The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Nvidia (NVDA - Free Report) .
Nvidia currently has an average brokerage recommendation (ABR) of 1.15, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 48 brokerage firms. An ABR of 1.15 approximates between Strong Buy and Buy.
Of the 48 recommendations that derive the current ABR, 44 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 91.7% and 6.3% of all recommendations.
Brokerage Recommendation Trends for NVDA
Check price target & stock forecast for Nvidia here>>>
The ABR suggests buying Nvidia, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is NVDA a Good Investment?In terms of earnings estimate revisions for Nvidia, the Zacks Consensus Estimate for the current year has increased 0% over the past month to $9.09.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Nvidia. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Nvidia may serve as a useful guide for investors.
Buy NVDA. The selloff is driven by higher Treasury yields and a broad chip pullback, not a break in Nvidia’s AI demand. BofA’s view is that Nvidia’s frontier-AI commitments (supply, land, power, infrastructure) and GPU rental/compute scarcity keep growth durable, and the valuation gap vs its own FCF multiples supports buying weakness ahead of Aug 26.
Key Risk: AI capex slows faster than Nvidia’s commitments can be monetized, cutting rental rates and free-cash-flow growth.
Semis basket buy (memory/CPU laggards)
Buy the iShares Semiconductor ETF (SOXX) or VanEck Semiconductor ETF (SMH) selectively, using the broad weakness (WDC, Sandisk, Marvell, Seagate down 6–7%) as entry. If yields stabilize, the market’s “risk-off” move should mean-revert across semis, and Nvidia’s rebound narrative can pull the whole group higher.
Key Risk: Yields keep rising and the macro hit spreads into a sustained earnings downgrade cycle for semis.
Nvidia shares NVDA fell around 2% in early Tuesday trading as higher Treasury yields pressured semiconductor stocks and weighed on the broader market.
The decline came alongside a wider pullback across chip stocks.
Western Digital fell almost 7%, while Sandisk dropped more than 6%. Marvell Technology and Seagate Technology also fell more than 6%.
The S&P 500 declined 0.5%, while the Nasdaq Composite fell 1.1%. The Dow Jones Industrial Average was down 191 points, or 0.4%.
The 30-year Treasury yield climbed more than 1 basis point to 5.323%, after reaching its highest level since June 2007 on Monday.
Yields have risen as investors remain concerned about persistent inflation and elevated oil prices.
US crude rose on Monday and gained another 0.9% Tuesday to trade above $85 a barrel as negotiations between the US and Iran stalled.
Nvidia's Tuesday decline comes after a strong rebound in recent weeks.
Shares closed around $225 on Monday for a second consecutive session, a level not seen since mid-May.
The stock's recent advance has pushed its year-to-date gain above 16%, compared with gains of about 15% for the Nasdaq Composite and 13% for the S&P 500.
From the recent market bottom on July 29, Nvidia shares have gained about 15%, compared with a 1.5% advance for the iShares Semiconductor ETF and an almost 2% gain for the VanEck Semiconductor ETF.
Nvidia had trailed those semiconductor baskets for much of the year as investors shifted toward memory and CPU stocks and renewed questions emerged over the sustainability of the company's growth.
The recent rebound has coincided with a broader recovery in the AI infrastructure trade.
Nvidia's increased financial support for key customers is also looking less risky than initially feared, while a new financing initiative could make funding the broader AI buildout more attainable.
New details on revenue growth at OpenAI and Anthropic, both major Nvidia chip customers, have also supported expectations that the companies can continue spending on compute.
Nvidia is scheduled to report its fiscal 2027 second-quarter results on August 26.
BofA maintains bullish view on Nvidia stockBofA Securities reiterated its Buy rating and $350 price target on Nvidia following the company's $105 billion in commitments related to OpenAI.
BofA said after discussions with Nvidia senior management that the chipmaker remains committed to securing chip supply, land, power and infrastructure for frontier AI labs and so-called neo-clouds.
According to BofA, the strategy is intended to diversify Nvidia's customer base beyond public hyperscalers that are increasingly developing their own custom chips.
BofA cited solid GPU rental rates, compute scarcity and Nvidia's free cash flow generation as factors supporting the company's commitments.
The firm also highlighted risks if AI demand slows, which could pressure Nvidia's growth rate and balance sheet.
BofA expects Nvidia to provide more disclosure around its off-balance-sheet commitments when it reports earnings on August 26.
BofA said Nvidia trades at 18 times and 15 times calendar 2027 and 2028 enterprise value to free cash flow, respectively, compared with its blended valuation multiples of 36 times and 22.5 times.
The firm views that valuation gap as a compelling opportunity while maintaining its $350 price target.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Shares of Nvidia (NVDA - Free Report) have gained 10.7% over the past four weeks to close the last trading session at $225.01, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $304.33 indicates a potential upside of 35.3%.
The average comprises 47 short-term price targets ranging from a low of $180.00 to a high of $500.00, with a standard deviation of $52.63. While the lowest estimate indicates a decline of 20% from the current price level, the most optimistic estimate points to a 122.2% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.
However, an impressive consensus price target is not the only factor that indicates a potential upside in NVDA. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why NVDA Could Witness a Solid UpsideAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current year, one estimate has moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 0%.
Moreover, NVDA currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much NVDA could gain, the direction of price movement it implies does appear to be a good guide.
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.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Amazon (NASDAQ: AMZN | AMZN Price Prediction) and NVIDIA (NASDAQ: NVDA) both delivered blockbuster earnings, yet the CoreWeave narrative is quietly reframing which one actually owns the AI economy. Amazon reported AWS growth of 37% YoY, its fastest in 18 quarters. NVIDIA posted +85.2% revenue growth. Same AI wave, very different exposure to the neocloud threat.
AWS Is Accelerating, But the Cost of Defending It Is Enormous Andy Jassy leaned hard into the AI narrative, telling investors “AWS is booming… our AI and Chips businesses each eclipsed run rates of more than $25 billion.” The $496 billion AWS backlog is growing triple digits. AWS operating margin expanded to 39% (up 650 basis points YoY).
The problem is the price of admission. Amazon spent $54.208 billion in Q2 capex alone and is guiding to roughly $200 billion for FY2026. Free cash flow flipped to negative $7.6 billion TTM. That is the tax Amazon pays for retrofitting a general-purpose cloud into an AI factory, exactly the friction specialized neoclouds like CoreWeave exploit with bare-metal, pure-NVIDIA clusters delivering 40 to 60% cheaper compute for frontier training.
NVIDIA Wins Whether AWS or CoreWeave Serves the Workload Jensen Huang framed it bluntly: “The buildout of AI factories, the largest infrastructure expansion in human history, is accelerating at extraordinary speed.” Data Center revenue hit $75.25 billion, up 92% YoY, with networking (InfiniBand, Spectrum-X) nearly tripling. Gross margin sits at 75%, operating margin at 60.4%. Those supplier economics no hyperscaler can match while funding concrete, power, and cooling (we profiled seven of the power, cooling, and networking suppliers behind that buildout in a free report you can grab here).
Lens Amazon (AWS) NVIDIA Core Bet Trainium + Graviton to displace GPU spend Blackwell, Vera Rubin, NVLink ecosystem Q2 Capex vs. Free Cash Flow $54.2B capex, FCF negative $48.55B FCF, +85% Key Vulnerability CoreWeave and neoclouds routing AI labs around AWS China data center revenue excluded from guide The Trainium Question Is Real, But So Is the Loophole Jassy noted “multi-year, multi-gigawatt commitments” from Anthropic and OpenAI to Trainium. That is a genuine share grab in custom silicon. Yet he also conceded AWS will “continue making AWS the best place to run NVIDIA chips” because customers demand choice. Every hyperscaler still funnels dollars to Santa Clara. CoreWeave takes the workloads AWS’s legacy architecture handles least efficiently, exactly the ultra-dense training clusters where NVIDIA’s networking stack shines.
Why I Lean NVIDIA Over Amazon on This Quarter The CoreWeave story makes NVIDIA the cleaner AI expression. Amazon is a fine business, and AWS at a $169 billion run rate is not going anywhere. But its highest-margin AI dollars are the ones most contested by neoclouds, and it is spending unprecedented capex to defend them. NVIDIA collects a toll from AWS, CoreWeave, Anthropic, and OpenAI simultaneously. For investors weighing defensive scale and retail cash flow optionality, Amazon retains a distinct profile. For those focused on the picks-and-shovels exposure that benefits regardless of which cloud wins the frontier lab, the supplier’s economics look more insulated than the battleground’s.
Contact [email protected] for any questions or corrections.
For years, NVIDIA Corp‘s (NASDAQ:NVDA) AI playbook was simple: build a faster GPU, convince customers to upgrade and repeat.
Now, the chipmaker is advancing a more nuanced message — that customers should embrace its newest AI systems while recognizing that older Nvidia hardware can remain productive, profitable and economically valuable for years.
• NVIDIA shares are under pressure. What’s driving NVDA stock lower?
Nvidia Is Rewriting the AI Upgrade CycleThe shift comes as Nvidia pushes its next-generation Vera Rubin systems while simultaneously making the case that previous generations still have a long runway.
CEO Jensen Huang recently wrote on X:
“The mighty A100 fleet are mission-capable from 2020 through 2029. NVIDIA computing is more than chips. CUDA gives developers and NVIDIA engineers a common platform to continually upgrade Ampere, Hopper and Blackwell throughout their useful lives.”
He continued:
“CUDA makes NVIDIA computing versatile. Versatility makes it fungible. Fungibility drives utilization and extends durability, making NVIDIA compute a productive asset: rentable, durable and financeable.”
That messaging marks a subtle but important evolution. Nvidia is no longer selling only the performance gains of its newest GPUs — it is increasingly emphasizing the long-term economic value of its installed base.
Why Older Nvidia Chips Suddenly Matter MoreThe broader strategy was highlighted in a recent report by The Information, which noted that Nvidia is trying to accomplish two seemingly conflicting goals: persuade customers to buy its latest AI chips while assuring them that older hardware will continue holding value for years.
At first glance, those objectives appear difficult to reconcile. Faster release cycles encourage more frequent upgrades, while longer useful lives could reduce the urgency to replace existing systems.
But the tension makes more sense in today’s AI market.
Demand for AI computing infrastructure continues to outstrip supply, meaning customers often value access to GPUs — whether they’re the latest Blackwell systems or older Ampere-based hardware. As AI adoption expands beyond hyperscalers and frontier model developers, more cost-conscious enterprises may also find older GPUs sufficient for many inference and production workloads.
That’s an inference based on Nvidia’s messaging and industry dynamics. Nvidia itself has focused on the versatility of its software platform and the durability of its hardware rather than suggesting customers should delay upgrades.
Read Next
CUDA Is Becoming Nvidia’s Competitive AdvantageThe common thread across Nvidia’s messaging isn’t the chip itself — it’s CUDA (compute unified device architecture).
Huang argues that software continuously improves the performance and efficiency of deployed hardware, allowing AI infrastructure to become more valuable over time rather than steadily depreciating.
In a recent essay, he wrote that AI factories possess the characteristics of an investable infrastructure asset because they “produce revenue, serve a broad market, improve in performance over time and can be redeployed.”
That represents a meaningful shift in how Nvidia is positioning its business. Instead of framing GPUs as rapidly aging technology, the company is increasingly describing AI compute as long-lived infrastructure capable of generating returns throughout its useful life.
What Nvidia Investors Should Watch NextNvidia’s messaging doesn’t signal an end to annual product cycles or demand for its latest AI systems. Large cloud providers and frontier AI labs are still expected to pursue the company’s most advanced hardware as performance remains a competitive advantage.
The bigger question is whether Nvidia can successfully convince a broader enterprise market that older GPUs still have economic value while continuing to persuade its largest customers to upgrade every generation.
If it can, Nvidia may have found a way to expand AI adoption without undermining the premium pricing of its newest chips.
Read Next
Image via Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Beacon Investment Advisory Services Inc. lessened its holdings in shares of NVIDIA Corporation (NASDAQ: NVDA) by 2.0% during the undefined quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 312,373 shares of the computer hardware maker's stock after selling 6,264 shares during the quarter. NVIDIA
Beacon Bank and Trust reduced its holdings in shares of NVIDIA Corporation (NASDAQ: NVDA) by 4.4% during the undefined quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 76,705 shares of the computer hardware maker's stock after selling 3,530 shares during the period. NVIDIA
Bright Rock Capital Management LLC boosted its holdings in shares of NVIDIA Corporation (NASDAQ: NVDA) by 37.5% in the undefined quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 110,000 shares of the computer hardware maker's stock after purchasing an additional 30,000
The hosts of Earn Your Leisure, Rashad Bilal and Troy Millings, framed NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) as a national infrastructure story with the weight of a public works program. On their episode “Are We Building a Permanent Tech Prison? NVIDIA’s $500B Plan Explained,” they broke down the chipmaker’s $500 billion AI investment partnership with Apollo, Blackstone, BlackRock, Brookfield, Goldman Sachs and KKR, arriving at a bullish conclusion that hinges on who is now writing the checks.
Why the Hosts See a “Digital Infrastructure Bill”
Bilal’s framing was blunt: “When the big boys get together and they’re putting in $50 billion at a time for a project, they’re going to ensure that it works. This is almost like a digital infrastructure bill.” That analogy matters because it reframes NVIDIA’s capex cycle as something closer to a public works program with private balance sheets behind it.
Millings added the structural point that carries the bull case forward: “That means that institutions are now putting money in here, and it won’t solely be hyperscalers.” Both hosts acknowledged a circular investment concern before landing bullish. Bilal made a separate point about AMD that is worth quoting verbatim: these institutions “are not investing in this and shorting AMD. They’re positive on the stock and then positive on the development of it.”
The Bear Case Bilal Flagged
Even inside the bullish take, Bilal named the math problem. On a $500 billion investment, a 5x or 7x return implies a $2.5 trillion outcome, which he called “scary” without a clear pathway. His stated preferred entry on NVDA is $190.19, a level well below where the stock trades today. Asked when tech falls apart, his answer was “never,” and he suggested tech has “like another 60 years to run” in a worst case.
What NVIDIA’s Own Numbers Say
Jensen Huang’s most recent conference call reinforced the infrastructure framing. On the May 20, 2026 Q1 FY27 call, Huang said “AI infrastructure spending is on track to reach 3 to 4 trillion annually by the end of this decade” and added that “Compute is revenues. Compute is profit.” He also anchored management’s revenue visibility, citing “1 trillion in Blackwell and Rubin revenue we foresee from 2025 through calendar 2027.”
The quarter itself delivered $82 billion in revenue, up 85% year over year, with Data Center revenue of $75 billion and a 75% non-GAAP gross margin. Total supply commitments climbed to $145 billion, and Q2 revenue guidance sits at $91 billion ± 2%. Investors can pull the underlying Q1 FY27 8-K for the full disclosure.
Where the Stock Sits vs. Bilal’s $190 Preference
NVDA last traded around $226.37 on Monday, Aug. 17, with the stock up nearly 20% year to date and 24.37% over the past year. Market cap stands at $5.48 trillion on a forward P/E of 25. Analyst consensus target is $302.83, backed by 48 Buy ratings and 10 Strong Buy ratings against one Sell rating.
Prediction markets echo the setup. Polymarket traders assign a 97.5% probability that NVIDIA beats its next quarterly earnings report, a 94.2% probability that Data Center revenue clears $80 billion, and an 85.5% probability that NVDA prints a new all-time high before year end. Composite sentiment sits at 71.87, with a +26.26 shift over the past 30 days.
The Read-Through for Investors
Bilal’s $190 preference implies patience on entry rather than skepticism on thesis. Millings’ point about compute becoming a tradable asset class aligns with what management now describes as a $200 billion TAM just for the Vera CPU line. Readers looking for how this coalition of hyperscalers and private-market giants reshapes the next leg of AI winners can find a deeper breakdown in our Next Nvidia Playbook. One flag worth monitoring: insider activity shows 27 recent transactions with a net selling direction, a quiet counterpoint to the institutional bull case the Earn Your Leisure hosts laid out.
Contact [email protected] for any questions or corrections.
Nvidia reports fiscal Q2 earnings with strong revenue momentum, supported by robust hyperscaler demand and elevated Hopper cloud rental pricing. Vera Rubin platform shipments beginning in fiscal Q3 2027 could deliver up to thirty-five times higher inference throughput than Blackwell. Historical post-earnings patterns show frequent short-term profit-taking, creating attractive buying opportunities for long-term investors focused on structural AI growth ahead.
Nvidia Corp. (NASDAQ:NVDA) shares are trading lower on Tuesday as futures point lower and traders continue to digest Monday’s announcement regarding the company’s push to lock in long-duration AI data-center capacity tied to OpenAI.
Tuesday’s drop is likely due to rising geopolitical tensions, as broader markets react to news today that President Trump has ruled out extending a temporary ceasefire agreement with Iran.
Nvidia stock is facing resistance. What’s pulling NVDA shares down?
What Is Nvidia’s AI Strategy and Its Impact?Nvidia is extending its AI strategy beyond chips by partnering with SB Energy to secure land, power, and building capacity at the PORTS-Pike Technology Campus in Pike County, Ohio, with OpenAI set to use the site under a 20-year lease.
The initial deployment targets 4.25 gigawatts of AI computing capacity using Nvidia GPUs, CPUs, networking and software, with an option for another 3.75 gigawatts.
The company also plans to invest $1.5 billion in SB Energy, while estimating each generation deployed at the site could involve about 1.5 million Nvidia GPUs and translate into roughly $150 billion to $200 billion of revenue per generation.
"AI is becoming infrastructure, the foundation for intelligence in every industry and land, power and shell have become vital in the age of AI,” stated Nvidia founder and CEO Jensen Huang. “Now is the time to scale the AI infrastructure that will power the next industrial revolution”.
Nvidia Stock: Key Levels and Momentum AnalysisFrom a trend perspective, Nvidia is still in a constructive longer-term posture: the stock is trading above its 20-day, 50-day, 100-day, and 200-day moving averages, and the 20-day SMA is above the 50-day SMA while the 50-day SMA is above the 200-day SMA (a bullish alignment). That said, with price not far from the 52-week high zone, dips can turn into "buy-the-pullback" tests where bulls want to see support hold without a deeper reset.
MACD is the cleaner momentum lens here: it’s above its signal line and the histogram is positive, which points to improving momentum versus the prior downswing even if the stock chops around near-term. In plain English, MACD above the signal line suggests downside pressure is easing and buyers are regaining some control.
Key Resistance: $232.50 — a nearby ceiling near the upper end of the recent range and not far from the 52-week high ($236.54)
Key Support: $190.00 — a key "line in the sand" area that sits below the 200-day SMA ($195.04), where longer-term buyers often look for the trend to defend
Nvidia Earnings Preview: What Analysts ExpectThe countdown is on: Nvidia Corp is set to report earnings on August 26.
EPS Estimate: $2.07 (Up from $1.04 YoY)
Revenue Estimate: $91.91 Billion (Up from $46.74 Billion YoY)
Valuation: P/E of 34.5x (Indicates premium valuation relative to peers)
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $325.74. Recent analyst moves include:
Wells Fargo: Overweight (Maintains Target to $315.00) (Aug. 11)
Keybanc: Overweight (Raises Target to $330.00) (July 14)
China Renaissance: Initiated with Buy (Target $319.00) (June 5)
Nvidia Benzinga Edge Rankings: Strengths and WeaknessesBelow is the Benzinga Edge scorecard for Nvidia, highlighting its strengths and weaknesses compared to the broader market:
Momentum: Neutral (Score: 69.9) — The trend is constructive, but the stock can still see sharp pullbacks when risk appetite cools.
Quality: Bullish (Score: 97.63) — The scorecard flags strong underlying business quality versus the broader market.
Value: Weak (Score: 5.71) — The market is pricing in a lot of future growth, leaving less room for error on expectations.
Growth: Bullish (Score: 99.21) — Nvidia screens as a top-tier growth name, consistent with the AI infrastructure buildout narrative.
The Verdict: Nvidia’s Benzinga Edge signal reveals a growth-and-quality-led profile with only moderate momentum and a clearly expensive valuation backdrop. For longer-term bulls, that often means pullbacks matter: the trend can stay intact, but entries tend to work best when support levels hold, and expectations don’t get ahead of execution.
NVDA Shares Edge Lower Tuesday MorningNVDA Price Action: Nvidia shares were down 2.25% at $219.95 at the time of publication on Tuesday, according to Benzinga Pro data.
Nvidia Corporation remains a compelling Buy ahead of Q2 FY2027, supported by robust AI infrastructure demand and strong financials. NVDA guides to $91 billion in Q2 revenue, tripling year-on-year, with a 75% gross margin and an EPS consensus at $2.08. Forward P/E of 22–25x and PEG of 0.5 reflect earnings growth outpacing share price, making valuation attractive despite recent gains.
Ekonomická teorie známá jako „crowding out“ říká, že nadměrné zadlužování státu vysává finanční trh, žene výnosy vzhůru a tím omezuje schopnost firem získávat nový kapitál a investovat. Aktuální vývoj na trzích ale naznačuje, že vedle deficitních rozpočtů hrají v růstu výnosů stále významnější roli také hyperscaleři a umělá inteligence.
Jen letos vydaly firmy s investičním ratingem dluhopisy v objemu 1,5 bilionu dolarů, což je přibližně o třetinu více než před rokem. Tempo zadlužování lze přirovnat k období kolem roku 2020, kdy firmy využívaly extrémně nízkých úrokových sazeb.
Dnes je situace odlišná. Výnosy rostou napříč výnosovou křivkou a dluh postupně zdražuje firmám i státu. Investoři mají stále vysoký apetit po expozici na AI a dluhopisy firem jako Alphabet nebo Meta představují atraktivnější a méně rizikovou alternativu k volatilnějším akciím.
Záplava dlouhodobého AI dluhu, za který Alphabet platí například 6,4 % a Meta ještě zhruba o procentní bod více, nutí investory zvažovat, zda je lepší svěřit kapitál na několik dekád historicky velmi úspěšným firmám, nebo americké vládě. Pro srovnání, americké třicetileté dluhopisy nesou 5,32 %, nejvíce za posledních 20 let.
To znovu otevírá debatu o teorii crowding out, podle které firmy postižené vysokými úrokovými sazbami omezují investice a fungují s tím, co mají. V případě americké vlády se to však pravděpodobně nestane. Zároveň zůstává poptávka po AI dluhu velmi silná. Důvody k výraznějšímu poklesu výnosů jsou tak v nejbližších měsících poměrně vzdálené.
Americká vláda utrácí jako nikdy předtím a rozpočtové deficity se dostávají na úrovně běžně pozorované pouze v obdobích hlubokých krizí. To ve spojení s překvapivě odolnou ekonomikou a inflačními tlaky způsobenými konfliktem v Íránu přispívá k růstu výnosů státních dluhopisů.
„Každý, kdo vydává dluh, soutěží s velkým počtem dalších emitentů,“ uvádí Tony Rodriguez, vedoucí dluhopisové strategie v Nuveen Asset Management. Vyšší konkurence automaticky znamená, že investoři požadují vyšší kompenzaci ze strany emitentů.
Největší vliv mají AI dluhopisy na výnosy desetiletých splatností. Ekonomové Bank of America odhadují, že tento efekt letos zvýšil výnosy desetiletých amerických dluhopisů o zhruba 30 bazických bodů. K růstu výnosů však přispěly také emise hypotečních cenných papírů (mortgage-backed securities), které hrály významnou roli už během krize z let 2007 a 2008.
Fondy nakupují AI dluh ve velkém
Podle investiční společnosti Morningstar navýšily fondy zaměřené výhradně na investiční dluhopisy podíl korporátních emisí na úkor méně atraktivního státního dluhu. V průměru nyní drží přibližně 30 % portfolií v korporátních dluhopisech, což je nejvíce za poslední tři roky.
„S příchodem nových emisí se musíme dívat na jejich prémii,“ říká Olumide Owolabi z Neuberger Berman. Do svého fondu spravujícího více než miliardu dolarů zařadil například dluhopisy Oraclu, který patří mezi nejzadluženější hyperscalery. „Státní dluhopisy prodáváme, protože vidíme lepší příležitosti jinde,“ uvedl portfolio manažer.
Tlak na výnosy zároveň komplikuje Trumpův boj za nižší úrokové sazby a levnější hypotéky či půjčky pro americké domácnosti. Pokles výnosů by navíc významně pomohl i americké státní pokladně při financování dluhu.
Za posledních 12 měsíců zaplatila americká vláda na úrocích rekordních 1,4 bilionu dolarů. Náklady na obsluhu dluhu se od roku 2020 ztrojnásobily a pokud sazby zůstanou na současných úrovních, mohou do listopadu 2028 vzrůst až na 1,7 bilionu dolarů.
— The Kobeissi Letter (@KobeissiLetter) August 18, 2026 Umělá inteligence si žádá další kapitál
Velká část hyperscalerů během vrcholu výsledkové sezóny zvýšila výhled kapitálových výdajů na další kvartály. Dá se proto očekávat, že společnosti jako Amazon, Alphabet nebo Nvidia budou na dluhopisový trh chodit pro kapitál i nadále.
Podle odhadů Barclays by objem nově vydaných korporátních dluhopisů mohl letos dosáhnout téměř 1,2 bilionu dolarů, což je meziročně o 474 miliard více. Za většinu tohoto nárůstu by přitom měli stát právě technologičtí giganti.
Hlavním důvodem, proč velké technologické firmy vydávají nové dluhopisy, je klesající provozní cash flow, které nedokáže držet krok s rostoucími CAPEXy. Hyperscaleři již jednoduše negenerují dostatek hotovosti na financování AI infrastruktury z vlastních zdrojů, a proto musí hledat kapitál prostřednictvím nového dluhu nebo emisí akcií.
First Heartland Consultants Inc. trimmed its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 4.1% during the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 70,254 shares of the computer hardware maker’s stock after selling 3,032 shares during the period. NVIDIA comprises approximately 0.9% of First Heartland Consultants Inc.’s investment portfolio, making the stock its 25th largest holding. First Heartland Consultants Inc.’s holdings in NVIDIA were worth $14,057,000 as of its most recent SEC filing.
A number of other hedge funds and other institutional investors also recently made changes to their positions in the stock. Lifetime Wealth Management P.C. bought a new position in shares of NVIDIA during the 4th quarter valued at approximately $26,000. Longview Financial Advisors Inc. purchased a new stake in shares of NVIDIA during the 1st quarter worth approximately $27,000. Longfellow Investment Management Co. LLC raised its holdings in shares of NVIDIA by 47.9% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock worth $33,000 after purchasing an additional 67 shares during the period. Phillip James Consulting Co. purchased a new position in NVIDIA in the first quarter valued at approximately $40,000. Finally, Spurstone Advisory Services LLC bought a new position in NVIDIA during the second quarter valued at $40,000. 65.27% of the stock is owned by hedge funds and other institutional investors.
Analyst Upgrades and Downgrades NVDA has been the subject of several recent research reports. Robert W. Baird set a $500.00 price objective on NVIDIA and gave the stock an “outperform” rating in a report on Thursday, May 21st. BNP Paribas Exane boosted their price target on shares of NVIDIA from $270.00 to $285.00 and gave the company an “outperform” rating in a research report on Thursday, May 21st. Wells Fargo & Company restated an “overweight” rating and set a $315.00 price target on shares of NVIDIA in a research note on Tuesday, August 11th. Bank of America reaffirmed a “buy” rating and issued a $350.00 price objective (up from $320.00) on shares of NVIDIA in a report on Thursday, May 21st. Finally, KeyCorp reissued an “overweight” rating and set a $330.00 target price (up from $310.00) on shares of NVIDIA in a report on Tuesday, July 14th. Three research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of “Buy” and a consensus price target of $305.94.
View Our Latest Report on NVIDIA Trending Headlines about NVIDIA Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: NVIDIA will provide up to $105 billion in financing and credit support for an OpenAI data center campus in Ohio. SB Energy will build and operate the site, while OpenAI has signed a 20-year lease. The project is expected to support approximately 8 gigawatts of NVIDIA-powered computing capacity, creating a potentially significant source of future GPU, networking and systems demand. Nvidia backs financing for OpenAI data center in Ohio Positive Sentiment: NVIDIA is also investing $1.5 billion in SB Energy and will be the exclusive AI-compute provider for the Ohio campus. The arrangement strengthens NVIDIA’s role in developing the power, land and data-center infrastructure needed to sell complete AI systems, rather than chips alone. Nvidia investing $1.5B in SoftBank data center developer Positive Sentiment: Wall Street executives continue to describe AI infrastructure as constrained by power and computing capacity—not capital. BlackRock’s Larry Fink estimates the U.S. alone may need more than 70 gigawatts of power for AI, reinforcing the long-term demand outlook for NVIDIA’s platforms. BlackRock’s Larry Fink discusses AI power demand Positive Sentiment: NVIDIA’s Spectrum-X co-packaged-optics switches have entered mass production, adding another potential growth driver as data-center operators expand high-speed networking capacity. Analysts also expect strong results at the company’s August 26 earnings report. Nvidia Spectrum-X switches enter mass production Neutral Sentiment: The financing strategy is attracting substantial institutional support, but individual fund managers remain divided: some increased NVIDIA positions while others sold shares or bought puts. This signals continued disagreement over how much future AI growth is already reflected in the valuation. Billionaires’ differing NVIDIA trades Negative Sentiment: Investors are questioning the risk of NVIDIA financing data centers that are expected to purchase NVIDIA equipment. Critics characterize this as a circular financing structure that could increase credit exposure and make reported AI demand harder to evaluate. The stock’s elevated valuation leaves less room for execution disappointments. NVIDIA’s circular financing structure NVIDIA Trading Down 0.1% Shares of NVDA opened at $225.01 on Tuesday. The firm’s 50 day simple moving average is $206.47 and its 200 day simple moving average is $198.85. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85. The company has a market capitalization of $5.45 trillion, a P/E ratio of 34.46, a P/E/G ratio of 0.44 and a beta of 2.23. NVIDIA Corporation has a 1-year low of $164.07 and a 1-year high of $236.54.
NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.76 by $0.11. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The company had revenue of $81.61 billion during the quarter, compared to the consensus estimate of $78.42 billion. During the same period in the previous year, the firm posted $0.81 EPS. The firm’s revenue was up 85.2% compared to the same quarter last year. Sell-side analysts forecast that NVIDIA Corporation will post 8.79 earnings per share for the current fiscal year.
NVIDIA Increases Dividend The firm also recently declared a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Thursday, June 4th were given a dividend of $0.25 per share. The ex-dividend date was Thursday, June 4th. This is an increase from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 dividend on an annualized basis and a yield of 0.4%. NVIDIA’s dividend payout ratio (DPR) is 15.31%.
NVIDIA declared that its board has approved a stock buyback program 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 stock through open market purchases. Stock repurchase programs are typically an indication that the company’s management believes its shares are undervalued.
Insider Buying and Selling at NVIDIA In related news, Director Stephen C. Neal sold 15,500 shares of the stock in a transaction 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 transaction, the director owned 116,135 shares of the company’s stock, valued at approximately $25,053,803.55. This trade represents a 11.77% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Mark A. Stevens sold 885,000 shares of NVIDIA stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the completion of the transaction, the director owned 5,207,271 shares in the company, valued at approximately $1,094,412,146.07. The trade was a 14.53% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 1,901,125 shares of company stock worth $410,583,015 over the last ninety days. Insiders own 3.94% of the company’s stock.
About NVIDIA (Free Report)
NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.
The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.
Featured Articles Five stocks we like better than NVIDIA Commodities Are Booming, But These 3 ETFs Tell Different Stories 3 Active ETFs Making Big Moves in August This ETF Is Outperforming by Avoiding the S&P 500’s Biggest Problem Birkenstock Beats the Skeptics—But Not on EPS 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).
Receive News & Ratings for NVIDIA Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NVIDIA and related companies with MarketBeat.com's FREE daily email newsletter.
Chesley Taft & Associates LLC trimmed its position in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 1.8% in the 2nd quarter, according to its most recent disclosure with the SEC. The institutional investor owned 464,689 shares of the computer hardware maker’s stock after selling 8,483 shares during the quarter. NVIDIA makes up approximately 3.6% of Chesley Taft & Associates LLC’s investment portfolio, making the stock its 2nd largest position. Chesley Taft & Associates LLC’s holdings in NVIDIA were worth $92,980,000 at the end of the most recent quarter.
Several other hedge funds have also recently added to or reduced their stakes in NVDA. Lifetime Wealth Management P.C. purchased a new position in shares of NVIDIA in the fourth quarter worth about $26,000. Longview Financial Advisors Inc. acquired a new stake in NVIDIA in the 1st quarter valued at about $27,000. Longfellow Investment Management Co. LLC lifted its stake in NVIDIA by 47.9% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock worth $33,000 after purchasing an additional 67 shares in the last quarter. Phillip James Consulting Co. acquired a new position in shares of NVIDIA during the 1st quarter worth approximately $40,000. Finally, Spurstone Advisory Services LLC acquired a new position in shares of NVIDIA during the 2nd quarter worth approximately $40,000. 65.27% of the stock is owned by institutional investors and hedge funds.
NVIDIA News Roundup Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: NVIDIA will provide up to $105 billion in financing and credit support for an OpenAI data center campus in Ohio. SB Energy will build and operate the site, while OpenAI has signed a 20-year lease. The project is expected to support approximately 8 gigawatts of NVIDIA-powered computing capacity, creating a potentially significant source of future GPU, networking and systems demand. Nvidia backs financing for OpenAI data center in Ohio Positive Sentiment: NVIDIA is also investing $1.5 billion in SB Energy and will be the exclusive AI-compute provider for the Ohio campus. The arrangement strengthens NVIDIA’s role in developing the power, land and data-center infrastructure needed to sell complete AI systems, rather than chips alone. Nvidia investing $1.5B in SoftBank data center developer Positive Sentiment: Wall Street executives continue to describe AI infrastructure as constrained by power and computing capacity—not capital. BlackRock’s Larry Fink estimates the U.S. alone may need more than 70 gigawatts of power for AI, reinforcing the long-term demand outlook for NVIDIA’s platforms. BlackRock’s Larry Fink discusses AI power demand Positive Sentiment: NVIDIA’s Spectrum-X co-packaged-optics switches have entered mass production, adding another potential growth driver as data-center operators expand high-speed networking capacity. Analysts also expect strong results at the company’s August 26 earnings report. Nvidia Spectrum-X switches enter mass production Neutral Sentiment: The financing strategy is attracting substantial institutional support, but individual fund managers remain divided: some increased NVIDIA positions while others sold shares or bought puts. This signals continued disagreement over how much future AI growth is already reflected in the valuation. Billionaires’ differing NVIDIA trades Negative Sentiment: Investors are questioning the risk of NVIDIA financing data centers that are expected to purchase NVIDIA equipment. Critics characterize this as a circular financing structure that could increase credit exposure and make reported AI demand harder to evaluate. The stock’s elevated valuation leaves less room for execution disappointments. NVIDIA’s circular financing structure NVIDIA Stock Performance Shares of NVIDIA stock opened at $225.01 on Tuesday. The stock has a market capitalization of $5.45 trillion, a price-to-earnings ratio of 34.46, a price-to-earnings-growth ratio of 0.44 and a beta of 2.23. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85. The business has a 50-day moving average of $206.47 and a 200 day moving average of $198.85. NVIDIA Corporation has a 12 month low of $164.07 and a 12 month high of $236.54. NVIDIA (NASDAQ:NVDA – Get Free Report) last issued its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.76 by $0.11. The company had revenue of $81.61 billion for the quarter, compared to analyst estimates of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The business’s revenue for the quarter was up 85.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.81 earnings per share. As a group, sell-side analysts forecast that NVIDIA Corporation will post 8.79 earnings per share for the current year.
NVIDIA announced that its Board of Directors has authorized a stock buyback program on Wednesday, May 20th that authorizes the company to buyback $80.00 billion in outstanding shares. This buyback authorization authorizes the computer hardware maker to buy up to 1.5% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s board of directors believes its shares are undervalued.
NVIDIA Increases Dividend The firm 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 represents a $1.00 annualized dividend and a yield of 0.4%. The ex-dividend date of this dividend was Thursday, June 4th. This is an increase from NVIDIA’s previous quarterly dividend of $0.01. NVIDIA’s payout ratio is currently 15.31%.
Insiders Place Their Bets In other NVIDIA news, Director Mark A. Stevens sold 885,000 shares of the 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 in the company, valued at $1,094,412,146.07. This represents a 14.53% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Stephen C. Neal sold 15,500 shares of the business’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 completion of the transaction, the director owned 116,135 shares of the company’s stock, valued at approximately $25,053,803.55. This trade represents a 11.77% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 1,901,125 shares of company stock worth $410,583,015 in the last ninety days. 3.94% of the stock is owned by corporate insiders.
Analyst Upgrades and Downgrades Several equities research analysts recently commented on the company. President Capital increased their price target on NVIDIA from $280.00 to $295.00 and gave the company a “buy” rating in a report on Thursday, May 21st. Sanford C. Bernstein restated a “buy” rating on shares of NVIDIA in a report on Monday, June 29th. Zacks Research raised NVIDIA from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 20th. Wedbush lifted their price target on NVIDIA from $300.00 to $330.00 and gave the stock an “outperform” rating in a report on Thursday, May 21st. Finally, Benchmark reiterated a “buy” rating and set a $335.00 price target (up from $250.00) 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 given a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, NVIDIA has an average rating of “Buy” and a consensus price target of $305.94.
Check Out Our Latest Research Report on NVIDIA
NVIDIA Profile (Free Report)
NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.
The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.
Featured Articles Five stocks we like better than NVIDIA Commodities Are Booming, But These 3 ETFs Tell Different Stories 3 Active ETFs Making Big Moves in August This ETF Is Outperforming by Avoiding the S&P 500’s Biggest Problem Birkenstock Beats the Skeptics—But Not on EPS
Receive News & Ratings for NVIDIA Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NVIDIA and related companies with MarketBeat.com's FREE daily email newsletter.
In the past week, Nvidia has announced a pact with Wall Street firms to pursue $500 billion worth of financing for chips, and has agreed to support OpenAI in Ohio to the tune of up to $105 billion. While the chipmaker maintains its dominance in the market for AI processors, it's increasingly showing its willingness to take advantage of another great asset: capital.
Although the bulk of earnings season is now in the rearview mirror, arguably the most consequential report is yet to come.
After the closing bell on Aug. 26, the face of the artificial intelligence (AI) revolution, Nvidia (NVDA -0.07%), will lift the hood on its latest quarterly operating results. As has been customary for much of the last four years, Nvidia is expected to blow past Wall Street's consensus sales and profit forecasts. But if history rhymes, once again, it won't be enough to drive the company's lofty valuation higher.
Image source: Nvidia.
Nvidia has made a habit of crushing analysts' estimates Based on current estimates, Nvidia is expected to deliver nearly $91.9 billion in fiscal second-quarter sales (up 96% from the year-ago quarter) and earnings per share (EPS) of $2.08. With an average EPS beat of $0.065 over the last four quarters, Nvidia is hurdling profit expectations by roughly $1.5 billion per quarter.
There's no secret to Nvidia's formula for success. The company's graphics processing units (GPUs) are superior, and Wall Street's most influential businesses have shown a willingness to pay a premium for the best products in the AI arena. With no competitors particularly close to matching or surpassing the compute capabilities of Nvidia's core GPU lineup, it's been able to charge a hearty premium.
NVDA Gross Profit Margin (Quarterly) data by YCharts.
Additionally, Nvidia has been buoyed by a persistent GPU supply shortage. When demand for a good or service outstrips its supply, prices go up until demand tapers off. With no immediate end in sight to this GPU supply demand mismatch, Nvidia has consistently raked in a gross margin of around 75%.
Unfortunately for investors, Nvidia's headline figures tell only part of the story.
Image source: Getty Images.
History shows that losing streaks often follow Nvidia's operating results Although history can't guarantee what's to come on Wall Street, past events have an uncanny ability to predict the future more often than not. In Nvidia's case, history predicts another losing streak following its upcoming earnings release.
Following each of Nvidia's previous four earnings releases, its shares have endured at least a two-day losing streak:
Q1 2027: (1.77%) decline the following day / (3.64%) two-day decline Q4 2026: (5.46%) / (9.39%) Q3 2026: (3.15%) / (4.10%) Q2 2026: (0.79%) / (4.09%) On average, Nvidia stock has dropped 2.79% the day after it reports its operating results and 5.31% over the two days following its quarterly earnings. For context, a 5.31% decline would shave $290 billion off Nvidia's valuation, based on its Aug. 13 close.
Today's Change
(
-0.07
%) $
-0.15
Current Price
$
225.01
These persistent sell-offs after earnings likely reflect the otherworldly expectations that investors have placed on the face of the AI revolution. There's simply no earnings beat or sales/profit guide that would be sufficient to satisfy these lofty expectations.
Furthermore, historical headwinds are still working against Nvidia. Since the mid-1990s, we've yet to see a game-changing technology avoid an eventual bubble-bursting event early in its expansion.
AI finds itself on a path similar to the internet. While early adoption wasn't an issue for either game-changing technology, it took businesses until well after the dot-com bubble burst to optimize internet-based solutions. It'll likely take years before businesses are able to optimize AI solutions to boost sales and profits.
If history rhymes, yet again, Aug. 27-28 will mark a rough stretch for Nvidia's shareholders.
Nvidia (NVDA -0.07%) is helping connect AI infrastructure with more than $500 billion of potential third-party capital. That could make AI compute easier to finance while challenging the idea that NVIDIA's future must remain tied to a cyclical hardware market. This video explores the opportunity, the valuation, and the risks investors need to watch.
Stock prices used were the market prices of Aug. 13, 2026. The video was published on Aug. 17, 2026.
Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
Nvidia (NVDA -0.07%) said on Monday that it will back as much as $105 billion in financing for a massive OpenAI data center campus in Ohio. The chipmaker will also invest $1.5 billion into SB Energy, the SoftBank unit developing the site.
In return, OpenAI committed to exclusively using Nvidia chips onsite.
Today's Change
(
-0.07
%) $
-0.15
Current Price
$
225.01
OpenAI's 8-gigawatt data center is massiveOpenAI will lease the site for 20 years, which will eventually grow to provide 8 gigawatts (GW) of compute -- a massive target. That's more than enough energy to power New York City on a typical day. It's also an expensive target; each GW typically costs something like $50 to $60 billion.
The power won't come online all at once, however. The project is planned in phases: roughly 0.8 GW in 2028, growing to 4.25 GW, then the full 8 GW.
How Nvidia's $105 billion guarantee actually worksThe $105 billion backstop is not a direct investment, but a guarantee. It means that, in the event OpenAI can't pay its bills, Nvidia will step in to cover any unpaid lease and power obligations. Nvidia owes nothing unless a default actually happens, and the absolute limit the company would be on the hook for is the headline number of $105 billion.
But the promise alone helps OpenAI secure key funding it needs to build the site. And though there's no cost to Nvidia upfront, it's expected to lead to serious revenue. The company expects the first 4.25 GWs alone to bring in about $200 billion in chip sales.
Nvidia is doubling down on AI infrastructure financingThe announcement comes at a complicated time for Nvidia and the AI industry. Many investors are nervous about the increasingly tangled ecosystem of financing between Nvidia and its top customers. Just last week, the company said it's teaming up with BlackRock, Apollo, Blackstone, and others to raise more than $500 billion for AI infrastructure, offering to backstop up to $125 billion of it.
Why investors should watch this deal closelyIf OpenAI pays its bills, Nvidia books 100s of billions in revenue and never has to write a check. That could be a pretty great deal.
The problem is that there's a real chance OpenAI runs out of money. The ChatGPT creator is on the hook for something like $750 billion over the next 4 years. This is a company that, while growing sales at lightning speed, is losing money just as fast. It's unclear how it expects to pay for all that it has committed to unless something changes.
If OpenAI does stumble, it could have serious consequences for Nvidia. Even without these backstops, Nvidia's top-line is heavily reliant on OpenAI. Most of the companies that purchase Nvidia's most advanced chips are either directly or indirectly reliant on OpenAI.
If that happens, Nvidia would be on the hook for a data center in Ohio at the exact moment its biggest customer's orders dry up.
Of course, there's no guarantee that's what will happen. OpenAI could very well meet its obligations, and Nvidia will be the richer for it. Still, it's a risk you should take into account.
Tech StocksSome big names saw sizable paper gains on their SpaceX stakes when the stock went public, but trading has been volatile since thenUpdated
SpaceX shares are rising, and that’s good news for some high-profile companies and public figures whose stakes in the company have been revealed.
The release of 13F and other regulatory filings late last week showed how much money notable entities had tied up in SpaceX SPCX as of the end of June. Alphabet GOOG GOOGL, for instance, owns about 7.2% of SpaceX’s outstanding shares as of June 30, according to an Aug. 14 filing.
SpaceX investment has grown into a roughly $94 billion holding, giving the technology giant the largest institutional position disclosed after the private space company's $86 billion initial public offering.
Alphabet first invested $900 million in SpaceX in 2015. Based on the latest disclosed valuation, that stake has increased more than 100-fold over the past decade.
Other major investors have also disclosed SpaceX holdings. Nvidia (NVDA) reported about 122.76 million shares, while Advanced Micro Devices
AMD -1.63% 81
disclosed a new position of roughly 3.31 million shares.
Saudi Arabia's Public Investment Fund reported approximately 154.15 million shares, and D1 Capital disclosed about 126 million shares. Tiger Global and Viking Global also reported SpaceX positions, while Fidelity Investments and Hancock Prospecting were among other notable holders.
The figures come from quarterly institutional filings, which can lag actual trading activity. The disclosures do not indicate whether investors face restrictions on selling their shares or whether they have changed their positions since June 30.
Alphabet's long-standing investment provides a rare reference point for measuring how the value of an early SpaceX stake has changed over time.
Chip-making giant Nvidia will provide up to $105 billion in financing toward a massive AI data center in Ohio that will be leased by Sam Altman’s OpenAI and is expected to be one of the largest of its kind in the world, the companies announced Monday.
OpenAI has inked a 20-year deal for the site, which will ultimately provide about eight gigawatts of computing capacity that will help support products like ChatGPT, the companies said. In energy terms, a single gigawatt can power about 750,000 homes.
“This is going to be a huge site, with enough computing power to help millions of people use AI to do things we can only start to imagine today, from finding new medicines to starting businesses and solving hard problems,” Altman said in a statement.
Nvidia CEO Jensen Huang delivers a keynote address at the Consumer Electronics Show in Las Vegas in January 2025. AFP via Getty Images OpenAI said the data center project is “expected to create 35,000 construction jobs during its six-year buildout through 2032 and 2,500 long-term operating jobs.”
Nvidia will serve as the exclusive computer chip provider for the facility, to be located in Ohio’s Pike County. The first 800 megawatts of “compute” is expected to be available for use by 2028.
As part of the arrangement, Nvidia is also pouring $1.5 billion into SB Energy, a data center firm that’s a subsidiary of Masayoshi Son’s SoftBank.
“We are securing long-lived infrastructure for Nvidia compute so OpenAI can deploy the most productive AI factories that can be upgraded repeatedly with each new generation delivering more intelligence and better economics,” Nvidia CEO Jensen Huang said in a press release.
The company has come under scrutiny for providing funding for AI labs even as those companies buy its expensive AI computer chips and other data center-related infrastructure.
OpenAI CEO Sam Altman arrives for a meeting at the White House in Washington, DC, on July 30. REUTERS Huang said the arrangement was not a form of “circular financing” and noted that OpenAI would pay the lease. Nvidia’s financing will backstop “defined portions of lease and power payments” rather than the full cost of the project, he added.
In all, OpenAI’s commitments to buy Nvidia hardware and compute capacity will reach $600 billion by 2030, according to Huang.
The Ohio project will be closely watched on Wall Street, where investors have grown increasingly concerned about the huge sums being paid by AI firms as they race to develop advanced AI.
Other critics have focused on the huge energy demands associated with AI models and raised concerns that soaring costs will be passed on to ordinary Americans. Recent months have seen a series of headline-grabbing anti-data center protests, though more than half of Americans have a favorable view toward artificial intelligence, a survey found.
NVIDIA Corp (NASDAQ:NVDA) stock has been one of the top gainers over the past five years, with the company becoming the ninth public company to hit a market capitalization of $1 trillion or more. While Nvidia stock has dominated several top-performing lists over the last 20 years, the stock ranks fifth in five-year returns.
• Nvidia stock is showing upward bias. What’s ahead for NVDA stock?
Top Performing Stocks Past Five YearsNvidia stock has regularly battled Apple Inc (NASDAQ:AAPL) stock over the past year for the title of most valuable company in the world. When it comes to the stock with the biggest gain in recent years, that title actually belongs to an HVAC and plumbing company.
Comfort Systems USA (NYSE:FIX) is the top-performing stock over the past five years with a total return of +2,274, according to data shared on social media by Charlie Bilello, who is chief market strategist at Creative Planning.
Nvidia ranks fifth over the last five years for total return. Here is the top five list shared by Bilello:
Top Performing Stocks Other Time PeriodsWhile Nvidia ranks only fifth for the past five years, the semiconductor stock dominates other multi-year return lists as shown below.
Nvidia: +76,248% Tesla Inc (NASDAQ:TSLA): +19,414% Broadcom Inc (NASDAQ:AVGO): +17,545% Micron Technology: +16,026% Axon Enterprise (NASDAQ:AXON): +15,654% Top Stocks 20-Year Total Return
Nvidia: +63,261% Netflix Inc (NASDAQ:NFLX): +27,380% Monolithic Power Systems (NASDAQ:MPWR): +19,745% Amazon.com Inc (NASDAQ:AMZN): +19,700% Comfort Systems: +17,198% What Investors Should KnowNvidia and Comfort Systems both make the top five for five-year and 20-year returns. Most of the lists look somewhat different, especially when investors look at Bilello’s tweet beyond the top five.
While only the top five of each period are shared above, here’s a look at the companies that made the top 20 in more than one time period, with rankings in order for five-year, 10-year, 15-year and 20-year:
Nvidia: 5th, 1st, 1st, 1stMicron: 2nd, 3rd, 5th, 15thSeagate: 3rd, 5th, 7th, 11thLumentum: 4th, 10th, NA, NAComfort Systems: 1st, 4th, 2nd, 5thBroadcom: 12th, NA, 4th, NAArista Networks (NYSE:ANET): 14th, 7th, NA, NACiena Corporation (NYSE:CIEN): 15th, 19th, NA, NAQuanta Services (NYSE:PWR): 16th, 11th, 19th, NAEMCOR Group (NYSE:EME): 17th, NA, 20th, NAAdvanced Micro Devices: NA, 2nd, 12th, NALam Research Corporation (NASDAQ:LRCX): NA, 6th, NA, 12thKLA Corporation (NASDAQ:KLAC): NA, 8th, 10th, 13thFortinet Inc (NASDAQ:FTNT): NA, 12th, 18th, NATesla: NA, 13th, 3rd, NAAxon Enterprises: NA, 15th, 6th, 14thApplied Materials (NASDAQ:AMAT): NA, 17th, 14th, NAMonolithic Power: NA, 18th, 8th, 3rdTexas Pacific Land (NYSE:TPL): NA, 20th, 11th, 9thUnited Rentals (NYSE:URI): NA, NA, 13th, 17thOver the last 20 years, some of the best performing stocks have continued to be top gainers across every five year period, but that number is limited. Only four stocks ranked among the top 20 in each of the five-year periods. Twenty stocks made the top 20 in at least two of the time periods.
Only four of the Magnificent Seven stocks made at least one list with Apple also ranking seventh in the 20-year returns. Meta, Microsoft and Alphabet failed to make a single top 20 list.
Investors can see from the charts that the top performing stocks are constantly changing, while some may remain the same going forward for the next five years, it’s likely they won’t. Once gains of 1,000% or more are made, it’s harder for a stock to keep growing at the same exponential pace.
Bill Ackman and Pershing Square Capital (NYSE:PS) have unveiled their portfolio for the second quarter, which includes several new stocks added. The quarter also included major changes to Ackman's growing bets on the Magnificent Seven stocks.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Bridgewater Associates founder Ray Dalio has made NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) one of the largest AI positions in his firm’s disclosed book. The question for retail investors is whether the world’s most valuable chipmaker still has room to run after a 20%+ move year to date.
My 24/7 Wall St. price target for NVIDIA is $271.46, implying 20.56% upside from $225.16. The recommendation is buy with 90% confidence.
24/7 Wall St. Price Target Summary Metric Value Current Price $225.16 24/7 Wall St. Price Target $271.46 Upside 20.56% Recommendation BUY Confidence Level 90% A Blockbuster Quarter That Still Left Room for Upside NVIDIA is up 20.87% YTD and 23.86% over the past year, yet shares trade roughly 5% off the 52-week high of $236.26.
The May Q1 FY2027 earnings showed revenue of $81.615 billion beating estimates by 3.16%, non-GAAP EPS of $1.87 beating by 5.42%, and Data Center revenue jumping 92% YoY to $75.246 billion. Management guided Q2 revenue to $91 billion ± 2% with non-GAAP gross margin at 75%.
Why Bulls See a Path to $315 The bull case reaches $315.38, a 40.07% total return. Three catalysts support it. First, Vera Rubin production ships in Q3 2026 with claimed 35x higher inference throughput versus Blackwell.
Second, the Vera CPU opens a $200 billion TAM NVIDIA has never addressed.
Third, management sees Blackwell and Rubin revenue visibility of $1 trillion from 2025 through calendar 2027, with hyperscale capex projected to top $1 trillion in 2027. Street consensus at $302.83 reflects 58 buy ratings against just 1 sell.
What Could Go Wrong The bear case pins the stock at $234.26 for a 4.04% return. Risks include continued China exclusion (Q2 guidance excludes any Data Center compute revenue from China), customer concentration with hyperscalers at 50% of Data Center revenue, and total supply commitments at $145 billion, which magnifies demand shortfalls.
Insider activity skewed to selling across 27 recent transactions. Bulls counter that supply commitments track a demand backlog Jensen Huang described as parabolic, and the H20 hit produced a $4.50B inventory charge a year ago that flatters current YoY comps.
How NVIDIA Compares to AMD and Broadcom AMD (NASDAQ:AMD) is the closest merchant GPU alternative and won a landmark 6-gigawatt OpenAI deployment. AMD trades at a P/E of 194 versus NVIDIA’s 45, with Q2 FY2026 revenue of $11.54 billion and net margins near 13%, well below NVIDIA’s 55.6%. That valuation gap makes my $271 target look conservative on quality-adjusted profitability.
Broadcom (NASDAQ:AVGO) is the custom-silicon foil, with AI semiconductor revenue guided to $16 billion in Q3 FY2026, more than 200% YoY. Broadcom’s $1.87 trillion market cap reflects hyperscaler ASIC share taking, yet NVIDIA outgrows it on revenue while trading at similar multiples. The peer group makes my target reasonable on a quality-adjusted basis.
NVIDIA Price Prediction 2026-2030 My 24/7 Wall St. price target is $271.46 with a buy rating and 90% confidence. The tipping factor is the visibility management has booked into fiscal 2027.
I’d buy here if the August 26 Q2 report holds gross margin at 75% and reiterates Rubin timing. I’d stay on the sidelines if China risk resurfaces as incremental supply glut.
These projections extend our model forward using the base case trajectory of 12.07% annualized returns.
Year 24/7 Wall St. Price Target 2026 $271.46 2027 $304.24 2028 $340.97 2029 $382.13 2030 $398.10 These assume NVIDIA continues executing on Rubin and Vera CPU ramps. Upside could come from China re-entry, while downside risk centers on hyperscaler capex normalization.
Contact [email protected] for any questions or corrections.
If you've been following the stock market this year or the artificial intelligence (AI) boom, you had to have heard of Nebius (NBIS -0.27%) by now. The stock is on an absolute tear, up more than 200% this year. The stock jumped almost 50% last week alone.
Nebius' revenue is on track to roughly quadruple this year, but the stock still sits in a gray zone where some investors see a future AI infrastructure giant and others see a capital-hungry niche player priced for perfection. The debate comes down to what Nebius is actually building, how durable that revenue is, and whether the current valuation already assumes most of the upside.
Today's Change
(
-0.27
%) $
-0.74
Current Price
$
276.94
Explosive revenue growth Nebius' growth is coming in huge steps. In Q1 2026, revenue hit $399 million, up 684% versus about $51 million a year earlier, and up 75% from Q4. Its AI cloud unit produced $389.7 million in Q1, an 841% year-over-year increase, and by Q2, total revenue reached $582.3 million as AI cloud sales rose nearly sixfold, beating analyst expectations. Management projects $3 billion to $3.4 billion of revenue this year, which would be roughly quadruple 2025 revenue and put Nebius into midtier hyperscaler territory based on the top line alone.
Image source: Getty Images.
What Nebius actually sells Nebius offers a specialized AI native cloud, not a general-purpose cloud like Amazon Web Services or Microsoft's Azure. It offers non-virtualized GPU clusters, fast networking, and a full stack of tools for training, fine-tuning, and inference, built for large models rather than traditional enterprise workloads. Customers can spin up GPU capacity in minutes, scale clusters elastically, and pay under flexible consumption models tuned to AI training and inference rather than generic computing hours. That focus lets Nebius pitch better performance and a lower total cost of ownership to AI natives and enterprises that prioritize raw training throughput over deep integration with a broader cloud ecosystem.
Capacity, capital and contracts The revenue ramp-up is not happening in a vacuum. Nebius has signed multibillion-dollar AI cloud contracts, including at least four core infrastructure deals averaging more than $1 billion each, and has raised its contracted power target to 5 gigawatts (GW) to support those workloads. It's spending heavily to keep up. The company anticipates $20 billion to $25 billion of capital expenditure (capex) in 2026 alone, mostly on GPUs, data center build-outs, and related hardware, on top of earlier plans in the $16 billion to $20 billion range. To relieve some of that pressure, Nebius has rolled out an infrastructure partnership model where third-party operators finance and own AI data centers, while the company provides its architecture, hardware design, and software stack, and then sells the resulting capacity through its global marketing organization.
The problem is that the stock already prices in a lot of this story. At recent levels, Nebius trades at a lofty 57 times sales, doesn't earn a profit, and is a business that leans on premium pricing in a supply-constrained GPU market. Bears worry that as GPU capacity from Nvidia (NVDA +0.15%), hyperscalers, and rivals like CoreWeave (CRWV +4.36%) grows, Nebius will lose some pricing power, forcing it to compete more on service and economics and less on scarcity, which would pressure margins and slow its revenue expansion that many analyst estimates assume.
Today's Change
(
0.15
%) $
0.35
Current Price
$
225.51
On the other hand, supporters point out that demand for AI infrastructure continues to outstrip supply and that Nebius is locking in long-term, multibillion-dollar contracts and global capacity partnerships that could turn today's revenue surge into a more durable base. The reason analysts are still debating it is simple. Nebius sits right at the intersection of a historic AI computing boom and the hard realities of building and financing data centers at scale. Quadrupling revenue is impressive, but whether that's enough for the stock depends on how long Nebius can turn scarce capacity and focused engineering into a lasting advantage.
Nvidia Corp. (NVDA, Financials), the AI chipmaker, is reportedly in talks to invest as much as $3 billion in SB Energy, a SoftBank subsidiary developing a large Ohio data center campus for OpenAI.
The proposed investment would come alongside broader financing discussions involving Nvidia, OpenAI and SB Energy. Nvidia has also discussed providing about $100 billion in credit support for the project, according to The Information.
About half of the proposed $3 billion investment could be made when the Ohio deal is signed, with the rest tied to SB Energy's planned IPO. SB Energy is reportedly targeting a public listing as soon as next month and could raise at least $5 billion.
The talks show Nvidia taking a more direct role in financing the infrastructure behind AI demand, not just supplying chips.
That strategy could help support long-term demand for Nvidia hardware, but it also increases the company's financial exposure to the buildout itself.
For investors, the key question is how far Nvidia is willing to go in financing the customers and projects that ultimately buy its chips.
Nvidia said on Monday that it had agreed to spend as much as $105 billion to back one of the world’s largest data centers, which is being built in Ohio and will be leased to OpenAI.
The sum is one of the largest from Nvidia toward supporting A.I. labs that are seeking more computing power. Jensen Huang, Nvidia’s chief executive, said in a blog post that the company would use the money to guarantee “lease and power payments” at the site. He added that A.I. labs “are growing faster than their balance sheets and long-term credit profiles can support.”
Nvidia’s financing for the Ohio data center, a project that could cost as much as $500 billion, is part of the complex dealmaking behind the A.I. boom. Using unusual arrangements with chipmakers, cloud computing providers and governments, start-ups like OpenAI and Anthropic are gaining access to computing power that they could not afford by themselves.
Many of these deals are circular, with an A.I. start-up receiving billions of dollars from technology giants before spending those billions on the same companies to pay for chips, cloud computing and other services. Nvidia previously invested $30 billion in OpenAI, and the data center in Ohio will use only Nvidia’s chips.
Mr. Huang said in the blog post that Nvidia’s financing for the Ohio data center was not circular because “OpenAI will pay the lease.”
In turn, OpenAI said in a blog post that it would lease the Ohio site “only as completed capacity becomes available,” meaning it may not pay anything until the data center starts coming online in 2028. OpenAI agreed to a 20-year lease for the site, which will provide it eight gigawatts of computing capacity, or enough electricity to power about six million households in the United States.
Nvidia’s financing will support 4.25 of those gigawatts, though the company could extend its arrangement to the remaining gigawatts.
Nvidia and OpenAI had previously discussed the chipmaker’s providing $250 billion in financial backing for the Ohio data center.
Nvidia also said on Monday that it had agreed to invest $1.5 billion in SB Energy, a subsidiary of the Japanese conglomerate SoftBank that will build, own and operate the data center in Ohio.
Nvidia has taken other steps to finance the A.I. boom. Last week, the company and six giant asset managers, private equity firms and banks announced an effort to raise $500 billion in financing for Nvidia’s customers to pay for chips, data centers and computing power.
(The New York Times sued OpenAI and Microsoft in 2023, claiming copyright infringement of news content related to A.I. systems. The two companies have denied those claims.)
Kalley Huang is a Times reporter in San Francisco, covering Apple and the technology industry.
Nvidia (NVDA) is expected to nearly double last year's revenue in next week's earnings. Adam Coons expects investors to focus on ways the Mag 7 giant will continue its explosive growth.
Space Exploration Technologies Corp (SPCX +4.96%), also known as SpaceX, is investing heavily in artificial intelligence (AI). While the business may be known for its rockets, it's actually the AI segment of its operations that takes up the lion's share of its capex. While that can lead to significant growth potential for SpaceX and help the stock become more valuable in the future, there's plenty of risk involved with it.
The stock that might inevitably be the biggest winner from SpaceX's feverish AI spending is none other than chipmaking giant Nvidia (NVDA +0.15%). Here's why.
Image source: Getty Images.
Elon Musk gives high praise for Nvidia's top chip On SpaceX's most recent earnings call, CEO Elon Musk stated that the company is going to rely on Nvidia's chips for its AI build-out.
Going forward, we've decided to build exclusively on Nvidia, because we think the Vera Rubin architecture is the best architecture. We think it's the best AI computer, and we greatly value our close cooperation and partnership on many levels with Nvidia.
Spending on AI has been massive for SpaceX, whose capex on that area of its business during just the past three months totaled $15.8 billion, more than doubling from the March quarter, when it totaled $7.7 billion. AI is far and away the biggest component of its capex, accounting for 86% of its expenditures last quarter.
Today's Change
(
4.96
%) $
6.95
Current Price
$
146.95
This year, SpaceX expects to have about two gigawatts of compute capacity, potentially rising to 10 gigawatts by next year. SpaceX owns xAI and rents out compute capacity to customers. It also generates revenue from subscriptions for its Grok chatbot and social media platform, X.
The company's AI revenue totaled $2.6 billion last quarter, more than tripling the $818 million it generated just three months earlier. With its AI spending expected to intensify, that leaves Nvidia looking like the big winner from all this, because despite all the growth, SpaceX still incurred a loss of $1.3 billion on its AI segment during its most recent quarter; it's still a highly risky investment.
Today's Change
(
0.15
%) $
0.35
Current Price
$
225.51
Nvidia is still a much safer investment option than SpaceX Although SpaceX may be the shiny new growth stock on the market, its valuation is incredibly high, with a market cap of around $1.9 trillion. It's Nvidia that makes for a better all-around investment today due to its fundamentals and a more reasonable valuation, based on earnings rather than sheer hype and expectations.
Not only is Nvidia highly profitable, but it's also growing rapidly and stands to benefit significantly from companies' continued heavy investment in AI, including SpaceX. It's the better AI stock to own for both the long term and the short term.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Steve Eisman, the man who bet against housing on the cusp of the Great Financial Crisis, hasn’t been nearly as bearish on the AI boom as you’d think, at least not half as bearish as Dr. Michael Burry, who also shorted housing before its collapse back in 2008. Eisman, who’s moved on from Neuberger Berman to run his own show with The Real Eisman Playbook, recently had a sit-down with CNBC, warning that China could cause an AI price war of sorts.
Whether Chinese models, which are leading the charge lower on costs, end up steering the AI race in another kind of direction, remains the multi-trillion-dollar question. And while Eisman has one of the most balanced approaches amid this AI revolution, he did remark on one important risk that could have a far-reaching impact across much of big tech, perhaps more far-reaching than most investors and analysts realize.
Steve Eisman noted that there might be an “Achilles’ heel” in this AI revolution, especially if “something bad happens to Anthropic and OpenAI.”
Indeed, a big chunk of big tech has far too many eggs in the baskets of either or both AI labs. And if China were to start taking market share with their cheaper open-weight model, perhaps Eisman is right to shine a light on the rise of very capable and affordable new Chinese models. In my view, Eisman is right to highlight the risks that few investors may consider as they prepare for the big IPOs of Anthropic and, eventually, OpenAI.
This wouldn’t be the first time a Chinese model upended the AI trade Having a look at the large language model (LLM) leaderboards, you’ll see that Anthropic and OpenAI models are still at the top of the pack. But not too far behind lie some models from Chinese companies that are leading on price. Whether we’re talking about Kimi K3, Qwen 3.8 Max from Alibaba (NASDAQ:BABA | BABA Price Prediction), GLM-5.2 from Z AI, or DeepSeek V4 Pro from DeepSeek, the Chinese AI innovators are more than worth keeping tabs on.
Even if it’s unlikely that Chinese models crack the top three over the medium term, these Chinese firms are serious challengers on price, and with all the buzz surrounding open-weights, questions linger as to whether their very unique take on AI could be the one that ultimately gains share and wins the race from out of left field.
So, while OpenAI and Anthropic may be in the top two spots for now, questions linger as to how long they’ll stay there and what could happen if they’re forced to lower the bar on price more aggressively in response to dirt-cheap Chinese models.
Indeed, both companies are spending obscene sums of cash. And any price cuts would push them even further away from breaking even. With OpenAI recently slashing prices for two of its popular ChatGPT-5.6 AI models, it feels like a price war of sorts has already begun.
Chinese AI models are on the ascent, and they do pose a serious risk to the AI trade Though it’s too early in the game to tell if Chinese model makers have put their foot on the gas in a race to the bottom in pricing, I do think that the commoditization of AI models is a gigantic question mark for investors to ponder, especially given how much the hyperscalers and Oracle (NYSE:ORCL) stand to benefit from the success of OpenAI and Anthropic.
As for Nvidia (NASDAQ:NVDA), a price war is less than ideal, at least in my humble opinion. If OpenAI and Anthropic start lowering prices, and signs point to a more rapid commoditization curve, perhaps the only reasonable thing for the hyperscalers to do is to put a cap on CapEx, or worse, trim into that CapEx. Despite strong AI demand, I do think that a price war warrants CapEx discipline, which, in turn, might lead to moderating growth for some of the top semi plays moving forward.
Of course, if Chinese AI labs do end up taking significant share and Nvidia can’t gain ground in the Chinese market, the firm might be in for a bit of a nasty correction, perhaps one that jolts Dr. Burry’s short. Any way you look at it, Eisman is right: Chinese AI is a risk that AI investors need to keep tabs on, especially given the hefty negative cash flows of OpenAI and Anthropic, and how much skin the hyperscalers and other tech titans have in the game.
Contact [email protected] for any questions or corrections.
Nvidia will provide up to $105 billion in financing for a new artificial intelligence data center for OpenAI in Ohio, a securities filing revealed on Monday.
The credit will support an initial 4.25 gigawatts of computing capacity with the option for an additional 3.75 gigawatts. Nvidia will provide the compute, with capacity expected to come online in phases in 2028.
SB Energy will build and manage the datacenter at the PORTS-Pike Technology Campus in Pike City, Ohio, through a 20-year lease to OpenAI. The frontier lab has a stake in the company, and OpenAI CEO Sam Altman was also an early investor in SB Energy.
"We are securing long-lived infrastructure for NVIDIA compute so OpenAI can deploy the most productive AI factories that can be upgraded repeatedly with each new generation delivering more intelligence and better economics," said Nvidia CEO Jensen Huang in a release.
CNBC previously reported that Nvidia was in discussions with OpenAI to provide a backstop of up to $250 billion that would let the model maker raise debt for a 10-gigawatt data center at the Ohio location.
The Wall Street Journal reported last week that Nvidia was set to cut that guarantee to less than $120 billion for the buildout.
Read more CNBC tech newsAnthropic CFO Krishna Rao is leading early IPO meetings with investors and has not discussed valuation, sources sayAn inside look at SK Hynix $720 billion AI-fueled buildout that's taking over South KoreaDatabricks wraps $5 billion funding round at $190 billion valuationMeta and Nvidia plant 'very firm flag' in open-weight AI race led by Chinese LabsThe deal is Nvidia's latest in a string of financing maneuvers to support the sprawling AI data center buildout, which has raised concerns about circular financing in the AI trade. Last week, Nvidia joined forces with six large asset managers to build financing platforms to deploy $500 billion in third-party capital for datacenter projects.
As part of the Ohio deal, SB Energy and SoftBank will build power sources supporting 10 gigawatts of energy and invest at least $4.2 billion into regional grid infrastructure. Nvidia will invest $1.5 billion in SB Energy.
OpenAI said the new data center will support 35,000 new construction jobs through 2032 and 2,500 long-term positions.
The new data center will give OpenAI more access to the high-end chips and compute power that underlay the entire AI architecture.
OpenAI President Greg Brockman told CNBC's "Squawk Box" on Monday that compute is a "fundamental resource" for the industry.
"Compute is really becoming the new oil, the new limited resource of the AI age," he said.
Nvidia (NVDA) disclosed eight US-listed equity positions worth $63.44 billion as of June 30. The largest is Intel (INTC), at 214,776,632 shares worth $29.99 bil
Image Credits:Chesnot / Getty Images Nvidia said on Monday that it will invest $1.5 billion in SB Energy, a data center linked to SoftBank and OpenAI.
The investment ensures that Nvidia will be the sole supplier of compute infrastructure at OpenAI’s Ports-Pike data center near Cincinnati, Ohio. Nvidia will also provide up to $105 billion in credit to help build the facility, which could scale from an initial 4.25 gigawatts to 8 gigawatts in size, according to documents the company filed with the SEC.
SB Energy’s existing investors include SoftBank and OpenAI. SoftBank had previously held $5.8 billion worth of Nvidia stock, which it sold in November to help fund other AI investments.
The data center and power developer will build a 9.2 gigawatt natural gas power plant on the site, which is land owned by the U.S. Department of Energy. The site previously enriched uranium for the U.S. nuclear arsenal and for U.S. Navy submarines.
The power plant is expected to cost $33 billion. The steep sum reflects the skyrocketing costs of building natural gas power plants, which have risen 66% in the last two years, according to BloombergNEF.
By the time SB Energy’s power plant and others are completed, they’ll be competing for natural gas with export markets, a confluence that could triple natural gas prices in some parts of the country.
Nvidia stock NVDA was higher in early Monday trading, rising 1% to around $227, after the chipmaker agreed to guarantee as much as $105 billion in lease payments tied to an OpenAI data center in Ohio.
The facility is being developed by SoftBank-backed SB Energy, which will build, own and operate the campus for OpenAI under a 20-year lease, the companies said Monday.
Nvidia will also invest $1.5 billion in SB Energy and secure up to 8 gigawatts of AI computing capacity at the campus.
The agreement is one of Nvidia's largest infrastructure financing commitments as the chipmaker increasingly becomes involved in financing the infrastructure built around its products.
That strategy can help drive demand for Nvidia's chips but has also raised questions about circular funding flows between the company and its customers.
Nvidia has secured land and power in Pike County, Ohio, for the AI data center, which will initially have 4.25 gigawatts of capacity.
The facility is expected to come online in phases beginning in 2028.
Nvidia will exclusively provide AI computing infrastructure at the campus and is providing credit support for land, power and shell construction tied to the initial capacity.
The company also has an option to secure the remaining 3.75 gigawatts.
The project comes as technology companies increasingly link chip supply, power generation and data center development as they race to expand AI infrastructure.
SoftBank and SB Energy plan to build at least 10 gigawatts of new power generation and invest $4.2 billion in regional grid infrastructure through a partnership with AEP Ohio.
OpenAI said the project is expected to create about 35,000 construction jobs through 2032 and about 2,500 long-term operating jobs.
Nvidia CEO Jensen Huang said OpenAI's existing and planned commitments represent about 12 gigawatts of Nvidia compute through 2030, with the potential to reach 16 gigawatts if the PORTS-Pike arrangement is expanded.
At those levels, Nvidia estimates the opportunity at roughly $600 billion of compute through 2030.
Nvidia's investment in SB Energy follows a $1 billion investment by OpenAI and SoftBank in January to expand data center and power infrastructure supporting their Stargate AI initiative.
Nvidia had previously discussed providing a guarantee of as much as $250 billion to OpenAI for the data center lease, according to media reports.
The chipmaker has also provided financial backing to other companies building AI hardware infrastructure, including CoreWeave, and has invested directly in OpenAI and AI company Anthropic.
The latest guarantee is Nvidia's largest arrangement of its type, raising questions about the extent to which the chipmaker is financing the infrastructure needed to purchase its own products.
The arrangements have also raised broader concerns about off-balance-sheet financing, guarantees and circular funding structures within the AI ecosystem.
Nvidia rejected that characterization in the Ohio agreement.
"OpenAI will pay the lease," Nvidia said, adding that the deal is not an example of circular financing.
OpenAI is moving away from relying on third parties like Microsoft (MSFT) and Oracle (ORCL) and stepping up to become its own frontrunner in the AI compute race, says Marley Kayden. She outlines how the ChatGPT maker is getting help from Nvidia (NVDA) as it seeks to open a 10-gigawatt data center in Ohio.
The SEC issued staff guidance in July that confirmed looser restrictions for data center securitizations. Attorneys say the guidance could apply to the $500 billion financing initiative announced last week by Nvidia and large private credit providers.
Nvidia (NVDA +1.09%) has become an iconic company over the years, with its chips playing an integral role in the build-out taking place in the tech sector, as businesses invest heavily in artificial intelligence (AI). At around $5.5 trillion in market cap, it's easily the most valuable publicly traded stock.
Over the past 12 months, the stock has risen by 25%, as growth investors don't appear concerned about its valuation. The company has continued to grow at a high rate, and it's arguably not all that expensive based on earnings. With much more growth still on the horizon and tech spending not appearing to slow down, could Nvidia hit a $10 trillion valuation by 2030?
Image source: Getty Images.
Why the stock may still have plenty more runway left It's not hard to make the case as to why Nvidia may be a good buy, given its recent results. When it last reported earnings in May, its growth rate was an incredible 85% for the period ending April 26. Its net income for the quarter totaled $58 billion, representing more than 71% of revenue. Its profit was also more than the revenue it generated in the prior-year period: $44 billion.
Given the company's fantastic results and tech businesses' continued heavy spending on AI and reliance on Nvidia's chips, it's entirely conceivable that the tech stock could rise further. While it may look expensive based on its market cap alone, the stock itself isn't obscenely valued, as it's trading at a forward price-to-earnings multiple of 26, based on analyst projections for how it will do in the year ahead. Although that is higher than the S&P 500 average of 21, a premium is certainly warranted for one of the best growth stocks in the market these days.
Today's Change
(
1.09
%) $
2.45
Current Price
$
227.61
Can Nvidia hit $10 trillion in market cap by 2030? For Nvidia's stock to reach $10 trillion, it would need to rise by approximately 82% from its current valuation. Over a four-year period, that averages out to a compounded annual growth rate of around 16%.
That might not seem all that unreasonable, but investors should also consider that the market is at record highs and that the S&P 500 has delivered above-average gains for multiple years. A slowdown may be overdue, and it may be a bit optimistic to assume Nvidia's gains and growth will remain high for another four years, which is why I don't think it is likely to hit $10 trillion by 2030. But given its dominance in the sector, I still think Nvidia can make for a good long-term investment.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
HIVE Digital Technologies (NASDAQ:HIVE) shares are up 11% to $2.98 in midday trading Monday, jumping from Friday’s $2.69 close after the bitcoin miner unveiled its largest AI contract to date. The catalyst is company-specific, keeping peer names and the broader miner group largely flat.
HIVE stock remains down 16% for the month, though it’s still up 4% year to date (YTD) and up 20% over the past year. The market cap sits at $883.85 million.
The catalyst is a five-year, $350 million GPU cloud services agreement signed through HIVE’s BUZZ High Performance Computing subsidiary. The deal puts HIVE’s $200 million annualized recurring revenue goal for the GPU cloud business within reach and validates the bitcoin-miner-to-AI-compute pivot investors have been pricing in.
A $350 Million AI Contract HIVE signed the five-year GPU cloud services agreement with an unnamed investment-grade enterprise customer. The deal is expected to generate approximately $70 million in annualized revenue and brings BUZZ HPC’s total annualized revenue to $180 million, blending $35 million in active realized annualized revenue with $145 million in contracted revenue expected to come online through the fourth quarter of 2026.
BUZZ HPC will deploy a dedicated cluster of 2,016 NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) Blackwell Ultra GPUs in NVIDIA GB300 NVL72 rack-scale systems at the Bell AI Fabric facility in Merritt, British Columbia. The cluster uses NVIDIA Quantum-X800 InfiniBand networking and VAST Data’s storage platform, powered by renewable hydroelectric energy with closed-loop liquid cooling (we profiled seven of the power, cooling, and networking suppliers behind builds like this in a free AI infrastructure report).
Capital expenditures for the deployment total $185 million, sizable against a market cap under $1 billion. The customer is providing an upfront deposit of $35 million, 10% of total contract value. CEO Aydin Kilic indicated the funding mix draws from HIVE’s zero-coupon convertible bond issued in June, debt financing, and additional equipment financing.
Executive Chairman Frank Holmes described the deal as “another important milestone in that journey” of applying HIVE’s ASIC and data center scaling experience to GPU-based AI. Holmes added, “with approximately 400 MW of capacity in Canada for Tier III data center development, we have the potential to bring over 120,000 GPUs online over the next 2 years.”
Kilic stated HIVE is accelerating “towards our year-end target of $200 million of ARR for our GPU cloud business” and that “the five-year term, expected stable cash flows from an investment-grade enterprise customer, and upfront deposit of approximately 10% of total contract value supports an attractive economic and return profile for this deployment.”
Peers Barely Budge Cipher Mining (NASDAQ:CIFR) shares are up 2% to $18.13, a modest sympathy move for a fellow bitcoin miner building industrial-scale HPC data centers for hyperscale tenants. Cipher Mining stock is up 4% for the week, up 21% YTD, and up 236% over the past year.
NVIDIA shares are up 0.8% to $227.05, barely moving despite NVIDIA’s role as the GPU supplier for HIVE’s Blackwell Ultra deployment. NVIDIA stock is up 21% YTD, and a $350 million cluster order is a rounding error against a market cap north of $5.4 trillion.
The Miner ETF Read The Valkyrie Bitcoin Miners ETF (NASDAQ:WGMI) is up 2% to $49.38, confirming this is a company-specific catalyst rather than a sector rotation. The ETF is up 27% YTD but down 8% over the past month, lagging HIVE’s 9% jump.
The Valkyrie Bitcoin Miners ETF is a narrow thematic vehicle concentrated in bitcoin miners and carries meaningful concentration risk. Today’s muted response reflects a group trading flat around HIVE’s news.
What to Watch The cluster is expected to be operational later this year, with HIVE guiding to $500,000 per day in HPC and AI daily revenue once deployed. Investors can watch for whether that revenue rate materializes on schedule and whether the enterprise customer is ever identified.
HIVE held about $11 million of bitcoin on its balance sheet against a cash position of $208 million as of its fiscal first-quarter 2027 report. Bitcoin (CRYPTO:BTC) was priced near $63,200 Monday morning, with traders watching for a move below $63,000, which reinforces why the AI revenue line now matters more to this story than the mining side.
The remaining questions are execution and financing. This is contracted future revenue that still needs to convert to revenue in hand, and the $185 million buildout still needs to be funded across convertible debt and equipment financing. Market watchers can watch for progress toward the $200 million ARR target by year-end and the next update on the funding stack, and investors may want to size their positions with that execution risk in mind.
Contact [email protected] for any questions or corrections.
, the world's leading AI-chip powerhouse, committed up to $105 billion in lease-payment guarantees for OpenAI's massive Ohio AI data-center campus while investing $1.5 billion in SoftBank-backed SB Energy. Nvidia shares gained approximately 0.8% to $227.05 on Monday as investors digested one of the biggest infrastructure commitments of the AI era.
This is not just another data-center project. It is Nvidia locking in the foundation of the next AI growth wave. The PORTS-Pike campus in Ohio will give Nvidia exclusive access to supply the computing backbone, including its GPUs, CPUs and networking technology. The first phase is expected to deliver 4.25 gigawatts of capacity, with another 3.75 gigawatts available for expansion, creating one of the largest AI computing hubs ever planned. Operations are expected to begin in 2028 under a 20-year OpenAI lease with SB Energy building and operating the facility.
The opportunity is enormous, but so is the debate. Nvidia is effectively helping build the infrastructure that drives demand for Nvidia chips, creating a powerful growth engine but also raising questions about financial exposure. CEO Jensen Huang believes OpenAI's computing needs could translate into hundreds of billions of dollars of future Nvidia revenue through 2030. Investors appear to see both sides: Nvidia remains the biggest winner of the AI arms race, but the company is moving beyond selling chips and becoming deeply involved in financing the ecosystem around them.
Nvidia's GF Score™ of 95/100 shows why the market continues to reward the company. The score highlights exceptional profitability, explosive growth and strong financial strength, while the weaker GF Value™ component signals the biggest challenge: valuation. Nvidia has become one of the highest-quality businesses in the market, but investors are paying a premium for continued AI dominance. The key question is no longer whether AI spending will grow — it is whether Nvidia can keep converting that spending into earnings at today's extraordinary pace.
SummaryNvidia Corporation remains a Strong Buy as demand shifts from intentions to signed obligations, with $91B July quarter revenue and 75% gross margin guidance.Hyperscaler and sovereign AI demand drive robust, multi-year committed backlogs, reducing reliance on the top four customers and supporting revenue durability.Rubin chip shipments begin Q3 2026, pulling forward revenue and mitigating typical product transition risks due to persistent supply constraints.Margin stability is pivotal; holding mid-70s gross margins amid rising input costs and flat operating leverage underpins the near-term bull case. wellesenterprises/iStock Editorial via Getty Images
Nvidia Corporation (NVDA) is set to report second-quarter fiscal 2027 earnings release on August 26, and judging by the noise around it, a good number of us are expecting it to deliver some kind
4.65K Followers
Analyst’s Disclosure: I/we have a beneficial long position in the shares of GOOGL, META, MSFT, AMZN 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.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Wall Street spent most of 2026 debating whether Big Tech’s AI spending was real demand or a financing trick dressed up as a boom. The $1.65 trillion in Big Tech off-balance-sheet obligations that Nikkei tallied in July gave that debate teeth.
Investors want to know who’s actually paying for the data centers powering the AI trade, and increasingly, the answer traces back to the same company selling the chips inside them. Nvidia (NASDAQ:NVDA | NVDA Price Prediction) has spent this year positioning itself not just as AI’s arms dealer but as its banker, landlord, and now equity partner.
This morning, that strategy got another data point: a $1.5 billion investment in SB Energy, the SoftBank-backed developer building OpenAI’s newest data center campus in Ohio. It’s a small check by Nvidia’s standards, but what it reveals about the company’s financing playbook is not.
The Ohio Deal, Line By Line Nvidia will invest $1.5 billion in SB Energy and lock in up to 8 gigawatts of AI computing capacity at the PORTS-Pike Technology Campus in Pike County, Ohio. The initial phase covers 4.25 GW, with SB Energy building, owning, and operating the facility under a 20-year lease to OpenAI. SB Energy and SoftBank are also committing $4.2 billion to regional grid infrastructure, part of a plan for at least 10 GW of new power generation.
That number is smaller than it first appeared. The Wall Street Journal reported on Friday that Nvidia trimmed its financial backstop for the project from $250 billion to less than $120 billion, and that the guarantee now covers only the buildout’s first phase. Investors had pushed back hard on the original figure — Nvidia shares fell 5% when it first surfaced — and management listened.
Separately, Nvidia and OpenAI are negotiating up to $100 billion in credit support and as much as $350 billion in GPU financing for the broader project. In short, Nvidia scaled back the riskiest number while leaving the chip-financing pipeline intact.
More than just a chip maker—Nvidia is now the banker and landlord of the AI revolution, building the very walls that house its own GPUs. Money In, Chips Out It is also another brick in the circular financing wall that Nvidia has been building.
Nvidia funds SB Energy. SB Energy builds the data center and leases it to OpenAI. OpenAI fills that data center with Nvidia GPUs, purchased in part through financing Nvidia itself arranged. Nvidia’s revenue shows up twice: once as an investment return, once as a chip sale. SB Energy is reportedly targeting an IPO as early as next month, seeking to raise at least $5 billion — and Nvidia’s second $1.5 billion tranche is expected to land there, putting Nvidia, OpenAI, and SoftBank all on the cap table of a newly public AI power company.
Nvidia can afford the exposure. The numbers back that up:
Metric Nvidia Market cap $5.5 trillion Trailing P/E 34.3 Forward P/E 22.6 TTM revenue $253.5 billion TTM net income $159.6 billion Debt/equity 0.07 Return on equity 114% A debt-to-equity ratio of 0.07 means Nvidia is financing this ecosystem almost entirely with cash it already has, not borrowed money — a meaningfully different risk profile than hyperscalers or OpenAI, which remains unprofitable despite an $852 billion valuation.
The Debt Nobody Sees on the Balance Sheet That said, Nvidia’s balance sheet strength doesn’t erase the risk sitting one layer downstream. The $1.65 trillion in off-balance-sheet obligations Nikkei identified across the five largest hyperscalers rests on an assumption: that OpenAI and Anthropic keep growing and keep raising what they charge per token. The Wall Street Journal yesterday raised the tally to $3 trillion.
Ironically, the thing that makes this financing web workable — rising AI revenue — is the same thing markets have no reliable way to verify yet. If enterprises pivot toward cheaper open-source or in-house models, the lease payments, credit guarantees, and chip financing tied to today’s assumptions don’t just slow. They come due against revenue that never showed up, potentially unraveling the whole.
Key Takeaway Nvidia’s scaled-back $120 billion guarantee shows the company responding to shareholder pressure rather than ignoring it, but it continues to enmesh itself in financing deals that require the music to keep playing. Slowing demand, companies searching out cheaper alternatives, or the eventual closing of a euphoric financing window for these deals could make the rapidly expanding debt load quickly crush some of its biggest players.
For Nvidia, smart investors should continue watching whether OpenAI’s revenue growth actually justifies the token pricing this entire structure depends on.
Contact [email protected] for any questions or corrections.
NVIDIA will be the exclusive AI compute infrastructure provider at PORTS-Pike.NVIDIA to provide credit support on land, power, and shell buildout to secure initial 4.25 IT-GW, with an option to take the remaining 3.75 IT-GWOpenAI will be the customer for 8-IT GWPORTS-Pike campus project will create tens of thousands of Ohio jobs, pay for its power infrastructure, and invest hundreds of millions in the community anchored by an initial $80 million community benefits fund. NVIDIA to invest $1.5B in SB Energy now to support SB Energy’s growth and commitments to the Ohio community. SANTA CLARA, Calif. and REDWOOD CITY, Calif., Aug. 17, 2026 (GLOBE NEWSWIRE) -- NVIDIA announced that it has secured land, power and shell (LPS) capacity through a partnership with SB Energy at the PORTS-Pike Technology Campus in Pike County, Ohio, to host NVIDIA compute. OpenAI will be the customer. SB Energy will build, own and operate the data center under a 20-year lease to OpenAI.
Demand for AI is growing at an extraordinary pace. AI is becoming infrastructure, requiring a full stack of critical resources, including LPS. To meet this moment, NVIDIA is securing the LPS capacity at PORTS-Pike to exclusively host NVIDIA AI factories. This unique campus development will lay the foundation for tomorrow’s breakthroughs, enabling communities to drive scientific discovery, health care advances and regional economic development.
OpenAI will utilize the capacity at the site. The AI factory will use NVIDIA’s full-stack DSX AI factory platform, including GPUs, CPUs and networking. The initial deployment is designed to support 4.25 IT-GW of AI factory capacity. NVIDIA has the option to extend the opportunity at PORTS-Pike beyond the initial capacity. The DSX AI factory architecture used at PORTS-Pike will deliver resiliency across the full stack – facilities, hardware, and software together – reducing infrastructure overhead and accelerating time to tokens for the next generation of AI factories.
“AI is becoming infrastructure – the foundation for intelligence in every industry – and land, power and shell have become vital in the age of AI. Now is the time to scale the AI infrastructure that will power the next industrial revolution,” said Jensen Huang, founder and CEO of NVIDIA. “We are securing long-lived infrastructure for NVIDIA compute so OpenAI can deploy the most productive AI factories that can be upgraded repeatedly with each new generation delivering more intelligence and better economics.”
“Infrastructure is vital for the AI economy. With SoftBank Group, OpenAI and NVIDIA, SB Energy is building power-first infrastructure at unprecedented scale while strengthening the communities that make it possible – protecting ratepayers, creating tens of thousands of well-paying jobs, and investing in infrastructure to revitalize Southern Ohio that has long shaped America’s future,” said Rich Hossfeld, co-CEO of SB Energy.
“This is going to be a huge site, with enough computing power to help millions of people use AI to do things we can only start to imagine today, from finding new medicines to starting businesses and solving hard problems,” said Sam Altman, CEO of OpenAI. “We’re proud to build it in Pike County, a place that is once again at the heart of American industry and leading the future. We want the people who live here to feel the benefits too, through good jobs, more opportunity for local businesses, and investment in the community for years to come.”
“The next era of intelligence will transform every industry — and require infrastructure built at unprecedented speed and scale. Together with our partners, SoftBank will help unlock the power of AGI and move humanity forward,” said Masayoshi Son, Chairman and CEO of SoftBank Group Corp.
Campus to Bring New Jobs and Benefits to Ohio
SB Energy’s PORTS-Pike Technology Campus is reindustrializing the decommissioned Portsmouth Gaseous Diffusion Plant and the surrounding area, bringing a new generation of jobs to Appalachian Ohio, while creating an opportunity for the region to play an important role in the next era of American industry. Spanning private and federal land, the campus is being developed in collaboration with AEP Ohio, the U.S. Department of Energy, and the U.S. Department of Commerce. The planned capacity is expected to come online in phases beginning in 2028.
In support of the surrounding Ohio community, SB Energy and SoftBank will build at least 10 GW of new energy generation, which results in 8 IT-GW of AI factory capacity, and invest at least $4.2 billion in new regional grid infrastructure through an innovative partnership with AEP Ohio designed to protect ratepayers. OpenAI has agreed to build on SB Energy’s originally announced $40 million community benefits fund with an incremental $40 million designed to support local priorities, including affordable energy, job creation and workforce development, and community and economic development.
NVIDIA Invests in SB Energy
NVIDIA will invest $1.5 billion in SB Energy, joining existing investors SoftBank Group and OpenAI. The investment supports SB Energy’s continued evolution into a leading AI infrastructure developer, while supporting Pike County and other local communities, with the vast opportunity ahead to deliver compute infrastructure at speed and scale.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of any securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
Advisors
Goldman Sachs and JP Morgan served as financial advisors for SB Energy. Morgan Stanley served as NVIDIA’s financial advisor.
About NVIDIA
NVIDIA (NASDAQ: NVDA) is the world leader in AI and accelerated computing.
About SB Energy
SB Energy is a leading integrated data center and power infrastructure company purpose-built for the AI economy. The company develops, constructs, and operates gigawatt-scale data center campuses and utility-scale power generation assets. Through its vertically integrated, power-first model, SB Energy addresses the industry's primary bottleneck and accelerates speed-to-compute, with a focus on community, reliability, and cost discipline. For more information, visit www.sbenergy.com.
About OpenAI
OpenAI is making powerful AI accessible, useful and abundant for people and businesses everywhere to build, solve problems and expand what they’re able to do.
NVIDIA Forward-Looking Statements
Certain statements in this press release including, but not limited to, statements as to: AI becoming infrastructure and AI infrastructure powering the next industrial revolution; NVIDIA’s partnership with SB Energy and the expected benefits and impacts of the partnership; NVIDIA’s investment in SB Energy; the development, timing, scale, capacity and operation of the PORTS-Pike campus; the exclusive hosting of NVIDIA systems at the PORTS-Pike campus; OpenAI’s expected customer role and DSX deployment at PORTS-Pike; the potential expansion of the PORTS-Pike campus and related commitments and the expected economic and community impacts of the campus; NVIDIA’s credit support; expectations with respect to demand for AI; expectations with respect to performance, availability, and benefits of NVIDIA’s products, services and technologies, and related trends and drivers; expectations with respect to technology developments, and related trends and drivers; expectations with respect to AI and related industries; and other statements that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections based on management’s beliefs and assumptions and on information currently available to management and are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: global economic and political conditions; NVIDIA’s reliance on third parties to manufacture, assemble, package and test NVIDIA’s products; the impact of technological development and competition; development of new products and technologies or enhancements to NVIDIA’s existing products and technologies; market acceptance of NVIDIA’s products or NVIDIA’s partners’ products; design, manufacturing or software defects; changes in consumer preferences or demands; changes in industry standards and interfaces; unexpected loss of performance of NVIDIA’s products or technologies when integrated into systems; NVIDIA’s ability to realize the potential benefits of business investments or acquisitions; and changes in applicable laws and regulations, as well as other factors detailed from time to time in the most recent reports NVIDIA files with the Securities and Exchange Commission, or SEC, including, but not limited to, its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Copies of reports filed with the SEC are posted on the company’s website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.
Nvidia logo is seen in this illustration taken June 11, 2026. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab
CompaniesAug 17 (Reuters) - Nvidia (NVDA.O), opens new tab will invest $1.5 billion in SoftBank-backed <9984.T> SB Energy and secure up to 8 gigawatts of AI computing capacity at an Ohio campus being built by the data center developer for OpenAI.
The deal is the latest where Nvidia is financing the ecosystem consuming its chips, a strategy that has helped fuel demand but also drawn scrutiny over the circular flows of funds from the chipmaker to its biggest customers.
Sign up here.
Leading tech firms are increasingly tying together chips, power and data center development as they race to secure the infrastructure needed for increasingly power-hungry AI models.
Chip giant Nvidia has secured land and power at Ohio's PORTS-Pike Technology Campus for an AI data center that will use its graphics processors and networking gear, with an initial capacity of 4.25 GW.
SB Energy and SoftBank plan to build at least 10 GW of new power generation and invest $4.2 billion in Ohio grid infrastructure to support AI data centers.
Also backed by OpenAI, SB Energy develops large-scale power and data center infrastructure projects. Founded in 2019, the company is building several data center campuses to support rising demand tied to AI workloads.
Reporting by Anhata Rooprai in Bengaluru; Editing by Devika Syamnath
Our Standards: The Thomson Reuters Trust Principles., opens new tab
