Track market-moving stories before they get noisy

Fairbanks Capital Management Inc. bought a new stake in NVIDIA Corporation (NASDAQ:NVDA – Free Report) in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund bought 30,496 shares of the computer hardware maker’s stock, valued at approximately $5,319,000. NVIDIA accounts for 3.3% of Fairbanks Capital Management Inc.’s portfolio, making the stock its 11th biggest position.

Several other institutional investors and hedge funds have also modified their holdings of NVDA. State Street Corp grew its holdings in shares of NVIDIA by 1.2% during 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 purchasing an additional 11,451,386 shares in the last quarter. Geode Capital Management LLC raised its stake in NVIDIA by 0.6% in 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 purchasing an additional 3,383,441 shares in the last quarter. Norges Bank acquired a new position in NVIDIA in the fourth quarter valued at about $62,244,133,000. Bank of America Corp DE lifted its position in NVIDIA by 1.5% during the fourth quarter. Bank of America Corp DE now owns 187,181,484 shares of the computer hardware maker’s stock worth $34,909,347,000 after purchasing an additional 2,849,678 shares during the period. Finally, Legal & General Group Plc lifted its position in NVIDIA by 1.5% during 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. 65.27% of the stock is currently owned by institutional investors and hedge funds.

NVIDIA News Summary Here are the key news stories impacting NVIDIA this week:

Positive Sentiment: Cloud providers are accelerating spending on AI infrastructure, particularly NVIDIA’s liquid-cooled Blackwell systems. This reinforced expectations that demand for NVIDIA’s data-center GPUs remains well ahead of supply ahead of the company’s next earnings report. Nvidia stock climbs as AI infrastructure demand boosts investor sentiment Positive Sentiment: Analyst and earnings-preview coverage remains bullish. NVIDIA has a strong history of beating estimates, while reported first-quarter revenue of $81.6 billion and data-center revenue of $75.2 billion showed exceptional year-over-year growth. Forecasts also point to continued momentum from the Blackwell and upcoming Vera Rubin platforms. Will Nvidia beat estimates again Positive Sentiment: A strong Nasdaq and semiconductor-sector rebound lifted sentiment across chip stocks, providing an additional market-wide catalyst for NVDA. Some analysts argue that NVIDIA’s valuation remains reasonable relative to its growth and potential future sales. Nvidia beats stock market upswing Neutral Sentiment: NVIDIA is using financial guarantees, equity investments, and revenue-sharing arrangements to help customers build AI data centers and secure demand for Vera Rubin. The strategy could strengthen its ecosystem and market share, but it also increases exposure to customer defaults, cash outflows, and weaker AI-investment returns. Nvidia financial engineering and Vera Rubin Negative Sentiment: Risk-focused coverage highlights concerns about circular financing, rising AI infrastructure costs, and whether hyperscaler spending can remain economically justified. NVIDIA has also traded sideways for several months, suggesting investors may require stronger earnings or guidance to sustain a breakout. Nvidia stock remains in a $200 rut Negative Sentiment: Longer-term competitive risks are emerging as custom AI chips gain traction and AI-generated software could weaken CUDA’s traditional competitive moat, particularly as workloads shift from training toward inference. AI threats to Nvidia CUDA Wall Street Analyst Weigh In Several research firms have commented on NVDA. Evercore reissued an “outperform” rating and issued a $413.00 target price (up from $352.00) on shares of NVIDIA in a report on Thursday, May 21st. UBS Group boosted their target price on shares of NVIDIA from $275.00 to $280.00 and gave the stock a “buy” rating in a research note on Thursday, May 21st. Tigress Financial reissued a “strong-buy” rating and set a $425.00 price objective (up from $360.00) on shares of NVIDIA in a report on Wednesday, May 27th. Royal Bank Of Canada set a $280.00 price objective on NVIDIA in a research report on Thursday, May 21st. Finally, Morgan Stanley set a $288.00 target price on NVIDIA and gave the stock an “overweight” rating in a report on Thursday, May 21st. Three analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, NVIDIA has a consensus rating of “Buy” and a consensus price target of $304.26.

View Our Latest Report on NVDA

NVIDIA Trading Up 2.9% Shares of NVDA stock opened at $206.64 on Tuesday. The stock has a market cap of $5.00 trillion, a price-to-earnings ratio of 31.64, a PEG ratio of 0.39 and a beta of 2.23. The stock has a 50-day moving average of $205.24 and a 200-day moving average of $196.34. The company has a current ratio of 3.44, a quick ratio of 2.85 and a debt-to-equity ratio of 0.04. NVIDIA Corporation has a 1-year low of $164.07 and a 1-year high of $236.54.

NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its quarterly earnings data 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 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 analyst estimates of $78.42 billion. During the same period in the previous year, the firm earned $0.81 earnings per share. The firm’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 year.

NVIDIA Increases Dividend The company also recently announced a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Thursday, June 4th were paid a dividend of $0.25 per share. This is a boost from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend was Thursday, June 4th. NVIDIA’s payout ratio is 15.31%.

NVIDIA declared that its board has initiated a share repurchase program on Wednesday, May 20th that allows the company to buyback $80.00 billion in outstanding shares. This buyback authorization allows the computer hardware maker to repurchase up to 1.5% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board believes its shares are undervalued.

Insider Buying and Selling In other NVIDIA news, Director John Dabiri sold 625 shares of the 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 sale, the director directly owned 14,163 shares in the company, valued at approximately $3,030,882. This trade represents a 4.23% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 885,000 shares of the stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $210.17, for a total value of $186,000,450.00. Following the sale, the director owned 5,207,271 shares of the company’s stock, valued at approximately $1,094,412,146.07. The trade was a 14.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,901,125 shares of company stock valued at $410,583,015 over the last quarter. Insiders own 3.94% of the company’s stock.

About NVIDIA (Free Report)

NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.

The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.

Further Reading Five stocks we like better than NVIDIA SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Why Rare Earth Processing Could Be the Real 2027 Opportunity The S&P 493 Are Staging a Comeback—This Value ETF Offers Broad Exposure TSMC Insiders Are Buying the Pullback—But Is the Signal as Bullish as It Looks? 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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Jim Cramer keeps telling viewers that NVIDIA chips hold their value because they are scarce. Now NVIDIA management has put a number behind that argument, and it is one most retail investors have probably never seen quoted.

The Number: $1 Trillion On the May 20, 2026 earnings call, NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) CFO Colette Kress told investors the company has “full confidence in $1 trillion in Blackwell and Rubin revenue we foresee from 2025 through calendar 2027,” fueled by data center demand. That is forward revenue visibility, not booked sales, and it is the clearest quantification of chip scarcity NVIDIA has ever put in writing. To back that visibility with physical supply, the company disclosed it had $119.0 billion in total supply-related commitments as of the Q1 FY2027 filing, and Kress said on the call that the tally inclusive of inventory purchases and prepaids had climbed to $145 billion.

What It Means A trillion dollars of demand visibility across two product cycles is a backlog statement dressed up as a forecast. But it is also a scarcity statement. NVIDIA is telling suppliers, customers, and shareholders that it has more orders than it can build. CEO Jensen Huang made the constraint explicit: “My sense is that we’ll be supply constrained throughout the entire life of Vera Rubin.”

The pricing evidence supports it. H100 rental prices are up 20% year to date, and A100 cloud pricing is up nearly 15%. Prior-generation silicon is appreciating, which only happens when new supply cannot catch demand.

That backlog is already showing up in the P&L. Q1 FY2027 revenue landed at $81.61 billion, up 85.23% year over year, beating consensus by 3.16%. Data Center revenue reached $75.25 billion, growing 92% YoY, with networking alone at $14.8 billion, up 199%. Non-GAAP gross margin expanded to 75.0%, versus 60.8% a year earlier. Companies that lack pricing power do not print massive gross margins on $81.61 billion in a single quarter.

Market Reaction Shares closed at $206.64 on August 3, 2026, versus around $223 at the Q1 FY27 filing on May 20, 2026. The custom period from filing date through August 3 shows a 7.43% decline. Momentum has turned recently: the stock is up 7.4% over the past week and up 8.6% over the past month, with year-to-date performance at +13.4%.

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Bull Case The $1 trillion figure reframes the data center debate. Detractors have argued that hyperscaler capex will normalize and that AI infrastructure depreciates faster than the market assumes. NVIDIA’s counter is that analysts now forecast hyperscale capex to exceed $1 trillion by 2027 and that AI infrastructure spending is tracking toward $3 trillion to $4 trillion annually by the end of this decade. Against that, the Blackwell and Rubin visibility captures only two product generations and one platform vendor.

Customer breadth reinforces the backlog. Kress said the number of partner data centers exceeding 10MW has nearly doubled in a year, now surpassing 80 sites, and NVIDIA infrastructure is deployed across nearly 40 countries. Sovereign revenue is up more than 80% year over year. Vera CPU alone opens what Huang called a $200 billion TAM with nearly $20 billion in CPU revenue visibility this year.

Capital return signals confidence. The board authorized an additional $80.0 billion in share repurchases, and increased the quarterly dividend from $0.01 to $0.25. Free cash flow of $48.55 billion in a single quarter, compared with $26.1 billion in the year-ago period, bankrolls all of it without touching the balance sheet. And the stock trades at roughly 23 times forward earnings, a multiple that has to be reconciled with 210.63% year-over-year net income growth.

Bottom Line The $1 trillion Blackwell and Rubin revenue forecast is a forward-looking statement, not a reported figure, and long-term holders should treat it that way. It is also the cleanest number NVIDIA has ever offered to quantify what Cramer sees brewing on the surface: chips that hold their value because there are not enough of them. Q2 FY2027 guidance calls for revenue of $91.0 billion, plus or minus 2%, with gross margin held at 75.0%. If the company delivers, the trillion-dollar figure stops sounding like a slogan and starts looking like a roadmap.

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Contact [email protected] for any questions or corrections.

Jensen Huang has become a vocal champion of open-weight artificial intelligence (AI) models, the kind anyone can download, customize, and run themselves. He even organized a letter urging Washington not to restrict them, one that quickly gathered dozens of corporate signatories, including OpenAI and Alphabet.

It sounds like a principled stand for open technology. But for Nvidia (NVDA +2.93%), it is also a shrewd business move, one aimed squarely at expanding the company's total addressable market.

Nvidia CEO Jensen Huang. Image source: Nvidia.

Why open models mean more Nvidia chips Here is the logic. Closed AI models keep development bottled up inside a handful of well-funded labs. Open-weight models blow that open, letting millions of companies, start-ups, researchers, and even entire countries build and run their own AI. And every one of those deployments needs computing power, the vast majority of which runs on Nvidia's chips.

Huang has pointed out that roughly 1-in-4 AI tokens generated today already come from an open model, and he wants that share to keep climbing. The more places AI takes root, the more Nvidia hardware the world needs.

Nvidia is not just cheering from the sidelines, either. It builds its own open models, releasing its Nemotron family free to the public along with the training recipes and code. Giving away powerful models seeds demand for the one thing Nvidia actually sells: the silicon to run them.

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The strategic logic Step back, and the strategy is elegant. In my opinion, Nvidia does not care which AI model wins, as long as the world keeps building more of them. Closed models concentrate demand; open models democratize it across the entire economy. By pushing to make AI universal and freely available, Jensen Huang is quietly ensuring that the whole ecosystem, from a solo developer to a national government, runs on Nvidia's platform. His idealism and his order book point in the same direction.

The strategy is not without danger. Open models also let rivals, including China, build competitive AI cheaply, and the gap between the best American and Chinese open models is narrowing. That has stirred real concern about U.S. technological leadership. There is also a subtler risk: Hyper-efficient open models could, in theory, accomplish more with less computing power, softening the very demand Nvidia is counting on.

The takeaway for investors I read Huang's open-weight crusade as a smart strategy wrapped in principle. It is a bet that making AI universal grows the pie for Nvidia far faster than it feeds its rivals. For investors, it signals a company playing the long game to keep the entire AI economy running on its chips, even if the open-model genie cuts both ways.

The artificial intelligence (AI) revolution has so far defied the bears' prophecies of doom, and there are reasons to believe it will continue to do so. We may be entering the age of AI agents, or self-directed systems that can autonomously execute tasks, work toward goals, and help corporations achieve significant productivity gains. The agentic AI boom could catapult the semiconductor industry to new heights. Nvidia's (NVDA +2.93%) CEO, Jensen Huang, has a lot to say on the topic. After predicting in a recent Bloomberg interview that we will eventually have billions of AI agents, here's what he said about how big the industry needs to be to support that agentic AI explosion:

My guess is the semiconductor industry will probably have to be 10 times larger than it is today over the next decade or so.

The industry was valued at roughly $791.7 billion last year, according to some estimates, so that means Huang believes it could be worth $7.9 trillion in a decade. As he said, that's a mere guess, but the general sentiment is that the industry will need to expand rapidly over the next 10 years as agentic AI takes over. Several companies could capitalize on this and deliver strong returns. Here are two stocks to consider to avoid getting left behind: Nvidia itself and Micron Technology (MU +0.79%).

Image source: Nvidia Corporation.

Nvidia remains the undisputed leader in the GPU (Graphics Processing Unit) market, and the company's financial results and guidance suggest sustained demand for its products. In the first quarter of its fiscal year 2027, ended April 26, Nvidia's revenue jumped by 85% year over year to $81.6 billion. Gross margins increased to 74.9%, up from 60.5% in the comparable period of the previous fiscal year. Nvidia's adjusted earnings per share (EPS) were $1.87, up 140% year over year.

The company famously projected $1 trillion in purchase orders for its Blackwell and Vera Rubin (which was released this year) through 2027. Nvidia's new Vera Rubin architecture is particularly important, since it includes the stand-alone Vera CPU (Central Processing Unit).

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Agentic AI systems run on CPUs, so there should be sustained demand in that corner of the industry as AI agents become increasingly popular. Nvidia projected $20 billion in stand-alone CPU revenue through the end of 2026, and sees a $200 billion addressable market in that niche alone. That highlights the fact that Nvidia is no longer just a GPU company. The semiconductor specialist builds not just the chips, but also the systems, software, and networking that power AI.

That grants Nvidia strong prospects as the industry marches forward, and the company doesn't seem too expensive at current levels. Nvidia is trading at 22.9x forward earnings, versus an average of 20x for information technology stocks. That valuation is fair, considering Nvidia's position in the industry.

2. Micron Technology Micron makes memory and storage chips used in everything from smartphones to data centers. The company's data center business has been its biggest growth driver in recent quarters, as the memory chip shortage has supported sustained demand for its hardware and given it significant pricing power. Micron's financial results have exploded as a result.

In the third quarter of its fiscal year 2026, ended on May 28, Micron's revenue was $41.46 billion, growing by almost 346% year over year. The company's margins improved significantly, as did the bottom line. Micron's adjusted EPS of $25.11 was about 1215% higher than the year-ago period.

Meanwhile, one of the company's biggest competitors, Samsung Electronics, expects the memory chip shortage to last at least until 2028. And beyond that, if Huang's predictions about the semiconductor industry's direction over the next decade are even remotely correct, demand for Micron's products should remain healthy over this period. The market isn't convinced, though.

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The stock is experiencing a pullback, with shares down 15% over the past month as many investors take some profits, fearing its amazing run won't last much longer. But as a counterpoint, Micron is trading at just 5.3x forward earnings, which seems like a bargain given how quickly revenue and earnings are growing. Further, the company has signed several long-term supply agreements that somewhat protect it against a sharp decline in revenue and earnings if demand for its products slows.

What does all this mean for investors? The tech stock could deliver outstanding returns over the long run if the AI industry maintains its momentum or the memory chip shortage persists. Investors who believe either outcome is likely should consider buying Micron's shares on the dip.

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SummaryNVIDIA remains dominant in AI infrastructure, with Q1 FY2027 data center revenue reaching $75 billion, up 92% year over year. Investor focus has shifted from AI spending growth toward monetization, infrastructure returns, and sustainability of elevated expectations. Leopold Aschenbrenner’s positioning highlights AI bottlenecks like power, memory, and infrastructure as potential higher-return opportunities. NVDA's valuation remains supported by growth and margins, but earnings execution, Blackwell and Rubin ramps must remain exceptional. your_photo/iStock via Getty Images

It is safe to say that Nvidia (NVDA) continues dominating in the construction of AI infrastructure, yet there has been a shift in perception of this trend from investors' side. Indeed, Nvidia still delivers

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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.

Posted by Defense World Staff on Aug 3rd, 2026

Barometer Capital Management Inc. grew its position in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 35.5% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 35,500 shares of the computer hardware maker’s stock after acquiring an additional 9,300 shares during the period. NVIDIA comprises 2.5% of Barometer Capital Management Inc.’s portfolio, making the stock its 13th largest holding. Barometer Capital Management Inc.’s holdings in NVIDIA were worth $6,191,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also made changes to their positions in the company. Lifetime Wealth Management P.C. purchased a new position in shares of NVIDIA during the 4th quarter worth approximately $26,000. Longview Financial Advisors Inc. acquired a new stake in shares of NVIDIA in the 1st quarter valued at approximately $27,000. Longfellow Investment Management Co. LLC boosted its stake in shares of NVIDIA by 47.9% in the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock valued at $33,000 after buying an additional 67 shares in the last quarter. Spurstone Advisory Services LLC purchased a new stake in shares of NVIDIA in the second quarter valued at approximately $40,000. Finally, Inspire Investing LLC acquired a new position in NVIDIA during the fourth quarter worth $44,000. 65.27% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes Several research analysts have issued reports on the company. Citigroup initiated coverage on NVIDIA in a research report on Wednesday, April 15th. They issued a “buy” rating for the company. Citic Securities boosted their target price on shares of NVIDIA from $242.00 to $315.00 and gave the stock a “buy” rating in a research report on Friday, May 22nd. Wells Fargo & Company reaffirmed an “overweight” rating and set a $315.00 price target (up from $265.00) on shares of NVIDIA in a research note on Tuesday, May 12th. Wolfe Research restated an “outperform” rating and set a $275.00 target price on shares of NVIDIA in a research report on Thursday, May 21st. Finally, Susquehanna reaffirmed a “positive” rating and issued a $275.00 target price (up from $250.00) on shares of NVIDIA in a report on Tuesday, May 12th. Three research analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus price target of $304.26.

Check Out Our Latest Stock Analysis on NVIDIA

NVIDIA Stock Performance NASDAQ:NVDA opened at $200.75 on Monday. 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 company has a market capitalization of $4.86 trillion, a P/E ratio of 30.74, a price-to-earnings-growth ratio of 0.39 and a beta of 2.23. The firm has a 50-day moving average price of $205.41 and a two-hundred day moving average price of $196.20. NVIDIA Corporation has a twelve month low of $164.07 and a twelve month high of $236.54.

NVIDIA (NASDAQ:NVDA – Get Free Report) last announced its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.76 by $0.11. The company had revenue of $81.61 billion for the quarter, compared to the consensus estimate of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The company’s revenue for the quarter was up 85.2% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.81 earnings per share. As a group, research analysts expect that NVIDIA Corporation will post 8.79 earnings per share for the current fiscal year.

NVIDIA Increases Dividend The business also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Thursday, June 4th were given a dividend of $0.25 per share. The ex-dividend date was Thursday, June 4th. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. This is an increase from NVIDIA’s previous quarterly dividend of $0.01. NVIDIA’s payout ratio is presently 15.31%.

NVIDIA declared that its Board of Directors has authorized a stock repurchase plan on Wednesday, May 20th that permits the company to repurchase $80.00 billion in shares. This repurchase authorization permits the computer hardware maker to buy up to 1.5% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s management believes its stock is undervalued.

Key Stories Impacting NVIDIA Here are the key news stories impacting NVIDIA this week:

Positive Sentiment: Amazon supports demand outlook: Amazon raised its capital-expenditure forecast and downplayed competition between its custom AI chips and NVIDIA’s processors. The update reassured investors that hyperscaler spending remains a significant growth driver for NVIDIA. Nvidia Stock Rises. Thank Amazon. Positive Sentiment: Additional large-scale chip demand: Chinese AI company Moonshot reportedly has an Alibaba computing agreement involving approximately 20,000 NVIDIA chips. Although the arrangement is indirect, it highlights continued demand for NVIDIA’s accelerators across AI platforms. Moonshot has Nvidia chip cluster from Alibaba computing deal Positive Sentiment: Sector-wide investor support: Semiconductor ETFs attracted substantial new money as chip stocks rallied following strong technology earnings, providing a favorable backdrop for NVIDIA. Analysts also remain broadly bullish, with reported median price targets well above the current trading level and positive earnings-estimate revisions. Semiconductor ETFs Draw Cash This Week as Chip Stocks Rally Neutral Sentiment: Upcoming earnings catalyst: NVIDIA will report fiscal second-quarter 2027 results on August 26. Investors will focus on revenue growth, forward guidance and whether hyperscaler AI spending is translating into sustained orders. The company’s latest reported quarter showed $81.6 billion in revenue, up 85% year over year, and earnings above consensus. Negative Sentiment: Financing concerns remain: Investors continue to debate whether AI infrastructure expansion relies too heavily on leveraged or “circular” financing arrangements. Credit-market hedging activity and discussion of a potential financing backstop tied to an OpenAI data-center project could limit valuation expansion. NVIDIA Stock Is Still Up, But $250 Billion AI Risk Has Spooked The Debt Market Negative Sentiment: Bearish positioning and selling: Investor Michael Burry reportedly expanded bearish bets against NVIDIA, while recent insider and institutional selling adds a secondary source of caution. These transactions do not necessarily indicate deteriorating fundamentals but may contribute to volatility. Insider Activity at NVIDIA In other NVIDIA news, Director Mark A. Stevens sold 885,000 shares of the 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 sale, the director 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. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Stephen C. Neal sold 15,500 shares of the firm’s stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total value of $3,343,815.00. Following the transaction, 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 disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 1,901,125 shares of company stock valued at $410,583,015. 3.94% of the stock is 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.

Recommended Stories Five stocks we like better than NVIDIA 3 Fixed-Income ETFs Show Why Yield Is Only Part of the Income Story AbbVie Quietly Solved Its Biggest Problem—Now What? Rio Tinto’s Results Make the Case for Looking Beyond Tech in the AI Trade Strategy’s Structural Strength: Hidden in a $8 Billion Illusion 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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Posted by Defense World Staff on Aug 3rd, 2026

CacheTech Inc. boosted its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 10.7% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 51,649 shares of the computer hardware maker’s stock after purchasing an additional 5,009 shares during the quarter. NVIDIA comprises 1.7% of CacheTech Inc.’s portfolio, making the stock its 14th biggest holding. CacheTech Inc.’s holdings in NVIDIA were worth $9,008,000 as of its most recent SEC filing.

Other large investors also recently added to or reduced their stakes in the company. Lifetime Wealth Management P.C. bought a new position in shares of NVIDIA during the 4th quarter valued at about $26,000. Longview Financial Advisors Inc. purchased a new position in shares of NVIDIA during the first quarter valued at about $27,000. Longfellow Investment Management Co. LLC increased its holdings in shares of NVIDIA by 47.9% in the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock worth $33,000 after purchasing an additional 67 shares during the last quarter. Spurstone Advisory Services LLC purchased a new stake in shares of NVIDIA in the second quarter worth about $40,000. Finally, Inspire Investing LLC purchased a new stake in shares of NVIDIA in the fourth quarter worth about $44,000. 65.27% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In Several equities analysts have weighed in on NVDA shares. New Street Research cut their price target on NVIDIA from $343.00 to $340.00 in a report on Thursday, May 21st. Wells Fargo & Company reiterated an “overweight” rating and set a $315.00 target price (up from $265.00) on shares of NVIDIA in a research report on Tuesday, May 12th. Jefferies Financial Group reissued a “buy” rating and issued a $300.00 target price (up from $275.00) on shares of NVIDIA in a report on Thursday, May 21st. China Renaissance began coverage on shares of NVIDIA in a research report on Friday, June 5th. They issued a “buy” rating and a $319.00 price target on the stock. Finally, Rothschild & Co Redburn upped their price target on shares of NVIDIA from $280.00 to $300.00 and gave the company a “buy” rating in a research note on Tuesday, May 26th. Three analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and a consensus target price of $304.26.

View Our Latest Stock Report on NVDA

NVIDIA Price Performance NVIDIA stock opened at $200.75 on Monday. NVIDIA Corporation has a 12-month low of $164.07 and a 12-month high of $236.54. 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 firm has a 50-day moving average price of $205.41 and a 200-day moving average price of $196.20. The firm has a market capitalization of $4.86 trillion, a PE ratio of 30.74, a price-to-earnings-growth ratio of 0.39 and a beta of 2.23.

NVIDIA (NASDAQ:NVDA – Get Free Report) last issued its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, beating the consensus estimate of $1.76 by $0.11. The company had revenue of $81.61 billion for the quarter, compared to the consensus estimate of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The firm’s revenue was up 85.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.81 EPS. As a group, equities research analysts forecast that NVIDIA Corporation will post 8.79 EPS for the current year.

NVIDIA Increases Dividend The firm also recently declared a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Thursday, June 4th were issued a $0.25 dividend. The ex-dividend date was Thursday, June 4th. This is a positive change from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. NVIDIA’s dividend payout ratio (DPR) is currently 15.31%.

NVIDIA announced that its board has initiated a stock repurchase plan on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in shares. This repurchase authorization authorizes the computer hardware maker to repurchase up to 1.5% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s board of directors believes its shares are undervalued.

Insider Transactions at NVIDIA In other NVIDIA news, Director John Dabiri sold 625 shares of the stock in a transaction on Wednesday, May 27th. The stock was sold at an average price of $214.00, for a total value of $133,750.00. Following the sale, the director owned 14,163 shares in the company, valued at $3,030,882. This trade represents a 4.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen C. Neal sold 15,500 shares of NVIDIA stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total value of $3,343,815.00. Following the sale, the director owned 116,135 shares of the company’s stock, valued at approximately $25,053,803.55. This trade represents a 11.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 1,901,125 shares of company stock worth $410,583,015. 3.94% of the stock is currently owned by company insiders.

Key NVIDIA News Here are the key news stories impacting NVIDIA this week:

Positive Sentiment: Amazon supports demand outlook: Amazon raised its capital-expenditure forecast and downplayed competition between its custom AI chips and NVIDIA’s processors. The update reassured investors that hyperscaler spending remains a significant growth driver for NVIDIA. Nvidia Stock Rises. Thank Amazon. Positive Sentiment: Additional large-scale chip demand: Chinese AI company Moonshot reportedly has an Alibaba computing agreement involving approximately 20,000 NVIDIA chips. Although the arrangement is indirect, it highlights continued demand for NVIDIA’s accelerators across AI platforms. Moonshot has Nvidia chip cluster from Alibaba computing deal Positive Sentiment: Sector-wide investor support: Semiconductor ETFs attracted substantial new money as chip stocks rallied following strong technology earnings, providing a favorable backdrop for NVIDIA. Analysts also remain broadly bullish, with reported median price targets well above the current trading level and positive earnings-estimate revisions. Semiconductor ETFs Draw Cash This Week as Chip Stocks Rally Neutral Sentiment: Upcoming earnings catalyst: NVIDIA will report fiscal second-quarter 2027 results on August 26. Investors will focus on revenue growth, forward guidance and whether hyperscaler AI spending is translating into sustained orders. The company’s latest reported quarter showed $81.6 billion in revenue, up 85% year over year, and earnings above consensus. Negative Sentiment: Financing concerns remain: Investors continue to debate whether AI infrastructure expansion relies too heavily on leveraged or “circular” financing arrangements. Credit-market hedging activity and discussion of a potential financing backstop tied to an OpenAI data-center project could limit valuation expansion. NVIDIA Stock Is Still Up, But $250 Billion AI Risk Has Spooked The Debt Market Negative Sentiment: Bearish positioning and selling: Investor Michael Burry reportedly expanded bearish bets against NVIDIA, while recent insider and institutional selling adds a secondary source of caution. These transactions do not necessarily indicate deteriorating fundamentals but may contribute to volatility. 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.

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« PREVIOUS HEADLINEBellwether Advisors LLC Cuts Stake in NVIDIA Corporation $NVDA

Nvidia stock NASDAQ:NVDA closed at $200.75 on Friday, rising 2.9% as strong cloud results from Microsoft and Amazon revived confidence in artificial-intelligence infrastructure spending.

Yet another, less visible part of the chipmaker’s growth strategy is emerging far from the data centres that dominate Wall Street’s attention.

Nvidia has joined CuspAI’s new AI Materials Foundry, a global network seeking to combine generative AI, accelerated simulations, scientific data and laboratory testing to discover materials for semiconductors, energy and advanced manufacturing.

The initiative is unlikely to change Nvidia’s earnings soon, but could extend the company’s reach into the scientific tools used to design the physical foundations of future technology.

CuspAI launched the foundry alongside a $450 million Series B fundraising that valued the Cambridge-based company at $2.6 billion.

More than 45 founding partners include Nvidia, Meta, Samsung Electronics, Applied Materials, Hyundai Motor Group, Tokyo Electron and Lam Research.

The group aims to shorten a materials-development process that can take years.

CuspAI’s approach covers generating candidate materials, simulating their properties, planning synthesis, validating results in laboratories and eventually preparing successful compounds for production.

Nvidia’s role is strategically important because those simulations demand substantial computing power.

Its ALCHEMI platform provides GPU-accelerated microservices and software tools for chemistry and materials research.

Nvidia says its batched geometry-relaxation technology can accelerate certain material-stability simulations by as much as 100 times.

The immediate stock argument is not that CuspAI will suddenly become a major customer. No expected revenue or purchase commitment from the partnership has been announced.

The opportunity is that materials discovery could become another specialised workload tied to Nvidia processors, CUDA-X software and cloud infrastructure.

Wall Street’s Nvidia thesis remains firmly elsewhereAnalysts’ bullish Nvidia calls still rest on established strengths rather than the materials alliance.

Bank of America analyst Vivek Arya said investors were overlooking an “enhanced” buying opportunity.

Arya argued that concerns about rising memory costs and competition from custom chips underestimated Nvidia’s pricing power, scale and supply-chain commitments.

KeyBanc analyst John Vinh raised his price target to $330 from $310 and maintained an Outperform rating. His confidence reflects the competitive barriers created by Nvidia’s hardware and CUDA software ecosystem.

ALCHEMI fits that broader logic as each specialist workload added to the platform may make Nvidia harder to replace.

Bernstein analyst Stacy Rasgon also maintained a Buy rating and $315 target despite concerns about Nvidia’s increasingly interconnected AI deals.

Also read: Nvidia, Alphabet among 5 stocks that fit Jim Cramer’s favourite dip-buying rule

AI-generated materials must still survive physical testing, regulatory reviews and mass-production requirements.

Moving from a promising simulation to a commercially useful semiconductor material could take years, and many candidates will fail.

There is also a broader risk as scientific computing will matter less to Nvidia shares if spending by its largest customers slows.

Jim Paulsen warned that flat or declining US core capital spending could force a “major readjustment” among investors committed to the AI-spending story, Business Insider reported.

Microsoft and Amazon offered a more encouraging signal as their latest cloud growth showed that heavy AI investment is producing revenue, supporting continued infrastructure demand.

Investors have long been bullish on Nvidia (NVDA +2.93%) for many reasons, but one that may not get a lot of direct attention is its backlog. Amid the massive demand for its AI accelerators, it accumulated a backlog of $500 billion in combined bookings for 2025 and 2026. Also, when CEO Jensen Huang was in Seoul in June, he stated that we are at the beginning of the AI boom, even as Nvidia stock has made massive gains over the last four years.

However, semiconductor stocks, including the chip giant, have pulled back in recent trading sessions as concerns about high capital expenditures (capex) and circular financing have given investors pause. Despite those concerns, investors should consider using this pullback to add shares. Here's why.

Image source: The Motley Fool.

The state of Nvidia Admittedly, the uncertainty surrounding Nvidia is understandable. The estimated $725 billion in planned capex by hyperscalers could raise doubts about access to credit. Moreover, Nvidia is an investor in many of its customers, leading to questions about whether the $500 billion is a true reflection of the backlog.

Nonetheless, other factors cast doubt as to whether Nvidia is really in trouble. Huang added that investors should be "very happy" since they can "buy at a discount." He appears to have a point. Its stock sells at a P/E ratio of 30, barely above the S&P 500 average of 29.

Despite that valuation and Huang's assertion about the AI boom, Nvidia is not trading at a premium. In the first quarter of fiscal 2027 (ended April 26), its revenue of $81.6 billion rose by 85% from year-ago levels. That led to $58.3 billion in net income, a 211% annual increase. Also, since revenue surged 65% higher in fiscal 2026, its quarterly growth is more than a one-time event.

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Considering Nvidia's growth rate, it likely does not need to artificially inflate its growth. Additionally, the "circular financing" is a reflection of its AI needs.

For example, it is an investor in the neocloud company CoreWeave, which is also a customer. In a technical sense, Nvidia does not "need" CoreWeave to grow.

Still, CoreWeave gives Nvidia a platform where it can more quickly deploy and test its hardware. Also, since the neocloud industry is new, the leading companies do not have the backing to scale quickly on their own.

With Nvidia's support, they can build faster, facilitating faster adoption of its technology. This means that such investments could pay off for Nvidia longer-term and, ultimately, ease the concerns of investors.

Moving forward with Nvidia Despite doubts, Nvidia's backlog is a reason to buy its stock.

Indeed, concerns about credit accessibility could slow growth and discourage some investors from buying its stock. Also, its so-called "circular financing" makes it look like Nvidia has to buy its growth.

However, the stock's P/E ratio seems to confirm that it sells at a discount. Also, it appears investments like its position in CoreWeave contribute to the improvement and rapid deployment of its hardware.

Thus, despite the concerns, investors should continue to believe in Nvidia's growth. Considering its comparatively low P/E ratio, investors have good reason to look past the uncertainty and take a position in the chip stock.

During the company's GTC conference in March, Nvidia (NVDA +2.93%) CEO Jensen Huang expressed confidence in the company's opportunity in the artificial intelligence (AI) chip market.

"We saw $500 billion of very high confidence demand and purchase orders for Blackwell and Rubin through 2026," Huang said. "I'm here to tell you that right now where I stand ... I see through 2027 at least $1 trillion."

Recent results indicate that Nvidia is very much on pace to hit that target -- but some risks could derail its momentum.

Jensen Huang speaking at a conference. Image source: Nvidia.

Nvidia's growth path Over the past year, Nvidia's data center revenue made up roughly 90% of its total revenue, and its Blackwell chips have been the main engine behind that growth. In the fiscal first quarter of 2027 (which ends in January), data center revenue grew 92% year over year to $75 billion.

In fiscal 2026, which mostly aligns with calendar 2025, Nvidia generated $216 billion in total revenue, with nearly $194 billion from data centers. Wall Street's consensus estimate currently forecasts total revenue of $394 billion this year and $561 billion next year -- about $1.17 trillion in cumulative total revenue since last year.

If Nvidia's data center segment remains about 90% of total revenue, that implies cumulative data center sales from last year -- largely from Blackwell and the new Rubin chips -- will exceed $1 trillion by the end of next year.

Management has stuck with that forecast. During the company's fiscal first-quarter earnings call, CFO Colette Kress said, "We are continuing to work vigorously on our supply chain ecosystem to address the incredible demand we see ahead of us, giving us full confidence in the $1 trillion in Blackwell and Rubin revenue we foresee from 2025 through calendar 2027."

However, Kress' comment about working on its supply chain implies the risks that could prevent Nvidia from meeting its forecast.

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Risks to watch A key risk is execution. AI demand has created one huge bottleneck from data center construction to memory and other components needed to build advanced chips. Demand for Nvidia's hardware looks enormous, but the open question is whether Nvidia can ship enough to meet it.

Another risk is competition from Nvidia's own customers, such as Amazon and Alphabet's Google, which are designing custom AI chips for their cloud platforms. Top cloud companies have previously made up about half of Nvidia's data center revenue. If those customers shift more workloads to in-house silicon, Nvidia's growth could slow.

That's also why Nvidia has been striking partnerships with neocloud and sovereign customers, including IREN and leading Japanese manufacturers. Nvidia needs to reduce its dependence on sales to big tech companies that are increasingly focusing on their own chips.

The $1 trillion cumulative sales target is still in play -- but it isn't guaranteed. If the data center market slows or supply constraints limit Nvidia's ability to fulfill orders, it could pressure growth and the stock.

John Ballard has positions in Amazon, Iren, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, and Nvidia. The Motley Fool has a disclosure policy.

Nvidia (NVDA +2.93%), arguably the most popular artificial intelligence (AI) stock on the planet, is also the most valuable company on the planet. Its growth trajectory, however, could just be getting started.

According to research from Stanford University, today's AI models already meet or exceed human baselines on Ph.D.-level science questions, multimodal reasoning, and competition mathematics. But there's still a long way to go until these models control huge swaths of the economy. One model, for example, recently won a gold medal at an international math competition. Yet that same model was able to read analog clocks correctly just 50.1% of the time.

In short, we are still very much in the early innings of both AI adoption and AI capabilities. McKinsey & Company forecasts that more than $5 trillion will be spent globally through 2030 alone on building additional data center infrastructure. Through 2040, a staggering $19 trillion is projected to be deployed to fuel the AI revolution.

As the world's largest AI chip manufacturer, Nvidia sits at the center of this ongoing revolution. Later this month, the company reports second-quarter earnings after market close. Here are the two biggest factors investors should be monitoring.

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1. What is happening with Blackwell and Vera Rubin? Nvidia's Blackwell architecture was officially announced in early 2024. Shipments began later that year. These chips quickly sold out, and at one point, reports suggested that a backlog existed that could persist for 12 months or longer. If there was any doubt that Nvidia's graphics processing units (GPUs) were dominant, Blackwell's initial sales traction put those doubts to rest.

Nvidia's Vera Rubin architecture was also teased in 2024. Sales, however, only began earlier this year. While reports have suggested production issues, Nvidia CEO Jensen Huang recently confirmed that "Vera Rubin is already in production," adding that there are "giant amounts of production incoming."

While the two are designed for different purposes, Nvidia's next earnings report should shed light on whether Vera Rubin sales are competing with Blackwell sales. We'll also get a better idea of Vera Rubin's sales pace and potential backlog, as well as more firm updates on production. The specifics of these updates should have a big effect on the market's understanding of Nvidia's current competitiveness and future sales potential.

Image source: Getty Images.

2. Is management concerned with rising competition? While other experts will be keeping a close eye on margins, China exposure, and future product teasers, I'll be monitoring Nvidia management's comments on rising competition for GPU manufacturing.

Scores of companies, ranging from space stocks like SpaceX to electric vehicle makers like Rivian, are planning to design and build their own AI chips in-house. These companies will remain heavily reliant on Nvidia over the coming years until their internal manufacturing facilities are built and up to spec. How concerned is Nvidia regarding the long-term potential of key clients manufacturing their own chips?

"Company after company has lined up to challenge Nvidia's grip on AI chips," reports Quartz. "The big cloud providers building their own chips aren't walking away from Nvidia entirely," the publication stresses. But they are looking to reduce their reliance on Nvidia, which, by most estimates, holds 70% to 95% of the AI chip market.

The AI market is growing so quickly that Nvidia can afford to lose share and still grow in absolute size. This quarter -- and in future quarters -- I'll be closely monitoring how management is discussing rising competition, especially from key customers.

Item 1 of 2 The Alibaba logo is seen in this illustration taken on January 29, 2025. REUTERS/Dado Ruvic/Illustration

[1/2]The Alibaba logo is seen in this illustration taken on January 29, 2025. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab

July 31 (Reuters) - Chinese AI firm Moonshot has a computing agreement with Alibaba Group (9988.HK), opens new tab for the use of about 20,000 ​Nvidia (NVDA.O), opens new tab chips, Bloomberg News reported on Friday, citing people familiar ‌with the matter.

Alibaba, one of Moonshot's largest investors, expects portfolio companies to use its cloud, the report said. The Nvidia chip cluster Alibaba provides accounts for a key portion of the ​computing power behind Moonshot's Kimi models, it added.

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Moonshot earlier this ​month unveiled Kimi K3, a 2.8-trillion-parameter model. It said Kimi K3 was the world's largest ⁠open-weight AI system and delivered performance approaching U.S. giant Anthropic's frontier Fable model.

U.S. ​export controls on advanced Nvidia chips have made access to computing ​power a key constraint for Chinese companies.

Moonshot can access Nvidia's newer Blackwell processors through Southeast Asia and is seeking additional chips to train its next AI model, Bloomberg ​reported.

Separately, the roughly 20,000 Nvidia chips Moonshot has access to are from the ​chip giant's earlier Hopper generation, the report said.

Before Nvidia rolled out its Blackwell lineup, ‌Hopper ⁠chips were used across the AI industry to train and deploy models.

An Alibaba spokesperson denied to Bloomberg that the company provides H200-powered computing services to Moonshot.

Moonshot's Kimi model surpassed Alibaba's Qwen on key performance measures ​despite access to ​similar training ⁠resources, disappointing some Alibaba employees, the report said.

Reuters could not independently confirm the report. Moonshot and Alibaba could ​not be reached for comment outside regular business hours.

The White ​House, the U.S. ⁠Commerce Department and Nvidia did not immediately respond to Reuters' requests for comment.

The report comes as Moonshot faces growing scrutiny from U.S. officials. The ⁠U.S. ​government had information indicating Moonshot distilled Anthropic's ​Claude Fable 5 model to develop Kimi K3, the White House's top tech adviser, Michael ​Kratsios, said last week.

Reporting by Anhata Rooprai in Bengaluru; Editing by Shreya Biswas

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NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) and Advanced Micro Devices (NASDAQ:AMD) both delivered post-earnings updates that reshape the AI chip narrative. NVIDIA posted $81.615 billion in Q1 FY2027 revenue, while AMD followed with $10.253 billion. One is the infrastructure utility. The other is finally the credible second source hyperscalers actually deploy at scale.

Data Center Carries Both. Only One Prints Utility Margins. NVIDIA’s Data Center segment reached $75.246 billion, up 92% YoY, with networking exploding 199% as InfiniBand, NVLink, and Spectrum-X locked customers into the full rack. Jensen Huang called the buildout “the largest infrastructure expansion in human history”, and the 75.0% non-GAAP gross margin backs that framing.

AMD’s Data Center revenue hit $5.775 billion, up 57% YoY, and became the primary earnings driver. Lisa Su told investors “customer forecasts exceeding our initial expectations” around MI450 and Helios. EPYC server revenue grew more than 50% year-over-year, its fourth straight record quarter. Gross margin sits at 55%, respectable but a full turn behind NVIDIA.

Driver NVIDIA AMD Data Center growth +92% YoY +57% YoY Non-GAAP gross margin 75.0% 55% Free cash flow $48.554B $2.566B Infrastructure Utility vs. Merchant Second Source NVIDIA owns the software, networking, and rack architecture. That is why 80%+ chip margins translate into predictable cash flow and support a $80 billion new buyback authorization plus a dividend hike to $0.25 per share.

AMD’s role has genuinely changed. Meta committed to 6 gigawatts of AMD Instinct GPUs including a custom MI450 chip, layered onto the earlier 6 gigawatt OpenAI commitment. Su even flagged a CPU-to-GPU ratio shifting from “1:4 or 1:8 configurations toward something closer to 1:1”, which quietly expands the EPYC opportunity as agentic workloads spread.

The Next Test Is Helios, Rubin, and China AMD’s MI450 volume ramp lands in Q3, with Helios rack-scale competing directly against NVIDIA’s Vera Rubin roadmap. NVIDIA guided Q2 revenue to $91.0 billion, excluding China Data Center compute entirely. AMD guided to roughly $11.2 billion. I will keep an eye on whether Helios deployments actually convert pilots into production, and whether NVIDIA’s networking growth holds once merchant fabrics mature.

Why I Split the Trade Between Them Personally, I lean toward NVIDIA as the core position. Free cash flow of $48.554 billion in a single quarter, a P/E near 32, and analyst buy ratings of 58 support the utility thesis. AMD is the higher-variance sleeve. Its stock is up 131.11% YTD but trades at a P/E of 175, leaving little room for stumbles. If you want durability, NVIDIA. If you want torque on every hyperscaler headline, AMD. I would hesitate to own only one.

Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.

Contact [email protected] for any questions or corrections.

Although Wall Street keeps rehearsing the dot-com script every time a semiconductor stock rips higher, Fox Business host Charles Payne argues on the Rich Habits Podcast that the comparison “wastes a lot of time” and “creates a lot of hesitation” for investors watching a generational buildout pass them by. The reflex is understandable. Cisco Systems (NASDAQ:CSCO | CSCO Price Prediction) was briefly the most valuable company on earth in March 2000, then collapsed roughly 89% by 2002, and the stock still has not recaptured that peak 26 years later. But the load-bearing question is not whether the chart looks similar. It is whether the earnings underneath match.

The Long Memory pattern Payne cites concerns the mechanism that caused the crash, not the crash itself. Cisco’s growth in the late 1990s came largely from acquisitions rather than organic expansion, and its customers were money-losing dot-coms burning venture capital that later imploded. That is what a bubble looks like from the inside: revenue growth that depends on other people’s speculation. What Payne asks investors to do is boring and useful. Check whether earnings per share are following the stock price higher. Check organic versus acquisition-driven growth. Check PE, forward PE, and PEG.

NVIDIA Broke the Mold Run that test on NVIDIA (NASDAQ:NVDA) and the parallel breaks. In its most recent quarter, filed May 20, NVIDIA posted revenue of $81.615 billion, up 85.23% year over year, non-GAAP EPS of $1.87 against a $1.77 estimate, and non-GAAP gross margin of 75.0%. Data Center revenue alone reached $75.246 billion, up 92% year over year, with networking up 199%. Net income climbed 210.63%. That is operating leverage, not acquisition accounting.

The valuation gut-check matters here. Cisco at its 2000 peak carried a price-to-earnings ratio in the 130x to 200x range with revenue growth in the 40s to 50s. NVIDIA today trades at a trailing P/E of 40 with 85% revenue growth and a return on equity of 101.49%. The tape looks like the dot-com era. The math does not. NVIDIA has beaten EPS estimates in every single quarter from FY2023 Q1 through FY2026 Q2, and the surprise magnitudes have compressed as analysts finally catch up to the run rate.

Payne’s second test is who is writing the checks. The customer base is where dot-com Cisco failed the audit. NVIDIA’s customers are the most profitable enterprises on the planet, and their AI revenue is contracted, not vaporware. Microsoft (NASDAQ:MSFT) told investors on its most recent call that its “AI business surpassed $37 billion ARR, up 123%”, with commercial remaining performance obligations, its committed backlog, at $627 billion. Microsoft added “another gigawatt of capacity this quarter” and is on track to double its footprint in just two years. Money that has already been signed for is not a bubble.

Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.

A Historical Comparison Payne’s deeper historical mirror is the 1860s, well before 1999. Between 1860 and the early 1900s, America eclipsed the rest of the world, life expectancy grew and disposable income appeared for the first time, largely on the back of the railroads and the second industrial revolution. That buildout also produced spectacular busts and forgotten winners. Payne concedes the point directly: “Not all the AI winners today may be relevant 10 years from now.” The pattern is that the platform survives even when specific tickers do not. What is different this time, in his framing, is access. In the railroad era “maybe there were 1,000 investors, period,” where today “everyone’s got an opportunity to get involved and to ride this wave.”

The Cisco cautionary tale still deserves respect. Even now, with Cisco riding a real AI networking cycle of its own, revenue of $15.8 billion up 12% year over year and a raised FY26 hyperscaler AI order outlook of roughly $9 billion, the stock has returned only 171.25% cumulatively since March 1, 2000. That is the ceiling a broken multiple can impose on a good business for a quarter century. Jensen Huang’s read on the current cycle is a different order of magnitude. He told analysts NVIDIA sees “$1 trillion in Blackwell and Rubin revenue” through calendar 2027 and forecasts AI infrastructure spending on track to reach $3 trillion to $4 trillion annually by the end of this decade.

The pattern that repeats is the buildout, well beyond the crash. Railroads, electrification, the internet, and now AI factories all produced periods where the stock market ran ahead of proof, then waited for earnings to catch the tape. Payne’s argument, tested against the numbers, is that NVIDIA’s earnings are pulling the tape higher rather than chasing it. Long term, Wall Street tends to sort platform winners from tourists on the strength of free cash flow, and $48.554 billion of quarterly free cash flow is the sort of receipt that Cisco in 2000 could not produce. The window Payne describes is open. The homework he demands is what keeps investors on the right side of it.

Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.

Contact [email protected] for any questions or corrections.

Penguin Solutions CEO Kash Shaikh appeared on CNBC on July 29 with his thesis for the current AI cycle: “Memory is the new compute, especially with agentic AI.” As autonomous AI agents evolve from short prompt-and-response interactions into workloads operating around the clock, he expects the primary bottleneck in an AI factory to increasingly shift toward memory bandwidth and capacity rather than GPU throughput alone.

Shaikh described his company plainly: “Penguin Solutions is an AI factory platform company. We sit at the intersection of two very high-demand markets, AI infrastructure and memory.” He added that “enterprises, governments around the world and the new cloud providers are racing to build the AI factories” and that backlogs now extend multiple quarters.

Revenue Soared 48% as AI and Memory Demand Exploded Penguin Solutions (NASDAQ:PENG) has become one of the most direct public-market vehicles for the memory-as-bottleneck thesis. Shares are up 123% since the start of 2026, with the company supporting a market cap of nearly $2.47 billion and analysts carrying a Buy consensus with a $74.29 price target, implying meaningful upside from the stock’s current price of $43.70.

The fundamentals back the CEO’s confidence. In fiscal Q3 2026, company-wide revenue grew 48% year over year, and the memory and AI infrastructure business grew over 104% year over year to represent over 75% of total net sales. Q3 saw revenue of $478.71 million, and non-GAAP diluted EPS of $0.84, beating consensus by 13.61% and 49.33%, respectively.

Management responded by raising fiscal 2026 net sales growth guidance to 22% ±2% and non-GAAP EPS guidance to $2.60 ±$0.05. Penguin was also recently named an NVIDIA AI Factory Specialized Partner and Dell’s Global Alliances Americas AI Partner of the Year.

Why Agentic AI Could Make Memory the Next Great Bottleneck CEO Shaikh’s argument turned to how agentic workloads behave. Where advisory AI answers a question and stops, agentic AI is “performing tasks, automating workflows, and it is working 24/7.” Continuous context windows, persistent KV caches, and long-running tool use all pile pressure onto memory subsystems. Penguin’s MemoryAI CXL-based KV cache server, already deployed at a Tier One financial institution, is designed for exactly that workload.

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On the earnings call, Shaikh reinforced the point, noting that “as inference and agentic AI workloads become more persistent and context-rich, memory is increasingly becoming one of the primary performance and scalability bottlenecks.”

Micron’s Historic Growth Validates the Memory Supercycle Micron Technology (NASDAQ:MU | MU Price Prediction) offers a readout of the same phenomenon. Fiscal Q3 2026 revenue reached $41.46 billion, up 345.7% year over year, with GAAP gross margin expanding to 84.6%. CEO Sanjay Mehrotra told investors the results “reflect the strategic value of memory in the AI era.” HBM4 is now in high-volume shipments, and Micron guided Q4 revenue to $50.0 billion ±$1.0 billion. Shares are up 187.67% year to date.

NVIDIA Remains the Engine Behind the AI Factory Buildout NVIDIA (NASDAQ:NVDA) remains the demand engine behind AI factory buildouts, with fiscal Q1 2027 revenue of $81.62 billion and Data Center revenue of $75.25 billion. Jensen Huang has called it “the largest infrastructure expansion in human history.” Penguin sits directly inside that ecosystem as an NVIDIA AI Factory Specialized Partner, and the two companies’ networking and memory roadmaps are increasingly coupled.

Penguin’s Biggest Risk Is Also Its Biggest Opportunity Penguin trades at a forward P/E near 12, but the stock’s beta of 2.83 and a recent 22.68% one-month drawdown make it clear that investors are weighing memory-pricing risk against secular demand. While 74% of revenue is AI-related, about 89% of operating profit comes from the memory segment, meaning that Penguin is tied to the same cycle Micron rides.

If Shaikh is right that agentic AI will make memory a primary infrastructure bottleneck, that concentration could become Penguin’s greatest advantage. The next signals to watch are how quickly its multi-quarter backlog converts into revenue and whether MemoryAI CXL deployments expand beyond the initial Tier One customer.

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NVIDIA NVDA , a U.S. designer of processors used for artificial-intelligence computing, fell approximately 2.3% in Wednesday's regular-session trading as of 11:18 a.m. ET as investors assessed SK Hynix's disappointing earnings and continuing pressure across semiconductor stocks. SK Hynix HXSCL , a South Korean memory-chip producer supplying NVIDIA, closed 9.6% lower after its record profit missed expectations. The Philadelphia Semiconductor Index declined 1.6% during morning trading.

SK Hynix's operating profit increased more than sixfold, supported by demand for advanced memory used in AI systems. However, shipment delays involving some advanced products limited price increases for its DRAM chips. The company disclosed approximately 10 long-term supply agreements, but analysts said the arrangements could restrict gains if memory prices continue rising. Investors were also disappointed by the absence of detailed plans for increasing shareholder returns.

NVIDIA's decline illustrates how investor attention has shifted from AI spending commitments toward evidence that infrastructure investment is producing sufficient financial returns. Reuters reported that investors were also concerned about intensifying competition from Chinese chipmakers and lower-cost AI models. Microsoft and Meta Platforms are scheduled to report after Wednesday's close, followed by Amazon and Apple later in the week. Their cloud growth, AI revenue and infrastructure-spending disclosures could influence whether pressure on NVIDIA and the broader semiconductor sector continues.

AXS Investments LLC decreased its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 34.0% in the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 25,862 shares of the computer hardware maker’s stock after selling 13,308 shares during the period. NVIDIA comprises 1.8% of AXS Investments LLC’s portfolio, making the stock its 6th biggest holding. AXS Investments LLC’s holdings in NVIDIA were worth $4,510,000 as of its most recent SEC filing.

Several other large investors also recently modified their holdings of the stock. Norges Bank acquired a new stake in shares of NVIDIA in the 4th quarter valued at $62,244,133,000. J. Stern & Co. LLP lifted its holdings in NVIDIA by 13,709.1% during the 4th quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker’s stock valued at $23,454,297,000 after purchasing an additional 124,849,603 shares during the last quarter. Cardano Risk Management B.V. boosted its position in NVIDIA by 896.4% in the fourth quarter. Cardano Risk Management B.V. now owns 78,123,960 shares of the computer hardware maker’s stock valued at $14,570,119,000 after buying an additional 70,283,539 shares in the last quarter. Capital Research Global Investors boosted its position in NVIDIA by 16.1% in the third quarter. Capital Research Global Investors now owns 165,377,852 shares of the computer hardware maker’s stock valued at $30,855,564,000 after buying an additional 22,896,705 shares in the last quarter. Finally, Laurel Wealth Advisors LLC grew its stake in NVIDIA by 15,496.1% during the second quarter. Laurel Wealth Advisors LLC now owns 21,865,525 shares of the computer hardware maker’s stock worth $3,454,534,000 after buying an additional 21,725,326 shares during the last quarter. 65.27% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In A number of research analysts have recently issued reports on NVDA shares. President Capital lifted their target price on shares of NVIDIA from $280.00 to $295.00 and gave the company a “buy” rating in a research note on Thursday, May 21st. Weiss Ratings reaffirmed a “buy (b)” rating on shares of NVIDIA in a report on Wednesday, July 8th. Wolfe Research reissued an “outperform” rating and issued a $275.00 price objective on shares of NVIDIA in a research note on Thursday, May 21st. Evercore restated an “outperform” rating and set a $413.00 target price (up from $352.00) on shares of NVIDIA in a report on Thursday, May 21st. Finally, Wall Street Zen lowered NVIDIA from a “strong-buy” rating to a “buy” rating in a research note on Saturday, July 4th. Three equities research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat.com, NVIDIA has an average rating of “Buy” and an average price target of $304.26.

Get Our Latest Research Report on NVDA

Insider Activity at NVIDIA In related news, Director Stephen C. Neal sold 15,500 shares of the firm’s stock in a transaction 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 sale, the director owned 116,135 shares of the company’s stock, valued at approximately $25,053,803.55. This trade represents a 11.77% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Mark A. Stevens sold 885,000 shares of NVIDIA stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $210.17, for a total value of $186,000,450.00. Following the transaction, the director owned 5,207,271 shares in the company, valued at approximately $1,094,412,146.07. This represents a 14.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 1,901,125 shares of company stock worth $410,583,015 in the last quarter. Corporate insiders own 3.94% of the company’s stock.

NVIDIA Stock Up 0.3% NASDAQ:NVDA opened at $197.01 on Wednesday. The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04. NVIDIA Corporation has a 12-month low of $164.07 and a 12-month high of $236.54. The stock’s fifty day simple moving average is $206.86 and its 200-day simple moving average is $195.98. The firm has a market capitalization of $4.77 trillion, a P/E ratio of 30.17, a P/E/G ratio of 0.38 and a beta of 2.21.

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 (EPS) for the quarter, topping analysts’ consensus estimates of $1.76 by $0.11. The firm had revenue of $81.61 billion for the quarter, compared to analysts’ expectations of $78.42 billion. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The company’s revenue was up 85.2% compared to the same quarter last year. During the same quarter last year, the business earned $0.81 earnings per share. Equities research analysts expect that NVIDIA Corporation will post 8.79 earnings per share for the current year.

NVIDIA Increases Dividend The company also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Thursday, June 4th were given a $0.25 dividend. The ex-dividend date was Thursday, June 4th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. This is an increase from NVIDIA’s previous quarterly dividend of $0.01. NVIDIA’s dividend payout ratio is currently 15.31%.

NVIDIA declared that its Board of Directors has authorized a share buyback plan on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization authorizes the computer hardware maker to buy up to 1.5% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s board believes its stock is undervalued.

Trending Headlines about NVIDIA Here are the key news stories impacting NVIDIA this week:

Positive Sentiment: CEO Jensen Huang is emphasizing robotics and “physical AI” as the next major growth market, spanning autonomous machines, vehicles, factories and data centers. The company’s expanded Agent Toolkit, PhysicsNeMo and CUDA-X libraries are also being adopted by Cadence, Siemens, Synopsys, Samsung and Silvaco, supporting a broader software-and-platform ecosystem beyond GPU sales. NVIDIA robotics growth article Positive Sentiment: New strategic relationships with Safe Superintelligence, OpenAI, NAVER and other infrastructure partners could increase demand for NVIDIA’s Vera Rubin and Blackwell systems. Analysts remain broadly bullish, with reported price targets well above current trading levels. NVIDIA Safe Superintelligence investment article Neutral Sentiment: NVIDIA is reportedly discussing a potential backstop of up to $250 billion for OpenAI’s Ohio data-center project, alongside a much larger overall infrastructure plan. The arrangement could lock in substantial future chip demand, but it would also expand NVIDIA’s role from supplier to financier and expose it to OpenAI’s creditworthiness and project-execution risks. NVIDIA OpenAI financing article Negative Sentiment: Investors remain concerned that vendor-backed AI infrastructure spending represents circular financing rather than organic customer demand. Reports that NVIDIA could guarantee OpenAI-related obligations helped trigger a broad chip-stock selloff, while rising default-insurance costs have intensified balance-sheet concerns. NVIDIA default insurance costs article Negative Sentiment: Taiwanese authorities reportedly detained an NVIDIA employee in a probe involving alleged diversion of Super Micro AI servers to China. Although no wrongdoing by NVIDIA has been established, the investigation raises additional export-control, legal and reputational risks. Intensifying Chinese competition and weakness across Asian chip stocks are adding pressure to the sector. Taiwan NVIDIA employee investigation article 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 These 3 Stocks Have Soared in 2026—Can They Keep Climbing? Hasbro’s Earnings Beat Shows Why This Is No Longer Just a Toy Story Rambus: Another AI Phoenix Ready to Rise From the Ashes of Correction Chips & Clips: Memory Tariffs Rewire Tech Supply Chains 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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Cornerstone Planning Group LLC raised its stake in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 10.5% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 34,056 shares of the computer hardware maker’s stock after acquiring an additional 3,238 shares during the period. NVIDIA makes up 0.8% of Cornerstone Planning Group LLC’s portfolio, making the stock its 25th biggest position. Cornerstone Planning Group LLC’s holdings in NVIDIA were worth $5,939,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors have also recently made changes to their positions in the company. State Street Corp increased its holdings in shares of 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 purchasing an additional 11,451,386 shares in the last quarter. Geode Capital Management LLC increased its position in shares of NVIDIA by 0.6% during the 4th 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 purchasing an additional 3,383,441 shares during the last quarter. Norges Bank bought a new position in NVIDIA in the fourth quarter worth approximately $62,244,133,000. Bank of America Corp DE raised its holdings in NVIDIA by 1.5% in the 4th quarter. Bank of America Corp DE now owns 187,181,484 shares of the computer hardware maker’s stock worth $34,909,347,000 after purchasing an additional 2,849,678 shares during the period. Finally, Legal & General Group Plc lifted its position in shares of NVIDIA by 1.5% during the 3rd quarter. Legal & General Group Plc now owns 181,203,035 shares of the computer hardware maker’s stock valued at $33,808,862,000 after buying an additional 2,609,560 shares in the last quarter. Hedge funds and other institutional investors own 65.27% of the company’s stock.

Wall Street Analysts Forecast Growth A number of research analysts recently weighed in on the stock. Weiss Ratings restated a “buy (b)” rating on shares of NVIDIA in a research note on Wednesday, July 8th. Royal Bank Of Canada set a $280.00 price objective on shares of NVIDIA in a research note on Thursday, May 21st. Sanford C. Bernstein reissued a “buy” rating on shares of NVIDIA in a research note on Monday, June 29th. DA Davidson reiterated a “buy” rating and set a $300.00 target price on shares of NVIDIA in a report on Monday, June 1st. Finally, Zacks Research upgraded shares of NVIDIA from a “hold” rating to a “strong-buy” rating in a report on Monday, July 20th. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, NVIDIA has a consensus rating of “Buy” and an average target price of $304.26.

View Our Latest Stock Analysis on NVIDIA

Insider Buying and Selling at NVIDIA In other 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 sale, the director directly 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 legal filing with the Securities & Exchange Commission, which is available at the SEC website. 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 completion of 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 position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 1,901,125 shares of company stock valued at $410,583,015. Corporate insiders own 3.94% of the company’s stock.

Trending Headlines about NVIDIA Here are the key news stories impacting NVIDIA this week:

Positive Sentiment: CEO Jensen Huang is emphasizing robotics and “physical AI” as the next major growth market, spanning autonomous machines, vehicles, factories and data centers. The company’s expanded Agent Toolkit, PhysicsNeMo and CUDA-X libraries are also being adopted by Cadence, Siemens, Synopsys, Samsung and Silvaco, supporting a broader software-and-platform ecosystem beyond GPU sales. NVIDIA robotics growth article Positive Sentiment: New strategic relationships with Safe Superintelligence, OpenAI, NAVER and other infrastructure partners could increase demand for NVIDIA’s Vera Rubin and Blackwell systems. Analysts remain broadly bullish, with reported price targets well above current trading levels. NVIDIA Safe Superintelligence investment article Neutral Sentiment: NVIDIA is reportedly discussing a potential backstop of up to $250 billion for OpenAI’s Ohio data-center project, alongside a much larger overall infrastructure plan. The arrangement could lock in substantial future chip demand, but it would also expand NVIDIA’s role from supplier to financier and expose it to OpenAI’s creditworthiness and project-execution risks. NVIDIA OpenAI financing article Negative Sentiment: Investors remain concerned that vendor-backed AI infrastructure spending represents circular financing rather than organic customer demand. Reports that NVIDIA could guarantee OpenAI-related obligations helped trigger a broad chip-stock selloff, while rising default-insurance costs have intensified balance-sheet concerns. NVIDIA default insurance costs article Negative Sentiment: Taiwanese authorities reportedly detained an NVIDIA employee in a probe involving alleged diversion of Super Micro AI servers to China. Although no wrongdoing by NVIDIA has been established, the investigation raises additional export-control, legal and reputational risks. Intensifying Chinese competition and weakness across Asian chip stocks are adding pressure to the sector. Taiwan NVIDIA employee investigation article NVIDIA Trading Up 0.3% NVIDIA stock opened at $197.01 on Wednesday. The firm has a market cap of $4.77 trillion, a PE ratio of 30.17, a P/E/G ratio of 0.38 and a beta of 2.21. NVIDIA Corporation has a 12 month low of $164.07 and a 12 month high of $236.54. The stock’s 50 day simple moving average is $206.86 and its two-hundred day simple moving average is $195.98. The company has a current ratio of 3.44, a quick ratio of 2.85 and a debt-to-equity ratio of 0.04.

NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, beating the consensus estimate of $1.76 by $0.11. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The firm had revenue of $81.61 billion during the quarter, compared to analyst estimates of $78.42 billion. During the same period in the previous year, the firm earned $0.81 EPS. The business’s quarterly revenue was up 85.2% on a year-over-year basis. Analysts anticipate that NVIDIA Corporation will post 8.79 earnings per share for the current year.

NVIDIA Increases Dividend The company also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Thursday, June 4th were issued a $0.25 dividend. The ex-dividend date of this dividend was Thursday, June 4th. This is a positive change from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. NVIDIA’s dividend payout ratio is presently 15.31%.

NVIDIA announced that its board has approved a share buyback plan 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 stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board of directors believes its shares are undervalued.

NVIDIA Company Profile (Free Report)

NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.

The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.

Featured Articles Five stocks we like better than NVIDIA These 3 Stocks Have Soared in 2026—Can They Keep Climbing? Hasbro’s Earnings Beat Shows Why This Is No Longer Just a Toy Story Rambus: Another AI Phoenix Ready to Rise From the Ashes of Correction Chips & Clips: Memory Tariffs Rewire Tech Supply Chains

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Financiere des Professionnels Fonds d investissement inc. grew its holdings in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 110.1% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 453,364 shares of the computer hardware maker’s stock after purchasing an additional 237,539 shares during the quarter. NVIDIA makes up approximately 4.6% of Financiere des Professionnels Fonds d investissement inc.’s portfolio, making the stock its 4th largest holding. Financiere des Professionnels Fonds d investissement inc.’s holdings in NVIDIA were worth $79,067,000 as of its most recent SEC filing.

A number of other hedge funds have also modified their holdings of NVDA. Brighton Jones LLC grew its holdings in NVIDIA by 12.4% during the 4th quarter. Brighton Jones LLC now owns 324,901 shares of the computer hardware maker’s stock valued at $43,631,000 after buying an additional 35,815 shares during the last quarter. Bank Pictet & Cie Europe AG raised its holdings in shares of NVIDIA by 1.0% in the fourth quarter. Bank Pictet & Cie Europe AG now owns 2,346,417 shares of the computer hardware maker’s stock worth $315,100,000 after acquiring an additional 22,929 shares during the last quarter. Highview Capital Management LLC DE lifted its position in shares of NVIDIA by 6.7% in the fourth quarter. Highview Capital Management LLC DE now owns 58,396 shares of the computer hardware maker’s stock valued at $7,842,000 after acquiring an additional 3,653 shares in the last quarter. Hudson Value Partners LLC lifted its position in shares of NVIDIA by 30.7% in the fourth quarter. Hudson Value Partners LLC now owns 50,658 shares of the computer hardware maker’s stock valued at $6,805,000 after acquiring an additional 11,900 shares in the last quarter. Finally, Wealth Group Ltd. boosted its stake in shares of NVIDIA by 15.7% during the first quarter. Wealth Group Ltd. now owns 6,598 shares of the computer hardware maker’s stock valued at $715,000 after acquiring an additional 896 shares during the last quarter. 65.27% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at NVIDIA In related news, Director Stephen C. Neal sold 15,500 shares of the stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the completion of the sale, the director owned 116,135 shares of the company’s stock, valued at approximately $25,053,803.55. This represents a 11.77% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Mark A. Stevens sold 885,000 shares of the firm’s stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the completion of the transaction, the director owned 5,207,271 shares in the company, valued at $1,094,412,146.07. The trade was a 14.53% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 1,901,125 shares of company stock worth $410,583,015. 3.94% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades Several brokerages recently weighed in on NVDA. Morgan Stanley set a $288.00 target price on shares of NVIDIA and gave the company an “overweight” rating in a research note on Thursday, May 21st. Daiwa Securities Group boosted their price objective on shares of NVIDIA from $215.00 to $255.00 and gave the company an “outperform” rating in a research report on Friday, May 22nd. HSBC reissued a “buy” rating and set a $325.00 price objective (up from $295.00) on shares of NVIDIA in a research note on Tuesday, May 19th. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and issued a $255.00 target price (up from $220.00) on shares of NVIDIA in a research note on Thursday, May 21st. Finally, Rosenblatt Securities restated a “buy” rating and set a $325.00 price objective on shares of NVIDIA in a report on Thursday, May 21st. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have issued a Hold rating to the company’s stock. Based on data from MarketBeat, NVIDIA presently has an average rating of “Buy” and a consensus price target of $304.26.

Check Out Our Latest Stock Analysis on NVDA

NVIDIA Stock Up 0.3% Shares of NVDA opened at $197.01 on Wednesday. NVIDIA Corporation has a fifty-two week low of $164.07 and a fifty-two week high of $236.54. The company’s fifty day moving average is $206.86 and its two-hundred day moving average is $195.98. The firm has a market cap of $4.77 trillion, a PE ratio of 30.17, a price-to-earnings-growth ratio of 0.38 and a beta of 2.21. The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04.

NVIDIA (NASDAQ:NVDA – Get Free Report) last released its quarterly earnings data 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 return on equity of 96.94% and a net margin of 62.97%.The business had revenue of $81.61 billion during the quarter, compared to the consensus estimate of $78.42 billion. During the same period in the prior year, the firm posted $0.81 EPS. The business’s revenue for the quarter was up 85.2% on a year-over-year basis. Analysts forecast that NVIDIA Corporation will post 8.79 earnings per share for the current year.

NVIDIA announced that its Board of Directors has initiated a stock repurchase plan on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in shares. This repurchase authorization authorizes the computer hardware maker to repurchase up to 1.5% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s management believes its shares are undervalued.

NVIDIA Increases Dividend The company also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Thursday, June 4th were paid a $0.25 dividend. The ex-dividend date of this dividend was Thursday, June 4th. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. This is an increase from NVIDIA’s previous quarterly dividend of $0.01. NVIDIA’s dividend payout ratio is presently 15.31%.

NVIDIA News Roundup Here are the key news stories impacting NVIDIA this week:

Positive Sentiment: CEO Jensen Huang is emphasizing robotics and “physical AI” as the next major growth market, spanning autonomous machines, vehicles, factories and data centers. The company’s expanded Agent Toolkit, PhysicsNeMo and CUDA-X libraries are also being adopted by Cadence, Siemens, Synopsys, Samsung and Silvaco, supporting a broader software-and-platform ecosystem beyond GPU sales. NVIDIA robotics growth article Positive Sentiment: New strategic relationships with Safe Superintelligence, OpenAI, NAVER and other infrastructure partners could increase demand for NVIDIA’s Vera Rubin and Blackwell systems. Analysts remain broadly bullish, with reported price targets well above current trading levels. NVIDIA Safe Superintelligence investment article Neutral Sentiment: NVIDIA is reportedly discussing a potential backstop of up to $250 billion for OpenAI’s Ohio data-center project, alongside a much larger overall infrastructure plan. The arrangement could lock in substantial future chip demand, but it would also expand NVIDIA’s role from supplier to financier and expose it to OpenAI’s creditworthiness and project-execution risks. NVIDIA OpenAI financing article Negative Sentiment: Investors remain concerned that vendor-backed AI infrastructure spending represents circular financing rather than organic customer demand. Reports that NVIDIA could guarantee OpenAI-related obligations helped trigger a broad chip-stock selloff, while rising default-insurance costs have intensified balance-sheet concerns. NVIDIA default insurance costs article Negative Sentiment: Taiwanese authorities reportedly detained an NVIDIA employee in a probe involving alleged diversion of Super Micro AI servers to China. Although no wrongdoing by NVIDIA has been established, the investigation raises additional export-control, legal and reputational risks. Intensifying Chinese competition and weakness across Asian chip stocks are adding pressure to the sector. Taiwan NVIDIA employee investigation article 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.

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Nvidia shares traded little changed on Tuesday after recovering from early losses, although the stock remained below the psychologically important $200 level.

Investors looked to balance an increasingly attractive valuation against concerns over artificial intelligence financing and upcoming Big Tech earnings.

The stock had fallen sharply in the previous session, losing 5% and surrendering its position as the world's most valuable listed company to Apple.

Despite the recent weakness, Nvidia's valuation has become increasingly attractive.

The stock closed Monday on a forward price-to-earnings ratio of 18.16, its lowest level since April 2015, according to Dow Jones Market Data.

Monday's decline came amid a broader selloff in semiconductor stocks following reports that a Chinese company had begun mass-producing key chipmaking equipment.

Investor sentiment was also weighed down by a Wall Street Journal report that Nvidia is discussing a roughly $250 billion financing guarantee for OpenAI to support a large data centre project in Ohio.

The arrangement would help OpenAI secure more favourable financing terms while supporting long-term demand for Nvidia's artificial intelligence chips.

The report sparked concerns among some investors that financing arrangements between Nvidia and AI customers could resemble the circular investment structures seen during the dotcom era.

Morningstar said it does not believe the reported financing discussions undermine the long-term investment case for Nvidia.

The research firm maintained its $280 fair value estimate for the company and said the shares remain undervalued despite concerns surrounding financing-backed AI infrastructure projects.

The target represents an around 40% upside from the current market price.

Morningstar said demand for artificial intelligence computing continues to expand rapidly, with AI hosting providers remaining constrained by available computing capacity rather than customer demand.

The firm also pointed to AMD's recent increase in its server CPU market forecast as evidence that demand for agentic AI continues to strengthen, supporting the need for additional AI infrastructure over the coming years.

Morningstar said its understanding is that Nvidia already provides financing backstops to some cloud infrastructure providers in exchange for sharing portions of future AI hosting revenue.

According to the firm, a similar arrangement with OpenAI would represent a much larger transaction but would remain consistent with Nvidia's broader strategy of expanding the AI ecosystem and supporting long-term demand for its hardware.

Investor attention has now shifted to quarterly results from major technology companies, which are expected to provide fresh insight into the pace of artificial intelligence investment.

Microsoft, Meta Platforms, and Amazon are scheduled to report earnings this week, with investors expected to closely monitor capital expenditure guidance as an indicator of future demand for Nvidia's processors.

Beyond overall spending levels, investors will also look for commentary on the types of AI hardware companies intend to deploy.

Several large technology companies have increasingly developed custom processors with partners such as Broadcom for specific workloads.

While those chips are designed to complement rather than fully replace Nvidia's graphics processing units, investors continue to monitor whether greater adoption of custom silicon could gradually reduce reliance on third-party suppliers.

Tech investors keep seeing and hearing the same headlines about tech companies making their own chips and diversifying away from Nvidia (NVDA -4.97%)'s high-priced products. Initially, it's easy to see why such a scenario may appear to be a troubling one, given that tech giants have the resources to invest in their own chipmaking abilities.

However, these aren't exactly new developments. And there are also many other chipmakers out there, including Broadcom and Advanced Micro Devices, that offer alternatives. But the actual numbers don't really back up the worries that Nvidia is in any serious trouble, at least not yet, anyway. Both its growth rate and its market share remain strong.

It also raises the question of whether the stock, which is among the most valuable in the world and has a market cap of around $5 trillion, could still be a bargain buy.

Image source: Getty Images.

Nvidia continues to dominate the data center market Tech companies are spending big money on data centers, requiring the latest and greatest chips in their build-out efforts. What's remarkable is that even with a growing number of options out there, companies still go to Nvidia. That's evident with a remarkable stat from Futurum Group, which finds that Nvidia dominates the market for data center GPUs, with more than 95% market share.

It's an astounding figure that highlights just how crucial the company's chips are. And Nvidia's growth rate certainly corroborates that, as the business has been doing more than fine in its most recent quarters.

NVDA Revenue (Quarterly YoY Growth) data by YCharts

Is Nvidia's stock a bargain buy? Although Nvidia's market cap, which is often around $5 trillion, may seem high, the company's impressive revenue and profit growth highlight just how reasonably priced the stock is right now. Based on analyst projections, it's trading at less than 24 times its future earnings. By comparison, the average stock on the S&P 500 trades at 21 times its future profits. That means it's trading at only a slightly higher premium than the average stock within the broad index.

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In the long run, Nvidia has potentially even more opportunities to tap into, even if competition does end up cutting into its growth. The massive profits and cash flow it's generating now and in recent years can enable it to invest heavily in the future in new technologies and acquisitions to drive even further growth. That's why, as a long-term investment, it may be a great addition to any portfolio.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Broadcom, and Nvidia. The Motley Fool has a disclosure policy.

Item 1 of 3 Computer motherboard and chip appear in this illustration taken August 25, 2025. REUTERS/Dado Ruvic/Illustration

[1/3]Computer motherboard and chip appear in this illustration taken August 25, 2025. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab

SummaryCompaniesSK Hynix's U.S.-listed shares closed below their $149 listing priceChina's advances in chipmaking and AI fuel worries of stronger competitionSK Hynix shares drop 11%, Samsung shares slide nearly 10% in SeoulSEOUL, July 28 (Reuters) - South Korean chip stocks ‌slumped on Tuesday, with Samsung Electronics (005930.KS), opens new tab and SK Hynix (000660.KS), opens new tab falling as much as 9.5% and 11.1%, respectively, as investors retreated from AI-related stocks amid mounting concerns over financing risks tied to AI infrastructure spending and intensifying competition from China.

SK Hynix's U.S.-listed ​shares had already slumped overnight, closing at $143.02, below their $149 initial public offering price.

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The benchmark KOSPI (.KS11), opens new tab was ​trading down around 8% as of 0120 GMT.

The sector-wide selloff followed a series of ⁠developments that renewed doubts about the sustainability of the AI-driven semiconductor rally.

SK Hynix, a key supplier of ​high-bandwidth memory (HBM) chips to Nvidia (NVDA.O), opens new tab, has been one of the biggest beneficiaries of the AI spending boom, making its ​shares particularly sensitive to shifts in investor sentiment toward the sector.

Analysts said the selloff reflected a combination of concerns over AI infrastructure financing, China's technological advances and rising competition from Chinese firms.

Han Ji-young, an analyst at Kiwoom Securities, said reports that Chinese ​companies were developing domestic deep ultraviolet (DUV) lithography equipment had reignited concerns that Chinese memory makers could accelerate capacity ​expansion, intensifying competition in the global memory market.

While details such as the companies involved, equipment performance and commercialization timelines had ‌yet to ⁠be disclosed, the news had cooled investor sentiment as the investment narrative for semiconductor stocks had already weakened, he said.

Han added that investors were also becoming increasingly cautious ahead of a string of earnings reports due later this week.

"Despite stronger-than-expected earnings from Samsung Electronics earlier this month and Alphabet last week, semiconductor shares experienced sharp declines ​after the results," he said.

Separately, ​a Wall Street Journal ⁠report that Nvidia could provide a roughly $250 billion financial backstop for an OpenAI data-centre project sent Nvidia shares down nearly 5%, with investors questioning the extent to ​which the AI chip leader may be financing its own customers.

Further weighing on ​sentiment, the growing ⁠popularity of low-cost Chinese open-source AI models such as Kimi K3 raised questions about whether future AI workloads could prove less intensive than previously expected — meaning less demand for advanced AI chips and HBM.

Meanwhile, Chinese memory-chip maker CXMT's ⁠688825.SS strong ​stock-market debut fuelled concerns about intensifying competition in the global memory ​industry.

The listing came after reports that Apple had been lobbying the Trump administration to allow the use of Chinese-made chips in some of ​its products, further unsettling investors already concerned about China's growing technological capabilities.

Reporting by Heekyong Yang; Editing by Kevin Buckland

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Nvidia (NVDA -4.97%) announced Monday that it has formed the Open Secure AI Alliance, along with a group of roughly three dozen tech companies. The alliance will build and share open tools for protecting software and AI agents -- AI programs that act on their own. Space Exploration Technologies Corp. was among the founding members through its AI unit, SpaceXAI.

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What will the alliance do?The alliance’s core mission will be to “work to remediate and disclose vulnerabilities using open technologies.” Members include Microsoft, IBM, Palantir Technologies, and CrowdStrike.

Nvidia said it is contributing open model weights -- the trained numbers inside a model, published for all to see and free to use -- along with training data and research. It also posted a project which Nvidia says makes an AI agent's conduct easier to govern, audit, trace, and test. SpaceXAI said future Grok models will ship with open weights.

Why now?The timing follows a high-profile cyberattack in which an OpenAI model acting on its own -- no person was directing it -- hacked into the systems of Hugging Face, an open-source machine learning hub. Hugging Face said it contained the attack by running an open Chinese model on its own computers.

In Nvidia’s announcement of the alliance, the company stressed that "cyber defenders need open, frontier agentic systems for self-defense."

While the company didn’t name it directly, it’s clear that U.S. firms are wary of Chinese models -- many of which are open source -- becoming the go-to for cyber defense. But they are equally wary that the government will overstep and stifle competition domestically.

Treasury Secretary Scott Bessent floated sanctions last week for Chinese firms that use “distillation,” a process that creates new models from existing ones, more or less bypassing the incredibly expensive training phase that frontier models undergo.

More than 20 companies (including Nvidia) wrote to policymakers last week opposing "premature restrictions" on open weight models, saying it would “drive innovation overseas.“ SpaceX was not a signatory, but CEO Elon Musk took to X to share his support.

What it means for Nvidia investorsThis is unlikely to make a big difference to Nvidia’s bottom line for now, but long-term, the alliance could help Nvidia increase its importance in AI security, a layer that could further expand its footprint.

In the short term, the company is doing just fine. It reported $81.6 billion in quarterly revenue in May, up an incredible 85% from a year earlier. It guided the current quarter to $91 billion.

What it means for SpaceX investorsAgain, the impact on SpaceX in the short term is likely limited, but if the alliance is an indication of where the industry is headed -- moving from closed, proprietary models to open weight -- SpaceXAI could be in trouble.

Though it lags OpenAI and Anthropic, SpaceXAI is still first and foremost a frontier lab, and its business model relies on users paying for access. If cheaper -- or free -- models are available, it may prove difficult for the company to earn a return on the enormous costs involved in training Grok.

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike, International Business Machines, Microsoft, Nvidia, and Palantir Technologies. The Motley Fool has a disclosure policy.

NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) CEO Jensen Huang used an exclusive Bloomberg interview on July 27, 2026 to lay out one of the boldest forecasts yet for the AI buildout: a semiconductor industry that must expand roughly tenfold over the coming decade to serve a computing world dominated by autonomous machines rather than human users.

Speaking about the shift from human-driven computing to agentic systems, Huang argued that Nvidia’s addressable market is being redefined at the endpoint level. “These are now processing AI’s for humans to collaborate with. In the future we have AI agents and robots and they will be using computers. Instead of a billion people using computers we will have 100 billion agents and billions of robots all using computers. The computer industry built on top of the chip industry is certainly not big enough,” Huang said. His projection follows: “My guess is the semiconductor industry will probably have to be 10 times larger than it is today over the next decade or so. Working with our partners in Korea and around the world to scale up the supply chain of semiconductors so we are prepared for the AI future.” Huang framed the 10x figure explicitly as his personal guess, not a certainty.

Reframing The Addressable Market The pitch aligns with themes Huang has hammered on recent earnings calls. On the fiscal Q1 2027 call in May 2026, he described “The transition from generative to agentic AI, AI capable of perceiving, reasoning, planning, and acting,” as a force that will reshape every industry. He has also flagged that reasoning models require “a hundred, a thousand times more” tokens per task than one-shot chatbots, a compute intensity that underpins his tenfold industry expansion thesis.

Nvidia reported fiscal Q1 2027 revenue of $81.61 billion, up 85.2% year over year, with data center revenue of $75.25 billion and non-GAAP earnings per share of $1.87, according to the company’s SEC 8-K filing. Q2 guidance called for approximately $91.0 billion in revenue.

The Korea Angle: SK Group And HBM Huang leaned heavily into South Korea as a linchpin of the buildout. “It is the golden age for Korea, as you know. Their semiconductor and industrial business is booming. The country has the ability to help the world buildout AI infrastructure. They are incredibly adapt at adopting new technologies,” he told Bloomberg.

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Nvidia announced a partnership with SK Group valued at over $500 billion in consumption and purchasing of memory and sales of AI supercomputers. The companies are collaborating on memory roadmaps spanning HBM3, HBM4, and beyond, and Nvidia is investing in Korea’s leading AI cloud with plans to scale 200 megawatts. Reports indicate Nvidia will invest $1 billion in Naver Corp to finance an AI data center expansion in the country. SK Group’s listed affiliates trade on the Korea Exchange rather than U.S. venues.

Capex Confidence, With Caveats The 10x call gives investors a framework for interpreting Nvidia’s aggressive supply commitments. The company disclosed $119.0 billion in total supply-related commitments and authorized an additional $80 billion share buyback, alongside a dividend raise to $0.25 per share. Reports indicate Nvidia is in talks to provide a $250 billion financing guarantee for an OpenAI data center project in southern Ohio.

Nvidia carries a trailing P/E of 32 and a forward P/E of 24, with an analyst target price of $302.83 against a recent quote of $206.02. Shares are up 11.04% year to date and 19.21% over the past year.

Huang is arguing that AI infrastructure demand will run longer and deeper than current models assume because the number of compute endpoints jumps from roughly a billion humans to hundreds of billions of agents and robots. That is his projection, not a guarantee, and it hinges on the industry actually scaling supply chains across Taiwan, Korea, and the United States to meet it. Investors watching Nvidia should track hyperscaler capex commentary, HBM supply agreements, and the Vera Rubin ramp for evidence that Huang’s timeline is materializing.

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Contact [email protected] for any questions or corrections.

Collaborative Wealth Managment Inc. cut its holdings in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 58.2% during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 4,267 shares of the computer hardware maker’s stock after selling 5,948 shares during the period. Collaborative Wealth Managment Inc.’s holdings in NVIDIA were worth $744,000 at the end of the most recent quarter.

A number of other institutional investors have also made changes to their positions in NVDA. Diversified Enterprises LLC increased its holdings in shares of NVIDIA by 44.2% during the fourth quarter. Diversified Enterprises LLC now owns 127,604 shares of the computer hardware maker’s stock worth $23,798,000 after purchasing an additional 39,129 shares during the period. ASR Vermogensbeheer N.V. boosted its stake in shares of NVIDIA by 1.8% in the fourth quarter. ASR Vermogensbeheer N.V. now owns 3,169,377 shares of the computer hardware maker’s stock valued at $591,086,000 after buying an additional 54,877 shares during the period. Storen Legacy Partners LLC bought a new stake in shares of NVIDIA in the fourth quarter valued at approximately $1,350,000. Weaver Capital Management LLC grew its position in NVIDIA by 5.5% during the fourth quarter. Weaver Capital Management LLC now owns 85,216 shares of the computer hardware maker’s stock worth $15,893,000 after buying an additional 4,439 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership grew its position in NVIDIA by 3.6% during the fourth quarter. Arrowstreet Capital Limited Partnership now owns 26,652,420 shares of the computer hardware maker’s stock worth $4,970,704,000 after buying an additional 936,506 shares in the last quarter. Institutional investors own 65.27% of the company’s stock.

Trending Headlines about NVIDIA Here are the key news stories impacting NVIDIA this week:

Positive Sentiment: NVIDIA announced a joint AI research lab with KAIST in Seoul, a $300 million collaboration that will fund researchers, internships, and AI infrastructure to advance agentic AI in South Korea. NVIDIA and KAIST Launch Joint AI Research Lab to Accelerate AI Innovation in Korea Positive Sentiment: The company also struck a $1.5 billion partnership with Amkor to expand advanced semiconductor packaging and test capacity in the U.S., reinforcing NVIDIA’s AI supply chain and manufacturing footprint. Nvidia, Amkor strike $1.5 billion chip packaging deal Positive Sentiment: Jensen Huang and NVIDIA joined Microsoft, Meta, and others in publicly backing open-source AI models, which could support broader AI adoption and future demand for NVIDIA GPUs. Nvidia, Microsoft and other tech giants back open-source AI models Positive Sentiment: Several technical reports say NVDA is holding support and may be forming a bullish inverse head-and-shoulders pattern, while other analysts point to a breakout above the 50-day moving average as a possible catalyst. NVIDIA Corp. (NVDA) Price Forecast: Can NVDA Break Above Key Resistance? Neutral Sentiment: Institutional filings show continued buying from some funds, but insider activity remains dominated by sales, which keeps sentiment mixed rather than decisively bullish. Fund Update: 337,821 NVIDIA (NVDA) shares added to COMGEST GLOBAL INVESTORS S.A.S. portfolio Negative Sentiment: Broader semiconductor shares have pulled back as investors take profits and worry about AI valuation levels and heavy capex spending, which has weighed on NVIDIA along with the rest of the AI trade. Semiconductor Crossroads: Healthy Consolidation or Deeper Repricing? Negative Sentiment: News flow also highlights investor rotation out of the biggest AI winners and concerns that the “Magnificent 7” are digesting a surge in AI infrastructure spending, creating near-term pressure on NVDA despite strong long-term demand. Magnificent 7 stocks shed hundreds of billions amid AI spending fears Analyst Upgrades and Downgrades Several brokerages have weighed in on NVDA. Robert W. Baird set a $500.00 price objective on NVIDIA and gave the company an “outperform” rating in a report on Thursday, May 21st. Rosenblatt Securities reissued a “buy” rating and set a $325.00 target price on shares of NVIDIA in a report on Thursday, May 21st. Citic Securities raised their price target on NVIDIA from $242.00 to $315.00 and gave the stock a “buy” rating in a research report on Friday, May 22nd. Seaport Research Partners raised their price target on NVIDIA from $140.00 to $180.00 and gave the stock a “sell” rating in a research report on Thursday, May 21st. Finally, The Goldman Sachs Group reaffirmed a “buy” rating and issued a $285.00 price target (up from $250.00) on shares of NVIDIA in a research note on Wednesday, May 20th. Three research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Buy” and an average target price of $304.26.

View Our Latest Analysis on NVDA

NVIDIA Stock Performance Shares of NVDA stock opened at $206.84 on Monday. NVIDIA Corporation has a fifty-two week low of $164.07 and a fifty-two week high of $236.54. The stock’s fifty day moving average price is $207.85 and its two-hundred day moving average price is $195.86. 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 company has a market cap of $5.01 trillion, a PE ratio of 31.68, a P/E/G ratio of 0.40 and a beta of 2.21.

NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its quarterly 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 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 analysts’ expectations of $78.42 billion. During the same quarter in the previous year, the firm earned $0.81 EPS. NVIDIA’s revenue was up 85.2% on a year-over-year basis. Equities analysts predict that NVIDIA Corporation will post 8.79 EPS for the current fiscal year.

NVIDIA Increases Dividend The firm also recently announced a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Thursday, June 4th were paid a dividend of $0.25 per share. The ex-dividend date of this dividend was Thursday, June 4th. This is a positive change from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 annualized dividend and a yield of 0.5%. NVIDIA’s payout ratio is presently 15.31%.

NVIDIA declared that its Board of Directors has initiated a stock repurchase 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 usually a sign that the company’s board believes its shares are undervalued.

Insiders Place Their Bets In related news, Director Mark A. Stevens sold 885,000 shares of NVIDIA stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the sale, the director directly owned 5,207,271 shares of the company’s stock, valued at approximately $1,094,412,146.07. The trade was a 14.53% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Stephen C. Neal sold 15,500 shares of the company’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 transaction, the director owned 116,135 shares of the company’s stock, valued at approximately $25,053,803.55. This represents a 11.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 1,901,125 shares of company stock valued at $410,583,015. 3.94% of the stock is currently owned by corporate insiders.

NVIDIA Company Profile (Free Report)

NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.

The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.

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