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Two Sigma Securities LLC decreased its position in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 61.3% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 3,849 shares of the computer hardware maker’s stock after selling 6,103 shares during the quarter. Two Sigma Securities LLC’s holdings in NVIDIA were worth $770,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also recently modified their holdings of the company. J. Stern & Co. LLP boosted its holdings in NVIDIA by 13,709.1% in the 4th quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker’s stock valued at $23,454,297,000 after purchasing an additional 124,849,603 shares during the last quarter. Jupiter Topco LLC acquired a new stake in shares of NVIDIA during the 2nd quarter worth approximately $16,156,076,000. Van ECK Associates Corp increased its holdings in shares of NVIDIA by 34.7% during the 2nd quarter. Van ECK Associates Corp now owns 75,849,721 shares of the computer hardware maker’s stock worth $15,176,771,000 after buying an additional 19,522,304 shares during the last quarter. Amundi raised its position in shares of NVIDIA by 10.4% during the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock valued at $23,329,141,000 after buying an additional 12,575,177 shares during the period. Finally, SEB Asset Management AB purchased a new stake in shares of NVIDIA during the 1st quarter valued at approximately $1,692,807,000. Hedge funds and other institutional investors own 65.27% of the company’s stock.

NVIDIA Stock Up 0.5% Shares of NASDAQ NVDA opened at $228.38 on Thursday. The firm has a market cap of $5.50 trillion, a price-to-earnings ratio of 28.87, a PEG ratio of 1.76 and a beta of 2.22. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14. NVIDIA Corporation has a 52-week low of $164.27 and a 52-week high of $236.54. The business’s 50 day moving average is $217.76 and its two-hundred day moving average is $206.94.

NVIDIA (NASDAQ:NVDA – Get Free Report) last released its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping the consensus estimate of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%.The business had revenue of $96.22 billion during the quarter, compared to analyst estimates of $92.27 billion. During the same period last year, the business posted $1.05 earnings per share. The company’s quarterly revenue was up 105.9% on a year-over-year basis. Research analysts predict that NVIDIA Corporation will post 9.25 EPS for the current year. NVIDIA declared that its Board of Directors has approved a stock buyback plan on Monday, September 28th that allows the company to repurchase $150.00 billion in shares. This repurchase authorization allows the computer hardware maker to reacquire up to 2.8% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s leadership believes its stock is undervalued.

NVIDIA Announces Dividend The company also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be paid a dividend of $0.25 per share. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $1.00 annualized dividend and a yield of 0.4%. NVIDIA’s dividend payout ratio is presently 12.64%.

Insider Activity at NVIDIA In related news, EVP Timothy Teter sold 30,460 shares of the firm’s stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the completion of the transaction, the executive vice president directly owned 2,687,660 shares in the company, valued at $598,810,648. This trade represents a 1.12% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Stevens sold 622,239 shares of the business’s stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the sale, the director owned 2,336,531 shares in the company, valued at $541,187,310.22. This trade represents a 21.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 1,766,118 shares of company stock worth $399,450,353 in the last three months. 3.94% of the stock is owned by company insiders.

Analysts Set New Price Targets Several research analysts recently weighed in on NVDA shares. Oppenheimer set a $315.00 price objective on NVIDIA and gave the stock an “outperform” rating in a research report on Thursday, August 27th. Benchmark restated a “buy” rating and issued a $335.00 target price on shares of NVIDIA in a research report on Thursday, August 27th. KGI Securities upped their price target on NVIDIA from $335.00 to $345.00 in a research note on Thursday, August 27th. Daiwa Securities Group lowered their price target on NVIDIA from $255.00 to $245.00 and set an “outperform” rating for the company in a report on Thursday, September 17th. Finally, Wells Fargo & Company reissued an “overweight” rating and set a $315.00 price objective on shares of NVIDIA in a research report on Tuesday, August 11th. Four investment analysts have rated the stock with a Strong Buy rating, fifty have issued a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Buy” and a consensus price target of $324.14.

Read Our Latest Report on NVIDIA

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

Positive Sentiment: NVIDIA authorized an additional $150 billion for share repurchases, raising total remaining authorization to approximately $235 billion through fiscal 2028. The move signals management’s confidence in the company’s cash generation and suggests it views the stock as attractively valued. Stock Market Today, Sept. 30: Nvidia Authorizes $150B Buyback, Lifting Total to $235B Positive Sentiment: The latest bullish case centers on sustained AI spending. NVIDIA’s data-center revenue reportedly surged 117% year over year to $89 billion, while management continues to forecast substantial growth despite the company’s enormous scale. Analysts cited valuation, hyperscaler capital expenditures and the company’s full-stack AI platform as potential upside drivers. Nvidia’s Demand Outlook Still Supports The Bull Case Positive Sentiment: Political and regulatory developments were also favorable. President Donald Trump reportedly supported industry self-regulation at a White House AI meeting attended by CEO Jensen Huang, reducing near-term concerns that stricter rules could slow AI deployment. NVIDIA’s new AI safety platform could further support demand for inference, monitoring and networking infrastructure. Nvidia Was the Big Winner of Trump’s AI Lunch, Here’s Why Positive Sentiment: NVIDIA’s reported agreement to acquire Hugging Face for nearly $13 billion would expand its reach into open-source models, developer tools, datasets and AI distribution. The company is also investing in AI infrastructure partners, reinforcing its broader ecosystem strategy beyond GPUs. Nvidia just spent nearly $13 billion on something other than GPUs Neutral Sentiment: Softer-than-expected inflation helped support growth-oriented technology shares by reducing immediate expectations for additional Federal Reserve rate increases. However, higher interest rates remain a key valuation risk for AI-linked stocks. Why is Nvidia stock rising on Wednesday? Negative Sentiment: Risks remain around an AI spending slowdown, particularly if hyperscalers reduce capital expenditures. DeepSeek’s work with Huawei on software for alternative AI chips could also challenge NVIDIA’s software moat, while rising memory and networking costs may pressure gross margins. Investor Michael Burry’s reported bearish options position adds to skepticism, although it has not changed the company’s fundamental outlook. If AI Capex Cracks, Nvidia Could Feel It Before Meta Does NVIDIA Company Profile (Free Report)

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company’s products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.

Featured Articles Five stocks we like better than NVIDIA Deutsche Bank Makes a Contrarian Call on Netflix—What Does It Mean for Investors? O’Reilly Automotive’s Stock Slump Hides a Stronger Business McDonald’s Stock Slump Makes Its AI Pricing Bet Even Riskier Broadcom’s AI Growth Story Faces a $161 Billion Anthropic Test Want to see what other hedge funds are holding NVDA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVIDIA Corporation (NASDAQ:NVDA – Free Report).

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Texas Capital Bank Wealth Management Services Inc lowered its holdings in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 7.1% during the second quarter, according to the company in its most recent filing with the SEC. The fund owned 739,865 shares of the computer hardware maker’s stock after selling 56,739 shares during the quarter. NVIDIA comprises 7.9% of Texas Capital Bank Wealth Management Services Inc’s investment portfolio, making the stock its 3rd biggest holding. Texas Capital Bank Wealth Management Services Inc’s holdings in NVIDIA were worth $148,040,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also made changes to their positions in the business. LightSquare Wealth Management LLC raised its holdings in NVIDIA by 0.3% during the second quarter. LightSquare Wealth Management LLC now owns 18,695 shares of the computer hardware maker’s stock worth $3,741,000 after purchasing an additional 49 shares in the last quarter. Defender Capital LLC. lifted its position in shares of NVIDIA by 0.7% during the 2nd quarter. Defender Capital LLC. now owns 7,534 shares of the computer hardware maker’s stock worth $1,507,000 after buying an additional 50 shares during the last quarter. Kooman & Associates boosted its holdings in shares of NVIDIA by 0.6% in the 2nd quarter. Kooman & Associates now owns 8,464 shares of the computer hardware maker’s stock valued at $1,694,000 after buying an additional 50 shares in the last quarter. Roof Eidam Maycock Peralta LLC boosted its holdings in shares of NVIDIA by 0.3% in the 2nd quarter. Roof Eidam Maycock Peralta LLC now owns 18,827 shares of the computer hardware maker’s stock valued at $3,767,000 after buying an additional 50 shares in the last quarter. Finally, Persium Advisors LLC grew its position in shares of NVIDIA by 3.5% in the 2nd quarter. Persium Advisors LLC now owns 1,466 shares of the computer hardware maker’s stock valued at $293,000 after buying an additional 50 shares during the last quarter. Institutional investors and hedge funds own 65.27% of the company’s stock.

Insider Transactions at NVIDIA In other news, EVP Timothy Teter sold 30,460 shares of NVIDIA stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $222.80, for a total value of $6,786,488.00. Following the sale, the executive vice president owned 2,687,660 shares of the company’s stock, valued at $598,810,648. The trade was a 1.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Colette Kress sold 34,918 shares of the business’s stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the transaction, the chief financial officer owned 765,103 shares in the company, valued at approximately $167,595,812.15. This trade represents a 4.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 1,766,118 shares of company stock worth $399,450,353. Company insiders own 3.94% of the company’s stock.

NVIDIA Trading Up 0.5% Shares of NVDA stock opened at $228.38 on Thursday. The company has a market capitalization of $5.50 trillion, a P/E ratio of 28.87, a price-to-earnings-growth ratio of 1.76 and a beta of 2.22. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14. The business’s 50 day moving average is $217.76 and its two-hundred day moving average is $206.94. NVIDIA Corporation has a twelve month low of $164.27 and a twelve month high of $236.54. NVIDIA (NASDAQ:NVDA – Get Free Report) last released its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping the consensus estimate of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%.The business had revenue of $96.22 billion during the quarter, compared to analysts’ expectations of $92.27 billion. During the same quarter in the prior year, the business earned $1.05 earnings per share. The company’s quarterly revenue was up 105.9% compared to the same quarter last year. Equities analysts forecast that NVIDIA Corporation will post 9.25 EPS for the current year.

NVIDIA announced that its board has approved a share repurchase plan on Monday, September 28th that allows the company to repurchase $150.00 billion in shares. This repurchase authorization allows the computer hardware maker to buy up to 2.8% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s board believes its shares are undervalued.

NVIDIA Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th will be given a dividend of $0.25 per share. The ex-dividend date is Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a yield of 0.4%. NVIDIA’s dividend payout ratio is presently 12.64%.

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

Positive Sentiment: NVIDIA authorized an additional $150 billion for share repurchases, raising total remaining authorization to approximately $235 billion through fiscal 2028. The move signals management’s confidence in the company’s cash generation and suggests it views the stock as attractively valued. Stock Market Today, Sept. 30: Nvidia Authorizes $150B Buyback, Lifting Total to $235B Positive Sentiment: The latest bullish case centers on sustained AI spending. NVIDIA’s data-center revenue reportedly surged 117% year over year to $89 billion, while management continues to forecast substantial growth despite the company’s enormous scale. Analysts cited valuation, hyperscaler capital expenditures and the company’s full-stack AI platform as potential upside drivers. Nvidia’s Demand Outlook Still Supports The Bull Case Positive Sentiment: Political and regulatory developments were also favorable. President Donald Trump reportedly supported industry self-regulation at a White House AI meeting attended by CEO Jensen Huang, reducing near-term concerns that stricter rules could slow AI deployment. NVIDIA’s new AI safety platform could further support demand for inference, monitoring and networking infrastructure. Nvidia Was the Big Winner of Trump’s AI Lunch, Here’s Why Positive Sentiment: NVIDIA’s reported agreement to acquire Hugging Face for nearly $13 billion would expand its reach into open-source models, developer tools, datasets and AI distribution. The company is also investing in AI infrastructure partners, reinforcing its broader ecosystem strategy beyond GPUs. Nvidia just spent nearly $13 billion on something other than GPUs Neutral Sentiment: Softer-than-expected inflation helped support growth-oriented technology shares by reducing immediate expectations for additional Federal Reserve rate increases. However, higher interest rates remain a key valuation risk for AI-linked stocks. Why is Nvidia stock rising on Wednesday? Negative Sentiment: Risks remain around an AI spending slowdown, particularly if hyperscalers reduce capital expenditures. DeepSeek’s work with Huawei on software for alternative AI chips could also challenge NVIDIA’s software moat, while rising memory and networking costs may pressure gross margins. Investor Michael Burry’s reported bearish options position adds to skepticism, although it has not changed the company’s fundamental outlook. If AI Capex Cracks, Nvidia Could Feel It Before Meta Does Wall Street Analysts Forecast Growth NVDA has been the topic of several research analyst reports. Rosenblatt Securities reaffirmed a “buy” rating and set a $390.00 price target on shares of NVIDIA in a research report on Tuesday. Jefferies Financial Group reissued a “buy” rating on shares of NVIDIA in a report on Wednesday, August 26th. TD Cowen reaffirmed a “buy” rating on shares of NVIDIA in a report on Tuesday, August 18th. JPMorgan Chase & Co. upped their price target on shares of NVIDIA from $280.00 to $320.00 and gave the company an “overweight” rating in a research report on Thursday, August 27th. Finally, Oppenheimer set a $315.00 price target on shares of NVIDIA and gave the stock an “outperform” rating in a research note on Thursday, August 27th. Four analysts have rated the stock with a Strong Buy rating, fifty have issued a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Buy” and an average target price of $324.14.

Get Our Latest Research Report on NVDA

NVIDIA Profile (Free Report)

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company’s products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.

Recommended Stories Five stocks we like better than NVIDIA Deutsche Bank Makes a Contrarian Call on Netflix—What Does It Mean for Investors? O’Reilly Automotive’s Stock Slump Hides a Stronger Business McDonald’s Stock Slump Makes Its AI Pricing Bet Even Riskier Broadcom’s AI Growth Story Faces a $161 Billion Anthropic Test

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Tiemann Investment Advisors LLC lowered its position in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 7.3% in the second quarter, according to its most recent disclosure with the SEC. The institutional investor owned 35,730 shares of the computer hardware maker’s stock after selling 2,810 shares during the quarter. NVIDIA comprises 2.6% of Tiemann Investment Advisors LLC’s holdings, making the stock its 6th biggest position. Tiemann Investment Advisors LLC’s holdings in NVIDIA were worth $7,149,000 at the end of the most recent quarter.

A number of other institutional investors also recently modified their holdings of the business. Boyd Wealth Management LLC grew its position in NVIDIA by 273.4% during the second quarter. Boyd Wealth Management LLC now owns 9,145 shares of the computer hardware maker’s stock worth $1,830,000 after buying an additional 6,696 shares in the last quarter. Altshuler Shaham Ltd increased its stake in NVIDIA by 6,451.9% during the 1st quarter. Altshuler Shaham Ltd now owns 637,236 shares of the computer hardware maker’s stock worth $111,134,000 after acquiring an additional 627,510 shares during the period. Storen Legacy Partners LLC acquired a new position in NVIDIA in the 4th quarter valued at $1,350,000. Baker Tilly Wealth Management LLC raised its holdings in NVIDIA by 7.4% in the 2nd quarter. Baker Tilly Wealth Management LLC now owns 71,898 shares of the computer hardware maker’s stock valued at $14,386,000 after acquiring an additional 4,958 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership lifted its position in shares of NVIDIA by 3.6% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 26,652,420 shares of the computer hardware maker’s stock valued at $4,970,704,000 after acquiring an additional 936,506 shares during the period. Institutional investors own 65.27% of the company’s stock.

NVIDIA Stock Performance NASDAQ:NVDA opened at $228.38 on Thursday. NVIDIA Corporation has a twelve month low of $164.27 and a twelve month high of $236.54. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14. The stock’s 50-day simple moving average is $217.76 and its 200 day simple moving average is $206.94. The firm has a market capitalization of $5.50 trillion, a PE ratio of 28.87, a price-to-earnings-growth ratio of 1.76 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA – Get Free Report) last issued its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping the consensus estimate of $2.09 by $0.13. The firm had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%.The business’s quarterly revenue was up 105.9% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.05 earnings per share. On average, analysts anticipate that NVIDIA Corporation will post 9.25 EPS for the current fiscal year. NVIDIA Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be issued a dividend of $0.25 per share. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $1.00 annualized dividend and a dividend yield of 0.4%. NVIDIA’s payout ratio is 12.64%.

NVIDIA declared that its Board of Directors has initiated a share repurchase program on Monday, September 28th that permits the company to repurchase $150.00 billion in shares. This repurchase authorization permits the computer hardware maker to reacquire up to 2.8% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s leadership believes its shares are undervalued.

Wall Street Analyst Weigh In NVDA has been the topic of a number of recent analyst reports. Melius Research set a $420.00 price target on NVIDIA in a research report on Thursday, August 27th. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $350.00 price objective on shares of NVIDIA in a research report on Monday, August 24th. DZ Bank reiterated a “buy” rating on shares of NVIDIA in a research note on Wednesday, August 26th. Evercore set a $465.00 target price on shares of NVIDIA and gave the company an “outperform” rating in a report on Thursday, August 27th. Finally, UBS Group set a $300.00 target price on shares of NVIDIA and gave the company a “buy” rating in a research report on Thursday, August 27th. Four investment analysts have rated the stock with a Strong Buy rating, fifty have given a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, NVIDIA has an average rating of “Buy” and an average price target of $324.14.

Read Our Latest Analysis on NVIDIA

Insider Buying and Selling In other NVIDIA news, Director Mark A. Stevens sold 622,239 shares of the business’s stock in a transaction on Friday, September 4th. The shares were sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the sale, the director owned 2,336,531 shares of the company’s stock, valued at approximately $541,187,310.22. The trade was a 21.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Timothy S. Teter sold 30,460 shares of the company’s stock in a transaction on Monday, September 21st. The stock was sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the transaction, the executive vice president owned 2,687,660 shares of the company’s stock, valued at $598,810,648. This trade represents a 1.12% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,766,118 shares of company stock worth $399,450,353 in the last three months. 3.94% of the stock is owned by corporate insiders.

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

Positive Sentiment: NVIDIA authorized an additional $150 billion for share repurchases, raising total remaining authorization to approximately $235 billion through fiscal 2028. The move signals management’s confidence in the company’s cash generation and suggests it views the stock as attractively valued. Stock Market Today, Sept. 30: Nvidia Authorizes $150B Buyback, Lifting Total to $235B Positive Sentiment: The latest bullish case centers on sustained AI spending. NVIDIA’s data-center revenue reportedly surged 117% year over year to $89 billion, while management continues to forecast substantial growth despite the company’s enormous scale. Analysts cited valuation, hyperscaler capital expenditures and the company’s full-stack AI platform as potential upside drivers. Nvidia’s Demand Outlook Still Supports The Bull Case Positive Sentiment: Political and regulatory developments were also favorable. President Donald Trump reportedly supported industry self-regulation at a White House AI meeting attended by CEO Jensen Huang, reducing near-term concerns that stricter rules could slow AI deployment. NVIDIA’s new AI safety platform could further support demand for inference, monitoring and networking infrastructure. Nvidia Was the Big Winner of Trump’s AI Lunch, Here’s Why Positive Sentiment: NVIDIA’s reported agreement to acquire Hugging Face for nearly $13 billion would expand its reach into open-source models, developer tools, datasets and AI distribution. The company is also investing in AI infrastructure partners, reinforcing its broader ecosystem strategy beyond GPUs. Nvidia just spent nearly $13 billion on something other than GPUs Neutral Sentiment: Softer-than-expected inflation helped support growth-oriented technology shares by reducing immediate expectations for additional Federal Reserve rate increases. However, higher interest rates remain a key valuation risk for AI-linked stocks. Why is Nvidia stock rising on Wednesday? Negative Sentiment: Risks remain around an AI spending slowdown, particularly if hyperscalers reduce capital expenditures. DeepSeek’s work with Huawei on software for alternative AI chips could also challenge NVIDIA’s software moat, while rising memory and networking costs may pressure gross margins. Investor Michael Burry’s reported bearish options position adds to skepticism, although it has not changed the company’s fundamental outlook. If AI Capex Cracks, Nvidia Could Feel It Before Meta Does About NVIDIA (Free Report)

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company’s products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.

Recommended Stories Five stocks we like better than NVIDIA Deutsche Bank Makes a Contrarian Call on Netflix—What Does It Mean for Investors? O’Reilly Automotive’s Stock Slump Hides a Stronger Business McDonald’s Stock Slump Makes Its AI Pricing Bet Even Riskier Broadcom’s AI Growth Story Faces a $161 Billion Anthropic Test

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.

Nvidia just unlocked nearly $100 billion in buyback firepower while demand for its chips outstrips supply through 2028, and the valuation tells a story most investors are reading backwards.

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NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) just expanded its capital return program, adding another data point to its long-term investment case.

My thesis is simple. Every AI lab, cloud provider, and government needs the machinery NVIDIA makes, and it can’t build enough of it. Management said on the August call that “NVIDIA Compute is fully utilized across every cloud we serve,” and it expects supply to remain a bottleneck at least through the end of fiscal year 2028. A business sold out for years carries unusual revenue visibility.

Buyback Firepower Signals Management Confidence The board added $80.0 billion to the repurchase authorization in May 2026, leaving about $99.0 billion available at the end of Q2 FY2027. That quarter, NVIDIA returned a record $26 billion: $20 billion in buybacks and $6 billion in dividends. Against a plan to return 50% or more of free cash flow, it returned 60% year to date, and management said it intends to “increase and return excess free cash flow net of strategic uses.” The quarterly dividend also rose from $0.01 to $0.25 per share. Every share retired with internally generated cash gives remaining shareholders a bigger claim on future profits.

Three Numbers Driving NVIDIA’s Momentum Growth is accelerating. Q2 revenue hit $96.22 billion, up 105.85% year over year, the fourth consecutive quarter of accelerating growth. Guidance calls for $108.0 billion next quarter, with preliminary fiscal 2028 growth of about 70%.

Each generation makes more. Revenue per gigawatt rose from $18 billion for Hopper to $25 billion for Blackwell and $40 billion for Vera Rubin, now in full production.

The balance sheet is a strong. Debt to equity is at 0.0726, interest coverage at 503.4x, and return on invested capital near 92.2%. Q2 EPS of $2.22 topped the $2.09 consensus, the 5th consecutive beat.

How NVIDIA Stacks Up Against AMD and Broadcom Advanced Micro Devices (NASDAQ:AMD) trades near 40 times forward earnings versus NVIDIA’s 25, with a trailing operating margin of 17.2% against NVIDIA’s 66.2%. AMD carries a higher valuation alongside lower profitability.

Broadcom (NASDAQ:AVGO) looks cheaper at about 19 times forward earnings and yields 0.74%. Yet its return on equity of 44.3% trails NVIDIA’s 117.2%, and its latest quarterly revenue growth of 85.5% falls behind NVIDIA’s 105.9%. NVIDIA’s modest valuation premium comes with faster growth and higher returns.

Risk I Track Every Quarter Supply obligations reached $279.0 billion, mostly memory for Vera Rubin, and guarantee obligations for partners are capped at $108.5 billion. Days sales outstanding stretched to 60 days from 45. A pause in AI spending could make those commitments hurt, and the price to free cash flow of 57 leaves little margin.

Guidance already excludes China data center compute revenue. Balancing that risk, top-five hyperscaler capex is expected to reach nearly $800 billion in 2026 and $1.3 trillion in 2027. Somebody has to power, cool, and network all that spending. We rounded up seven suppliers riding the same wave in a free AI infrastructure report.

Catalysts Ahead of the November Report Vera Rubin should make up about 20% of data center revenue in Q3, and the next earnings report lands November 17. Keep an eye on whether Vera Rubin’s ramp and continued buybacks keep pace with management’s free cash flow return targets.

Contact [email protected] for any questions or corrections.

Transaction Expected to Establish Recurring Revenue Stream Through Long-Term GPU Lease Arrangement

Company to Evaluate Strategic Alternatives for Existing Real Estate Operations to Focus on New Strategy

Chairman Nicholas Adler Appointed Chief Executive Officer to Lead Strategic Transformation

Celebration, FL, Oct. 01, 2026 (GLOBE NEWSWIRE) -- La Rosa Holdings Corp. (NASDAQ: LRHC) (“La Rosa” or the “Company”), a real estate and PropTech enterprise, today announced a strategic transaction in which it acquired NVIDIA graphics processing units (“GPUs”) and its intent to evaluate strategic alternatives with respect to the Company’s real estate operations, including a potential divestiture of its real estate assets, together advancing the Company’s previously announced transition into the artificial intelligence (AI) infrastructure sector.

Under the transaction, the Company acquired latest-generation NVIDIA B300 GPUs, the high-performance processor at the core of modern AI data centers, and leased those assets back under a long-term lease, which is expected to generate recurring, long-term cash flows for the Company. Management believes these GPU assets can serve as a foundational compute layer on which the Company can build its infrastructure footprint.

As part of this broader strategic transition, the Company intends to evaluate strategic alternatives with respect to the Company’s real estate operations, including a potential divestiture of its existing real estate businesses. Management believes monetizing these non-core assets could further accelerate the Company’s transition toward AI infrastructure and better align its capital and resources to support this strategy.

The Company also announced that Nicholas Adler has been appointed Chief Executive Officer and interim Chief Financial Officer, effective October 1, 2026. Mr. Adler has served as Chairman of the Board, Chairman of the Compensation Committee and a member of both the Audit Committee and the Nominating and Corporate Governance Committee of the Company since December 2025. He brings significant real estate development and public company leadership experience aligned with the Company’s AI infrastructure strategy. Joe La Rosa, the Company’s founder and former Chief Executive Officer, has stepped down to lead the Company’s real estate business and will remain a member of the Board of Directors.

“I am honored to lead the Company at this stage in its transformation. This transaction represents a significant step in advancing our strategy to build a scalable platform focused on the infrastructure supporting the continued growth and adoption of artificial intelligence,” said Mr. Adler. “We have a real opportunity to bring together the Company’s legacy strengths in real estate with AI infrastructure, one of the fastest-growing and most compelling business opportunities today. This GPU acquisition establishes our foundation in the space, and we intend to scale our presence and continue pursuing new opportunities that will ultimately create long term value for our shareholders.”

The Company intends to continue to advance its strategy and evaluate additional opportunities, including strategic partnerships, investments, and other initiatives intended to expand the Company’s presence within the rapidly evolving AI ecosystem, and may also pursue opportunities in alternative high-growth sectors.

The Company also intends to change its corporate name and Nasdaq ticker and will provide further updates as the Board determines appropriate.

About La Rosa Holdings Corp.

La Rosa Holdings Corp. (Nasdaq: LRHC) is expanding into AI infrastructure, including the acquisition and deployment of high-performance computing assets. The Company offers both residential and commercial real estate brokerage services, as well as technology-driven products and support for its agents and franchise partners. Its business model includes internal services for agents and external offerings for the public, spanning real estate brokerage, franchising, education and coaching, and property management.

For more information, please visit: https://www.larosaholdings.com.

Stay connected with La Rosa, sign up for news alerts here: larosaholdings.com/email-alerts.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the Company’s current expectations that are subject to various risks and uncertainties. Such statements include, but are not limited to, statements regarding proposed acquisition of NVIDIA B300 GPUs; the anticipated long-term lease of the GPU assets and the expected recurring revenue and cash flows therefrom; the Company’s transition to and strategy in AI infrastructure, including its ability to scale; the evaluation of strategic alternatives with respect to the Company’s real estate operations, including a potential divestiture of the Company’s real estate businesses, and the potential outcomes thereof; the anticipated change to the Company’s corporate name and Nasdaq ticker; the benefits of the leadership transition; the Company’s ability to grow its business; the Company’s ability to maintain compliance with the Nasdaq continued listing standards, and other statements that are not historical facts, including statements which may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential,” “strategic alternatives” or similar words.  These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company's ability to identify and consummate strategic transactions on favorable terms or at all, to satisfy closing conditions of financing facilities and the timing and use of proceeds thereof, to achieve profitable operations, customer acceptance of new services, the demand for the Company’s services and the Company’s customers' economic condition, the impact of competitive services and pricing, general economic conditions, the successful integration of the Company’s past and future acquired brokerages, the effect of the National Association of Realtors' landmark settlement on our business operations, and other risk factors detailed in the Company's filings with the United States Securities and Exchange Commission (the "SEC”). You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and other reports and documents that we file from time to time with the SEC. Forward-looking statements contained in this press release are made only as of the date of this press release, and La Rosa does not undertake any obligation to update any forward-looking statements in this release, except as may be required by applicable law. References and links to websites have been provided as a convenience, and the information contained on such websites has not been incorporated by reference into this press release.

For more information, contact: [email protected].

Investor Relations Contact:
Crescendo Communications, LLC
David Waldman/Natalya Rudman
Tel: (212) 671-1020
Email: [email protected]

Nvidia stock rose 17% in the third quarter but remains below its all-time closing high. Here's why that can change in the fourth quarter.

Despite multiple major sell-offs, the S&P 500 (^GSPC -0.25%) has more than doubled since the start of 2023 and is up 13.1% year-to-date. That's significant outperformance relative to the index's annual total returns of 9% to 10% over long periods.

Investors sometimes associate higher stock prices with stocks being more expensive. Nvidia (NVDA +0.52%), Alphabet (GOOG +1.01%)(GOOGL +0.93%), and Amazon (AMZN +1.00%) show why that isn't always the case, and why the S&P 500 remains a good value.

Image source: Getty Images.

The S&P 500 forward P/E ratio is just 19.4 Valuations expand when stock prices outpace earnings growth. Valuations compress if earnings hold up during steep sell-offs or if earnings are simply growing faster than stock prices -- which can happen during periods of rapid innovation like the one we are in now.

You may be surprised to learn that, despite the major indexes being around all-time highs, many of the largest growth stocks have actually gotten cheaper based on their forward price-to-earnings (P/E) ratios.

AAPL PE Ratio (Forward) data by YCharts

As you can see in the chart, Nvidia trades at just 24.4 times forward earnings, Amazon is just 20.1, and Alphabet is 17.2. That's because earnings and forward earnings estimates have been rising faster than their stock prices. Those are three of the five most valuable companies in the world. The other two are Microsoft (MSFT +0.77%) and Apple (AAPL +1.10%). Microsoft's valuation has been more consistent. Whereas Apple has staged an epic rally in recent months and isn't projected to grow as quickly, which is why its forward P/E is so much higher than its mega-cap peers.

The forward P/E of the S&P 500 is just 19.4 -- which is the lowest since April 2025 during the height of the tariff-induced sell-off. Earnings growing faster than stock prices is a signal that there's considerable uncertainty about whether hyperscalers and chip giants will live up to lofty expectations. Doubt may be creeping in, particularly for stocks like Amazon and Alphabet, which are hovering around valuations comparable to the index, even though they are far higher-quality companies than the typical S&P 500 component.

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Nvidia stock is up 21.9%, but its earnings are growing even faster Inexpensive valuations from top growth stocks are a reminder that stock price charts only tell part of the story. And ultimately, what matters more than tickers fluctuating between green and red is how the underlying business is doing and how it is projected to perform. Take Nvidia, for example.

In late August, Nvidia reported blowout second-quarter fiscal 2027 results, with record profits and high margins despite soaring memory chip costs. Nvidia buys memory chips from suppliers to include in its rack-scale solutions for data centers, which are a plug-and-play offering that includes graphics processing units, central processing units, and other chips and networking hardware. Even with half of fiscal 2027 still to go, Nvidia is already guiding for a 70% year-over-year increase in fiscal 2028 revenue as its latest platform, Vera Rubin, began shipments in August with clear visibility for sales well into fiscal 2028.

So despite Nvidia's stock price increasing 21.9% year-to-date, and 38.9% last year, its valuation has compressed because its earnings growth is even faster.

Amazon and Alphabet are also good examples of affordable growth stocks. Amazon has a track record of aggressively reinvesting in its best ideas rather than buying back stock. Whereas Alphabet has been consistently free cash flow (FCF) positive, profitable, and regularly buys back stock. But both companies view artificial intelligence (AI) as such a massive opportunity that they have turned FCF negative, with a lot of that spending going to companies like Nvidia for compute capacity.

However, hyperscaler margins could soar once capital investments in AI data centers begin raking in revenue. And while chip stocks like Nvidia, Broadcom, and Advanced Micro Devices would be impacted if their top customers pulled back on spending, they also stand to benefit from future upgrades of existing infrastructure with next-generation tech, as well as the overall demand for compute growing from non-hyperscalers -- such as AI start-ups. Nvidia views the opportunity outside of its core hyperscaler customer base as massive, which is why it's partnering with a consortium of financial institutions to raise $500 billion for AI infrastructure.

Leading AI stocks at compelling valuations The rapid run-up of many top AI growth stocks in recent years may give investors pause -- especially with major indexes like the S&P 500 near all-time highs. But the earnings growth has been so exceptional that many stocks have actually gotten cheaper.

That said, there are risks with valuing stocks based on forward P/E. It puts pressure on companies like Nvidia to meet high expectations, which Nvidia has so far done. But if there is a slip-up, or one or two key customers pull back on spending, then that could let out hot air from the valuation.

Therefore, investors who believe that AI spending will ultimately yield a solid return on investment are getting an exceptional opportunity to buy these industry leaders at compelling valuations. Whereas investors who are skeptical of the spending spree may prefer that hyperscalers transition back toward capital-light, high FCF companies rather than capital-intensive, negative FCF companies before smashing the buy button.

Had you owned a portfolio that strictly consisted of the "Magnificent Seven" stocks over the past decade, you'd have absolutely crushed the market. But these businesses have all generated entirely different returns. One company stands head and shoulders above the rest.

And it's the best performing Magnificent Seven stock in 2026.

Image source: The Motley Fool.

At a $5.6 billion market capitalization, Nvidia (NVDA +0.52%) is the world's most valuable enterprise. Its shares are up 23.8% this year (as of Sept. 30). Nvidia's stock has skyrocketed 13,600% in the last 10 years, so the gain in 2026 looks unremarkable in the grand scheme of things.

What's interesting is that the artificial intelligence (AI) stock has become cheaper across various valuation metrics. Nvidia's price-to-earnings (P/E) ratio has fallen 38% this year and now sits at a reasonable 28.5. This means that the fundamentals have driven share gains.

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It's hard for bullish investors not to get excited by the valuation. Shares trade at a forward price-to-earnings (P/E) ratio of 24.9. Given Nvidia's net income grew at a compound annual growth rate of 113% over the trailing three-year period, the business looks like a no-brainer buying opportunity.

The risk, however, is that the durability of the AI boom is a massive unknown variable. Nvidia's success rests solely on the hyperscalers and its other customers continuing to spend huge sums on its powerful graphics processing units. There is no precedent for this build-out.

Investors thinking of buying the stock must grapple with this uncertainty.

Neil Patel 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.

Lee Johnson Capital Management LLC reduced its stake in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 13.1% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 31,378 shares of the computer hardware maker’s stock after selling 4,730 shares during the period. NVIDIA accounts for approximately 2.0% of Lee Johnson Capital Management LLC’s holdings, making the stock its 15th biggest position. Lee Johnson Capital Management LLC’s holdings in NVIDIA were worth $6,278,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also made changes to their positions in NVDA. Lifetime Wealth Management P.C. acquired a new stake in NVIDIA in the fourth quarter worth approximately $26,000. Longview Financial Advisors Inc. acquired a new position in shares of NVIDIA during the 1st quarter valued at $27,000. Langley Wealth Management LLC bought a new stake in shares of NVIDIA in the 2nd quarter worth $34,000. Phillip James Consulting Co. acquired a new position in NVIDIA during the first quarter worth about $40,000. Finally, Frankly Finances LLC acquired a new position in NVIDIA during the second quarter worth about $60,000. 65.27% of the stock is currently owned by institutional investors.

NVIDIA Stock Performance NVIDIA stock opened at $228.38 on Thursday. NVIDIA Corporation has a fifty-two week low of $164.27 and a fifty-two week high of $236.54. The firm’s 50 day simple moving average is $217.76 and its 200-day simple moving average is $206.94. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. The company has a market cap of $5.50 trillion, a P/E ratio of 28.87, a price-to-earnings-growth ratio of 1.76 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA – Get Free Report) last issued its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, beating the consensus estimate of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The business had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. During the same quarter in the prior year, the firm earned $1.05 EPS. The firm’s quarterly revenue was up 105.9% on a year-over-year basis. As a group, equities research analysts predict that NVIDIA Corporation will post 9.25 EPS for the current year. NVIDIA Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th will be issued a $0.25 dividend. The ex-dividend date is Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.4%. NVIDIA’s dividend payout ratio is presently 12.64%.

NVIDIA announced that its board has initiated a share repurchase program on Monday, September 28th that authorizes the company to repurchase $150.00 billion in shares. This repurchase authorization authorizes the computer hardware maker to repurchase up to 2.8% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company’s board of directors believes its shares are undervalued.

Analyst Ratings Changes A number of brokerages have weighed in on NVDA. Evercore set a $465.00 price target on shares of NVIDIA and gave the company an “outperform” rating in a report on Thursday, August 27th. HSBC lifted their price objective on shares of NVIDIA from $360.00 to $365.00 in a research note on Thursday, August 27th. Zacks Research raised shares of NVIDIA from a “hold” rating to a “strong-buy” rating in a research note on Monday, September 21st. Raymond James Financial set a $515.00 target price on shares of NVIDIA and gave the stock a “strong-buy” rating in a report on Thursday, August 27th. Finally, Royal Bank Of Canada lifted their price target on shares of NVIDIA from $300.00 to $330.00 and gave the stock an “outperform” rating in a research report on Thursday, August 27th. Four analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Buy” and a consensus price target of $324.14.

Get Our Latest Stock Report on NVDA

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

Positive Sentiment: NVIDIA authorized an additional $150 billion for share repurchases, raising total remaining authorization to approximately $235 billion through fiscal 2028. The move signals management’s confidence in the company’s cash generation and suggests it views the stock as attractively valued. Stock Market Today, Sept. 30: Nvidia Authorizes $150B Buyback, Lifting Total to $235B Positive Sentiment: The latest bullish case centers on sustained AI spending. NVIDIA’s data-center revenue reportedly surged 117% year over year to $89 billion, while management continues to forecast substantial growth despite the company’s enormous scale. Analysts cited valuation, hyperscaler capital expenditures and the company’s full-stack AI platform as potential upside drivers. Nvidia’s Demand Outlook Still Supports The Bull Case Positive Sentiment: Political and regulatory developments were also favorable. President Donald Trump reportedly supported industry self-regulation at a White House AI meeting attended by CEO Jensen Huang, reducing near-term concerns that stricter rules could slow AI deployment. NVIDIA’s new AI safety platform could further support demand for inference, monitoring and networking infrastructure. Nvidia Was the Big Winner of Trump’s AI Lunch, Here’s Why Positive Sentiment: NVIDIA’s reported agreement to acquire Hugging Face for nearly $13 billion would expand its reach into open-source models, developer tools, datasets and AI distribution. The company is also investing in AI infrastructure partners, reinforcing its broader ecosystem strategy beyond GPUs. Nvidia just spent nearly $13 billion on something other than GPUs Neutral Sentiment: Softer-than-expected inflation helped support growth-oriented technology shares by reducing immediate expectations for additional Federal Reserve rate increases. However, higher interest rates remain a key valuation risk for AI-linked stocks. Why is Nvidia stock rising on Wednesday? Negative Sentiment: Risks remain around an AI spending slowdown, particularly if hyperscalers reduce capital expenditures. DeepSeek’s work with Huawei on software for alternative AI chips could also challenge NVIDIA’s software moat, while rising memory and networking costs may pressure gross margins. Investor Michael Burry’s reported bearish options position adds to skepticism, although it has not changed the company’s fundamental outlook. If AI Capex Cracks, Nvidia Could Feel It Before Meta Does Insider Transactions at NVIDIA In related news, CFO Colette Kress sold 34,918 shares of the company’s stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the transaction, the chief financial officer directly owned 765,103 shares of the company’s stock, valued at approximately $167,595,812.15. The trade was a 4.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 622,239 shares of the stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $231.62, for a total value of $144,122,997.18. Following the completion of the sale, the director directly owned 2,336,531 shares of the company’s stock, valued at approximately $541,187,310.22. This represents a 21.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,766,118 shares of company stock valued at $399,450,353 over the last quarter. Company insiders own 3.94% of the company’s stock.

NVIDIA Profile (Free Report)

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company’s products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.

Further Reading Five stocks we like better than NVIDIA Deutsche Bank Makes a Contrarian Call on Netflix—What Does It Mean for Investors? O’Reilly Automotive’s Stock Slump Hides a Stronger Business McDonald’s Stock Slump Makes Its AI Pricing Bet Even Riskier Broadcom’s AI Growth Story Faces a $161 Billion Anthropic Test Want to see what other hedge funds are holding NVDA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVIDIA Corporation (NASDAQ:NVDA – Free Report).

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Šéf britské centrální banky Andrew Bailey varoval před riziky spojenými s umělou inteligencí (AI). V rozhovoru s BBC mimo jiné uvedl, že rychlý rozvoj AI by mohl způsobit šoky na finančních trzích. Firmy v posledních letech do AI investují obrovské částky, podle Baileyho však není jisté, do jaké míry se jim tyto investice vyplatí.

Bailey vyjádřil přesvědčení, že AI by mohla výrazně posílit hospodářský růst. "Přináší ale také významná rizika," dodal.

Rozsáhlé investice do AI v poslední době podporují růst na akciových trzích. Výrazně z nich těží například americký výrobce čipů Nvidia, který se díky svému dominantnímu postavení na globálním trhu s čipy pro AI stal nejhodnotnější veřejně obchodovanou společností na světě.

Společnosti Anthropic a OpenAI, které jsou světovými lídry ve vývoji AI, se nyní chystají uvést své akcie na burzu. Mnozí se domnívají, že tento krok přiláká do odvětví AI další stovky miliard dolarů, píše BBC.

"Do tohoto odvětví nyní směřuje obrovské množství investic," uvedl Bailey. Firmy doufají, že jim investice do AI v budoucnosti přinesou velké zisky. Bailey ale v této souvislosti varoval, že každý se nemůže stát vítězem.

"Google nebyl prvním lídrem na trhu s internetovým vyhledáváním. Tím byl Netscape. Dnes si na Netscape nikdo nevzpomene. Neexistuje. Ne každý tedy vždycky vyhrává," uvedl šéf britské centrální banky.

Bailey poukázal rovněž na další rizika spojená s AI, jako je například zneužití této technologie ke kybernetickým útokům či podvodům. "Ve špatných rukou to může být velmi mocná zbraň," varoval.

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Nvidia (NVDA +0.52%), an AI chip and networking provider, closed at $228.38, up 0.51%. Premarket buyback headlines and a session update on its AI safety accord kept investors focused on capital returns and AI demand.
Trading volume reached 117.7M shares, coming in nearly 5.2% below its three-month average of 124.1M shares. Nvidia IPO'd in 1999 and has grown 556,695% since going public.

How the markets moved todayThe S&P 500 (SNPINDEX: ^GSPC) closed at 7,654, down 0.23%, while the Nasdaq Composite (NASDAQINDEX: ^IXIC) finished at 26,861, up 0.24%. Among semiconductor peers, Advanced Micro Devices (AMD +0.69%) closed at $611.76, up 0.69%, and Broadcom (AVGO -1.10%) closed at $351.19, down 1.10%, as investors tracked accelerated computing, GPU, AI, data-center networking, and related software demand.

What this means for investorsAlthough Nvidia stock rose only modestly today, it continues to ride high as it secures its future as one of the most essential AI companies. Its AI safety accord likely brings comfort to those concerned about out-of-control AI wreaking havoc on society.

That accord comes after Nvidia also solidified its place in the quantum computing industry last month by expanding Open-Source CUDA-Q to offer fault-tolerant quantum computing. This is significant takes its software platform beyond core GPUs.

Such breakthroughs seem to help boost its financials. Last week, it authorized an additional $150 billion in share repurchases, taking the total to $235 billion through 2028. To put that into perspective, just over 60 companies trading on U.S. markets have a market cap above $235 billion today.

It likely can afford to buy back shares as its revenue for fiscal Q2 (ended July 26) increased by 106% year over year. Despite that increase, its forward P/E ratio stands at just 25, a level that should boost the bull case in the chip stock for a long time to come.

Will Healy has positions in Advanced Micro Devices. The Motley Fool has positions in and recommends Advanced Micro Devices, Broadcom, and Nvidia. The Motley Fool has a disclosure policy.

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DeepSeek says TileLang offers a simpler programming model than Nvidia's CUDA. Summary

DeepSeek and Huawei are developing tools for Huawei’s Ascend AI chips.

Another Chinese threat is targeting Nvidia (NVDA, Financials) beyond its AI chips. According to DeepSeek's official WeChat account, Huawei Technologies and DeepSeek are developing programming tools for Huawei's Ascend CPUs, Reuters reported Wednesday.

DeepSeek is opening Huawei's Ascend platform's computing and communications libraries.The endeavor important because Nvidia's competitiveness goes beyond GPU performance. CUDA gives developers a framework for creating Nvidia-compatible apps.

DeepSeek and Huawei are developing a Huawei chip ecosystem. The two organizations developed a supernode employing 128 Huawei Ascend 950 processors, with Huawei supporting computation and communication optimization.

DeepSeek also featured TileLang, an AI chip-specific high-level open-source programming language. The business claimed TileLang's simpler programming approach than Nvidia's CUDA may boost development efficiency and simplify code.

Two weeks ago, Huawei revealed its next-generation AI CPUs and supernode computing systems. Huawei predicted that its AI technologies will be widely employed for model training next year.

The development shows Nvidia investors a new aspect of Chinese competitiveness. Making a different AI accelerator is difficult. Building programming tools to help developers use such chips efficiently is another.

As Chinese IT companies work to develop an AI computer environment independent of Nvidia, DeepSeek and Huawei are attacking both sides.

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

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Nvidia just doubled its revenue while its stock barely moved, and Wall Street is split on what comes next. The math behind a $500 price target by 2031 is tighter than it looks, and one overlooked number changes everything.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) just reported a quarter that most companies would need ten years to build. Revenue reached $96.22 billion, up 105.85% year over year. Data Center brought in $89.023 billion, and networking alone added $40.313 billion.

CEO Jensen Huang put it simply: “AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue.”

Even so, the stock is up only 20.86% this year. Sales doubled and the stock trailed far behind. My question is simple: can NVIDIA reach $500 by 2031?

What’s Holding NVIDIA Back Right Now Shares rose 2.52% over the past week and 5.67% over the past month. They still trade below the $236 52-week high. Bloomberg says the stock is flashing a warning sign as valuation falls. Barron’s reported a pullback after Huang suggested a drastic alternative to AI regulation. The earnings call points to real friction.

Memory prices are climbing faster than planned, and margins should bottom at 71% to 72% in Q4. Guidance includes no China data center compute revenue. Supply obligations have reached $279 billion.

Critics also call the nearly 50 billion NVIDIA has invested in AI labs circular financing. With a beta of 2.217, each of these concerns moves the stock hard.

Wall Street Sees 45.7% Upside. Our Model Says 18.9% The consensus target is $327.7, which implies 45.7% upside. Analysts assign 9 strong buy ratings, 48 buy ratings, 2 hold ratings and 1 sell. Our one-year forecast stands at $266.42, or 18.94% upside.

The one-year range runs from $230.75 to $310.1, and model confidence is high at 0.9.

Over five years, I think the analysts are too conservative. 95% of them are bullish. Yet earnings growth adds only 0.03 to our factor after mega-cap muting. In just 90 days, the FY2028 EPS estimate jumped from $12.6737 to $15.6826. Over the past 30 days there were 42 upward revisions and zero cuts. Estimates keep running behind actual results.

Here’s What It Takes for NVIDIA to Reach $500 Reaching $500 at the current price of $224.87 requires a gain of 122.4%, or about 17.3% a year. Given forward EPS of $13.0579, $500 would mean a forward P/E of 38x. The forecast already implies 32x, so the bold target needs about 6x of additional multiple expansion.

Earnings growth closes most of that gap. On FY2028 consensus EPS, $500 works out to only 32x. Management expects revenue growth of approximately 70% in fiscal 2028 while still supply limited.

Vera Rubin gets $40 billion per gigawatt, compared with $25 billion for Blackwell. AWS is deploying 2 million more GPUs. Neocloud revenue sharing adds a recurring stream: “we get paid twice.” The main risk is that hyperscalers slow their spending or switch to custom silicon.

Where NVIDIA Trades Today vs Its Earnings Power At $224.87, NVIDIA trades at 17x forward earnings. That is cheap for a business whose sales doubled. Shares sit between the $163.9 low and the $236 high.

Over ten years the stock has returned 14145.56%. Today’s low multiple gives the bull case room to work without extreme assumptions.

$500 Is a Stretch, But Here’s Why It’s Possible Reaching $500 requires 122.4% upside, which is above our five-year bull case of $482.87. I see it as a stretch with a clear path.

The thesis requires Vera Rubin to ramp on schedule, memory supply to improve, and non-hyperscaler demand to keep growing. A sharp pullback in AI capex would undermine the thesis. Such gains won’t happen every year, but we’ve outlined the path for how NVIDIA could reach $500 in 2031.

Contact [email protected] for any questions or corrections.

The next crack in the AI trade may show up in spending before it appears in revenue. Sam Rines, Macro Strategist at WisdomTree, says a slowdown in hyperscaler capital spending would likely hit semiconductors and infrastructure providers hardest, while companies using AI to improve existing businesses could prove more resilient — putting Nvidia Corp (NASDAQ:NVDA) and Meta Platforms, Inc. (NASDAQ:META) on different sides of the cycle.

AI Spending Faces a New TestNvidia has been one of the clearest financial beneficiaries of the AI boom, supplying the chips that power the massive infrastructure buildout. But the market is increasingly asking a different question: How much longer can hyperscalers keep spending at extraordinary levels before investors demand clearer returns?

Rines says that test is already underway.

"Capex is tolerated for companies that can show the returns to it, but it is not appreciated for companies without the ability to clearly articulate the returns," he told Benzinga in an exclusive email interview.

That creates an important distinction between companies building AI infrastructure and those using AI inside established businesses.

Microsoft Corp (NASDAQ:MSFT) is seeing its cloud business benefit from AI, while Alphabet Inc (NASDAQ:GOOG)(NASDAQ:GOOGL) is beginning to see Gemini contribute to revenue and improve YouTube advertising, according to Rines. Meta, meanwhile, is using AI to strengthen its core advertising business while expanding its AI product lineup.

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Nvidia Has More AI-Capex ExposureThat difference matters if hyperscaler spending starts to slow.

"If AI spending starts producing weaker returns," Rines expects the impact to be felt "most by the semis and infrastructure providers." The AI implementers, he said, are likely to be "the least affected or even winners" in that scenario.

Nvidia’s position makes the distinction particularly important. Its data-center business depends heavily on demand for the computing infrastructure needed to build and deploy AI systems. If Microsoft, Alphabet, Meta and other hyperscalers begin trimming or delaying infrastructure investments, that would create a different environment for Nvidia than for a company using AI to improve an existing revenue engine.

That does not mean a capex slowdown would automatically translate into a collapse in Nvidia’s business. It means the semiconductor side of the AI trade could have greater direct exposure to a change in spending behavior.

Meta Could Be the Other SideRines sees Meta as particularly interesting as the AI story shifts from spending toward returns.

"Meta appears to be the most overlooked," he said, pointing to the company’s Muse product and enterprise launch alongside AI’s role in its advertising business. The argument is less about Meta becoming an AI infrastructure company and more about AI improving an already large business.

That distinction could become increasingly important if investors begin scrutinizing AI returns rather than simply rewarding bigger spending.

Rines says the first real warning sign would likely be a slowdown in hyperscaler capex.

For Nvidia investors, that makes capital-spending plans from Microsoft, Alphabet, Meta and other major AI buyers an increasingly important signal.

For Meta investors, the question may be different: whether AI can continue producing measurable gains in advertising, products and engagement even if the infrastructure spending cycle cools.

Read Next

Image courtesy: WisdomTree

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Anthropic CEO Dario Amodei recently urged artificial intelligence (AI) companies to slow their development due to concerns about potential misuse and the dangers that rapid development could pose to society.

Slowing down AI is not something many investors may have expected to hear from a top AI company that's planning to go public in the near future. If that ends up happening, however, many stocks could be in deep trouble, including Nvidia (NVDA +1.71%), Micron Technology (MU +0.58%) (AMD -0.52%), and Palantir Technologies (PLTR +1.69%). Here's why these tech stocks could be particularly vulnerable amid an AI slowdown.

Image source: Getty Images.

NvidiaLeading chipmaker Nvidia has a lofty $5.5 trillion market cap. It's been experiencing tremendous growth due to AI, and companies are constantly in need of its cutting-edge chips. But if there's a slowdown in AI development, its growth rate could slow drastically, analysts will revise their estimates for its future earnings, and the stock could suddenly look far more expensive.

Currently, Nvidia's stock doesn't seem all that expensive as it's trading at a forward price-to-earnings (P/E) multiple of just under 25. That's based on the earnings that analysts expect from the company in the year ahead. It's not a whole lot higher than the S&P 500 average of 20. It may seem incredible that a company this highly valued doesn't appear overpriced, but that also depends significantly on the assumption of its future growth prospects remaining incredibly strong. That, however, could change if there's a slowdown in AI development.

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For now, Nvidia's stock is in solid shape, but this is a risk that investors should be aware of, as sky-high expectations are priced into its valuation.

Micron TechnologyA stock that looks even cheaper than Nvidia, based on expectations, is Micron. It's trading at an incredibly low forward P/E of seven. At that low a multiple, investors might expect something drastically wrong with the business for the stock not to be trading higher.

There isn't anything fundamentally wrong with Micron; in fact, it's been experiencing tremendous growth on both the top and bottom lines due to a shortage of memory products. But that could quickly end if AI development slows. That would lead to a trickle-down effect, with companies needing fewer chips and related AI infrastructure. The shortage of memory products could quickly turn into a glut. And if that were to happen, Micron's stock, which has surged more than 550% in the past 12 months, could be vulnerable to a significant sell-off.

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Much of the excitement around Micron these days continues to be that the memory shortage won't be ending anytime soon due to strong AI-related demand, but if that isn't the case anymore, the growth story unravels, and the stock could enter a deep tailspin.

Palantir TechnologiesOne stock that isn't cheap is Palantir Technologies. Investors have been paying a premium for the stock for some time, given its incredible growth, with CEO Alex Karp often boasting of the company's incredible prospects and insatiable demand for its AI.

If companies scale back on AI spending, then Palantir may also show cracks in its growth rate. Its strong relationship with the U.S. government should insulate it to some degree, but the problem is that with the stock trading at a forward P/E of 85, any signs of weakness could derail the stock, as it's priced for perfection, and anything short of that would be terrible news for its shareholders.

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The AI stock has been surging in recent weeks, but earlier this year, it was down big as the market appeared to be growing concerned with its steep valuation. And that could once again be a concern if the company's growth rate slows.

Choosing between Broadcom (AVGO +0.02%) and NVIDIA (NVDA +2.23%) involves weighing the stability of diversified networking and software against the explosive, hardware-driven growth that currently defines the artificial intelligence era.

Broadcom specializes in high-end networking hardware and enterprise software, while NVIDIA dominates the market for chips used in data centers. Both companies are essential to modern computing, making them top contenders for investors interested in semiconductor stocks as artificial intelligence continues to reshape the global economy.

The case for BroadcomBroadcom provides a wide range of semiconductor solutions and infrastructure software for wireless and wired communication markets. Its business model shifted significantly following the acquisition of VMware, which expanded its reach into private cloud and enterprise software. A large portion of its revenue is driven by distributors, which account for nearly 48% of net revenue, while its top five end customers contribute approximately 40%. Broadcom has recently solidified its market position with a $200 billion memorandum of understanding with Samsung and a $30 billion chip commitment from Apple (AAPL +2.61%). Customer concentration like this adds a layer of risk to the business.

In the fiscal year ended Nov. 2, 2025, revenue reached roughly $63.9 billion, representing a growth of approximately 23.9% compared with the prior fiscal year. The company reported net income of nearly $23.1 billion for the same period. This resulted in a net margin of approximately 36.2%, a significant increase from the 11.4% reported in its previous annual report.

According to its November 2025 balance sheet, Broadcom maintains a debt-to-equity ratio of approximately 0.8x. This ratio compares total debt, including short-term and long-term borrowings, to shareholder equity. Its current ratio, which measures the ability to pay off short-term obligations with assets that can be converted to cash within one year, is roughly 1.7x. For the fiscal year ended Nov. 2, 2025, it generated free cash flow of about $26.9 billion. Free cash flow is the cash generated from operations minus capital expenditures. Note that stock-based compensation accounted for roughly 27.5% of operating cash flow, inflating reported cash generation, since SBC is a non-cash expense added back to cash flow.

The case for NvidiaNVIDIA is a pioneer in GPU-accelerated computing, serving the data center, gaming, professional visualization, and automotive markets. The company has become the primary provider of the hardware that powers the modern AI industry and has established a partnership with OpenAI. Revenue concentration is a factor here as well, with two direct customers representing roughly 22% and 14% of total revenue. It relies on a network of partners, including cloud service providers and manufacturers, to deliver its technology to end users.

In the fiscal year ended Jan. 25, 2026, revenue reached approximately $215.9 billion, a massive 65.5% year-over-year increase. The company reported net income of nearly $120.1 billion during this period. This performance reflects a net margin of approximately 55.6%, which has remained relatively stable compared with the 55.8% net margin seen in the previous fiscal year.

As of its January 2026 balance sheet, Nvidia carries a debt-to-equity ratio of roughly 0.1x, suggesting it relies very little on borrowed money. Its current ratio is approximately 3.9x, indicating a strong ability to meet short-term financial obligations. For the fiscal year ended Jan. 25, 2026, the company generated free cash flow of about $96.7 billion. Because its stock-based compensation was only roughly 6.2% of its operating cash flow, the reported cash generation is less affected by non-cash employee pay than that of many other technology companies.

Risk profile comparisonBroadcom faces significant regulatory scrutiny regarding its VMware acquisition, which is currently the subject of a legal challenge against EU antitrust regulators. The company also faces ongoing litigation, including a patent infringement lawsuit from TexasLDPC, and expansion risks into AI business models that may entail novel credit risks. Furthermore, its heavy reliance on a few large customers and the cyclical nature of the chip industry could lead to sensitivity during market volatility.

Nvidia faces intense competitive pressure from other hardware vendors and internal development teams at large cloud service providers like Microsoft (MSFT +1.67%), Alphabet (GOOGL +2.86%), and Amazon (AMZN +1.22%). Shifting U.S. export controls have effectively limited its access to the Chinese data center market, creating a potential competitive disadvantage. The company also faces securities litigation regarding historical revenue disclosures and relies heavily on TSMC for its manufacturing and production capacity.

Valuation comparisonNvidia appears to be the more attractively valued option based on both future earnings estimates and sales over the past twelve months.

MetricBroadcomNVIDIAForward P/E30.2x24.2xP/S ratio18.8x17.9xValuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

To compare Nvidia and Broadcom, investors should consider a few key factors. Let's have a look at them and see what that tells us about each stock.

First off, there's growth. Both companies have recorded blistering growth in recent years, as the AI revolution has kicked into full gear. Broadcom has averaged 28% year-over-year revenue growth since 2021. Nvidia, meanwhile, has recorded a staggering 84% rate. In its most recent quarter (the three months ending on July 26, 2026), Nvidia reported an astounding 106% year-over-year revenue growth.

Another factor to consider is profitability. Here again, Nvidia wins the head-to-head matchup. Nvidia's operating margin stands at 65%, a rate it has roughly maintained for the last two years. Broadcom, on the other hand, has an operating margin of around 49%, up from a two-year low of 30%.

One final factor to weigh is free cash flow. To compare apples to apples, let's look at free cash flow per share. On this basis, Broadcom has a lead. The company generates roughly $8.07/share of free cash flow, while Nvidia delivers $5.21/share.

To sum up, Nvidia and Broadcom are both fantastic companies. Indeed, both rank among the top 10 largest companies in America, and given their fantastic fundamentals, it's obvious why. Nonetheless, if I were forced to choose between the two, I would select Nvidia. Its eye-popping revenue growth and superb margins give it a slight edge over Broadcom, despite the latter's higher free cash flow per share.

Cathie Wood just dumped one of this year's biggest AI winners to load up on a stock that has barely moved, and the reasoning behind that swap reveals a lot about where she thinks the real opportunity still sits.

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Cathie Wood’s ARK Invest sold 181,767 shares of AMD (NASDAQ:AMD | AMD Price Prediction) on September 29, 2026, a stake worth about $110.5 million. In the same session, it bought Nvidia (NASDAQ:NVDA).

AMD is up 183.7% year to date, while Nvidia has gained 22.11%. ARK moved money from the big winner into the laggard.

Wood has not publicly explained the trades, and ARK’s fund-by-fund holdings are unavailable in free sources.

What ARK Actually Traded in One Session ARK bought 356,681 Nvidia shares worth about $81.6 million, across four of its ETFs.

ARK also bought Broadcom shares worth about $27 million, plus about $17.3 million of Tesla (NASDAQ:TSLA), about $21.7 million of CoreWeave (NASDAQ:CRWV), and some SpaceX (NASDAQ:SPCX). Sales included $38.5 million of 10x Genomics and $10.9 million of Tempus AI (NASDAQ:TEM).

That spread looks like rebalancing. ETF weight limits can force cuts that carry no signal, and the pattern fits Wood’s long habit of trimming winners and adding to names she views as undervalued.

AMD Sold Into a Trillion-Dollar Run AMD briefly passed $1 trillion in market value last week. The stock rose 30.5% in the past month alone.

Second-quarter Data Center revenue rose 107% to $6.72 billion, now 58% of sales, and CEO Lisa Su said Helios “begins to ramp” over the next six months.

AMD also agreed to buy World Labs for $8.2 billion in stock, a push into physical AI. A trailing P/E near 229x prices in years of clean execution, so selling into strength looks reasonable.

Nvidia Earns More and Costs Less Nvidia’s Data Center revenue reached $89.02 billion, up 117%, at a 75% non-GAAP gross margin versus AMD’s 56%. The leader is growing faster on a far larger base.

Nvidia trades at about 17x forward earnings, its lowest since January 2015.

Moreover, one could link ARK’s purchase to Nvidia’s board adding $150 billion to its buyback, leaving $235 billion authorized. An authorization grants permission to repurchase shares over time, and cash leaves only when Nvidia buys. Nvidia’s CEO said in the announcement, “This authorization reflects our confidence in the long-term opportunity ahead.”

Both Stocks Ride One Capex Cycle Buybacks reduce the share count, but chip demand shows up in Data Center revenue, and both companies depend on the same hyperscaler and AI lab spending. Having both concentrates that risk.

Nvidia carries $279 billion in supply commitments and extended receivables to 60 days. AMD needs Helios shipments, expected later in the third quarter, to arrive on schedule. Those near retirement should size either position for volatility.

AMD Versus Nvidia: Where the Setup Looks Better AMD looks fully priced after this year’s run, and its thinner margins leave less room for error if memory costs or Helios yields disappoint.

I see Nvidia as the more attractive setup today.

Nvidia pairs the larger, more profitable data center franchise with the cheaper multiple, and management called its outlook “supply-constrained,” meaning demand exceeds what it can ship.

I would revisit my bullish view if Nvidia’s gross margin falls below its 71% to 72% fourth-quarter guidance or AMD’s Helios ramp lifts data center mix well past today’s level.

Contact [email protected] for any questions or corrections.

After becoming the company that turned artificial intelligence (AI) from a research project into a generational spending boom, Nvidia (NVDA -0.72%) has delivered one of the greatest wealth-creation runs in recent market history.

This year, however, the company's earnings estimates have raced ahead of the share price. As a result, Nvidia's forward price-to-earnings (P/E) multiple has compressed to levels last seen about 10 years ago. While investors treat the $5.6 trillion behemoth like it is already fully priced, history suggests this is precisely when the next leg up starts to form.

Image source: Nvidia.

How Nvidia became the king of AI It wasn't long ago that Nvidia was primarily known for making graphics cards that visually enhanced video games. In the background, however, CEO Jensen Huang and his team were quietly laying the foundation for something bigger: a software and hardware stack that lets researchers train massive models.

After ChatGPT was publicly released, hyperscalers such as Amazon, Microsoft, Alphabet, and Meta Platforms quickly realized they needed more compute. This put Nvidia in a first-mover position, as its GPUs were available as the default tool for generative AI development. The company complemented its hardware with CUDA, a software layer built around the chips, which helped create a moat that competitors are still struggling to penetrate.

Nvidia's data center revenue went from a side hustle to the core engine of the company. This underscores that customers are not just buying chips; they are building entire AI factories around Nvidia's architecture. This is how an ordinary semiconductor company evolved into the public face of the AI infrastructure build-out.

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Breaking down Nvidia's valuation As of Sept. 29, Nvidia stock has gained 24% this year. While this is a respectable return, it drastically lags that of its core rival, the much-smaller Advanced Micro Devices, which has rocketed 188% on the year.

Let's dive into why Nvidia's valuation profile is so attractive right now. The forward P/E ratio simply divides the current share price by the earnings Wall Street expects over the next 12 months. The table below includes Nvidia's consensus earnings estimates for the next four quarters:

MetricFiscal Q3 2027Fiscal Q4 2027Fiscal Q1 2028Fiscal Q2 2028Next 12 Months EPSEPS estimate$2.47$2.73$3.17$3.63$12 Data source: Business Insider.

Given Nvidia stock hovers around $230 and analysts expect $12 in combined earnings over the next four quarters, the math implies a forward P/E of 19. Note that the multiple has expanded a bit over the last couple of days, as Nvidia stock rallied following the announcement of a record $150 billion share repurchase.

When profits rise faster than the stock price, valuation multiples fall even if the price goes up. This is exactly what is happening with Nvidia this year. The takeaway here is that this is the lowest forward earnings reading for Nvidia in a decade and well below the company's longer-term average near 32.

The multiple is compressing because investors are questioning how long the AI boom can last at this scale. Meanwhile, rising memory costs are squeezing near-term margins, and competition from custom silicon is getting louder. While these worries are fair, they are also the same kind of concerns that appeared the last few times Nvidia's valuation hit a floor.

Why Nvidia stock looks poised for a rally Historically, when Nvidia's forward P/E multiple hovered around the mid to high teens, the stock did not stay that cheap for long. The floor has generally sat near the 17-to-20 range. The next stop is not necessarily a return to the 40 or 50 times peaks seen in earlier cycles of the AI revolution. Instead, I think a reasonable expansion would be toward 25 times. Based on the same estimate for $12 in earnings over the next 12 months, this would imply a share price around $300, or about 30% above today's level. A return toward the longer-term average of 32 times would imply something closer to $384, or a gain of roughly 67%.

This setup is why the current quiet stretch could be a compelling entry rather than a warning signal. With Nvidia, you are not buying a stock trading at unsustainable multiples based on a story. Rather, you are buying the dominant AI infrastructure company at a decade-low multiple while it is still guiding for explosive growth over the next year.

For investors thinking in terms of years instead of quarters, Nvidia is a straightforward buy-and-hold opportunity. The hardware and software moat, the customer lock-in, and the next product cycles are not disappearing just because the multiple took a breather. History says this is usually the time you want to pounce and own the stock.

Adam Spatacco has positions in Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.

Designed to provide broad exposure to the Large Cap Value segment of the US equity market, the WisdomTree U.S. LargeCap ETF (EPS - Free Report) is a passively managed exchange traded fund launched on February 23, 2007.

The fund is sponsored by Wisdomtree. It has amassed assets over $1.65 billion, making it one of the average sized ETFs attempting to match the Large Cap Value segment of the US equity market.

Why Large Cap ValueLarge cap companies typically have a market capitalization above $10 billion. Considered a more stable option, large cap companies boast more predictable cash flows and are less volatile than their mid and small cap counterparts.

Carrying lower than average price-to-earnings and price-to-book ratios, value stocks also have lower than average sales and earnings growth rates. Looking at their long-term performance, value stocks have outperformed growth stocks in almost all markets. They are however likely to underperform growth stocks in strong bull markets.

CostsExpense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.

Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 1.12%.

Sector Exposure and Top HoldingsIt is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation to the Information Technology sector -- about 37.5% of the portfolio. Financials and Healthcare round out the top three.

Looking at individual holdings, Nvidia Corp (NVDA) accounts for about 7.82% of total assets, followed by Amazon.com Inc (AMZN) and Google Inc (GOOGL).

The top 10 holdings account for about 38.94% of total assets under management.

Performance and RiskEPS seeks to match the performance of the WisdomTree U.S. Earnings 500 Index before fees and expenses. The WisdomTree U.S. LargeCap Index is a fundamentally weighted index that measures the performance of earnings-generating companies within the large-capitalization segment of the U.S. Stock Market.

The ETF has added about 14.03% so far this year and was up about 17.9% in the last one year (as of 09/30/2026). In the past 52-week period, it has traded between $66.22 and $81.81.

The ETF has a beta of 0.95 and standard deviation of 13.88% for the trailing three-year period, making it a medium risk choice in the space. With about 505 holdings, it effectively diversifies company-specific risk.

AlternativesWisdomTree U.S. LargeCap ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, EPS is a great option for investors seeking exposure to the Style Box - Large Cap Value segment of the market. There are other additional ETFs in the space that investors could consider as well.

The Schwab U.S. Dividend Equity ETF (SCHD) and the Vanguard Morningstar Value ETF (VTV) track a similar index. While Schwab U.S. Dividend Equity ETF has $108.36 billion in assets, Vanguard Morningstar Value ETF has $186.26 billion. SCHD has an expense ratio of 0.06% and VTV charges 0.03%.

Bottom-LineAn increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

Nvidia (NVDA -0.72%) said on Monday, Sept. 28, that its board added $150 billion to the company's share repurchase authorization, taking the amount left to $235 billion. The chipmaker called it the biggest boost to a buyback authorization in history. It beats the $110 billion Apple (AAPL -2.66%) approved in 2024.

Investors liked the news. Shares gained about 2% on Monday as I write, trading near $230.

And history suggests they might have reason to. Apple's biggest buyback authorizations from 2018 through 2025 and Nvidia's own increases from 2023 through 2025 were each followed by a gain in the stock over the next 12 months. In eight of these nine cases, the stock beat the S&P 500 (^GSPC -0.17%).

But I think the cash behind those buybacks did more of that work than the buybacks themselves.

Image source Getty Images.

A record authorizationWith around 24.1 billion shares outstanding, Nvidia is worth about $5.5 trillion at around $230 a share. The full $235 billion would buy back a bit over 4% of the company.

Nvidia expects to spend the total remaining amount through fiscal 2028, which ends in January 2028 -- more than $40 billion a quarter over the roughly 16 months left.

That would more than double the current rate. Nvidia's buybacks have already risen, from $9.7 billion a year before to around $20 billion in each of the past two quarters.

Free cash flow for fiscal 2027's first half was $69.9 billion, 77% higher than a year before, or around $35 billion a quarter.

In other words, management is counting on lots more cash. CEO Jensen Huang linked the move to the company's "cash generation" in the announcement.

The stocks usually beat the marketApple approved buyback authorizations of $90 billion or more in 2018, 2021, 2022, 2023, 2024 and 2025. (Its $100 billion authorization this April, like Nvidia's $80 billion boost in May, is too new to judge.) Measured from the close on each announcement day to a year later, Apple stock gained in all six periods and beat the S&P 500 in five.

The gaps were often wide. After the $100 billion authorization in May 2018, Apple shares climbed around 24% while the index rose about 10%. And after the $90 billion increase in April 2021, the stock gained over 22% versus about 2% for the index.

Nvidia's own record is even better.

Its board added $25 billion in August 2023, $50 billion in August 2024 and $60 billion in August 2025. Over the 12 months after each, the stock rose about 175%, 43% and 26%, respectively, versus gains of about 27%, 16% and 19% for the S&P 500.

Some of these wins were narrow, though. Apple beat the index by only about 2 percentage points after its 2025 authorization. And Nvidia's 2025 lead hinged on the last day of the window, when shares jumped after its next earnings report.

Probably not on its own. After all, boards tend to approve big buybacks when cash is rolling in, and those gains likely came from the businesses making that cash.

Apple's only miss came after it announced a $90 billion authorization in May 2023, when its sales were shrinking. Apple's revenue for fiscal 2023, which ended Sept. 30, 2023, dropped 3%, and it was still down 4% year over year in the March 2024 quarter. Over the 12 months after the announcement, Apple shares rose about 11% while the S&P 500 gained about 26%.

Nvidia shows the other side. Its diluted share count for the fiscal second quarter of 2027, which ended July 26, 2026, was only about 1% smaller than a year before, despite almost $40 billion of buybacks over the fiscal year's first half. Earnings per share, meanwhile, more than doubled. At a company this big, buybacks change per-share results only a little.

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Is the record buyback good news for Nvidia stock, then? I think it is, mainly because of what it says about the cash coming. Roughly doubling the buyback rate only makes sense if management expects free cash flow to keep rising.

Of course, Nvidia's stock may still trail the market over the next year. If artificial intelligence (AI) spending cools, that cash might fall short, and Nvidia doesn't have to use the full authorization.

But the price helps. Shares trade at around 15 times Nvidia's expected fiscal 2028 earnings, while Apple trades at about 36 times its expected earnings in fiscal 2027, which ends next September. Every dollar Nvidia spends on its own stock buys over twice the expected earnings that a dollar of Apple's buybacks does.

I'd consider buying the stock alongside the company at this price.

Nvidia Corporation delivered another stellar quarter, with Q2 FY27 revenue up 105.9% year-over-year and robust margin expansion. NVDA's Blackwell and Vera Rubin platforms, expanding ACIE's customer base, and the AWS partnership underpin strong topline momentum through FY27 and beyond. Despite an 18% stock surge, NVDA stock trades at a forward P/E of 24.59x, well below its historical average, supporting a compelling valuation thesis.

Key Takeaways AMD is adding World Labs, while Nvidia is expanding its AI ecosystem with Hugging Face.Both companies have powerful growth outlooks, though AMD has been the stronger stock performer in 2026.Nvidia's cheaper valuation stands out despite AMD's much stronger stock performance this year. Advanced Micro Devices (AMD - Free Report) ) and Nvidia (NVDA - Free Report) ) continue to expand beyond AI chips as the semiconductor giants position themselves for the next phase of artificial intelligence.

Yesterday, AMD agreed to acquire AI research company World Labs for approximately $8.2 billion, while Nvidia recently announced a $12.93 billion deal for open-source AI platform Hugging Face. Both transactions remain subject to closing conditions.

Although both deals deepen their exposure to AI, AMD and Nvidia are taking noticeably different approaches.

Notably, AMD has been the much stronger performer in 2026, with shares soaring over 180% year to date compared with a 24% gain for NVDA.

Image Source: Zacks Investment Research

AMD Adds World Labs’ AI Research ExpertiseAMD’s all-stock acquisition of World Labs is expected to close by the end of 2026 and will bring renowned AI researcher Fei-Fei Li, often referred to as the “Godmother of AI”, to the company as executive vice president and chief scientist.

World Labs specializes in spatial-intelligence models capable of generating, reconstructing, and simulating interactive 3D environments from text, images, and video. Its expertise also extends into robotic learning and simulation, giving AMD greater exposure to emerging areas such as physical AI and robotics.

Strategically, the deal could help AMD better understand how next-generation AI workloads are evolving and use that insight to shape its future GPUs, CPUs, networking products, and software.

Nvidia Expands Its AI Ecosystem With Hugging FaceNvidia’s planned acquisition of Hugging Face is much larger at nearly $13 billion, and is expected to close during the first half of 2027.

Hugging Face has become a central platform for open AI development, with more than 18 million developers, over 3 million models, 500,000 datasets, and 1 million applications on its platform. More than 200,000 companies also use Hugging Face to discover, customize, and deploy AI models.

Nvidia intends to keep the platform open, meaning developers will not be required to use Nvidia hardware. Still, owning such an influential AI-development ecosystem could deepen Nvidia’s relationships with developers while extending its reach well beyond GPUs and further strengthen its full-stack AI strategy.

AMD & Nvidia’s Growth Outlooks Remain StrongAMD's underlying growth trajectory remains impressive. Second-quarter revenue surged 50% year over year to $11.5 billion, while Data Center sales more than doubled to $6.7 billion. Management expects roughly $13 billion in Q3 revenue, representing about 41% year-over-year growth at the midpoint.

The Zacks Consensus Estimate currently calls for AMD's fiscal 2026 sales to jump 46% to $50.5 billion, followed by another 65% increase to $83.17 billion in FY27. Earnings are projected to rise 79% this year and another 96% next year to $14.69 per share.

Image Source: Zacks Investment Research

Nvidia's growth remains even more staggering given its significantly larger revenue base.

Fiscal Q2 revenue soared 106% to $96.2 billion, driven by a 117% increase in Data Center revenue to $89 billion. Nvidia is guiding for Q3 revenue of approximately $108 billion, reflecting 89% growth from the prior-year period.  

Furthermore, Zacks Consensus estimates call for Nvidia's current FY27 revenue to rise 88%, followed by another 65% increase in FY28 to a staggering $671.95 billion. EPS is projected to increase 94% in FY27 and another 66% in FY28 to $15.33.

Image Source: Zacks Investment Research

NVDA Has the More Attractive ValuationPerhaps the most surprising part of this comparison is valuation.

Despite Nvidia's larger AI footprint and tremendous growth, NVDA trades at a very reasonable 24X forward earnings multiple.

In comparison, AMD's tremendous rally has stretched its valuation, with shares trading over 90X forward earnings, well above the broader technology sector and S&P 500.

AMD could certainly grow into some of that premium if its Instinct accelerators, EPYC processors, and next-generation AI platforms gain further market share.

However, Nvidia currently combines faster near-term revenue growth and substantially higher profit margins with a much lower earnings multiple.

Image Source: Zacks Investment Research

Conclusion & Strategic ThoughtsAMD's World Labs acquisition could strengthen its longer-term position in physical AI, robotics, and next-generation AI infrastructure, while Nvidia's Hugging Face deal further expands an already formidable ecosystem spanning chips, networking, software, and AI development.

Both companies have strong growth prospects, but their current valuations and earnings estimate trends differ considerably.

Correlating with this, Nvidia stock currently sports a Zacks Rank #1 (Strong Buy), supported by a more noticeable increase in EPS revisions, with AMD landing a Zacks Rank #3 (Hold).

For now, Nvidia's combination of explosive growth, AI infrastructure leadership, and a considerably cheaper forward earnings multiple gives NVDA a particularly compelling fundamental setup, while AMD's lofty valuation leaves less room for execution missteps following its massive YTD rally.

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