Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Key Takeaways CBRS had $25.4B in RPO and more than 600 MW of data-center capacity live or contracted by June 30, 2026.CBRS core revenues surged 103% in Q2, while core cloud and other services revenues skyrocketed 287%.CBRS targets gross margins above 60% as owned systems replace higher-cost rented infrastructure. Cerebras Systems (CBRS - Free Report) is benefiting from a substantial backlog and improving operating economics, which are strengthening revenue visibility and supporting investments in artificial intelligence (AI) infrastructure. As of June 30, 2026, CBRS had $25.4 billion in remaining performance obligations (RPO). The company had also secured more than 600 MW of data-center capacity, either live or under contract to be delivered by the end of 2027, while its opportunity pipeline had expanded to gigawatt scale. This capacity buildout should help CBRS convert contracted demand into revenues while competing with NVIDIA (NVDA - Free Report) and Advanced Micro Devices (AMD - Free Report) .
Revenue visibility extends beyond existing RPO. Management cited late-stage hardware deals worth hundreds of millions of dollars and significant new cloud opportunities for 2027. In the second quarter of 2026, core revenues surged 103% year over year to $209.9 million, while core cloud and other services revenues skyrockted 287% to $127.7 million. CBRS expects core revenues to more than triple in 2027 as capacity expands. Profitability trends are also improving. Core gross margin expanded about 940 basis points to 40.6%, while core operating margin improved roughly 2,600 basis points to negative 16%. Management expects gross margins to improve after the third quarter as higher-cost rented systems are replaced with lower-cost CBRS-owned systems, with a longer-term target above 60%.
CBRS also expects disaggregated inference to generate up to five times more tokens per CS system, while throughput could rise more than 20-fold through 2027. Its 5nm architecture and lack of reliance on HBM or CoWoS may reduce supply and cost pressures. With more than $8.6 billion in liquidity and an unused $850 million credit facility, CBRS has substantial flexibility to fund expansion and execute against its backlog.
CBRS Faces Tough CompetitionNVIDIA is challenging CBRS through enormous scale, superior profitability, and strong forward visibility. In the second quarter of fiscal 2027, Data Center revenues reached $89 billion, while cloud industry backlog exceeded $2 trillion. NVIDIA expects fiscal 2028 revenues to grow about 70% despite supply constraints. Its NeoCloud partners are expected to reach 8 GW of installed capacity by year-end, while Vera Rubin has already received purchase orders from every major hyperscaler, AI cloud and system OEM. NVIDIA’s revenue opportunity per gigawatt has expanded from roughly $18 billion with Hopper to $40 billion with Vera Rubin, which is designed to deliver 30 times higher throughput per megawatt and 35 times lower token costs than Grace Blackwell Ultra.
Advanced Micro Devices is also increasing pressure on CBRS. In the second quarter of 2026, AMD’s Data Center revenues surged 107% year over year to $6.7 billion, driven by strong demand for EPYC processors and Instinct GPUs. Advanced Micro Devices has multi-generation gigawatt-scale deployments with OpenAI and Meta, while Anthropic plans to deploy up to 2 gigawatts of MI450 Series GPUs in AMD Helios racks. Helios demand is tracking ahead of Advanced Micro Devices' initial forecast and management expects Data Center revenues to grow well more than 100% in 2027. Helios is designed to deliver up to 15% more throughput at the same rack power and up to 30% more tokens per dollar than the competition, increasing AMD’s competitive presence in fast-inference workloads.
CBRS’ Share Price Performance, Valuation & EstimatesShares of Cerebras Systems have declined 36.7% in the past three months compared with the broader Zacks Business Services sector’s 12.6% decline.
CBRS Stock’s Price Performance
Image Source: Zacks Investment Research
Cerebras Systems currently has a Value Score of D, reflecting outstretched valuation.
Moreover, Wall Street’s consensus price target implies roughly 39.69% upside from current levels.
Price Target chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Cerebras Systems loss is currently pegged at 13 cents per share, unchanged over the past 30 days.
Cerebras Systems currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
"The market is holding its breath for Micron (MU)," says Jeffrey Small, noting it and several macro indicators keeping investors on edge. One of those macro headwinds includes higher interest rates and tentative impacts to earnings growth.
Nvidia stock has hit a wall slightly below its all-time high despite the optimism of the artificial intelligence spending, its cheap valuation, and the mega $150 billion buyback plan. NVDA was trading at $229 on Tuesday, down modestly from the year-to-date high of $236.
NVDA stock is stuck below the all-time high despite the ongoing AI data center buildup. Analysts believe that this buildup will continue, with Bain predicting that spending will jump to $6 trillion in the next few years. A PwC report showed that AI spending will jump to $32 trillion by 2032.
Nvidia is set to benefit from this growth because of its market share in the industry, where its Blackwell chips are used widely by top companies like Microsoft and Amazon.
As a result, its revenue growth is set to keep rising in the coming years. The average estimate among analysts is that its annual revenue will jump by 90% this year to $411 billion. In its recent report, the company said that its annual revenue will rise by 70% next year.
If this trend continues, the real figure will likely be much higher, since Nvidia tends to be highly conservative in its guidance. For example, management excluded its China business from its forecasts. That could change now that China is reportedly considering allowing purchases of Nvidia's advanced chips by top companies like ByteDance and Alibaba.
Meanwhile, there are signs that the company is highly undervalued, with the forward price-to-earnings ratio of 24, much lower than the five-year average of 42. Its rule-of-40 multiple is also highly encouraging.
The company’s forward PEG ratio of 0.47 is much lower than the sector median of 1.25. This valuation explains why the company announced a plan to repurchase shares worth $150 billion this week. In total, the management plans to repurchase shares worth over $235 billion.
Share repurchases are usually bullish because they reduce the number of outstanding shares, boosting its earnings-per-share. It also means that investors will be receiving more dividends.
Potential risks remainNvidia’s underperformance is mostly because of the rising risks. The most notable one is that there is fear of the ongoing artificial intelligence bubble.
Further, its biggest customers are launching their own chips, which may affect its demand and margins over time. OpenAI has unveiled Jalapeno, while Google’s TPU is gaining market share in the computing industry. Amazon and Microsoft’s chips are also doing well.
The company is facing the circular investing risk. This is where it is investing in its customers, who then use the resources to acquire its chips. Most recently, it has organized funding from some of the biggest companies in the United States, like Goldman Sachs and Brookfield.
NVDA stock chart | Source: TradingView
The daily chart shows that NVDA formed a double-bottom pattern at $190 and a neckline at $213, its highest level on July 15 this year. This pattern normally leads to more gains over time.
The stock remains above the 50-day and 100-day Exponential Moving Averages (EMA), which is a highly bullish aspect.
The risk, however, is that it has formed a diamond reversal pattern, which normally leads to a bearish reversal. It has also found substantial resistance near its all-time high.
Therefore, what happens next will be important. A rebound above the resistance level of $236 will confirm the bullish breakout and point to more gains, potentially to $250 and above. On the other hand, a drop below the support of $213 will invalidate the bullish outlook.
Jim Cramer says Nvidia's record buyback authorization is nearly worthless unless management follows a very specific playbook borrowed from a now-retired Apple executive. The difference between a transformative capital return and an expensive illusion comes down to one measurable behavior.
As of the closing bell on Sept. 25, Advanced Micro Devices (AMD +0.83%) finished the week reaching a historic milestone: the semiconductor company punched its ticket to the $1 trillion club. AMD stock has rallied 195% this year while its rival, Nvidia (NVDA +0.68%), has gained closer to 20%.
The disparity between these share price gains feels backwards. Nvidia is bigger than AMD, and it is growing faster. This gap presents an interesting argument right now: is the market overpaying for AMD because it suddenly has a cleaner story, or has AMD's stock price gotten ahead of the company's earnings? Let's dig in and find out.
Image source: The Motley Fool.
Why AMD stock is beating Nvidia in 2026 After an uninspiring 2025, AMD spent the last year landing hyperscaler deals and convincing investors that its Instinct accelerators are no longer an afterthought next to Nvidia. Revenue in the most recent quarter reached $11.5 billion, up about 50% year over year. That is real growth, but it's nowhere near Nvidia.
Nvidia's last quarter featured $96 billion in sales, with the data center segment alone contributing $89 billion and growing 117% year over year. Over the last year, profitability is in a different universe: AMD has made about $6.5 billion in net income over the past 12 months, while Nvidia has generated closer to $193 billion.
NVDA Net Income (TTM) data by YCharts
These figures prove that AMD is not winning meaningful business over Nvidia. Rather, it is simply winning the narrative right now. Investors tend to migrate toward smaller names that can still compound, and they like the idea that cloud buyers are diversifying vendors away from Jensen Huang.
AMD's edge in CPUs is going to erode AMD's premium also comes from its product mix. The company is not just a GPU designer. EPYC processors give AMD a serious CPU franchise in AI server racks, something Nvidia did not really have until recently. The market has been treating AMD's dual-stack approach like a scarcity asset, and it is one of the biggest reasons the company can trade like an unstoppable growth stock even while it trails Nvidia in a distant second place in AI training.
I think that premium is at risk of cracking because Nvidia is quietly expanding outside of its legacy GPU lane. Over the last year, Nvidia's Grace CPUs, which were only launched in 2021, generated over $5 billion in revenue. Meanwhile, the next-generation Vera Rubin CPU architecture is forecast to reach $20 billion in sales next quarter. Nvidia's management says that demand for Vera Rubin currently implies CPU revenue to more than double in fiscal 2028, which would position the company "as one of the world's leading server CPU suppliers."
Premium Feature
Moneyball Superscore
94/100
Today's Change
(
0.83
%) $
5.02
Current Price
$
612.89
The valuation gap shows which stock is positioned for a breakout AMD trades at a price-to-earnings (P/E) ratio of 162. Even on a forward P/E basis, the stock still trades in the ballpark of 51x. To me, AMD is priced to perfection at the moment. While its market cap has nearly tripled this year, earnings have not. At this rate, AMD has almost no room for an earnings miss or it will be at risk of a harsh valuation reset.
Nvidia looks like the opposite setup. The stock trades at 28 times trailing earnings and has a forward P/E around 14 -- its lowest level in a decade. While that might not appear cheap on first glance, consider Nvidia is still growing its data center revenue more than 100% and guiding to about 70% sales growth in fiscal 2028 as the Vera Rubin cycle ramps.
In reality, Nvidia's valuation multiples have compressed while the underlying business kept compounding. This is how breakouts are born: not because the story is new, but because smart investors start to see how the stock price meaningfully lags earnings power.
None of this means AMD is a bad company. It just means the easy money has already been made. After a sprint into the $1 trillion club, AMD now needs to prove its earnings can catch the valuation. By contrast, Nvidia already has the earnings, and it now has a CPU lever that can help its multiple expand once again. That is why Nvidia is the AI semiconductor stock that has more room to run from here, making it a compelling opportunity to buy and hold as AI infrastructure buildouts push on.
Nvidia Corp (NASDAQ:NVDA) is generating enough cash from the AI infrastructure boom to fund its next wave of growth and still put $150 billion behind its own stock.
That makes the buyback more than a capital-allocation headline. It raises a sharper question for investors: Does Nvidia’s valuation justify putting so much cash into NVDA shares?
Nvidia’s Valuation Gets InterestingNvidia’s board approved an additional $150 billion for share repurchases, taking its remaining authorization to $235 billion through fiscal 2028. The company called it the largest increase to its buyback authorization in history.
The valuation backdrop makes the move more interesting. Benzinga Pro data puts Nvidia at 24.8 times forward earnings and 28.9 times trailing earnings, with a price-to-earnings growth, or PEG, ratio of 0.48. The PEG ratio compares a stock’s earnings multiple with its expected earnings growth, offering another way to assess whether a high P/E is supported by rapid profit expansion.
That does not make Nvidia objectively cheap. But it does make the valuation harder to dismiss given the company’s growth.
Evan Schlossman, principal at Neostellar Capital, said Nvidia’s "recent growth significantly outpaces the broader market" while its valuation is broadly comparable with the S&P 500 on a forward-earnings basis.
Importantly, Schlossman stopped short of saying Nvidia considers its shares undervalued. Instead, he pointed to the "combination of growth, cash generation and valuation" as a reason repurchases could be an attractive use of capital.
Read Next
The AI Cash Machine MattersThat cash generation is central to the buyback thesis.
Nvidia CEO Jensen Huang said the company’s "cash generation gives us the capacity to invest in the technologies that advance this transformation and return capital to shareholders." Nvidia framed the move as a reflection of confidence in the long-term AI opportunity.
John Belton, portfolio manager at Gabelli Funds, takes the cash argument further. He said Nvidia’s $235 billion authorization "looks more consistent with half of free cash flow generation expected over the next ~18 months."
That makes the buyback less about Nvidia running out of places to invest and more about the scale of cash it expects the AI cycle to produce.
What Investors Should Watch NextThe key question is whether Nvidia can keep growing earnings and free cash flow fast enough to make the repurchases increasingly meaningful on a per-share basis. A falling share count can amplify earnings growth, but only if the underlying business keeps expanding.
For investors, the next catalyst is therefore not the buyback itself.
Watch Nvidia’s earnings growth, AI infrastructure demand and cash generation. If those continue to outpace the valuation investors are paying, the $150 billion authorization could look less like financial engineering and more like a bet that Nvidia’s AI cash machine still has plenty of runway.
Despite relatively significant volatility, Nvidia (NASDAQ: NVDA) stock has recorded only a modest overall move in September, and Finbold’s predictive machine learning algorithm estimated that such performance will persist by October 15, 2026.
Specifically, after consulting a variety of technical analysis (TA) indicators, including oscillators, moving averages (MA), and the relative strength index (RSI), the Finbold artificial intelligence (AI) agent determined that NVDA shares will rally 3.15% to $236.98 by October 15.
Finbold AI Nvidia stock price prediction for October 15, 2026. Source: Finbold ChatGPT-5.6 Terra proved to be the most bullish among the five models included in the predictive system, and it set its price target at $238.60: 3.85% above the press time price of $229.55 on the morning of September 29.
China’s most recognizable AI, DeepSeek, and Alphabet’s (NASDAQ: GOOGL) model, Google Gemini, were tied at the opposite end of the spectrum with a 2.94% forecasted rise to $236.50.
Finally, OpenAI’s other two variants, GPT-5.7 Luna and GPT-5.6 Sol, came in close to the average, with the former estimating a 2.94% upside to $236.50 and the latter 3.07% to $236.80.
Nvidia stock price performance Elsewhere, Nvidia stock’s latest moves – a 2% rise from the Friday, September 25, closing bell – are arguably surprising given the company’s most recent moves.
Nvidia stock price one-month chart. Source: Finbold Indeed, on Monday, the firm came out with the statement that its board had approved another $150 billion for its share buyback program, taking the total to be repurchased through fiscal year 2028 (FY2028) above $230 billion.
Such programs – especially when they break records as Nvidia’s is – tend to have a substantial impact on the equity due to shifting the balance between supply and demand heavily in favor of existing stockholders.
Still, the relatively modest 2% rise is consistent with NVDA’s performance through 2026. After soaring more than 1,000% between 2022 and the end of 2025, the semiconductor giant slowed down and is up 21.62% year-to-date (YTD).
However, this comparatively modest performance is, by press time on Tuesday, September 29, no cause for particular disappointment for Nvidia’s investors, as they are set to receive the firm’s recently increased dividend already on October 1.
In the long run, however, there may be more cause for anxiety.
As Nvidia’s own disclaimer states, there are no guarantees that the approved NVDA stock buyback program will be completed, and the company’s recent history of making major bullish announcements whenever the AI ‘boom’ narrative turns unstable makes follow-through even more unstable.
Ultimately, the long-term health of the blue-chip technology giant will be decided by the accuracy of recent reporting indicating that most chips the company sold remain unplugged, relative to the veracity of bullish claims made by the captains of the AI industry.
Key Takeaways NVIDIA's $150 billion buyback underscores management's confidence in its AI growth.Strong earnings growth and cash generation support NVIDIA's bullish investment case.NVIDIA-heavy ETFs offer diversified exposure while reducing single-stock risk. NVIDIA (NVDA - Free Report) just sent an unusually strong message to investors: It believes its shares are worth buying.
The AI-chip leader announced a record $150 billion increase in its stock-repurchase authorization, taking its total buyback capacity to $235 billion through 2028. The move comes as NVIDIA continues to generate enormous amounts of cash from the artificial intelligence (AI) boom.
The company has already been aggressively returning capital to its shareholders. NVIDIA repurchased roughly $34 billion of stock in fiscal 2025 and more than $40.4 billion in fiscal 2026. During the first half of fiscal 2027, through July 2026, it bought back another $39 billion, per Yahoo Finance.
That puts NVIDIA's buyback activity well ahead of many other mega-cap technology companies, including Apple, Alphabet and Meta.
Why the Buyback Matters for ShareholdersA large buyback can be particularly meaningful when a company is generating substantial cash. By reducing the number of shares outstanding, NVIDIA can spread its earnings across fewer shares, potentially lifting earnings per share (EPS) over time.
The timing also stands out. NVIDIA's shares have surged alongside the AI boom, but its valuation multiple has compressed as earnings have grown rapidly.
Former Wall Street analyst David Bennett highlighted this dynamic on X, noting that NVIDIA is already trading at a much lower earnings multiple than it did during the earlier stages of the AI rally. In his view, management is effectively using its strong cash generation to support both shareholder returns and continued AI investment, as mentioned on Yahoo Finance.
How Attractive Does NVIDIA Stock Look Now?The stock currently trades at roughly 24 times forward earnings (per Yahoo Finance), only moderately above the S&P 500's approximately 20-times multiple. That valuation looks less demanding when viewed against NVIDIA's growth and its dominant position in AI chips.
NVIDIA stock trades at price/earnings multiple of 32.11 times on a trailing 12-month basis, versus Semiconductor – General industry average of 33.15X.
Of course, a lower multiple doesn't eliminate the risks. Any slowdown in AI infrastructure investment could put pressure on both earnings expectations and the stock.
Still, the latest buyback suggests that management isn't seeing such a slowdown on the horizon. The buyback is also a powerful vote of confidence from CEO Jensen Huang, who said NVIDIA's growth is being driven by a “once-in-a-generation platform shift” toward AI and accelerated computing, cited by Yahoo Finance.
Upbeat Earnings Growth The Zacks Consensus Estimate for the October quarter earnings per share stands at $2.47, up 90% year over year. Sales of $109.0 billion are expected to log 91.2% growth. Nine of 13 analysts raised earnings estimates for the upcoming quarter over the past 30 days, while none went southward. Twelve of 13 analysts upped estimates for the full year.
Strong Financial PositionNVIDIA maintains a robust balance sheet with limited reliance on debt. Its total debt-to-equity ratio stands at just 0.14%, well below the Semiconductor – General industry average of 14.10%. The company generated $74.4 billion in operating cash flow during the first half of fiscal 2027 while returning $46.1 billion to its shareholders.
Upbeat Price TargetBased on short-term price targets offered by 48 analysts, the average price target for Nvidia comes to $327.71. The forecasts range from a low of $180.00 to a high of $515.00. The average price target represents an increase of 45.6% from the closing price of $225.07 recorded on Sept. 25, 2026. NVDA has a Zacks Rank #1 (Strong Buy).
NVDA-Heavy ETFs in Focus NVIDIA is a powerful combination of earnings growth, AI investment and shareholder returns.However, rising rate worries and concerns about the timeline for AI investment payoffs are hurting the tech space occasionally.
Against this backdrop, investors can play the stock with the basket or ETF approach. The ETF approach minimizes company-specific risks. With NVIDIA being a key stock in the AI trade, any negative commentary may hit the stock hard. In this scenario, the ETF approach offers a cushion to investors.
NVIDIA-heavy ETFs include the likes of Global X PureCap MSCI Information Technology ETF (GXPT - Free Report) , Vanguard Information Technology ETF (VGT - Free Report) , Fidelity MSCI Information Technology Index ETF (FTEC - Free Report) , VanEck Technology TruSector ETF (TRUT - Free Report) and iShares Top 20 U.S. Stocks ETF (TOPT - Free Report) . These funds invest in NVIDIA in the range of 14% to 20%.
Nvidia's new Sentry system can monitor and quarantine AI agents that move outside set boundaries. Summary
Nvidia shares were up about 0.6% in premarket trading Tuesday.
Nvidia (NVDA, Financials) is building new technology to keep autonomous AI agents under control, but its approach to AI safety is now facing an unusual challenge from Pope Leo XIV.
Speaking to reporters Monday, Pope Leo questioned the contrast between Nvidia's new safeguards and CEO Jensen Huang's opposition to additional government regulation.
The comments came as Nvidia introduced its Open Agent Safety Platform, which includes OpenShell software and Sentry, a separate hardware-based watchdog designed to monitor AI agents.
Nvidia says Sentry can quarantine an agent within milliseconds if it attempts to move beyond its permitted boundaries.
Huang has argued that AI safety can be addressed through engineering and market forces rather than additional regulation. Earlier this month, he said the industry does not need new AI laws or regulations.
Pope Leo said concerns raised by AI experts should instead be taken seriously, adding to a broader debate over whether technical safeguards alone are enough as AI systems become more autonomous.
The debate is becoming increasingly relevant for Nvidia as it expands beyond selling chips and deeper into the software and infrastructure used to operate AI agents.
Nvidia shares were up about 0.6% in premarket trading Tuesday after closing Monday at $228.86.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
AI data centers are burning through electricity so fast that chip supply is no longer the binding constraint on the industry's growth, and the companies racing to close the gap may not be the ones investors expect.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Artificial intelligence has spent the past several years turning semiconductors into one of the hottest corners of the market. Now the physical world is beginning to push back. AI models may live in the cloud, but the servers running them need enormous amounts of electricity, cooling, transformers, substations, and grid connections. Those pieces cannot be manufactured or permitted at software speed.
That mismatch is becoming one of the defining investment themes of the AI boom. The next constraint on AI growth may not be Nvidia (NASDAQ:NVDA | NVDA Price Prediction) chips at all. It may simply be finding somewhere to plug them in.
AI’s Power Curve Is Going Vertical Morgan Stanley estimates U.S. data center IT power demand will rise from just 9.19 gigawatts (GW) in 2025 to 78.57 GW by 2029 — a 755% increase in four years, and the acceleration starts now.
Demand is expected to nearly double to 17.96 GW in 2026, nearly double again to 35.46 GW in 2027, then reach 52.31 GW in 2028. And increasingly dense AI hardware is making the problem harder.
The investment bank’s September research estimates an Nvidia Vera Rubin rack could require roughly 234 kilowatts of power, while a future Rubin Ultra rack could consume around 600 kW. The firm says the shift toward rack-scale computing helped push its estimate for new U.S. data center power needs during 2026 through 2028 to 97 GW.
Surprisingly, improving chip efficiency does not necessarily solve the problem. Faster chips lower the electricity cost of producing each AI token, making it economical to produce far more tokens. Morgan Stanley estimates tokens generated per watt could rise nearly sixfold between 2025 and 2028, yet total electricity consumption continues climbing.
Forget the chip shortage. The real battle for AI supremacy is moving from silicon to the power grid as demand prepares to surge by 755%. The Grid Can’t Keep Up Here’s where the numbers become uncomfortable.
U.S. Data Center Power, 2026-2028 Capacity Projected power required 97 GW Data centers under construction 21 GW Available grid capacity 19 GW Potential initial shortfall 57 GW Morgan Stanley says alternative supplies such as onsite natural gas generation, fuel cells, and nuclear-related projects could reduce that deficit, but still leave about 33 GW uncovered through 2028.
That does not mean the U.S. is destined for rolling blackouts. It means hyperscalers increasingly cannot assume the grid will provide power whenever a new data center is ready.
Reuters reports that developers are already turning toward smaller onsite gas turbines because they can be deployed faster than traditional grid-connected generation. Enverus Intelligence Research expects 29.6 GW of behind-the-meter gas generation to be added by 2030, with data centers accounting for 88% of it.
The Next AI Winners May Sell Electrons Nvidia remains central to AI computing, but the scarcity value is migrating downstream toward companies that can provide electricity and the equipment needed to deliver it. That puts power equipment companies such as GE Vernova (NYSE:GEV), Eaton (NYSE:ETN), and Vertiv Holdings (NYSE:VRT), along with alternative power providers such as Bloom Energy (NYSE:BE), squarely in the path of the spending wave.
Morgan Stanley itself argues infrastructure and energy constraints should keep AI-enabling companies relevant even as AI adoption spreads into other industries.
Key Takeaway AI’s biggest problem is evolving from getting enough GPUs to getting enough megawatts. A projected 57-GW power gap makes electricity infrastructure one of the clearest second-order AI investment themes.
Smart investors should still watch the chipmakers, but the next leg of the AI boom could increasingly reward the companies building the power plants, transformers, cooling systems, and electrical infrastructure that keep those chips running.
Contact [email protected] for any questions or corrections.
NVIDIA Corp (NASDAQ:NVDA) announced a record-breaking $150 billion stock buyback on Monday. The news sent shares higher and is winning over market experts.
• NVIDIA stock is trading at elevated levels. Where are NVDA shares going?
Gary Black on Nvidia BuybackThe Future Fund Managing Partner Gary Black said the stock buyback increases Nvidia’s total buying power to $235 billion.
"At a current market cap of $5.6 trillion, the buyback will theoretically reduce NVDA market cap by 4.2% over the next 16 months, and potentially increased 2028 Adj EPS by +1.6%, net of interest income on cash to fund the buyback," Black tweeted.
Ross Gerber on Nvidia Buyback"Nvidia announcing the largest stock buyback ever as the stock proves to be way too cheap for Jensen to ignore. Very much like this move!" Gerber Kawasaki CEO Ross Gerber tweeted.
With potential pressure to meet optimistic earnings and revenue forecasts, Nvidia announced a record stock buyback.
Read Next
The company’s board of directors added $150 billion to its existing buyback, which takes the remaining total up to $235 billion. Nvidia said this is the largest share buyback authorization in history.
Nvidia will execute the remaining share buybacks through fiscal 2028.
“Our cash generation gives us the capacity to invest in the technologies that advance this transformation and return capital to shareholders. This authorization reflects our confidence in the long-term opportunity ahead,” Nvidia CEO Jensen Huang said.
News of the buyback comes weeks after CNBC host Jim Cramer called for a $500 billion share buyback from Nvidia and Huang to prove that shares were undervalued.
"It would demonstrate a level of conviction that is much needed right here. At 14x earnings, Nvidia’s stock is the best investment Jensen Huang can make," Cramer said at the time.
Nvidia is expected to announce third-quarter financial results in November, which could allow the company to update on whether it has conducted any purchases of shares in recent months.
Nvidia Stock Price ActionNvidia stock is up 0.79% to $230.67on Tuesday versus a 52-week trading range of $164.27 to $236.54. Nvidia stock is up 22.5% year-to-date in 2026.
Read Next
Image via Shutterstock
Market News and Data brought to you by Benzinga APIs
NVIDIA and AMD both posted massive data center numbers, but the real battle brewing between them has nothing to do with GPUs. A surprising new front is opening that could flip the competitive advantage neither company fully owns yet.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Strong summer quarters from NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) and AMD (NASDAQ:AMD) signal that agentic AI demands more than GPUs. NVIDIA booked $96.22B in Q2 FY2027 revenue; AMD delivered $11.54B. The next fight moves toward server CPUs, where AMD’s EPYC line holds ground NVIDIA is only starting to contest.
Networking Lifts NVIDIA While EPYC Anchors AMD NVIDIA’s Data Center unit brought in $89.02B, up 117% year over year. Networking contributed $40.31B on 138% growth, showing customers buying entire AI factories. According to Jensen Huang, “Now, compute is revenue.” supply remains the ceiling; management can cover about 70% of demand, leaving room for rivals.
AMD’s Data Center revenue reached $6.72B, up 107%, now 58% of sales. Server CPUs posted a fifth consecutive quarter of record revenue. Gaming fell 31% on weaker semi-custom demand.
Business Driver NVIDIA AMD Growth Engine GPU racks plus networking EPYC CPUs plus Instinct GPUs Next Platform Vera Rubin, in full production Helios, shipping from Q3 2026 Non-GAAP Gross Margin 75.0% 56% Agentic AI Turns Server CPUs Into a New Battleground In agentic AI, software agents run continuously and call on tools, leaning on CPUs to manage work. AMD called it “a new growth vector for server CPUs.” Its 2 nanometer EPYC Venice chips claim “more than twice the performance per watt of leading x86 CPUs.” AMD sizes the server CPU market near $220 billion by 2030 and expects server revenue growth more than 80% in the second half of 2026. Management said server CPU supply is “tight right now.”
NVIDIA wants this market too. Grace CPU revenue exceeded $5 billion over the trailing 12 months, and CPU revenue should “more than double in fiscal 28.” AMD sells a lineup: “It’s not just one CPU. It’s actually a real family of CPUs that you need.”
Helios Deliveries Will Show Whether AMD Can Keep Pace Helios pairs Venice with MI450 GPUs and ships in Q4. Anthropic plans to deploy up to two gigawatts starting in the first half of 2027, a sign that every rack has to be powered and cooled by somebody (we rounded up seven suppliers doing exactly that in a free AI infrastructure report). On the NVIDIA side, watch Vera Rubin, expected to make up about 20% of Q3 data center revenue. NVIDIA expects Q4 gross margin of 71% to 72%. AMD also agreed Monday to acquire World Labs, adding integration risk.
Why I Lean Toward NVIDIA and Keep AMD on Watch AMD shares have rose 183.84% year to date versus 23% for NVIDIA. NVIDIA trades near 25x forward earnings; AMD sits near 40x. That premium assumes significant Helios success. NVIDIA offers more earnings power per dollar of valuation. AMD’s EPYC edge looks solid, and agentic AI should benefit it. Before paying that premium, I would want to see Helios yields improve and Venice deployments arrive on time.
Contact [email protected] for any questions or corrections.
SCS Capital Management LLC trimmed its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 5.4% in the second quarter, according to its most recent filing with the SEC. The firm owned 150,437 shares of the computer hardware maker’s stock after selling 8,590 shares during the period. SCS Capital Management LLC’s holdings in NVIDIA were worth $30,101,000 as of its most recent filing with the SEC.
Several other hedge funds and other institutional investors have also modified their holdings of NVDA. LightSquare Wealth Management LLC lifted its holdings in shares of NVIDIA by 0.3% during the second quarter. LightSquare Wealth Management LLC now owns 18,695 shares of the computer hardware maker’s stock valued at $3,741,000 after acquiring an additional 49 shares during the period. Defender Capital LLC. lifted its position in shares of NVIDIA by 0.7% during the second quarter. Defender Capital LLC. now owns 7,534 shares of the computer hardware maker’s stock worth $1,507,000 after purchasing an additional 50 shares in the last quarter. Kooman & Associates boosted its position in NVIDIA by 0.6% in the 2nd quarter. Kooman & Associates now owns 8,464 shares of the computer hardware maker’s stock valued at $1,694,000 after buying an additional 50 shares during the last quarter. Roof Eidam Maycock Peralta LLC boosted its holdings in NVIDIA by 0.3% in the second quarter. Roof Eidam Maycock Peralta LLC now owns 18,827 shares of the computer hardware maker’s stock valued at $3,767,000 after acquiring an additional 50 shares during the last quarter. Finally, Persium Advisors LLC boosted its stake in shares of NVIDIA by 3.5% in the 2nd quarter. Persium Advisors LLC now owns 1,466 shares of the computer hardware maker’s stock valued at $293,000 after purchasing an additional 50 shares during the last quarter. Institutional investors own 65.27% of the company’s stock.
Insider Buying and Selling In other news, Director Mark A. Stevens sold 622,239 shares of NVIDIA stock in a transaction on Friday, September 4th. The stock was sold at an average price of $231.62, for a total value of $144,122,997.18. Following the transaction, the director owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. This trade represents a 21.03% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Timothy S. Teter sold 30,460 shares of NVIDIA stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $222.80, for a total value of $6,786,488.00. Following the completion of the transaction, the executive vice president owned 2,687,660 shares in the company, valued at approximately $598,810,648. This represents a 1.12% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,766,118 shares of company stock valued at $399,450,353 over the last quarter. 3.94% of the stock is owned by company insiders.
NVIDIA News Summary Here are the key news stories impacting NVIDIA this week: Positive Sentiment: Record buyback signals confidence and may support earnings per share. NVIDIA authorized an additional $150 billion in share repurchases, bringing the remaining program to $235 billion through fiscal 2028—the largest increase in its history. The move highlights the company’s substantial cash generation and could reduce the share count over time. Nvidia adds $150 billion to existing share repurchase plan Positive Sentiment: Possible reopening of China demand provides an additional sales catalyst. Chinese officials reportedly asked ByteDance and Alibaba to outline potential purchases of NVIDIA’s RTX PRO 5500 processors, suggesting Beijing may permit selected companies to buy some NVIDIA chips despite U.S. export restrictions. Any approval would expand NVIDIA’s addressable market, although the policy remains unconfirmed. China weighs letting ByteDance and Alibaba buy new Nvidia chips Positive Sentiment: AI safety platform broadens NVIDIA’s software opportunity. The company launched its Open Agent Safety Platform, including tools that isolate AI agents, enforce access policies, monitor behavior, and shut down violations. The initiative addresses high-profile AI security incidents and could strengthen NVIDIA’s software ecosystem while encouraging safer enterprise adoption. Nvidia releases software platform to stop AI agents from misbehaving Positive Sentiment: Advanced packaging could increase future chip capacity. NVIDIA is reportedly exploring glass substrates to build larger packages with denser connections and more high-bandwidth memory. The technology could help address scaling constraints, though rising HBM prices make packaging economics increasingly important. Nvidia’s Glass Packaging Push Could Reshape AI Chips Neutral Sentiment: Technical analysts see further upside but require a breakout. One forecast identifies $261.84–$265.30 as a potential target if NVDA clears approximately $234.76. This is market sentiment rather than a fundamental change and depends on continued momentum. NVIDIA Stock Forecast: Breakout Could Unlock $265 Target Negative Sentiment: Macro and valuation risks remain. Oil above $106 and Treasury yields above 5.20% pressured technology stocks, while NVIDIA’s multitrillion-dollar valuation leaves little room for execution or demand disappointments. Negative Sentiment: Competition and concentration could limit long-term returns. Hyperscalers and AI laboratories are developing proprietary chips, while most of NVIDIA’s revenue remains tied to data-center demand. Investors must also monitor energy costs, HBM prices, export controls, and whether AI spending ultimately produces sufficient returns. NVIDIA Stock Performance NASDAQ:NVDA opened at $228.86 on Tuesday. NVIDIA Corporation has a 1-year low of $164.27 and a 1-year high of $236.54. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14. The stock has a market cap of $5.52 trillion, a P/E ratio of 28.93, a PEG ratio of 1.74 and a beta of 2.22. The stock has a 50 day simple moving average of $217.03 and a 200 day simple moving average of $206.33.
NVIDIA (NASDAQ:NVDA – Get Free Report) last released its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping analysts’ consensus estimates of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The business had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. During the same period last year, the firm earned $1.05 earnings per share. NVIDIA’s revenue for the quarter was up 105.9% compared to the same quarter last year. Research analysts anticipate that NVIDIA Corporation will post 9.25 earnings per share for the current year.
NVIDIA declared that its Board of Directors has initiated a share repurchase program on Monday, September 28th that permits the company to repurchase $150.00 billion in shares. This repurchase authorization permits the computer hardware maker to reacquire up to 2.8% of its shares through open market purchases. Shares repurchase programs are generally an indication that the company’s leadership believes its shares are undervalued.
NVIDIA Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th will be given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date is Thursday, September 10th. NVIDIA’s dividend payout ratio is presently 12.64%.
Analysts Set New Price Targets Several research firms have recently issued reports on NVDA. Oppenheimer set a $315.00 price target on NVIDIA and gave the stock an “outperform” rating in a research report on Thursday, August 27th. KGI Securities upped their price target on shares of NVIDIA from $335.00 to $345.00 in a report on Thursday, August 27th. BMO Capital Markets set a $340.00 price objective on NVIDIA and gave the stock an “outperform” rating in a report on Thursday, August 20th. William Blair reaffirmed an “outperform” rating on shares of NVIDIA in a research report on Tuesday, June 2nd. Finally, Wedbush boosted their price target on NVIDIA from $330.00 to $345.00 and gave the stock an “outperform” rating in a research report on Thursday, August 27th. Four equities research analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Buy” and a consensus price target of $324.14.
Read Our Latest Stock Analysis on NVIDIA
NVIDIA Company Profile (Free Report)
NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.
The company’s products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.
See Also Five stocks we like better than NVIDIA Six Flags Launches FlexPay—Is There Any FUN Left in the Stock? Brewing Trouble? Starbucks Spills the Beans on 250 Store Closures Stitch Fix Stock Plunges as Guidance Puts the Turnaround on Pause Harley-Davidson Insiders Are Buying: Is HOG Finally Turning Around? Want to see what other hedge funds are holding NVDA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVIDIA Corporation (NASDAQ:NVDA – Free Report).
Receive News & Ratings for NVIDIA Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NVIDIA and related companies with MarketBeat.com's FREE daily email newsletter.
Trivium Point Advisory LLC boosted its stake in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 44.4% during the 2nd quarter, according to its most recent filing with the SEC. The firm owned 247,081 shares of the computer hardware maker’s stock after purchasing an additional 75,934 shares during the period. NVIDIA makes up approximately 4.5% of Trivium Point Advisory LLC’s portfolio, making the stock its 3rd biggest holding. Trivium Point Advisory LLC’s holdings in NVIDIA were worth $49,438,000 as of its most recent filing with the SEC.
Other institutional investors have also modified their holdings of the company. Bank of America Corp DE grew its holdings in NVIDIA by 2.1% during the first quarter. Bank of America Corp DE now owns 191,200,989 shares of the computer hardware maker’s stock worth $33,345,453,000 after acquiring an additional 4,019,505 shares during the period. Invesco Ltd. lifted its holdings in NVIDIA by 0.3% in the fourth quarter. Invesco Ltd. now owns 143,239,504 shares of the computer hardware maker’s stock valued at $26,714,167,000 after acquiring an additional 446,178 shares during the period. J. Stern & Co. LLP boosted its position in NVIDIA by 13,709.1% in the 4th quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker’s stock worth $23,454,297,000 after purchasing an additional 124,849,603 shares in the last quarter. Amundi boosted its position in NVIDIA by 10.4% in the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock worth $23,329,141,000 after purchasing an additional 12,575,177 shares in the last quarter. Finally, Dimensional Fund Advisors LP grew its stake in shares of NVIDIA by 0.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 94,521,253 shares of the computer hardware maker’s stock worth $16,479,126,000 after purchasing an additional 555,221 shares during the period. Hedge funds and other institutional investors own 65.27% of the company’s stock.
NVIDIA News Roundup Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: Record buyback signals confidence and may support earnings per share. NVIDIA authorized an additional $150 billion in share repurchases, bringing the remaining program to $235 billion through fiscal 2028—the largest increase in its history. The move highlights the company’s substantial cash generation and could reduce the share count over time. Nvidia adds $150 billion to existing share repurchase plan Positive Sentiment: Possible reopening of China demand provides an additional sales catalyst. Chinese officials reportedly asked ByteDance and Alibaba to outline potential purchases of NVIDIA’s RTX PRO 5500 processors, suggesting Beijing may permit selected companies to buy some NVIDIA chips despite U.S. export restrictions. Any approval would expand NVIDIA’s addressable market, although the policy remains unconfirmed. China weighs letting ByteDance and Alibaba buy new Nvidia chips Positive Sentiment: AI safety platform broadens NVIDIA’s software opportunity. The company launched its Open Agent Safety Platform, including tools that isolate AI agents, enforce access policies, monitor behavior, and shut down violations. The initiative addresses high-profile AI security incidents and could strengthen NVIDIA’s software ecosystem while encouraging safer enterprise adoption. Nvidia releases software platform to stop AI agents from misbehaving Positive Sentiment: Advanced packaging could increase future chip capacity. NVIDIA is reportedly exploring glass substrates to build larger packages with denser connections and more high-bandwidth memory. The technology could help address scaling constraints, though rising HBM prices make packaging economics increasingly important. Nvidia’s Glass Packaging Push Could Reshape AI Chips Neutral Sentiment: Technical analysts see further upside but require a breakout. One forecast identifies $261.84–$265.30 as a potential target if NVDA clears approximately $234.76. This is market sentiment rather than a fundamental change and depends on continued momentum. NVIDIA Stock Forecast: Breakout Could Unlock $265 Target Negative Sentiment: Macro and valuation risks remain. Oil above $106 and Treasury yields above 5.20% pressured technology stocks, while NVIDIA’s multitrillion-dollar valuation leaves little room for execution or demand disappointments. Negative Sentiment: Competition and concentration could limit long-term returns. Hyperscalers and AI laboratories are developing proprietary chips, while most of NVIDIA’s revenue remains tied to data-center demand. Investors must also monitor energy costs, HBM prices, export controls, and whether AI spending ultimately produces sufficient returns. NVIDIA Stock Performance NASDAQ:NVDA opened at $228.86 on Tuesday. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. The company has a fifty day moving average of $217.03 and a two-hundred day moving average of $206.33. The stock has a market capitalization of $5.52 trillion, a PE ratio of 28.93, a P/E/G ratio of 1.74 and a beta of 2.22. NVIDIA Corporation has a fifty-two week low of $164.27 and a fifty-two week high of $236.54. NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The business had revenue of $96.22 billion for the quarter, compared to the consensus estimate of $92.27 billion. During the same period last year, the firm posted $1.05 earnings per share. The company’s revenue was up 105.9% compared to the same quarter last year. As a group, research analysts forecast that NVIDIA Corporation will post 9.25 earnings per share for the current fiscal year.
NVIDIA Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be paid a $0.25 dividend. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a yield of 0.4%. NVIDIA’s dividend payout ratio (DPR) is currently 12.64%.
NVIDIA declared that its board has approved a stock buyback plan on Monday, September 28th that permits the company to repurchase $150.00 billion in shares. This repurchase authorization permits the computer hardware maker to purchase up to 2.8% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s board believes its shares are undervalued.
Analyst Upgrades and Downgrades Several equities analysts have recently weighed in on NVDA shares. Wall Street Zen lowered shares of NVIDIA from a “strong-buy” rating to a “buy” rating in a report on Saturday. Morgan Stanley set a $300.00 price target on shares of NVIDIA and gave the company an “overweight” rating in a research report on Thursday, August 27th. Citigroup reaffirmed a “buy” rating and issued a $315.00 price objective (up from $300.00) on shares of NVIDIA in a report on Thursday, August 27th. Truist Financial upped their price objective on shares of NVIDIA from $307.00 to $346.00 and gave the stock a “buy” rating in a research report on Thursday, August 27th. Finally, Rothschild & Co Redburn increased their target price on shares of NVIDIA from $300.00 to $325.00 in a research note on Thursday, August 27th. Four investment analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and one has assigned a Hold rating to the company. Based on data from MarketBeat, NVIDIA has a consensus rating of “Buy” and a consensus target price of $324.14.
Check Out Our Latest Analysis on NVIDIA
Insider Activity at NVIDIA In other NVIDIA news, EVP Timothy S. Teter sold 30,460 shares of the stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the completion of the transaction, the executive vice president owned 2,687,660 shares of the company’s stock, valued at $598,810,648. This represents a 1.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 622,239 shares of the firm’s stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $231.62, for a total value of $144,122,997.18. Following the completion of the transaction, the director owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. This trade represents a 21.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 1,766,118 shares of company stock valued at $399,450,353. 3.94% of the stock is owned by corporate insiders.
NVIDIA Company Profile (Free Report)
NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.
The company’s products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.
Featured Stories Five stocks we like better than NVIDIA Six Flags Launches FlexPay—Is There Any FUN Left in the Stock? Brewing Trouble? Starbucks Spills the Beans on 250 Store Closures Stitch Fix Stock Plunges as Guidance Puts the Turnaround on Pause Harley-Davidson Insiders Are Buying: Is HOG Finally Turning Around?
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.
Tillman Hartley LLC cut its holdings in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 57.9% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 3,064 shares of the computer hardware maker’s stock after selling 4,214 shares during the quarter. NVIDIA makes up approximately 0.1% of Tillman Hartley LLC’s portfolio, making the stock its 18th largest holding. Tillman Hartley LLC’s holdings in NVIDIA were worth $613,000 as of its most recent SEC filing.
A number of other hedge funds have also modified their holdings of NVDA. Heritage Trust Co raised its position in shares of NVIDIA by 1.1% during the 2nd quarter. Heritage Trust Co now owns 54,334 shares of the computer hardware maker’s stock worth $10,872,000 after purchasing an additional 603 shares during the last quarter. Gould Asset Management LLC CA lifted its stake in NVIDIA by 8.0% in the 2nd quarter. Gould Asset Management LLC CA now owns 5,680 shares of the computer hardware maker’s stock valued at $1,137,000 after buying an additional 419 shares in the last quarter. Arrowroot Family Office LLC grew its holdings in NVIDIA by 69.2% during the 2nd quarter. Arrowroot Family Office LLC now owns 10,375 shares of the computer hardware maker’s stock valued at $2,076,000 after buying an additional 4,245 shares during the last quarter. Argent Trust Co increased its position in NVIDIA by 8.0% during the second quarter. Argent Trust Co now owns 226,945 shares of the computer hardware maker’s stock worth $45,409,000 after buying an additional 16,726 shares in the last quarter. Finally, J.Safra Asset Management Corp increased its position in NVIDIA by 18.8% during the second quarter. J.Safra Asset Management Corp now owns 139,966 shares of the computer hardware maker’s stock worth $28,006,000 after buying an additional 22,106 shares in the last quarter. 65.27% of the stock is owned by hedge funds and other institutional investors.
NVIDIA Price Performance Shares of NASDAQ:NVDA opened at $228.86 on Tuesday. The company has a market cap of $5.52 trillion, a P/E ratio of 28.93, a P/E/G ratio of 1.74 and a beta of 2.22. The business has a fifty day simple moving average of $217.03 and a 200-day simple moving average of $206.33. NVIDIA Corporation has a 52 week low of $164.27 and a 52 week high of $236.54. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14.
NVIDIA (NASDAQ:NVDA – Get Free Report) last released its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, topping the consensus estimate of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%.The firm had revenue of $96.22 billion for the quarter, compared to the consensus estimate of $92.27 billion. During the same period in the prior year, the business posted $1.05 earnings per share. The firm’s revenue for the quarter was up 105.9% compared to the same quarter last year. Equities research analysts forecast that NVIDIA Corporation will post 9.25 EPS for the current year. NVIDIA declared that its Board of Directors has authorized a share repurchase plan on Monday, September 28th that allows the company to buyback $150.00 billion in outstanding shares. This buyback authorization allows the computer hardware maker to purchase up to 2.8% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.
NVIDIA Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th will be paid a dividend of $0.25 per share. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a yield of 0.4%. NVIDIA’s dividend payout ratio (DPR) is currently 12.64%.
Insider Activity In other NVIDIA news, Director Mark A. Stevens sold 622,239 shares of the business’s stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the completion of the sale, the director owned 2,336,531 shares of the company’s stock, valued at approximately $541,187,310.22. The trade was a 21.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Timothy S. Teter sold 30,460 shares of the firm’s stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $222.80, for a total value of $6,786,488.00. Following the completion of the transaction, the executive vice president owned 2,687,660 shares in the company, valued at approximately $598,810,648. This trade represents a 1.12% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,766,118 shares of company stock valued at $399,450,353 in the last ninety days. Company insiders own 3.94% of the company’s stock.
Trending Headlines about NVIDIA Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: Record buyback signals confidence and may support earnings per share. NVIDIA authorized an additional $150 billion in share repurchases, bringing the remaining program to $235 billion through fiscal 2028—the largest increase in its history. The move highlights the company’s substantial cash generation and could reduce the share count over time. Nvidia adds $150 billion to existing share repurchase plan Positive Sentiment: Possible reopening of China demand provides an additional sales catalyst. Chinese officials reportedly asked ByteDance and Alibaba to outline potential purchases of NVIDIA’s RTX PRO 5500 processors, suggesting Beijing may permit selected companies to buy some NVIDIA chips despite U.S. export restrictions. Any approval would expand NVIDIA’s addressable market, although the policy remains unconfirmed. China weighs letting ByteDance and Alibaba buy new Nvidia chips Positive Sentiment: AI safety platform broadens NVIDIA’s software opportunity. The company launched its Open Agent Safety Platform, including tools that isolate AI agents, enforce access policies, monitor behavior, and shut down violations. The initiative addresses high-profile AI security incidents and could strengthen NVIDIA’s software ecosystem while encouraging safer enterprise adoption. Nvidia releases software platform to stop AI agents from misbehaving Positive Sentiment: Advanced packaging could increase future chip capacity. NVIDIA is reportedly exploring glass substrates to build larger packages with denser connections and more high-bandwidth memory. The technology could help address scaling constraints, though rising HBM prices make packaging economics increasingly important. Nvidia’s Glass Packaging Push Could Reshape AI Chips Neutral Sentiment: Technical analysts see further upside but require a breakout. One forecast identifies $261.84–$265.30 as a potential target if NVDA clears approximately $234.76. This is market sentiment rather than a fundamental change and depends on continued momentum. NVIDIA Stock Forecast: Breakout Could Unlock $265 Target Negative Sentiment: Macro and valuation risks remain. Oil above $106 and Treasury yields above 5.20% pressured technology stocks, while NVIDIA’s multitrillion-dollar valuation leaves little room for execution or demand disappointments. Negative Sentiment: Competition and concentration could limit long-term returns. Hyperscalers and AI laboratories are developing proprietary chips, while most of NVIDIA’s revenue remains tied to data-center demand. Investors must also monitor energy costs, HBM prices, export controls, and whether AI spending ultimately produces sufficient returns. Analyst Ratings Changes NVDA has been the subject of a number of analyst reports. China Renaissance boosted their price target on NVIDIA from $319.00 to $330.00 and gave the stock a “buy” rating in a report on Monday, August 31st. Sanford C. Bernstein reiterated a “buy” rating on shares of NVIDIA in a research report on Monday, September 21st. Wells Fargo & Company reissued an “overweight” rating and issued a $315.00 target price on shares of NVIDIA in a research note on Tuesday, August 11th. The Goldman Sachs Group restated a “buy” rating on shares of NVIDIA in a report on Thursday, September 10th. Finally, Itau BBA Securities decreased their price target on shares of NVIDIA from $256.00 to $218.00 in a research note on Wednesday, June 24th. Four analysts have rated the stock with a Strong Buy rating, fifty have issued a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat, the company has an average rating of “Buy” and an average price target of $324.14.
View Our Latest Research Report on NVDA
About NVIDIA (Free Report)
NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.
The company’s products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.
Featured Stories Five stocks we like better than NVIDIA Six Flags Launches FlexPay—Is There Any FUN Left in the Stock? Brewing Trouble? Starbucks Spills the Beans on 250 Store Closures Stitch Fix Stock Plunges as Guidance Puts the Turnaround on Pause Harley-Davidson Insiders Are Buying: Is HOG Finally Turning Around? Want to see what other hedge funds are holding NVDA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVIDIA Corporation (NASDAQ:NVDA – Free Report).
Receive News & Ratings for NVIDIA Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NVIDIA and related companies with MarketBeat.com's FREE daily email newsletter.
Wilkinson Global Asset Management LLC lessened its holdings in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 2.6% during the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 448,949 shares of the computer hardware maker’s stock after selling 11,867 shares during the period. NVIDIA makes up approximately 7.1% of Wilkinson Global Asset Management LLC’s portfolio, making the stock its biggest holding. Wilkinson Global Asset Management LLC’s holdings in NVIDIA were worth $89,830,000 at the end of the most recent quarter.
Several other institutional investors also recently modified their holdings of the business. Lifetime Wealth Management P.C. purchased a new position in NVIDIA in the fourth quarter worth $26,000. Longview Financial Advisors Inc. bought a new stake in shares of NVIDIA during the 1st quarter worth $27,000. Langley Wealth Management LLC purchased a new position in shares of NVIDIA in the 2nd quarter worth about $34,000. Phillip James Consulting Co. purchased a new position in shares of NVIDIA in the 1st quarter worth about $40,000. Finally, Frankly Finances LLC bought a new position in NVIDIA during the second quarter valued at about $60,000. 65.27% of the stock is owned by institutional investors.
NVIDIA News Summary Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: Record buyback signals confidence and may support earnings per share. NVIDIA authorized an additional $150 billion in share repurchases, bringing the remaining program to $235 billion through fiscal 2028—the largest increase in its history. The move highlights the company’s substantial cash generation and could reduce the share count over time. Nvidia adds $150 billion to existing share repurchase plan Positive Sentiment: Possible reopening of China demand provides an additional sales catalyst. Chinese officials reportedly asked ByteDance and Alibaba to outline potential purchases of NVIDIA’s RTX PRO 5500 processors, suggesting Beijing may permit selected companies to buy some NVIDIA chips despite U.S. export restrictions. Any approval would expand NVIDIA’s addressable market, although the policy remains unconfirmed. China weighs letting ByteDance and Alibaba buy new Nvidia chips Positive Sentiment: AI safety platform broadens NVIDIA’s software opportunity. The company launched its Open Agent Safety Platform, including tools that isolate AI agents, enforce access policies, monitor behavior, and shut down violations. The initiative addresses high-profile AI security incidents and could strengthen NVIDIA’s software ecosystem while encouraging safer enterprise adoption. Nvidia releases software platform to stop AI agents from misbehaving Positive Sentiment: Advanced packaging could increase future chip capacity. NVIDIA is reportedly exploring glass substrates to build larger packages with denser connections and more high-bandwidth memory. The technology could help address scaling constraints, though rising HBM prices make packaging economics increasingly important. Nvidia’s Glass Packaging Push Could Reshape AI Chips Neutral Sentiment: Technical analysts see further upside but require a breakout. One forecast identifies $261.84–$265.30 as a potential target if NVDA clears approximately $234.76. This is market sentiment rather than a fundamental change and depends on continued momentum. NVIDIA Stock Forecast: Breakout Could Unlock $265 Target Negative Sentiment: Macro and valuation risks remain. Oil above $106 and Treasury yields above 5.20% pressured technology stocks, while NVIDIA’s multitrillion-dollar valuation leaves little room for execution or demand disappointments. Negative Sentiment: Competition and concentration could limit long-term returns. Hyperscalers and AI laboratories are developing proprietary chips, while most of NVIDIA’s revenue remains tied to data-center demand. Investors must also monitor energy costs, HBM prices, export controls, and whether AI spending ultimately produces sufficient returns. NVIDIA Stock Up 1.7% NVIDIA stock opened at $228.86 on Tuesday. The firm has a 50 day simple moving average of $217.03 and a 200 day simple moving average of $206.33. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14. NVIDIA Corporation has a 1-year low of $164.27 and a 1-year high of $236.54. The firm has a market capitalization of $5.52 trillion, a price-to-earnings ratio of 28.93, a P/E/G ratio of 1.74 and a beta of 2.22. NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%.The firm had revenue of $96.22 billion for the quarter, compared to the consensus estimate of $92.27 billion. During the same quarter in the prior year, the business posted $1.05 earnings per share. The business’s quarterly revenue was up 105.9% on a year-over-year basis. On average, analysts predict that NVIDIA Corporation will post 9.25 earnings per share for the current year.
NVIDIA declared that its Board of Directors has approved a stock buyback plan on Monday, September 28th that permits the company to repurchase $150.00 billion in shares. This repurchase authorization permits the computer hardware maker to repurchase up to 2.8% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s board of directors believes its shares are undervalued.
NVIDIA Dividend Announcement The business also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th will be paid a $0.25 dividend. The ex-dividend date is Thursday, September 10th. This represents a $1.00 annualized dividend and a yield of 0.4%. NVIDIA’s dividend payout ratio (DPR) is currently 12.64%.
Insiders Place Their Bets In other news, EVP Timothy S. Teter sold 30,460 shares of the stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $222.80, for a total value of $6,786,488.00. Following the sale, the executive vice president directly owned 2,687,660 shares of the company’s stock, valued at approximately $598,810,648. This represents a 1.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 622,239 shares of the firm’s stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the completion of the transaction, the director owned 2,336,531 shares of the company’s stock, valued at $541,187,310.22. This trade represents a 21.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 1,766,118 shares of company stock worth $399,450,353 in the last quarter. 3.94% of the stock is owned by company insiders.
Analyst Upgrades and Downgrades A number of research analysts have weighed in on NVDA shares. Rosenblatt Securities reiterated a “buy” rating and issued a $390.00 target price on shares of NVIDIA in a research note on Friday, September 4th. Raymond James Financial set a $515.00 price target on shares of NVIDIA and gave the stock a “strong-buy” rating in a report on Thursday, August 27th. Needham & Company LLC reiterated a “buy” rating and issued a $300.00 price objective on shares of NVIDIA in a research note on Friday, September 4th. DZ Bank restated a “buy” rating on shares of NVIDIA in a research note on Wednesday, August 26th. Finally, President Capital upped their price target on NVIDIA from $295.00 to $330.00 in a research report on Thursday, August 27th. Four analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Buy” and a consensus price target of $324.14.
Get Our Latest Stock Analysis on NVIDIA
NVIDIA Profile (Free Report)
NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.
The company’s products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.
Featured Articles Five stocks we like better than NVIDIA Six Flags Launches FlexPay—Is There Any FUN Left in the Stock? Brewing Trouble? Starbucks Spills the Beans on 250 Store Closures Stitch Fix Stock Plunges as Guidance Puts the Turnaround on Pause Harley-Davidson Insiders Are Buying: Is HOG Finally Turning Around? Want to see what other hedge funds are holding NVDA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVIDIA Corporation (NASDAQ:NVDA – Free Report).
Receive News & Ratings for NVIDIA Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NVIDIA and related companies with MarketBeat.com's FREE daily email newsletter.
ATLANTA--(BUSINESS WIRE)---- $QMLS #NASDAQ--QumulusAI (Nasdaq: QMLS), a neocloud infrastructure provider purpose-built for the AI computing era, today announced two three-year take or pay agreements with AI inference customers. The agreements have combined contracted value of $240.9 million and cover more than 2,000 NVIDIA Blackwell B300 GPUs across two dedicated clusters.$211.9 million, three years: an AI inference platform that helps companies deploy large language models, vision models, speech models and other.
Key Takeaways NVIDIA adds $150 billion to its buyback program, the largest increase in history.NVIDIA plans to execute its $235 billion remaining buyback capacity through fiscal 2028.Strong AI demand and cash generation support investments and shareholder returns. NVIDIA Corporation (NVDA - Free Report) has announced a massive expansion of its share repurchase program on Sept. 28, authorizing an additional $150 billion for stock buybacks. The move represents the largest increase in a share repurchase authorization in history, surpassing Apple Inc.’s (AAPL) $110 billion authorization in 2024.
The new authorization increases NVIDIA’s remaining buyback capacity to $235 billion. The company said it expects to execute the entire remaining program through fiscal 2028, giving it substantial flexibility to return capital to shareholders while continuing to invest heavily in artificial intelligence (AI) and accelerated computing.
AI Growth and Capital ReturnsNVIDIA CEO Jensen Huang said the company’s growth is being driven by a major shift toward AI and accelerated computing. He added that strong cash generation provides the capacity to invest in technologies supporting this transformation while also returning capital to shareholders.
The announcement comes as NVIDIA continues to benefit from robust demand for its AI processors, networking products and related technologies. Growing cash generation has enabled the company to increase capital returns while maintaining significant investment in its broader AI ecosystem.
Stock Rises on Buyback NewsNVIDIA’s shares gained 1.7% on Sept. 28 following the announcement, outperforming several other major technology stocks. The record buyback underscores management’s confidence in the company’s long-term growth prospects while providing additional support for shareholder returns.
Comparison With PeersNvidia, which currently boasts a Zacks Rank #1 (Strong Buy), is part of the Zacks Semiconductor - General industry. NVDA’s shares have surged 22.7% year to date compared with 30.2% growth for the industry. Intel Corporation (INTC - Free Report) and Texas Instruments Incorporated (TXN - Free Report) , two of NVDA’s peers from the same industry, have gained 214% and 60.6% in the period, respectively. Both INTC and TXN currently carry a #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bottom LineNVIDIA’s record $150 billion buyback expansion highlights its strong cash-generation capacity amid sustained AI demand. However, NVDA’s 22.7% year-to-date gain trails the Semiconductor-General industry, while peers Intel and Texas Instruments have delivered stronger returns.
Nvidia's earnings estimates have sprinted far ahead of its share price, and one upcoming product ramp could rewrite the revenue math entirely. Here is how the numbers stack up for the next two years.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
By September 27, 2028, NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) will close at or above $335 per share. At today’s share count of 24.147 billion, that works out to a market value of about $8.09 trillion.
The stock closed at $225.07 on September 25, with a market cap of $5.43 trillion, so the target is roughly 49% above that close.
Hitting it only requires a multiple of about 21x the fiscal 2028 consensus EPS of $15.6826. Today the stock trades at about 14x that figure and 45x trailing earnings.
Earnings Estimates Are Racing Higher Than the Share Price In fiscal Q2, revenue reached $96.22B, up 105.8% year over year. Non-GAAP EPS of $2.22 exceeded the $2.09 consensus, the 5th straight beat. Q3 guidance calls for $108.0B ± 2%.
Management expects revenue to grow “approximately 70%” next fiscal year and calls that a supply-constrained number. It also said “customers’ forecasts point to our growth doubling next year.“
Analysts have raised the fiscal 2028 EPS average from $12.6737 90 days ago to $15.6826, with 42 upward revisions and zero downward over 30 days. The stock is up 26.97% over the past year, well behind those revisions.
Vera Rubin Raises the Revenue Ceiling per Gigawatt For Nvidia, Vera Rubin brings in about $40 billion of revenue per gigawatt, compared with $25 billion for Blackwell. Management expects “the fastest product ramp in NVIDIA’s history”, with Rubin making up about 20% of data center revenue next quarter.
AWS is rolling out 2 million GPUs through the second quarter of fiscal 2029. OpenAI’s commitments total approximately 12 gigawatts. Capital spending by the top five hyperscalers is projected at $1.3 trillion in 2027.
Cash Returns Put a Floor Under Per-Share Value NVIDIA returned a record $26B to shareholders last quarter and has approximately $99B left on its buyback authorization. Debt-to-equity is 0.073 and return on invested capital is 92.2%.
Management plans to return more of its excess free cash flow, and every share retired adds to per-share earnings. For retirement portfolios, that balance sheet supports a high-growth position.
Dates Retirement Investors Should Circle Now Q3 FY2027 report (mid-to-late November 2026): revenue at or above the $108B guide and gross margin near 74% keep the thesis on track. Gross margin bottom: management has indicated 71% to 72% at the low point before settling at 72% to 73%. A drop below that range is a warning sign. Supply commitments: the $279B in commitments, days sales outstanding at 60 days, and zero China data center revenue in guidance are the pressure points to track. If AI spending stalls and those $279B in supply commitments turn into excess inventory, the stock will miss $335. Even so, a 21x multiple on earnings estimates that keep rising is a modest ask, and I expect NVIDIA to clear it by September 27, 2028.
Contact [email protected] for any questions or corrections.
Nvidia's earnings have grown so fast they outpaced a rising stock price, pushing its valuation to a level not seen in over a decade. Whether that signals a rare buying opportunity or a quiet warning from the market is the…
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) now trades at about 17 times expected earnings for the next twelve months, its lowest forward multiple since January 2015 and well below a 15-year average of 30x. A multiple that low usually follows a crash, yet the stock rose 1.68% in the September 28, 2026 session to $228.86, about 3% below its fifty-two-week high of $236.54.
Shares are up 23% year to date and 28.74% over one year. The price climbed while the multiple fell, which means earnings forecasts rose faster than the stock, an unusual setup for a company valued at $5.53 trillion.
How Earnings Outran a Rising Stock A forward P/E is the share price divided by expected earnings per share, so it falls when earnings grow faster than the price. NVIDIA’s fiscal year ends in late January, so its quarter labels run ahead of the calendar.
Nvidia reported revenue of $57 billion, up 62%, on November 19, 2025, then $68 billion, up 73%, on February 25, 2026. Jensen Huang said, “Demand has gone parabolic,” as revenue reached about $82 billion on May 20, 2026, growth Nvidia put at 85%.
Nvidia then posted $96.2 billion, up 106%, on August 26, 2026. Analysts raised the average fiscal 2028 EPS estimate to $15.6826 from $12.6737 90 days earlier.
Low valuations can also signal doubt.
A shrinking multiple on a rising stock can also mean investors are marking down how long the growth lasts. The fiscal 2028 EPS range runs from $9.80 to $18.746, which shows how little agreement exists.
Management guided to roughly 70% revenue growth in fiscal 2028. Cheap against history only matters if the history repeats.
Capital Budgets Set the Ceiling NVIDIA’s revenue is someone else’s capital spending. Wells Fargo strategist Ohsung Kwon argues the math fails if the market expects AI capex of about $1 trillion in 2028, while NVIDIA cited top-five hyperscaler capex of nearly $800 billion in 2026 and $1.3 trillion in 2027. That expansion must be powered, cooled, and connected by someone other than the chipmaker, which is why we pulled seven of those suppliers into a free AI infrastructure report.
The company expects rising memory costs to push gross margins to a bottom of 71% to 72% in the fiscal fourth quarter, and its outlook assumes no China data center compute revenue.
Jensen Huang said the $150 billion buyback increase “reflects our confidence in the long-term opportunity ahead,” a signal that management sees its own multiple as too low.
Should You Buy or Sell NVDA Stock I believe NVIDIA looks undervalued at $228.86. Even the most pessimistic figures put NVDA stock far cheaper than the 30x historical multiple, and Nvidia guided to $108 billion for the quarter in progress.
Capex budgets can level off, but a supply-constrained outlook and steady upward revisions suggest the market is pricing in more caution than the fundamentals show. The average price target is $327.70 across 61 analysts.
The test is Nvidia’s next report, expected November 17, 2026, though the company has not yet confirmed it. If fiscal fourth-quarter revenue guidance lands below the $124.37 billion consensus, or the margin floor slips below 71%, skeptics have the stronger case, and the low multiple becomes a fair price for slowing growth. But for now, NVDA stock remains a buy.
Contact [email protected] for any questions or corrections.
NVIDIA NASDAQ: NVDA strengthened the case for massive share price upside by announcing a record-breaking $150 billion share buyback authorization. Backed by its cash flow and balance sheet, the buyback sends several bullish signals.
At face value, the authorization affirms NVIDIA’s confidence in future cash flow, which, in turn, validates the AI buildout. In addition, investors can assume downside is limited on price pullbacks, as NVIDIA is likely to keep buying back shares when prices dip.
Get NVIDIA alerts:
NVIDIA Today
$230.41 +1.55 (+0.68%)
As of 09:52 AM Eastern
This is a fair market value price provided by Massive. Learn more.
$164.27▼
$236.540.43%
29.10
$324.14
The question is, how much strength does the authorization give? Record or not, $150 billion is a drop in the bucket against NVIDIA’s $5.4 trillion valuation, about 2.7% of the market cap, to be exact.
However, the signal is that buybacks can be expected to continue at their current pace indefinitely, as the total remaining authorization is valued at roughly 4% of the market, with further authorization increases likely.
NVIDIA’s share buybacks are significant, giving investors increasing quarterly leverage. Highlights from Q2 show share count reduction accelerating to about 1% on average over the trailing 12 months, a pace likely to continue in the coming quarters unless it accelerates further. Either way, the company can sustain the $19.7 billion Q2 pace for the foreseeable future, setting the stage for sustained and substantial share count reduction over time.
NVIDIA's Explosive Gains Are Over, Steady Compounding AheadInvestors and traders looking for big, triple-digit gains in under 12 months might want to look elsewhere, as NVIDIA’s days of producing those types of returns are likely over. However, investors looking for sustainable, incremental annual returns, compounded by share-count leverage and dividends, have a robust runway ahead.
While technical price action suggests upcoming moves will be short, potentially jerky, and likely followed by longer consolidations, the growth and valuation metrics suggest many short-term stock price spurts for investors to capitalize on. Long-term earnings forecasts suggest NVIDIA trades at pennies on the dollar; the stock is set up to advance by 400% over the next 10 years as it executes its strategy.
Is NVIDIA wasting money on share buybacks? No. NVIDIA’s AI dominance, built on GPUs but driven by CUDA, connectivity, and software services, provides robust cash flow. Q2 adjusted net income approached $54 billion, more than double the capital return, which includes both buybacks and dividends. This profitability, along with trailing-12-month free cash flow, has enabled both aggressive acquisitions and responsible balance sheet maintenance.
Balance sheet highlights help put any misgivings to rest, including more than $160 billion in cash, securities, and receivables. Liabilities and debt are also rising, but marginally and in response to increased operational load, with total liabilities well below the company’s liquidity position.
Analysts Cheer as NVIDIA’s Buyback Drives ConfidenceAnalysts liked NVIDIA’s buyback announcement, highlighting it as a sign of financial strength, a mechanism to soothe AI spending fears, and a signal that management thinks the stock is still cheap. While no analysts revised their price targets immediately after the announcement, the chatter reaffirmed the trend, which includes increasing analyst coverage of the stock and high conviction in the Buy rating. The consensus forecasts a 40% upside from late-September highs, but the trend matters more, pointing to a high-end range of $515 and more than 100% upside.
Among NVIDIA’s catalysts is the launch of its open-source Open Agent Safety Platform. It responds to the growing number of AI “incidents” and is intended to keep developers ahead of the curve. The platform runs on two systems: the first lets users set and enforce controls; the second provides a watchdog to detect and intervene with suspicious agents. The assumption is that incidents such as the one at Hugging Face could have been prevented; the outcome is that NVIDIA’s leadership position remains unassailable.
NVIDIA’s biggest risk is obsolescence. It is essential to AI today, but labs and hyperscalers are working on proprietary technology across the industry. One or more of them could disrupt the hardware or software stack, making NVIDIA one of many choices. Until then, hyperscalers continue to rely on NVIDIA hardware, with proprietary technology years, if not a decade, away from availability at scale. Proprietary technologies will one day exist alongside NVIDIA, helping differentiate hyperscalers but not displacing NVIDIA from its moat.
The market gets the timing of AI monetization wrong; it comes in waves and plays out over years. The first wave is the initial build-out, which is what’s been underway and is expected to continue. The second is the monetization of investments made over the past three years, which has begun for NVIDIA and companies like Oracle NASDAQ: ORCL and is expected to gain momentum over the next three years. In this scenario, NVIDIA’s dependence on GPUs for growth fades over time in favor of the ancillary technologies built upon those GPUs, of which there are many. Key areas include automotive and robotics, as well as the implementation of physical AI.
Should You Invest $1,000 in NVIDIA Right Now?Before you consider NVIDIA, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and NVIDIA wasn't on the list.
While NVIDIA currently has a Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
A strong long-term portfolio starts with companies that can survive recessions, inflation, changing consumer habits, and shifting market leadership.
This report names seven blue-chip stocks across technology, retail, consumer staples, healthcare, networking, sporting goods, and utilities that offer investors a mix of stability, income, growth, and staying power.
Get This Free Report
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
You are now leaving Barron's websiteBy clicking on the “Proceed” button below, you will be redirected to a third-party website owned and operated by Hong Kong Tiimoot Information Technology Co., Limited. (“HKT”), which is located in Hong Kong. That website operates independently from Barron's and Barron's does not control the website. The privacy practices of HKT are subject to its Privacy Statement, so please read it closely. We are not responsible for HKT's privacy or other data-related practices.
Nvidia's robotics lab is becoming a founder factory By and Rya Jetha You're currently following this author! Click to unsubscribe from email alerts.
Nvidia CEO Jensen Huang Chesnot/Getty Images Nvidia helped build the foundation for physical AI. Now, many of its veterans are launching the next wave of robotics startups.
The chip giant has poured billions into robotics, and Nvidia CEO Jensen Huang helped popularize the term "physical AI, " which enables machines to interact with the real world.
As with AI agents and other applications, Nvidia's strategy is to build underlying technology — the chips that power robots and the software used to train them. That ecosystem has become fertile ground for founders.
In recent years, some who helped build the foundations of robotics inside Nvidia "are spinning out to build companies of their own," said Amulya Vishwanath, who left the company last year to start Techable Ventures, a venture firm focused on physical AI.
Nvidia's former vice president of AI research, Sanja Fidler, left in July to found Veeda AI alongside other ex-Nvidians. The startup builds simulated worlds to train robots — an extension of the research Fidler worked on at Nvidia. Former Nvidia researcher Joel Jang founded Dream Labs, another startup working in that industry, the Information reported.
Nvidia alums are attacking different areas in robotics, from software for deploying robots in warehouses to those that perform physical tasks for businesses.
Nvidia has invested in some, including Flexion Robotics and Dyna Robotics.
Flexion CEO and cofounder Nikita Rudin said that Nvidia maintains close ties with the startup, holding biweekly meetings and access to early tools for testing.
"We're still doing the same thing we were doing before," Rudin said. "We were the beta testers — and now again, just from the outside."
Why Nvidia robotics talent is striking outRudin and his cofounder, David Hoeller, left Nvidia after becoming convinced robotics technology had reached an inflection point and was ready for deployment.
"We were not necessarily convinced that staying at Nvidia was the fastest way to actually go and deliver that," Hoeller said.
Former Nvidia robotics researcher Arsalan Mousavian cited a similar motivation. He described Nvidia as a "hardware-first" company centered on AI chips, and he wanted to be "laser focused" on building useful robots. Mousavian's startup, founded last year, remains in stealth.
Siddhant Haldar, a former Nvidia robotics intern who considered joining the company before founding Index Robotics, said the field has long been held back by a lack of real-world training data. Now that powerful AI models can pick up some of the slack and robotics venture funding is booming, he said it was the right time to strike out.
Physical AI companies raised $33.4 billion globally in the first half of 2026, already surpassing the $28.7 billion raised in all of last year, according to PitchBook.
Startups can also take risks and deploy imperfect robots because large companies have "more to lose," Haldar said.
Nvidia isn't alone in producing a new crop of robotics founders. Former Google DeepMind engineers launched Reimagine Robotics and Generalist, while Waymo veterans have gone on to build Bedrock Robotics, as researchers from fields like autonomous driving are pouring into the space.
Nvidia's growing startup diaspora creates a cycle: The more startups that emerge, the more Nvidia stands to benefit by selling them the infrastructure needed to build.
Have a tip? Contact this reporter via email at [email protected] or Signal at @geoffweiss.25. Use a personal email address and a nonwork device; here's our guide to sharing information securely.
Read next
Geoff Weiss You're currently following this author! Click to unsubscribe from email alerts.
Geoff Weiss is a senior reporter on Business Insider’s tech team, where he covers Nvidia and AI infrastructure. His reporting focuses on the business of AI compute, emerging startups, and the people and strategies shaping the industry.Previously, Geoff was on the media desk, covering YouTube and Netflix, and themes like the intersection of Hollywood and the creator economy. His work on Netflix’s video podcasting ambitions and Mr Beast’s lessons for Hollywood won second and first prize, respectively, at the 2025 LA Press Club Awards.Prior to joining Business Insider, Geoff was the senior editor of Tubefilter and a staff writer at Entrepreneur. He graduated from New York University with a degree in English Literature.He can be reached at [email protected], on Signal @geoffweiss.25, and on LinkedIn. Have a tip? Use a personal email address and a nonwork device; here's our guide to sharing information securely.
Rya Jetha You're currently following this author! Click to unsubscribe from email alerts.
Rya is a senior reporter at Business Insider covering physical AI and robotics. She writes about factory automation, humanoid robots, and the race to collect the real-world data needed to bring AI into the physical world. She previously worked at The San Francisco Standard, where she reported on tech culture and autonomous vehicles. She has a bachelor’s degree from Pomona College and a master’s from the University of Cambridge. Rya lives in San Francisco. Contact her at [email protected] or on Signal at rjetha.07. Use a personal email address, a nonwork WiFi network, and a nonwork device. Here's our guide to sharing information securely.
In the mid-to-late 1990s, the internet changed corporate America forever, giving businesses access to new selling and marketing channels. For decades, investors have been waiting, often impatiently, for Wall Street's next "internet moment." The evolution of artificial intelligence (AI) has delivered.
Empowering software and systems to make split-second, autonomous decisions is a multitrillion-dollar global opportunity, and Wall Street's largest public company, Nvidia (NVDA +1.68%), is at the heart of it. Nvidia, along with specialty and AI-accelerated chipmakers Broadcom (AVGO -0.92%) and Advanced Micro Devices (AMD -3.61%), better known as "AMD," are the backbone of enterprise data centers.
Image source: Nvidia.
Broadcom and AMD aren't a threat to Nvidia's data center dominanceSome investors view Broadcom and AMD as the biggest threats to Nvidia's near-monopoly on graphics processing units (GPUs) in AI-accelerated data centers. While AMD's Instinct GPUs are less costly than Nvidia's GPUs and could, over time, (pardon the necessary pun) chip away at Nvidia's market share, AMD isn't a threat to Nvidia's compute dominance.
Likewise, Broadcom focuses on custom application-specific integrated circuits (ASICs) rather than general-purpose GPUs, which are Nvidia's domain. Both companies can coexist among hyperscalers without cannibalizing each other.
— Wall St Engine (@wallstengine) August 26, 2026 But this doesn't mean Nvidia has a clear runway to success -- even though the company's 117% year-over-year Data Center segment sales growth in the fiscal second quarter suggests it does.
While Nvidia's aggressive innovation timeline (one new AI chip per year) should keep its compute advantages secure, another threat looms large... and it's near and dear to the company's heart.
Image source: Getty Images.
Nvidia's top customers are, ironically, its biggest riskIt's no secret that many of Wall Street's most influential businesses are using Nvidia's GPUs in their AI-accelerated data centers. Industry titans such as Amazon (AMZN -1.41%), Microsoft (MSFT -1.35%), and Meta Platforms (META -4.79%) have spent a small fortune purchasing Nvidia's superior AI hardware.
But these companies also share a similarity beyond just being some of Nvidia's largest clients. They're also internally developing GPUs for their respective data centers:
Amazon has developed a custom machine learning chip, Inferentia2, as well as Trainium, its AI training and inference chip.Earlier this year, Microsoft unveiled its Maia 200 inference chip, with the Maia 300 expected to be unveiled any day now.Meta's Training and Inference Accelerator program has developed four AI chips over the last two years.Will the AI-accelerating chips developed by Nvidia's customers be superior to Nvidia's hardware? Highly unlikely.
Will Amazon, Microsoft, or Meta sell their chips externally and become serious rivals to Nvidia in general-purpose GPUs? Microsoft may sell its Maia 300 chips externally, but it's not a serious rival at this point.
NVDA Gross Profit Margin (Quarterly) data by YCharts
But can Nvidia's top customers, by net sales, pack their data centers with in-house chips that are considerably less costly and easier to access than Nvidia's hardware? Absolutely. Nvidia's opportunity to win data center real estate shrinks as its leading customers ramp up their own AI chip programs.
Furthermore, Nvidia's pricing power has benefited immensely from persistent AI hardware shortages. With several of its top clients ramping up AI chip production, this ongoing supply shortage should wane. If GPUs become more accessible, Nvidia's pricing power, and thus its gross margin, would likely suffer.
Ironically, there's no bigger threat to Nvidia than its top customers.
Sean Williams has positions in Amazon and Meta Platforms. The Motley Fool has positions in and recommends Advanced Micro Devices, Amazon, Broadcom, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
When Nvidia announced a record stock buyback on Monday, the chipmaker's share price was, by one key metric, at its cheapest level in a decade. CEO Jensen Huang saw it as a bargain.
Nvidia's price-to-earnings ratio for fiscal 2028, which begins this coming February, sits at just 14.5, below all of its megacap peers other than Micron. Its average current P/E ratio over the past five years is 62.9, more than double where it is today.
The constricted multiples for the world's most valuable company, now valued at over $5.5 trillion, reflect the sustained historic rate of profitability growth for the chipmaker powering the artificial intelligence boom. The stock is up 23% this year, topping the Nasdaq, but it's not keeping up with expected earnings growth.
Analysts on average expect Nvidia to hit net income of close to $385 billion in fiscal 2028, up 60% from the prior year and more than fivefold over a three-year stretch.
So on Monday, Nvidia said it's authorized an additional $150 billion to its share buyback program. That's on top of an $80 billion repurchase plan announced in May, when the company also boosted its quarterly cash dividend to 25 cents per share from 1 cent.
watch now
The latest buyback is a "clear-cut message" that management thinks its stock is undervalued, said Karan Ramchandani, managing director at Post Oak Group, in an interview.
"If you look at the P/E ratio, the earnings are are scaling up faster than the share price," Ramchandani said. "It's a very healthy mark of a company looking at their own stock buybacks as the best investment they could do in the coming year."
The stock rose almost 2% on Monday, when the company also announced new software and hardware solutions to control AI agents.
'Growth value stock'Nvidia is stepping up its capital return plans as its revenue and cash flow explode because of demand for the company's graphics processing units used to build and run AI models and services.
The company has signaled continued growth through early 2028, telling investors in August that it sees 70% sales growth in its fiscal 2028, which implied the company will do hundreds of billions more in sales than Wall Street had previously forecast.
Huang told investors at a Goldman Sachs conference earlier this month that Nvidia was "misunderstood" and implied that it should be more highly valued both for its growth as well as its value measured by future earnings.
"We are the world's first and only growth value stock," Huang said. "People are trying to figure out which one we are. We are both."
Huang is putting his company's money where his mouth is after telling CNBC's Jim Cramer last month that, "Buying back Nvidia stock is a tremendous opportunity."
Nvidia previously said it planned to return about half of its free cash flow to investors through share repurchases and buybacks. Its share count could drop by 4% if the chipmaker spends its entire current authorization.
Nvidia vs. Nasdaq this year
"We're going to generate a lot of cash in the coming years," Huang said on CNBC's "Squawk Box" on Monday. "As we generate more cash, we'd like to be able to return it back to shareholders."
Gene Munster, managing partner at Deepwater Asset Management, told CNBC's "Fast Money" on Monday that investors appear worried that growth rates will slow after a monstrous few years.
"It's just really hard for investors to get comfortable that that's going to continue," Munster said. "That downward slope of growth rate, that's the reason why it trades at that compressed multiple."
Nvidia's fiscal 2028 P/E ratio puts it behind behind Apple (35.5), Alphabet (22.6), Microsoft (21.7) and Amazon (23.2) as measured for a similar period. It's also less highly valued than its primary AI data center chip rivals including Broadcom (18.2), Advanced Micro Devices (38.2) and Intel (54.7). None of Nvidia's rivals are forecasting 70% sales growth next year.
Broadcom's silicon business is built around developing custom chips with companies such as OpenAI and Google. AMD competes with Nvidia in GPUs, but with a small fraction of the market share. Intel makes central processors and has dabbled in AI chips, but doesn't have a competitive product to Nvidia's GPUs.
Ben Reitzes, an analyst at Melius Research, has a buy recommendation on the stock and said it "deserves to be higher given its growth rate."
"Buying back stock in a bigger and bigger way is going to really help it solve that problem and get a better valuation," Reitzes told CNBC's "Closing Bell" on Monday.
UBS analysts said in a note on Monday that Nvidia's stepped-up share repurchases could add 8 cents per share to the company's calendar year 2027 earnings, which it estimates at $17.16.
Nvidia (NVDA +1.68%) has built an artificial intelligence (AI) empire thanks to its strength in one particular area: the graphics processing unit (GPU). These powerful chips have been the crucial tool that's fueled the development and use of AI so far. Researchers and companies use the GPU for key tasks such as the training of AI models and the inferencing process, as these models are actually put to work.
All of this has resulted in soaring earnings for Nvidia every quarter over the past few years. And investors piled into the stock as it climbed 400% over three years -- and demand for GPUs continued to soar.
This year, Nvidia stock has advanced, but at a more moderate pace. It's heading for a 20% annual gain. Moving forward, the GPU may not be the biggest catalyst for stock performance. Instead, the following overlooked piece of Nvidia's business could matter most for the stock's next wave of growth. Let's check it out.
Image source: Getty Images.
A specialist in GPUs First, though, let's take a closer look at Nvidia's path so far. The company, founded more than 30 years ago, started as a specialist in the GPU, primarily serving the video gaming market. Progressively realizing the GPU's potential to address other areas, Nvidia created the parallel computing platform, CUDA, in 2006 -- and that set the stage for its participation in the AI market in recent years.
This proved to be a game-changing move for Nvidia as it transformed the company's revenue opportunity. We can see this in the chart below.
NVDA Revenue (Annual) data by YCharts
Nvidia hasn't stuck with GPUs only and instead broadened its capabilities, offering complete systems and elements like networking tools and enterprise software. The company even developed platforms tailored to the needs of specific industries, such as drug development, and is facilitating progress in hybrid quantum-classical computing.
Earnings continue to soar, with revenue rising 100% to $96 billion in the recent quarter, and profit also climbing in the triple digits to reach $59 billion.
Now, let's consider the overlooked Nvidia business that could offer the next catalyst for stock performance. This is a rather new Nvidia endeavor, focusing on an element that could drive the next stage of AI growth. I'm talking about the central processing unit (CPU), or the main chip used in all computers.
Premium Feature
Moneyball Superscore
95/100
Today's Change
(
1.68
%) $
3.79
Current Price
$
228.86
In the past, Nvidia wasn't a major player in the CPU market. Intel and Advanced Micro Devices were and still are the leaders in this space. As for Nvidia, it developed CPUs to be used as part of its GPU systems -- not as stand-alone chips.
Now, with Nvidia's latest release -- the Vera Rubin platform -- the company is introducing its first-ever stand-alone CPU. Nvidia says this is to address a $200 billion market opportunity, and the company already expects $20 billion in CPU sales this year. Considering the Rubin platform just started shipping in recent weeks and only a few months are left in the year, this is a significant figure.
Nvidia also hasn't kept its ambitions quiet. The company says it aims to lead in this high-potential market. Why is Nvidia so interested in CPUs at this point? This chip is a key element needed to power agentic AI. As AI agents carry out tasks on behalf of humans, the CPU is the chip working behind the scenes. So, to put it another way, the CPU is to agentic AI as the GPU is to AI training.
Agentic AI is viewed as the next growth driver in the AI story, as it puts AI to use to address real-world needs. This could be big for companies like Nvidia that provide essential tools such as chips, because demand will remain strong as AI is applied to various situations and problems over time.
So, as Nvidia aims to be the leader in the GPU and the CPU markets, its progress in CPUs could supercharge growth -- and lead to the next leg up in stock performance.
Samsung Electronics stock rebounded on Tuesday after a 5.4% rout, as investors weighed a $1 billion AI infrastructure commitment that pushes the group's strategy beyond memory chips. The company and five affiliates will invest in Helix Digital Infrastructure, a KKR-led, Nvidia-backed platform developing data centres, power systems and connectivity for AI.
Samsung Electronics and its affiliates will invest a combined $1 billion in Helix Digital Infrastructure, an artificial intelligence infrastructure company launched by global investment firm KKR and backed by AI darling Nvidia.
Samsung Electronics said Tuesday it will invest $500 million, with Samsung C&T, Samsung SDS, Samsung SDI, Samsung Life Insurance and Samsung Fire & Marine Insurance contributing the remainder.
The investment comes as Helix seeks to address growing competition in the AI infrastructure market by targeting both data center deployment and the underlying power infrastructure needed to support it.
The deal also allows Samsung to leverage capabilities across its affiliates, spanning semiconductors and cooling systems to data center construction and batteries, as the group seeks to expand its role in the global AI infrastructure buildout.
Helix, launched in June, focuses on infrastructure needed to support growing AI demand, including hyperscale data centers, power generation, transmission and distribution infrastructure and fiber-optic networks.
The company is led by Adam Selipsky, the former CEO of Amazon Web Services. KKR, the Kuwait Investment Authority, Nvidia and U.S. power company Vistra are founding investors in Helix.
The latest investment is in addition to the more than $10 billion of funds already committed to the company, according to KKR.
Samsung said the investment would help accelerate the global rollout of AI data centers alongside Helix and deepen collaboration among the participating companies.
KKR has invested more than $75 billion globally across digital infrastructure and power, with the investment firm putting in about $9 billion in Korea since 2009.
For investors with confidence in a specific market niche, Zacks Thematic Investment Screens has you covered with over 30 dynamic investment themes. Whether you're interested in cutting-edge technology, renewable energy, or healthcare innovations, our themes are built to help you sort through the noise quickly and find the stocks that offer exposure to the trends you seek.
Let’s take a closer look at the Artificial Intelligence theme and analyze a stock that the screen returned, namely NVIDIA (NVDA - Free Report) .
Artificial Intelligence Screen
The Zacks Artificial Intelligence thematic screen features a diverse set of companies involved in the AI frenzy, ranging from creators of software and hardware that power AI to those applying and utilizing the technology through automation, diagnostics, cognitive tasks, and more.
NVIDIA Recent Earnings
NVIDIA delivered another blowout quarter, with its recent results comfortably clearing already high expectations. Revenue surged 106% year over year to $96.2 billion, whereas adjusted EPS jumped 120% to $2.22. Both items cleared our consensus expectations, reflecting the AI-favorite’s fifth consecutive double-beat.
Unsurprisingly, Data Center remained the highlight of the release again. Data Center revenue totaled $89.0 billion, up a triple-digit 117% year over year and 18% sequentially, handily clearing our consensus estimate of roughly $85.1 billion.
Overall, the stock continues to reflect one of the strongest bets on the continued AI craze, underpinned by red-hot demand that isn’t going to slow anytime soon.
Bottom Line
While stocks in each theme aren't direct recommendations, they offer a solid starting point. Leverage the Zacks Rank and other metrics to identify the best stocks for your strategy. Each featured stock comes with a Zacks report, giving you the tools to analyze performance and potential.
For those interested in viewing the full list Thematic Investing Screens, please click here >>> Thematic Investing Screens – Zacks Investment Research.
Key Points:Bullish double bottom remains intactHigher lows signal improving demand50-day moving average is key supportBreakout above $234.76 signals continuation$261.84–$265.30 forms a higher target zoneBullish Reversal Establishes a Stronger Foundation It is important to recognize the larger price pattern developing in the stock of Nvidia Corporation (NVDA), as it shows underlying strength and improving demand. A bullish reversal of a double bottom pattern triggered in early August following the recognition of a key support area. The lows of the double bottom confirmed support near the confluence of the 61.8% Fibonacci retracement of the prior advance and most importantly, the 200-day moving average.
NVDA daily chart shows strengthening within consolidation. Source: TradingView Higher Lows Reinforce Improving Demand Subsequently, two higher swing lows and higher swing highs were established as the stock consolidated largely above prior resistance levels. The two lows show support being found near the 50-day and not too far below the neckline of the double bottom pattern at $214.39, which previously was a key resistance zone. In addition, on the weekly chart, support was indicated near the 20-week moving average. Strength was further indicated last week, with the successful test of support at the 20-day moving average, resulting in a higher swing low. It was further confirmed on Monday, when a new short-term trend high of $233.21 was established.
NVDA weekly chart shows long-term bullish trend. Source: TradingView Support Test Puts Momentum to Work Since this is the first time since the double bottom breakout that a pullback found support at the 20-day moving average and turned higher, it shows a small improvement in underlying demand. Therefore, if NVDA can stay above its 50-day moving average, a move toward higher prices are eventually suggested. The stock needs to get out of consolidation, which should see an improvement in momentum.
Breakout Level Opens Path Toward Higher Targets A decisive rally above the September peak of $234.76 will signal a continuation of the developing advance. The first target would be the May peak of $236.54 (B) but given the price pattern that high has a good chance of being exceeded. Several potential new high targets for NVDA are shown on the charts, with a potential confluence zone around the 100% projection for a rising ABCD pattern at $261.84and the 161.8% Fibonacci extension of the recent downswing at $265.30.
If you’d like to know more about technical analysis and how traders use it, please visit our educational area.
With over 20 years of experience in financial markets, Bruce is a seasoned finance MBA and CMT® charter holder. Having worked as head of trading strategy at hedge funds and a corporate advisor for trading firms, Bruce shares his expertise in futures to retail investors, providing actionable insights through both technical and fundamental analyses.
Geopolitical volatility continues to trickle into economic expectations as heightened crude oil prices keep Treasury yields at historic levels. In global headlines, China is reportedly considering buying AI chips from Nvidia (NVDA).
Nvidia (NVDA +1.68%) has delivered many victories to investors in recent years. The company built a position as artificial intelligence (AI) chip leader, then added on a broad range of related products and services. All of this supercharged revenue and the stock performance as the AI boom strengthened and demand for compute soared. Over the past five years, Nvidia's annual revenue and the stock price have climbed more than 700% and 800%, respectively.
This year, earnings have continued to march higher, but the stock, delivering a gain of more than 20% so far, hasn't maintained the momentum we've seen in recent years. General economic worries, such as rising inflation, and concerns about the rapid pace of the AI infrastructure build-out have weighed on demand for this growth stock. And some investors simply shifted out of Nvidia, locking in profits, in favor of other AI stocks that hadn't climbed as much.
As a result, Nvidia's gains haven't been as spectacular as in the past, and the stock's valuation has declined to bargain levels. Now you may be wondering what's next for shares of the AI giant... Nvidia's latest $150 billion move delivers a clear message to investors.
Image source: The Motley Fool.
Nvidia's role in the AI marketFirst, though, let's take a quick look at Nvidia's role in the AI market. Nvidia makes the world's fastest graphics processing units (GPUs), the chips used for crucial AI tasks such as the training of models and the thinking process they go through to solve problems. The company entered the market early and updates its GPUs on an annual basis, a recipe that has kept it ahead of rivals. On top of this, Nvidia has expanded into enterprise software, networking tools, and more, making it the key source to turn to for anything AI.
But as mentioned, a variety of concerns have weighed on the stock's performance this year, slowing the momentum investors had grown accustomed to seeing in recent years. As Nvidia's earnings continued to climb, its stock price made more moderate gains. And as a result, the company's valuation has dropped. Today, Nvidia trades for about 24x forward earnings estimates, a level that looks dirt cheap considering the company's leadership in the AI market, competitive advantage, and its long-term AI prospects.
It's important to remember that AI is just starting to be used in the real world, suggesting a lot of growth likely lies ahead. Analysts expect the AI market to reach beyond $1 trillion in the early part of the next decade, offering Nvidia a huge growth opportunity.
Premium Feature
Moneyball Superscore
95/100
Today's Change
(
1.68
%) $
3.79
Current Price
$
228.86
Now, let's consider the billion-dollar move Nvidia just made. The AI powerhouse said its board of directors authorized a $150 billion increase to the company's share repurchase program, taking the total program to $235 billion. This is the biggest share repurchase increase ever.
The company will execute this plan through the next fiscal year, which begins in late January of 2027 and will be Nvidia's 2028 fiscal year.
Now here's the message to investors, and it comes in the form of words from Nvidia chief Jensen Huang.
"This authorization reflects our confidence in the long-term opportunity ahead," he said in a statement.
Clearly, Huang and Nvidia's board of directors expect Nvidia's growth in the coming quarters and years to drive the stock considerably higher -- and they're eager to buy back shares at the current price.
What does this mean for investors?So, what does this mean for you as a shareholder or a potential Nvidia investor? Huang has expressed confidence in Nvidia's prospects in recent quarters, citing much need for AI compute moving forward. He's also expanded Nvidia's presence throughout the AI ecosystem, with the latest move being the release of a platform to ensure that AI agents operate safely. This maintains Nvidia as the central player in the AI story, something that further reinforces the company's moat, or competitive advantage.
Now, this buyback move shows Nvidia putting its money where its mouth is, setting the stage to scoop up shares as soon as possible in order to benefit from potential gains to follow. And that commitment offers investors a reason to be optimistic about the AI giant too.
In the latest trading session, Nvidia (NVDA - Free Report) closed at $228.86, marking a +1.68% move from the previous day. The stock's change was more than the S&P 500's daily loss of 0.77%. Meanwhile, the Dow experienced a drop of 0.67%, and the technology-dominated Nasdaq saw a decrease of 0.92%.
Shares of the maker of graphics chips for gaming and artificial intelligence have appreciated by 3.46% over the course of the past month, underperforming the Computer and Technology sector's gain of 6.26%, and outperforming the S&P 500's gain of 0.96%.
Analysts and investors alike will be keeping a close eye on the performance of Nvidia in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.47, signifying a 90.00% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $109.02 billion, showing a 91.24% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.25 per share and revenue of $406.05 billion, which would represent changes of +93.92% and +88.04%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Nvidia. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 4.73% upward. Right now, Nvidia possesses a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Nvidia has a Forward P/E ratio of 24.34 right now. This represents a discount compared to its industry average Forward P/E of 38.49.
It is also worth noting that NVDA currently has a PEG ratio of 1.74. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Semiconductor - General industry stood at 1.74 at the close of the market yesterday.
The Semiconductor - General industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 49, placing it within the top 20% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
The next leap in Nvidia's AI performance may have nothing to do with the GPU itself. A shift in the material holding these chips together could determine how much memory fits in a package and how fast costs spiral upward.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Glass could help Nvidia build larger AI chip packages with denser connections and room for more high-bandwidth memory. Rising HBM prices increase the economic stakes of every packaging decision. SCHMID is supplying equipment to companies developing glass-core substrates, but technical and customer qualification hurdles remain. Nvidia (NASDAQ: NVDA | NVDA Price Prediction) has made investors accustomed to dramatic improvements in GPU performance. Its next major advance, however, may come from something far less visible than the processor: the material that supports and connects the chips inside the package.
That material could be glass. As Nvidia’s AI systems grow, the package must accommodate larger processors, more memory, and an increasing number of electrical connections. Glass could give designers a more stable platform on which to build them. If manufacturers can make it reliably at scale, glass could become one of the technologies that allows Nvidia’s future GPUs to grow beyond today’s packaging limits.
This is a potentially significant change for the companies that make packaging equipment and substrates. It also has implications for memory suppliers. A larger package can create room for more HBM at a time when each additional gigabyte is becoming increasingly expensive.
Nvidia Is Running Into the Limits of the Package An AI accelerator is no longer simply a processor mounted on a board. The GPU must communicate at high speed with HBM positioned close beside it. The package provides the physical space and connections that make this arrangement possible.
As Nvidia adds computing capacity, it needs to move more data between processors and memory. A more powerful GPU cannot deliver its full benefit if the surrounding package cannot support sufficient memory capacity or the required interconnects. Package size has consequently become a design constraint in its own right.
TSMC (NYSE: TSM) has already been expanding its CoWoS advanced packaging platform. Its CoWoS-S technology supports a silicon interposer up to approximately 2,700 square millimeters, while CoWoS-L and CoWoS-R provide routes to larger designs. TSMC says CoWoS-L continues to scale to integrate more silicon and memory. Glass is attracting attention as manufacturers consider how to keep expanding the package beyond current material limits.
There is an important distinction here. A glass-core substrate could replace the organic core in the larger package substrate. That would not automatically eliminate the silicon interposer used for fine connections between a GPU and its HBM. Future packaging designs may combine these materials in different ways. The immediate attraction of glass is a larger, flatter, more dimensionally stable foundation for an increasingly complex assembly.
What Glass Could Change Conventional organic substrate materials become harder to control as packages grow. Heat and processing can cause distortion or warpage, making it more difficult to align connections across a large area. Glass offers a different combination of flatness, rigidity, and electrical properties.
Intel (NASDAQ: INTC), which has invested in glass substrate development, has described the potential for 50% less pattern distortion and much higher interconnect density. These are technology claims associated with Intel’s development effort, not measured improvements for an Nvidia GPU. They explain why packaging companies see glass as a way to build larger systems with finer connections.
For Nvidia, the potential benefit is straightforward. More usable package area could support more processing chips, more HBM, or both. Improved dimensional control could help manufacturers form reliable connections across that larger area. Better signal integrity could become increasingly valuable as those connections carry more data.
Glass would address a packaging bottleneck. It would not create additional HBM supply. In fact, if it enables Nvidia to place more memory in a future package, demand for HBM per accelerator could increase. That is an opportunity for Micron (NASDAQ: MU) and other memory producers, even as it puts greater pressure on supply.
What the HBM Cost Model Shows According to Table 1, two changes are driving the economics of HBM: growth in the overall market and a rising assumed price per gigabit. The table holds memory capacity at 288 GB from 2025 through 2028 so that the change in the modeled cost per GPU reflects price alone. At 288 GB, that cost rises from $3,917 in 2026 to $7,373 in 2027 because the assumed price increases from $1.70 to $3.20 per gigabit.
The final two rows make a separate, same-year comparison. The $7,373 figure is the modeled 2027 cost for a GPU with 288 GB. The $4,915 figure directly beneath it is the modeled 2027 cost for a GPU with 192 GB. Both use the same $3.20 price. The $2,458 difference comes entirely from the 96 GB reduction in capacity.
Table 1. HBM Market Growth and Modeled Memory Cost per GPU Package
Metric 2024 2025 2026 2027 2028 Global HBM market revenue ($ billions) 16 35 49 70 100 Capacity used for annual cost comparison (GB per GPU) 192 288 288 288 288 Assumed blended HBM price ($/Gb) 1.20 1.35 1.70 3.20 3.40 Modeled HBM cost at annual comparison capacity ($ per GPU) 1,843 3,110 3,917 7,373 7,834 Alternative 2027 design: HBM cost at 192 GB ($ per GPU) — — — 4,915 — 2027 saving versus the 288 GB configuration ($ per GPU) — — — 2,458 — The Information Network calculations convert gigabytes to gigabits by multiplying by eight, then multiply by the assumed price per gigabit. Thus, the 2027 comparisons are 288 × 8 × $3.20 = $7,373 and 192 × 8 × $3.20 = $4,915, rounded to whole dollars. The pricing assumptions are based on estimates in the supplied Samsung Securities inserts. The 2026 and 2027 global market figures are calculated estimates between Micron’s approximately $35 billion 2025 HBM market estimate and its approximately $100 billion projection for 2028; they are not reported annual market results. Micron has also cited approximately $16 billion for 2024.
The 192 GB alternative illustrates an eight-high memory configuration if the number of HBM stacks beside the GPU and the capacity of each DRAM die are otherwise held constant. “Eight-high” refers to the number of DRAM dies stacked vertically inside each HBM device. It is a design scenario, not an announced Nvidia specification. It also describes a different choice from adopting glass: glass concerns the platform on which the GPU and HBM devices are assembled, while eight-high describes the construction of each HBM device.
The modeled $2,458 saving therefore should not be credited to glass. It shows how much a lower-memory GPU could save under the table’s pricing assumptions. Glass presents the opposite possibility as well: by supporting a larger package, it could allow Nvidia to use more HBM when the performance benefit justifies the added cost.
The table excludes GPU dies, the substrate, interposer, assembly, and manufacturing losses. Those omissions matter when evaluating glass. A new substrate must justify its cost across the whole package, while its reliability becomes more consequential as the value of the components assembled onto it rises.
SCHMID’s Opportunity Is Real, but Still Early SCHMID Group (NASDAQ: SHMD) has said it is engaged with major companies in the supply chains of Nvidia, Intel, and AMD as they examine glass-core substrates. The company supplies technology and equipment intended to help turn those designs into manufacturable products. That gives investors a specific equipment company to watch as the industry tests glass. It does not establish that Nvidia has awarded SCHMID a production contract or committed a future GPU to glass.
SCHMID has identified through-glass-via metallization as a central technical obstacle. Glass does not conduct electricity, so manufacturers must create small holes through it and turn them into dependable electrical pathways. Making the holes is only part of the process. The metal connections must be consistent across large substrates and reliable through subsequent assembly and operation. SCHMID has also identified end-customer qualification as a milestone still to be completed.
Its existing financial results should be kept separate from the future glass opportunity. SCHMID reported €46.0 million in revenue for the first half of 2026, compared with €16.9 million a year earlier, and maintained full-year revenue guidance above €100 million. It also lowered its adjusted EBITDA margin guidance to 6%–9%. Growing equipment demand across its business does not tell investors how much revenue production glass substrates will eventually generate.
One comment from SCHMID management is especially revealing. The company said customers are currently pursuing larger panel-level packages for performance and package size, rather than primarily to save money. That puts glass where Nvidia’s roadmap is headed: toward more capable systems whose physical dimensions and connections are becoming strategic design decisions.
SCHMID is not alone in pursuing the opportunity. Intel has developed glass packaging technology, while Absolics is building a glass-core packaging ecosystem with support from a $100 million U.S. advanced packaging research award. The breadth of activity suggests that glass is becoming an industry development effort, although commercial adoption remains uncertain.
Corning (NYSE: GLW) is another name investors may associate with glass. Its announced Nvidia partnership, however, focuses on optical connectivity for AI data centers. That agreement should not be counted as a confirmed glass-substrate win inside Nvidia’s GPU packages.
Investor Takeaway Glass could be a major step in AI packaging because it targets a problem Nvidia cannot solve by improving GPU silicon alone. Future accelerators need enough package area, stable geometry, and dense connections to bring processors and memory together. If glass provides that foundation at acceptable yield, Nvidia gains another path to larger and more capable AI systems.
Table 1 puts a price on the memory decisions surrounding that opportunity. Under the stated assumptions, the modeled HBM bill for a 288 GB GPU more than doubles between 2026 and 2027 despite unchanged capacity. A 192 GB design would lower that bill, while a larger glass-enabled package could make room for more HBM and raise it. Nvidia would have to weigh either configuration against the performance and economics of the finished accelerator.
For investors, the glass milestones are customer qualification, reliable through-glass connections, and evidence of production yields suitable for high-value AI packages. Those developments would turn glass from a promising material into a measurable equipment and substrate opportunity.
Contact [email protected] for any questions or corrections.
Shares of technology giant NVIDIA Corp (NASDAQ:NVDA) are trading higher Monday after the company announced a record stock buyback. Here are the details and how Jim Cramer may have predicted the move happening.
• NVIDIA stock is building positive momentum. What’s driving NVDA shares up?
With potential pressure on meeting optimistic earnings and revenue forecasts in the future, Nvidia has announced a record stock buyback.
The company’s board of directors added $150 billion to its existing buyback, which takes the remaining total up to $235 billion. Nvidia said this is the largest share buyback authorization in history.
Nvidia will execute the remaining share buybacks through fiscal 2028.
"Our cash generation gives us the capacity to invest in the technologies that advance this transformation and return capital to shareholders. This authorization reflects our confidence in the long-term opportunity ahead," Nvidia CEO Jensen Huang said.
Read Next
Jim Cramer’s Nvidia WishNews of the increased buyback comes around two weeks after CNBC host Jim Cramer said he was not giving up on Nvidia stock, despite a declining stock price.
"I am confident that almost every deal he has done will pay off in better relationships and big profits," Cramer said.
Along with his bullish view, Cramer said his suggestion to boost the stock price is for Nvidia to conduct a $500 billion share buyback.
“It would demonstrate a level of conviction that is much needed right here. At 14x earnings, Nvidia’s stock is the best investment Jensen Huang can make.”
While Nvidia didn’t announce a $500 billion share buyback, the $235 billion total is nearly half of Cramer’s total.
It’s likely that Nvidia had planned the share buyback for some time or did it for several reasons and not just because Cramer said so.
Nvidia Stock Price ActionNvidia stock is up 2.3% to $230.28 on Monday versus a 52-week trading range of $164.27 to $236.54. Nvidia stock is up 21.9% year-to-date in 2026.
Read Next
Photo created using images from Shutterstock.
Market News and Data brought to you by Benzinga APIs
Nvidia (NVDA +1.68%) and the words "dividend stock" aren't normally mentioned in the same sentence, but maybe they should be. While Nvidia is normally tagged as a high-growth, artificial intelligence stock, which it is, it's also a growing dividend payer. While the dividend payout isn't as high as some others, it could rapidly expand over the next few years as Nvidia's cash flows multiply.
Buying Nvidia stock today could mean it becomes one of the bigger dividend payers in your portfolio in the future, and that's just one of a growing list of reasons to buy it.
Image source: The Motley Fool.
Nvidia recently hiked its dividend For the longest time, Nvidia's dividend was basically a joke. The annual payout was $0.04, or $0.01 per quarter. During its Q1 earnings report, Nvidia announced it would increase its dividend to $0.25 per quarter, or $1.00 per year.
With Nvidia trading at $225 as of Sept. 25, that only equates to about a 0.45% yield. Most dividend investors want a yield far higher than that, so Nvidia typically doesn't appear on high-paying dividend screeners. But that's only one part of the equation.
Premium Feature
Moneyball Superscore
95/100
Today's Change
(
1.68
%) $
3.79
Current Price
$
228.86
Dividend investors should also pay attention to the potential for dividend growth. Home Depot (HD -1.13%) is often cited as one of the top dividend-paying companies. While its yield isn't particularly high (about 3.2%), it's a robust yielder that many dividend investors center their portfolios around.
The payout ratio is a key metric that dividend investors need to track. It measures how much of its earnings a company pays out in dividends. Home Depot's dividend payout ratio is fairly high, typically above 50%. But that's still a healthy figure, far below 100%, and it indicates that Home Depot isn't stretched to pay its dividend each quarter. Nvidia's is much lower, at about 10%.
HD Payout Ratio (Quarterly) data by YCharts.
That means there's massive room for dividend growth at Nvidia, and it may continue hiking its dividend to reward shareholders. Nvidia could quintuple its payout ratio and still be just below Home Depot's dividend commitment.
So, Nvidia is not a hefty dividend payer now, but as it matures, it could become a bigger one. That makes Nvidia a dividend stock well worth considering today, as you get the benefit of a small but growing dividend and a stock with some of the best growth prospects on the planet.
There are many reasons to buy Nvidia stock, and its growing dividend is one of them.
SummaryNvidia Corporation announced a $150 billion increase to its buyback program, bringing the total authorization to $235 billion through fiscal 2028.NVDA continues to deliver exceptional revenue and profit growth, with analysts expecting over 90% revenue growth this fiscal year.Despite its surge, NVDA stock remains the cheapest among major chipmakers and has 43% implied upside to the average analyst price target. tiero/iStock via Getty Images
Over the last couple of years, the best growth story in the market has been Nvidia Corporation (NVDA). With companies looking to win the Artificial Intelligence revolution, the chipmaker's products have sent revenues and earnings
42.1K Followers
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Investors are always reminded that before making any investment, you should do your own proper due diligence on any name directly or indirectly mentioned in this article. Investors should also consider seeking advice from a broker or financial adviser before making any investment decisions. Any material in this article should be considered general information, and not relied on as a formal investment recommendation.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
As the debate rages over whether the recent spate of rogue AI agents is a step toward AGI or a more conventional engineering problem, Nvidia is offering its own answer to problem.
Nvidia CEO Jensen Huang on Monday introduced a toolkit of software and hardware products that add independent security layers around AI agents to ensure they stay within their test environments even if they attempt to break out.
The release follows a string of hacking incidents involving AI models from Anthropic, Google, OpenAI, and Meta that bypassed security controls to escape their testing environments and access real-world systems. The first and most prominent example occurred this summer when OpenAI agents breached Hugging Face while trying to complete a cybersecurity task. And the hits keep on coming — OpenAI published a new site dedicated to reports of its AI agents going rogue.
Huang said Monday during an interview with CNBC that its new Nvidia Open Agent Safety Platform would have prevented these breaches.
Nvidia, which has made tens of billions of dollars selling its GPU and CPU chips to AI labs, doesn’t support slowing down development or adding new regulations to the industry to solve the security problem. The answer, the company believes, is to move some security controls outside the agent altogether — creating a constant and independent security guard that will keep AI agents in check.
“AI’s extraordinary potential for society will only be realized if we solve AI safety,” Huang said in a statement. “As we continue to discover the frontier of AI capabilities, we must accelerate discovery at the frontier of AI safety. Safety and security require full-stack engineering.”
The new Nvidia Open Agent Safety Platform combines OpenShell, its open-source software for controlling what agents can access while they operate, with Sentry, an independent monitoring system that runs on Nvidia’s BlueField-4 data processing units. Nvidia says placing Sentry on a separate processor — rather than on the CPU or GPU where the AI agent operates — provides an isolated view of the agent’s activity.
OpenShell isn’t new; the company announced the software in March. But it’s the combination that Nvidia believes will provide the security layer needed to keep the industry plugging along. OpenShell provides the software boundary around the agent, while Sentry adds another line of defense at the hardware level tha the company says will continuously monitor behavior and “quarantine agents that attempt to move outside their boundaries in milliseconds.”
Nvidia listed dozens of companies that have signed on to to support the effort and use the open-source platform including Anthropic, Arm, Microsoft, Oracle, and SpaceX. OpenAI is not listed as a participating company.
Huang told CNBC in an interview Monday that work on this effort started a year ago following the introduction of OpenClaw, an operating system of agents created by Peter Steinberger. In March, Nvidia released NemoClaw, an enterprise-grade AI agent platform and its own version of OpenClaw that baked in security.
“When you deploy an agent, no matter how smart, the first thing you do is to take away all of its rights,” Huang said during his CNBC interview, later comparing these security measures to how human employees and even executives are managed with companies.
Nvidia’s release was widely supported by those who have cautioned that a slowdown in development could allow China to surpass the U.S. in AI.
David Sacks, a founder, venture capitalist, former White House AI czar, and co-chair the President’s Council of Advisors on Science and Technology, said Nvidia’s announcement is a reminder that agent safety is an engineering problem.
“Recent breakouts weren’t proof that development must stop,” he wrote on X. “They were proof that the sandbox was too weak. The runtime environment was poorly designed and misconfigured.”
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.
Kirsten Korosec is a reporter and editor who has covered the future of transportation from EVs and autonomous vehicles to urban air mobility and in-car tech for more than a decade. She is currently the transportation editor at TechCrunch and co-host of TechCrunch’s Equity podcast. She is also co-founder and co-host of the podcast, “The Autonocast.” She previously wrote for Fortune, The Verge, Bloomberg, MIT Technology Review and CBS Interactive.
You can contact or verify outreach from Kirsten by emailing [email protected] or via encrypted message at kkorosec.07 on Signal.
One infrastructure number changes the Nvidia demand debate Summary
Anthropic has contracted 2.5GW of Nvidia infrastructure through 2028
Anthropic’s artificial-intelligence infrastructure commitments are becoming enormous, with Nvidia NVDA saying the AI developer now has more than $180 billion of contracted value across cloud providers and neocloud operators.
Nvidia disclosed the figure during its latest Non-Deal Roadshow, offering a new look at just how aggressively Anthropic is locking in computing capacity as it competes with OpenAI and other frontier-model developers.
The Dario Amodei-led company has also contracted for 2.5 gigawatts of Nvidia AI infrastructure scheduled for delivery through 2028.
That is important for Nvidia because each gigawatt of AI infrastructure is becoming substantially more valuable to the chipmaker.
Nvidia said its revenue opportunity per gigawatt, based on its reference designs, has risen from roughly $18 billion during the Hopper generation to $25 billion with Blackwell and $40 billion with Rubin.
“Nvidia continues to increase its share within the overall AI infrastructure market,” the company said.
The increase reflects more than higher-end GPUs. Nvidia is expanding into CPU racks for agentic AI, low-latency processing systems, networking and other infrastructure needed to operate what it describes as full-stack “AI factories.”
Its share of information-technology capital spending among the five largest cloud service providers has climbed from 11% in the first quarter of 2023 and is projected by Nvidia to reach 44% by 2027.
Neoclouds are becoming another part of that expansion.
Nvidia said Australian partners including IREN (IREN) and Firmus expect to bring roughly 2 gigawatts of capacity online by 2027.
Investor takeawayThe $180 billion figure is striking, but investors should distinguish Anthropic’s total contracted cloud and neocloud value from revenue going directly to Nvidia.
The stronger Nvidia signal may instead be the combination of Anthropic’s 2.5GW commitment and Nvidia’s rapidly rising revenue opportunity per gigawatt.
If Rubin-era systems really generate roughly $40 billion of opportunity per gigawatt, continued capacity commitments from frontier AI developers could dramatically expand Nvidia’s addressable market.
The metrics to watch are therefore contracted gigawatts, Rubin deployments, cloud-provider capital spending and how much of each AI data center Nvidia captures beyond GPUs.
That broader infrastructure opportunity helps explain why Nvidia simultaneously expanded its share-repurchase authorization by $150 billion to $235 billion while continuing to invest aggressively in AI.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
NVIDIA Corp.’s (NASDAQ:NVDA) record $150 billion share-repurchase authorization is putting one ETF at the top of the list of the market’s most actively traded ETFs on Monday, as investors react to a fresh boost for the AI chipmaker’s shares.
• NVIDIA stock is building positive momentum. What’s driving NVDA shares up?
Nvidia shares rose more than 2% on Monday after the company announced the additional authorization, lifting its remaining buyback capacity to $235 billion. The new authorization is the largest increase in a share-repurchase program in history and is expected to be executed through fiscal 2028.
The move has the opposite effect on the GraniteShares 2x Short NVDA Daily ETF (NASDAQ:NVD), which seeks to deliver -2x Nvidia’s daily return before fees and expenses. NVD was down about 5% at one point on Monday, while Nvidia was gaining nearly 2.5%.
NVD’s Heavy Trading Adds to the ActionNVD has been one of the most heavily traded single-stock ETFs tied to Nvidia. On Monday, volume reached 83.9 million shares. Its average daily trading volume is around 77.6 million.
That activity highlights how investors are using leveraged ETFs to express short-term views on Nvidia rather than simply holding the stock.
NVD’s inverse exposure has also produced sharply different performance from Nvidia over longer periods. The fund posted a 63% dip in the past 12 months, while Nvidia gained 29% over the same period. Because NVD resets its leverage daily, its performance over periods longer than one session can diverge substantially from -2x Nvidia’s cumulative return.
Nvidia’s Cash Machine Gets BiggerThe buyback expansion underscores the scale of Nvidia’s cash generation as AI infrastructure spending continues. The company said the additional authorization reflects confidence in the long-term opportunity in AI and accelerated computing.
For NVD traders, however, Monday’s action demonstrates the other side of the Nvidia trade: a stronger NVDA can translate into an amplified decline for the inverse ETF.
Meanwhile, Nvidia’s leveraged long products are moving in the opposite direction. The T-REX 2X Long Nvidia Daily Target ETF (BATS:NVDX), was up about 7% at one point on Monday, illustrating how quickly leveraged ETF performance can diverge depending on the direction of the underlying stock.
Read Next
Photo: Shutterstock
Market News and Data brought to you by Benzinga APIs
Characteristics and Risks of Standardized Options: https://bit.ly/2v9tH6D. Nvidia (NVDA) CEO Jensen Huang is "bringing down the temperature" on rapid AI development fears with its new agent safety program, says Kevin Hincks.
Nvidia on Monday announced the release of software safety tools for artificial intelligence (AI) agents that it said would've stopped the hack of Hugging Face by rogue OpenAI agents.
The incident involving Hugging Face, which was acquired by Nvidia for $13 billion, involved OpenAI agents that broke containment from an internal test and the two companies ultimately worked together to defeat the attack.
Nvidia's announcement comes as OpenAI and Anthropic, the two top AI labs in the U.S. that develop frontier models, are investigating numerous instances in which AI agents hacked into commercial and government systems.
Justin Boitano, vice president and general manager of enterprise computing at Nvidia, said at a media briefing, "From what we know, this new security platform could have stopped the breach if it was being used in frontier labs for model evaluation early on."
TOP AI COMPANIES CALL FOR SAFETY MEASURES WHILE CRITICS WARN REGULATION COULD STIFLE INNOVATION
Nvidia CEO Jensen Huang has touted open AI systems as helpful in securing tech systems. (Reuters/Lisi Niesner)
Nvidia's OpenShell provides what the company described as an open-source secure runtime for executing autonomous AI agents in sandboxed environments with kernel-level isolation.
It said that "every agent should run in a zero-trust environment out of the box. They need isolation, monitoring, and behavior detection," which the software can offer.
AI agents can drift from their intended task or operating constraints in response to a policy block, a bug or a missing tool, if instructions are ambiguous or agents are left to run for days or weeks to solve difficult problems, and they fail repeatedly, Nvidia said.
AI EXPERT WARNS 'MACHINE-SPEED' CYBERTHREATS MAY REQUIRE FASTER DEFENSES THAN HUMAN-LED RESPONSES
Hugging Face was acquired by Nvidia after a hack by rogue OpenAI agents. (Jaque Silva/NurPhoto via Getty Images)
Each agent runs in a sandbox in OpenShell, which checks the limits and instructions provided by the operator before an agent runs and enforces them as it works.
Organizations can also get an additional, independent layer of security through Nvidia Sentry, which extends monitoring and enforcement into Nvidia's BlueField hardware.
The security foundation is programmable with Nvidia DOCA and can be connected with OpenShell to help identify drift, investigate suspicious behavior and determine when intervention or deeper analysis is needed.
BANKS WARN AI SHOPPING AGENTS COULD INCREASE RISK OF SCAMS, FRAUD AND DATA PRIVACY BREACHES
Ticker Security Last Change Change % NVDA NVIDIA CORP. 228.86 +3.79 +1.68% OpenShell and Sentry are part of the Nvidia Open Agent Safety Platform, which is being adopted by a range of companies in the tech sector and other industries, including Anthropic.
"We're advancing this openly, and we want to engage everybody to work with us," Boitano added.
Nvidia authorized an additional $150 billion share buyback, bringing its remaining authorization to $235 billion through fiscal 2028, and launched its Open Agent Safety Platform with partners including Anthropic but not OpenAI. Yahoo Finance Host Julie Hyman, Breaking Business News Reporter Jake Conley and Senior Autos Reporter Pras Subramanian debate why a high-growth company is buying back stock, how Nvidia CEO Jensen Huang describes walling off AI agents, and whether any safety fix arrives only after the harm is done.
Interest rates near multi-decade highs, rising geopolitical tensions, persistently elevated inflation, a hawkish Fed, and constant warnings about an AI bubble, and yet volatility remains contained while the leading stock indexes sit just below record highs. How can all of this be true?
A strong economy, rising productivity, the AI infrastructure boom, federal deficit spending, and still-supportive financial conditions continue to keep the market very buoyant.
“As long as the US consumer keeps spending and the AI build-out keeps happening, things continue to motor along. And while the tail risks keep growing—geopolitical instability, domestic political questions, the trade war, inflation, energy prices—the market doesn’t seem to care as long as those 2 things of consumer spending and AI build-out continue forward, the underlying economy and, therefore, the markets keep powering forward.” — Apollo Global Management Co-President Scott Kleinman
“Economy is strong. Not more to say. I mean I can’t explain why the economy is so strong, but it is very strong on all fronts.” — M&T Bank CEO René Jones
“...we’re not seeing any deterioration. It’s continued strength. It may not be at the highest level that it’s been over the last 12 months, but we do see continued strength.” — Bank of America Co-President Jim DeMare
Quotes via The Transcript newsletter.
That strength has not been evenly distributed across the market, however. Over the last two months, AI-related stocks have increasingly carried the major indexes while many other areas have weakened.
Market breadth has been notably poor. The equal-weight S&P 500, Dow Industrials, and Russell 2000 have all significantly underperformed the capitalization-weighted S&P 500 and Nasdaq 100, with the latter already pushing to new highs.
Image Source: TradingView
At the same time, there are signs that sentiment and breadth may be approaching a bottom. The percentage of stocks trading below their 50-day and 200-day moving averages is nearing levels last seen around the March lows. That does not guarantee an immediate rebound, but it increasingly suggests the market may be closer to a washout than the beginning of another major leg lower.
Image Source: MacroMicro
That said, predicting the market’s direction over the next several days or weeks is difficult and, ultimately, not particularly necessary. What is much clearer is where leadership remains concentrated.
AI infrastructure continues to stand out. Most notably, Nvidia ((NVDA - Free Report) ), Bloom Energy ((BE - Free Report) ), and Amphenol ((APH - Free Report) ) are top-ranked companies positioned in critical, supply-constrained areas of the AI infrastructure buildout. With strong fundamental momentum and continued demand for their products, all three appear well positioned to lead the next leg of the market higher.
Image Source: Zacks Investment Research
Bloom Energy Shares Still Appealing Despite Massive AppreciationBloom Energy stands out to me as one of the most compelling names in the AI infrastructure trade.
Chips, AI models, and data center capacity are all supply constrained, but power may be the most difficult bottleneck to solve. Semiconductor capacity can expand, and new data centers can be built, but adding large amounts of reliable power infrastructure is typically slower and more complicated. That puts Bloom in an exceptionally strong position as AI-driven electricity demand continues to accelerate.
The earnings outlook reflects that opportunity. Current year profit estimates have risen 28.6% over the last 60 days, while next-year estimates are up 14.8%, giving the stock a Zacks Rank #1 (Strong Buy) rating. Sales are expected to surge 104% this year and another 57% next year, with earnings projected to climb 255% and 81%, respectively.
Some investors may be hesitant after the stock’s enormous two-year run, particularly with shares trading around 100x forward earnings. But the underlying growth outlook remains extremely strong.
The technical setup also provides a useful framework. BE shares are down sharply today, but remain within the trading range established over the last month. A breakout above that range would likely signal the start of another leg higher, while a decisive loss of support would be a reason to become more cautious.
Image Source: TradingView
Nvidia Stock on the Verge of Record HighsNvidia stock has been relatively tame compared with the explosive gains it delivered during the early stages of the AI boom. That is understandable given its now-massive $5.5 trillion market capitalization, but it does not mean the upside opportunity has disappeared.
Analysts continue to raise their earnings forecasts, with next year’s estimate up 22% and revisions moving higher almost unanimously across other periods as well. Sales are expected to climb 88% this year and another 65.5% next year, while earnings are projected to rise 94% and 66%, respectively.
Despite that growth, Nvidia trades at just 24.3x forward earnings, roughly in line with the broader market despite carrying substantially stronger growth expectations.
The technical setup also looks constructive. The price action is not especially clean, but NVDA is clearly pressing against record highs, which remain the key resistance level. The trading range established over the last several months puts support near $210.
Investors should watch that range closely. A decisive breakout to new highs would likely signal another leg higher, while a break below support would weaken the setup.
Image Source: TradingView
Amphenol Stock Offers Growth at a Reasonable PriceAmphenol is a core pick-and-shovel play on the AI infrastructure buildout, supplying high-speed copper and fiber-optic interconnects, power distribution components, and connectors used across AI servers and data center systems. It also offers an attractive GARP-style setup, supported by strong growth forecasts and aggressive upward earnings revisions.
APH carries a Zacks Rank #1 (Strong Buy), backed by nearly unanimous analyst upgrades across timeframes. Current-year earnings estimates have risen 9% over the last 60 days, while next-year estimates are up 12.4%.
Revenue is projected to climb 54% this year and another 18% next year, while EPS is expected to grow 59.3% and 23%, respectively.
Despite that growth, Amphenol trades at a forward earnings multiple of 31.6x. The broader industry backdrop is also strong, with the Electronics – Connectors industry currently ranked in the Top 2% of all Zacks industries, at 6 out of 247.
The technical setup may be the cleanest of the three stocks. APH shares have been coiling in a tightening bull flag, with clearly defined support and resistance levels. A breakout in either direction should provide a strong signal on the next move, though the fundamental and technical backdrop currently favors an upside resolution.
Image Source: TradingView
What’s Next for the Market and AI Stocks?The market continues to face legitimate risks, but the weight of the evidence still points higher. Economic growth remains firm, AI investment continues to accelerate, and earnings estimates for the strongest companies are still moving higher.
Breadth could remain uneven in the near term, but that does not diminish the strength of the current leaders. As long as the fundamental backdrop holds, investors should continue to favor companies with strong earnings momentum, clear exposure to the AI infrastructure buildout, and constructive technical setups.
For now, Nvidia, Bloom Energy, and Amphenol check all three boxes.
Marley Kayden talks about a pair of headlines moving Nvidia (NVDA) at the start of Monday's trading day, particularly on the Mag 7 company's announcement of an open agent safety platform. The initiative addresses recent concerns of AI development occurring too quickly.
Buy Micron (MU) for a margin-driven upside. The article flags expectations for extreme growth and 86% gross margin guidance; the trade is that AI memory pricing and mix improve enough to push margins above expectations, which would confirm AI capex strength. A strong print should lift MU shares even if revenue growth is merely “good,” because margin upside is the catalyst that tends to reprice the whole memory cycle.
Key Risk: Micron’s gross margin guidance or demand outlook disappoints (pricing weakens or customers slow AI memory orders), causing the stock to fall despite revenue growth.
NVDA sell into Micron
Sell Nvidia (NVDA) ahead of Micron (MU) earnings. The setup is bearish: diamond reversal, MACD bearish crossover, and RSI rolling over. If MU’s AI-memory demand or margins disappoint versus the very high bar, NVDA’s near-term multiple compresses fast because MU is a key supplier and a demand read-through for AI hardware. Target is a move toward $200 if the technical breakdown confirms; exit on a clean reclaim above $236.
Key Risk: Micron beats hard (revenue and 86%+ margin) and AI memory demand stays hot, triggering a broad NVDA re-rating that overwhelms the technical sell signal.
Nvidia stock price has remained inside a narrow range in the last two weeks. It ended last week at $225, down modestly from the year-to-date high of $236. This consolidation will be put to the test this week when Micron Technology releases its financial results. Also, there are reports that China is prepared to allow top companies to buy new Nvidia chips.
A key catalyst for Nvidia stock will come out on Wednesday when Micron releases its earnings report. These numbers are important because Micron is one of Nvidia’s biggest suppliers, accounting for a substantial portion of its sales.
Additionally, Micron is one of the top players in the artificial intelligence industry, where it provides high-bandwidth memory that is essential in data centers. As a result, its numbers will provide hints on whether the industry is growing or not.
Analysts have high expectations about Micron’s earnings, with the average estimate being that its revenue jumped by 0ver 320% in the last quarter. Precisely, analysts see the revenue coming in at over $51 billion, much higher than what the company made in the last financial year.
The company has also provided an exciting margin guidance, with its target being 86%. As such, there is a possibility that its gross margin will be higher than this.
Meanwhile, Nvidia stock is reacting to reports that China was considering allowing domestic companies like Alibaba and ByteDance to buy some of its most advanced chips. The reports came from Reuters, which cited people familiar with the matter.
According to Reuters, the Ministry of Information Technology has asked these companies to report their plans to buy RTX Pro 5500 chips. Officials believe that the US government will approve the purchases, especially after last week’s meeting between Xi Jinping and President Trump.
China is one of the biggest markets for GPUs and other technology products. Nvidia has found it hard to do substantial business in the country because of the back-and-forth between the US and China. As a result, the management has avoided adding its Chinese business to its forward guidance.
Nvidia stock is also reacting to the growing calls for regulating the AI industry. Jensen Huang, its CEO, has become a major opponent of these calls, maintaining that AI companies should self-regulate.
His opposition is likely because any slowdown in AI spending would have a major impact on its business. Despite all this, analysts believe that the company’s growth has more room to run, with the average estimate being that its annual revenue will jump to $411 billion this year and $682 billion next year.
NVDA stock chart | Source: TradingView
Technicals suggest that Nvidia’s shares may be on the cusp of a bearish breakout. They have formed a diamond reversal pattern, which often leads to a retreat.
The MACD indicator has also formed a bearish crossover and is pointing downwards. Also, the Relative Strength Index (RSI) has formed a descending channel.
Therefore, these patterns mean that the stock may drop in the coming days. If this happens, it may drop to the psychological level of $200. On the other hand, a move above the all-time high of $236 will point to more gains.
