Track market-moving stories before they get noisy

Nvidia Corporation's networking business is becoming a major growth driver, with photonic solutions reducing power consumption by roughly 40%. Vera CPUs create a new $20 billion market opportunity while expanding NVDA's role across the entire AI infrastructure stack. NVDA's Q2 revenue guidance of $91 billion implies a $364 billion annualized run rate before Rubin meaningfully contributes.

Nvidia NVDA shares climbed more than 2% on Monday after a Reuters report said the artificial intelligence chip leader is preparing to raise $20 billion through a US bond offering, marking its return to the investment-grade debt market after five years.

The planned issuance comes as major technology companies continue to ramp up spending on artificial intelligence infrastructure, with Nvidia seeking additional financial flexibility to support its position at the center of the global AI boom.

According to Reuters, the bond offering will consist of seven tranches of notes with maturities extending as far as 2056.

A source familiar with the matter said Nvidia last tapped the investment-grade bond market in June 2021, when it raised $5 billion.

The company intends to use the proceeds for general corporate purposes, including refinancing and repaying existing debt, according to a term sheet reviewed by Reuters.

Goldman Sachs, JPMorgan, and Morgan Stanley are serving as bookrunners for the transaction.

The bond offering comes at a time when technology giants are committing unprecedented amounts of capital to artificial intelligence.

Industry estimates suggest combined AI-related spending by major technology companies could exceed $700 billion this year, compared with roughly $400 billion in 2025.

Several large technology firms have recently turned to debt markets to finance those ambitions.

Meta filed in October for a bond offering of up to $30 billion, while Alphabet last month disclosed plans to issue Japanese yen-denominated bonds for the first time.

Amazon has also been an active borrower, raising C$14 billion earlier this month.

The company has borrowed more than $82 billion since the beginning of 2025 as it expands investments in data centers, AI chips, and cloud infrastructure.

Although Nvidia does not directly operate hyperscale data centers on the scale of Amazon, Microsoft, or Google, demand for its processors remains a key driver of AI investment across the industry.

The company has accelerated its product cycle, releasing new generations of AI chips annually as competition intensifies and computing requirements continue to grow.

Nvidia reported cash and cash equivalents of $13.24 billion as of the quarter ended April 2026.

The positive sentiment surrounding Nvidia also spilled over to the broader semiconductor sector.

Micron Technology shares rose sharply as investors returned to AI-linked stocks amid ongoing concerns over memory-chip supply constraints.

The stock was up more than 7% in early trading.

Advanced Micro Devices gained more than 7%, while other chipmakers also advanced.

The rally was further supported by reports of progress toward a US-Iran peace agreement expected to be formally signed later this week.

The prospect of easing tensions in the Middle East pushed oil prices lower and raised hopes that inflation pressures could moderate if shipping through the Strait of Hormuz normalizes.

According to Reuters, the improved geopolitical backdrop helped drive a broader rebound across technology and other growth-oriented sectors.

Nvidia, AMD, Micron, and Intel had all come under pressure in recent sessions, but Monday's combination of renewed AI enthusiasm and easing geopolitical concerns encouraged investors to rotate back into semiconductor stocks.

The crypto market is currently in the midst of a prolonged downturn as investor appetite for risky alts like Bitcoin (BTC) has dried up since the coin hit its all-time high (ATH) on Oct. 6, 2025.

Since then, the largest coin—with a market cap of $1.23 trillion—has lost around half its value and is holding on to the psychological $60,000 level by a thread.

For crypto enthusiasts, the good news is that Bitcoin has successfully retested that level on numerous occasions since February. The bad news is that the macro environment that has led to the current crypto winter remains firmly in place, and there is likely more pain ahead before the market finds firm footing.

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How the Fourth Crypto Winter Came to BeOn paper, a $1.23 trillion market cap seems prolific. But at BTC’s peak in October, its market cap was approaching $2.5 trillion. For context, that made it larger than any company in the S&P 500 save for Magnificent Seven members NVIDIA NASDAQ: NVDA, Alphabet NASDAQ: GOOGL, Apple NASDAQ: AAPL, Microsoft NASDAQ: MSFT and Amazon NASDAQ: AMZN.

But the very same market rotation that saw the Nasdaq correct from its ATH in October 2025 has similarly afflicted Bitcoin, and with it the rest of the crypto market. Traders rotated into sectors and assets that they believed offered superior value. That risk-off strategy benefited emerging markets, underappreciated S&P 500 sectors like industrials and materials, as well as fixed-income securities, with bonds offering shelter to investors seeking yield and stability.

At the same time, investors looking to maintain risk-on strategies have found homes in the latest development in the AI trade: a global memory chip shortage. With AI stocks continuing to dominate the growth-focused narrative, Bitcoin and the spot exchange-traded funds (ETFs) that track it have seen heavy selling. For the week ending June 6, spot Bitcoin ETFs saw $1.72 billion in net outflows—the most since February 2025.

Regardless of macro conditions, crypto winters are recurring functions of distinct market cycles. After extended rallies that result in ATHs, Bitcoin historically corrects more severely than its equity market counterparts. But with the historical crypto bear markets often lasting around 13 months, more losses are likely.

Bitcoin’s Slump Has Spilled Into the Equities MarketThe fallout hasn’t been limited to the crypto market. Stocks and ETFs with direct or indirect exposure to Bitcoin have fared just as poorly. The most famous of those, perhaps, is Strategy NASDAQ: MSTR.

Strategy Today

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$457.22Price Target$313.93

Originally a global provider of enterprise analytics and mobility software, the company’s rebrand from MicroStrategy included an all-in pivot to crypto that resulted in it becoming the world’s largest publicly traded Bitcoin treasury.

Currently, Strategy holds more than 845,000 BTC, or more than 4% of the entire global supply.

While that strategy is ideal in a bullish crypto market, it has been devastating for MSTR investors who have, alongside Bitcoin’s crash, seen their shares lose more than 18% in 2026 and more than 65% over the past year. To put that into perspective, at MSTR’s 52-week high in July 2025, the stock hit $457.22. On June 12, MSTR closed at $123.97.

The company has taken advantage of the crypto winter, adding 1,550 BTC on June 8 amid Bitcoin’s depressed prices. But the acquisition cost of Strategy’s original holdings are estimated to be around $64 billion. At today’s market price, they have devalued to $52 billion.

Bitcoin spot ETFs have suffered as well, given the aforementioned outflows they’ve experienced. Funds like the iShares Bitcoin Trust ETF NASDAQ: IBIT and the ProShares Bitcoin ETF NYSEARCA: BITO have dropped around 51% and 63%, respectively, from their 52-week highs.

The Silver Lining: Why This Crypto Winter May Be Less SevereThis current cycle marks the fourth crypto winter since digital currencies evolved from a mere fad into a global market that warranted everyday investors’ attention. And while all four have occurred within the past decade—something that has become expected given the asset class’s inherently volatile nature—each iteration has been followed by an exponentially more pronounced recovery that has seen Bitcoin hit new ATHs.

Moreover, Bitcoin’s drawdowns during each cycle have proven to become increasingly less severe:

During the first crypto winter from 2014–2015, the price of BTC plummeted from its peak of around $1,200 to around $170, good for a loss of roughly 86%.

From 2017–2018, BTC saw a peak-to-trough decline from $19,800 to $3,200, or 84%.

During the 2021–2022 crypto winter, BTC fell from nearly $69,000 to about $15,500, a decline of roughly 77%.

Based on previous cycles, it is reasonable to conclude that while the current crypto winter is likely to extend deeper into 2026, Bitcoin’s losses very likely may be lower than during previous bear markets. Much of that can be attributed to the fact that the crypto market’s structure has significantly evolved. While highly speculative altcoins have seen outsized losses, Bitcoin has been cushioned by institutional adoption and ETF inflows like those exhibited by BITO.

That fund has seen institutional buying outpace selling every quarter since Q3 FY2024, and over the past 12 months, inflows of nearly $182 million have easily surpassed outflows of just over $37 million. That pattern is even more discernible for IBIT, which over the same period has seen inflows of $6.6 billion against outflows of less than $2 billion, with institutional buying surpassing selling in all but one quarter since the ETF’s inception in Q1 FY2024.

Importantly, while demand is currently light given Bitcoin’s dramatic price correction, long-term crypto holders can—like Strategy—view the current downturn as a buying opportunity with the expectations that prices will recover, allowing BTC to once again challenge its ATH of $126,198.07 from October 2025.

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Sequoia Capital partner Shaun Maguire went on CNBC last week and said SpaceX (NASDAQ:SPCX), freshly trading, looks to him “more like Nvidia three years ago” than Tesla (NASDAQ:TSLA | TSLA Price Prediction). He also said he plans to hold his shares “forever.” Sequoia is a longtime SpaceX backer, so the incentive to talk his book is obvious. Still, the comparison is worth unpacking because it is a specific claim about where SpaceX sits on the curve, and the curve has a recent, very expensive precedent.

The NVIDIA comparison, and why he rejected the Tesla one Three years ago, in June 2023, NVIDIA (NASDAQ:NVDA) traded at a split-adjusted $39.41. The AI thesis was contested, hyperscaler capex was just beginning to inflect, and bears framed the stock as a cyclical chip name riding a temporary GPU shortage. Since then, NVIDIA shares are up 419.89%, the company carries a $4.95 trillion market cap, and Q1 FY27 data center revenue alone hit $75.25 billion, up 92% year over year. CEO Jensen Huang called the buildout “the largest infrastructure expansion in human history.” You can read the underlying 8-K here.

Maguire’s framing implies SpaceX is at the analogous moment. Customers are real, the infrastructure thesis is concrete, and the multiple has not yet priced in what he thinks 2029 and 2030 revenue will look like. Tesla gets rejected because it often traded on narrative rather than on visible contractual revenue. SpaceX’s Connectivity segment generated $11.39 billion in 2025, with segment adjusted EBITDA of $7.17 billion, growing 49.8% year over year. That is the part of the business already paying for the harder parts.

The three-year growth catalysts Maguire is underwriting He expects “dramatic growth” over the next three years from three vectors. Starship, orbital data centers, and Starlink direct-to-cell. SpaceX says Starship V3 should carry 100 metric tons to orbit, and the vehicle could eventually reduce the cost to reach orbit by 99% or more. Drop launch cost by two orders of magnitude and the addressable market reorders itself.

The orbital data center pitch is wilder. SpaceX expects to begin deploying orbital AI compute satellites as early as 2028, eventually a constellation of potentially millions of satellites running inference workloads in sun-synchronous orbit. The xAI acquisition closed in February 2026 and now forms the AI segment, which generated $818 million in revenue in the first quarter alone while burning operating cash on compute buildout.

The “hold forever” model and what’s actually behind it Maguire said the quiet part out loud. “I have what I think the company’s revenue is going to be in 2029, 2030. And I have what I think is a reasonable multiple on that. The answer I get to is a very big number.” He also called SpaceX’s mission “the most important mission of any company in history.” That second part is venture-capital register. The first part is a DCF dressed up in conviction language.

Early backers have an obvious reason to be vocal at debut. Newly public stocks routinely sag around lock-up expiration as insiders sell. None of that invalidates the long thesis, but it shapes how a public-market investor should pace any position.

Key-man risk and the public-market workarounds On Elon, Maguire said “Elon is the most visionary entrepreneur of all time. I also think he’s underappreciated in his operational ability.”. SpaceX’s S-1 is blunter, describing the company as “highly dependent” on Musk and noting it does not maintain key-person life insurance on him. He also runs Tesla, holds roles at Neuralink and The Boring Company, and previously served as Senior Advisor to the President.

For exposure to the same ecosystem, Tesla carries a $2 billion equity stake in SpaceX and shares Musk’s attention. Shares are down 7.2% year to date at $406, though Polymarket assigns a 90.5% probability that SpaceX carries the higher valuation between the two by June 30.

The closer launch comparable is Rocket Lab (NASDAQ:RKLB), up 34% year to date and 285% over the past year. Q1 revenue grew 63.5% to $200.35 million, backlog reached $2.2 billion, and the company was selected for the Department of War’s Space Based Interceptor program. Neutron, the medium-lift rocket meant to match Falcon 9, slipped later into 2026 after a stage-1 tank test failure. The valuation, at 102.6 times trailing sales, already prices in a lot of what has not happened yet. Which, oddly enough, is also Maguire’s argument for SpaceX. The difference being he gets to hold his shares forever at the cost basis Sequoia paid years ago, and you do not.

Nvidia (NVDA +0.15%) has proven itself to be an excellent investment in recent years -- it's soared 1,000% over the past five. The artificial intelligence (AI) chip giant has been among the first companies to monetize its AI investments in a big way. This is because Nvidia's chips are an essential tool for customers throughout their AI path -- from the training of models to the actual use of the technology to address real problems.

And this demand for chips has helped push Nvidia's earnings to record levels. For example, in the latest full year, revenue rose 65% to $215 billion. And net income climbed to $120 billion. Though rivals exist, customers flock to Nvidia because its chips -- known as graphics processing units (GPUs) -- offer the fastest speed around. Speed is an important advantage because it favors efficiency and allows a customer to bring its AI projects to commercialization sooner -- and both of these elements may reduce total costs over time.

Nvidia stock clearly is a great stock to own, but now the question is: When should you actually make the purchase? Should you pick up the shares ahead of a potential catalyst on June 24? Let's find out.

Image source: Getty Images.

An AI chip giant First, we'll start by diving a little deeper into the Nvidia story. The company, as mentioned, has become an AI chip giant thanks to its top-performing GPUs. But Nvidia isn't just a chip player. These chips are part of entire systems, including a range of products and services -- from networking tools to enterprise software. Nvidia has even designed platforms that address problems and needs of specific industries: For example, the company offers pharmaceutical and biotech companies solutions for AI-assisted drug discovery.

And Nvidia has become a key partner for companies developing tomorrow's technology, from autonomous vehicles to humanoid robots and even next-generation telecom. All of this has broadened Nvidia's reach well beyond the GPU itself -- and secured its spot in the AI story as it develops and expands.

The latest major news is that Nvidia is now pursuing another enormous chip market: the central processing unit (CPU) market. CPUs are the chips that power all computers, and Intel and Advanced Micro Devices have been leaders in this area. These chips weren't a big part of the AI story in the early part of the AI boom -- but all of that is changing as agentic AI emerges. CPUs fuel AI agents, the software that considers a problem and takes action, or even several actions. Nvidia saw this coming, and this year is launching its first-ever stand-alone CPU for data centers and a superchip for personal computers, including its GPU and CPU.

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What's happening on the morning of June 24 All of this suggests plenty of good times ahead for Nvidia. So, now, with this in mind, let's consider what's set to unfold on June 24 at 9 a.m. Pacific Time. And that's the company's annual meeting of shareholders. It will be held virtually, allowing shareholders from any location to easily participate. A few items are on the agenda -- such as the election of 10 directors and approval of executive compensation -- but these aren't likely to be decisions that will impact stock performance.

Nvidia isn't known for making major announcements during these meetings, and it's important to keep in mind that the company recently reported earnings, so any such news would have been given at that time. But chief Jensen Huang may offer a few comments about Nvidia's position in the AI market or comment on the future trajectory of AI. And any such comments could offer the stock direction in the hours or days to follow.

Now, let's get back to our question: Should you buy Nvidia stock before this meeting? I consider Nvidia a buy today, due to the strengths I mentioned above and its dirt cheap valuation -- it trades at 22x forward earnings estimates. But you don't have to rush to get into the stock before June 24, and here's why.

As a long-term investor, you'll aim to hold onto Nvidia stock for at least five years. And any price movement around the shareholders' meeting is unlikely to change your returns when you hold on for that long. All of this means that, yes, Nvidia is a buy -- right now or after June 24.

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Nvidia (NASDAQ:NVDA | NVDA Price Prediction) CEO Jensen Huang is a great man to listen to if you’re looking for a preview of what’s to come from the future of the AI revolution. Indeed, it wasn’t all too long ago that Mr. Huang was sounding upbeat about the AI boom at a time when the average investor could not even begin to fathom what AI was. Indeed, the launch of OpenAI’s ChatGPT seemingly changed everything overnight, and as the GPU king, Nvidia hasn’t looked back since.

With Nvidia seemingly trying to get past a checkpoint (or a lengthy consolidation channel) en route back to prior highs, questions linger as to what it’s going to take to get the GPU leader back to its fast-gaining ways. With Mr. Huang saying things like “The whole industry supply chain” and everything being “in short supply because demand is so high.”

It certainly feels like Nvidia shares look like a bit of a gift at around $200 per share, especially if the scenario that Mr. Huang sees lasts for a couple of years. Indeed, he sees the supply-demand imbalance as “going to persist for several years.” In my view, it’s hard to argue against the man, especially given his stunningly accurate track record of calls over the years.

There’s risk in Nvidia stock, but is it overpriced to the point that Nvidia actually offers a good risk/reward? At this juncture, there certainly seems to be a bit of a value disconnect. How could a company with ridiculous growth and margins be going for a middle-of-the-pack (the pack being the Magnificent Seven) kind of multiple of 31.3 times trailing price-to-earnings (P/E)? Indeed, you could pay a far higher price for a company with a growth rate that’s south of 10%.

While it’s unreasonable to think that Nvidia’s 70%+ sales growth and gross margins will last forever (in fact, these metrics could nosedive once the cycle turns, which is probably why so many have paused with Nvidia stock), perhaps investors should actually consider the most dangerous words of “things are different this time,” even though it’s gotten many into a steaming heap of trouble in past revolutionary booms, the most recent being during the dot-com bust.

Perhaps the inverse phrase, that “things won’t be any different from last time,” is just as much of a problem for those who are so convinced there’s a bubble in AI to bet against names like Nvidia (think Dr. Michael Burry of The Big Short fame, who holds bearish put options against the company).

Of course, the problem during the dot-com days was that the revolutionary technology made it okay to forget about valuation.

Nvidia stock’s valuation is arguably too reasonable With Nvidia stock, the valuation makes a lot of sense. And it may be treated as a value trap, likely because shares have had a solid six-year chart.

Any way you look at it, though, investors must ask themselves if the risk of a cyclical implosion in AI demand exceeds the reward to be had if Jensen Huang is correct and AI demand will still outpace (perhaps heavily) supply for many years to come. The timing will always be hard to get. Not even the great Mr. Huang will get the timing of the AI market with surgical precision.

But the big question is whether or not investors view the GPU titan as a value trap or not. It looks cheap because it’s either nearing a peak in the cycle (cyclical stocks tend to appear cheapest when they’re not actually) or because it’s actually cheap. That’s the big debate right now. And if you believe Jensen Huang and the pace of CapEx we’ve witnessed this year, perhaps the move is to be a net buyer of the shares.

The bottom line I’ve said it before, and I’ll say it again: either Nvidia stock is wildly undervalued or it’s severely overvalued, depending on what AI demand does next. Either way, the market might be underestimating the magnitude of what’s to come.

In my humble opinion, it’s things like Claude Mythos that lead me to believe the former is likelier than the latter, as big firms throw money to alleviate chokepoints in this AI revolution. Mythos is generating serious, unfathomable value in the cybersecurity scene. And the big question is whether there will be more Mythos to come as everyone else gets a taste of Claude Fable.

Jensen Huang spent most of NVIDIA (NASDAQ:NVDA | NVDA Price Prediction)’s Q1 FY27 earnings call on May 20, 2026 doing something unusual for a chip CEO: arguing that the chip itself is no longer the company’s most important asset.

His core line: “Agentic AI has arrived, doing productive work, generating real value and scaling rapidly across companies and industries. NVIDIA is uniquely positioned at the center of this transformation as the only platform that runs in every cloud, powers every frontier and open source model, and scales everywhere AI is produced, from hyperscale data centers to the edge.”

The word that carries weight is “platform.” Huang argues competitors can copy a transistor pattern, but not the surrounding stack: CUDA software, NVLink scale-up networking, Spectrum-X scale-out Ethernet, BlueField control plane, and the manufacturing choreography that turns silicon into a working AI factory.

The Quote That Sums Up the Thesis He said it more bluntly on the prior cycle’s call: “The AI race is not just about chips. It’s about which stack the world runs on.” And: “The platform that wins the AI developers wins AI.”

The numbers back the framing. Q1 FY27 revenue hit $81.61 billion, up 85% year over year, with non-GAAP EPS of $1.87 and non-GAAP gross margin of 75.0%. Most revealing: Data Center Networking at $14.8 billion, up 199% YoY. Networking would not exist if NVIDIA were just selling chips into a commodity market. InfiniBand, NVLink, and Spectrum-X demand tripled because customers buying GPUs are buying them inside rack-scale systems that depend on NVIDIA’s fabric.

Why Customers Keep Coming Back Software does similar work. CFO Colette Kress noted that software optimizations have already improved Blackwell’s performance by 1.5x in the last month alone, with Hopper having seen a 4x inference performance increase over two years through software alone. Customers who switch chips lose that compounding curve.

On China, Huang has been explicit about why silicon dominance alone is fragile: “The U.S. has based its policy on the assumption that China cannot make AI chips. That assumption was always questionable and now it’s clearly wrong. China has enormous manufacturing capability.” If chips were the moat, export controls would be the strategy. Instead, NVIDIA defends ground at the developer and ecosystem layer.

What the Guide Says About Lock-In The Q2 FY27 guide is $91.0 billion plus or minus 2%, with non-GAAP gross margin holding at 75.0% and no China data center compute revenue assumed. Total supply-related commitments now sit at $119.0 billion, and multi-year cloud service commitments expanded to $30.0 billion. Those numbers, signed before the chips exist, are practical evidence of platform lock-in. The board raised the dividend from $0.01 to $0.25 per share and authorized an additional $80 billion buyback.

I have owned NVIDIA for over 15 years. What has actually changed in the last two cycles is how complete the surrounding stack has become, while the GPU lead has held steady. Shares closed at $205.19 on June 12, up 10% year to date, with the prediction-market crowd pricing a June range of $192 to $240. Keep an eye on networking growth and the China carve-out next quarter. Both will tell you whether Huang’s platform story holds when chip headlines do not.

The artificial intelligence boom has created a familiar pattern on Wall Street. Investors spend years chasing the market's biggest winner, then spend the next few years searching for whatever comes next. That search is happening right now with Nvidia (NASDAQ: NVDA). After becoming one of the most successful investments in stock market history, Nvidia's recent performance... Should You Look for the "Next Nvidia" - or Just Buy the Real Thing?

So far this year, Nvidia (NVDA +0.15%) stock has gained 8% -- placing it slightly above the returns in the S&P 500 and nominally trailing those seen in the Nasdaq.

From a valuation perspective, the world's most valuable company boasts a forward price-to-earnings (P/E) ratio of about 22. Moreover, Nvidia's forward P/E has spent much of 2026 locked in a narrow corridor between roughly 18 and 25.

This steadiness raises two questions: When was the last time investors saw Nvidia's forward multiple behave this way and what happened next?

Image source: Nvidia.

Nvidia's valuation profile echoes its pre-AI boom Per the chart below, investors can see that Nvidia's forward P/E has not traded inside a comparable, compressed band since before the artificial intelligence (AI) revolution. Prior to the outburst of generative AI models back in late 2022, the market largely viewed Nvidia as a company primarily focused on graphics and gaming with a data center services side hustle.

NVDA PE Ratio (Forward) data by YCharts.

Once ChatGPT, Anthropic's Claude, and a handful of other frontier models arrived, demand for accelerated computing exploded. As it turns out, Nvidia's first-mover advantage in designing graphics processing units (GPUs) was uniquely positioned for this moment. Hence, the company's revenue and earnings rose dramatically virtually overnight. Subsequently, Nvidia's forward earnings valuation multiple broke out and spent the next few years oscillating at levels frequently above 40.

The current range represents a reversion to a pre-AI boom rhythm. Against this backdrop, the current sideways trading seen in Nvidia is the first real extended stretch of valuation stability since the world began pricing the company as the indispensable king of AI infrastructure build-outs.

Don't let valuation distract you from Nvidia's guidance Nvidia's valuation profile looks even more striking when set against the company's actual operating momentum. During the fiscal 2027 first quarter (ended April 26,2026), revenue from Nvidia's data center segment surged 92% year over year, reaching $75 billion. Management forecasted total revenue to be $91 billion next quarter, plus or minus 2%. This represents an acceleration quarter over quarter and a staggering 95% year-over-year growth.

To me, a forward earnings multiple stuck around 22 does not necessarily signal skepticism about Nvidia's near-term earnings power. Instead, I think it reflects a situation whereby the market has already baked in meaningful growth and is no longer willing to pay the premium multiples witnessed throughout 2023 to 2025.

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In other words, range-bound valuation multiples can be normal when investors simply expect continued strong top- and bottom-line expansion. These dynamics are actually quite common for mature, high-growth technology platforms.

Nvidia is positioned for another leg of valuation expansion After Nvidia's forward P/E dropped sharply to about 18 earlier this year, the multiple has more recently stabilized and begun to edge modestly higher within a tight range. This could suggest that early stages of valuation expansion are in the works. Perhaps the clearest reason why is Nvidia's growing number of strategic partnerships. These are the clearest catalysts for Nvidia's next leg up.

The company has invested billions of dollars in Nokia, Coherent, Lumentum, and Marvell Technology to fortify high-speed optical interconnects and advanced networking. These technologies are becoming increasingly important as hyperscalers allocate capital expenditure (capex) beyond GPU procurement and build more sophisticated infrastructure stacks within AI factories. Moreover, these relationships unlock numerous opportunities for Nvidia beyond data centers -- opening the door to scalable edge computing, robotics platforms, and autonomous vehicle systems.

These moves quietly broaden Nvidia's total addressable market (TAM) beyond chips. I think the company has started laying the groundwork to justify higher valuation multiples once execution catches up with these new opportunities. History suggests that if Nvidia's strong guidance is delivered, the current range-bound phase should turn out to be nothing more than a temporary consolidation before the next chapter of significant valuation rerating unfolds.

Nvidia (NVDA +0.15%) has been one of the biggest artificial intelligence (AI) success stories so far. The company provides a crucial tool -- and one of the highest quality -- used in the development of this technology. This is the graphics processing unit (GPU), a chip that powers important tasks such as the training of models.

The company's GPU strengths and its portfolio of related products and services have helped it to report record levels of earnings quarter after quarter. And this has lifted the stock too, with gains of more than 400% over three years.

Some investors have worried that, after such a performance, Nvidia may lose momentum. It's true that there are plenty of rivals in the AI chip space, from chip designers like Advanced Micro Devices to some of Nvidia's customers, like Amazon, that have created their own chips.

But my prediction is Nvidia will stay ahead of the crowd -- and the second half of this year actually will represent a game-changing moment for the AI giant. Let's take a closer look.

Image source: Getty Images.

Nvidia's GPUs over time So, first, a bit of background on this market leader and where it stands in today's AI environment. Nvidia's GPUs have been around for decades, and in their early days, they mainly served the gaming market. The company has since expanded their use, and this was made possible by Nvidia's creation of CUDA, a parallel computing platform.

And about a decade ago, recognizing the AI opportunity, Nvidia tailored its GPUs for this industry. This, along with the creation of other products to support the GPU in its AI tasks, helped Nvidia build an AI empire. In the latest quarter, the company reported an 85% increase in revenue to more than $81 billion. And gross margin has remained pretty consistently above 70%, showing high profitability on sales.

As mentioned, Nvidia isn't alone in the space. Rivals sell GPUs or other similar AI chips, and they, too, have delivered significant growth. Yet Nvidia has maintained its lead, due to its brand strength and the quality of its products, as well as its focus on innovation.

But some investors have wondered how long this will last, particularly as rivals too have been supercharging their innovation engines -- and Nvidia's GPUs carry the highest price tag. Meanwhile, the needs of AI are changing. For example, the early stage of the AI story was all about training models, and for this, the GPU was critical.

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The era of AI agents Today, we're moving into the era of AI agents, involving the actual application of AI to problems. In agentic AI, the AI agent acts as a human would -- considering a problem and taking steps, in many cases multiple steps, to solve it. And to power this process, another type of chip is most needed: the central processing unit (CPU). These are the general chips found in all computers.

Nvidia hasn't been a big player in the CPU market. Intel and AMD have been longtime leaders in this market, but if Nvidia meets its goals, this might change.

And this leads me to my prediction. The second half of the year could be a key moment for Nvidia because it plans to take two game-changing steps: It aims to release its Vera Rubin platform for data centers, and this includes the company's first-ever stand-alone CPU. And, for the PC market, it aims to release a new superchip, the Nvidia RTX Spark. This chip, including an Nvidia GPU and an Nvidia CPU, will launch in Windows laptops this fall from Microsoft, Dell, and others.

So, as of the second half, Nvidia will advance in the CPU market in a big way -- aiming for share in data center CPUs and in the PC market. Nvidia says the stand-alone CPU market is worth about $200 billion, and the company says it's on track for leadership.

The big news here is that Nvidia is maintaining its GPU dominance and eventually may hold a similar position in the broader CPU market. This could greatly increase the company's revenue growth potential over time -- and that's why I predict that the launches of these two CPU products will represent a game-changing moment in the Nvidia story.

At GTC Taipei, NVIDIA introduced the RTX Spark Superchip, a platform capable of delivering up to 1 petaflop of AI performance while bringing the company’s CUDA and RTX ecosystem to Windows PCs.

Arm Momentum Continues“NVIDIA’s entry into the AI PC market has the potential to reshape what has become a relatively mature PC industry by creating a new category of local AI inference machines,” the analysts wrote.

Why NVIDIA May Be DifferentCounterpoint argued that RTX Spark could stand apart from existing Arm-based PCs because it combines a high-performance GPU, unified memory architecture, and direct compatibility with NVIDIA’s widely used AI software stack.

The firm said the platform could become one of the most compelling systems for running large language models, AI agents, and generative AI applications directly on a PC.

NVIDIA’s extensive CUDA developer ecosystem and links to its broader AI infrastructure portfolio could also help reduce software bottlenecks and speed adoption.

Key Challenges RemainDespite the opportunity, Counterpoint said NVIDIA still must prove that Windows on Arm software compatibility is mature enough for broad adoption.

Pricing could also be a hurdle. The firm noted that high-performance AI hardware typically comes with higher costs, making market positioning critical.

Counterpoint added that widespread adoption will ultimately depend on whether local AI inference becomes a mainstream consumer use case rather than remaining limited to developers and AI professionals.

The report was authored by Counterpoint Research analysts Minsoo Kang and David Naranjo and published on Friday.

NVDA Price Action: NVIDIA shares were up 0.61% at $206.11 during premarket trading on Friday, according to Benzinga Pro data.

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Nvidia Corporation remains a compelling buy as new growth catalysts and robust Q1 results reinforce the bullish thesis despite recent share price weakness. NVDA's Q1 revenue surged 85% Y/Y to $81.62B, with strong guidance, an $80B buyback, and a dividend hike signaling enduring growth momentum. Expansion into AI CPUs, PC superchips, and deepening partnerships with Apple, Microsoft, and SK hynix open significant new addressable markets for NVDA.

It hasn’t been all too clean a breakout for shares of AI chip giant Nvidia (NASDAQ:NVDA | NVDA Price Prediction), which is still down close to 13% after tumbling off its mid-May highs. Indeed, it seems like the company can do everything right and still get rewarded with a reaction that’s relatively muted compared to the rest of the semiconductor scene.

Even if some think that shares of Nvidia have run into a bit of a ceiling just shy of the $6 trillion market cap mark, I still think there are a lot of reasons it might make sense to give the GPU titan the benefit of the doubt.

Of course, the bears, including the likes of Michael Burry of The Big Short fame, also have compelling bear points. But, at the end of the day, it’s up to investors to consider the points from both camps before making a decision on a stock that may very well be among the most puzzling of the Magnificent Seven for more reasons than one.

In this piece, we’ll run through three reasons why Nvidia stock might still be worth keeping on the radar, even if it seems like any further appreciation will be more of a slog.

The stock is starting to look ridiculously cheap One of the top reasons for interested buyers has to be the valuation. The company is backing up its appreciation with earnings growth. And until that changes or the stock starts getting going again, shares are bound to stay cheap-looking. But just because the price-to-earnings (P/E) multiple is low at 31.3 times or just 22.8 times forward P/E does not mean shares are actually an undervalued bargain hiding in plain sight at the very top of the market.

Of course, it depends on whether demand for AI and the hardware that goes along with it will still stay strong. At this juncture, it’s looking like AI demand is only getting stronger. And as Nvidia readies for the Vera Rubin age while getting into the PC superchip market with RTX Spark, an argument could be made that the off-the-charts growth numbers aren’t about to reverse course, but continue higher.

Based on the market cap, Nvidia looks like another semiconductor stock in a bubble. But based on the financials, it’s a hyper-growth firm in a class of its own.

Competition exists, but Nvidia has stayed a step above It’s all about custom silicon these days. New ASIC innovations hold plenty of promise as the inference wave rolls in. But, at the same time, Vera Rubin is on the horizon, and it’s going to sell. Given the massive leaps Nvidia has made over the past generation, and where AI demand could go from here if some of the AI bulls are proven right, perhaps that big reversal might not be right around the corner.

Smart bets and collabs across the AI stack Nvidia’s rolling in big money, and it’s investing in across layers of the stack that go above and beyond the hardware layer.

Whether we’re talking about betting on connectivity or the formation of alliances with some of the other forces (think the top AI labs), helping to fuel the AI boom, every collaboration that the firm makes may very well give Nvidia exposure to the AI revolution. Whether we’re talking about the stakes in the interconnect plays

Nvidia Corporation is rated Overweight with a $305 price target, offering 50%+ upside, as the current 15x forward P/E deeply discounts growth durability. Networking revenue is compounding faster than compute, with NVDA's full-stack system and CUDA platform reinforcing a wide, stable moat against custom ASIC threats. Guidance excludes China Data Center compute, making any China reopening pure upside optionality not reflected in current estimates or valuation.

NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) and AMD (NASDAQ:AMD) both reported earnings in May, and the contrast says everything about today’s AI hardware market.

NVIDIA posted a $81.6 billion quarter built on Blackwell dominance. AMD posted $10.25 billion, with the Meta partnership reshaping its data center story. One is the incumbent. The other is the credible challenger finally getting customer commitments at scale.

Blackwell Carries NVIDIA. Meta and MI450 Carry AMD. NVIDIA’s Data Center segment hit $75.25 billion, up 92% year over year, with networking alone at $14.8 billion (+199%). That networking line is bigger than AMD’s entire data center business. Jensen Huang framed it bluntly: “The buildout of AI factories, the largest infrastructure expansion in human history, is accelerating at extraordinary speed.”

AMD’s quarter was smaller but accelerating. Data Center revenue reached $5.78 billion (+57%), and Lisa Su told investors “Customer engagement around MI450 Series and Helios is strengthening, with leading customer forecasts exceeding our initial expectations.”

The 6 GW Meta deployment, starting with a custom MI450 design, gives AMD something it has lacked: a flagship hyperscaler willing to bet on its accelerator roadmap.

One Sells the Whole Factory. The Other Sells the Best Alternative. NVIDIA’s platform sweep keeps widening. Vera Rubin pairs a custom CPU with Rubin GPUs, Dynamo 1.0 reportedly lifts Blackwell inference up to 7x, and partnerships with Marvell, Corning, Lumentum, and Coherent lock in the optics layer.

AMD’s counter is ROCm maturity, HBM4 collaboration with Samsung for the MI455X, and 6th Gen EPYC (Venice/Verano) with Meta as lead customer. Different shapes of moat.

Lens NVIDIA AMD Q1 Revenue Growth +85.2% YoY +37.9% YoY Non-GAAP Gross Margin 75.0% 55% Next-Q Guide $91.0B ~$11.2B Forward P/E 24 68 The valuation gap matters. AMD trades at a trailing P/E of 159 after a 128% YTD run. NVIDIA, despite reporting a $58 billion net income quarter, carries a forward multiple of 24. Cheaper than its smaller rival.

What Decides the Second Half I will watch three things. First, whether MI450 customer forecasts translate into firm orders that show up in AMD’s Q3 earnings report.

Second, NVIDIA’s China exposure, since Q2 guidance excludes any Data Center compute revenue from China, leaving upside if policy shifts.

Third, supply. NVIDIA already locked in $119 billion of supply commitments, while AMD is still negotiating HBM4 capacity with Samsung.

Why I Lean NVIDIA Heading Into Summer On a risk-adjusted basis, NVIDIA screens more favorably on the current data. The valuation spread is notable: AMD trades at 68x forward earnings while growing 38%, versus NVIDIA at 24x growing 85% with 75% gross margins, alongside a $80 billion fresh buyback and a 25x dividend hike.

NVIDIA shares have also cooled, down 8.2% since the May 20 report, while AMD rose 37.5%. The AMD case rests on Helios reshaping the competitive map; the NVIDIA case rests on scale, cash generation, and a cleaner near-term setup.

Nvidia stock edged lower on Friday even as the chipmaker continued to expand its global artificial intelligence footprint through new partnerships, product initiatives, and growing demand for its next-generation processors.

Shares of Nvidia NVDA slipped 0.18% during trading.

The modest decline came despite a series of developments that highlighted the company's efforts to strengthen its position in AI infrastructure markets both inside and outside the United States.

The company has reportedly begun informing Chinese customers that they can place orders for its new Vera central processing units, with shipments potentially beginning in August.

The move could provide Nvidia with another avenue into the Chinese market, where export restrictions have limited sales of some of its advanced AI products.

According to Reuters, one major Chinese cloud provider is preparing an initial order for more than 300 servers built around Nvidia Vera chips.

Customers are expected to first test the systems in overseas data centers before deciding whether to proceed with larger deployments.

Nvidia reportedly sees Vera as a potential $20 billion revenue opportunity by the end of its fiscal year in January.

Unlike the company's graphics processing units, which remain subject to tighter US export restrictions, the processor business may face fewer regulatory hurdles.

Beyond China, Nvidia continues to broaden its reach through major AI infrastructure agreements.

Australian cloud-infrastructure provider SharonAI Holdings announced a six-year partnership with Nvidia to build 72 megawatts of new data-center capacity across Australia.

The project will deploy up to 40,000 Nvidia AI processors to support startups, enterprises, and university researchers.

Under the agreement, Nvidia will receive revenue from processor sales as well as a share of cloud revenue generated through SharonAI's hosting services.

Additional signs of demand have emerged globally. Nebius Group plans to invest approximately $2.275 billion in next-generation facilities in the United Kingdom powered by Nvidia's Vera Rubin products.

Meanwhile, Nvidia's partnership with SK Telecom aims to build AI-capable cloud infrastructure in South Korea focused on both AI training and inference workloads.

“Inference is crucial to the outlook, as it is the application of AI and a much larger market segment than infrastructure and training,” Nvidia CEO Jensen Huang has previously emphasized, highlighting the growing importance of AI deployment beyond model development.

Analysts remain bullish on AI demandAnalysts continue to express confidence in Nvidia's outlook following recent industry events, including the Taiwan Computex conference.

Analysts at Wedbush and UBS believe demand for GPUs remains strong while supply capacity continues to lag, creating favorable conditions for Nvidia in the coming quarters.

Wedbush also suggested that the AI hardware upgrade cycle may be accelerating as demand for Nvidia's Blackwell platform remains stronger than expected later in its product cycle.

The company is currently covered by 54 analysts, with approximately 95% maintaining Buy recommendations.

Nvidia has also continued investing in technologies designed to strengthen its long-term AI ecosystem.

One of its latest acquisitions is Kumo AI, an enterprise-focused predictive agent platform that helps forecast operational needs using customer data.

The technology is expected to complement Nvidia's broader physical AI strategy, including warehouse automation applications.

At the same time, Nvidia continues to invest heavily in future production capacity and supply-chain resilience.

While industry-wide constraints remain, analysts view Nvidia as one of the best-positioned companies to navigate potential shortages and meet rising AI demand.

SpaceX (SPCX) closed out the week with a $2 trillion IPO at the Nasdaq, but it wasn't the only stock that moved markets today. Marley Kayden and Sam Vadas talk about the historic public trading debut, along with Mag 7 headlines in Nvidia (NVDA) and Meta Platforms (META).