies they can ship H200 processors to Hong Kong and use them there.
The US licences cover shipments of H200 chips to both mainland China and Hong Kong, giving Chinese companies an additional route to access Nvidia's technology.
But Hong Kong presents its own infrastructure challenge.
The territory does not have enough data-center capacity to accommodate the large volumes of chips that Chinese technology companies could potentially receive.
Power supply constraints are also expected to limit how quickly that capacity can expand.
“It’s a dilemma. Everyone needs the chips but struggles to find a way to use them in Hong Kong,” said a person familiar with the situation.
“The hope is for the control to loosen up gradually.”
The restrictions have also left Nvidia with a substantial inventory of H200 processors intended largely for Chinese customers.
The company has about 500,000 H200 chips in stock, mainly for the Chinese market, according to people familiar with the situation cited by the Financial Times.
Sales of the processors had been held up by Beijing's restrictions.
Some Nvidia partners are now preparing to resume sales.
Lenovo and other partners told Chinese customers last week that they could begin placing orders for products containing H200 chips, according to one person cited in the report.
The partners integrate Nvidia processors with CPUs, networking equipment and other components to create AI servers.
However, orders would still require individual approval through an application process overseen by China's National Development and Reform Commission, according to a person with direct knowledge of the matter, said FT.
Domestic chipmakers remain Beijing's priorityChina's continued restrictions on Nvidia hardware reflect Beijing's broader effort to strengthen domestic semiconductor companies, particularly Huawei.
Huawei and other Chinese chipmakers are seeking to capture a larger share of the country's semiconductor market as Nvidia faces increasingly tight restrictions on sales of its most advanced processors.
But China's domestic industry still faces technological constraints.
The country lacks access to some of the most advanced chipmaking equipment, limiting its ability to rapidly increase production of cutting-edge processors.
That means Nvidia chips are likely to remain necessary for parts of China's AI industry, particularly for training advanced models.
Chinese AI developers are increasingly using domestic chips for inference, the stage in which AI models generate responses to users.
Nvidia processors remain more widely used for training, which requires significantly greater computing power to build models and identify patterns.
Chinese regulators have recently begun easing some restrictions on US chips as they seek to ensure that leading domestic AI developers have sufficient computing resources to train increasingly sophisticated models.
Chinese companies are attempting to narrow the gap with leading US AI developers.
Moonshot released its K3 model last month, with performance reportedly approaching that of the most advanced US systems.
Alibaba, DeepSeek and Z.ai subsequently released models with comparable levels of capability, suggesting that Chinese developers are making rapid progress.
The limited H200 shipments therefore represent a compromise for Beijing.
China needs access to Nvidia's processors to maintain momentum in the AI race, particularly for training, but it also wants to prevent US chips from undermining its long-term effort to establish a self-sufficient semiconductor ecosystem.
For Nvidia, the developments offer a potential outlet for hundreds of thousands of processors already allocated to Chinese customers.
But the company remains caught between Washington's export controls and Beijing's efforts to steer demand toward domestic chipmakers.
Nvidia's effective monopoly over the most powerful chips has made U.S. export controls a key tool in Washington's effort to preserve its advantage over China in the AI race.
But despite U.S. restrictions on exporting the company's most advanced semiconductors, including GB300s, several Chinese firms have reportedly been able to access the chips' compute power via data centers in Southeast Asia.
Less than a week after Moonshot AI released a new model in July, White House official Michael Kratsios accused the company of using Nvidia's GB300 chips via a facility in Thailand.
Moonshot's Kimi K3 is one of a wave of new Chinese AI models that have made leaps in performance in recent months, as the race for AI supremacy between Washington and Beijing intensifies. DeepSeek and Alibaba have also recently released new AI systems that have scored well on performance benchmarks.
Industry watchers say access to advanced compute via overseas cloud providers is a key factor in Chinese AI models gaining capability. U.S. legislation is being discussed to plug this loophole, but hurdles remain before it can have an impact.
How Chinese firms access Nvidia computing power overseasNvidia's most advanced AI chips are under export restrictions to China, though some less capable semiconductors are allowed to be shipped to the country.
Cassia King, senior researcher on the Compute Policy team at the Institute for AI Policy and Strategy, told CNBC that Moonshot's reported access to compute through a Thai facility was legal "so long as Moonshot isn't actually buying and owning the physical hardware directly."
She said the U.S. export control regime "controls physical AI chips. It does not cover remote access to those chips."
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When asked about Chinese firms accessing Nvidia compute overseas to train AI models, a White House official told CNBC: "The Trump administration has implemented the most rigorous export control regime in modern history, and remains committed to safeguarding America's national and economic security."
The U.S. Department of Commerce and Bureau of Industry and Security (BIS) did not respond to a request for comment.
Chinese hyperscalers including ByteDance, Alibaba and Tencent have reportedly accessed compute power from Nvidia chips remotely via other Asian nations, including Thailand, Malaysia and Japan. ByteDance and Tencent did not respond to a request for comment. Alibaba declined to comment.
ByteDance was working with Singapore-headquartered Aolani, a cloud provider with Nvidia chips, to access compute in Malaysia, according to a source familiar with the matter, who asked to remain anonymous when discussing private information. The Wall Street Journal first reported the arrangement in March.
Aolani told CNBC it worked "with a global and diversified customer base spanning customers from North America and Asia."
"The companies we service do not have ownership, potential future claim or physical access to the chips that power our solutions," the spokesperson added. "Any permitted access to our services, infrastructure or technology is fully compliant with all applicable regulations."
AI infrastructure buildouts in Southeast Asia are booming as companies look to tap the growing market for advanced compute.
Real estate company JLL estimates that global data center capacity could roughly double to 200GW by 2030.
There are 31 planned 100MW+ data centers across Malaysia, Indonesia and Thailand, compared to just two today, according to data compiled by DC Byte.
What the Remote Access Security Act would changeMichelle Nie, a visiting fellow in technology and national security at think tank Center for a New American Security, told CNBC that loophole was "threatening U.S. national security."
"The point of chip export controls is to deny China the ability to train frontier AI using advanced U.S. chips," she added.
A proposed piece of legislation, the Remote Access Security Act (RASA), seeks to expand U.S. export controls to include the remote cloud-based access of critical hardware and software. It passed the House of Representatives in January but has yet to pass the Senate.
It faces potential industry pushback, Nie said, adding: "Cloud providers would bear the compliance burden of any KYC and customer verification requirements mandated by the bill."
The passing of RASA alone wouldn't solve the problem, Nie added, saying it would give the U.S. government "the authority to regulate remote access," but it "would still need to create a rule to export-control remote access to advanced chips."
The Bureau of Industry and Security (BIS) could push through a rule quickly, possibly in a "matter of days" with White House support, said King.
"The challenge will be in making a rule that's effective and enforceable," she added. "Policymakers will need to decide what compute is covered, who should be prohibited from remotely accessing the compute, and how to implement a robust know-your-customer scheme."
Compute bottlenecks, primarily at Taiwan Semiconductor, but also for HBM memory, have constrained the rate of AI compute capacity deployment. These supply-chain constraints have elongated NVidia's GPU cycle, enabling the company to introduce new generations of leading-edge GPUs that the leading LLM developers require and demand. As a result, NVidia's revenue growth rate and margins have stayed high: Q1 GAAP margin was 74.9% and free-cash-flow was $45.5 billion, up 16.7% sequentially.
Nvidia CEO Jensen Huang. Philip FONG / AFP via Getty Images Jensen Huang is getting more social.
Since joining X last month, the Nvidia CEO has posted about everything from aging chips to financing the AI buildout. But compared to some of his more outspoken peers, Huang likes to explain things.
Other tech CEOs have made social media an extension of their public personas: Elon Musk broadcasts everything from product news to politics, while OpenAI's Sam Altman and Meta's Mark Zuckerberg have shared sweeping visions for the future of AI. Huang talks more like a teacher.
His first post demonstrated exactly that. Huang overcame his "shyness" in joining X because his July 24 post — a letter advocating for open AI models — was "too important to the industry and too important to the world," he said.
Open models, which make their underlying technology widely available, also have serious business ramifications for Nvidia. They mean more companies building AI — and more customers for its chips.
This dynamic runs through Huang's early feed: he's explaining AI while making the case for ideas that benefit Nvidia.
Huang, whose leather jackets and rockstar keynotes have inspired a cult following, made a personal decision to join X, an Nvidia representative previously told Axios — though it comes as the chip giant looks to bolster internal operations.
The company is hiring a senior manager of social media — with a base salary of up to $299,000 — to lead its social team and "turn complex technology and business priorities into stories people want to watch."
Nvidia did not respond to a request for comment from Business Insider.
The savvy behind Jensen Huang's teacher personaHuang is the de facto "pump man for the AI trade," said Luke Lango, chief technology analyst at InvestorPlace, with Nvidia being at the center of countless deals and arguably its biggest beneficiary.
"He does so in a self-deprecating, very kind of shy-man way," Lango said. "But underneath, it's a multibillionaire CEO of the world's largest company making sure his empire stays well-supported."
If that communication style is less bombastic, it's just as savvy, Lango said.
And though he heads the most valuable company in the world, his work culture posts — like thanking interns — reinforce his relatability, said Karen North, a clinical professor of communication at USC Annenberg.
Unlike consumer technology that people interact with in a "tangible way," Nvidia operates in a world many people don't understand, said North.
Therefore, Huang's presence on X serves as a "social media cheat sheet," imparting information that followers can use at the dinner table. His thought leadership also builds trust with investors who congregate on the site, including when the company hits bumps in the road.
"Whatever knowledge you take away, you also take away trust in him and trust in his brand," North said.
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Geoff Weiss You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Geoff Weiss is a senior reporter on Business Insider’s tech team, where he writes about AI startups and Y Combinator, the intersection of AI and the media industry, and workplace dynamics within top AI labs and chip companies.Previously, Geoff was on the media desk, covering YouTube and Netflix, and themes like the intersection of Hollywood and the creator economy. His work on Netflix’s video podcasting ambitions and Mr Beast’s lessons for Hollywood won second and first prize, respectively, at the 2025 LA Press Club Awards.Prior to joining Business Insider, Geoff was the senior editor of Tubefilter and a staff writer at Entrepreneur. He graduated from New York University with a degree in English Literature.He can be reached at [email protected], on Signal @geoffweiss.25, and on LinkedIn. Have a tip? Use a personal email address and a nonwork device; here's our guide to sharing information securely.Selected stories:Nvidia crushed its quarter — and CEO Jensen Huang said in a leaked all-hands that 'the market did not appreciate it'Nvidia will foot the bill for Trump's new visa fees. Here's what CEO Jensen Huang told staff.Massive AI salaries and RTO are fueling a real estate boom in San Francisco: 'It's going to rain money'The AI talent wars are ricocheting across startups. Here's how they're competing with Big Tech.
August is home to two of the most important data releases of the quarter: Nvidia's (NVDA -2.34%) operating results (scheduled for Aug. 26) and Form 13F filings by institutional investors with at least $100 million in assets under management. A 13F offers a snapshot of the stocks that Wall Street's leading money managers purchased and sold in the latest quarter.
Friday, Aug. 14, marked the deadline for fund managers to file Form 13Fs detailing their second-quarter trading activity. It also gives investors a firsthand look at the trends captivating the attention of billionaire investors, such as Coatue Management's Philippe Laffont.
The second quarter was a busy one for Laffont, with nine new holdings, eight existing stakes added to, five positions exited, and 22 holdings reduced. But among these more than three dozen chess moves, one consistency stands out: Laffont was, yet again, a seller of Nvidia stock.
Image source: Getty Images.
Coatue Management's billionaire boss has been a persistent seller of Nvidia stock Despite Nvidia's graphics processing units (GPUs) absolutely dominating in artificial intelligence (AI)-accelerated data centers, Laffont has been reducing his exposure to the face of the AI revolution in all but one of the last 13 quarters (share counts adjusted for Nvidia's 10-for-1 forward split in June 2024):
Q1 2023: 49,802,020 shares held Q2 2023: 46,449,700 shares (-3,352,320) Q3 2023: 45,410,400 shares (-1,039,300) Q4 2023: 43,222,010 shares (-2,188,390) Q1 2024: 13,851,410 shares (-29,370,600) Q2 2024: 13,754,447 shares (-96,963) Q3 2024: 10,138,161 shares (-3,616,286) Q4 2024: 10,006,488 shares (-131,673) Q1 2025: 8,545,835 shares (-1,460,653) Q2 2025: 11,488,529 shares (+2,942,694) Q3 2025: 9,870,743 shares (-1.617,786) Q4 2025: 9,203,337 shares (-667,405) Q1 2026: 6,331,620 shares (-2,871,718) Q2 2026: 6,055,197 shares (-276,423) Collectively, Coatue Management's billionaire boss has slashed his fund's stake in Nvidia by roughly 88% since March 31, 2023. It begs the question: What does Philippe Laffont know that Wall Street doesn't?
Image source: Nvidia.
There's likely more than just profit-taking behind this selling One of the more obvious reasons for this ongoing selling activity is profit-taking. Since Laffont's Nvidia stake peaked in the first quarter of 2023, shares of the company have jumped tenfold. But there's likely more to this selling than just ringing the register.
For example, competition is expected to ramp up. Although Nvidia's GPUs are superior on a compute basis, the company's biggest threat may come from within.
Several of Nvidia's top customers by net sales are developing AI chips for their own data centers. While these in-house AI chips aren't an external threat to Nvidia, they're notably cheaper and more readily accessible than Nvidia's hardware. In other words, they can take up valuable data center real estate and minimize the GPU shortage that's helped fuel Nvidia's pricing power.
-- Geiger Capital (@Geiger_Capital) May 8, 2026 Furthermore, history shows that every game-changing technology dating back more than 30 years has navigated an early stage bubble-bursting event. Investors consistently overestimate the pace of adoption and optimization of hyped technologies, and nothing suggests that AI will be the exception to this unwritten rule.
Things need to go perfectly for Nvidia to maintain its $5.45 trillion valuation. However, the ramp-up of every game-changing technology has been filled with proverbial speed bumps and potholes.
Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
Analytici Bank of America jsou přesvědčeni, že současná cena akcií společnosti Nvidia neodpovídá jejím dlouhodobým příležitostem a že se obchodují se slevou 34 až 50 %.
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Nvidia (NVDA -2.34%) has jumped 15% since July 29, but it's not overvalued.
It's true that the stock is more expensive than the S&P 500, trading at a trailing price-to-earnings ratio of 37.5 based on adjusted earnings per share, but investors have to consider the company's growth rate as well. Factoring that in, Nvidia is on fire.
The company reported 85% revenue growth in the first quarter, and revenue growth is expected to accelerate to 97% in the second quarter as it launches its new Rubin platform.
Image source: Nvidia.
Nvidia's PEG ratio shows it's not overvalued A price-to-earnings ratio tells you a company's valuation, but it's not that useful on its own. You have to consider a company's growth rate as well, and the metric that does that is the PEG ratio, which is the price-to-earnings-to-growth ratio, or the PE ratio divided by its expected compound annual earnings-per-share growth over a given period, often the next five years.
As of August 2026, Nvidia's PEG ratio was just 0.62. A PEG ratio under 1 is typically considered undervalued, as it indicates that earnings will grow to generate a good return on investment.
The PEG ratio comes with a caveat, which is that future earnings are difficult to predict, especially five years out, but there's clearly a lot of momentum behind Nvidia's growth.
Not only is revenue expected to nearly double in fiscal Q2 2027, the current quarter, but the market for Nvidia's data center chips, which make up the bulk of its business, seems to keep expanding.
SpaceX (SPCX -1.98%), flush with cash after its recent IPO, said it would build its AI infrastructure exclusively on Nvidia chips. For Nvidia, that means it's earned a great customer in SpaceX, and it's a strong signal to the market that Nvidia makes the best chips. SpaceX is targeting 10GW of compute by the end of 2027, meaning it will spend an estimated $150 billion-$250 billion chips. That appears to set up a massive windfall for Nvidia.
Nvidia CEO Jensen Huang has given $1 trillion in total revenue as a target for 2026-2027, implying the company could hit roughly $400 billion in revenue this year and $600 billion in fiscal 2028, which ends in Jan. 2028.
Hyperscaler capex will support Nvidia's profit growth In addition to the tailwind from SpaceX, Nvidia will also benefit from soaring capex spend among the four big hyperscalers, Amazon, Alphabet, Microsoft, and Meta Platforms, who are expected to spend roughly $700 billion on AI chips this year, and that number is likely to go up next year, fueling strong profit growth into 2028.
Additionally, Anthropic and OpenAI are expected to IPO soon, and that could happen before the end of 2026, though OpenAI now appears to be leaning toward going public in 2027. Those companies will be flush with cash after their public offerings, like SpaceX is now, and are likely to accelerate spending on AI infrastructure, including Nvidia chips.
Today's Change
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Why Nvidia's a buy today Nvidia dominates the market for data center GPUs with its market share hovering around 90% share, and it has significant growth potential in the physical AI market if robotics and autonomous vehicles go mainstream.
Meanwhile, the company looks perfectly positioned to benefit from the surge in AI infrastructure coming from the hyperscalers, SpaceX, and AI start-ups Anthropic and OpenAI.
At its trailing price-to-earnings ratio of 37.5, the stock actually looks undervalued when looking out over the next few years, as earnings per share could double from fiscal 2027 to fiscal 2029 (calendar 2028).
Nvidia's valuation is lower than its growth would suggest because investors seem to be afraid of the cyclicality of semiconductors, but I think that's a mistake.
Nvidia chips that are several years old are still in use, and there are signs that the AI build-out is only in its early stages. Given that, Nvidia's profits could go a lot higher from here, and that will push the stock higher, even if skepticism remains.
The YieldMax NVDA Option Income Strategy ETF (NVDY) is downgraded to Hold, reflecting diminished upside and less attractive option income due to lower Nvidia volatility. NVDY now tracks NVDA more closely in a rangebound market, but falling option premiums limit income potential and upside capture is constrained by the fully covered call structure. Long-term bullishness on Nvidia remains, but NVDY's high distributions erode capital, making it less suitable for capturing extended NVDA rallies.
Small batches of Nvidia's (NVDA.O) H200 chips, one of the company's most powerful AI chips, have been allowed to enter mainland China, the Financial Times reported on Tuesday, citing two people with knowledge of the matter.
ByteDance and Tencent (0700.HK) have each received about 10,000 H200 processors in recent weeks, while a few other Chinese technology firms could soon secure similar shipments, the report said.
Although the U.S. has cleared the companies to purchase up to 100,000 H200 chips each, Beijing wants them to keep the hardware outside mainland China to support the growth of domestic chipmakers, according to the FT report.
The report added that Chinese regulators have told companies they can ship the processors to Hong Kong, which operates outside mainland China's customs border, and use them there.
Last month, a top U.S. official told Congress that a small number of Nvidia H200 chips had been shipped to China.
Reuters could not immediately verify the report. Nvidia did not immediately respond to a Reuters request for comment.
Nvidia (NVDA -2.34%) is trading at relatively cheap valuations, which is perplexing investors given its performance.
*Stock prices used were the afternoon prices of Aug. 16, 2026. The video was published on Aug.18, 2026.
Parkev Tatevosian, CFA has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The Vanguard Morningstar Mega Cap Growth ETF (MGK -1.06%) offers low-cost exposure to the largest U.S. growth stocks, while the State Street SPDR S&P 600 Small Cap Growth ETF (SLYG -1.71%) targets smaller companies with high expansion potential.
Investors choosing between these two funds are essentially weighing the stability and dominance of America's largest corporations against the high-octane potential of small-cap companies. While both ETFs strictly target growth-oriented firms, the scale of their underlying holdings creates vastly different risk profiles and performance drivers for a portfolio.
Snapshot (cost & size)MetricSLYGMGKIssuerSPDRVanguardShare price$118.35 (as of 2026-08-13)$91.14 (as of 2026-08-13)Expense ratio0.15%0.05%1-yr return (as of 2026-08-13)27.4%17.7%Dividend yield0.6%0.3%Beta1.041.24AUM$5.2B$33.3BBeta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The Vanguard fund is more affordable with an expense ratio of 0.05%, which is one-third the cost of the SPDR fund. State Street SPDR S&P 600 Small Cap Growth ETF provides a slightly higher payout for income-seeking investors.
Performance & risk comparisonMetricSLYGMGKMax drawdown (5 yr)(29.2%)(36.0%)Growth of $1,000 over 5 years (total return)$1,407$1,927What's insideThe Vanguard Morningstar Mega Cap Growth ETF provides concentrated exposure to the giants of the U.S. market, holding only 69 companies. Its portfolio is heavily weighted toward the technology sector at 59%, followed by communication services at 16% and consumer cyclical at 11%. Its largest positions include Nvidia (NVDA -2.34%) at 13.24%, Apple (AAPL +1.45%) at 12.14%, and Microsoft (MSFT +0.27%) at 7.49%. The fund was launched in 2007. Vanguard Morningstar Mega Cap Growth ETF has paid $0.29 per share over the trailing 12 months, which on its recent ~$91.14 share price works out to a 0.3% yield.
Contrastingly, the State Street SPDR S&P 600 Small Cap Growth ETF offers much broader diversification with 351 holdings. It targets smaller firms with strong expansion in sales and earnings, leading to a sector mix of industrials at 19%, technology at 17%, and healthcare at 15%. Its largest positions include Viasat (VSAT -6.56%) at 1.31%, Corcept Therapeutics (CORT +0.79%) at 1.18%, and Brinker International (EAT -2.51%) at 1.17%. The fund was launched in 2000. State Street SPDR S&P 600 Small Cap Growth ETF has paid $0.76 per share over the trailing 12 months, which on its recent ~$118.35 share price works out to a 0.6% yield.
For more guidance on ETF investing, check out the full guide at this link.
Which looks like the better buyIt is hard to beat Vanguard and its low fees. The Vanguard Morningstar Mega Cap Growth ETF has an expense ratio of just 0.05% compared to the State Street SPDR S&P 600 Small Cap Growth ETF, which has fee of 0.15%.
But which one of these two ETFs you choose to invest in depends on your portfolio. Mega cap growth stocks have outperformed small cap growth stocks by a fairly significant margin over the past three-, five- and 10-year periods. That's no surprise as the mega caps, including the Magnificent Seven stocks and many AI leaders, have dominated the markets over the past decade.
But small cap stocks have outperformed in more recent times. This year, small caps have been one of the hottest investments on the market and that has carried over from a strong 2025 for small caps.
I would probably favor the small cap growth ETF because all of these mega cap stocks are in an S&P 500 ETF, which most investors already have. It's less likely that investors have adequately diversified into small cap growth stocks. Further, small caps remain more reasonably valued than overvalued mega cap stocks, even after surging this year. They should have more room to run as they are cheaper and should benefit from lower rates and investors rotating out of large caps.
Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Corcept Therapeutics, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
Dryden Pence returns to the Watch List and walks investors through some of his top stock picks, which includes Nvidia (NVDA), a company he calls a "pivotal chokepoint" in AI. He doesn't see the AI trade slowing down and sees Nvidia capitalizing on every aspect of the industry.
In the latest trading session, Nvidia (NVDA - Free Report) closed at $219.82, marking a -2.31% move from the previous day. This change lagged the S&P 500's daily loss of 0.69%. Meanwhile, the Dow lost 0.22%, and the Nasdaq, a tech-heavy index, lost 1.33%.
Heading into today, shares of the maker of graphics chips for gaming and artificial intelligence had gained 10.69% over the past month, outpacing the Computer and Technology sector's gain of 5.97% and the S&P 500's gain of 3.96%.
The investment community will be paying close attention to the earnings performance of Nvidia in its upcoming release. The company is slated to reveal its earnings on August 26, 2026. The company is forecasted to report an EPS of $2.09, showcasing a 99.05% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $91.71 billion, up 96.2% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $9.09 per share and a revenue of $387.8 billion, representing changes of +90.57% and +79.59%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nvidia. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Nvidia currently has a Zacks Rank of #2 (Buy).
From a valuation perspective, Nvidia is currently exchanging hands at a Forward P/E ratio of 24.76. Its industry sports an average Forward P/E of 41.12, so one might conclude that Nvidia is trading at a discount comparatively.
Investors should also note that NVDA has a PEG ratio of 0.42 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Semiconductor - General industry had an average PEG ratio of 0.77.
The Semiconductor - General industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 32, positioning it in the top 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Nvidia Corp.’s (NASDAQ:NVDA) most famous skeptic just handed the chip giant a new rival to worry about.
Michael Burry declared on Tuesday that “This is serious competition for NVDA,” pointing to a Wall Street Journal report on Etched — a startup that has spent the past two years quietly stocking its engineering ranks with Nvidia’s own talent.
NVDA stock is moving. See the chart and price action here. According to the report, Etched said it took just 44 days after getting test chips back from Taiwan Semiconductor Manufacturing to have them running inference workloads. The process typically takes six months or longer, the report said.
Central to that speed is Brian Loiler, who spent 22 years at Nvidia building its HGX and DGX server systems before Etched recruited him in 2024 as VP of Platform, according to the company.
Since joining, Loiler has helped pull roughly a dozen more engineers away from Nvidia — some of whom turned down richer counteroffers to stay, the Journal reported. Nvidia alumni now make up about 15% of Etched’s roughly 400-person workforce, per the report.
Read Next
A Chip Built for One JobEtched’s flagship product, a chip called Sohu, is designed exclusively to run transformer-based AI models — the architecture behind large language models like ChatGPT — rather than functioning as a general-purpose GPU the way Nvidia’s chips do, CNBC reported when the company first emerged.
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The startup raised a $120 million Series A in 2024 with backing from Peter Thiel and Replit CEO Amjad Masad, Reuters reported at the time. Etched closed a $300 million Series C in July that pushed its valuation to $10.3 billion, led by Sequoia with participation from Andreessen Horowitz, Jane Street, Diffusion and SK Hynix (NASDAQ:SKHY).
The Bottom LineBurry’s been hammering the same point for months: Nvidia’s grip on AI chips isn’t as unshakable as Wall Street thinks. Etched just gave him a fresh talking point — a two-year-old startup that built its bench almost entirely out of Nvidia’s own engineers.
NVDA Stock Price Activity: Nvidia stock was down 2.24% at $219.97 at the time of publication Tuesday, according to Benzinga Pro.
Read Next
Image created using artificial intelligence via MidJourney.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Market News and Data brought to you by Benzinga APIs
, the AI chip powerhouse powering the next wave of computing, dropped approximately 2.2% to $220.08 Tuesday morning as rising Treasury yields and higher oil prices slammed the brakes on the broader semiconductor rally. The 30-year Treasury yield climbed to its highest level since 2007, while the Philadelphia Semiconductor Index fell roughly 3.7%, showing that even the biggest AI winners are not immune when investors suddenly demand a higher return.
The key point: Nvidia's business is still firing on all cylinders. The company's fiscal first-quarter results showed revenue exploding 85% year over year to $81.6 billion, with data-center revenue jumping 92% to $75.2 billion. Gross margin remained at a stunning 75%, proving Nvidia is still capturing an enormous share of the money pouring into AI infrastructure.
The GF Score™ tells the same story: Nvidia scores an elite 95/100, powered by exceptional profitability, explosive growth and strong financial strength. The weak spot is GF Value™, highlighting the biggest question hanging over the stock today — not whether Nvidia is a great company, but whether investors have already priced in too much future success.
That is the battle now. The market is no longer asking if AI demand exists. It is asking whether hundreds of billions of dollars in AI spending can generate returns large enough to justify Nvidia's premium valuation. Tuesday's selloff is not a crack in the AI story. It is a reminder that when expectations become massive, even the greatest companies must keep delivering something extraordinary.
Nvidia (NVDA -2.34%) invests in many promising growth companies, and one of its largest positions is in Space Exploration Technologies Corp, also known as SpaceX. When Nvidia recently filed its 13F holdings report, which identified its largest investments, SpaceX was near the top of the list, worth $21 billion as of the end of June. The only larger holding for Nvidia was in Intel, where its investment was worth close to $30 billion.
For Nvidia investors, that means they're getting indirect exposure to the top IPO of 2026 thus far. But will having so much exposure to SpaceX cause problems for the tech company later on, given how volatile the newly issued space stock has been since going public?
Image source: Getty Images.
SpaceX isn't the only volatile stock Nvidia has invested in Nvidia has invested in many growth stocks, which investors may see as potentially risky and volatile. This includes CoreWeave and Nebius Group, which trade at high valuations and are closely tied to the ongoing tech investments in artificial intelligence (AI). They've been volatile investments in the past and, like SpaceX, can swing wildly due to market- and industry-specific developments. Having positions in SpaceX and other volatile stocks may introduce volatility into Nvidia's earnings due to potential investment gains and losses.
In the tech company's most recent earnings results, which ended on April 26, the company reported other income totaling $15.9 billion. While that was lower than its operating profit of $53.5 billion, that still gave its bottom line a boost of about 30%. Nvidia notes that other income was primarily attributable to unrealized gains and losses on investments. With SpaceX stock struggling after June, however, Nvidia may end up incurring a loss from its investments when it reports its next round of earnings, which go up until the end of July. At the very least, however, it's not likely to experience a similar bump up from other income.
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Could this be a problem for Nvidia's stock? When a company reports earnings, it's often the adjusted numbers that investors and analysts focus on, which strip out unusual items and investment gains and losses that don't truly reflect how the core business is doing. For a company that still generates substantial earnings, Nvidia's exposure to SpaceX and other investments is unlikely to adversely affect the AI stock.
As long as Nvidia is generating strong growth and its guidance is promising, that should be enough to ensure that it rises higher. And right now, with investments in AI remaining robust, it's unlikely that trend will end just yet; Nvidia's stock may still have a lot of room to rise higher.
Nvidia (NVDA -2.34%) has been the AI stock to own over the past few years, but Advanced Micro Devices (AMD -4.27%) seems to have stolen its crown this year. So far, Nvidia has risen 20% in 2026, while AMD is up an impressive 140%. If you look back to the start of the AI race in 2023, Nvidia still holds the lead with a 1,440% gain to AMD's 695%, but both stocks have been excellent investments in recent years.
What's the best buy moving forward? In my view, there's one specific metric that vaults one in front of the other, and after you understand it, there will be no question as to which is the better buy.
Image source: The Motley Fool.
AMD has a lot of success priced into the stock Both of these are growing their top lines at incredible paces and doing quite well. Each company is benefiting from the AI race because they both make complete systems of graphics processing units (GPUs), central processing units (CPUs), software, and networking equipment. These solutions are deployed in mass quantities inside data centers, where they power AI training and inference. Whenever reports of AI companies spending hundreds of billions of dollars surface, expect Nvidia and AMD to be two of the biggest beneficiaries.
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However, these two aren't exactly on the same playing field.
Nvidia is more than six times larger than AMD, and it has built a significant lead because its GPUs were superior to AMD's at the start of the AI race. This allowed it to capture the lion's share of the early AI data center market, which made it difficult for its clients to switch to AMD's products once they eventually caught up in capabilities.
AMD Revenue (TTM) data by YCharts.
Nvidia's net income is essentially four times larger than AMD's revenue, showing just how much larger Nvidia is than AMD. Despite that, AMD is valued at a far higher level than Nvidia, and I think this is the primary reason why investors should buy Nvidia's stock over AMD's.
AMD PE Ratio (Forward) data by YCharts.
Nvidia is valued at nearly three times the level that Nvidia is. For the better part of the last few years, these two generally traded in the same valuation range, so this uncoupling raises a few red flags. The market is essentially saying that it prefers AMD's outlook to Nvidia's, which doesn't make sense considering that Wall Street analysts expect faster growth this year from Nvidia versus AMD. Because of that, I prefer Nvidia's stock, since it isn't nearly as pricey.
For AMD and Nvidia to be valued at the same level, AMD would need to nearly triple its earnings after this year's growth is priced in. That's a tall task, and with Nvidia continuing to dominate the AI game, I think it's an impossible one for AMD.
There is something unusual happening with NVIDIA Corp. (NASDAQ:NVDA): the company at the center of the artificial intelligence boom is now financing parts of the boom itself.
Nvidia has committed roughly $300 billion to AI ecosystem partners through equity investments, financing guarantees and other backstops.
• NVIDIA stock is trending lower. Why is NVDA stock trading lower?
That sounds alarming until you compare it with the cash Nvidia is expected to generate.
Bank of America analyst Vivek Arya estimates the company could produce about $470 billion in free cash flow over calendar 2026 and 2027.
That creates the central question for investors: Is Nvidia taking too much financial risk, or is Wall Street underestimating the value of controlling the entire AI ecosystem?
Bank of America thinks it is the latter.
The bank’s 12-month price target on Nvidia sits at $350, implying a 55% upside from Monday’s close.
Nvidia Is No Longer Just Selling ChipsThe market still largely views Nvidia as the dominant supplier of AI processors.
But its strategy is becoming much broader.
Nvidia is helping secure chips, data center land, electricity and the physical infrastructure needed to deploy them. This is particularly important for frontier AI companies whose balance sheets cannot support their explosive growth.
"NVDA is committed to the transformational nature of AI and to securing every input — chip supply, land, power, shell — especially for disruptive, non-investment-grade customers such as frontier labs and neo-clouds," Bank of America said.
That strategy carries an obvious risk.
If AI demand slows, Nvidia could face pressure not only on revenue growth, but also on investments tied to customers and infrastructure projects.
Yet there is another side to the equation.
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The $300 Billion Number Looks Worse Than It IsBank of America estimates that roughly $70 billion of Nvidia’s commitments are direct equity investments.
Another $230 billion consists of residual-value guarantees or financing backstops. These are not equivalent to Nvidia simply handing customers $230 billion in cash.
The distinction matters.
For the recently announced Ohio data center, Nvidia is backing up to $105 billion of financing for infrastructure leased by OpenAI.
Bank of America estimates that the initial 4.25-gigawatt site could represent roughly 1.5 million GPUs and generate $75 billion–$100 billion of free cash flow for Nvidia over the relevant product cycle.
The guarantee is capped at $105 billion.
That means the potential cash generation from the project could approach the size of the guarantee before considering future upgrades.
"GPU is fungible, protects residual value," BofA said.
In plain English, Nvidia’s chips can potentially be moved to another customer if a project fails.
That makes the financing risk different from a traditional corporate loan.
Wall Street May Be Pricing Nvidia Like a Riskier CompanyThis is where Bank of America’s valuation argument becomes striking.
Nvidia trades at about 18 times estimated calendar 2027 free cash flow and 15 times estimated calendar 2028 free cash flow.
The average for comparable AI semiconductor companies is roughly 38 times and 25 times, respectively.
Bank of America believes investors are effectively applying a heavy discount because Nvidia is using part of its cash to finance the ecosystem.
But even after applying a 50% haircut to that investment-related cash flow, the firm estimates Nvidia could be worth 50% more in calendar 2027 and 34% more in calendar 2028 under its conceptual valuation framework.
The Lever Management Could PullArya’s suggested remedy is not a product. It is buybacks.
Nvidia currently returns 50% of its free cash flow to shareholders; peers return 75% to 100%.
Raising that share, the note said, may be the most forceful answer to the earnings-quality concerns weighing on the multiple.
Bank of America reiterated Buy with a $350 price objective, built on 26 times its 2027 earnings estimate excluding cash.
Where The Street Already Sits on NVDAAccording to Benzinga analyst ratings, Nvidia holds a consensus Buy rating and an average price target of $312.81, about 37% above Monday’s $227.72.
Nvidia reports second-quarter results Aug. 26, and Bank of America expects revenue of $94 billion to $95 billion against a $91 billion guide.
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.
received a higher price target from GF Securities as the chipmaker prepares to report quarterly results, with analyst Jeff Pu maintaining a Buy rating and pointing to demand for its next-generation Vera Rubin platform.
Pu lifted his target to $345 from $308. He expects new orders and Nvidia's system design approach to support the product cycle, with additional demand potentially coming from cloud providers and newer AI infrastructure companies.
The analyst also sees Nvidia gaining ground against custom accelerator chips and rival platforms. Microsoft
MSFT +0.36% 96
, Amazon
AMZN +0.04% 93
, Alphabet's Google
GOOG +0.04% 96
, and Oracle
ORCL -1.57% 90
have increased demand for Vera Rubin, according to the note.
Pu said Nvidia could also benefit from higher activity at Anthropic and broader interest in open-weight AI models. The company is scheduled to release fiscal second-quarter results on Aug. 26.
Since the start of 2023, Nvidia (NVDA -2.32%) has given its shareholders a staggering 1,440% total return compared to a 113.2% total return for the S&P 500 (^GSPC -0.53%). As of market close on Aug. 14, Nvidia was the best-performing "Magnificent Seven" stock year to date and the only one outperforming the Nasdaq-100 -- putting the chipmaker on track to beat the S&P 500 for the fourth straight year.
Here's what investors need to know about Nvidia's latest collaboration with major financial institutions, the risks involved, and why the deals could help Nvidia remain a long-term compounder for years to come.
Image source: Nvidia.
Underwriting AI infrastructure Nvidia is now so massive that it takes considerable earnings growth to move the needle -- specifically from its data center segment, which made up 92% of revenue in the first quarter of its fiscal 2027. It is heavily reliant on a handful of customers -- such as hyperscalers and the leading developers of artificial intelligence (AI) models -- to drive its earnings growth. That concentration is a double-edged sword. It is benefiting Nvidia right now because its key customers' AI capital expenditures continue to climb. But its results could take a significant hit even if one or two of those customers pull back on spending.
To broaden its customer base, Nvidia signed memorandums of understanding with BlackRock, Blackstone, KKR, Apollo Global Management, Brookfield, and Goldman Sachs to pull together $500 billion in long-term capital to fund the build-out of AI infrastructure. In an Aug. 10 interview on CNBC, Nvidia founder and CEO Jensen Huang estimated that each gigawatt (GW) of AI compute will cost between $50 billion and $60 billion, meaning the consortium is supporting the build-out of 10 GW of AI compute on the high end.
It remains to be seen whether the memorandums of understanding will translate into real deals and how the money will be raised. But in the CNBC interview, the group of financial partners signaled ample demand in both public and private markets.
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The securitization of AI computing At first glance, $500 billion in AI capital investment appears to be a massive win for Nvidia. The GPU leader won't bear the credit risk of the investment; the financial institutions will. The plan is to securitize AI infrastructure assets, much like how pools of mortgage loans are securitized into mortgage-backed securities. Since the assets all fall under Nvidia's ecosystem, the company's track record and brand power reinforce the credibility of the loans.
The deal essentially places AI infrastructure in the same category as other critical assets, such as electrical transmission lines, bridges, and roads. Financial institutions will raise the capital to turn Nvidia's compute and full-stack AI infrastructure into an investable asset class, owned by public and private investors. Then, that compute can be sold to AI labs, AI start-ups, AI clouds, and other enterprises that need compute.
Of course, selling that compute means little if the customers' cash flows dry up. But Nvidia is confident in the profitability pathway for its existing and potential customers. Jensen Huang said the following in the Aug. 10 interview with CNBC:
I believe within months you're going to realize that these companies are extremely profitable. These are the fastest-growing technology companies in history, and the tokens they're generating are incredibly profitable.
Tokens are basic units of text and data that AI models process. Nvidia prides itself on producing hardware that processes tokens as quickly and cost-effectively as possible. Huang stressed that every company and industry will be impacted by the digitalization of intelligence through AI and that the system architecture of the AI compute deal is flexible. Meaning that if one customer needed to scale back their commitments, it would be easy for a new customer to step in -- regardless of the model -- and use that compute in a similar vein as electricity on the grid that can be used interchangeably.
The fungibility of Nvidia's AI compute is arguably the strongest competitive advantage of the deal.
"There will always be a customer for that computing platform," said Huang during the Aug. 10 CNBC interview. "And the reason for that is because, as you know, Nvidia's architecture is fairly universally adopted. It runs every AI model."
Nvidia has plenty of room to run Some investors may view the $500 billion AI financing news as a red flag because it resembles the kind of financial engineering that transformed a housing slowdown into a nationwide financial crisis in 2008. If public and private investors own securities tied to Nvidia AI infrastructure and demand for that infrastructure craters, those securities would lose value -- amplifying the impact of an AI slowdown.
There are plenty of unanswered questions around the structure of the financing deal. But I think the idea is absolutely brilliant for Nvidia.
If you've tuned in to Nvidia's major conferences (like GTC) or its recent earnings calls, you may have noticed an ongoing theme: Nvidia wants to expand beyond one-time hardware sales.
Nvidia is evolving into a product and service ecosystem rather than just a chip business. Its latest Vera Rubin rack-scale high-performance computing platform features GPUs, central processing units, and associated networking and interconnects. Its CUDA software stack is co-designed to work with Vera Rubin. The $500 billion deal helps solidify Nvidia as the most commonly used ecosystem for AI compute customers, which will depend on it to process tokens in the age of AI infrastructure. Token demand will increase in lockstep with the use of generative AI, AI agents, and physical AI (like self-driving cars and robotics) -- in turn benefiting Nvidia through an inferencing-as-a-service revenue stream.
The biggest risk to Nvidia's investment case is how it would endure a slowdown in spending on data center computing. And the best way to address that risk is for Nvidia to get more and more customers involved in its ecosystem, so they depend on its services and upgrade to its latest hardware when the cycle calls for it. It's basically the enterprise-scale version of what Apple does with its consumer electronics products and associated services -- like iCloud, Apple TV, and Apple Music.
Trading now at just 34.5 times earnings and 25.1 times forward earnings, Nvidia remains one of the best AI stocks for long-term investors to buy as the company continues to diversify its revenue streams beyond hyperscale hardware spending.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Nvidia (NVDA - Free Report) .
Nvidia currently has an average brokerage recommendation (ABR) of 1.15, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 48 brokerage firms. An ABR of 1.15 approximates between Strong Buy and Buy.
Of the 48 recommendations that derive the current ABR, 44 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 91.7% and 6.3% of all recommendations.
Brokerage Recommendation Trends for NVDA
Check price target & stock forecast for Nvidia here>>>
The ABR suggests buying Nvidia, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is NVDA a Good Investment?In terms of earnings estimate revisions for Nvidia, the Zacks Consensus Estimate for the current year has increased 0% over the past month to $9.09.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Nvidia. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Nvidia may serve as a useful guide for investors.
Buy NVDA. The selloff is driven by higher Treasury yields and a broad chip pullback, not a break in Nvidia’s AI demand. BofA’s view is that Nvidia’s frontier-AI commitments (supply, land, power, infrastructure) and GPU rental/compute scarcity keep growth durable, and the valuation gap vs its own FCF multiples supports buying weakness ahead of Aug 26.
Key Risk: AI capex slows faster than Nvidia’s commitments can be monetized, cutting rental rates and free-cash-flow growth.
Semis basket buy (memory/CPU laggards)
Buy the iShares Semiconductor ETF (SOXX) or VanEck Semiconductor ETF (SMH) selectively, using the broad weakness (WDC, Sandisk, Marvell, Seagate down 6–7%) as entry. If yields stabilize, the market’s “risk-off” move should mean-revert across semis, and Nvidia’s rebound narrative can pull the whole group higher.
Key Risk: Yields keep rising and the macro hit spreads into a sustained earnings downgrade cycle for semis.
Nvidia shares NVDA fell around 2% in early Tuesday trading as higher Treasury yields pressured semiconductor stocks and weighed on the broader market.
The decline came alongside a wider pullback across chip stocks.
Western Digital fell almost 7%, while Sandisk dropped more than 6%. Marvell Technology and Seagate Technology also fell more than 6%.
The S&P 500 declined 0.5%, while the Nasdaq Composite fell 1.1%. The Dow Jones Industrial Average was down 191 points, or 0.4%.
The 30-year Treasury yield climbed more than 1 basis point to 5.323%, after reaching its highest level since June 2007 on Monday.
Yields have risen as investors remain concerned about persistent inflation and elevated oil prices.
US crude rose on Monday and gained another 0.9% Tuesday to trade above $85 a barrel as negotiations between the US and Iran stalled.
Nvidia's Tuesday decline comes after a strong rebound in recent weeks.
Shares closed around $225 on Monday for a second consecutive session, a level not seen since mid-May.
The stock's recent advance has pushed its year-to-date gain above 16%, compared with gains of about 15% for the Nasdaq Composite and 13% for the S&P 500.
From the recent market bottom on July 29, Nvidia shares have gained about 15%, compared with a 1.5% advance for the iShares Semiconductor ETF and an almost 2% gain for the VanEck Semiconductor ETF.
Nvidia had trailed those semiconductor baskets for much of the year as investors shifted toward memory and CPU stocks and renewed questions emerged over the sustainability of the company's growth.
The recent rebound has coincided with a broader recovery in the AI infrastructure trade.
Nvidia's increased financial support for key customers is also looking less risky than initially feared, while a new financing initiative could make funding the broader AI buildout more attainable.
New details on revenue growth at OpenAI and Anthropic, both major Nvidia chip customers, have also supported expectations that the companies can continue spending on compute.
Nvidia is scheduled to report its fiscal 2027 second-quarter results on August 26.
BofA maintains bullish view on Nvidia stockBofA Securities reiterated its Buy rating and $350 price target on Nvidia following the company's $105 billion in commitments related to OpenAI.
BofA said after discussions with Nvidia senior management that the chipmaker remains committed to securing chip supply, land, power and infrastructure for frontier AI labs and so-called neo-clouds.
According to BofA, the strategy is intended to diversify Nvidia's customer base beyond public hyperscalers that are increasingly developing their own custom chips.
BofA cited solid GPU rental rates, compute scarcity and Nvidia's free cash flow generation as factors supporting the company's commitments.
The firm also highlighted risks if AI demand slows, which could pressure Nvidia's growth rate and balance sheet.
BofA expects Nvidia to provide more disclosure around its off-balance-sheet commitments when it reports earnings on August 26.
BofA said Nvidia trades at 18 times and 15 times calendar 2027 and 2028 enterprise value to free cash flow, respectively, compared with its blended valuation multiples of 36 times and 22.5 times.
The firm views that valuation gap as a compelling opportunity while maintaining its $350 price target.
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.
Shares of Nvidia (NVDA - Free Report) have gained 10.7% over the past four weeks to close the last trading session at $225.01, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $304.33 indicates a potential upside of 35.3%.
The average comprises 47 short-term price targets ranging from a low of $180.00 to a high of $500.00, with a standard deviation of $52.63. While the lowest estimate indicates a decline of 20% from the current price level, the most optimistic estimate points to a 122.2% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
However, an impressive consensus price target is not the only factor that indicates a potential upside in NVDA. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why NVDA Could Witness a Solid UpsideAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, one estimate has moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 0%.
Moreover, NVDA currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much NVDA could gain, the direction of price movement it implies does appear to be a good guide.
