4 Golden Crosses With Double-Digit Upside AheadGSI Technology NASDAQ: GSIT is positioning its Gemini-II artificial intelligence processor as a production-ready hardware platform while it works to expand software tools and complete proof-of-concept programs that could lead to early production by the end of 2027, according to Vice President of Sales Didier Lasserre.
Speaking at a Canaccord session following the company’s June-quarter report, Lasserre said GSI has progressed from introducing Gemini-II about 18 months ago to placing the hardware into production and securing third-party validation and government-backed engagements.
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“Gemini-II is in production now as far as the hardware is concerned,” Lasserre said. He added that Cornell University compared a GSI board with an NVIDIA GPU in a retrieval-augmented generation, or RAG, test and found that GSI used 98% less power at comparable performance.
Compute-in-Memory Architecture Lasserre said Gemini-II’s compute-in-memory architecture is intended to reduce the power consumed by the repeated movement of data between processors and external memory in conventional CPU and GPU designs. The processor loads a model or database into on-chip memory and performs calculations within the memory bit line, he said.
That approach is particularly suited to search and high-performance computing applications, according to Lasserre. He said the company’s next-generation product, Plato, will target large language models, vision-language models and other edge applications by increasing the bandwidth for data entering the chip.
Plato is expected to offer what Lasserre described as near data-center performance within a power budget of 2 watts to 10 watts. He said the company expects to complete the chip’s design and tape-out in the spring.
While GSI develops its AI business, its long-standing SRAM business remains an important source of support for company operations. Lasserre said GSI has shipped more than 140 million SRAM devices over roughly 30 years. The products support AI-related infrastructure indirectly through customers including Cadence, whose emulation systems are used in chip design, and KYEC, which provides burn-in services for GPUs.
Proof-of-Concept Programs and Software Roadmap GSI is currently working on two announced proof-of-concept programs for Gemini-II: a Department of Defense-funded drone surveillance project and a Phase I Smart City project with a municipality in Taiwan.
In the drone surveillance program, Lasserre said the customer required a time-to-first-token result below three seconds and power consumption below 50 watts. He said GSI and drone partner G2 Tech demonstrated a result of 2.5 seconds at 30 watts in a June laboratory demonstration for the Defense Department.
The Taiwan Smart City project is initially designed to analyze video from 20 cameras and identify events as they occur, rather than simply recording footage for later review. Lasserre said a potential Phase II would expand the system to 80 cameras and add audio capabilities. A potential Phase III production deployment could involve between 2,000 and 6,000 cameras by the end of 2027.
He said one Gemini-II chip would support every four cameras in such a deployment, alongside an annual recurring software license for the application.
GSI expects to release an alpha version of its AI-assisted software development kit this fall to select customers, followed by a broader release next year. Lasserre said the software is central to allowing customers and systems integrators to develop applications without needing to work directly with the chip’s machine code.
According to Lasserre, an application for the drone proof of concept took approximately one person-year to develop before the AI-assisted SDK. The internal team’s early use of the new tool indicates that development time could be reduced to weeks, he said.
Defense Interest and Funding Position Lasserre said defense could be an early market for GSI’s AI products because government entities have shown early interest and made financial commitments through Small Business Innovation Research, or SBIR, awards.
GSI has won two SBIR awards with the Air Force Research Laboratory. The company has won two awards with the Space Development Agency. It has also won an award with the U.S. Army for a ruggedized edge server concept. One active Space Development Agency award is funding radiation testing of a commercial Gemini-II part for potential space use. Lasserre said testing completed in June showed zero single-event latch-ups, though the company was still awaiting the third-party report. Total ionizing dose testing was expected to begin at the end of August or early September.
The Army-funded effort involves a ruggedized edge server that could support object detection or synthetic aperture radar imagery processing in field environments. Lasserre said the concept could ultimately become a product and future revenue source.
On funding, Lasserre said GSI had $77 million in cash and no debt. The company is burning roughly $4 million per quarter, he said, with an expected additional expense of several million dollars during the spring related to Plato tape-out. He said the company believes its cash position is sufficient to meet its near-term milestones.
Looking ahead, Lasserre said investors should watch progress in completing the drone and Smart City proof-of-concept projects, the SDK rollout and Plato’s tape-out. “It’s really more of an execution” challenge than a technology-validation challenge, he said.
About GSI Technology (NASDAQ:GSIT)GSI Technology, Inc is a fabless semiconductor company specializing in the design and development of high-performance memory products. Headquartered in Sunnyvale, California, the company was founded in 1995 and has focused its efforts on content addressable memory (CAM) and high-speed SRAM (static random-access memory) solutions. As a publicly traded company listed on NASDAQ under the ticker GSIT, GSI Technology leverages advanced architectures to meet demanding data-processing requirements.
The company's core product portfolio includes ternary CAM (TCAM) devices, binary CAM (BCAM) devices and high-speed synchronous SRAM.
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The AI boom is creating opportunities across semiconductors, cloud computing, enterprise software, infrastructure, cybersecurity, and automation.
Inside this report, you’ll find 10 companies positioned to benefit as artificial intelligence moves from hype to real-world deployment and becomes a core growth driver for corporate America.
In 1970, Ginnie Mae first introduced the concept of a mortgage-backed security (MBS), a financial asset backed by a pool of mortgages that serves as collateral and passes its cash flows to investors.
It marked the birth of asset-backed securitization, which would spread to a wide range of assets, including auto loans, personal loans, student loans, and a broad swath of commercial loans.
Now, Nvidia (NVDA +0.54%) CEO Jensen Huang has a bold plan to launch what essentially amounts to chip-backed securities, with the collateral being graphics processing units (GPUs).
Huang is planning to partner with major Wall Street firms to create these financial instruments to continue fueling the AI build-out. What could go wrong?
Nvidia CEO Jensen Huang. Image source: Nvidia.
Turning to private credit Thus far, much of the AI build-out has been made possible by the hyperscalers' balance sheets. Companies like Microsoft, Alphabet, Amazon, and Meta Platforms have long been cash-generating machines.
But in recent years, they've depleted much of their free cash flow, raised equity, and turned to debt to fund what looks set to surpass $700 billion in capital expenditures this year, with plans to ramp that higher next year.
Now, Huang and a group of top private credit players on Wall Street, including Goldman Sachs (GS +0.52%), BlackRock, Blackstone, KKR, Apollo, and Brookfield, are teaming up to potentially find the necessary funding for the continued build-out.
While still in its infancy, the plan is for Nvidia to partner with these firms to raise $500 billion in capital that key stakeholders in the AI ecosystem could tap to keep building data centers and purchase the necessary equipment that makes the data centers operational.
AI labs, enterprises, and AI cloud players would be able to obtain this capital at attractive rates, according to a press release from Nvidia. And while the concept isn't fully fleshed out, it sounded like the capital would be raised from investors who buy securities backed by the GPUs in data centers.
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"You can think about it as a revenue stream, and you can securitize it or effectively divide that risk and sell it to investors who want to participate anywhere in that stack," Waldemar Szlezak, KKR's head of digital infrastructure, said during a CNBC panel.
Huang added that the compute provided by Nvidia is "broadly adopted, flexible across models and workloads, fungible and transferable across customers and operators, and continuously improved through CUDA software -- extending its useful life and improving its economics over time."
Interestingly, Nvidia said it may, on a case-by-case basis, offer to guarantee a quarter of each loan, which could lead to better interest rates for its partners.
However, borrowers will need to use Nvidia's preferred system architecture, so another company could take over the infrastructure if the borrower no longer has the means to continue operating it.
"You're starting to see, in a sense, you know, asset-based financing against this infrastructure build-out," Goldman Sachs CEO David Solomon told CNBC. "That's not surprising because these are real assets. They have real value."
A plan like this could make investors nervous because it bears remnants from the Great Recession.
In 2008, pools of collateralized mortgages that went bad led to huge losses in MBSes, which rippled through the market. It's not necessarily the financial structure of an asset-backed security that's bad; it's the collateral behind these instruments that could lose value.
During the Great Recession, no one thought housing prices would go down, but they eventually did. Furthermore, having Nvidia backstop the loan also puts the whole system at risk if something were to happen to Nvidia.
Private credit funds can also face redemption requests, so the structure of these deals is likely to feature lock-up provisions. Investors may also have an issue with Huang's statement about extending the useful lives of its chips.
Many of the bears have already argued that the hyperscalers are not properly accounting for depreciation, as chips will have shorter lifespans than they claim due to the regular release of new chip models.
It's still early, and the details of these future financing agreements are far from ironed out or even officially in motion. But it's certainly an interesting development to keep an eye on, as finding the funding for the continued build-out of AI infrastructure is key to the AI trade.
Goldman Sachs is in talks with potential investors about participating in Nvidia's $500 billion AI financing initiative, after leveraging its long-standing relationship with the chipmaker to secure a coveted role in the deal, people familiar with the matter said.
Shares of Cerebras Systems (CBRS) fell about 10% on Thursday after the AI chipmaker reported uneven second-quarter results, with weaker hardware sales offsettin
Nvidia Corp. (NVDA, Financials), the dominant supplier of artificial intelligence chips, has rallied 6.6% over the past five days as investors position for its
Sam Altman's push for a $1 trillion OpenAI IPO is on a collision course with SoftBank's need to repay a $40 billion bridge loan early next year, creating real tension around the deal's timing and valuation. All this tension matters for Microsoft (MSFT +0.90%) and Nvidia (NVDA +0.54%) shareholders, because both companies have meaningful OpenAI exposure on their balance sheets and in their narratives.
OpenAI filed a confidential S‑1 with the Securities and Exchange Commission in June and sits at a private post‑money valuation of around $852 billion after its March 2026 funding round. Reports put its 2025 revenue near $13 billion and its 2026 revenue near $2 billion per month, numbers that support a high valuation multiple, but not a stress‑free one. Altman has told investors he will not take the company public below $1 trillion, so the IPO must clear that bar, or the listing will stay on hold.
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SoftBank's ticking bridge To fund its expanded stake in OpenAI, SoftBank arranged an unsecured $40 billion bridge loan that matures in March 2027. Bridge paper exists to carry a borrower into a specific liquidity moment, which in this case lines up with a fourth-quarter 2026 or first-quarter 2027 window for OpenAI's IPO. If public markets balk at putting a $1 trillion valuation on the ChatGPT developer, SoftBank will either have to refinance at tougher terms or the company will have to accept a lower market cap -- an outcome that could ripple through its broader AI story.
Image source: Getty Images.
Microsoft's upside and dilution risk Microsoft owns roughly 27% of OpenAI after committing about $13 billion to it a few years ago, and it's in talks to add a bit under $10 billion more to its stake in the new funding round. A trillion-dollar IPO would turn that stake into one of the most valuable strategic holdings in corporate history, which supports the long‑term AI infrastructure thesis around Azure and Copilot. The risk here is that SoftBank's need for speed will push OpenAI to go public before the economics of enterprise AI are stable, leaving Microsoft with headline valuation gains but more scrutiny on capital intensity and on an AI partner whose stock could swing hard.
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Nvidia's leverage and exposure Nvidia has committed around $30 billion to OpenAI equity, part of more than $40 billion it has invested into AI labs, including Anthropic. OpenAI's roadmap still calls for using at least 10 gigawatts of Nvidia systems, with 1 gigawatt targeted for the second half of 2026, so graphics processing unit (GPU) demand remains the core value driver. A stretched OpenAI IPO that meets Altman's target and SoftBank's deadline would amplify the mark‑to‑market story around Nvidia's stake, while any reset in private AI valuations would highlight how much circular capital now sits inside the ecosystem that buys Nvidia's chips.
Key Takeaways CRWV & NBIS are seeing insatiable demand for their AI infrastructure offerings.GPUs have a much higher useful life than the AI bears thought.Q2 contracts show that profit margins are expanding. CoreWeave ((CRWV - Free Report) ) and Nebius Group ((NBIS - Free Report) ) are specialized AI cloud infrastructure providers often referred to as neoclouds or GPU hyperscalers. Unlike legacy cloud providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud, which were designed for web servers and enterprise IT, Nebius and CoreWeave build cloud infrastructure engineered specifically for high-density AI training. The two leading AI infrastructure companies reported earnings this week that impressed Wall Street. Following their earnings releases, CoreWeave shares jumped nearly 20% while Nebius shares bolted 34%. Below are 5 reasons their runs are just beginning, including:
Revenue Growth & Massive BacklogCoreWeave and Nebius are experiencing insatiable demand for their AI infrastructure offerings. For instance, Nebius’s Q2 revenues exploded by a mind-boggling 454% year-over-year. Meanwhile, Zacks Consensus Analyst Estimates project that demand will continue through 2027. Below are the Zacks Consensus Estimates for Nebius revenue:
Image Source: Zacks Investment Research
In addition, both companies ended Q2 with massive backlogs. For example, CoreWeave’s revenue backlog has grown by 246% year-over-year (this figure excludes $25B+ in net new customer commitments added in early Q3).
Image Source: CoreWeave
To put things in perspective, CoreWeave’s $104 billion backlog is nearly double its current market cap.
Useful Life Bear Thesis DebunkedNoted short seller Michael Burry and other AI bears have argued that the NVIDIA (NVDA) GPUs that fill CoreWeave and Nebius data centers have a useful life of roughly 3-5 years. However, the CoreWeave earnings call debunked the bear thesis. According to CoreWeave, NVIDIA A100 GPUs, released in 2020, now have a useful life of at least 9 years (directly countering Burry’s thesis). This means far less hardware depreciation than most Wall Street analysts project.
NVIDIA Vera Rubin DeploymentsCoreWeave and Nebius are leading the AI industry in deploying NVIDIA’s next-generation ‘Vera Rubin’ architecture. Vera Rubin is the most powerful agentic AI platform. Because both companies have close partnerships with NVIDIA, they will not need to join the standard hyperscaler lines to deploy this technology and will be first to market.
Profit Margins are ExpandingWhile both CRWV and NBIS remain unprofitable due to massive one-time front-loaded costs, recent data show that profit margins are expanding. Contracts in Q2 reportedly have 5-10% higher margins than prior quarters.
Post Earnings Drift & Trapped ShortsLarge post-EPS price moves on heavy volume are indicative of institutional accumulation. For example, Wednesday, NBIS shares jumped 34% as volume reached its highest level in history.
Image Source: TradingView
Meanwhile, Michael Burry and other trapped shorts are likely to be forced to cover their shares, adding fuel to the fire.
Bottom Line
CoreWeave and Nebius Group’s results illustrate that purpose-built AI infrastructure is the engine of the AI supercycle. Because of their multi-year backlog visibility, extended hardware lifespans, and direct access to NVIDIA’s newest chips, their moves are likely just beginning.
Nvidia (NVDA +0.54%) will report its second-quarter results on Aug. 26, and there's plenty of reason for optimism. The company is the leading maker of the processors that power artificial intelligence workloads, and it remains the world's largest company by market cap.
Nvidia has a history of delivering quarterly results that exceed analysts' expectations, and another solid report could send the chipmaker's stock soaring. Cathie Wood, CEO of Ark Invest, is apparently counting on that -- she has been scooping up shares. Over three recent trading days -- July 28, Aug. 5, and Aug. 10 -- she bought $59.9 million of Nvidia stock for her firm's exchange-traded funds (ETFs).
Ark Exchange-Traded Fund
July 28 Purchase
Aug. 5 Purchase
Aug. 10 Purchase
Total Purchased
Ark Innovation ETF
$8.2 million
$9.4 million
$12.6 million
$30.2 million
Ark Next Generation Internet ETF
$2.3 million
$2.7 million
$7 million
$12 million
Ark Autonomous Technology & Robotics ETF
$2.7 million
$3.1 million
$4.1 million
$9.9 million
Ark Fintech Innovation ETF
$1.1 million
$1.1 million
$1.5 million
$3.7 million
Ark Space & Defense Innovation ETF
$1.1 million
$1.3 million
$1.7 million
$4.1 million
Totals
$15.4 million
$17.6 million
$26.9 million
$59.9 million
Data source: Ark Invest.
Those purchases were spread over five of Ark Invest's exchange-traded funds -- the vehicles Wood uses to invest in disruptive technologies, fintech, artificial intelligence, space, and robotics. Notably, those buys increased in size each time.
In all, Wood has increased Ark Invest's total stake in Nvidia by a whopping 24%, bringing its investment in the GPU leader to more than $303.6 million.
Ark Exchange Traded Fund
Nvidia Shares Held
Market Value of Nvidia Stake
Weighting in Fund
Ark Innovation ETF
639,590
$139,142,804
2.20%
Ark Next Generation Internet ETF
183,964
$40,021,368
2.28%
Ark Autonomous Technology & Robotics ETF
329,001
$71,574,167
3.52%
Ark Fintech Innovation ETF
101,153
$22,005,835
2.89%
Ark Space & Defense Innovation ETF
141,864
$30,862,513
3.62%
Data source: Ark Invest. Data as of Aug. 11, 2026.
Why is Wood buying Nvidia stock?
Nvidia has been a high-flying stock for the last several years, but it has shown some weakness lately. Shares are up only 2% over the last three months as the semiconductor sector has come under pressure over fears that the AI infrastructure build-out could lead to a bubble and that a shortage of memory and data storage chips could throttle the growth of the entire industry.
But spending on new data centers remains strong -- hyperscalers Amazon, Meta Platforms, Microsoft, and Alphabet have indicated they will spend more than $730 billion combined on AI infrastructure this year, and they expect that number to increase next year.
Ark Invest CEO Cathie Wood. Image source: Getty Images.
On top of that, Nvidia has partnered with several major Wall Street financial institutions, including Apollo Global Management, BlackRock, Blackstone, Goldman Sachs, KKR, and Brookfield, to raise $500 billion in third-party capital for AI infrastructure serving frontier AI labs, enterprise firms, and AI cloud companies.
Should you follow Wood's lead here?
Every indication is that Nvidia is set to report another monster quarter. Revenue in its fiscal 2027 first quarter (which ended April 26) was $81.61 billion, up 85% from a year earlier. Nvidia's projected fiscal 2027 Q2 revenue is $91 billion, a 94% gain from a year ago, when revenue was $46.7 billion. Analysts surveyed by Yahoo! Finance are expecting even more, with the consensus revenue estimate of $91.85 billion, up 96.5% from a year ago.
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Nvidia's data center business continues to drive its revenue and profits, accounting for more than 90% of revenue. With hyperscalers continuing to invest in AI infrastructure and Wall Street firms lining up to make another $500 billion available, Nvidia is well-positioned to deliver a good quarter and see another bump in its stock price.
Against that backdrop, Wood's inclination to lean in on Nvidia stock before earnings makes a lot of sense.
Patrick Sanders has positions in Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, BlackRock, Blackstone, Brookfield Corporation, Goldman Sachs Group, KKR, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
Daily Nebius Group N.V. Nebius could lock in every megawatt of its 2027 supply today on one-to-three-year contracts. Instead it is holding capacity back for shorter deals at $40 million to $50 million per megawatt, roughly double the mid-term rate. Burry added to the short after the earnings rally because those premium rates depend on scarcity that is not permanent. More data center capacity is coming online and those short-term contracts roll off into a market with more supply. If the premium compresses, the revenue growth the stock is trading on compresses with it.
$800 Billion in Capex and Nvidia’s $500 Billion Circle Microsoft, Amazon, Alphabet and Meta are on track to spend close to $800 billion in capex this year. Oracle has joined the race with less cushion and more exposure to the AI cloud story. Microsoft and Amazon can absorb a long spending cycle on the strength of their core businesses. Oracle cannot carry mistakes as long. Some of them are stretching server depreciation estimates to five and a half years, which changes the accounting but does not change what happens to the hardware when a faster chip ships nine months later.
Nvidia has partnerships with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR aimed at mobilizing more than $500 billion for AI infrastructure. Burry sees the money moving in a circle. The financing buys GPUs. The GPU sales support Nvidia’s margins. The final owner of the data center still has to fill it and make the utilization work. The financing moved the risk off Nvidia’s balance sheet. It landed on someone else’s.
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Axios Senior AI Reporter Madison Mills laid out an investor debate on CNBC on Thursday, August 13, framing NVIDIA’s newly announced $500 billion financing agreement with top Wall Street firms as either the largest asset-class creation event of the AI era or the most sophisticated circular-financing structure yet. Her reporting places NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) at the center of a market that is racing to securitize compute itself.
Mills said investors she spoke with believe the $500 billion package isn’t big enough yet: “Some of them say the $500 billion isn’t even enough. It’s going to put online about ten gigawatts, which is what we’re expected to need next year alone,” she told CNBC.
Nvidia reported Q1 FY2027 revenue of $81.615 billion, Data Center revenue of $75.25 billion (up 92% year over year), and disclosed total supply-related commitments of $119.0 billion. CEO Jensen Huang called the current buildout “the largest infrastructure expansion in human history.”
Wall Street Is Turning Compute Into a New Asset Class Mills discussed how compute is quickly becoming a tradable asset. “A year ago I covered this startup… which is these 20-somethings in an apartment who are doing $1 billion worth of GPU trading from this small townhouse in the course of just a month. And we know that CME, ICE, all these companies are trying to get in on GPU futures spot trading. OpenAI is hiring finance team leaders that are going to work on GPU securities,” she said.
CME Group (NASDAQ:CME) CEO Terry Duffy specifically flagged “compute futures” alongside Single-Stock futures and Treasury clearing as an innovation area in the company’s Q2 2026 remarks. CME posted Q2 EPS of $2.99 on revenue of $1.71 billion, with record market data revenue of $238 million, up 20% year over year.
Intercontinental Exchange (NYSE:ICE) delivered adjusted EPS of $1.90 on $2.67 billion in revenue, with CEO Jeff Sprecher noting that “markets become more global, digital and continuous.”
The pitch to investors is that securitizing GPU capacity effectively turns compute into a tradable commodity comparable to crude or power spreads, and would spread financing risk across pension funds, retirement accounts, and hedge funds.
The Bear Case: What Happens if Better Models Need Less Compute? Mills laid out the counterargument that could crush compute futures while the asset class is still in its infancy: “One investor who I talked to yesterday told me he’s worried about something called diminishing model returns. This idea is that we already have these really amazing models. And it’s not clear that the AI labs are going to need as much compute going forward to train better and better models,“ she said. If frontier model improvements plateau, the collateral value of leading-edge chips could compress well before the debt underlying compute securities matures.
She pointed to a live example. “Look at what’s happening with Google. They’ve already decided to kind of, for better or worse, roll back their AI ambitions because they went free cash flow negative,“ Mills said. A hyperscaler pulling back on capex is the kind of signal that would erode long-dated compute demand assumptions.
What the Market Is Pricing The market clearly believes the demand for AI compute is real. The larger unanswered question is whether NVIDIA and Wall Street are creating a durable new asset class or using increasingly complex financing structures to sustain a buildout whose economics remain unproven. Either way, some experts expect that even a $500 billion financing package may cover only a fraction of what the AI industry will need.
Contact [email protected] for any questions or corrections.
Trading halts on South Korea's stock exchange or flash crashes across Japanese benchmark indices frequently send panic signals through global technology markets. Automated algorithms respond instantly, dumping equities tied to the global electronics hardware supply chain. Yet these intense liquidations rarely stem from actual declines in end-market demand for artificial intelligence (AI), advanced semiconductors, or enterprise quantum hardware.
Instead, these market shocks arise from localized financial mechanics and currency leverage. South Korea carries significant retail margin debt concentrated in memory chipmakers, rendering local indices vulnerable to circuit-breaker halts when short-term sentiment shifts. In Japan, central bank interest rate adjustments can spark sudden unwinds of the Japanese Yen carry trade, forcing offshore funds to liquidate holdings to settle currency loans.
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For investors, these overseas panics represent short-term liquidity squeezes rather than fundamental corporate failures. Hyperscaler data center buildouts do not pause because foreign exchange rates fluctuate in Tokyo or margin calls hit accounts in Seoul. When capital flees regional turbulence, it seeks refuge in cash-rich balance sheets, setting up strategic entry points into world-class businesses.
Tokyo's Yen Squeeze and Seoul's Margin TrapCapitalizing on international market disruptions requires separating mechanical trading noise from operational business performance. The physical supply chain for advanced computing is tightly concentrated in Asia. South Korea manufactures a major portion of the world's High Bandwidth Memory, while Japan supplies essential silicon wafers, specialty chemicals, and automated testing machinery.
Because these regional markets form the physical backbone of advanced computing, localized financial distress quickly bleeds into global asset prices. When Korean memory producers encounter forced selling, algorithms liquidate US memory equities in lockstep. Likewise, when Japanese equipment makers experience currency-driven liquidations, US technology leaders that depend on their tools experience temporary price declines.
This dynamic creates a distinct valuation gap. While equity prices retreat during a deleveraging cascade, fundamental supply and demand ratios remain firm. Corporate commitments to construct infrastructure for generative intelligence, cloud networks, and edge computing operate on multi-year planning horizons.
Orders for advanced microchips and capital equipment are secured months or years ahead under fixed contracts. Recognizing that a price dip stems from forced liquidation rather than canceled purchase orders allows investors to act with strategic clarity.
Shopping the Asian Fire Sale for 5 GiantsWhen regional currency swings and trading halts depress global hardware valuations, broad market panics often treat premier technology leaders as collateral damage. These temporary liquidity dislocations create rare valuation gaps, giving disciplined investors a chance to partner with world-class businesses at reduced prices.
Five structural market leaders stand out for their pristine balance sheets, expanding profit margins, and indispensable positions across the artificial intelligence, semiconductor, and quantum infrastructure landscapes.
NVIDIA Corporation: Buying the AI King on Asian DipsNVIDIA Today
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As the leading provider of graphics processing units for artificial intelligence workloads, NVIDIA Corporation NASDAQ: NVDA sits at the center of modern data center infrastructure. The company maintains a healthy net profit margin of around 63% and a return on equity approaching 97%.
Despite occasional supply chain scares originating in Asian assembly plants, enterprise appetite for graphics processors remains robust. To support shareholder value during market swings, management authorized an $80 billion share repurchase program. When international market panics drag the stock lower, investors gain a discounted entry point into a cash-generating enterprise.
Micron Technology, Inc.: Sold-Out Capacity on SaleMicron Technology Today
MU
Micron Technology
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As the primary US-based manufacturer of memory and storage solutions, Micron Technology, Inc. NASDAQ: MU frequently trades as a liquid proxy for South Korean memory dynamics. Memory production is a concentrated global triopoly, and high-performance memory is required for complex computing workloads.
Micron recently reported annual sales reaching about $37.38 billion, with quarterly revenue expanding over 345% year-over-year. High Bandwidth Memory capacity is effectively sold out through calendar year 2027 under fixed contracts. Trading at a forward price-to-earnings ratio of around 12.5x, the manufacturer offers an attractive valuation whenever South Korean halts trigger automated selling.
Advantest Corporation: Japanese Testing Toll Road on SaleAdvantest Today
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Headquartered in Japan, Advantest Corporation OTCMKTS: ATEYY holds a dominant global market share of over 50% in automated test equipment for advanced microchips. As semiconductor architectures grow more complex, chipmakers cannot ship components without validation from these testing systems.
Advantest operates with a net margin of roughly 37% and a return on equity of 64%. Because its primary listing resides on the Tokyo exchange, American Depositary Receipts of the business get caught in Japanese Yen currency liquidations. These exchange-rate sell-offs allow investors to acquire a high-margin equipment supplier at a temporary discount.
Arm Holdings: Dominance Untouched by NoiseARM Today
$283.70 +11.83 (+4.35%)
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Arm Holdings plc NASDAQ: ARM designs the energy-efficient processor architectures that power nearly all modern smartphones and a growing share of cloud servers. Operating an intellectual property licensing model, the organization collects high-margin royalties without incurring direct factory capital expenditures.
Quarterly revenue recently rose more than 22% year-over-year to approximately $1.29 billion. Because Japanese conglomerate SoftBank Group maintains majority ownership, equity prices frequently experience short-term swings tied to Japanese leverage. These pullbacks separate the stock price from its expanding presence in server data centers and edge computing.
International Business Machines Corp.: Quantum Hardware at Value PricingInternational Business Machines Today
IBM
International Business Machines
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For investors seeking balance sheet resilience alongside cutting-edge technology exposure, International Business Machines Corp. NYSE: IBM provides a stable foundation. The business recently established a major strategic partnership with OpenAI to integrate advanced generative models across its consulting network, while expanding commercial quantum computing development through its Heron processor line.
IBM trades at a reasonable forward price-to-earnings multiple of around 19x and offers a steady dividend yield of approximately 2.86%. During aggressive tech liquidations, the business functions as an institutional capital harbor, combining downside protection with long-term exposure to software and quantum innovation.
The Contagion Rule: Timing Asian Market BottomsCapitalizing on foreign market volatility requires a structured execution framework rather than emotional reactions. When overseas exchanges experience circuit-breaker halts or currency-driven flash crashes, sentiment drops to extreme lows before fundamental earnings data catches up.
A practical approach is the 48-Hour Contagion Rule. Allowing two full trading sessions after an overseas market crash gives margin calls and forced liquidations time to process through clearinghouses. This cooling-off window helps prevent investors from buying into an ongoing liquidation cascade. Monitoring foreign exchange pairs, such as the US Dollar against the Japanese Yen, also provides clarity on whether a sell-off is driven by currency unwinds or changing commercial conditions.
Rather than attempting to pinpoint the exact market floor, investors may consider scaling into positions using dollar-cost averaging across three distinct tranches. This systematic strategy manages timing risk while building exposure to world-class balance sheets. Investors seeking to expand their technology allocation may want to add these five structural leaders to their watchlists, ready to act when foreign market headlines open temporary valuation windows.
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On paper, the technicals for the stock look positive. After closing above $224 on Wednesday, the share price is sitting comfortably above all of its 20-day, 50-day, and 200-day moving averages.
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Corporate America is expected to pour some $770 billion into AI infrastructure in 2026, and the credit markets are starting to ask a pointed question: whose money is actually paying for it? The Bank for International Settlements addressed exactly that in its late-June Annual Report, warning that hyperscaler debt tied to AI buildouts is growing faster than the balance sheets carrying it.
That’s the backdrop for Michael Burry’s latest post on X, where the investor who shorted subprime mortgages before the 2008 crash shared a Bloomberg diagram tracing how AI revenue keeps showing up strong even as free cash flow turns negative. His conclusion: the money is circling, not multiplying.
The Circular Financing Loop, Mapped in Dollars
The Bloomberg diagram Burry shared traces roughly $46 billion in direct equity stakes and $879 billion in multi-year purchase commitments moving between Microsoft (NASDAQ:MSFT | MSFT Price Prediction), Oracle (NYSE:ORCL), Amazon (NASDAQ:AMZN), Google, Meta Platforms (NASDAQ:META), OpenAI, Anthropic, xAI, CoreWeave (NASDAQ:CRWV), Nvidia (NASDAQ:NVDA), and Advanced Micro Devices (NASDAQ:AMD).
Oracle alone committed $300 billion in purchases tied to OpenAI. Microsoft committed roughly $250 billion of its own. OpenAI then turned around and committed $90 billion to AMD while also taking a direct equity stake in Nvidia.
Nvidia sits dead center of the web at a $5.4 trillion valuation today. Every company on the list has lines running to Nvidia, either as an investor, a customer, or both. That’s not necessarily fraud — Jensen Huang has publicly called the circular financing label “ridiculous” — but it does mean the same dollar can show up as revenue at more than one stop on the chain.
Anthropic and OpenAI combined are worth roughly $1.8 trillion despite neither being profitable, and both depend on continued hyperscaler funding to keep buying the chips that justify those valuations.
The mechanics are simple, even if the spreadsheet isn’t: a hyperscaler funds an AI lab, the lab spends that money on compute from the hyperscaler, and the hyperscaler books the spending as revenue. Run that loop enough times and top-line growth stops telling you much about actual customer demand.
The Credit Market Is Already Pricing This In
The BIS estimates the five largest hyperscalers are carrying roughly $1.65 trillion in off-balance-sheet debt through special purpose vehicles and off-balance sheet arrangements, exceeding the $1.35 trillion they report directly.
That gap matters because SPV debt doesn’t show up in the leverage ratios investors typically screen for. It shows up instead in credit default swaps, and Nvidia’s five-year CDS spread has roughly doubled over the past two months, according to data Burry cited in his post.
Not every investor reads this as a red flag. Chris Camillo, the founder and CEO of TickerTags, a social data intelligence company, has argued the circular financing The money loop works fine as long as AI delivers enough actual value to justify the spending — and to be fair, Nvidia still generated close to $48 billion in free cash flow in a recent quarter, real cash, not accounting fiction.
That’s the counterargument in a nutshell: the vendor financing isn’t automatically a problem if the underlying product keeps selling itself.
Key Takeaway
In short, the concern isn’t that AI companies are lying about revenue — it’s that the revenue is increasingly self-referential, and the debt backing it is increasingly invisible on a standard balance sheet.
Investors holding Nvidia, Microsoft, or Oracle don’t need to panic-sell on a single post by Burry. But they should watch two numbers going forward: hyperscaler off-balance-sheet debt disclosures in coming 10-Qs, and Nvidia’s CDS spread as a real-time gauge of how credit markets are pricing this risk.
Ultimately, a portfolio concentrated in one end of this loop is making a bet on the whole web holding together — and that’s a bet worth sizing carefully, not avoiding entirely.
Contact [email protected] for any questions or corrections.
In late July, Sam Altman went to Washington, D.C., to brief lawmakers on OpenAI's next-frontier model after one of its systems autonomously hacked another artificial intelligence (AI) platform, Hugging Face, and then pivoted to attack a customer's cloud account. Coming out of those meetings, he told reporters he supports slowing the pace of AI development, said he had seen the draft framework for implementing President Donald Trump's AI executive order, and confirmed he would meet with White House chief of staff Susie Wiles to discuss how to vet newer AI models before release.
That is a long way from the early days of move-fast-and-ship models, and it reflects a real shift in how OpenAI thinks about risk.
Image source: Getty Images.
For AI-focused companies, this points to a future where model releases are less about racing the calendar and more about clearing regulatory and safety hurdles. The White House framework calls on firms to submit advanced models to the government for testing before launch, and bills like the AI Kill Switch Act would give regulators the power to order a slowdown or shutdown if a system crosses certain lines. That means AI stocks are no longer just about who has the best technology. They are also about who can invest in governance, security, and compliance without choking off their own innovation.
What does this mean for AI investors? Paradoxically, that kind of environment often favors the largest players. If you own names like Microsoft (MSFT +0.69%), Alphabet (GOOG +0.25%) (GOOGL +0.42%), or Nvidia (NVDA +0.19%), heavier vetting and stricter safeguards might actually deepen their moats. They already spend billions on security, auditing, and infrastructure, and can absorb the costs of slower deployment and more testing. Smaller pure-play AI start-ups, on the other hand, may find that the bar for releasing a frontier model is suddenly beyond their reach, especially if regulators start expecting third-party red-teaming and formal safety reviews.
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Altman's comments also matter for stock valuation. When the person running one of the most important AI labs says the industry should slow down, it means investors should rethink the more aggressive growth assumptions baked into some AI stocks. The story is shifting from infinite models at infinite speed to earn the right to innovate by proving you can control what you build. If you are holding or considering AI names, it is worth asking not just how fast they can ship the next model, but how prepared they are for a world where regulators and even the industry's own leaders are asking them to tap the brakes.
I do not think this means you should rush to dump any AI stocks you own, but it is a good reminder to stay in touch with how the rules and the tone around AI are evolving, because those shifts will shape which companies can keep compounding and which ones get left behind.
Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
Nvidia announced this week that Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR were willing to commit up to $500 billion to build AI data centers. That eye-popping figure got a lot of the attention, but the bigger story is Nvidia’s effort to create a secondary market for aging GPUs.
To convince those big-name financial companies, Nvidia has agreed to guarantee, with its own money, that its chips used as collateral in these deals will retain their value.
Many have now commented on how unusual, smart, and dangerous this plan is. It is all of those things. The bond markets got so spooked that Nvidia CEO Jensen Huang took to X and business TV to better explain how Nvidia’s risk would be limited.
But underneath the financial maneuvering to fund AI data centers (and keep revenue for Nvidia flowing), is something, perhaps, far more interesting for startups and enterprises: Huang wants to ensure an ecosystem of used AI hardware flourishes, helping sustain demand for Nvidia hardware as it ages.
Specifically, Nvidia is promising that if GPUs used as collateral don’t retain their value as expected, the company will cover up to 25% of the difference. So, if a data center owner defaults on a loan and the lender must liquidate, but the chips can’t command the price the books say they should, Nvidia will chip in.
The dangerous part for Nvidia is that this creates something financiers call “wrong way” risk. That is, Nvidia’s obligations will grow as demand weakens. Should that happen, its revenues will likely be squeezed as well.
Still, the scheme is deliberately unlike the comparison to Lucent Technologies that some have been making. Lucent was the telecommunications equipment provider that rose and crashed with the dotcom bubble after lending its customers money to buy its wares.
The Lucent comparison is a shadow over Nvidia, Huang knows. And not an unfair one. Nvidia definitely has committed billions toward those who buy its chips, including frontier AI labs OpenAI and Anthropic, neoclouds like CoreWeave (the originator of using Nvidia chips as collateral), as well as Nebius, Firmus, and Lambda. And it has been working on another $750 billion worth of circular deals this summer, Bloomberg has calculated.
“Is this circular financing?” Huang wrote on X about the new scheme. “This initiative is designed to address that concern. We are bringing independent, long-term institutional capital into the AI infrastructure market.”
That’s true. Unlike Lucent, Nvidia is getting others to shoulder the bulk of the capital and risk, merely by agreeing to protect a portion of its chips’ value in the future.
Should this plan work, Nvidia will have found new sources of money for AI data center builds, after many of the traditional methods have begun to wear thin. For instance, some of the hyperscalers have already taken on a lot of debt (like Oracle), issued new tranches of equity (Google), and burned much cash (Meta).
The situation has become so dicey that Microsoft CEO Satya Nadella recently recommended the book “1873” during his latest earnings call. It’s about the railroad-era financial engineering that crashed the nation’s economy.
The risk is that today’s AI boom, where demand far outstrips capacity, doesn’t continue for much longer. Rather than being in the early innings, what if enterprises and consumers temper AI usage? Or new technologies come along to make existing infrastructure more effective and/or all of today’s AI infrastructure obsolete?
Then, like so many buggy whips in the face of automobiles (to paraphrase Danny Devito’s Lawrence Garfield), demand dries up and everything crashes.
Yet, Huang is arguing that won’t happen by selling a vision of AI as a long-term “investable infrastructure,” as he describes it. That makes his AI servers, which he calls “AI factories” akin to railroads or airlines rather than quickly depreciating assets like PCs.
“When needs change, the factory can be used by another customer, another cloud or another operator. This broad ecosystem gives NVIDIA compute a deep market of potential users and offtakers, helping protect residual value,” he promised.
In that future, Nvidia cares as much about aging architecture as it does the new chips. And perhaps startups, enterprises, and even researchers will tap into a broader variety of hardware, each tuned to different AI needs, just like they are beginning to pick affordable open-weight models alongside the frontier choices.
As the king of AI, Nvidia has the power, and the window of opportunity, to make that happen.
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Nvidia is playing many parts in the AI gold rush, a top business guru says By You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Nvidia CEO Jensen Huang. Bloomberg/Bloomberg via Getty Images Nvidia is playing many positions on the AI pitch, a leading business professor says.
"If AI is a modern-day gold rush, then Nvidia is not only selling the picks; they're also shareholders in the mines themselves, and now they're becoming the bank that's lending to all the prospectors," Rob Lalka told Business Insider in an email.
Lalka, a business professor at Tulane University and the author of "The Venture Alchemists: How Big Tech Turned Profits into Power," described Nvidia's meteoric rise over the past two decades, from making graphics cards for video games to becoming the world's most valuable company and the linchpin of the AI boom.
Nvidia has invested or committed tens of billions of dollars to OpenAI, Anthropic, and xAI, and has equity stakes in scores of AI startups that buy its hardware, Lalka said.
The chipmaker also holds stakes in data center specialists that need its processors, such as CoreWeave and Nebius, he continued.
Lalka highlighted Nvidia's latest financing agreement with some of Wall Street's biggest names, including Apollo and KKR, to raise $500 billion for AI infrastructure built around Nvidia chips.
Nvidia did not immediately respond to a request for comment.
Nvidia's web of deals has made it the beating heart of the AI boom, as it sells the semiconductors that power the technology, and invests in and finances the array of companies buying its chips.
Several high-profile commentators have warned that the AI ecosystem's reliance on Nvidia could cause problems.
Mark Cuban, the tech billionaire of "Shark Tank" fame, recently posted on X that Nvidia is playing a similar role to the IPO market during the dot-com boom as it's "funding everyone and anyone."
"One breakthrough in another chip provider, or a misstep, and it all could crumble," Cuban added. "It's truly scary."
Michael Burry, the investor of "The Big Short" fame who called the subprime mortgage crisis, has used the same analogy as Lalka.
He wrote in November that, like Cisco during the dot-com boom, Nvidia was "at the center of it all, with the picks and shovels for all and the expansive vision to go with it."
Burry recently posted on X that Nvidia is "overreaching" as it hustles to push circular spending to "biblical proportions."
Nvidia CEO Jensen Huang has acknowledged just how reliant the AI boom and the global economy are on his company's success. Describing online memes on the topic in November, he said: "We're basically holding the planet together — and it's not untrue."
Nvidia has broadly met sky-high expectations so far. It grew revenue by 85% year-on-year to about $82 billion in the three months ended April 26, fueling a 211% surge in net income to $58 billion.
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Theron Mohamed You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Theron Mohamed is a London-based correspondent on the International team at Business Insider. His coverage spans finance, investing, wealth, markets, and the economy.Theron joined BI in 2019 as a reporter at Markets Insider and rose to the rank of correspondent before moving to the Trending team then the broader International team. He previously covered tech, media, and telecom stocks for Investors Chronicle magazine and had a brief stint on the Financial Times' Data team. He interned at the Wall Street Journal in New York where he primarily wrote for Heard on the Street.Theron has freelanced for The Independent, The Telegraph, WIRED, and several smaller publications. He holds an undergraduate degree in geography from the London School of Economics, and a master's degree in journalism from Columbia University.Theron often covers Warren Buffett, Michael Burry, and other elite investors. He also writes about the world's wealthiest people and shares financial advice from all manner of rich and successful people.Email Theron at [email protected] and follow him on X @theron_mohamed.
Jim Cramer devoted a segment of Mad Money on August 12 to a valuation analogy that cuts to the heart of the debate over AI infrastructure financing. “These chips aren’t like cars that lose half their value the moment they drop off a lot. They’re more like fine jewelry,” he said of NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) GPUs, adding that the Compute Unified Device Architecture (CUDA) software ecosystem lets “9 year old chips keep their value, even appreciating”.
The residual-value question is no longer academic. Wall Street is lining up hundreds of billions of dollars in AI compute financing whose economics depend partly on GPUs retaining meaningful value years after installation. Cramer’s jewelry framing maps directly onto that collateral debate.
The Numbers Behind the Jewelry Thesis Nvidia’s most recent quarter provides quantitative backing for the pricing power argument. In Q1 FY2027, reported May 20, 2026, revenue reached $81.615 billion, up 85.23% year over year, with non-GAAP diluted EPS of $1.87 against a $1.7738 consensus. Non-GAAP gross margin landed at 75.0%, and management guided Q2 to $91.0 billion in revenue at the same margin, with any China Data Center compute revenue excluded from the outlook. Nvidia details the quarter in its Q1 FY27 8-K press release.
Margins of that scale, sustained across an $81.6 billion quarter, describe a scarce discretionary product with unusual pricing power. The Data Center segment alone generated $75.246 billion, up 92%, with networking revenue tripling to $14.8 billion as InfiniBand, NVLink, and Spectrum-X get pulled through every rack.
Why Residual Value Matters for AI Financing Cramer’s analysis lands as the plumbing of AI infrastructure financing gets built out in public. Reported deal flow includes Nvidia’s $500 billion AI compute financing partnership with Goldman Sachs and BlackRock, a new CME Group GPU futures product launching in October, and a fresh $89.9 billion NVDA position opened by JPMorgan Chase. Each structure asks lenders and rating agencies to underwrite the residual value of the underlying chips as collateral.
The CUDA software moat is what gives the jewelry framing its financial teeth. Because customer workloads are compiled against Nvidia’s CUDA-X stack, plus newer Dynamo inference software, an installed Hopper or Blackwell GPU keeps earning revenue years after newer silicon ships, defending the collateral value structured finance desks are counting on. Nvidia has already locked in $119.0 billion in total supply commitments and $30.0 billion in multi-year cloud service commitments, evidence that hyperscalers are pre-buying capacity years out.
What Investors Should Watch Next Prediction markets echo the confidence. Polymarket traders assign a 95.6% probability to Q2 Data Center revenue exceeding $80 billion and a 91.5% probability that non-GAAP gross margin lands in the 74% to 76% range. The composite sentiment score sits at 62.09, up 6.44 points over seven days.
Nvidia shares last traded at $223.80, up 20.3% year to date and 23.2% over one year. Analyst consensus sits at $302.83, with 58 Buy, 2 Hold, and 1 Sell ratings. Cramer’s jewelry line matters because it names the single assumption sitting underneath the AI capex cycle.
If GPUs retain their value across generations, the securitization stack works and the $5.42 trillion valuation is defensible. If residual prices sag once Vera Rubin ships with its promised order-of-magnitude token cost improvement, the financing math tightens quickly. Nvidia’s Q2 report, expected around August 26, is the next sign post that either confirms the jewelry thesis or forces a remodel.
Contact [email protected] for any questions or corrections.
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The AI boom is changing an old rule of technology investing: hardware is supposed to get cheaper, less useful, and eventually worthless. That assumption helped investors model data center equipment as a wasting asset with a five- or six-year life.
However, the market for Nvidia (NASDAQ:NVDA | NVDA Price Prediction) GPUs is starting to look different. Rental prices remain elevated, older chips are finding long-term customers, and Wall Street is building financing markets around their residual value. That creates a powerful re-rating opportunity for companies built around Nvidia hardware. It also creates a new risk: if alternative AI chips break Nvidia’s scarcity advantage, the entire asset-class thesis could unwind faster than investors expect.
GPUs Are Starting To Behave Like Assets
Silicon Data tracks GPU rental pricing across the AI-compute market and publishes daily benchmarks for A100, H100, B200, and Advanced Micro Devices‘ (NASDAQ:AMD) MI300X. Its data show that the traditional depreciation curve for Nvidia hardware has become less predictable, while newer generations have maintained pricing strength.
That matters because the neocloud business was built around depreciation. Buy a GPU, rent it out for several years, depreciate it toward zero, and replace it with something faster.
But an A100 launched in May 2020 is still generating meaningful rental economics in 2026. CoreWeave (NASDAQ:CRWV) reported $104.2 billion in backlog in its second-quarter results, followed by more than $25 billion of additional customer commitments — putting contracted demand above $129 billion.
If old Nvidia GPUs can keep producing revenue deep into their supposed retirement years, the accounting assumption and the economic reality start pulling apart.
Silicon is no longer a wasting asset—it's the new financial plumbing. Discover how Nvidia is turning 'old' hardware into a $500 billion cash-flow machine.
Nvidia Is Helping Wall Street Finance The Bet
Nvidia is not merely selling chips into this market. It is helping create the financial plumbing around them.
The company announced partnerships with major financial firms to mobilize more than $500 billion of third-party capital for AI infrastructure. The structure can include Nvidia guarantees covering up to 25% of certain projects’ residual value.
Then comes another important development. CME Group and Silicon Data plan to launch compute futures, pending regulatory approval. The contracts are designed to let AI builders and cloud providers hedge compute-price risk.
That is more important than it sounds. Once a cash flow can be hedged, lenders can underwrite it with greater confidence. Once lenders become comfortable, capital gets cheaper, and cheaper capital can push the value of the underlying assets higher.
The Nvidia Monopoly Is The Weak Link
Granted, today’s rental economics are reflecting a supply squeeze. More GPUs eventually mean more competition and potentially lower rental prices. But the bigger threat is not necessarily more Nvidia GPUs — it is fewer Nvidia GPUs being required.
AMD’s MI300X already has measurable rental activity in Silicon Data’s benchmarks, while Amazon (NASDAQ:AMZN) is moving its Trainium strategy toward a broader market. CEO Andy Jassy said in June Amazon’s chips business had surpassed a $20 billion annual revenue run rate and estimated it could approach $50 billion if operated as a standalone business selling to AWS and outside customers. He also said Amazon could eventually sell Trainium racks to third parties.
That gives AI customers another way to satisfy training and inference demand without renting Nvidia GPUs.
And that is the illusion Wall Street should worry about. Nvidia GPUs may be becoming durable, financeable cash-flow assets — but the evidence is still overwhelmingly Nvidia-specific.
Key Takeaway
The asset-class thesis is real enough to matter, and CoreWeave may be one of the companies that gets re-rated as investors recognize that GPU depreciation no longer tells the whole economic story.
But investors should not confuse Nvidia’s current dominance with permanent scarcity. AMD’s expanding footprint, Amazon’s potential Trainium sales, and other custom accelerators such as Google’s TPUs create a release valve. If alternative silicon absorbs enough AI workloads, Nvidia’s residual values and rental rates could fall together.
For now, the evidence favors Nvidia and Nvidia-heavy infrastructure providers. But the biggest risk to the thesis is becoming clear: GPUs can behave like forever cash-flow machines only if customers keep wanting Nvidia’s GPUs.
Contact [email protected] for any questions or corrections.
Eastern Bank raised its position in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 1.8% in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 1,574,822 shares of the computer hardware maker’s stock after acquiring an additional 27,545 shares during the period. NVIDIA makes up 4.8% of Eastern Bank’s portfolio, making the stock its 2nd biggest position. Eastern Bank’s holdings in NVIDIA were worth $315,106,000 at the end of the most recent quarter.
Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Norges Bank acquired a new stake in NVIDIA during the 4th quarter worth approximately $62,244,133,000. J. Stern & Co. LLP lifted its position in NVIDIA by 13,709.1% during the fourth 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 buying an additional 124,849,603 shares in the last quarter. Cardano Risk Management B.V. grew its stake in NVIDIA by 896.4% during the fourth quarter. Cardano Risk Management B.V. now owns 78,123,960 shares of the computer hardware maker’s stock worth $14,570,119,000 after buying an additional 70,283,539 shares during the period. Capital Research Global Investors grew its stake in NVIDIA by 16.1% during the third quarter. Capital Research Global Investors now owns 165,377,852 shares of the computer hardware maker’s stock worth $30,855,564,000 after buying an additional 22,896,705 shares during the period. Finally, Laurel Wealth Advisors LLC increased its position in shares of NVIDIA by 15,496.1% in the second quarter. Laurel Wealth Advisors LLC now owns 21,865,525 shares of the computer hardware maker’s stock worth $3,454,534,000 after acquiring an additional 21,725,326 shares in the last quarter. 65.27% of the stock is currently owned by institutional investors and hedge funds.
NVIDIA Trading Up 3.0% NASDAQ NVDA opened at $224.09 on Thursday. The company has a market capitalization of $5.42 trillion, a price-to-earnings ratio of 34.32, a price-to-earnings-growth ratio of 0.42 and a beta of 2.23. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85. NVIDIA Corporation has a 12 month low of $164.07 and a 12 month high of $236.54. The company’s fifty day moving average price is $205.61 and its two-hundred day moving average price is $198.06.
NVIDIA (NASDAQ:NVDA – Get Free Report) last released its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, topping the consensus estimate of $1.76 by $0.11. The company had revenue of $81.61 billion during the quarter, compared to the consensus estimate of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The company’s revenue was up 85.2% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.81 EPS. As a group, research analysts predict that NVIDIA Corporation will post 8.79 earnings per share for the current fiscal year.
NVIDIA announced that its board has authorized a stock repurchase plan on Wednesday, May 20th that allows the company to buyback $80.00 billion in shares. This buyback authorization allows the computer hardware maker to reacquire up to 1.5% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s board of directors believes its shares are undervalued.
NVIDIA Increases Dividend The company also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Thursday, June 4th were issued a $0.25 dividend. This is an increase from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 annualized dividend and a yield of 0.4%. The ex-dividend date of this dividend was Thursday, June 4th. NVIDIA’s dividend payout ratio is presently 15.31%.
Insider Activity at NVIDIA In other news, Director Mark A. Stevens sold 885,000 shares of NVIDIA stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $210.17, for a total value of $186,000,450.00. Following the completion of the transaction, the director owned 5,207,271 shares in the company, valued at approximately $1,094,412,146.07. This trade represents a 14.53% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Stephen C. Neal sold 15,500 shares of the business’s stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total value of $3,343,815.00. Following the completion of the sale, the director owned 116,135 shares of the company’s stock, valued at $25,053,803.55. This trade represents a 11.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 1,901,125 shares of company stock valued at $410,583,015 over the last three months. 3.94% of the stock is owned by insiders.
Trending Headlines about NVIDIA Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: $500 billion financing push reduces funding constraints: Bank of America said the initiative could ease financing risk by shifting much of the capital burden to Wall Street. The plan may make it easier for cloud providers and other customers to purchase NVIDIA hardware, networking products, and software, potentially extending the company’s revenue runway. BofA Says Nvidia’s $500 Billion Plan Eases Financing Risk Positive Sentiment: Continued demand for current and older GPUs: Susquehanna expects a continued GB300 ramp ahead of NVIDIA’s Vera Rubin platform release. Separately, CoreWeave’s CEO said the company is booking NVIDIA A100 systems through 2029 at full pricing, challenging concerns that older GPUs will rapidly lose value. Nvidia likely to see continued GB300 ramp ahead of Vera Rubin release Positive Sentiment: Analysts remain bullish: Recent coverage includes rating upgrades and price-target increases, with Wells Fargo maintaining an overweight rating and a $315 target. The positive views reflect expectations for sustained AI infrastructure spending and NVIDIA’s end-to-end hardware, networking, and software advantage. SA analyst upgrades and downgrades Positive Sentiment: Broader AI ecosystem momentum: IBM and Together AI agreed to a $240 million multiyear contract for an NVIDIA-powered inference cluster, while NVIDIA’s open-weight model efforts could strengthen its software ecosystem and CUDA platform. IBM and Together AI ink $240 million deal Negative Sentiment: Financing risks remain a key overhang: Critics question whether the arrangement amounts to circular financing because NVIDIA may provide residual-value support of up to 25% on some deals. Rapid GPU depreciation, potential oversupply, and lower-cost Chinese compute could weaken collateral values and expose NVIDIA to losses if customers struggle. Neutral Sentiment: Near-term test: Investors are likely to look to NVIDIA’s late-August earnings report for evidence that GB300 demand, expanding customer spending, and the financing strategy are translating into sustainable revenue and earnings growth. Wall Street Analyst Weigh In A number of equities analysts have recently commented on NVDA shares. Daiwa Securities Group raised their target price on shares of NVIDIA from $215.00 to $255.00 and gave the company an “outperform” rating in a research note on Friday, May 22nd. Sanford C. Bernstein reiterated a “buy” rating on shares of NVIDIA in a report on Monday, June 29th. HSBC reissued a “buy” rating and issued a $325.00 price objective (up from $295.00) on shares of NVIDIA in a research report on Tuesday, May 19th. Bank of America reaffirmed a “buy” rating and issued a $350.00 target price (up from $320.00) on shares of NVIDIA in a research report on Thursday, May 21st. Finally, Zacks Research upgraded NVIDIA from a “hold” rating to a “strong-buy” rating in a research note on Monday, July 20th. Three research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, NVIDIA currently has an average rating of “Buy” and a consensus target price of $305.94.
Get Our Latest Analysis on NVIDIA
About NVIDIA (Free Report)
NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.
The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.
Featured Articles Five stocks we like better than NVIDIA GE Vernova’s AI Power Boom Faces a Profit Test Cardinal Health Earnings: Can Perfection Get Priced In Twice? Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Legacy Jet Builders Stall While Embraer Accelerates to New Highs 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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FAS Wealth Partners Inc. grew its stake in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 6.7% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 157,406 shares of the computer hardware maker’s stock after purchasing an additional 9,833 shares during the quarter. NVIDIA comprises about 1.7% of FAS Wealth Partners Inc.’s holdings, making the stock its 12th biggest holding. FAS Wealth Partners Inc.’s holdings in NVIDIA were worth $27,452,000 as of its most recent filing with the Securities and Exchange Commission.
Other institutional investors and hedge funds have also recently modified their holdings of the company. Norges Bank bought a new stake in NVIDIA during the 4th quarter valued at approximately $62,244,133,000. J. Stern & Co. LLP grew its holdings in shares of NVIDIA by 13,709.1% during the 4th quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker’s stock worth $23,454,297,000 after acquiring an additional 124,849,603 shares during the period. Cardano Risk Management B.V. raised its position in shares of NVIDIA by 896.4% in the 4th quarter. Cardano Risk Management B.V. now owns 78,123,960 shares of the computer hardware maker’s stock worth $14,570,119,000 after acquiring an additional 70,283,539 shares in the last quarter. Capital Research Global Investors raised its position in shares of NVIDIA by 16.1% in the 3rd quarter. Capital Research Global Investors now owns 165,377,852 shares of the computer hardware maker’s stock worth $30,855,564,000 after acquiring an additional 22,896,705 shares in the last quarter. Finally, Laurel Wealth Advisors LLC lifted its stake in shares of NVIDIA by 15,496.1% in the 2nd quarter. Laurel Wealth Advisors LLC now owns 21,865,525 shares of the computer hardware maker’s stock valued at $3,454,534,000 after purchasing an additional 21,725,326 shares during the period. 65.27% of the stock is owned by hedge funds and other institutional investors.
Insider Buying and Selling at NVIDIA In related news, Director Mark A. Stevens sold 885,000 shares of the firm’s stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $210.17, for a total value of $186,000,450.00. Following the transaction, the director owned 5,207,271 shares of the company’s stock, valued at approximately $1,094,412,146.07. This trade represents a 14.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director John Dabiri sold 625 shares of the firm’s stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $214.00, for a total transaction of $133,750.00. Following the completion of the transaction, the director directly owned 14,163 shares in the company, valued at approximately $3,030,882. The trade was a 4.23% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,901,125 shares of company stock worth $410,583,015 in the last three months. 3.94% of the stock is currently owned by company insiders.
NVIDIA News Roundup Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: $500 billion financing push reduces funding constraints: Bank of America said the initiative could ease financing risk by shifting much of the capital burden to Wall Street. The plan may make it easier for cloud providers and other customers to purchase NVIDIA hardware, networking products, and software, potentially extending the company’s revenue runway. BofA Says Nvidia’s $500 Billion Plan Eases Financing Risk Positive Sentiment: Continued demand for current and older GPUs: Susquehanna expects a continued GB300 ramp ahead of NVIDIA’s Vera Rubin platform release. Separately, CoreWeave’s CEO said the company is booking NVIDIA A100 systems through 2029 at full pricing, challenging concerns that older GPUs will rapidly lose value. Nvidia likely to see continued GB300 ramp ahead of Vera Rubin release Positive Sentiment: Analysts remain bullish: Recent coverage includes rating upgrades and price-target increases, with Wells Fargo maintaining an overweight rating and a $315 target. The positive views reflect expectations for sustained AI infrastructure spending and NVIDIA’s end-to-end hardware, networking, and software advantage. SA analyst upgrades and downgrades Positive Sentiment: Broader AI ecosystem momentum: IBM and Together AI agreed to a $240 million multiyear contract for an NVIDIA-powered inference cluster, while NVIDIA’s open-weight model efforts could strengthen its software ecosystem and CUDA platform. IBM and Together AI ink $240 million deal Negative Sentiment: Financing risks remain a key overhang: Critics question whether the arrangement amounts to circular financing because NVIDIA may provide residual-value support of up to 25% on some deals. Rapid GPU depreciation, potential oversupply, and lower-cost Chinese compute could weaken collateral values and expose NVIDIA to losses if customers struggle. Neutral Sentiment: Near-term test: Investors are likely to look to NVIDIA’s late-August earnings report for evidence that GB300 demand, expanding customer spending, and the financing strategy are translating into sustainable revenue and earnings growth. NVIDIA Price Performance Shares of NVDA opened at $224.09 on Thursday. The firm has a fifty day simple moving average of $205.61 and a two-hundred day simple moving average of $198.06. The firm has a market cap of $5.42 trillion, a PE ratio of 34.32, a P/E/G ratio of 0.42 and a beta of 2.23. The company has a current ratio of 3.44, a quick ratio of 2.85 and a debt-to-equity ratio of 0.04. NVIDIA Corporation has a 1-year low of $164.07 and a 1-year high of $236.54.
NVIDIA (NASDAQ:NVDA – Get Free Report) last issued its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, topping the consensus estimate of $1.76 by $0.11. The company had revenue of $81.61 billion during the quarter, compared to analyst estimates of $78.42 billion. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.NVIDIA’s revenue was up 85.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.81 earnings per share. On average, equities analysts anticipate that NVIDIA Corporation will post 8.79 EPS for the current year.
NVIDIA declared that its Board of Directors has authorized a stock buyback program on Wednesday, May 20th that allows the company to buyback $80.00 billion in outstanding shares. This buyback authorization allows the computer hardware maker to reacquire up to 1.5% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s board of directors believes its stock is undervalued.
NVIDIA Increases Dividend The company also recently declared a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Thursday, June 4th were paid a dividend of $0.25 per share. The ex-dividend date was Thursday, June 4th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.4%. This is an increase from NVIDIA’s previous quarterly dividend of $0.01. NVIDIA’s dividend payout ratio is presently 15.31%.
Wall Street Analyst Weigh In Several equities research analysts recently weighed in on NVDA shares. Itau BBA Securities dropped their price target on NVIDIA from $256.00 to $218.00 in a research report on Wednesday, June 24th. CICC Research raised their price objective on NVIDIA from $240.60 to $268.30 and gave the company an “outperform” rating in a research report on Friday, May 22nd. Bank of America restated a “buy” rating and set a $350.00 target price (up from $320.00) on shares of NVIDIA in a report on Thursday, May 21st. Wedbush upped their target price on shares of NVIDIA from $300.00 to $330.00 and gave the stock an “outperform” rating in a research report on Thursday, May 21st. Finally, DZ Bank reiterated a “buy” rating on shares of NVIDIA in a research note on Thursday, May 21st. Three equities research analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and a consensus price target of $305.94.
View Our Latest Stock Analysis on NVIDIA
About NVIDIA (Free Report)
NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.
The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.
Read More Five stocks we like better than NVIDIA GE Vernova’s AI Power Boom Faces a Profit Test Cardinal Health Earnings: Can Perfection Get Priced In Twice? Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Legacy Jet Builders Stall While Embraer Accelerates to New Highs
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.
BSN CAPITAL PARTNERS Ltd lifted its position in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 42.7% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 3,575,500 shares of the computer hardware maker’s stock after acquiring an additional 1,069,073 shares during the quarter. NVIDIA accounts for approximately 28.5% of BSN CAPITAL PARTNERS Ltd’s investment portfolio, making the stock its largest holding. BSN CAPITAL PARTNERS Ltd’s holdings in NVIDIA were worth $644,484,000 at the end of the most recent quarter.
Other hedge funds also recently added to or reduced their stakes in the company. Lifetime Wealth Management P.C. bought a new position in shares of NVIDIA during the fourth quarter valued at approximately $26,000. Longview Financial Advisors Inc. purchased a new position in NVIDIA during the first quarter valued at approximately $27,000. Longfellow Investment Management Co. LLC raised its stake in NVIDIA by 47.9% in the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock worth $33,000 after buying an additional 67 shares in the last quarter. Phillip James Consulting Co. bought a new position in NVIDIA in the first quarter worth approximately $40,000. Finally, Spurstone Advisory Services LLC purchased a new stake in NVIDIA during the second quarter worth $40,000. 65.27% of the stock is owned by hedge funds and other institutional investors.
NVIDIA Stock Up 3.0% NASDAQ:NVDA opened at $224.09 on Thursday. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85. The company’s fifty day moving average price is $205.61 and its 200-day moving average price is $198.06. NVIDIA Corporation has a 1-year low of $164.07 and a 1-year high of $236.54. The firm has a market capitalization of $5.42 trillion, a P/E ratio of 34.32, a PEG ratio of 0.42 and a beta of 2.23.
NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.76 by $0.11. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The company had revenue of $81.61 billion during the quarter, compared to the consensus estimate of $78.42 billion. During the same period in the previous year, the firm posted $0.81 earnings per share. The firm’s quarterly revenue was up 85.2% on a year-over-year basis. As a group, equities research analysts anticipate that NVIDIA Corporation will post 8.79 EPS for the current year.
NVIDIA declared that its board has authorized a stock repurchase plan on Wednesday, May 20th that permits the company to buyback $80.00 billion in shares. This buyback authorization permits the computer hardware maker to repurchase up to 1.5% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s board of directors believes its shares are undervalued.
NVIDIA Increases Dividend The business also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Thursday, June 4th were issued a $0.25 dividend. This is a boost from NVIDIA’s previous quarterly dividend of $0.01. The ex-dividend date of this dividend was Thursday, June 4th. This represents a $1.00 annualized dividend and a dividend yield of 0.4%. NVIDIA’s payout ratio is presently 15.31%.
Key Headlines Impacting NVIDIA Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: $500 billion financing push reduces funding constraints: Bank of America said the initiative could ease financing risk by shifting much of the capital burden to Wall Street. The plan may make it easier for cloud providers and other customers to purchase NVIDIA hardware, networking products, and software, potentially extending the company’s revenue runway. BofA Says Nvidia’s $500 Billion Plan Eases Financing Risk Positive Sentiment: Continued demand for current and older GPUs: Susquehanna expects a continued GB300 ramp ahead of NVIDIA’s Vera Rubin platform release. Separately, CoreWeave’s CEO said the company is booking NVIDIA A100 systems through 2029 at full pricing, challenging concerns that older GPUs will rapidly lose value. Nvidia likely to see continued GB300 ramp ahead of Vera Rubin release Positive Sentiment: Analysts remain bullish: Recent coverage includes rating upgrades and price-target increases, with Wells Fargo maintaining an overweight rating and a $315 target. The positive views reflect expectations for sustained AI infrastructure spending and NVIDIA’s end-to-end hardware, networking, and software advantage. SA analyst upgrades and downgrades Positive Sentiment: Broader AI ecosystem momentum: IBM and Together AI agreed to a $240 million multiyear contract for an NVIDIA-powered inference cluster, while NVIDIA’s open-weight model efforts could strengthen its software ecosystem and CUDA platform. IBM and Together AI ink $240 million deal Negative Sentiment: Financing risks remain a key overhang: Critics question whether the arrangement amounts to circular financing because NVIDIA may provide residual-value support of up to 25% on some deals. Rapid GPU depreciation, potential oversupply, and lower-cost Chinese compute could weaken collateral values and expose NVIDIA to losses if customers struggle. Neutral Sentiment: Near-term test: Investors are likely to look to NVIDIA’s late-August earnings report for evidence that GB300 demand, expanding customer spending, and the financing strategy are translating into sustainable revenue and earnings growth. Insider Activity In related news, Director Stephen C. Neal sold 15,500 shares of NVIDIA stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the completion of the transaction, the director directly owned 116,135 shares in the company, valued at approximately $25,053,803.55. This trade represents a 11.77% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director John Dabiri sold 625 shares of the business’s stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total value of $133,750.00. Following the completion of the transaction, the director directly owned 14,163 shares of the company’s stock, valued at $3,030,882. The trade was a 4.23% 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 1,901,125 shares of company stock valued at $410,583,015 in the last quarter. 3.94% of the stock is currently owned by company insiders.
Analyst Upgrades and Downgrades Several analysts have issued reports on NVDA shares. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $350.00 target price on shares of NVIDIA in a research report on Thursday, May 21st. Truist Financial upped their price objective on NVIDIA from $287.00 to $307.00 and gave the stock a “buy” rating in a research note on Thursday, May 21st. Seaport Research Partners upped their price objective on NVIDIA from $140.00 to $180.00 and gave the stock a “sell” rating in a research note on Thursday, May 21st. Wells Fargo & Company reaffirmed an “overweight” rating and set a $315.00 price objective on shares of NVIDIA in a research report on Tuesday. Finally, Citigroup initiated coverage on NVIDIA in a research note on Wednesday, April 15th. They issued a “buy” rating on the stock. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, NVIDIA currently has a consensus rating of “Buy” and a consensus target price of $305.94.
Read Our Latest Research Report on NVDA
About NVIDIA (Free Report)
NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.
The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.
Featured Articles Five stocks we like better than NVIDIA GE Vernova’s AI Power Boom Faces a Profit Test Cardinal Health Earnings: Can Perfection Get Priced In Twice? Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Legacy Jet Builders Stall While Embraer Accelerates to New Highs 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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Carmignac Gestion boosted its position in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 25.3% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 4,566,444 shares of the computer hardware maker’s stock after purchasing an additional 921,338 shares during the quarter. NVIDIA makes up 12.2% of Carmignac Gestion’s portfolio, making the stock its biggest position. Carmignac Gestion’s holdings in NVIDIA were worth $796,005,000 at the end of the most recent quarter.
Several other institutional investors and hedge funds have also added to or reduced their stakes in the company. Lifetime Wealth Management P.C. bought a new stake in NVIDIA during the fourth quarter worth about $26,000. Longview Financial Advisors Inc. purchased a new stake in NVIDIA in the first quarter worth about $27,000. Longfellow Investment Management Co. LLC increased its stake in shares of NVIDIA by 47.9% during the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock valued at $33,000 after purchasing an additional 67 shares in the last quarter. Phillip James Consulting Co. bought a new position in shares of NVIDIA during the first quarter valued at approximately $40,000. Finally, Spurstone Advisory Services LLC purchased a new position in shares of NVIDIA during the second quarter valued at approximately $40,000. Hedge funds and other institutional investors own 65.27% of the company’s stock.
Insider Buying and Selling at NVIDIA In related news, Director Mark A. Stevens sold 885,000 shares of the firm’s stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $210.17, for a total value of $186,000,450.00. Following the transaction, the director owned 5,207,271 shares of the company’s stock, valued at approximately $1,094,412,146.07. This trade represents a 14.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director John Dabiri sold 625 shares of the firm’s stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $214.00, for a total transaction of $133,750.00. Following the completion of the transaction, the director directly owned 14,163 shares in the company, valued at approximately $3,030,882. The trade was a 4.23% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,901,125 shares of company stock worth $410,583,015 in the last three months. 3.94% of the stock is currently owned by company insiders.
NVIDIA News Roundup Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: $500 billion financing push reduces funding constraints: Bank of America said the initiative could ease financing risk by shifting much of the capital burden to Wall Street. The plan may make it easier for cloud providers and other customers to purchase NVIDIA hardware, networking products, and software, potentially extending the company’s revenue runway. BofA Says Nvidia’s $500 Billion Plan Eases Financing Risk Positive Sentiment: Continued demand for current and older GPUs: Susquehanna expects a continued GB300 ramp ahead of NVIDIA’s Vera Rubin platform release. Separately, CoreWeave’s CEO said the company is booking NVIDIA A100 systems through 2029 at full pricing, challenging concerns that older GPUs will rapidly lose value. Nvidia likely to see continued GB300 ramp ahead of Vera Rubin release Positive Sentiment: Analysts remain bullish: Recent coverage includes rating upgrades and price-target increases, with Wells Fargo maintaining an overweight rating and a $315 target. The positive views reflect expectations for sustained AI infrastructure spending and NVIDIA’s end-to-end hardware, networking, and software advantage. SA analyst upgrades and downgrades Positive Sentiment: Broader AI ecosystem momentum: IBM and Together AI agreed to a $240 million multiyear contract for an NVIDIA-powered inference cluster, while NVIDIA’s open-weight model efforts could strengthen its software ecosystem and CUDA platform. IBM and Together AI ink $240 million deal Negative Sentiment: Financing risks remain a key overhang: Critics question whether the arrangement amounts to circular financing because NVIDIA may provide residual-value support of up to 25% on some deals. Rapid GPU depreciation, potential oversupply, and lower-cost Chinese compute could weaken collateral values and expose NVIDIA to losses if customers struggle. Neutral Sentiment: Near-term test: Investors are likely to look to NVIDIA’s late-August earnings report for evidence that GB300 demand, expanding customer spending, and the financing strategy are translating into sustainable revenue and earnings growth. NVIDIA Stock Up 3.0% NVDA opened at $224.09 on Thursday. The stock has a market capitalization of $5.42 trillion, a price-to-earnings ratio of 34.32, a PEG ratio of 0.42 and a beta of 2.23. The firm has a 50 day moving average price of $205.61 and a 200-day moving average price of $198.06. NVIDIA Corporation has a twelve month low of $164.07 and a twelve month high of $236.54. The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04.
NVIDIA (NASDAQ:NVDA – Get Free Report) last released its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.76 by $0.11. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The firm had revenue of $81.61 billion for the quarter, compared to the consensus estimate of $78.42 billion. During the same period last year, the business posted $0.81 EPS. The company’s revenue for the quarter was up 85.2% on a year-over-year basis. Equities research analysts forecast that NVIDIA Corporation will post 8.79 earnings per share for the current year.
NVIDIA declared that its Board of Directors has authorized a stock buyback program on Wednesday, May 20th that allows the company to buyback $80.00 billion in outstanding shares. This buyback authorization allows the computer hardware maker to reacquire up to 1.5% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s board of directors believes its stock is undervalued.
NVIDIA Increases Dividend The company also recently announced a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Thursday, June 4th were given a $0.25 dividend. The ex-dividend date of this dividend was Thursday, June 4th. This is a positive change from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 annualized dividend and a yield of 0.4%. NVIDIA’s payout ratio is 15.31%.
Wall Street Analyst Weigh In NVDA has been the topic of a number of analyst reports. Rosenblatt Securities reissued a “buy” rating and issued a $325.00 price target on shares of NVIDIA in a research report on Thursday, May 21st. Seaport Research Partners raised their price objective on NVIDIA from $140.00 to $180.00 and gave the company a “sell” rating in a research report on Thursday, May 21st. DA Davidson reiterated a “buy” rating and set a $300.00 price objective on shares of NVIDIA in a research note on Monday, June 1st. HSBC reissued a “buy” rating and issued a $325.00 target price (up from $295.00) on shares of NVIDIA in a report on Tuesday, May 19th. Finally, Stifel Nicolaus set a $282.00 target price on NVIDIA and gave the stock a “buy” rating in a research note on Thursday, May 21st. Three analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Buy” and an average target price of $305.94.
Get Our Latest Stock Analysis on NVDA
NVIDIA Company Profile (Free Report)
NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.
The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.
See Also Five stocks we like better than NVIDIA GE Vernova’s AI Power Boom Faces a Profit Test Cardinal Health Earnings: Can Perfection Get Priced In Twice? Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Legacy Jet Builders Stall While Embraer Accelerates to New Highs
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First Financial Bank Trust Division grew its stake in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 31.8% during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 87,484 shares of the computer hardware maker’s stock after buying an additional 21,129 shares during the quarter. NVIDIA accounts for approximately 1.2% of First Financial Bank Trust Division’s portfolio, making the stock its 22nd largest holding. First Financial Bank Trust Division’s holdings in NVIDIA were worth $17,505,000 as of its most recent SEC filing.
Several other large investors have also recently modified their holdings of the stock. Norges Bank purchased a new position in NVIDIA in the 4th quarter worth approximately $62,244,133,000. J. Stern & Co. LLP lifted its position in NVIDIA by 13,709.1% in the fourth quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker’s stock valued at $23,454,297,000 after purchasing an additional 124,849,603 shares during the last quarter. Cardano Risk Management B.V. boosted its stake in shares of NVIDIA by 896.4% during the fourth quarter. Cardano Risk Management B.V. now owns 78,123,960 shares of the computer hardware maker’s stock valued at $14,570,119,000 after purchasing an additional 70,283,539 shares during the period. Capital Research Global Investors boosted its stake in shares of NVIDIA by 16.1% during the third quarter. Capital Research Global Investors now owns 165,377,852 shares of the computer hardware maker’s stock valued at $30,855,564,000 after purchasing an additional 22,896,705 shares during the period. Finally, Laurel Wealth Advisors LLC grew its holdings in shares of NVIDIA by 15,496.1% in the second quarter. Laurel Wealth Advisors LLC now owns 21,865,525 shares of the computer hardware maker’s stock worth $3,454,534,000 after purchasing an additional 21,725,326 shares during the last quarter. Hedge funds and other institutional investors own 65.27% of the company’s stock.
Insider Buying and Selling In related news, Director John Dabiri sold 625 shares of the stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total transaction of $133,750.00. Following the sale, the director directly owned 14,163 shares of the company’s stock, valued at approximately $3,030,882. This represents a 4.23% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 885,000 shares of the firm’s stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the sale, the director owned 5,207,271 shares of the company’s stock, valued at approximately $1,094,412,146.07. This represents a 14.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 1,901,125 shares of company stock worth $410,583,015 in the last quarter. Corporate insiders own 3.94% of the company’s stock.
Analyst Upgrades and Downgrades Several research analysts recently commented on NVDA shares. Citic Securities lifted their target price on shares of NVIDIA from $242.00 to $315.00 and gave the stock a “buy” rating in a research note on Friday, May 22nd. UBS Group increased their price target on shares of NVIDIA from $275.00 to $280.00 and gave the company a “buy” rating in a research report on Thursday, May 21st. Truist Financial raised their price target on shares of NVIDIA from $287.00 to $307.00 and gave the stock a “buy” rating in a report on Thursday, May 21st. KeyCorp restated an “overweight” rating and issued a $330.00 price objective (up from $310.00) on shares of NVIDIA in a research report on Tuesday, July 14th. Finally, CICC Research upped their price objective on shares of NVIDIA from $240.60 to $268.30 and gave the company an “outperform” rating in a research note on Friday, May 22nd. Three research analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, NVIDIA currently has an average rating of “Buy” and a consensus price target of $305.94.
View Our Latest Stock Analysis on NVIDIA
NVIDIA News Summary Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: $500 billion financing push reduces funding constraints: Bank of America said the initiative could ease financing risk by shifting much of the capital burden to Wall Street. The plan may make it easier for cloud providers and other customers to purchase NVIDIA hardware, networking products, and software, potentially extending the company’s revenue runway. BofA Says Nvidia’s $500 Billion Plan Eases Financing Risk Positive Sentiment: Continued demand for current and older GPUs: Susquehanna expects a continued GB300 ramp ahead of NVIDIA’s Vera Rubin platform release. Separately, CoreWeave’s CEO said the company is booking NVIDIA A100 systems through 2029 at full pricing, challenging concerns that older GPUs will rapidly lose value. Nvidia likely to see continued GB300 ramp ahead of Vera Rubin release Positive Sentiment: Analysts remain bullish: Recent coverage includes rating upgrades and price-target increases, with Wells Fargo maintaining an overweight rating and a $315 target. The positive views reflect expectations for sustained AI infrastructure spending and NVIDIA’s end-to-end hardware, networking, and software advantage. SA analyst upgrades and downgrades Positive Sentiment: Broader AI ecosystem momentum: IBM and Together AI agreed to a $240 million multiyear contract for an NVIDIA-powered inference cluster, while NVIDIA’s open-weight model efforts could strengthen its software ecosystem and CUDA platform. IBM and Together AI ink $240 million deal Negative Sentiment: Financing risks remain a key overhang: Critics question whether the arrangement amounts to circular financing because NVIDIA may provide residual-value support of up to 25% on some deals. Rapid GPU depreciation, potential oversupply, and lower-cost Chinese compute could weaken collateral values and expose NVIDIA to losses if customers struggle. Neutral Sentiment: Near-term test: Investors are likely to look to NVIDIA’s late-August earnings report for evidence that GB300 demand, expanding customer spending, and the financing strategy are translating into sustainable revenue and earnings growth. NVIDIA Trading Up 3.0% NASDAQ:NVDA opened at $224.09 on Thursday. The firm has a market capitalization of $5.42 trillion, a P/E ratio of 34.32, a PEG ratio of 0.42 and a beta of 2.23. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85. NVIDIA Corporation has a one year low of $164.07 and a one year high of $236.54. The company’s 50-day simple moving average is $205.61 and its 200 day simple moving average is $198.06.
NVIDIA (NASDAQ:NVDA – Get Free Report) last released its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, topping the consensus estimate of $1.76 by $0.11. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The business had revenue of $81.61 billion for the quarter, compared to the consensus estimate of $78.42 billion. During the same period in the previous year, the company posted $0.81 earnings per share. The company’s revenue for the quarter was up 85.2% compared to the same quarter last year. As a group, analysts forecast that NVIDIA Corporation will post 8.79 EPS for the current fiscal year.
NVIDIA declared that its Board of Directors has authorized a share repurchase program on Wednesday, May 20th that permits the company to repurchase $80.00 billion in shares. This repurchase authorization permits the computer hardware maker to repurchase up to 1.5% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s leadership believes its shares are undervalued.
NVIDIA Increases Dividend The company also recently declared a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Thursday, June 4th were paid a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date was Thursday, June 4th. This is a positive change from NVIDIA’s previous quarterly dividend of $0.01. NVIDIA’s dividend payout ratio (DPR) is presently 15.31%.
About NVIDIA (Free Report)
NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.
The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.
Featured Stories Five stocks we like better than NVIDIA GE Vernova’s AI Power Boom Faces a Profit Test Cardinal Health Earnings: Can Perfection Get Priced In Twice? Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand Legacy Jet Builders Stall While Embraer Accelerates to New Highs 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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If you haven't had the pleasure of owning Nvidia (NVDA +3.03%) stock over the past three and a half years, don't worry, it's not too late. If you've listened to any of the AI hyperscalers' earnings calls, it's very clear that the AI data center build-outs aren't going to stop in 2026 or 2027, and that bodes well for Nvidia, the primary computing unit supplier for these data centers.
However, the market is pricing Nvidia's stock like it's not going to grow at all after 2026. That's a major buying opportunity, and I think missing out on it now could be a generational investing mistake.
Image source: Nvidia.
Just how cheap is Nvidia's stock? The best way to value Nvidia's stock is to use some form of the price-to-earnings (P/E) ratio. The most common metric to use is the trailing P/E ratio, as it values the company based on what it has already earned. From this perspective, Nvidia may not look as cheap.
NVDA PE Ratio data by YCharts
A 34x trailing earnings multiple isn't a historically cheap price to pay for a stock. However, this valuation measure leaves out one very important point: growth. With no other context, if presented with two stocks that have the same valuation, investors will always choose the company with higher growth, because the growth rate will make the stock cheaper faster if the stock price stays flat.
As a result, a more commonly used metric to value fast-growing stocks is the forward P/E ratio, which uses analyst estimates for the remainder of the current fiscal year to value the stock. From this vantage point, Nvidia's stock looks far more attractive.
NVDA PE Ratio (Forward) data by YCharts
At about 25 times forward earnings, Nvidia isn't valued at that much of a premium over the S&P 500 (^GSPC +0.44%), which trades for 21.3 times forward earnings.
Essentially, the market is telling investors that after this year, Nvidia should trade at a market-average premium. However, that doesn't make sense, knowing what's coming in 2027. The AI build-out is likely to remain on pace; Nvidia has already informed investors that it expects $1 trillion in AI hyperscaler capital expenditures next year. For reference, 2026's projections were about $650 billion to start the year. Wall Street analysts concur with Nvidia's estimates and project 43% revenue growth next year.
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As a result, I think Nvidia is an incredible buy now, as the market isn't pricing in any 2027 success, like it is with some stocks in the AI realm. This makes it among the best values in this sector, and I think investors would be wise to take advantage of this opportunity and load up on shares.
Bob Elliott, the former Bridgewater Associates executive and CIO of Unlimited, says the rally in artificial-intelligence stocks is built on an economic scenario that depends on unprecedented productivity growth, aggressive household dissaving and a circular flow of capital among technology companies.
NVIDIA is rated a Buy, supported by record Q1 results, robust guidance, and a compelling valuation discount to peers and history. NVDA's fiscal Q1 saw revenue of $81.6B (+85% YoY), net income of $58.3B (+211% YoY), and a 74.9% gross margin, with Data Center driving 92% YoY growth. Management guided Q2 revenue to $91B, highlighted $20B in new Vera CPU revenue visibility, and emphasized diversification beyond hyperscale customers.
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David Tepper’s Appaloosa Management nearly doubled its Amazon (NASDAQ:AMZN | AMZN Price Prediction) stake in the first quarter of 2026, adding roughly 2.14 million shares to bring the total to about 4.3 million, a position worth approximately $900 million and disclosed in a 13F filed May 15. That move makes Amazon Tepper’s single largest holding at roughly 15% of the $5.93 billion portfolio, up from third place at 7% in Q4 2025. The reflexive guess for a billionaire’s top artificial intelligence bet is NVIDIA (NASDAQ:NVDA). Tepper went a different direction.
What Tepper Bought, and Why It Matters Tepper concentrated capital into Amazon during a quarter when sentiment around hyperscaler CapEx was deteriorating. Amazon traded at $208.27 on March 31, 2026, weighed down by investor anxiety about the scale of AI infrastructure spending. Tepper used that drawdown to build size. The position is now up more than 29% from the March 31 reference, with shares at $268.78 on Aug. 12. He is ahead, but modestly, and the recent pullback shows the thesis is still being contested.
The contrarian signal is sharper than the price gain suggests. While Tepper accumulated, Amazon insiders unloaded. Jeff Bezos disposed of 1,033,597 shares on May 1, then another 220,200 shares on May 4 at $275. CEO Andy Jassy, Stores chief Doug Herrington, and AWS chief Matt Garman all sold into the May rally. Berkshire Hathaway, under Greg Abel, fully exited Amazon the same quarter Tepper doubled down.
The Underlying Thesis Tepper is buying the AI infrastructure cycle through the cloud market leader rather than the chip supplier. The numbers support the call. AWS grew 28% year over year in Q1 2026 to $37.59 billion, the fastest pace in 15 quarters, with a 38% operating margin. Amazon’s custom silicon business, Trainium and Graviton, crossed a $20 billion annual revenue run rate growing triple digits. OpenAI committed to roughly 2 GW of Trainium capacity starting in 2027, and Anthropic secured up to 5 GW.
CEO Andy Jassy framed the capital plan plainly: “We expect to invest about $200 billion in capital expenditures across Amazon in 2026, and anticipate strong long-term return on invested capital.”
Prediction markets corroborate the spending trajectory. Polymarket assigns an 88% probability that 2026 CapEx exceeds $200 billion and 95% that it tops $170 billion. That is the trade: AWS reaccelerating, custom chips vertically integrating Amazon away from NVIDIA dependency, advertising compounding at high margins, all at a trailing P/E of 32 and a forward multiple of 31.
Should Retirement Investors Follow? The thesis is worth following with eyes open. Trailing free cash flow has collapsed to $1.2 billion as capex spending overwhelms operating cash. That pressure persists until AWS revenue catches up to the buildout. The setup rewards patience: analyst consensus sits at $312.71 with 62 buy ratings and zero sells. Tepper’s edge is duration. Retirement-focused investors with a multi-year horizon get paid for absorbing the capex digestion phase. Those who need clean quarterly cash flow optics will find better entry points after another pullback. Keep an eye on AWS growth and free cash flow recovery into 2027. That is when the thesis confirms or breaks.
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Nvidia (NASDAQ:NVDA | NVDA Price Prediction) shares caught quite the bid higher when Elon Musk surprisingly announced that his space empire, Space Exploration Technologies (NASDAQ:SPCX), would show loyalty to the great Jensen Huang by going exclusive with Nvidia’s AI chips.
Why the big commitment? To put it simply, Elon Musk said that “they are the best.” And he’s certainly not wrong, especially as the Vera Rubin era looks to change the world once again.
For investors, the big question is: why bother committing to one firm or another for AI chips? Doesn’t it make more sense to leverage rivals against each other for a shot at better prices?
In my view, I think SpaceX’s loyalty could come with some unspoken perks, especially as Nvidia faces intense demand for its latest and greatest. Indeed, it only makes sense to prioritize firms with the deep pockets and loyalty whenever the line starts going out the door.
SpaceX’s Nvidia exclusivity could pay off in a big-time way In my humble opinion, a simple gesture of loyalty can go a long way. And for SpaceX, it feels like it’s secured a spot at, or at least very close to, the front of the line for the next era of cutting-edge GPUs. Add Nvidia’s support for its orbital AI data center endeavors into the equation, and perhaps the partnership between the two titans in tech is just getting started. At the end of the day, it’s far better to have two of the brightest minds in tech tackling the same problems.
While it was initially shares of Nvidia that shot higher on the news, I do think that the ensuing rally in SpaceX shares was more than warranted. Just like that, the stock is more than $11 above the IPO price of $135 per share. Given the massive bounce off the lows, it feels like SpaceX remains a very dangerous stock to go short, even if the price of admission bakes in a lot — maybe even too much. As the Musk-Huang relationship expands further from here, I do think that both companies stand to benefit greatly.
As for losers of such a deal, Advanced Micro Devices (NASDAQ:AMD) immediately comes to mind. It’s the number-two player in the GPU race, and shares have outperformed Nvidia by leaps and bounds in the past year, more than doubling to a 162% gain, while Nvidia stock rose just 23% (close to a market return).
It’s not great news for Advanced Micro Devices, but Lisa Su need not worry Of course, Lisa Su’s chip empire is a serious challenger on price. But with a nearly $2 trillion space titan now off the market, Advanced Micro Devices needs to consider its next move, especially if there are more firms that will be willing to make similar commitments to improve relations, gain priority access, and maybe a bit more. If Nvidia can’t keep up with demand, Advanced Micro Devices still stands to post more wins of its own as it marches ever closer to that $1 trillion market cap milestone.
Any way you look at it, SpaceX going exclusive with Nvidia is bad news for Advanced Micro Devices, especially when you consider how much more the space titan could spend on AI hardware, as its CapEx looks to surge further in this unprecedented AI data center buildout.
Personally, I don’t think Advanced Micro Devices needs to force exclusive deals. If anything, concentrating on the value provided in an era where efficiency and ROIs matter, I think, could be the edge that helps Lisa Su’s firm continue to ride higher.
One area where Advanced Micro Devices could gain loyalty, I believe, is via structured equity deals and collaborations within the data center. Naturally, customers are going to want to stick with vendors that have skin in the game.
Of course, Nvidia has a ton of bets across the AI scene, from frontier AI labs to connectivity plays and everything in between. As Advanced Micro Devices looks to put some of its cash to work, I do think it’s bound to follow a similar playbook.
The bottom line All considered, I think Advanced Micro Devices is not at all in trouble after the latest SpaceX-Nvidia exclusivity announcement. If anything, it makes me even more bullish on Lisa Su’s firm as they look to make the best response. While I could be wrong, I still think Advanced Micro Devices shares will outpace Nvidia for the year ahead.
In my view, the SpaceX exclusivity deal is a subtle jab, not a knockout blow. Not even close.
Contact [email protected] for any questions or corrections.
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Jensen Huang doesn’t rattle easily. The CEO of NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) has spent the past three years narrating an AI buildout that has pushed his company to a $5.18 trillion market cap. So when he turns visibly defensive, investors should pay attention.
On a recent Prof G Markets segment, China analyst Alice Han and host Ed Elson dissected a tense exchange between Huang and podcaster Dwarkesh Patel. Huang warned that if China’s DeepSeek optimized its next-generation models for Huawei silicon before NVIDIA hardware, “that is a horrible outcome for our nation,” adding that AI models running best on non-American chips “is bad news for us.” Elson called it “the first time I’ve seen him as defensive.”
What Huang Is Really Worried About The fear is structural. If DeepSeek, whose V4 model already handles a 1 million token context window on par with Gemini and the leading U.S. labs, shifts its training stack to Huawei accelerators, NVIDIA loses the network effect that has made CUDA the default substrate of global AI. Han noted DeepSeek’s funding will likely be “state-led” rather than venture-backed like Anthropic or OpenAI, and that hardware access remains the critical bottleneck.
Huang made the same case on NVIDIA’s Q1 FY2026 call: “The question is not whether China will have AI, it already does. The question is whether one of the world’s largest AI markets will run on American platforms.” He pegged the China AI accelerator TAM at roughly $50 billion, a market NVIDIA has effectively been locked out of. The H20 ban already forced a $4.5 billion inventory write-down, and Q1 FY2027 guidance of ~$78.0B explicitly assumes zero China Data Center compute revenue.
The Numbers Behind the Anxiety NVIDIA’s underlying business has not blinked. Q4 FY2026 revenue hit $68.13 billion, up 73% YoY, with Data Center Networking alone climbing 263% YoY on NVLink demand for GB200/GB300 racks (8-K filing). Full-year FY2026 revenue reached $215.94 billion. Wall Street’s consensus target sits at $269.17, with 48 Buy ratings and nine Strong Buy ratings against just two Hold ratings. Forward P/E is 24x.
Shares are up 22.12% over the past year and 18.44% year to date through Aug. 12.
What To Watch Reddit’s r/stocks community is already debating the threat directly, with one heavily-engaged thread asking “how do TPUs not pose a threat to GPU” drawing 221 comments. Han flagged that U.S. export policy has gone “off, on, off, on,” leaving NVIDIA strategically exposed. Huang’s defensive posture suggests the China question is no longer hypothetical, and the next earnings cycle will reveal whether the Vera Rubin roadmap and Grace Blackwell momentum can outrun a parallel Chinese AI stack.
Contact [email protected] for any questions or corrections.
Nvidia (NVDA +3.03%) shares are up 1,390% since the artificial intelligence boom began in January 2023, and Wall Street still thinks the stock is undervalued. Among 65 analysts, the median target price is $300 per share, implying 37% upside from the current share price of $218.
Nvidia shareholders recently got good news from Wall Street. Consensus earnings estimates have recently been revised higher, such that analysts now expect earnings to increase at 44% annually over the next three years. In March, the consensus estimate said earnings would increase at 33% annually over that period.
What changed? Wall Street analysts once again underestimated how much money hyperscalers would spend on AI infrastructure. Here are the important details.
Image source: Getty Images.
Nvidia dominates the market for AI infrastructure across GPUs, CPUs, and networking equipment Nvidia is a full-stack accelerated computing company that develops graphics processing units (GPUs), central processing units (CPUs), and networking equipment, supported by a robust ecosystem of software tools. That approach lets the company optimize performance and power efficiency in ways most competitors cannot, which explains why Nvidia systems are the gold standard in artificial intelligence.
Most readers probably know that Nvidia GPUs account for a large percentage of data center accelerator sales (around 90%, according to HPC Wire). But readers may be less familiar with the company's prowess in other categories. Nvidia recently became the largest networking company in the world, and it's on pace to become the largest CPU supplier by the end of this year.
Of course, there's been a lot of talk about application-specific integrated circuits (ASICs), chips purpose-built for specific workloads like artificial intelligence. Some investors are worried that custom silicon will eventually displace Nvidia. But those fears are unwarranted. ASICs perform certain tasks more cheaply than Nvidia GPUs, but they are less flexible and lack the robust software development ecosystem that backs Nvidia chips.
"Nvidia isn't going anywhere anytime soon," according to Meera Pandit, global market strategist at J.P. Morgan. "Only Nvidia chips can handle any AI workload. Custom hardware is a safe and efficient bet for known workloads like inference, but there's an obsolescence risk as AI evolved."
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Wall Street raised its hyperscaler capital expenditure (capex) spending forecast for 2026 Currently, 26% of hyperscaler capital expenditures (capex) go straight to Nvidia's bottom line, according to research from J.P. Morgan. That astonishing metric underscores the essential role Nvidia plays in the AI infrastructure market. And assuming the company maintains its pricing power and market share, earnings growth should more or less match capex growth going forward.
Here's the good news for shareholders: Wall Street has consistently underestimated how much hyperscalers will spend on AI infrastructure. "At the start of both 2024 and 2025, consensus estimates implied capex growth of roughly 20% for the year," writes Goldman Sachs. "In reality, it exceeded 50% in both years."
The same thing happened in 2026. Last June, the consensus estimate said capex spending among the five largest hyperscalers -- Alphabet, Amazon, Meta Platforms, Microsoft, and Oracle -- would total $361 billion this year. But Wall Street has since raised its forecast by over 100%, such that the consensus estimate now says their capex spending will total $733 billion in 2026.
Similarly, investors have reason to think Wall Street is making the same mistake with 2027. The consensus estimate currently says capex spending among the top five hyperscalers will grow 28% to $939 billion next year. But that would be a major slowdown compared to capex growth of 56% in 2024, 73% in 2025, and the projected capex growth of 90% in 2026.
Here's the big picture: Wall Street currently expects capex spending among the five largest hyperscalers to grow at 41% annually through 2028. Meanwhile, the consensus estimate says Nvidia's earnings will increase at 44% annually over the same period. It makes sense that those figures are roughly equivalent.
However, if analysts are underestimating hyperscaler capex, which is plausible given their track record, it stands to reason that they are also underestimating Nvidia's future earnings. And if earnings grow faster than expected over the next few years, the efficient market hypothesis predicts the stock price will rise. That makes Nvidia a worthwhile long-term investment.
I keep buying NVIDIA (NASDAQ:NVDA | NVDA Price Prediction), and the buy button has become a habit. Every quarter sharpens the case for adding shares. This is my highest-conviction position because the world is rewiring itself around AI compute, and Jensen Huang’s company is the toll booth on the road everyone is paving.
AI is moving from single-shot chatbots to continuous, multi-step agentic workflows that multiply compute and memory demands on every data center. Huang put it bluntly on the last call: “The buildout of AI factories, the largest infrastructure expansion in human history, is accelerating at extraordinary speed.” Reasoning models chew through a hundred to a thousand times more tokens than a one-shot query. Every token routes through NVIDIA silicon.
The Receipts I Keep Coming Back To Q1 FY2027 revenue landed at $81.615 billion, up 85.23% year over year, with Data Center at $75.246 billion (+92%). Data Center Networking at $14.8 billion, up 199% shows the full-stack moat in the P&L. NVLink, Spectrum-X, and InfiniBand are the plumbing agentic AI needs, and customers are paying for the whole rack.
Profitability: Non-GAAP gross margin of 75.0%, ROE of 101.5%, ROIC of 92.2%, and net debt/EBITDA of 0.006. Free cash flow was $48.554 billion in a single quarter. That balance sheet funds the next architecture cycle without asking for permission.
Capital return signals management sees runway ahead. The quarterly dividend rose from $0.01 to $0.25, and the board added an $80 billion buyback authorization on top of the $38.5 billion already outstanding. Companies that think the story is ending do not do that.
Why NVIDIA Over the Obvious Alternative The name a reader reaches for first is Advanced Micro Devices (NASDAQ:AMD). I own some, but my incremental dollar lands here. The reason is the networking line. A GPU competitor can match a chip. Matching CUDA, NVLink Fusion, Spectrum-X, and the software stack that runs in every cloud and every frontier model is a different problem. Even Intel (NASDAQ:INTC) chose to co-develop custom data center and PC products with NVIDIA using NVLink. When your rival plugs into your interconnect, that is the moat announcing itself.
The Risk I Refuse to Wave Away China export controls are real. Q1 saw no H20 shipments to China, and Q2 guidance of $91.0 billion, plus or minus 2%, explicitly assumes zero China Data Center compute. Add $119 billion in supply commitments and hyperscaler concentration near 50% of Data Center revenue, and concentration risk is real. Demand outside China absorbs supply faster than TSMC can print wafers. The roadmap from Blackwell Ultra to Vera Rubin gives multi-year visibility into a product cycle customers have already committed capital toward.
Why the Buy Button Stays Active At $224.09 and a P/E near 45, This is a premium multiple, paid for a company earning $1.87 a share off a 5-for-5 beat streak while building the operating system for the next industrial revolution. As long as agentic AI multiplies tokens, and NVIDIA remains the only place they can run at scale, my next contribution goes to the same ticker.
Contact [email protected] for any questions or corrections.
Nvidia (NVDA +3.03%) continues to be a dominant force in the artificial intelligence (AI) boom, thanks largely to its industry-leading graphics processing units (GPUs). But another type of technology is becoming increasingly important to the company's growth.
Nvidia generated a record $14.8 billion in data center networking revenue in its fiscal 2027 first quarter (which ended April 26), up 199% year over year. Networking revenue rose from $8.6 billion in its fiscal 2024 to $13 billion in its fiscal 2025 and to $31.4 billion in its fiscal 2026. Its opportunity in the space could become even larger as AI clusters scale further and require increasingly powerful networking infrastructure to connect many thousands of accelerator chips together.
Image source: Getty Images.
Networking is becoming a major growth engine Modern AI systems increasingly depend on high-performance networking as well as raw computing power. Training and running increasingly sophisticated models requires massive amounts of data to be moved rapidly among large numbers of accelerators and data storage devices. If the network cannot keep up, communication can become a bottleneck that reduces GPU utilization and slows AI workloads.
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Nvidia's NVLink technology connects GPUs inside powerful AI rack systems, while Spectrum-X Ethernet connects servers and racks across larger data centers. As AI systems scale, the company has more opportunities to sell networking and interconnect technology alongside its computing hardware.
According to research firm IDC, Nvidia captured 21.5% of data center Ethernet switching revenue in the first quarter of 2026, making it the market leader.
Custom AI chips are strengthening the networking opportunity Custom AI chips are a growing competitive threat to Nvidia's GPUs. But the NVLink Fusion rack-scale platform could cushion the company against that threat by allowing some custom processors to work alongside its networking and infrastructure technologies. That gives it another way to benefit from the rising AI infrastructure spending, even in cases when it doesn't supply the AI accelerators.
Nvidia has also expanded its partnership with custom chip designer Marvell Technology (MRVL +2.25%). Under the partnership, Marvell will provide custom accelerators and the networking hardware needed to connect those processors at high speeds, while Nvidia will supply technologies including NVLink high-speed interconnect technology, Spectrum-X switches, ConnectX network adapters, and BlueField data processing units.
Nvidia's networking business will not benefit from every custom AI chip. Customers can still choose competing networking technologies, and its networking gains may not fully compensate for the loss of lucrative GPU sales to rival chipmakers.
Competition is also significant, with market research firm IDC estimating Arista Networks' share of the data center Ethernet switching market at 20.7%, marginally below Nvidia's 21.5% share.
Still, Nvidia is trying to sell more of the technology that goes into each AI data center, rather than relying so heavily on its GPUs.
Networking could help support a $7.5 trillion market capitalization for Nvidia Nvidia is trading now at around 24.1 times Wall Street's fiscal 2027 earnings estimate of about $9 per share (as of Aug. 12). Analysts currently expect its earnings to increase to approximately $12.90 per share in fiscal 2028.
If Nvidia delivers on those expectations and continues to trade at roughly the same forward valuation, its market capitalization could approach $7.5 trillion, compared to roughly $5.3 trillion today. However, valuation compression would limit its upside even if earnings rise.
Still, networking is no longer a peripheral business for Nvidia. As AI factories become larger and more communication-intensive, Nvidia's ability to sell more of the infrastructure surrounding its chips could become an increasingly important part of its next phase of growth.
I know, I know: Nvidia (NVDA +3.03%) is already the largest company in the world, with a current market cap of $5.4 trillion. If its stock rises to about $250 per share, it would make Nvidia the first $6 trillion company in history.
To put that in perspective, at $6 trillion, Nvidia would be worth more than Amazon, Meta Platforms, Tesla, and Netflix combined.
But given how much Nvidia's revenue and earnings have grown, and how much CEO Jensen Huang has done to ensure the company's long-term dominance, it's actually kind of amazing that the company isn't already trading at $250 per share ... or more.
Here's the simple math that explains why I'm predicting a $6 trillion market cap for Nvidia by the end of the year.
Image source: Nvidia.
All about value Over the last three years, Nvidia's revenue, profits, and share price have all soared, but its valuation has actually dropped. Its price-to-earnings (P/E) ratio, which stood at about 100 times trailing earnings three years ago, has now dropped to 34. Its price-to-sales (P/S) ratio, which was at about 35 times sales, has tumbled to 22 over the same time frame.
And that's just on a trailing basis. If we look at the company's projections for revenue and net income, Nvidia is currently trading at 25 times forward earnings and a mere 14 times sales. Both its trailing and forward P/E ratios are much lower than those of less-successful chipmakers Intel and Advanced Micro Devices, and are even lower than Apple's.
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In Nvidia's most recent quarter, revenue was up 85% year over year, and net income was up 211%, beating expectations. The spending boom in artificial intelligence (AI) shows no signs of slowing. Although Nvidia's share price is up just 22.5% over the past year, investors should soon realize how much of a bargain Nvidia is at its current price.
That's why I'm predicting we'll see Nvidia's stock hit $250 per share and a total market cap of $6 trillion before the end of December.
John Bromels has positions in Amazon, Apple, Meta Platforms, Netflix, Nvidia, and Tesla. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Apple, Intel, Meta Platforms, Netflix, Nvidia, and Tesla. The Motley Fool has a disclosure policy.
When Jensen Huang flew to Tokyo last month and signed seven Japanese industrial giants into Nvidia's (NVDA +3.03%) new physical AI coalition, he was locking in a massive, long-lived stream of demand for Nvidia's chips and software, and that is something I think investors should really pay attention to.
Nvidia CEO Jensen Huang. Image source: Nvidia.
"Physical AI" refers to AI that controls robots, factory lines, and machines in the real world instead of just chatbots on a screen. In mid-July, Nvidia announced that companies like Fujitsu, FANUC, Yaskawa Electric, and Kawasaki Heavy Industries, along with Hitachi, NEC, SoftBank, Sony, and Kubota, intend to build on its Cosmos, Isaac, Metropolis, and Jetson platforms as part of a "Cosmos Coalition" focused on physical AI. Put simply, these are some of Japan's biggest names in robotics, manufacturing, and communications agreeing to standardize on Nvidia's stack as they build the brains for next-generation industrial automation.
Behind the coalition sits an even larger national project. Nvidia is partnering with Noetra, a Japanese AI consortium backed by Sony, SoftBank, Honda, and dozens of other firms, to build what it calls the world's first national infrastructure for physical AI. The centerpiece of that effort will be a Vera Rubin AI factory that will feature 13,750 Vera CPUs and 27,500 Rubin GPUs, delivering about 140 megawatts of compute capacity to train and deploy physical AI models. Japan's industry ministry has framed this as the computing backbone for its FRONTia program, and expects that it will help the country hit its goal of capturing 30% of the global AI robotics market by 2040.
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What about Nvidia shareholders? On top of that, Prime Minister Sanae Takaichi's government has laid out a plan to mobilize more than 370 trillion yen ($2.3 trillion) in combined public and private investment by 2040 across physical AI, semiconductors, and data centers. Noetra's own roadmap calls for roughly 1 trillion yen ($6.3 billion) of sovereign AI spending over five years to develop domestic foundation models for robots and industrial AI. When you add up the national AI factory, the robot makers building on Cosmos, and Japan's broader tech investment targets, you are talking about demand that lives comfortably in the trillion-dollar range over the coming decades.
For Nvidia shareholders, the important part is not just that these orders exist. It is that they represent multiyear infrastructure-level commitments that are hard to unwind. FANUC and Yaskawa are not going to rip out their control platforms every cycle. A sovereign AI factory is not built for a single experiment. By turning physical AI into a coalition and tying it to Japan's long-term industrial strategy, Huang is trying to make Nvidia's chips and tools the default choice for robots and factories in one of the world's most advanced manufacturing economies.
That is what confirmed demand really means here. It is not a one-off spike in GPU sales. It is governments and industrial giants literally planning their futures around Nvidia's hardware and software, which gives its shareholders much more visibility into where revenue and profit margins might come from years down the line.
Obsah:
00:41 AI cyklus jede dál
01:57 Návratnost investic
04:43 IPO Anthropic a OpenAI
06:02 Boj o kapitál
07:59 Compute jako nová třída aktiv
13:45 Univerzální Nvidia
21:29 Pozitivní AI obrázek
Výsledková sezóna nepřinesla jediný zásadní signál, který by zpochybňoval pokračování investičního cyklu kolem umělé inteligence. AI investiční příběh se tak po další výsledkové sezóně nejen nezhoršil, ale v některých ohledech vypadá ještě přesvědčivěji než před několika měsíci. Branislav Soták zůstává přesvědčený, že poptávka po výpočetním výkonu stále převyšuje nabídku a že současný cyklus investic do umělé inteligence má prostor pokračovat. „Za celou výsledkovou sezónu si momentálně nedokážu vybavit jediné vysloveně špatné číslo. Samozřejmě jsme místy viděli slabší reakce akcií na výsledky, ale jednotlivé indikace o stavu AI cyklu prakticky všechny ukazují, že bude pokračovat,“ říká Soták.
Kdo na AI skutečně vydělává?
Jednou z klíčových otázek současného cyklu zůstává monetizace. Podle Sotáka se paradoxně jako rizikovější část AI ekosystému profilují společnosti na jeho konci – takzvané frontier AI laboratoře, které vyvíjejí nejpokročilejší modely. Patří sem například OpenAI nebo Anthropic. Ekonomika samotných modelů je navíc pod tlakem konkurence. Open-source modely ze Západu i z Číny tlačí ceny dolů a část výpočetní zátěže se přesouvá k volně dostupným a méně výkonným modelům. To podle Sotáka znamená, že zisková marže se zatím ve větší míře přesouvá jinam. „Zatím ten profit podle všeho zůstává v hardwaru,“ říká.
Výsledková sezóna přesto přinesla pozitivní signály i ze softwarové části trhu. Soták jako výrazného vítěze zmiňuje Microsoft, přičemž velmi dobrá čísla představil také Palantir. Hodnota se tak podle něj začíná ukazovat i u firem, které vlastní infrastrukturu nebo vrstvu pod samotnými jazykovými modely.
IPO Anthropic ano, u OpenAI je Soták opatrnější
Pozornost investorů se bude soustředit také na budoucí IPO společností Anthropic a OpenAI. U první z nich je Soták výrazně optimističtější. „Anthropic je nejrychleji rostoucí firmou a podle všech indicií dokáže růst dokonce profitabilně i na frontier vrstvě, která je poměrně drahá. Pokud se dostane na trh, jeho IPO velmi pravděpodobně bude úspěšné,“ míní.
U OpenAI je naopak opatrnější. Problém podle něj není pouze v managementu, ale především v ekonomice podnikání. Firma sice rychle roste, její růst je ale velmi nákladný a spotřebovává prakticky všechny generované tržby. „OpenAI stále funguje se ztrátou a myslím, že k bodu zvratu má ještě poměrně daleko. Tady bych takovým optimistou nebyl,“ říká.
Na scénu vstupuje „compute“ jako nová třída aktiv
Případná dvě velká IPO navíc přicházejí v době, kdy se o kapitál uchází stále více projektů. Konkurence na kapitálových trzích roste nejen kvůli obrovskému americkému rozpočtovému deficitu, ale také kvůli makroekonomickému vývoji v Japonsku a financování samotné AI infrastruktury. Právě zde Soták vidí jeden z nejzajímavějších posunů posledních týdnů: Nvidia společně s velkými finančními institucemi, mezi něž patří Goldman Sachs, BlackRock či Blackstone, oznámila záměr mobilizovat až 500 miliard dolarů institucionálního kapitálu pro financování výpočetního výkonu. Výpočetní výkon by se tak mohl stát samostatně investovatelnou třídou aktiv. To může podle Sotáka zásadně změnit dostupnost a cenu kapitálu pro výstavbu datacenter.
„Třetí strany budou schopné investovat do výpočetního výkonu jako do nezávislé třídy aktiv. To je velmi zajímavé z hlediska dostupnosti kapitálu i nákladů financování,“ říká. Argumentem je podle něj i velikost potenciálního kapitálu. David Solomon z Goldman Sachs v této souvislosti upozornil, že jen v amerických money-market fondech je zaparkováno přibližně 9 bilionů dolarů, zatímco americký akciový trh má kapitalizaci kolem 100 bilionů dolarů. Kapitálu tedy podle Sotáka na trhu pravděpodobně je dostatek, jde především o to vytvořit mechanismus, který jej nasměruje do nové třídy aktiv.
V budoucnu si přitom lze představit standardizované finanční produkty navázané na výpočetní výkon – například forwardy či futures na kapacitu datacenter. „Mohou vzniknout standardizované produkty a otevřít se nový trh, který těm, kdo tuto infrastrukturu financují, zajistí větší dostupnost kapitálu a kapitál také zlevní,“ říká.
Současně ale upozorňuje, že finanční inženýrství samo o sobě neřeší otázku návratnosti. Právě zde vzniká paralela s hypoteční krizí, která je s podobnými finančními konstrukcemi historicky spojována. „Zatím tak daleko ještě nejsme. Finanční trhy jsou od toho, aby efektivně alokovaly kapitál, a většinu času to dělají poměrně dobře,“ konstatuje Soták. Riziko podle něj vzniká ve chvíli, kdy se na produktivní aktiva začne nabalovat příliš mnoho spekulace.
Zatím podle něj ale trh spíše vytváří novou investiční infrastrukturu než spekulativní bublinu. A první výsledky naznačují, že financování skutečně zlevňuje. CoreWeave například podle posledních výsledků zaznamenal meziroční pokles procentních nákladů na obsluhu dluhu.
Nvidia získává další výhodu
Nový způsob financování může být důležitý také pro samotnou Nvidii. Pokud se budou datacentra financovat jako samostatná produktivní aktiva, bude záležet na tom, jaký hardware v nich bude instalován. A právě zde má Nvidia podle Sotáka silnou pozici. Její čipy jsou univerzální a podporují širokou škálu modelů. Nad hardwarem navíc stojí softwarová vrstva CUDA, která umožňuje výkon dále optimalizovat.
Ještě důležitější je podle něj skutečnost, že Nvidia je ochotna poskytnout záruky za část financování. Pokud by nebyla dostatečná poptávka po nově vybudovaných kapacitách, Nvidia by podle oznámení převzala reziduální hodnotu části hardwaru. To přímo míří na jeden z hlavních argumentů medvědů kolem AI. Ti upozorňují, že hardware může zastarávat rychleji, než se investice vrátí.
Praxe ale podle Sotáka začíná ukazovat něco jiného. Hyperscaleři původně počítali s užitečnou životností GPU serverů kolem tří let, dnes ji řada z nich prodlužuje až na šest let. CoreWeave navíc uzavřel kontrakt na cluster postavený na čipech Nvidia A100 z roku 2020, který má trvat až do roku 2029. „To znamená, že i devět let po uvedení a instalaci čipu si tento hardware stále najde ekonomické využití. To poměrně výrazně nabourává tezi o rychlé depreciaci a negativním dopadu na profitabilitu,“ upozorňuje Soták.
Dalším argumentem je vývoj cen za pronájem GPU výkonu. U čipů H100 podle Nvidie vzrostla cena zhruba z 1,70 dolaru za GPU hodinu v roce 2025 na 2,40 dolaru. U novějšího Blackwellu se ve stejném období cena zvýšila přibližně z 5,30 na 7 dolarů. Podle Sotáka to podporuje tezi, že AI datacentrum není pouze rychle zastarávající hardware, ale může představovat produktivní aktivum, jehož výnosnost se díky růstu poptávky, cenové síle a technologickému pokroku zvyšuje.
Nvidia zůstává první volbou
Pokud jde o samotné investice do polovodičového řetězce, Soták v současnosti nevidí důvod hledat složitější alternativu. „Pokud se bavíme o poměru očekávaného nebo viditelného růstu a ceny, byla by to v tuto chvíli Nvidia. Moc bych nespekuloval s jinými jmény a volil bych lídra,“ říká. Nvidia je podle něj výjimečná tím, že má expozici na více částí dodavatelského řetězce. A zatímco se často hovoří o jednotlivých úzkých hrdlech, jejich význam je nakonec odvozen od samotné poptávky po výpočetním výkonu. Tu Nvidia stále ve velké míře obsluhuje.
Nová generace Vera Rubin by navíc měla podle Sotáka nabíhat do výroby rychleji než Blackwell. „Tempo růstu, které je enormní z té velké báze, na které Nvidia je, se pravděpodobně ani v dohledné době výrazně nezpomalí,“ domnívá se.
Příležitosti vidí ale i v síťové a optické infrastruktuře. Výsledky společností Lumentum a Coherent by měly přinést další indikaci o síle této poptávky. Rychlejší datová centra podle Sotáka totiž narážejí na fyzikální limity měděných spojů, což podporuje přechod k optickým technologiím. Valuace těchto firem jsou ovšem podle něj oproti Nvidii na jiné úrovni.
AI cyklus zůstává v dobré kondici
Celkový obrázek po výsledkové sezóně je tak podle Sotáka pozitivní. A možná ještě pozitivnější než na jejím začátku. Důležitá je přitom nejen síla jednotlivých firem, ale skutečnost, že AI komplex má dnes výrazný vliv na celý akciový trh. Když se v červenci AI segment otřásl, otřásl se podle Sotáka i celý trh. „Celková zpráva o stavu AI cyklu je z mého pohledu i po této výsledkové sezóně velmi pozitivní a možná pozitivnější, než byla na jejím začátku,“ uzavírá.
The much-anticipated initial public offering (IPO) of Space Exploration Technologies (SPCX +9.65%) and its aftermath have been a roller-coaster ride for investors. While shares initially surged, they are now down by 41% from the all-time high of roughly $226 they reached in mid-June, and below where they opened on their first day of trading. But is the stock on track for more downside or a long-term rebound? What might the next five years have in store?
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Space is no longer the key growth driver When it was still a privately held company, SpaceX became known for its industry-leading rocket-launch business. It developed some of the world's largest and most powerful rockets, capable of transporting high-value payloads and even humans to space. It also developed a leading satellite-based broadband internet solution called Starlink that brought wireless connectivity to the most remote areas on Earth.
Both of these businesses are still important. In the second quarter, the space and connectivity segments combined represented just over 67% of SpaceX's total revenue. However, the company's burgeoning AI business is likely to be the bigger story over the next few years.
In February, SpaceX purchased CEO Elon Musk's social media and AI company xAI in an all-stock transaction that valued it at $250 billion. The deal gave the combined entity access to xAI's frontier large language model, Grok, and to the company's enormous hardware resources. These include the Colossus supercomputing facilities, which boast over 1 million Nvidia H100 graphics processing unit (GPU) equivalents.
Is AI an opportunity or a mistake? SpaceX's pivot to AI gives it substantial new revenue opportunities. The benefits of this are already beginning to show. For example, Q2 revenue soared 92% year over year to $7.81 billion, helped by an eye-popping 248% increase in sales from the company's AI segment as clients clamor for access to its hardware.
SpaceX has signed a series of high-profile deals, including one that will see Anthropic renting out the computing capacity of roughly 325,000 Nvidia GPUs from its Colossus data centers for $1.25 billion each month. The company has a similar deal with Alphabet's Google worth $920 million per month. In the best-case scenario, these contracts could net SpaceX an eye-popping $26 billion in annual revenue, practically ensuring high-double-digit percentage top-line growth for the next few quarters.
Image source: Getty Images.
SpaceX's leadership also has plans to keep the company dominant over the longer term. It is working alongside Musk's electric vehicle maker, Tesla, to build a massive semiconductor manufacturing facility called Terafab, which is expected to eventually produce 1 terawatt (TW) of AI compute capacity per year (more than the current global supply), with the chips to be divided between the two companies.
While that ambitious chip manufacturing plan sounds great, it won't come cheap. The capital investments SpaceX and Tesla will need to put into the first phase of Terafab are expected to be $16.8 billion. Furthermore, a regulatory filing in May revealed that the total capex required could soar to $119 billion if all the planned additional phases are completed. This represents more than a tenth of a trillion dollars in capital that could have been used for other projects or returned to investors via stock buybacks or dividends. The success or failure of this project will have an immense effect on the company's stock performance.
What will the next five years look like? Over the next five years, SpaceX looks likely to continue experiencing breakneck top-line growth as it scales up its AI infrastructure business. That said, the boom almost certainly won't last forever, because the companies that are currently spending the largest sums on computing power are already shifting toward designing their own chips. Rising competition in the AI processor space will likely bring down growth and margins across the industry.
While SpaceX's price-to-sales (P/S) ratio has plunged from roughly 116 in June to 61 today, it still looks very elevated compared to the S&P 500's average P/S ratio of 3.8. Investors might want to wait for more information before considering a long-term position in the stock.
In this video, I will cover CoreWeave and Nebius' latest earnings reports and explain why Nvidia (NVDA +3.03%) is still the king of AI despite the competition. Watch the short video to learn more, consider subscribing, and click the special offer link below.
*Stock prices used were from the trading day of Aug. 11, 2026. The video was published on Aug. 12, 2026.
Neil Rozenbaum has positions in CoreWeave and Nebius Group. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
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The GraniteShares 2x Long AMD Daily ETF (NASDAQ:AMDL) gives you a simple way to double down on one of the semiconductor industry’s biggest potential winners. The fund seeks twice the daily performance of Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction), turning every gain (as well as every loss) into something much larger. That sounds attractive as AMD continues to grow its AI business. The catch is that buying AMDL does not just double your exposure to AMD. It also doubles your exposure to the company’s biggest challenge: catching Nvidia (NASDAQ:NVDA), which still dominates the AI accelerator market.
AMD’s AI Growth Is Real — But Nvidia Is Still the Standard AMD has plenty of momentum. Second-quarter revenue reached a record $11.54 billion, up 50% year over year. Data Center revenue more than doubled to $6.72 billion as demand for EPYC processors and Instinct AI accelerators continues to grow. Management also guided for roughly $13 billion in third-quarter revenue, ahead of Wall Street expectations. Those numbers solidify AMD as a legitimate AI infrastructure company rather than simply a CPU manufacturer.
The challenge is scale. Nvidia generated more than $81 billion of revenue in a single quarter, with its Data Center business continuing to dwarf AMD’s. Nvidia also benefits from its CUDA software ecosystem, networking products, and integrated AI platform that many enterprise customers have already standardized on. While AMD continues to win customers and gain market share, investors are ultimately betting on how quickly that gap can narrow. If AMD’s AI business grows slower than expected, AMDL shareholders will feel that disappointment twice as much.
How AMDL’s 2X Daily Leverage Changes the Investment AMDL seeks to deliver 200% of AMD’s daily return, not twice AMD’s long-term performance. That distinction matters. Because the fund resets its leverage every trading day, returns become path dependent. During strong, sustained rallies, leverage can amplify gains beyond what many investors expect. However, during volatile periods, daily compounding can steadily erode returns even if AMD ultimately finishes near where it started (a phenomenon known as volatility decay).
That risk is especially relevant for AMD. The stock frequently experiences large moves following earnings reports, AI product announcements, hyperscaler contract wins, and developments involving its largest competitor, Nvidia. Those swings become significantly larger inside AMDL. Investors should also remember that the fund carries a substantially higher expense ratio than simply owning AMD shares (current expense ratio = 1.07%), making it better suited for tactical positioning than long-term buy-and-hold investing.
Key Fund Statistics Before investing, it is worth understanding exactly how AMDL is structured. Unlike owning AMD directly, investors are purchasing a leveraged product designed to achieve a specific daily objective. Key fund metrics are included in the table below.
Metric AMDL Inception Date March 4, 2024 Investment Objective 2× Daily AMD Performance Net Assets $1.05B Expense Ratio 1.07% YTD Total Return +236.27% (Compared to +125.70% for AMD) 1-year Total Return +330.02% (Compared to +180.37% for AMD) Since Fund Inception +104.98% (Compared to +135.37% for AMD) Max Historical Drawdown -88.63% What This Means for You AMD continues to execute well. Revenue growth remains impressive, the Data Center business is expanding rapidly, and the company is steadily becoming a larger player in the AI infrastructure space. If AMD continues to gain market share, AMDL can magnify those gains.
However, this ETF also magnifies AMD’s biggest uncertainty. Nvidia remains the industry’s dominant force, and even small disappointments in AMD’s execution can translate into outsized negative swings for AMDL investors. For traders with a strong short-term conviction on AMD, the leverage can be attractive. For long-term investors, owning AMD shares directly is likely the more predictable way to benefit if the company’s AI strategy continues to succeed.
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Michael Intrator, co-founder and chief executive officer of CoreWeave. Bloomberg/Getty Images AI cloud company CoreWeave just offered fresh evidence in one of the biggest debates hanging over the AI boom: How long can AI chips stay useful and keep generating revenue?
The AI cloud company recently signed a contract to rent out Nvidia A100 GPUs well into 2029, CoreWeave Chief Financial Officer Nitin Agrawal told analysts late Tuesday. Nvidia introduced the A100 in 2020.
That means customers are committing to use these chips for running AI about nine years after their launch.
This matters because investors have been fiercely debating how quickly AI hardware loses its economic value. Critics and short sellers have argued that rapid advances from Nvidia could make older chips obsolete within two or three years. If that happened, companies spending billions of dollars on AI infrastructure might have to write down those investments much faster, hurting profits.
CoreWeave's latest deal suggests the opposite may be happening.
"We recently signed an A100 contract that extends into 2029 at an attractive price," Agrawal said. CoreWeave is also "largely sold out" of older generations of Nvidia chips, he added.
I first raised this depreciation risk before CoreWeave went public. Since then, evidence has increasingly suggested that useful GPU lives may be longer than feared. CoreWeave shares have surged since the initial public offering and jumped 20% on Wednesday.
Rental-market data backs up the company's comments. Silicon Data, which tracks GPU prices, says A100 rental rates have held up well after a strong rebound in 2026.
"We are still learning when it comes to the question of economic lifespan of GPUs. It certainly doesn't appear to be 2-3 years as some seem to casually assume," Silicon Data wrote in a post on X on Tuesday.
There are good reasons older GPUs can remain useful.
The newest chips are important for building the most advanced AI models. Once those models are created, companies have many other computing jobs that don't require the latest hardware. Older GPUs can be repurposed for these less demanding tasks and continue generating revenue.
Erwan Menard, a senior vice president at AI infrastructure company Crusoe, told me last year that GPUs can move from one type of work to another as they age. Lambda executive Matt Rowe has said their effective lives can stretch to seven or eight years.
GPUs inevitably break and have to be replaced. That cuts the useful life of a fleet of GPUs. However, observers worrying about depreciation often overlook warranty contracts, Rowe told me late last year. These warranties typically last five years, so if GPUs fail, they are replaced with new ones, extending the life of the overall GPU fleet.
The issue of GPUs' useful lives has become more important as Wall Street pours money into AI infrastructure. Nvidia this week announced partnerships with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs, and KKR aimed at mobilizing more than $500 billion over time.
Those investments depend in part on AI hardware retaining its value for years.
An A100 still attracting customers into 2029 is a powerful test of that assumption, and, so far, an encouraging one.
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Alistair Barr is the author of Business Insider's Tech Memo newsletter and the driving force behind the company's AI Insider franchise. Sign up here. Before that, he was Business Insider's Global Tech Editor and the Big Tech team leader at Bloomberg, following a reporting career at The Wall Street Journal, USA Today, Reuters, and MarketWatch. Alistair covers all things Big Tech, along with startups and venture capital. He writes analysis and columns about topics including AI, cloud computing, data centers, semiconductors, online search, e-commerce, EVs, robotics, and autonomous vehicles.
Artificial Intelligence Cloud Computing Earnings More AI
Nvidia (NVDA +2.84%) may have been one of the greatest stock investments in the history of the market, but that doesn't mean its winning streak can go on forever. It often happens that by the time a stock gets the wider market's notice for a great run-up, its most thrilling gains are already behind it. But that doesn't mean that widely known and popular stocks can't still create shareholder value.
Image source: Nvidia.
So what's happening with Nvidia? It has been following the general trajectory of the S&P 500 for most of the year, and as of this writing, it's up 20% versus 14% for the broader index. That's a fair beat, but it's not on par with the massive gains it's delivered in the past. Let's see what might be on the table for the chip stock in the coming weeks and months.
The gold standard for AI chips Nvidia became a household name after the artificial intelligence (AI) megatrend exploded, but it was a successful business and an excellent investment well before that. In 2021, when AI was still a futuristic concept to most non-techies, Nvidia was a leader in video game hardware, and its stock more than doubled.
ChatGPT was released toward the end of 2022, and Nvidia's graphics processing units (GPUs), originally designed to improve the rendering of video game graphics, quickly became the gold standard for providing the parallel processing power required by generative AI. Since then, Nvidia stock has skyrocketed. Moreover, there's a fairly clear pattern for how Nvidia stock performs through the end of July and what happens through the remainder of the year.
If 2026 follows the general pattern of the past five years, it's likely to end the year higher than it's trading right now, but not by that much. That's been the pattern for the past four years -- with most of the stock's price action occurring in the first seven months. 2021 was an exception -- most of Nvidia's gains came closer to the end of that year.
The epicenter of AI Over the past four years, AI has changed tremendously, with a vast array of large language models and agentic AI services, but Nvidia is still the linchpin. It provides chips and whole infrastructure ecosystems for hyperscaler clients, and it's deeply embedded into their systems -- a condition that creates high barriers to entry for would-be competitors. For its fiscal 2027 second quarter, which ended July 26, management is guiding for 95% revenue growth year over year.
Today's Change
(
2.84
%) $
6.17
Current Price
$
223.67
However, the stock's gains have been slowing down, even as the business speeds up. Nvidia is already the most valuable company in the world by market cap, and Wall Street is being very deliberate about its stock. Even if it beats expectations for fiscal Q2, which is likely, the market's reaction could be muted.
Nvidia (NVDA) is expanding its role in the artificial intelligence industry by helping finance the infrastructure needed to support growing demand, with a $500
NVIDIA (NVDA), the chip giant powering the AI boom, jumped approximately 2.5% in Wednesday morning trading after unveiling an ambitious plan that could throw ev
NVIDIA Corporation (NVDA) shares rise 84,714% since 2000’s first institutional outlier signal.
In this article:NVDA
+3.08%
NVDA’s computer graphics processors, chipsets, and related software are at the forefront of AI, which is why it partnered with financial giants to establish a $500 billion AI infrastructure financing platform to attract third-party capital for AI projects. In its first-quarter fiscal 2027 earnings, the company showed $82 billion in total revenue (an 85% year-over-year gain) of which $75 billion came from data centers, a 74.9% GAAP gross margin, and issued quarterly revenue guidance of $91 billion (plus or minus 2%).
It’s no wonder NVDA shares are up 17% so far this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock.
NVIDIA, a Big Money Favorite Institutional volumes reveal plenty. In the last year, NVDA has enjoyed strong investor demand, which we believe to be institutional support.
Each green bar signals unusually large volumes in NVDA shares. They reflect our proprietary inflow signal, pushing the stock higher:
NVDA shares are up 18.8% in a year thanks to institutional support. Source: www.moneyflows.com Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with NVIDIA.
NVIDIA Fundamental Analysis Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, NVDA has had strong sales and earnings growth:
Also, EPS is estimated to ramp higher this year by +42%.
Now it makes sense why the stock has been generating Big Money interest. NVDA has a track record of strong financial performance.
Marrying great fundamentals with MoneyFlows software has found some big winning stocks over the long term.
NVIDIA has been a top-rated stock at MoneyFlows for years. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
It’s up 84,714% since its first appearance on the rare Outlier 20 report in June 2000 – it’s had 113 total appearances. Institutions keep buying. The blue bars below show when NVDA was a top pick in the last five years – Big Money support matters:
Bursts of outlier institutional inflow signals have sent NVDA shares from below $50 to over $200 in the last five years. Source: www.moneyflows.com Tracking unusual volumes reveals the power of money flows.
This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.
NVIDIA Price Prediction The NVDA action isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no position in NVDA at the time of publication.
If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level and follow our free weekly MoneyFlows insights.
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Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.
As Nvidia Corp. (NASDAQ: NVDA) stock price rallied over 17% between July 29, 2026, and August 12, more Wall Street analysts expect the company’s share to hit a new all-time high (ATH) over the next 12 months.
On August 12, James Schneider, an expert at Goldman Sachs Group Inc. (NYSE: GS), reiterated a ‘Buy’ rating for Nvidia stock. Schneider also maintained the bank’s 12-month price target for NVDA at $285, suggesting a potential 27.66% upside.
Ahead of Nvidia’s quarterly earnings report on August 26, 2026, the firm expects investors to focus on the details of the company’s recently announced $500 billion financing platform with its partners. Additionally, Schneider said that investors should be interested in the shape of the Rubin product ramp in the second half, future gross margin trends, and potential upside from agentic AI to central processing units (CPUs).
Wall Street signals bullish sentiment for Nvidia stock Earlier on Wednesday, Christopher Rolland, an analyst at Susquehanna, reaffirmed a ‘Buy’ rating for Nvidia. He maintained the firm’s 12-month price target for this company at $275, signaling a possible 23.05% uptick.
As such, 37 analysts surveyed by TipRanks have set an average price target for NVDA at $309.94, which represents a likely 38.92% growth trajectory. Worth noting that the highest 12-month price target for NVDA share price is $500, while the lowest is $250.
Over the past six months, NVDA stock price has surged more than 20%, currently retesting a strong supply level at approximately $223.25. As a result, the company had a market capitalization of $5.3 trillion.
NVDA’s 6-month chart. Source: Finbold If Nvidia’s stock price continues its established macro uptrend, these analysts’ targets of a new ATH in the next 12 months could be realized.
Featured image via Shutterstock
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HomeIndustriesComputers/ElectronicsTech StocksTech StocksInvestors are concerned that Alphabet faces a fresh threat from Nvidia’s plans to help fund the AI buildout alongside major Wall Street playersAug. 12, 2026, 2:19 p.m. ET
Alphabet’s artificial-intelligence capabilities have received intense scrutiny in recent weeks as its latest Gemini model experiences delays. Now, another cornerstone of the company’s AI strategy — its in-house hardware — is coming under question thanks to Nvidia’s latest AI financing plans.
After falling 4% on Monday, Alphabet shares GOOGL GOOG shares were down 0.3% in Tuesday’s trading. To some investors, Nvidia’s NVDA $500 billion partnership with Wall Street firms to fund AI-infrastructure development poses a significant headwind to Alphabet’s custom chips, according to Jefferies buy-side analyst Jeffrey Favuzza. By making Nvidia infrastructure available through favorable financing options, the deal could make custom silicon options less attractive for customers.
Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.
Key Takeaways NVIDIA is partnering with six financial firms to mobilize more than $500B of third-party capital.The financing effort aims to ease AI factory funding hurdles and support expansion of computing capacity.NVDA posted 85% revenue growth in fiscal Q1 2027, while Q2 revenues are expected to reach $91 billion. NVIDIA Corporation (NVDA - Free Report) is taking a major step to accelerate the AI infrastructure buildout by partnering with six leading financial institutions to create financing platforms that could mobilize more than $500 billion of third-party capital over time. The partnerships involve Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR.
The initiative could become an important growth catalyst because financing has emerged as a key hurdle for customers seeking to build large AI factories. By connecting customers with long-term capital, NVIDIA aims to make it easier for AI labs, enterprises and AI cloud providers to expand computing capacity. This could translate into stronger demand for NVIDIA’s graphics processing units (GPUs), networking products and software.
The strategy also creates a potentially longer revenue runway. NVIDIA describes its compute as an asset that can remain useful across different customers and workloads, with its CUDA software ecosystem helping extend its economic life. This flexibility could make NVIDIA-based infrastructure more attractive to investors and operators financing large projects.
The $500 billion figure represents capital that financing platforms aim to mobilize, not revenues or funding directly provided by NVIDIA. Still, if the initiative successfully lowers financing barriers, it could expand the number and scale of AI factories using NVIDIA technology. This would strengthen hardware demand while increasing software adoption, potentially supporting NVIDIA’s long-term revenue growth.
In the first quarter of fiscal 2027, NVIDIA’s revenues surged 85% year over year to $81.62 billion. Management’s expectations of $91 billion in revenues for the second quarter indicate year-over-year growth of approximately 95%. The Zacks Consensus Estimate for fiscal 2027 revenues is currently pegged at $387.93 billion, calling for a nearly 80% year-over-year increase.
Could Rivals Challenge NVIDIA’s AI Financing Edge?NVIDIA’s financing strategy could widen its lead, but Advanced Micro Devices, Inc. (AMD - Free Report) and Broadcom Inc. (AVGO - Free Report) are building strong alternatives for customers investing in AI infrastructure.
Advanced Micro Devices’ Data Center business generated $6.72 billion in second-quarter 2026 revenues, up 107% year over year, driven by EPYC CPUs and Instinct GPUs. The company is also expanding large-scale partnerships, including a plan with Meta to deploy up to 6 gigawatts of Instinct GPUs. Advanced Micro Devices and Tata Consultancy Services are co-developing a 200MW deployment of the AMD "Helios" open rack-scale AI architecture in India.
Broadcom is taking a different route by focusing on custom AI accelerators and networking. Its approach allows large technology companies to build chips tailored to specific workloads, potentially reducing reliance on general-purpose GPUs. This could become important as AI infrastructure spending expands and customers look for multiple ways to finance and deploy computing capacity. In the second quarter of fiscal 2026, Broadcom’s revenues soared 48% year over year to $22.19 billion.
NVIDIA, however, has a notable advantage in the financing initiative. The recent collaboration with top financial institutions will potentially make NVIDIA-based AI factories easier to fund.
Advanced Micro Devices and Broadcom can compete through alternative hardware and infrastructure solutions, but NVIDIA’s combination of technology, CUDA software and access to large pools of capital could strengthen its position as AI spending enters another major investment cycle.
NVIDIA’s Price Performance, Valuation and EstimatesShares of NVIDIA have risen around 16.6% year to date, underperforming the Zacks Computer and Technology sector’s gain of 17.7%.
NVIDIA YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, NVDA trades at a forward price-to-earnings ratio of 19.91, below the sector’s average of 21.53.
NVIDIA Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NVIDIA’s fiscal 2027 and 2028 earnings implies a year-over-year increase of approximately 90.6% and 38.3%, respectively. Estimates for fiscal 2027 and 2028 have been revised upward over the past 30 days.
Image Source: Zacks Investment Research
NVIDIA currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nvidia stock NVDA rose early Wednesday as investors appeared to take some comfort from a new financing initiative involving six of Wall Street’s biggest investment firms.
Shares rose around 3% to about $223 in early trading.
The MoUs announced Monday bring together Apollo Global Management, BlackRock, Blackstone, Brookfield Asset Management, Goldman Sachs, and KKR to help mobilize more than $500 billion of third-party capital for AI infrastructure projects.
The arrangement gives Nvidia's customers access to a much larger pool of capital without requiring the chipmaker to fund the entire buildout itself.
The participating financial firms will independently evaluate individual projects and determine how much capital to commit.
That distinction matters because investors have increasingly questioned whether Nvidia’s financing arrangements could create a form of circular financing, in which the company helps customers obtain funding to buy Nvidia's own chips, supporting demand that might otherwise be weaker.
Nvidia's direct financial exposure under the new structure appears more limited than some investors had initially feared.
Morningstar said Nvidia will not provide cash to the financing platform and may instead provide support for the residual value of assets in certain cases.
Nvidia CEO Jensen Huang said the company could provide a "residual-value support mechanism for up to 25% of an opportunity," assessed on a project-by-project basis.
That potentially limits the amount of risk Nvidia takes onto its own balance sheet while allowing outside investors to finance a much larger portion of the AI infrastructure buildout.
Circular financing concerns remainThe financing structure nevertheless comes at a sensitive time for the AI industry.
Hyperscalers, including Alphabet, Amazon, Meta, and Microsoft, have been taking on substantial debt to fund data centers, computing capacity, and AI development.
The growing capital requirements have pushed credit markets to pay closer attention to whether the expected returns from AI infrastructure will justify the spending.
Nvidia has faced additional scrutiny because it has increasingly provided financial support to companies that purchase its hardware.
The company was previously reported to be discussing guarantees of as much as $250 billion to support OpenAI's lease and debt financing for a large data-center project in Ohio.
Those arrangements have raised concerns that financing could help sustain demand for Nvidia's chips even before AI infrastructure generates sufficient cash flow to support the investment.
The new Wall Street partnership is intended to address some of that concern by moving much of the funding responsibility to independent financial institutions.
Analysts remain bullish on Nvidia stockMorningstar maintained its $280 fair value estimate for Nvidia and said the financing partnerships do not change its positive view of the company's long-term growth prospects.
The research firm said Nvidia is using its position at the center of the AI ecosystem to bring additional capital into infrastructure development while expanding access to its chips.
Nvidia remains the dominant supplier of GPUs, networking equipment, and software used to build large-scale AI systems.
The company has also increasingly sought to support the broader ecosystem around its hardware as demand expands beyond the largest cloud providers.
Morningstar continues to view Nvidia's shares as undervalued, arguing that the company's medium- and long-term growth prospects remain underappreciated.
