Track market-moving stories before they get noisy

Chipmaker Nvidia (NVDA 0.93%) stands at the center of the artificial intelligence (AI) infrastructure supercycle. The world's most valuable company supplies essential hardware and software that enables the training, inference, and scaling of ever more sophisticated AI models.

Insatiable demand for the company's Blackwell GPU architecture, record capital spending by the hyperscalers, and the debut of its new Vera Rubin architecture, which expands its reach into CPUs, all point to the company enjoying sustained acceleration amid the ongoing data center build-out.

Taken together, Nvidia has the conditions for meaningful revenue growth complemented by even further earnings expansion. This combination should support a meaningful upward rerating of Nvidia stock over the next year.

Image source: Nvidia.

Nvidia's data center business is accelerating again Nvidia's most recent quarterly results underscore a clear reacceleration from the data center business. During the first quarter of its fiscal 2027 (which ended April 26), data center revenue reached a record $75.2 billion -- up 92% year over year. This performance reflects robust demand across hyperscalers as well as a broadening customer base that includes frontier AI labs, large enterprises, and sovereign entities. The increase in data center sales signals that growth momentum is strengthening again after a brief period of more measured expansion.

Management's guidance for the fiscal second quarter points to further sequential progress, which should reinforce investors' confidence in the trajectory of the broader AI infrastructure build-out. To me, these trends suggest that Nvidia's growth reacceleration is not occurring in isolation; rather, it is being fueled by aggressive capital expenditure plans from the largest cloud providers, which continue to scale up their AI infrastructure at a rapid pace.

Looking further out, analyst projections indicate that hyperscaler capital spending in 2027 could surpass $1 trillion. When extended across the broader ecosystem -- including memory, networking, and power -- the cumulative investment in AI-related infrastructure is expected to reach several trillion dollars over the coming years.

As the dominant supplier of the accelerated computing platforms that sit at the core of these deployments, Nvidia is positioned to capture a meaningful share of this spending. The combination of reaccelerating quarterly results and management's multiyear visibility into customer budgets offers a compelling reason to anticipate continued data center expansion through next year and beyond.

Nvidia is quietly becoming a full-stack solution Nvidia has taken a decisive step beyond designing GPUs with the introduction of its Vera CPU platform. This hardware is purpose-built for the emerging era of agentic AI. The company launched the Vera CPU earlier this year and has already delivered the product to leading AI laboratories and cloud providers.

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By delivering a high-performance CPU optimized for the same CUDA software ecosystem that has long powered its GPUs, Nvidia can deepen its control of the full AI compute stack. Vera pairs with Nvidia's GPUs, thereby reducing friction within integrated AI systems. This strategy should help accelerate Nvidia's data center business even further as the company captures sales within an additional pocket of the AI chip value chain.

Where will Nvidia stock be in one year? These secular growth drivers -- Blackwell adoption, hyperscaler infrastructure spending, and the new Vera CPU -- are converging at a time when Nvidia's forward price-to-earnings (P/E) multiple sits well below the levels it usually traded at during earlier phases of the AI revolution.

NVDA PE Ratio (Forward) data by YCharts.

With earnings poised to expand from the data center segment, Nvidia's current valuation leaves it meaningful room for valuation expansion. Even a conservative rerating to between 24 and 27 times Nvidia's expected fiscal 2028 earnings per share (EPS) of $12.73 could propel its stock price well above $300 -- implying more than 50% upside from current trading levels.

Investors who focus on the durability of these catalysts rather than short-term noise around the growing levels of competition in the AI accelerator space or the sensitive macroeconomic environment will benefit from Nvidia's operational outperformance. Eventually, its valuation multiples will normalize toward levels consistent with the company's leading role in the AI infrastructure build-out.

© Bankiras / Shutterstock.com

Philippe Laffont went on CNBC this morning with a framework that skips the usual bitcoin-versus-gold debate and lands somewhere more concrete. “Is there going to be a $10 trillion company in 10 to 15 years? I think yes,” the Coatue Management founder said, walking through the arithmetic. Global market cap sits near $120 to $140 trillion today, and if it grinds to $200 trillion over the next decade, a company worth 5% of the world would clear $10 trillion. The mechanism he keeps pointing at is agentic AI, which he called “one of the bigger ideas, at least in my investment career.”

The shorthand for agentic AI is software that does work rather than answers questions. Laffont described it as “the ability to have thousands of people working for you” overnight, and said the productivity gains were already showing up “even in our own office.” That framing matters because the companies closest to his $10 trillion finish line are the ones selling the picks and shovels for that buildout, plus the hyperscalers consuming them.

NVIDIA is the obvious candidate NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) carries a market cap of roughly $4.8 trillion as of this week, which puts it about halfway to Laffont’s threshold without needing any heroic assumptions about market expansion. The Q1 FY27 report from May 20, 2026 showed revenue of $81.61 billion, up 85.2% year over year, with the data center segment alone at $75.25 billion. Jensen Huang called the AI factory buildout “the largest infrastructure expansion in human history.”

The stock itself trades around $199, up 5.6% year to date and 35% over one year. Forward earnings change hands at roughly 23 times, which is not a stretched multiple if revenue keeps compounding at the current pace. Loop Capital analyst Ananda Baruah already raised his target to $350, which implies an $8.5 trillion valuation.

The hyperscalers are funding the entire thing Microsoft (NASDAQ:MSFT), Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), and Meta Platforms (NASDAQ:META) are writing the checks that turn into Nvidia revenue. Microsoft’s AI business hit a $37 billion annual run rate, up 123% year over year, with commercial remaining performance obligations at $627 billion. Alphabet guided 2026 capex to $175 billion to $185 billion, and Google Cloud backlog nearly doubled quarter over quarter to roughly $460 billion. Moreover, Amazon plans about $200 billion in 2026 capex and its custom chips business is now running above a $20 billion annual rate. Meta lifted its 2026 capex range to $125 billion to $145 billion.

These are the dollars feeding what Jensen Huang described on the earnings call as “Agentic AI has arrived, doing productive work, generating real value and scaling rapidly across companies and industries.” Laffont’s framework rests on that loop continuing for another decade.

The near-term price action disagrees Most other mega-cap stocks are up by double digits, though some are treading water. Prediction markets on Polymarket are pricing in a 98.8% probability that Nvidia closes lower today, and only a 23.5% chance the stock closes above $210 by month-end.

That gap between Laffont’s decade-long thesis and the week-to-week price action is the actual investment question. He told CNBC that “the longer dated capital is very, very important because I’m trying to figure out the index of the future ten years out,” which is partly why Coatue is pushing into private markets. He floated OpenAI, Anthropic, and SpaceX as candidates for the eventual $10 trillion crown, none of which sit in a public index today.

For investors who only have public-market access, the working assumption embedded in Laffont’s view is that one of the five names above keeps pulling the chain on agentic AI revenue. The hard part is that the company most likely to triple from here is also the company most exposed if hyperscaler capex ever moderates.

Live Coverage Updates appear automatically as they are published.

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Everyone expects Micron to beat earnings tonight. The bigger question is what management says about margins and demand heading into fiscal 2027.

The AI story is well understood at this point. HBM demand remains strong, supply is tight, and hyperscalers continue spending aggressively. What’s less clear is whether Micron can maintain the extraordinary profitability investors have become accustomed to over the last few quarters.

Micron guided for roughly 81% gross margins in Q3. Investors are looking for management to defend that level and extend visibility into 2027. If margins show signs of pressure, investors may begin to question how much of today’s earnings power is sustainable, especially given the stock’s recent move to over $1 trillion in market cap.

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Peer Scorecard: 3-for-3 on Beats Three AI-adjacent memory and storage peers have recently reported revenue and earnings beats.

NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) posted $81.61B in revenue (+85.2% YoY) and beat EPS by 5.42%. Seagate Technology (NASDAQ:STX) delivered a record 47.0% non-GAAP gross margin and beat by 17.13%. Western Digital (NASDAQ:WDC) crossed 50% gross margin for the first time, beating by 13.71%. Common threads: These businesses all saw hyperscaler-driven demand, margin expansion, and guidance increases, with Seagate and Western Digital hiking dividends.

Both storage names fell sharply today, with Seagate down 7% and Western Digital down 7.64%, mirroring Micron’s 13% pre-earnings drop.

For Micron Technology (NASDAQ:MU) peer fundamentals support the AI memory thesis, but with management guiding for $33.5B revenue and ~81% gross margin, the bar is unusually elevated heading into earnings.

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Tonight’s headline numbers from Micron (NASDAQ:MU) will almost certainly clear the bar. Polymarket pegs a 96.1% odds of an earnings beat, and management has guided conservatively all cycle, guiding for revenue of $18.70 billion last quarter, then delivering $23.86 billion.

The real swing factor is the Q4 outlook. Bullish guidance would push revenue above roughly $36 billion, hold gross margin at/above 81%, and confirm HBM allocation sold into calendar 2027.

On the other hand, bearish guidance would look like flat sequential revenue heading into Q4, any hint of margin compression, or cautious hyperscaler inventory commentary.

After a 31.04% surprise last quarter still produced a -19.99% one-week drop, the lesson is clear that guidance, rather than the earnings beat, will drive the stock’s reaction.

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Micron’s Q3 earnings report tonight is likely to come down to two things: management’s outlook for fiscal 2026 and what CEO Sanjay Mehrotra says about demand heading into 2027.

Investors already know AI is driving strong demand for high-bandwidth memory (HBM). The bigger question is how long that demand can support today’s pricing and profitability.

If Mehrotra extends HBM visibility into 2027 and reinforces the company’s roughly 81% gross margin outlook, it would strengthen the case that the AI memory boom still has room to run.

If either of those pillars starts to weaken, investors may begin questioning how sustainable today’s earnings power really is. After all, Micron shares have climbed more than 700% over the past year, leaving little room for disappointment.

This live blog is being updated by Thomas Richmond, a 24/7 Wall St. contributor. You’ll get expert analysis of Micron’s Q3 earnings. Simply stay on this page, and new updates will appear below automatically. We expect Micron’s earnings to be released shortly after 4:00 p.m. ET.

Investors are watching Micron Technology (NASDAQ:MU) ahead of its fiscal Q3 2026 results due tonight, June 24, at 4:00 PM ET after the bell. After a historic run that pushed shares to $1,200, followed by a 13% drop on Wednesday, June 23, investors will be watching for positive developments in this report to justify the rerating.

A Setup Built on Records, Then Stretched Further Last quarter was a blowout. Micron posted Q2 revenue of $23.86 billion against a $19.51 billion consensus, with non-GAAP EPS of $12.20, beating by 31.04%. GAAP gross margin expanded to 74.4% from 36.8% a year earlier, and operating income jumped to $16.14 billion.

CEO Sanjay Mehrotra told investors, “We expect significant records again in fiscal Q3,” and the board approved a 30% dividend hike. Since the March report, shares have rerated from $441 to over $1,020, gaining 40.05% in the past month alone and 268.68% year to date.

Consensus and Guidance Snapshot Metric Q3 FY26 Guidance Street Consensus Q2 FY26 Actual Revenue $33.50B ± $750M ~$33.5B midpoint $23.86B Non-GAAP EPS $19.15 ± $0.40 $19.66 $12.20 Gross Margin ~81% n/a 74.4% GAAP HBM Commitments and Margin Math Are the Test Tonight, I’ll be watching three things with Micron. First, gross margin. Guidance calls for an 81% gross margin, a level the memory industry rarely sees, and the cloud memory segment already ran at a 74% gross margin with 66% operating margin last quarter. If that level holds, the AI memory pricing story stays intact.

Second, HBM and supply commitments. Management previously hinted that order books extend into 2027, and investors will look tonight at how far into 2027 they extend. That comment alone could move the stock.

Third, capex and capacity. FY25 capex was $15.86 billion, and the trajectory implies more. Mehrotra has called memory “a strategic asset” for AI customers, but heavy capex is the price of staying ahead of SK Hynix and Samsung.

The market is leaning bullish. Polymarket pegs a beat at 96.4%, and Micron has beaten in seven straight quarters. Options are pricing chaos, though, with retail traders flagging IV at the 98th percentile. It’s worth noting that even after Q2’s 31% beat, shares fell 3.78% on the day.

Gold investors may not like what they’re seeing on the charts. According to Barchart, gold has fallen below its 200-day moving average by the largest margin since 2022, a notable technical breakdown for one of the market’s favorite safe-haven assets.

But while the move may concern gold bulls, Nvidia Corp. (NASDAQ:NVDA) investors could see it differently.

Gold’s Breakdown Is About More Than GoldGold often thrives when investors are worried. The precious metal tends to attract capital during periods of economic uncertainty, geopolitical tension and market volatility. Conversely, when investors become more comfortable taking risk, money often flows elsewhere.

That’s why gold’s latest technical breakdown may be sending a broader message about market sentiment. Investors appear increasingly willing to rotate out of defensive assets and back into growth-oriented trades.

And few trades have captured Wall Street’s attention more than artificial intelligence.

The AI Trade Is Built On Risk AppetiteNvidia has become one of the biggest beneficiaries of the AI boom, helping power a rally that has lifted semiconductor stocks, software names and the broader technology sector.

But AI isn’t just a growth story. It’s also a confidence trade.

That kind of optimism tends to flourish when investors are embracing risk—not hiding from it.

What History SuggestsThe last time gold traded this far below its 200-day moving average was in 2022, a period that ultimately coincided with improving sentiment toward risk assets after one of the market’s most challenging years.

While history doesn’t always repeat itself, the recent divergence between gold and high-growth technology stocks is attracting attention.

AI stocks remain near record highs. And investors continue to pour money into one of the market’s most popular themes.

Whether gold’s decline proves temporary or marks the start of a larger trend remains to be seen.

But for Nvidia bulls, the message may be straightforward: investors appear more interested in chasing growth than seeking safety.

Photo: Shutterstock

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I keep buying NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) because every quarter the company reports, the math behind my thesis gets stronger. That is the whole confession. I have been adding on every pullback this year, including the 4.13% drop on June 23 that pushed shares back to $200.04, and I plan to keep doing it through the back half of 2026. Here is why.

The core thesis in human terms Jensen Huang calls what is happening right now “the largest infrastructure expansion in human history.” I think he is right, and I think NVIDIA sits at the toll booth. Every hyperscaler, sovereign, neocloud, and enterprise that wants to train or serve a frontier model has to come through this company’s stack. That is a structural position I want to own for the next decade.

Three reasons the thesis holds Reason one: the growth curve is accelerating. Revenue growth has gone +55.6% in Q2, +62.5% in Q3, +73.2% in Q4, and +85.2% in Q1 FY27. Data Center revenue hit $75.25 billion last quarter, up 92% year over year, with networking inside that segment growing 199%.

Management guided Q2 FY27 to $91 billion, and they have beaten the prior two guides by billions. Total supply commitments now sit at $119 billion. That is locked-in demand visibility.

Reason two: margins and cash returns are doing the work. Non-GAAP gross margin printed at 75%. Free cash flow last quarter was $48.55 billion, up 85.41%. The board raised the dividend from $0.01 to $0.25 per share and authorized an additional $80 billion buyback on top of $38.5 billion still available.

Roughly $20 billion came back to shareholders in a single quarter. That is a capital return program I want compounding alongside my position.

Reason three: the moat keeps widening. The customer list reads like the entire AI economy: Meta committing to millions of Blackwell and Rubin GPUs, OpenAI on 10 gigawatts, Anthropic on 1 gigawatt, CoreWeave on 5+ gigawatts by 2030.

Four straight EPS beats, with last quarter at $1.87 against a $1.7738 consensus. And the valuation looks reasonable for this growth rate: forward P/E of 24, PEG of 0.642, against a market cap near $5.05 trillion.

The real risk China. NVIDIA shipped zero H20 compute products to China last quarter, against $4.6 billion in the year-ago quarter. The Q2 FY27 guide assumes no Data Center compute revenue from China at all. That is a real hole in the business that export restrictions could keep open indefinitely.

What keeps me buying anyway: the company guided to $91 billion with that revenue already zeroed out, and growth is still accelerating. The thesis holds even with China taken to zero.

What keeps the buy button active Wall Street consensus target sits at $298.93 from 58 buys against 1 sell. Forward P/E of 24. A dividend that just jumped 25x. A buyback authorization with no expiration. An installed base running every cloud and every frontier model.

I own NVIDIA because the AI factory buildout is a multi-year story and the company collecting the toll is also returning cash and compounding margins while it grows. I will keep buying for as long as the receipts say I should.

NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) stock is returning to a key price level on Tuesday, trading near $200 in midday action and down 4% on the day.

Philippe Laffont, billionaire founder and portfolio manager of Coatue Management, framed artificial intelligence as the defining economic shift of the coming decades and predicted that the first $10 trillion company is on the horizon. Laffont argues AI is the “Intelligence Age,” following the Industrial Age that ran a couple hundred years and the Information Age of the last 40 to 50 years. “Now it seems like intelligence is going to become this utility for $50-100 bucks a month.”

By Laffont’s estimate, AI could lift global GDP growth by 1-1.5% annually over the next 10 to 20 years, and he sees world market capitalization potentially expanding from roughly $120 trillion to $200 trillion. U.S. real GDP grew at a 1.6% annualized rate in Q1 of 2026, so his projected acceleration would be meaningful at the index level.

The $10 Trillion Question “Is there going to be a $10 trillion company in 10 to 15 years?” Laffont asked, calling that question “easier for me than figuring out where bitcoin is going to be in ten years.”

He frames AI as the fifth great idea of his career after Internet stocks, mobile internet, and Apple. “I only came up with about five good ideas in the last 30 years.”

NVIDIA: The Closest $10 Trillion Candidate The clearest current $10 trillion candidate is NVIDIA (NASDAQ:NVDA | NVDA Price Prediction), with a market cap sitting near $5.1 trillion. Laffont estimates that NVIDIA trades at 13-14 times forward 2027 earnings, which he considers cheap.

NVIDIA posted Q1 FY27 revenue of $81.61 billion, up 85.2% year over year, with Data Center revenue of $75.25 billion and non-GAAP EPS of $1.87. CEO Jensen Huang described “the buildout of AI factories“ as the largest infrastructure expansion in human history. Laffont also called selling NVIDIA “one of the biggest mistakes” he has made, a lesson he uses to argue for holding transformational positions through drawdowns.

Amazon and Alphabet: The Capex Customers Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL) sit at roughly $2.53 trillion and $2.03 trillion in market value. Both are pouring capital into the buildout Laffont describes. AWS grew 28% in Q1 2026, its fastest pace in 15 quarters, and CEO Andy Jassy called this period “some of the biggest inflections of our lifetime.”

Google Cloud revenue rose 63%, with backlog nearly doubling quarter-on-quarter to over $460 billion, per Sundar Pichai. Laffont framed the GPU race neutrally: “You’ve got Nvidia, you’ve got Amazon with a training chip, you’ve got Google with a chip, you’ve got newcomers on the GPU side. All of them at the end of the day will need the same machines.”

ASML: The Picks-and-Shovels Bet ASML (NASDAQ:ASML) is the sole producer of EUV and High NA lithography systems, the tools every advanced chipmaker uses. Laffont’s view: “If I’m a supplier to the fabs, I don’t need to make an exact bet on which of the chips is going to win.” ASML shares are up 80.97% year to date and 157.03% over one year. CEO Christophe Fouquet said “demand for chips is outpacing supply,” and the company raised its FY2026 revenue outlook to a range of €36-€40 billion.

What Investors Should Watch Laffont’s thesis ultimately depends on whether the physical infrastructure needed to support AI can be built fast enough. His argument is that GPUs alone aren’t the only opportunity, because AI data centers require enormous amounts of electricity, land, transmission infrastructure, and specialized equipment, creating several potential bottlenecks between today’s AI boom and a future $10 trillion company.

He estimates the buildout could require more than 100 gigawatts of new power capacity. Supporting that view, the U.S. Energy Information Administration projects data center electricity consumption could reach 818 billion kilowatt-hours by 2050 under its High Electricity Demand scenario, more than 16 times the level seen in 2020.

For investors, the key indicators to watch are hyperscaler capital spending plans, demand trends for semiconductor equipment, and the pace of new power projects connecting to the grid. If power generation, permitting, and equipment production can keep up with AI demand, Laffont’s vision becomes much more plausible.

By Reuters

June 24, 202612:26 AM UTCUpdated 13 hours ago

Nvidia logo, computer chips and a 3D-printed representation of a robot hand are seen in this illustration taken August 27, 2025. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab

June 23 (Reuters) - Nvidia's (NVDA.O), opens new tab AI ​chips have ‌more than ​doubled ​in price on ⁠China’s ​black market, ​the Financial Times ​reported ​on Tuesday, citing ‌multiple ⁠Chinese chip traders.

Reuters could ​not ​immediately ⁠verify ​the report.

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Reporting ​by ⁠Angela Christy ⁠in ​Bengaluru; ​Editing by ​Subhranshu Sahu

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Nvidia (NVDA 0.34%) is the largest company in the world, and by a large margin. Second-place Alphabet (GOOG +1.07%) (GOOGL +1.09%) sits at a $4.5 trillion market cap, while Nvidia hovers around $5.1 trillion. That $600 billion gap is massive, equivalent to the size of Visa.

With Nvidia being the largest company in the world, some investors would consider the stock expensive. However, after breaking down its growth potential and current stock price, I think it's clear that Nvidia's stock is a great bargain here. Although it's already the largest company in the world, Nvidia could easily grow even larger over the next few years.

Image source: The Motley Fool.

The AI build-out is still picking up steam Nvidia's success and the artificial intelligence (AI) arms race go hand in hand. Nvidia's GPUs are the top computing option for AI workflows and have remained so even after some powerful custom AI chips have made their way to market. The universal nature of Nvidia's product makes it a popular choice, and its raw performance cements its position at the top of the marketplace. The question is, how much bigger can AI spending get?

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In 2026, the AI hyperscalers amazed investors by announcing a record-setting $650 billion in data center capital expenditures. Next year, Nvidia claims that figure will be $1 trillion or more. Nvidia likely has order information on what the AI hyperscalers are doing in 2027, so investors would be wise to trust this projection. It also suggests Nvidia should see significant growth again in 2027, making today's stock price seem cheap.

Right now, Nvidia trades for 23.5 times forward earnings, which is barely more expensive than the S&P 500 at 22 times forward earnings. With those two priced at the same level, the market is essentially saying that beyond 2026, Nvidia will not grow at a market-beating pace.

NVDA PE Ratio (Forward) data by YCharts

But projections show this isn't true. So, this opens up a great investment opportunity. The market hasn't priced in any of Nvidia's anticipated 2027 growth yet, and if it's anything like Wall Street predicts, it could be another huge year. Wall Street analysts expect Nvidia's revenue to grow at a 41% pace next year. If Nvidia's stock gains are tied to its business growth (which they should be), then there is major upside ahead for Nvidia's stock, and investors should consider loading up on it as a result.

Keithen Drury has positions in Alphabet, Nvidia, and Visa. The Motley Fool has positions in and recommends Alphabet, Nvidia, and Visa. The Motley Fool has a disclosure policy.

Nvidia (NVDA 0.38%) has been one of the biggest winners from the artificial intelligence (AI) infrastructure build-out. The stock has advanced more than 1,300% since January 2023. But most Wall Street analysts still believe Nvidia is deeply undervalued.

In fact, the consensus target price has increased from $265 per share to $295 per share in the last 90 days, according to LSEG. That implies 42% upside from the current share price of $209.

Here's what investors need to know.

Image source: Getty Images.

Nvidia is gaining market share in AI inference workloads Nvidia graphics processing units (GPUs) are the industry standard in artificial intelligence (AI) accelerators, chips that assist CPUs by handling repetitive mathematical tasks. Nvidia accounts for more than 80% of AI accelerator sales, but some analysts expected the company to lose significant market share as the industry shifted toward inference.

To elaborate, AI training is a discrete event in which models learn to perform certain tasks, but AI inference is a continuous process wherein models are used to generate outputs. Inference accounts for about two-thirds of AI workloads today, up from about one-third in 2023, and the shift will only intensify in the future as more models are deployed.

Companies like Alphabet and Amazon have designed custom AI accelerators in an effort to reduce their dependence on Nvidia GPUs. In certain scenarios, those custom chips are actually more efficient, but Nvidia's inference market share still increased eight percentage points to 74% over the past year, according to The Information.

Why? GPUs are general-purpose accelerators, while custom chips are designed for specific workloads. That makes them very efficient in certain situations, but it also means they are much less flexible (i.e., they run fewer algorithms). Venture Beat explains, "If a new AI technique is invented tomorrow, a GPU will run it immediately." That is not necessarily true for custom AI accelerators.

Beyond that, Nvidia has a competitive advantage in its vertically integrated business. The company not only designs GPUs but also CPUs, networking, and software that together form a turnkey solution for AI infrastructure. That translates into cost savings for customers. "Nvidia compute is not just the highest performance AI infrastructure, it is the most economic," says CEO Jensen Huang.

Nvidia is gaining market share in other categories of AI infrastructure While Nvidia is best known for its GPUs, the company is actually gaining share in other AI infrastructure categories. Networking revenue has at least doubled in each of the last three quarters, and it nearly tripled in the most recent quarter, because customers want tightly integrated systems. Nvidia recently became the largest networking company in the world.

Meanwhile, demand for Nvidia's next-generation Vera CPU is already immense ahead of its launch later this year. Vera is twice as efficient as x86-based alternatives (CPUs designed by AMD and Intel). CFO Colette Kress recently told analysts, "We have visibility to nearly $20 billion in total CPU revenue this year, setting us up to become the world-leading CPU supplier."

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AI infrastructure spending is projected to quadruple by the end of the decade To summarize, Nvidia is gaining share within the inference category of the AI accelerator market. That's important because inference has already surpassed training in terms of workload volume, and it will become an even larger part of the market in the future.

Meanwhile, Nvidia is also gaining share in networking equipment and CPUs as customers prioritize tightly integrated systems. Collectively, that puts the company in a good position. CEO Jensen Huang thinks AI infrastructure spending could hit $4 trillion annually by 2030, up from about $1 trillion today. Grand View Research has published similar numbers.

Here's the big picture: Multiple industry experts expect AI infrastructure spending to grow by 36% annually through the end of the decade. Nvidia is gaining share across multiple categories in that market, suggesting its earnings could grow even faster than 36% annually. That makes the current valuation of 32 times earnings look cheap. Patient investors should feel comfortable buying a small position today.

According to reports, Amazon (AMZN +1.22%) is in early talks to sell its Trainium AI chips to external customers, rather than just stacking its own data centers with these in-house-made chips for the benefit of its cloud computing clients. This shouldn't come as a surprise: Amazon's CEO, Andy Jassy, had already said that the company could be moving in that direction. However, one potential loser from Amazon's decision to sell its AI chips is Nvidia (NVDA 0.38%), which will now face more competition for dominance in the AI chip market. Should Nvidia's shareholders be worried?

Image source: The Motley Fool.

The advantage of Amazon's AI chips Amazon started designing its own chips in-house for several reasons. First, to help decrease its exposure to Nvidia's hardware. As the market leader in offering best-in-class GPUs (Graphics Processing Units) for training and deploying artificial intelligence (AI) models, Nvidia has sometimes faced supply constraints. Amazon, and, for that matter, other hyperscalers, have found that custom-made chips can help them sidestep this issue. Second, for Amazon, relying on Trainium is often more cost-effective. According to the company, Trainium2 offers 30% better price performance than comparable GPUs.

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That means the cloud computing giant can reduce expenses and boost margins thanks to its Trainium franchise. It could offer the same value proposition to other companies. Amazon has said its AI chip unit would have an annual run rate of $50 billion if it were a stand-alone business. That's not a lot for a company that generates well over $100 billion in quarterly sales, but Amazon also said this segment is growing at triple-digit year-over-year rates, much faster than the rest of the business. And if the AI boom continues, it could become a meaningful growth driver for Amazon. But what does all of this mean for Nvidia?

Nvidia should be just fine It is telling that despite the advantage of designing its own AI chips, Amazon continues to be a major Nvidia customer. As Jassy said during the company's first-quarter earnings conference call:

While the largest number of AI chips we are bringing in are Trainium, we continue to have a deep partnership with NVIDIA. We have immense respect for them, continue to order substantial quantities, will be partners for as long as I can foresee, and we will always have customers who want to run NVIDIA on AWS.

The lesson here is that Nvidia's hardware is still the best and most versatile. The company also benefits from a wide moat thanks to its CUDA ecosystem.

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Even as companies seek alternative AI chips, the rapidly growing AI industry should provide a strong tailwind to Nvidia while also supporting multiple winners. Further, Nvidia is tapping into an important new growth opportunity thanks to the rise of agentic AI. With AI agents running on CPUs (Central Processing Units), Nvidia estimates it will generate $20 billion in stand-alone CPU revenue by the end of the year and begin making headway into a $200 billion total addressable market.

Here's the bottom line: Even if Amazon's AI chip business makes progress, Nvidia will likely still reign supreme and continue delivering outstanding financial results. That's why the semiconductor stock remains a buy.

Nvidia: Rapid Revenue ExpansionNvidia (NVDA 0.34%) primarily generates its revenue by providing advanced graphics, computational, and networking solutions.

It announced that its Vera Rubin platform entered full production on June 1, 2026, and it reported 72% net income margin for its fiscal first quarter ended April 26, 2026.

Advanced Micro Devices: Steady Revenue TrajectoryAdvanced Micro Devices (AMD 0.07%) earns its revenue by developing microprocessors, chipsets, and graphics processing units.

It announced a definitive agreement with Rackspace Technology on June 16, 2026, and reported 14% net income margin for its fiscal first quarter ended March 28, 2026, with no major adverse events during this period.

Why Revenue Matters for Retail InvestorsRevenue serves as a fundamental measure of the total money a business brings in before expenses. It’s important because it reveals whether a corporation is successfully attracting customers and growing its overall business volume over time.

Quarterly Revenue for Nvidia and Advanced Micro DevicesQuarter (Period End)Nvidia RevenueAdvanced Micro Devices RevenueQ3 2024$30.0 billion (period ended July 2024)$6.8 billion (period ended Sept. 2024)Q4 2024$35.1 billion (period ended Oct. 2024)$7.7 billion (period ended Dec. 2024)Q1 2025$39.3 billion (period ended Jan. 2025)$7.4 billion (period ended March 2025)Q2 2025$44.1 billion (period ended April 2025)$7.7 billion (period ended June 2025)Q3 2025$46.7 billion (period ended July 2025)$9.2 billion (period ended Sept. 2025)Q4 2025$57.0 billion (period ended Oct. 2025)$10.3 billion (period ended Dec. 2025)Q1 2026$68.1 billion (period ended Jan. 2026)$10.3 billion (period ended March 2026)Q2 2026$81.6 billion (period ended April 2026)Not yet reportedData source: Company filings. Data as of June 23, 2026.

Foolish TakeAs the data above shows, Nvidia is seeing consistent quarter-over-quarter revenue growth. This impressive trend is a result of its position as the leader in advanced semiconductor chips for artificial intelligence. AMD, on the other hand, has experienced lumpy quarter-over-quarter revenue as its fiscal Q1 sales to data centers represented 56% of total revenue compared to 92% for Nvidia.

Since data center customers are the ones primarily buying chips for AI, Nvidia’s distinct advantage in this arena has allowed it to see spectacular sales growth. Its position as the leader in the space is likely to continue, driven by its new Vera Rubin platform. Nvidia’s dominance is illustrated by its tech being used by over 400 of the world’s 500 fastest supercomputers.

In addition, Nvidia CEO Jensen Huang has been able to correctly predict where the AI industry is headed. He hand-delivered the world's first supercomputer designed for artificial intelligence to OpenAI back in 2016 after he realized Nvidia’s graphics processing units could be applied to AI. He then correctly forecasted the current rise in data centers becoming AI factories.

AMD has remained a contender in the space albeit it is a far cry from taking the leadership crown from Nvidia. Still, its $10.3 billion in Q1 sales was an excellent 38% year-over-year increase, making it a solid investment in the AI space behind Nvidia.

In today’s ETF matchup, Roundhill Generative AI & Technology ETF (CHAT +0.03%) offers concentrated, active exposure to generative artificial intelligence, while iShares U.S. Technology ETF (IYW +0.26%) provides a broader, lower-cost index-based approach to the established domestic technology sector.

Both funds provide a gateway to high-growth tech, but their underlying strategies and cost structures differ significantly. While IYW tracks a diversified index of established domestic tech giants, CHAT is an actively managed fund specifically targeting the emerging theme of generative AI.

Snapshot (cost & size)MetricIYWCHATIssueriSharesRoundhill InvestmentsExpense ratio0.38%0.75%1-yr return (as of June 23, 2026)48.2%111.1%Dividend yield0.11%1.7%Beta1.431.91AUM$25.6 billion$2.25 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.

The iShares fund is the more affordable choice with an expense ratio of 0.38%. The Roundhill ETF offers a significantly higher dividend payout for investors seeking income alongside tech growth.

Performance & risk comparisonMetricIYWCHATMax drawdown (3 yr)(26.50%)(31.30%)Growth of $1,000 over 3 years (total return)$2,355$3,520What's insideThe Roundhill ETF is an actively managed fund focusing on generative artificial intelligence, which management views as a profound technological shift. Its portfolio is concentrated, with 45 holdings, primarily in technology at 77%, communication services at 17%, and consumer cyclical at 6%. Its largest positions include Nvidia (NVDA 0.38%) at 6.39%, Alphabet (GOOGL +1.26%) at 5.07%, and SK Hynix at 5.07%. Launched in 2023, it has paid $1.68 per share in dividends over the trailing 12 months.

The iShares fund offers broader reach, with 139 holdings, and tracks an index of American technology companies. Its largest positions include Nvidia at 14.73%, Apple (AAPL +0.18%) at 12.87%, and Alphabet at 6.45%. Launched in 2000, this fund has a trailing-12-month dividend payout of $0.26 per share.

For more guidance on ETF investing, check out the full guide at this link.

What this means for investorsThe tech ETFs differ in several meaningful ways. CHAT has a higher expense ratio, but also a higher dividend yield and better one- and three-year returns. It's also actively managed, which helps explain in part the elevated expense ratio relative to the iShares fund. And despite holding far fewer stocks, no single position in CHAT exceeds 7%. Its top 10 holdings are largely in the 3%-5% range in terms of portfolio weighting.

In contrast, the iShares ETF owns more than twice as many stocks, but the weighting is concentrated in just a few big names. Its top three holdings account for roughly 34% of the portfolio. (CHAT's top three make up about 17% of the fund.)

All else equal, I tend to prefer lower-cost funds, but CHAT has performed strongly in recent years, so this may be a case of "you get what you pay for." Plus, I like that the Roundhill ETF is not nearly as concentrated as the iShares fund. If I were to invest in either of these names, I'd opt for CHAT, but make it a modest position in a well-rounded portfolio.

TensorX launches privacy-first inference, already trusted by financial services firms and AI consultancies across Europe

62% of European organisations now seek sovereign AI (Accenture) as 75% plan to move AI workloads to local providers by 2030 (Gartner)

DUBLIN--(BUSINESS WIRE)--A team of Irish founders has committed €8 million to Nvidia Blackwell GPUs, including the latest B300 chips, to launch TensorX, a sovereign AI inference platform designed for Europe's AI builders, trusted by regulated industries and already generating revenue from paying customers. The company was founded by Shane Morton, is part of the NVIDIA Inception program and is partnering with Dell on sourcing GPU hardware.

At a time when enterprises are racing to adopt artificial intelligence but most remain unwilling to let their data leave European jurisdiction, TensorX offers high-performance inference with zero data retention, running entirely on dedicated hardware in Dublin and Helsinki. TensorX is also in advanced talks around a financing facility to further expand its European footprint, with GPU capacity planned for Ireland, the UK, Germany, France and the Nordics.

The company is already generating revenue across three customer cohorts: large regulated enterprises in finance, healthcare and law that require long-term sovereign infrastructure contracts; partnership channels such as OpenRouter that route developer demand onto sovereign GPU compute; and small-to-medium enterprises building their own AI products on top of TensorX, including APEX:E3, TradeLocker and Cor Prime. Recent weeks have seen considerable growth driven by organic inbound from Germany, France, Denmark and the Netherlands, ahead of the EU AI Act, which will intensify compliance requirements for AI systems across regulated sectors.

AI inference, the real-time computing that powers every chatbot, coding assistant and AI agent, is becoming one of the most valuable parts of the AI stack. But for European enterprises, it comes with a growing risk: sensitive data leaving their control. For companies in finance, healthcare and law, that can mean proprietary data being retained or reused by third-party providers, in direct conflict with GDPR and the EU AI Act. TensorX addresses this by running open-source models on dedicated Nvidia GPUs with zero data retention. Nothing is stored, logged or reused, giving enterprises full control over where their data lives and how it's used.

The US CLOUD Act lets American authorities compel any US-headquartered cloud provider, including AWS, Microsoft and Google, to hand over customer data regardless of where it physically lives, often under gag orders that prevent the European customer from ever being told.

"European companies don't want to make a political statement about their AI stack. They want to make a practical one," said Tim Grant, Executive Chairman of TensorX. "Their data has to stay in Europe, on infrastructure they can trust, under laws they are required to comply with. This is what TensorX was built from, from the chips up. We're excited to grow this team to power our ambitions to scale rapidly."

"TensorX turbo-charged the output of our development team and enabled us to deploy our own AI coding assistant," said Usman Khan, founder of APEX:E3, a London-based capital markets software company. "TensorX is simply the only platform we trust with our most sensitive data which we manage on behalf of regulated institutional financial services companies."

TensorX was born from a practical problem. Shane Morton built and sold financial trading software before acquiring ICT Services, one of Ireland's leading data centre infrastructure companies. Through his portfolio of fintech companies, Morton kept hearing the same thing: they wanted to adopt AI but needed certainty that their data would stay within European jurisdiction. Morton has committed €4 million to the latest Nvidia hardware, with €2 million already delivered and a further €2 million on order, leveraging ICT's long-standing procurement networks to secure allocation on chips in short supply globally.

"Demand for sovereign AI infrastructure is outpacing supply across Europe," said Shane Morton, founder of Darius Cubed Ventures. "We're seeing it directly from enterprises in Germany, France, the Netherlands and the Nordics. Our €8m investment is the opening move. There is a far bigger buildout to come, and the infrastructure partnerships we have in Ireland mean we can move at the speed this market demands."

Demand for sovereign AI infrastructure is accelerating. According to Accenture, 62% of European organisations are now seeking sovereign AI solutions, rising to 76% in banking. Gartner forecasts that by 2030, 75% of European enterprises will move AI workloads to local providers. European AI spending is projected to reach $144.6 billion by 2028 (IDC). This shift is already playing out at company level.

Read more about the announcement here: https://tensorx.ai/8-million-european-sovereign-ai-infrastructure/

About TensorX

TensorX is an Irish AI infrastructure company providing private, sovereign inference on dedicated Nvidia GPUs. With zero data retention and hardware on EU-sovereign infrastructure in Dublin and Helsinki, TensorX enables regulated industries to deploy advanced AI in full compliance with GDPR and the EU AI Act. The company supports 33+ open-source models and is backed by Darius Cubed Ventures.

Notes to Editor

Tim Grant is available for interview (broadcast, podcast, print) Craig Donnelly and Shane Morton availability on request High-res headshots and brand assets available on request B-roll and photography from the GPU facility available on request A formal launch event at TensorX's AI builders hub in Clonskeagh, Dublin is planned for later in 2026

Nvidia (NASDAQ: NVDA) shareholders are receiving this quarter’s dividend next week, on Friday, June 26, 2026.

More specifically, investors in the semiconductor leader on record as of June 4 will receive $0.25 per share, as per the latest numbers Finbold retrieved from DivvyDiary.

Notably, the upcoming payment marks an important milestone in Nvidia’s dividend history, being 25 times higher than one issued for the previous quarter on April 1.

Accordingly, investors holding 100 NVDA shares will earn $25 next week as the company’s new dividend and share buyback strategy kicks off.

Nvidia dividends calendar. Source: DivvyDiary New Nvidia dividend strategy Looking back, the upcoming payment is a significant jump, as 100 NVDA shares would have yielded just $1 in April.

With 24.22 billion Nvidia shares outstanding, next Friday’s payout is expected to distribute more or less $6.055 billion to shareholders.

At the time of writing, a $10,000 investment in Nvidia at the beginning of 2026 would have grown to approximately $11,283, the total gain reaching $1,283 with dividends reinvested.

Total Nvidia returns in 2026 with dividends reinvested. Source: DivvyDiary The investment achieved a total return of more or less 12.8% year to date, meaning the portfolio increased by nearly 13% in value over the period. However, Nvidia’s returns during this period have been driven primarily by capital appreciation, not dividend income. 

When annualized, the total return CAGR reaches 30.4%, while the share price alone produced a CAGR of around 30%. The slight difference between these two figures reflects the positive impact of reinvested dividends, which have added modestly to overall performance.

Nvidia yield and payout ratio Overall, Nvidia currently offers an annual payout of $0.28 per share, which translates to a dividend yield of 0.13%. For comparison, the average yield in the sector is 1.37%.

The company has increased its dividend for three consecutive years, demonstrating a commitment to returning capital to shareholders even while maintaining an aggressive growth strategy. 

Finally, the stock pays dividends on a quarterly basis, and the price usually recovers within 2.5 days after the ex-dividend date.

Featured image via Shutterstock

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NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) is back through the $5 trillion mark. CEO Jensen Huang called “the buildout of AI factories, the largest infrastructure expansion in human history” on the most recent earnings call, and the numbers back him up.

Data Center revenue hit $75.246 billion in Q1 FY27, up 92% year over year, with Networking alone growing 199%. The stock is up 14.05% year to date at $212.45. Can shares reach $300 in 2026? Let’s run the math.

What’s Holding NVIDIA Back Right Now NVIDIA shares are down 5.6% over the past month and trade 27% below recent levels relative to expectations. China remains a closed market, with zero Data Center compute revenue from the region in Q1 FY27 versus $4.6 billion a year earlier. Supply commitments now sit at $119 billion, raising execution risk if demand softens.

Reports of a $20 billion debt raise, while likely funding the new $80 billion buyback authorization, sparked debate about why a company with $48.554 billion in quarterly free cash flow needs to tap credit markets. With a beta of 2.2, the stock swings hard on any capex doubt.

Wall Street Sees 41% Upside. Our Model Says Less Of 61 covering analysts, 10 rate it Strong Buy, 48 Buy, 2 Hold, and 1 Sell, with a consensus target of $298.93. Our base case is $235.49 by year end, implying 21.13% upside, with a bull case of $267.96 and a bear case of $218.43. Confidence sits at 90%.

With 95% bullish coverage and earnings growth of 214.5% YoY, the consensus reflects a real fundamental shift. Our model dampens the result because of mega-cap gravity, not because the thesis is broken.

The Path to $300 Per Share Reaching $300 from today’s price of $212.45 would require a 41.2% gain. With forward EPS of $8.01, a price of $300 implies a forward P/E of 37x. Our base case of $235.49 already implies 36x on trailing earnings, meaning the bold target requires only about 1.1x additional multiple expansion on forward numbers.

Q2 guidance of $91 billion in revenue with a 75% non-GAAP gross margin should compress that forward multiple as EPS estimates climb.

Catalysts include a $1 trillion data center buildout, the Meta multiyear deal, the OpenAI 10GW deployment, and Huang’s view that “agentic AI has arrived, doing productive work, generating real value and scaling rapidly”. Primary risk: any cut to hyperscaler capex guidance would hit this stock first and hardest.

Where NVIDIA Trades Today vs Its Earnings Power At $212.45 against forward EPS of $8.01, NVIDIA trades at roughly 27x forward earnings. For a company growing revenue 85.2% and net income 210.6% YoY, with a PEG of 0.631, that is not expensive.

Shares sit between a 52-week low of $141.84 and high of $236.26. The ten-year return of 18,447% shows what compounding looks like when a platform owns its category.

$300 Is a Stretch, But Here’s Why It’s Possible $300 requires a 41.2% gain from here. Three things need to go right.

Q2 FY27 has to land near the $91 billion guide. Blackwell and the upcoming Vera Rubin platform need to keep Data Center Networking compounding at triple digits. And the $80 billion buyback needs to chew through the float meaningfully before year end. Any sign hyperscaler AI capex is plateauing would derail it. We’ve outlined the blueprint for how NVIDIA could reach $300 in 2026.

SpaceX options are officially listed, and they're off to the races.

Less than 30 minutes into the session, SpaceX options are already the third-most traded among single stocks, behind Tesla and Nvidia, which typically trade millions of contracts and over $1 billion a day.

Tom Sosnoff, ThinkOrSwim co-founder, TastyTrade founder and CEO of Lossdog — and the man some have called "the Godfather" of options trading for his prominent role in bringing options trading to retail investors decades ago — sees SpaceX climbing to the top.

"After they settle in and become liquid – that means all the HFT firms reach a volatility consensus – the option volume could surpass TSLA and NVDA as the most active equity," Chicago-based Sosnoff said in a text to CNBC. "That's good for business and good for the retail investor."

More than 300,000 SpaceX options traded in the first 30 minutes of Tuesday's session, with more calls trading than puts and more than twice as many calls bought compared to puts, according to data from ThinkOrSwim.

Over $400 million in SpaceX options premium traded during that time, and over $300 million of it was tied to calls, SpotGamma data show. The most popular contract by volume was the 220-strike call expiring Thursday, a near-the-money trade after a 16% rally in SpaceX. The 210-strike in-the-money calls were also popular, accounting for more than $22 million in premium out of the gate.

"One word of caution would be to wait a day or two until pricing becomes efficient," said Sosnoff. "I'm guessing the initial option pricing will be rich and the markets will be too wide."

Implied volatility in SpaceX was 135 as of writing.

Jensen Huang's company Nvidia makes the computer chips that unleashed a revolution in artificial intelligence. Now he's wagering that an AI buildout can revive U.S. manufacturing, pushing past limits facing science and society.

© 24/7 Wall St. / Getty Images

When a Sequoia Capital partner compares a freshly public stock to NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) three years ago, investors pay attention. That is exactly what Sean MacGuire did on CNBC this week, arguing that “SpaceX right now is more like Nvidia three years ago than Tesla.” He went further on his personal positioning, adding, “Me as an individual, I’m going to hold my shares forever.”

NVIDIA traded at $42.69 on June 16, 2023 and closed at $204.40 on June 12, 2026. MacGuire is telling viewers that SpaceX is sitting at the same kind of inflection.

The Newly Public SpaceX Trade SpaceX (NASDAQ:SPCX) made its market debut on Friday, June 9, 2026, and the tape has been hot. Shares added more than $400 billion in market value yesterday. They’re up another 13% today as of 1:00 p.m. ET. At its IPO price of $135, SpaceX was valued at $1.77 trillion. Today, shares are worth $2.85 trillion. That’s worth more than Amazon and only slightly behind Microsoft.

That valuation is being supported by a real, if early, financial engine. According to the company’s S-1, full-year 2025 revenue grew 33.2%, with the Connectivity segment alone adding $3.788 billion as Starlink subscribers expanded from 4.4 million to 8.9 million over the year. By the first quarter of 2026, subscribers had reached 10.3 million and Connectivity segment adjusted EBITDA hit $2,087 million for the quarter.

MacGuire has some reasons to believe the company could hit very outsized targets in the future.

MacGuire’s Inflection Thesis The current run rate is approximately $18.5 billion annually. MacGuire projects revenue could reach the hundreds of billions of dollars by 2030, a view that is his forecast rather than guidance from the company. He also said Q4 2026 should show nearly 200% year-over-year growth versus Q1 2026, driven by three converging catalysts:

Starship. The S-1 confirms SpaceX expects Starship to commence payload delivery to orbit in the second half of 2026, with milestones already including booster catch-and-reuse and in-space cryogenic propellant transfer. MacGuire characterized the program as already far along and “guaranteed to work,” a confidence level that remains his opinion. Orbital data centers. SpaceX is openly pursuing orbital AI compute at scale and AI chip manufacturing, though the S-1 cautions these initiatives are in early stages and may never reach commercial viability. Starlink direct-to-cell. Starship enables deployment of next-generation V3 satellites and direct-to-cell constellations, expanding the addressable market beyond rooftop terminals. Why The NVIDIA Comparison Has Teeth NVIDIA’s last reported quarter showed why the analogy is provocative. Q1 FY2027 revenue hit $81.61 billion, up 85.2% year over year, with Data Center revenue of $75.25 billion growing 92%, per the company’s SEC filing. Non-GAAP gross margin expanded to 75.0%, and the company guided Q2 to $91.0 billion. NVIDIA now carries a market cap near $5.1 trillion at a forward P/E of 23x. In short, NVIDIA is not longer ‘priced for extreme growth,’ but has been growing faster than SpaceX in recent quarters and is significantly larger.

The bull case MacGuire is articulating: SpaceX owns the launch monopoly, the satellite broadband leader, and an emerging AI infrastructure layer in orbit, all wrapped into one platform business at a moment when the next leg of capex is finally beginning to inflect revenue. NVIDIA may have captured the majority of value in the first wave of AI, but McGuire’s thesis is that SpaceX will capture a brand new opportunity in the next.

The Risks Behind The Hold-Forever Conviction Investors should treat the hold-forever line and the hundreds-of-billions revenue figure as one prominent VC’s conviction call, not company guidance. SpaceX itself flags substantial execution risk on Starship reusability, regulatory cadence, and unproven markets like lunar logistics and orbital compute. The S-1 also discloses a 2025 net loss of $4,937 million as R&D and depreciation ramped.

Reddit sentiment on SPCX is currently 44.80 (Neutral) weekly, with top posts already debating whether the IPO is “literally free money.” That is the kind of retail enthusiasm that often greets generational-comparison trades. Whether SPCX really becomes the next NVIDIA depends on Starship payload delivery hitting the back half of 2026 on schedule. That is the single milestone worth tracking next.

The artificial intelligence (AI) revolution has made Nvidia (NVDA 2.16%) the world's largest public company at a market cap of approximately $5 trillion today. That's a share price of $205, thanks to stock splits. But despite Nvidia's historic run these past several years, there could be more upside ahead.

How much? Wall Street analysts have 12-month price targets as high as $743 per share. It's a lofty number to say the least. That's more than triple today's stock price, and would value Nvidia at over $15 trillion, an unprecedented valuation.

Here's a look at what's likely driving these ambitious price targets, and how likely Nvidia stock is to actually reach $700 per share over the coming year.

Image source: The Motley Fool.

The Vera Rubin boom is coming Nvidia's business is at an exciting threshold right now. The company's next-generation AI chip platform, Vera Rubin, is in full production and poised to start shipping in the coming months. Vera Rubin consists of six total chips that combine to create an AI supercomputer designed for agentic AI and inference workloads. It also expands Nvidia's chip footprint across the server rack. It's a significant growth catalyst at a time when the AI industry is moving from training to inference.

NVDA Revenue (TTM) data by YCharts

CEO Jensen Huang has said that Nvidia expects $1 trillion in total orders between Vera Rubin and its current-generation flagship architecture, Grace Blackwell, by 2027. Such a large pipeline points to tremendous revenue growth ahead for Nvidia, which generated $253.5 billion in total sales over the past 12 months.

Why the price target isn't the point

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Sure, Nvidia stock could reach $700 over the next year, but that depends a lot on its valuation.

Nvidia trades at 20 times its trailing 12-month sales, and that ratio would need to increase significantly to get shares to $700 over the next year, even with all that projected growth ahead. The stock has traded at higher multiples on its sales before, but that's harder for a stock to sustain as the numbers grow larger. It seems that $700 per share is definitely doable, but probably not in the next 12 months.

But that shouldn't be the primary focus. Price targets are eye-catching, but investors should instead concentrate on the company's broader direction. Nvidia is about to enter yet another growth phase as Vera Rubin begins impacting sales over the next several quarters. That's probably why 94% of the 69 Wall Street analysts surveyed by CNN Business rate the stock as a buy today. Wall Street isn't always right, but in Nvidia's case, the future still looks plenty bright enough to buy the stock.

Since the dawn of artificial intelligence (AI) in early 2023, Nvidia (NVDA 2.16%) has emerged as the de facto poster child for the space. The company's graphics processing units (GPUs), which were originally designed to create lifelike images in video games (ergo the name), have been repurposed to provide the sheer number-crunching capabilities needed to train and run AI models.

During that time, Nvidia's financial results have been on quite a tear, with a 1,250% increase in revenue and a 4,000% jump in net income. These blistering financial results have driven the stock up 1,320%, enriching shareholders along the way. Indeed, some investors have begun to wonder if the remaining upside is limited, especially since Nvidia is already the world's largest public company with a market cap of $5 trillion (as I write this).

However, Nvidia claims to have clear visibility into its sales over the coming two years, and the numbers are staggering.

Image source: Getty Images.

The data center is driving this train While Nvidia's GPUs are the face of the company's success, it's the company's comprehensive, full-stack approach that has kept the competition at bay. Nvidia combines its processors with a host of accessories and software that ensure optimal performance from its industry-leading GPUs.

The company has mastered the concept of parallel processing, a technique for subdividing large computational tasks into smaller, more manageable tasks, which are then assigned to multiple cores and processed in parallel by the GPU. This accelerates intensive workloads, completing them more quickly than would otherwise be possible. This is the "secret sauce" that has enabled AI to thrive and fueled Nvidia's epic run.

Currently, the vast majority of AI processing takes place in the data center. This has, in turn, fueled the ongoing data center boom, with spending expected to reach $7 trillion by 2030, according to McKinsey & Company. Not surprisingly, Nvidia commands a significant share of the data center GPU space. While estimates vary, the company controls between 85% and 92% of the market.

Nvidia CEO Jensen Huang has made no secret about what's to come over the next couple of years, and the implications are clear. Huang said:

We have $500 billion dollars' worth of visibility. And at this point, at this point, with another 21 more months to go to the end of (calendar) 2027, we already have high confidence, high confidence visibility of $1 trillion plus of Blackwell and Rubin, not anything else, just Blackwell and Rubin.

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Fun with numbers Using Huang's forecast as a starting point, we can run the numbers to estimate Nvidia's stock price by the end of next year.

For its fiscal 2027 first quarter (ended April 26), the company generated record revenue of $81.6 billion, up 85% year over year. This suggests that Nvidia expects to generate the remaining $918 billion over the next seven quarters.

Running the numbers reveals it will take roughly 12% sequential growth in each of the next seven quarters to generate total revenue of $1 trillion over two years. Mathematically, Nvidia would generate revenue of roughly $389 billion in 2026 and $611 billion in 2027. That works out to 80% growth this year and 57% next year, which isn't hard to imagine, given the 85% growth it delivered in the first quarter.

Nvidia currently has a market cap of $5 trillion and a forward price-to-sales (P/S) ratio of 20 (as of this writing). If its P/S ratio remains constant, and if Nvidia were to generate revenue of $611 billion in 2027 -- which isn't a given -- its stock price could jump 138% to $506 per share. That would push the company's market cap to roughly $12.3 trillion.

Don't take my word for it. Beth Kindig, founder and lead tech analyst at the I/O Fund, has done the math and believes Nvidia will be a $20 trillion company by the end of the decade.

The key reason that Nvidia can reach a $20 trillion market cap by 2030 is because the company is moving its GPU generation cadence to a rapid 12-18 month cycle compared to custom silicon, which is typically on a 3-5 year cycle.

The company's relentless research and development cycle has been the driver that has kept Nvidia ahead of the competition in the race to dominate AI -- and its reign is likely just beginning.

The usual caveats Just to reiterate, this is all fun with numbers, but it helps to illustrate that there's a long runway of growth ahead for Nvidia. Furthermore, any changes to the underlying assumptions could drastically alter the outcome.

Rivals are working feverishly to capture their share of this sizable opportunity. This comes in the form of rival GPUs, Application-Specific Integrated Circuits (ASICs), and more. That said, even if Nvidia doesn't reach that lofty benchmark next year, its growth trajectory is hard to deny.

Moreover, at just 23 times forward earnings and 16 times next year's expected earnings, Nvidia is a bargain. The accelerating adoption of AI and the company's long track record make it clear that Nvidia is an opportunity investors shouldn't sleep on.

Nvidia is aiming to raise at least $20 billion in debt, according to sources with knowledge of the matter, in the chipmaker's first bond sale since the start of the AI boom.

In a filing with the SEC on Monday, Nvidia disclosed plans for the capital raise but didn't include the dollar amount. Earlier this year, the chipmaker said it could raise up to $25 billion through issuance of unsecured commercial paper notes. The debt sale could end up closer to $25 billion, said the sources, who asked not to be named because the numbers aren't public.

Nvidia shares rose 3,5% on Monday and are up about 14% this year.

The chipmaker is the latest tech company tied to the artificial intelligence trade to tap the capital markets. Alphabet announced plans earlier this month to raise $85 billion in equity-related offerings after securing more than $55 billion in fresh debt since November. And last week, Super Micro announced $7 billion in equity-related financing deals to help to cover the cost of hardware component purchases.

Amazon, meanwhile, raised roughly $54 billion in debt earlier this year in U.S. and European bond sales, and announced plans last week to raise about $10 billion in a Canadian debt sale

Nvidia has about $7.5 billion in long-term debt and another $1 billion in short-term debt. In its last debt raise in 2021, Nvidia brought in $5 billion, with notes maturing as late as 2031. But Nvidia was a much smaller company then, generating revenue in fiscal 2022 of about $27 billion, compared to sales of $216 billion in fiscal 2026.

The launch of OpenAI's ChatGPT in late 2022 was a major catalyst for Nvidia's historic rate of growth that followed, as AI model companies and hyperscalers started gobbling up as many of the company's graphics processing units as they could.

An Nvidia spokesperson said that the company intends to use the proceeds from the offering for general corporate purposes, including repayment and refinancing of existing debt.

Nvidia announced an aggressive capital return program in May, when it raised its dividend from a penny a share to 25 cents and said it planned to repurchase $80 billion in shares. Nvidia generated $49 billion in free cash flow in the latest quarter, up from $35 billion in the same period a year earlier, and reiterated plans in its latest earnings call to "return roughly 50% of free cash flow to shareholders this year."

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Nvidia (NASDAQ:NVDA | NVDA Price Prediction) has been a huge winner of the AI revolution, but the big question is whether the competition is finally getting a chance to catch up. It seems like every big tech firm with enough money to spend wants to build its own custom silicon, and it makes a lot of sense, especially since how much money is flowing into Nvidia’s pockets for its GPUs. With a likely inference boom on the horizon, perhaps the custom silicon is more of a pressure release than a way to move past Nvidia.

At the end of the day, hyperscalers are making real, massive strides in efficiency with their latest silicon. From Google (whose parent firm is Alphabet (NASDAQ:GOOGL)) TPUs to Meta Platforms‘ (NASDAQ:META) MTIA chips, it looks like AI innovators are about ready to move on.

But, given the magnitude of AI demand and how quickly the appetite for tokens could rise, it feels like there’s more than enough demand to go around, even as new suppliers join the chat. Despite the new options, though, firms, including the hyperscalers making custom silicon themselves, are still using Nvidia GPUs.

But what happens when the hyperscalers bridge the gap and start gravitating more towards their own silicon while potentially selling it to third parties? That’s the big question that might keep Nvidia shareholders up at night. CapEx is blasting off now, but who knows? A pause or pullback in spend could be in the future if a digestion phase is needed. Time will tell.

The semis recent volatility might introduce a new risk As Nvidia’s multiple compresses a bit as shares drag their feet relative to its rivals in the semi scene, I do think that the case for taking a raincheck is getting stronger. Not only is Nvidia stock not as explosive as some of the other semi stocks out there, but the shares also stand to sink if the semiconductor industry as a whole collectively rolls over. Perhaps there’s a reason why bear ETFs against the semiconductors have been so popular in the past couple of weeks.

While I do see opportunity in Nvidia longer term, I cannot say that the road higher won’t be without its fair share of bumps (or perhaps even a vicious bear market drop). I have no idea when semis will fold. Perhaps a rate hike will do it. After all, there’s nothing quite like higher rates to incentivize pulling back on spend. But, regardless, I think Meta Platforms stands out as an AI chip innovator without all of the downside risks should semis decide to nosedive tomorrow.

MTIA looks seriously impressive Of all the AI strategies, Meta’s seems the most “Mad Max,” so to speak. If it’s not reports of data centers in tents, an AI version of Mark Zuckerberg, big spend on the superintelligence team, or the rapid advancements in MTIA, it’s clear Zuckerberg is more than willing to act as a wartime CEO in this AI revolution. And I think that’s exactly why Meta will be successful in the AI race.

In any case, the six-month innovation loop with Meta’s silicon, I believe, shows just how serious Meta is in securing its custom silicon future. With a deep focus on generative AI and recommendation inference, MTIA is very application-specific. It’s custom-tailored to its business, and it might hold the keys to the future of advertising in the AI age.

In any case, things are moving fast and in a direction that I think could be most conducive to stunning ROIs. Make it for yourself, and perhaps others might come knocking. With the door open to becoming a hyperscaler willing to sell AI compute, I think the whole Meta AI story is fundamentally misunderstood. At just 20.6 times trailing price-to-earnings (P/E), shares scream deep value hiding in plain sight.

The bottom line Where some see Meta’s AI as a bit of a jumbled mess or behind in the race, I see it as on an aggressive launch pad. If anything, Zuckerberg is a wartime CEO who’s positioned to win big in AI as he deploys the capital and makes forward-thinking decisions that I think rivals might want to copy.

Nvidia (NVDA, Financials) is returning to the bond market for the first time since 2021, with plans to raise at least $20 billion.

At first, the move may raise eyebrows. Nvidia is highly profitable and continues to generate strong cash flow. But large companies often borrow even when they do not urgently need cash, especially when they want more flexibility.

The company said it plans to use the money for general corporate purposes, including repaying or refinancing existing debt. The offering is expected to include bonds with maturities ranging from two to 30 years.

JPMorgan, Goldman Sachs and Morgan Stanley are helping arrange the sale.

For investors, this does not look like a warning sign. It looks more like Nvidia strengthening its balance sheet options while demand for its chips remains strong.

Nvidia logo is seen in this illustration taken June 11, 2026. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab

CompaniesJune 15 (Reuters) - Nvidia (NVDA.O), opens new tab will raise $20 billion through a ​U.S. bond issuance, a source told Reuters on Monday, tapping ‌the debt market to fund the massive capital requirements to produce cutting-edge AI chips.

The AI chip leader has not accessed investment grade bond market in five years, ​previously raising $5 billion in June 2021, the source familiar with ​the matter said, declining to be named as the plan ⁠was still private.

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The bond consists of seven tranches of notes, maturing as ​late as 2056, according to a term sheet seen by Reuters. A ​company spokesperson said Nvidia aims to use the proceeds for general corporate purposes, including the repayment and refinancing of outstanding notes.

Big Tech companies have signaled that spending ​on AI would not slow down, with combined outlays set to surpass $700 ​billion this year, up from around $400 billion in 2025.

Meta (META.O), opens new tab in October filed for its ‌largest ⁠bond offering of up to $30 billion, while Alphabet (GOOGL.O), opens new tab last month disclosed its plans to sell Japanese yen-denominated bonds for the first time.

While Nvidia has not been building large-scale data centers, its chips, which are used in those ​servers, are seeing ​red-hot demand from ⁠companies looking to train, and run increasingly advanced models.

In order to keep pace with the fast-evolving AI sector, ​Nvidia has been investing heavily in building the most ​advanced ⁠processors, now releasing a new family of chips every year, each with higher AI capabilities than the last.

The company has $13.24 billion in cash and cash ⁠equivalents ​as of quarter ended April 2026. Nvidia ​shares were up 2% in early trading.

Goldman Sachs, J.P. Morgan and Morgan Stanley are the bookrunners.

Reporting ​by Zaheer Kachwala in Bengaluru; Editing by Shilpi Majumdar and Arun Koyyur

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

Saeed Azhar is a Reuters financial journalist and part of the U.S. banking team, which covers Wall Street's biggest banks. He focuses on Goldman Sachs and Bank of America, and also writes about regional banks. Before moving to New York in July 2022, he led the finance team in the Middle East from Dubai, and also worked in Singapore, covering Southeast Asia finance.