NVIDIA a MediaTek prohloubily spolupráci na AI platformách od edge po cloud. MediaTek přijme NVLink Fusion pro vývoj vlastních XPUs a NVIDIA do něj investovala 3,5 miliardy USD v konvertibilních dluhopisech.
Companies Expand Collaboration Across Multigenerational Cloud AI Factories, Local AI Computing and Automotive MediaTek to Adopt New NVIDIA NVLink Fusion Platform, Helping Customers Take Custom XPUs to NVIDIA NVLink-Connected, Rack-Scale AI Factories SANTA CLARA, Calif., Aug. 31, 2026 (GLOBE NEWSWIRE) -- NVIDIA and MediaTek today announced a deepening of their longstanding collaboration to build the next generations of AI computing platforms — spanning AI infrastructure, local AI computing and automotive.
As part of the expanded collaboration, MediaTek will adopt the NVIDIA NVLink Fusion™ platform to provide hyperscalers, cloud service providers and frontier model developers with a prevalidated path to develop custom XPUs and bring them into NVIDIA NVLink™-connected, rack-scale AI factories.
The companies combine NVIDIA’s accelerated computing, AI, graphics and software platforms with MediaTek’s leadership in custom silicon, high-performance computing, power-efficient system-on-chip (SoC) design, advanced packaging, interconnects and connectivity.
NVIDIA has also invested $3.5 billion in convertible bonds issued by MediaTek.
NVIDIA and MediaTek are collaborating in three major areas:
AI infrastructure: MediaTek will work with NVIDIA’s NVLink Fusion ecosystem to enable customers to develop custom AI infrastructure designed to integrate with NVIDIA rack-scale systems and AI factories.Local AI computing: The companies will continue to collaborate on multiple generations of NVIDIA RTX Spark™ and DGX Spark™ PC chips, powering consumer PCs, AI developer supercomputers and enterprise-class workstations, that integrate NVIDIA GPUs with MediaTek SoCs.Automotive: MediaTek and NVIDIA will continue developing platforms for AI-powered, software-defined vehicles in the era of physical AI.
“AI is transforming every computing platform — from the world’s largest AI factories to the PC and the car,” said Jensen Huang, founder and CEO of NVIDIA. “MediaTek is one of the world’s great semiconductor companies, with exceptional expertise in system-on-chip design, connectivity, leading performance and power efficiency. Together, we’re building platforms that bring NVIDIA accelerated computing to new markets and give customers the freedom to create differentiated AI systems at enormous scale.”
“MediaTek and NVIDIA share a vision for making advanced AI computing pervasive across the technology landscape,” said Rick Tsai, vice chairman and CEO of MediaTek. “NVIDIA’s investment strengthens a collaboration that spans cloud AI infrastructure, local AI computing and automotive in the era of physical AI. By combining NVIDIA’s leadership in accelerated computing and AI software ecosystem with MediaTek’s expertise in a diverse AI technology portfolio from edge to cloud, and our leadership position in custom silicon, we can accelerate innovation for our customers.”
Building Custom AI Infrastructure With NVLink Fusion Platform
MediaTek will offer the NVLink Fusion platform as a design foundation for customers developing custom AI accelerators, enabling their platforms to evolve alongside future NVIDIA architectures.
The NVLink Fusion platform provides a prebuilt, prequalified and system-prevalidated foundation for multi-die XPU development — accelerating the path from silicon and advanced packaging to rack-scale systems.
The NVLink Fusion platform brings together the critical technologies surrounding a custom XPU, including:
NVIDIA NVLink Fusion chiplet, connecting XPUs to the NVIDIA NVLink scale-up fabric using NVIDIA photonics or electrical interconnects.NVIDIA NVLink-C2C, providing high-bandwidth, energy-efficient connectivity between XPUs, NVIDIA Rosa CPUs and other compatible processors.NVIDIA NVHBM, integrating customized memory capabilities to increase bandwidth and energy efficiency while dedicating more silicon area to compute.
Building a custom accelerator is only the beginning of deploying custom XPUs in rack-scale AI factories. Integrating multi-die architectures, advanced packaging, high-speed SerDes, HBM, I/O and scale-up networking into a manufacturable, production-ready system requires extensive chip-to-rack engineering, qualification and supply-chain support.
Rather than engineering and qualifying every element surrounding a custom XPU from the ground up, customers can focus resources on the differentiated compute that defines their platforms while relying on NVIDIA and MediaTek for the NVLink connectivity, memory architecture, packaging, manufacturing and rack-scale technologies required for production deployment.
Customers can bring their XPU designs to MediaTek and tailor connectivity, memory, packaging, performance and power characteristics to their workloads and infrastructure requirements.
Additionally, MediaTek is part of the broader NVIDIA NVLink Fusion ecosystem, which enables hyperscalers, cloud service providers and frontier model developers to seamlessly connect custom XPUs to NVIDIA’s AI infrastructure.
With NVLink Fusion, partners can leverage NVIDIA’s proven scale-up and scale-out technology stack and ecosystem, as well as the NVIDIA MGX™ rack-scale architecture, to reduce development complexity, increase performance and accelerate time to market for semi-custom AI factories.
Bringing Supercomputers to Local AI Computing
NVIDIA and MediaTek are collaborating to advance local AI computing for the era of generative and agentic AI, combining NVIDIA’s leadership in accelerated computing with MediaTek’s expertise in high-performance, power-efficient system-on-chip design.
MediaTek collaborated with NVIDIA on the GB10 Grace Blackwell Superchip that powers NVIDIA DGX Spark, which combines an NVIDIA Blackwell GPU and Grace CPU connected by NVLink-C2C to bring powerful AI capabilities to edge systems. The companies have extended their collaboration with NVIDIA RTX Spark to power the next generation of consumer PCs redefined for the AI era.
Advancing the AI-Defined Vehicle in the Era of Physical AI
Additionally, NVIDIA and MediaTek are collaborating across multiple generations to advance AI-powered, software-defined vehicles, combining MediaTek’s automotive system-on-chip design leadership with NVIDIA’s accelerated computing, AI, graphics and software.
MediaTek Dimensity Auto platforms integrate NVIDIA technologies to deliver advanced AI and NVIDIA RTX™ graphics for intelligent vehicle cockpits and can work alongside NVIDIA DRIVE AGX™. The companies continue to build on this foundation across future generations, creating a scalable architecture for increasingly intelligent, AI-defined vehicles.
About MediaTek
MediaTek (TWSE: 2454) is a global leader in fabless semiconductor design, powering AI from the edge to the cloud.
About NVIDIA
NVIDIA (NASDAQ: NVDA) is the world leader in AI and accelerated computing.
For further information, contact:
Allie Courtney
Corporate Communications
NVIDIA Corporation [email protected]
Toshiya Hari
Investor Relations
NVIDIA Corporation [email protected]
MediaTek Forward-Looking Statements
The information contained in this press release relates solely to the business collaboration between MediaTek and NVIDIA and is intended to describe the nature and context of the collaboration between MediaTek and NVIDIA. It does not constitute, and should not be construed as, any business, operational, financial, revenue, earnings, or other forecast information under applicable Taiwan laws and regulations. The implementation, success, and commercial outcome of the collaboration, including any related product development activities, are subject to various uncertainties and risks. Important factors include the impact of competitive products and pricing, timely acceptance of products design by our customers, timely introduction of new technologies, ability to ramp new products into volume, industry wide shifts in supply and demand for semiconductor products, market oversupply, availability of manufacturing capacity, financial stability in end markets, potential difficulties in talents retention, unexpected costs and expenses, global economic conditions or non-economic conditions and any other risks factors. MediaTek makes no representation, warranty, or assurance regarding the achievement of any anticipated objectives, milestones, performance, or results arising from the collaboration. Investors are advised to exercise independent judgment and conduct their own evaluation before making any investment decision. Any investment decision should not be based solely on the information contained in this press release.
MediaTek, MediaTek logo, and Dimensity Auto are trademarks and/or registered trademarks of MediaTek Inc. All other company names, product names, service marks, and logos referenced herein may be trademarks or registered trademarks of their respective owners.
NVIDIA Forward-Looking Statements
Certain statements in this press release including, but not limited to, statements as to: expectations with respect to NVIDIA’s partnership with MediaTek, and the benefits and impact thereof; expectations with respect to growth, performance, availability, and benefits of NVIDIA’s products, services and technologies, and related trends and drivers; expectations with respect to technology developments, and related trends and drivers; projected market growth and trends; expectations with respect to AI and related industries; and other statements that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections based on management’s beliefs and assumptions and on information currently available to management and are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: global economic and political conditions; NVIDIA’s reliance on third parties to manufacture, assemble, package and test NVIDIA’s products; the impact of technological development and competition; development of new products and technologies or enhancements to NVIDIA’s existing products and technologies; market acceptance of NVIDIA’s products or NVIDIA’s partners’ products; design, manufacturing or software defects; changes in consumer preferences or demands; changes in industry standards and interfaces; unexpected loss of performance of NVIDIA’s products or technologies when integrated into systems; NVIDIA’s ability to realize the potential benefits of business investments or acquisitions; and changes in applicable laws and regulations, as well as other factors detailed from time to time in the most recent reports NVIDIA files with the Securities and Exchange Commission, or SEC, including, but not limited to, its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Copies of reports filed with the SEC are posted on NVIDIA’s website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.
Nvidia ve 2. fiskálním čtvrtletí zvýšila tržby meziročně o 106 % na 96,2 miliardy USD a zisk na akcii o 128 % na 2,46 USD, obojí nad odhady. Historicky ale její akcie v září klesaly v průměru o 0,8 %.
During its fiscal 2027 second quarter (ended July 26), Nvidia (NVDA -4.58%) reported a year-over-year revenue gain of 106% to $96.2 billion. Diluted earnings per share soared 128% to $2.46. These two headline figures came in ahead of Wall Street estimates. Shares are up 8% since the announcement (as of Aug. 28).
Nvidia remains the dominant artificial intelligence (AI) enterprise. And the latest numbers support the claim that demand for its data center chips isn't softening. Investors that were bearish have lost out on big gains.
But history says that the month of September could be a down period for this AI stock.
Image source: The Motley Fool.
Past data doesn't support a huge gain in September September is historically a weak month for the S&P 500 index. Over the 10-year period from 2016 through 2025, the closely watched benchmark posted an average loss of 1.3% in September. This didn't prevent the index from posting a fantastic total return during that time.
Nvidia tracks similarly. Over the same period (2016 through 2025), the technology stock's price declined an average of 0.8%.
Investors should come away with no clear takeaway. It's impossible to predict how Nvidia shares will perform in September. The business continues to operate at full strength from a fundamental perspective. This momentum can lift the stock price.
However, inflation remains a problem for the economy. And there's still a chance that the Federal Reserve raises the Fed funds rate before the year ends. This could pressure the equity market's performance as investors adopt a downbeat view of the tighter monetary policy.
Set a five-year time horizon It's so easy for investors to get caught up in the short term. There is a constant flood of information. While paying attention to these things can make you feel very knowledgeable about the companies in your portfolio or on your watch list, it distracts from what really matters.
Spend less time thinking about what September will bring. Instead, focus your attention on the next five years. This is the correct time horizon to adopt before deciding whether to buy a particular stock.
Nvidia shares soared 901% in the past five years. Given that it's now a $5.5 trillion company, I don't believe it's realistic to expect a similar return over the next 10 years.
But that doesn't mean investors should completely disregard the stock. There are some very compelling bull-case arguments to look at.
Nvidia's growth continues to be exceptional. And sell-side analysts believe the top line will expand at a 58% yearly rate between fiscal 2026 and fiscal 2029.
This is one of the most profitable enterprises on Earth. A supply-and-demand imbalance, resulting in sustained pricing power, supported a 62% net profit margin in the second quarter.
After such a jaw-dropping performance, you might initially assume the current valuation is expensive. This is far from the truth, though. Investors can buy this "Magnificent Seven" stock at a forward price-to-earnings (P/E) ratio of 23.9. This is only a 14% premium to the S&P 500 index.
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This setup makes Nvidia appear like a no-brainer buying opportunity. The financials are impressive. And the valuation is attractive.
But the best investors put in the effort to understand the risks. Any business that was registering the revenue growth and profitability that Nvidia was would likely command a valuation that's a significant premium to the benchmark index. The market must be worried about something.
I believe the chief risk relates to the durability of the AI infrastructure build-out. On the Q2 2027 earnings call, Chief Financial Officer Colette Kress mentioned that the five top hyperscalers will spend $1.3 trillion on capital expenditures in 2027.
These is an exciting forecast. However, there is a chance that this spending boom slows sooner than the bulls hope. A lot of capital is riding on AI delivering product and service innovation and new economic activity. If it fails to deliver on its promise, you can bet that money flowing to AI labs, hyperscalers, and the chip sellers will take a hit.
This risk should not be ignored even though it's still worth taking a chance on Nvidia shares right now.
Nvidia podle článku není výrazně nadhodnocená, protože její ocenění je u víceletých minim a růst i dominance v AI dál pokračují. Management zároveň čeká ve fiskálním roce 2028 růst tržeb asi o 70 %.
I do not think Nvidia (NVDA -4.58%) is wildly overvalued right now, and that's after a day when the stock posted strong earnings and management issued a bullish forecast, sending the stock up 8.7%. I don't think it's overvalued because its current valuation multiple is near multiyear lows, while its earnings and AI dominance are still compounding at rates that make today's price look reasonable. By 2028, if management delivers anything close to management's current guidance, this stock will be a great buy now.
When I look at Nvidia, I start with the basic math. The stock trades around a mid-30s trailing price-to-earnings ratio and a low-20s forward price-to-earnings ratio, levels that are actually below its 10-year average and far under the 50-plus multiples it carried at earlier stages of the AI boom. On top of that, its price-to-earnings-to-growth (PEG) ratio, which compares the valuation to expected growth, sits near 0.5, a signal that the market is not aggressively overpaying for the growth analysts are modeling over the next few years.
In plain English, investors are paying a premium, but it is a smaller one than they used to pay for Nvidia, and it has come down even as the business has exploded.
Image source: Getty Images.
The scale of the current business This is not a story stock on a few billion dollars of revenue. In its most recent fiscal year, Nvidia generated over $250 billion in total revenue, up roughly 65% year over year, with data center GPUs now responsible for the overwhelming majority of the business. Independent estimates put data center and AI accelerator revenue at $190-plus billion, with that segment representing around 90% of total sales. At the same time, Nvidia still controls roughly three-quarters of global AI accelerator revenue, even after its share has fallen from a peak near 87% as AMD and hyperscaler custom chips start to nibble at the edges.
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What the next few years look like Nvidia's valuation will depend less on today's multiple than on whether it can deliver the growth investors expect through 2028.
Analysts see revenue reaching about $390 billion in 2027 and more than $550 billion in 2028, with annual sales growth of roughly 24% to 25%. Management's outlook is even stronger: about 70% growth in fiscal 2028, which could put revenue near $670 billion.
If Nvidia keeps its gross margin in the low-70% range, much of that added AI revenue could turn into profit and free cash flow. The AI accelerator market is expected to grow from more than $200 billion in 2026 to over $430 billion by 2035. Nvidia may lose some share as competitors gain ground, but its revenue can still rise sharply if overall spending continues to expand. In that case, the stock would not need a higher P/E multiple to support today's price. The bigger risks are execution, whether AI spending holds up, and whether Nvidia can maintain its lead as competition grows.
What could break this thesis? On top of this competition, if hyperscaler custom silicon gains share faster than expected, or if AI demand normalizes rather than compounding, the earnings path I am describing becomes much flatter, and today's valuation could start to look stretched. Regulatory pressure, export controls, or a major shift toward cheaper inference hardware could also dent margins and challenge the idea that 70% growth is sustainable beyond a year or two.
But given the data I have today, I see Nvidia as richly valued yet not absurdly priced -- and that's even after a strong day like Aug. 27. By 2028, I think the debate will be less about whether it was overvalued in 2026 and more about whether investors gave enough credit to the earnings power of a company that effectively became the default AI compute platform for the world.
Nvidia ve 2. čtvrtletí fiskálního roku 2027 zvýšila výnosy na 96,2 miliardy USD, což překonalo odhad 92,2 miliardy USD. Zároveň očekává ve fiskálním roce 2028 růst výnosů alespoň o 70 %.
After the close of trading on Aug. 26, Nvidia (NVDA -4.58%) reported a set of operating results for its fiscal 2027 second quarter (ended July 26, 2026) that blew away Wall Street's expectations, and the company also unexpectedly offered some very bullish forward revenue guidance for fiscal 2028. As a result, Nvidia's stock price soared by almost 9% the very next day.
There is a long list of reasons why Nvidia stock is still a buy, but there is also room for caution right now, particularly surrounding the deals that management is cutting with many of the company's biggest artificial intelligence (AI) customers. So, before investors buy the stock, here's a breakdown of the good news and the bad news.
Image source: Nvidia.
The good news: Rapid growth and an attractive valuation Nvidia supplies the world's best graphics processing units (GPUs) for data centers, which are the main chips used in AI training and inference workloads. The company's new Vera Rubin systems, which include Rubin GPUs, Vera central processors (CPUs), and a series of advanced networking components, provide up to 30 times more performance per megawatt than its previous Blackwell Ultra systems, highlighting the sheer pace of innovation.
Nvidia says Vera Rubin systems will also reduce inference token costs by a staggering 97% compared to Blackwell Ultra. Inference tokens are the text, images, or computer code generated by an AI model in response to a query, so these new chips will dramatically reduce the cost of deploying AI software. This might encourage more AI usage while making data center operators more profitable, which will only increase demand for Nvidia's chips.
Wall Street expected Nvidia to generate $92.2 billion in revenue during its fiscal 2027 second quarter, but the company blew that away by bringing in $96.2 billion, a whopping 106% increase from the year-ago period. The data center segment accounted for $89 billion of that total, and it grew at an even faster rate of 117%.
The global shortage of AI chips and components is giving Nvidia an unprecedented ability to dictate prices, which is also a massive tailwind for its bottom line. As a result, its adjusted (non-GAAP) earnings surged by 120% to $2.22 per share during the second quarter.
That brings me to Nvidia's valuation; the company has now delivered adjusted trailing 12-month earnings of $7.01 per share, placing its stock at a price-to-earnings (P/E) ratio of just 34.9. That is a steep discount to its 10-year average of 61.5, suggesting it might be undervalued right now.
Data by YCharts.
Moreover, Nvidia just told investors to expect revenue growth of at least 70% in fiscal 2028. The company never issues guidance a year in advance, so this caught Wall Street's attention in the best possible way.
The bad news: Concerning circular financing deals The numbers can vary based on location, but building a one-gigawatt data center can cost around $38 billion, with the bulk of that money going toward GPUs and components. Nvidia says the top five hyperscalers, which include the likes of Microsoft and Amazon, will spend a combined $800 billion on AI infrastructure this year, and then a further $1.3 trillion next year. But smaller AI labs are struggling to compete because they simply don't have the same financial resources.
As a result, Nvidia is helping them achieve their goals by investing directly into their companies, and also by partially financing their purchases of GPUs and other hardware. These deals are often called "circular" because Nvidia is basically funding the sale of its own products.
According to the latest guidance from chief financial officer Colette Kress, around 25% of Nvidia's sales in fiscal 2028 will come from customers it has financed in some way. Since the company's revenue could top $670 billion next year, around $168 billion could be funded by its own balance sheet. To put it another way, a huge chunk of Nvidia's forecasted growth is expected to come from customers who don't necessarily have the money to pay for its products up front.
Nvidia has invested in practically every major AI lab, including OpenAI, Anthropic, xAI, Mistral AI, and Perplexity. But these early-stage companies continue to lose truckloads of money while they race to build the best models and attract the most customers, so although Nvidia says its circular financing agreements present a low risk, I think its high degree of ongoing exposure could get really uncomfortable if the AI boom hits a speed bump. That will be especially true if similar deals account for even more of its sales beyond fiscal 2028.
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The verdict Based on its attractive valuation and the company's rapid growth, Nvidia stock could be a great addition to a diversified portfolio, particularly one that already has a low level of exposure to AI stocks.
Nvidia is likely to remain the undisputed leader in AI hardware for years to come, but it's important for investors to pay close attention to further developments in circular financing. If these deals become a much bigger part of the company's revenue in the future, it might be a good idea for investors to trim their position to reduce risk.
Nvidia oznámila čtvrtletní dividendu 0,25 USD na akcii; pro získání 100 USD je potřeba držet 400 akcií. Tržby v předchozím čtvrtletí meziročně vzrostly o 106 % na 96,2 miliardy USD.
Investors seeking to earn $100 from Nvidia’s (NASDAQ: NVDA) next dividend payment will need to own 400 shares, based on its declared quarterly dividend of $0.25 per share.
With Nvidia closing at $217.55 on August 28, 2026, purchasing 400 shares would require an investment of approximately $87,020.
Shareholders who own the stock before the September 10, 2026 ex-dividend date will be eligible to receive the payout, which is scheduled for October 1, 2026.
Nvidia dividend payment schedule. Source: Dividend.com The company currently offers a forward dividend yield of about 0.46%, with a forward payout ratio of 6.44%, indicating that only a small portion of earnings is being distributed to shareholders.
The upcoming dividend follows the previous payment of $0.25 per share made on June 26, 2026. Nvidia has increased its dividend for three consecutive years, although income remains a relatively small part of the stock’s overall investment appeal.
Nvidia stock fundamentals While Nvidia maintains a dividend, the company remains primarily a growth-focused investment driven by artificial intelligence demand.
On August 26, the chipmaker reported fiscal second-quarter results that exceeded Wall Street expectations. Revenue surged 106% year-over-year to $96.2 billion, while adjusted earnings per share climbed 120% to $2.22.
Data center revenue reached $89 billion, up 117% from a year earlier, underscoring continued demand for Nvidia’s AI hardware.
Looking ahead, Nvidia expects third-quarter revenue of approximately $108 billion, which would mark its first quarter generating more than $100 billion in sales.
The technology company also projected roughly 70% revenue growth for fiscal 2028, citing strong AI infrastructure spending across hyperscalers, enterprises, and cloud providers.
The strong outlook has reinforced bullish sentiment among analysts, many of whom maintain ‘Buy’ ratings on the stock, with price targets ranging from above $300 to as high as $515.
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Nvidia čeká na výsledky za 2. čtvrtletí; trh sleduje hlavně vývoj platformy Vera Rubin a hrubou marži. Odhad tržeb je 91,85 miliardy USD a upravený zisk 2,09 USD na akcii.
Nvidia (NVDA - Free Report) will step back into the earnings spotlight after the market closes on Wednesday, August 26, when the AI chip leader reports its much-anticipated Q2 results.
Expectations are understandably elevated, but the setup looks increasingly interesting as Nvidia’s valuation has compressed despite extraordinary earnings growth.
Beyond another potential top-and-bottom-line beat, Wall Street will be focused on the Vera Rubin product ramp, gross margins, and Nvidia’s growing role in financing the massive buildout of AI infrastructure.
Investors are certainly wondering if NVDA can gain momentum with shares up a somewhat subpar 12% year to date despite sitting on enormous gains of +800% in the last five years.
Image Source: Zacks Investment Research
Nvidia's Q2 ExpectationsThe Zacks Consensus Estimate calls for Nvidia to post Q2 revenue of $91.85 billion, representing a whopping 96% increase from $46.74 billion in the year-ago period. Adjusted earnings are projected at $2.09 per share, up 99% year over year.
Those projections are essentially in line with Nvidia's own guidance for $91 billion in revenue, plus or minus 2%, which notably assumes no Data Center compute revenue from China. Data Center sales remain the primary growth engine, with the Zacks Consensus calling for roughly $85.14 billion, or 107% YoY growth.
Is the Vera Rubin Ramp Taking Off?Perhaps more important than the headline Q2 numbers will be Nvidia's commentary surrounding its next-generation Vera Rubin platform, the company’s latest rack-scale AI supercomputer architecture designed to power the next era of agentic AI — systems that can reason, plan, and execute multi-step workflows at massive scale.
Nvidia announced in May that Vera Rubin was ramping into full production, with production shipments slated to begin this fall. More recently, the company said Rubin-based racks are already running at partners including CoreWeave (CRWV - Free Report) ), Alphabet’s (GOOGL - Free Report) ) Google Cloud, Microsoft’s (MSFT - Free Report) ) Azure, Oracle (ORCL - Free Report) ) Cloud Infrastructure, and Nebius (NBIS - Free Report) ).
Therefore, investors shouldn't necessarily expect Rubin to be a major Q2 revenue contributor. Instead, Wall Street will be looking for evidence that production remains on schedule, customer deployments are accelerating, and Rubin can provide another powerful growth leg as Nvidia's Blackwell series of AI chips matures. Any indication that Rubin is pulling forward orders could strengthen expectations for the second half of Nvidia's current fiscal 2027 and FY28.
Gross Margins Remain a Key CheckpointNvidia's profitability will also be closely scrutinized. Management guided for a 75% non-GAAP gross margin, plus or minus 50 basis points, essentially matching the 75% achieved during Q1.
That stability is important as investors assess higher memory and component costs associated with increasingly sophisticated AI systems. Some analysts expect modest pressure during the Rubin transition, but maintaining gross margins in the mid-70% range would reinforce Nvidia's enormous pricing power and help alleviate concerns that escalating hardware costs are eating into profitability.
Image Source: Zacks Investment Research
How Much of Nvidia's Balance Sheet Is Supporting the AI Boom?Another emerging concern is Nvidia's increasingly aggressive effort to help finance the infrastructure that ultimately purchases its chips.
Most notably, Nvidia has provided up to roughly $105 billion of financial backing tied to an OpenAI data-center project in Ohio and is investing another $1.5 billion in SB Energy to support those efforts. Importantly, the $105 billion figure is a contingent backstop involving certain lease, power, and residual-value obligations rather than an immediate $105 billion cash expenditure.
Nvidia has also teamed with major Wall Street firms on a framework intended to mobilize more than $500 billion of third-party capital for AI infrastructure, which could shift more of the financing burden away from Nvidia itself.
Still, investors have reason to monitor the exposure, even with Nvidia ending Q1 with nearly $80.6 billion in cash and equivalents, while generating an exceptional $50.3 billion of operating cash flow during the quarter.
The balance sheet remains extremely strong, but Wall Street will want greater clarity on how much capital Nvidia ultimately intends to put behind customers and AI infrastructure projects, especially if these commitments keep expanding.
Image Source: Zacks Investment Research
Nvidia's Valuation May Be More Attractive Than It LooksDespite Nvidia's massive market capitalization, its valuation no longer looks particularly excessive relative to its growth rate.
NVDA is trading at 24X forward earnings, near the low end of its five-year P/E valuation range. Furthermore, Nvidia’s PEG ratio is around 0.34 with the optimum level being less than 1.0, meaning investors are paying less than one unit of P/E multiple for each unit of expected earnings growth—a metric that can make Nvidia look surprisingly inexpensive on a growth-adjusted basis.
This valuation disconnect has caught Wall Street's attention. Bank of America (BAC - Free Report) ) has argued that Nvidia is significantly undervalued compared with other AI-compute names, while Cantor Fitzgerald has similarly suggested the market is failing to fully price in Nvidia's longer-term earnings power.
Of course, PEG ratios become less useful when growth rates are exceptionally high, but Nvidia's combination of nearly triple-digit Q2 earnings growth and a mid-20s forward P/E certainly makes its valuation harder to characterize as expensive.
Image Source: Zacks Investment Research
Bottom Line: Is NVDA Stock a Buy Before Earnings?Nvidia still has plenty to prove when it reports Wednesday. Investors will want another strong quarter, an encouraging Vera Rubin ramp, resilient gross margins, and reassurance that the company's expanding AI-financing ambitions won't create unnecessary balance-sheet risk.
That said, a 24X forward P/E looks increasingly compelling if Nvidia can sustain even a fraction of its current earnings growth rate. The long-term AI investment thesis remains strong, although elevated expectations could produce significant post-earnings volatility even if results exceed consensus estimates.
For now, NVDA lands a Zacks Rank #3 (Hold), suggesting investors may want to maintain existing positions while looking for Wednesday's report to provide the next catalyst for a more bullish stance.
Nvidia zveřejní výsledky hospodaření za 2. čtvrtletí 26. srpna a trh bude sledovat hlavně koncentraci tržeb u několika velkých zákazníků. Minule tři zákazníci tvořili 21 %, 17 % a 16 % tržeb.
Nvidia (NVDA -2.91%) is scheduled to report second-quarter earnings after market close on Aug. 26. As the biggest AI stock in the world, Nvidia's results will affect not only the company's share price but also valuations across the AI industry.
A new wrinkle will be revealed in Nvidia's upcoming earnings report. This revelation could have a sizable effect on Nvidia's stock price.
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This new detail could influence Nvidia's stock priceNvidia has become the largest AI company on the planet not by inventing AI technologies itself, but by selling its hardware to other AI businesses. The company's GPUs -- critical components that allow AI companies to train and execute their AI models -- are widely believed the be the best in the industry, with market share estimates typically at 85% or above.
Nvidia's future, therefore, relies on spending by the rest of the AI industry. But how much of this sales base consists of just a handful of hyperscalers?
Nvidia is already required to report material customers that account for more than 10% of total sales. But it isn't required to disclose the exact names of these customers. All we know is that last quarter, three customers accounted for 21%, 17%, and 16% of total revenue, respectively. It's not known, however, whether these customers are large AI companies or simply distribution intermediaries that, in turn, sell to a variety of AI customers.
Image source: Nvidia
Nvidia has warned investors of customer concentration in the past. "We have experienced periods where we receive a significant amount of our revenue from a limited number of customers, and this trend may continue," the company explained in the second quarter of last year, adding that "large cloud service providers" comprised around half of the company's data center revenue. Data center sales, meanwhile, accounted for 88% of Nvidia's overall revenue that quarter.
Analysts have long wanted more clarity into these numbers. Last quarter, Nvidia began breaking out "Hyperscaler" revenues versus "AI Clouds, Industrial & Enterprise" sales. This breakout essentially helps investors understand how much of Nvidia's sales are being driven by the AI market in general versus a handful of powerful customers, many of which are pursuing the development of their own GPUs.
Last quarter, data center revenue was remarkably balanced. Hyperscalers accounted for $37.9 billion in sales versus $37.4 billion in sales for other customers. That's pretty close to the breakdown the company alluded to this time last year.
Notably, however, hyperscaler revenues grew by just 12% versus 31% sequential growth for the rest of its customer base.
Investors should pay close attention to where these numbers head this quarter. If hyperscaler revenues spike, it could be a sign that Nvidia's chips remain in high demand among industry leaders. But it also increases Nvidia's reliance on a few customers. Last quarter, just three customers accounted for more than 50% of sales. But as mentioned, we cannot be sure if these customers are single entities or businesses that then sell to customers of their own.
Rising sales growth outside of the hyperscalers segment could also spell good or bad news. On one hand, it would lessen Nvidia's customer concentration. On the other hand, it could signal weakening demand among hyperscalers, which are desperate to reduce their own reliance on Nvidia.
What these numbers reveal, and how the market decides to interpret the data, should have an impact on Nvidia's share price after earnings are announced.
Analytik Cantor Fitzgerald tvrdí, že Nvidia může těžit z financování AI infrastruktury a partnerských vazeb, které posilují její pozici v ekosystému. Cenový cíl má na 350 USD, asi 67 % nad současnou úrovní.
Nvidia shares are under pressure ahead of the company's fiscal second-quarter 2027 results on Wednesday, but one analyst argues investors may be viewing the artificial intelligence leader through the wrong lens.
The stock fell about 2.5% Monday and was on track for its seventh consecutive losing session, potentially its longest losing streak since September 2022, according to Dow Jones Market Data.
Despite the recent weakness, Nvidia has gained about 12% this year.
That performance looks modest compared with the 59% advance in the PHLX Semiconductor Index over the same period.
Cantor Fitzgerald analyst CJ Muse believes the disconnect creates an opportunity.
"It is time to close your eyes" and bet big on Nvidia's stock, Muse wrote in a Monday note to clients.
He said once momentum returns, the stock is expected to move rapidly.
"When this stock starts moving, we think it is going to move very, very fast," he said.
Muse's bullish case rests partly on Nvidia's potential earnings growth.
He pointed to estimates of $17 in earnings per share for calendar 2027 and $25 for calendar 2028.
Based on those projections, Nvidia is trading at roughly 14 times the 2027 estimate and 10 times the 2028 figure.
Muse has a $350 price target on Nvidia, about 67% above current levels.
The analyst believes investors are currently "underweight" Nvidia, suggesting the stock is less represented in portfolios than its broader market position might warrant.
The argument is not simply that Nvidia will continue selling more GPUs.
Instead, Muse believes the company is becoming increasingly embedded in the financing and infrastructure that supports the AI ecosystem.
Nvidia's growing use of what Muse describes as "financial engineering" has attracted criticism, particularly because the company has taken equity stakes in AI companies including OpenAI and Anthropic and entered revenue-sharing arrangements with neocloud providers such as CoreWeave and Nebius.
Muse, however, sees those arrangements as increasingly important to Nvidia's competitive position.
"This strategy is becoming increasingly critical and one that we believe will shine as we move further through today's robust AI infrastructure buildout," he said.
The logic is that Nvidia is not simply supplying chips to customers.
By helping finance AI infrastructure, providing computing capacity and participating financially in the companies building that infrastructure, it can create deeper relationships that are harder for competitors to disrupt.
Muse argues that Nvidia's equity investments, revenue-sharing agreements and plans to help raise as much as $500 billion for AI infrastructure are effectively turning its GPUs "into a financeable, increasingly fungible asset class."
That could make it harder for customers to replace Nvidia hardware with competing chips.
Cantor Fitzgerald identified five potential catalysts that could change the market's perception of Nvidia.
One is greater clarity around data-center revenue in 2027.
Other companies have begun providing specific targets for their future infrastructure spending, while Nvidia has yet to offer comparable visibility.
Another potential catalyst is additional information from Anthropic ahead of its expected fourth-quarter 2026 IPO.
Investors have recently focused on concerns surrounding the AI company's July annual recurring revenue.
The firm also sees greater visibility into hyperscaler capital expenditure plans for 2027 and 2028 as potentially supportive for Nvidia.
Sustained growth among neocloud providers is another factor, particularly if Nvidia continues using financing and revenue-sharing arrangements to support data-center expansion.
Finally, Muse believes GPUs could increasingly become standardized as a new asset class through financing agreements, potentially broadening Nvidia's role beyond traditional semiconductor sales.
Custom chips remain a risk, but Nvidia is broadening its moatThe biggest challenge to Nvidia's dominance is increasingly coming from the company's largest customers.
Major cloud companies are developing custom AI accelerators to reduce their dependence on Nvidia, raising concerns that the chipmaker's market share could eventually decline.
Muse believes its neocloud strategy offers some protection against that risk.
Revenue-sharing agreements with neocloud companies could prove "much more resilient" because Nvidia is helping enable data-center deployments beyond the largest hyperscalers.
The company is also expanding its customer base among enterprises and sovereign AI programs while moving toward selling complete AI systems that include racks, networking and other components.
That broader strategy could make Nvidia less vulnerable to losing a particular chip program to a competitor.
Wall Street remains bullish ahead of resultsOther analysts are also maintaining positive views ahead of Nvidia's earnings.
Rosenblatt Securities has retained a Buy rating and expects Nvidia's revenue and earnings to exceed consensus estimates.
Benchmark has likewise reiterated its Buy rating and set a $335 price target.
The firm expects Nvidia to report revenue of about $92 billion and earnings per share of $2.10.
The earnings report will therefore provide an important test of whether Nvidia's fundamental growth can overcome concerns about valuation, custom-chip competition and the sustainability of AI infrastructure spending.
For Muse, however, the bigger opportunity lies in recognizing that Nvidia's competitive advantage may no longer be limited to its semiconductor technology.
Its financing relationships, software ecosystem, infrastructure partnerships and stakes in AI companies could create a network around Nvidia that is increasingly difficult to displace.
That strategy remains controversial. But if AI infrastructure spending continues accelerating, the same financial moves that investors have questioned could ultimately help Nvidia retain its position at the center of the AI boom.
Nvidia má ve středu znovu překonat vlastní prognózu, ale klíčovým tématem je podle analytiků omezená nabídka, ne poptávka. Wedbush uvádí, že firma skončila se závazky z dodávek ve výši 95,2 miliardy USD a celkovou nabídkou 145 miliard USD.
Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) is expected to top its own guidance again on Wednesday even as supply constraints, not demand, increasingly define the story.
The first order of business is the number itself, and most signs point to another beat. Nvidia guided for second-quarter revenue of $91 billion, plus or minus 2%, with gross margins of about 75%, implying earnings per share of roughly $2.03. Consensus sits at $92 billion and $2.09.
Over the last three quarters, Nvidia has handily exceeded its own guidance. Most analysts expect a similar beat this time, with management likely to meet or top the consensus October guide of $103.9 billion.
Wedbush, which reiterated an Outperform rating and $330 price target, argues component and material access, not end demand, now limits shipments. The firm called Nvidia's supply position the best in the industry: the company exited its first fiscal quarter with supply chain commitments of $119 billion, up from $95.2 billion, and total supply of $145 billion.
Vera Rubin entered full production following GTC Taipei, with the revenue ramp starting in the third fiscal quarter, and management has signaled the platform will likely stay supply constrained for its entire life. Memory pricing, a risk flagged into the last print, looks less worrying now too.
Wedbush cited feedback that Nvidia negotiated favorable HBM pricing for 2027, and that the 17% price increases reported for 2027 deliveries should let the company hold absolute, if not percentage, margins.
UBS backs the supply story with its own numbers, pointing to rising TSMC and industry-wide CoWoS packaging capacity and ample HBM supply. The firm raised its GPU unit estimates to about 8.8 million chips in calendar 2026 and 10.8 million in calendar 2027, lifting revenue estimates to roughly $418 billion and $681 billion for those years.
The group models gross margin in the mid-70% range through 2027, free cash flow of $211 billion and $360 billion over the period, and reiterated a Buy rating with a $280 price target based on 14 times its 2028 EPS estimate of about $20.
Demand isn't the worry either. All four of the largest US hyperscalers raised their 2026 capital spending plans again on their June-quarter calls, putting the group's combined spending at roughly $725 billion for the year, up from about $410 billion in 2025, per Wedbush. Neocloud, model builder and sovereign programs are growing even faster than hyperscale spending, and smaller neoclouds are reporting payback periods of just two to three years on AI hardware builds.
Nvidia's push to secure every input, chip supply, land, power, for customers like frontier labs and neoclouds is reshaping how analysts think about the company. Bank of America pointed to Nvidia's recently announced $105 billion in OpenAI-related commitments and said it expects more disclosure around off-balance-sheet commitments on the earnings call. The firm sees the strategy as securing demand durability but warns it also raises risk: a slowdown in AI demand could pressure both growth and the balance sheet.
XTB research director Kathleen Brooks went further, describing Nvidia as functioning almost like "a central bank to the tech industry," a reference to its role organizing a $500 billion third-party compute financing platform with KKR, BlackRock and other institutions.
The valuation gap
Bank of America argues the market is underpricing Nvidia for the risk it's actually taking. Using a sum-of-parts approach that applies peer multiples to the roughly 50% of free cash flow returned to shareholders and a discount to the remainder, the firm estimates Nvidia should trade at a blended 36 times and 22.5 times calendar 2027 and 2028 EV/FCF compared to 18 times and 15 times, a 50% and 34% discount.
Bank of America suggests boosting the share of free cash flow devoted to buybacks, currently below peers like AMD and Marvell at 75-100%, could help close that gap.
Shares of Nvidia are down 2.5% on Monday but have gained over 12% year to date.
Nvidia zveřejní výsledky ve středu po uzavření trhu, ale trh čeká víc než jen překonání odhadů. Investoři sledují hlavně potvrzení, že masivní výdaje na AI infrastrukturu pokračují.
Quarterly financial results from Nvidia Corporation (NASDAQ:NVDA) on Wednesday after market close are among the most anticipated events of the week. Analysts and investors are expecting the company to once again report strong results that beat estimates and to provide guidance ahead of estimates. Here’s why that might not be enough to move the stock back to all-time highs.
Nvidia Earnings StrengthFreedom Capital Markets Chief Market Strategist Jay Woods calls Nvidia the "poster child for all that is AI" and previews the earnings ahead of Wednesday’s key event.
"They have beaten EPS 18 of their last 20 reports and revenues have exceeded expectations 19 of the last 20, so the bar is high," Woods said in a weekly newsletter. "A simple beat may not be enough."
Woods said investors are hoping for another beat-and-raise quarter, but that might not be the most important metric to move the stock. The market expert says investors will be looking for "confirmation that the massive AI infrastructure spending cycle remains alive and well."
The focus on AI infrastructure spending is reflected in Nvidia’s data center revenue, up 92% year-over-year in the first quarter, to $75.2 billion.
With heavy spending on AI infrastructure by the likes of Microsoft, Amazon, Alphabet, and Meta, Woods said investors should pay attention to Nvidia’s data center segment, as it is the "ultimate report card" for AI infrastructure spending. Likewise, if the segment disappoints, it could paint weakness for the entire AI infrastructure segment.
"Any sign that hyperscalers are tapping the brakes could quickly become the biggest story of the quarter."
After focusing on Blackwell demand in recent quarters, Woods says investors and analysts will be looking ahead to the Vera Rubin platform to make sure this next chip is on schedule and that demand remains high.
Woods calls China the "major wildcard" for the company with current guidance not pricing in any data center compute revenue from the region. This comes as China/Hong Kong once made up around 19% of Nvidia’s annual revenue.
With a potential reopening of the region and easing of restrictions, Nvidia could see billions in revenue restored that aren’t part of current guidance.
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Nvidia Stock TechnicalsNvidia stock has fallen after five of its last six earnings reports, according to Woods, with the last +/- 10% earnings move coming in February 2024.
"Earnings haven’t been a strong catalyst over the last several quarters," Woods said.
Woods said Nvidia stock trades near the mid-point of its recent range ($195 to $230) and above its 50-week moving average, leaving a limited edge for traders.
"Expect the stock to challenge its old highs between $230/$235 on any positive reaction."
Woods said it depends on whether there is enough momentum in the earnings report and guidance to send shares higher.
On the flip side, negative sentiment could see the $195 support level in play.
"As we head into the results, we are at a crossroads, and that’s what makes this quarter so important."
Nvidia Stock Price ActionNvidia stock is down 2.6% to $209.17 on Monday versus a 52-week trading range of $164.07 to $236.54. Nvidia stock is up 10.8% year-to-date in 2026.
NVIDIA v pondělí oslabila o 2,14 % kvůli slabosti technologických titulů před výsledky, které zveřejní 26. srpna. Wall Street čeká EPS 2,07 USD a tržby 92,03 miliardy USD.
NVIDIA Corp. (NASDAQ:NVDA) shares fell more than 2% Monday as weakness in technology stocks weighed on the chipmaker ahead of its Aug. 26 earnings report.
The Nasdaq fell 0.78%, the S&P 500 slipped 0.19% and the Technology sector dropped 1.5%.
• NVIDIA shares are experiencing downward pressure. Why are NVDA shares declining?
Nvidia is entering its next phase of AI growth as Blackwell Ultra shipments rise, Vera Rubin begins its initial ramp and the company expands across compute, networking, software, infrastructure and financing.
Cantor Sees Nvidia Expanding Beyond GPUsCantor Fitzgerald analyst C.J. Muse reiterated an Overweight rating and $350 price forecast on Nvidia.
Muse believes investors underestimate Nvidia’s ability to sustain growth as it expands beyond GPUs into networking, rack-scale systems, software, infrastructure and financing. While custom silicon could pressure Nvidia’s unit share at hyperscalers, he expects the company’s broader system strategy to support more resilient revenue share.
Muse outlined stretch-case EPS of $16 to $17 in calendar 2027 and $23 to $25 in 2028. Cantor expects hyperscaler capital spending to approach $1 trillion in 2026 and potentially reach $1.5 trillion in 2027.
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He estimates Nvidia could generate about $400 billion in calendar 2026 data center revenue with roughly 80% of a $500 billion AI accelerator and networking market.
By 2030, Cantor’s scenarios imply data center revenue of about $1.05 trillion at 60% market share, $1.23 trillion at 70% and $1.4 trillion at 80%. Muse considers 60% share a bear case and estimates Nvidia could still produce $25-$30 in EPS by 2030.
JPMorgan Expects Another Beat and RaiseJPMorgan analyst Harlan Sur reiterated an Overweight rating and $280 price forecast.
Sur expects fiscal second-quarter revenue of $94 billion-$95 billion, up about 15% sequentially and ahead of the $92.1 billion Street consensus. He projects GB300 and remaining GB200 rack shipments will rise about 15% quarter over quarter to 17,000-18,000 units.
For the October quarter, Sur expects Nvidia to guide revenue to $107 billion-$108 billion, compared with the $104.5 billion consensus.
He projects rack shipments will increase another 13% to 14% to 19,000-20,000 units, including the first 1,000-2,000 Vera Rubin racks. Sur estimates Vera Rubin could lift blended average selling prices by 5% to 10% and reduce per-token platform costs by about 90% versus Blackwell Ultra.
Sur also estimates every 100,000 H200 GPUs shipped to China could add roughly $3 billion in revenue.
Competition, Margins Remain in FocusSur expects GPUs and ASIC/XPU platforms to move toward roughly equal shares of the AI compute market over the next several years, while Nvidia retains overall leadership.
He expects near-term gross margins in the mid-70% range but sees rising memory costs as a longer-term risk. Nvidia trades at roughly 17 times Street calendar 2027 EPS and 13 times 2028 EPS, according to Sur.
Earnings and Price ActionNvidia will report earnings on Aug. 26.
Wall Street expects EPS of $2.07, up from $1.04 a year earlier, on revenue of $92.03 billion versus $46.74 billion.
NVDA Price ActionNvidia shares were down 2.14% at $210.13 at the time of publication on Monday, according to Benzinga Pro data.
Photo via Shutterstock
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Nvidia v pondělí klesla asi o 2,6 % před středečními výsledky, které mají prověřit udržitelnost investic do AI infrastruktury. Trh čeká zisk na akcii 2,09 USD a tržby 91,96 miliardy USD.
Buy Nvidia (NVDA). The stock is down with the whole semis complex, but the setup is an earnings catalyst: consensus expects $2.09 EPS and $91.96B revenue, and two major analysts reiterated Buy/Overweight with higher targets ($325/$350). If NVDA confirms 2027 data-center revenue momentum (or even just gives clearer outlook), the market’s “AI spending sustainability” fear should fade fast.
Key Risk: NVDA guides to slower 2027/next-quarter data-center growth or signals AI infrastructure financing is tightening, proving the spending cycle is peaking.
SOXX buy
Buy iShares Semiconductor ETF (SOXX). The article shows broad weakness (MU, AMD, AVGO, INTC, STX all down), which creates a better risk/reward entry than picking only one name. If NVDA’s earnings act as a green light for the AI capex cycle, semis typically re-rate together and SOXX captures the rebound without relying on one company’s execution.
Key Risk: Earnings across the group (or guidance from peers) confirms AI capex is slowing materially, keeping the whole sector de-risked.
Nvidia NVDA shares fell around 2.6% to around $209 in early Monday trading as the chipmaker began its earnings week under pressure from a broader decline in technology and semiconductor stocks.
The S&P 500 fell 0.2%, while the Nasdaq Composite lost 0.5%. The Dow Jones Industrial Average was up 32 points, or 0.1%.
Chip stocks were among the biggest decliners. The iShares Semiconductor ETF dropped almost 3%.
Micron Technology fell more than 6%, while Advanced Micro Devices and Broadcom declined 3% and about 2%, respectively.
Other technology stocks also came under pressure. Sandisk dropped 9%, Intel declined 4%, and Seagate Technology fell 6%.
Nvidia will report its fiscal 2027 second-quarter results on Wednesday in what has become a key test for the broader artificial intelligence investment cycle.
The chipmaker is expected to beat consensus estimates of $2.09 in adjusted earnings per share and $91.96 billion in revenue.
Rosenblatt Securities reiterated a Buy rating and $325 price target on Nvidia ahead of the earnings report.
The firm expects the second-quarter results to act as a positive catalyst for the stock, with revenue and earnings expected to exceed consensus estimates.
Rosenblatt also expects Nvidia's third-quarter revenue and earnings guidance to come in above consensus expectations.
The firm pointed to the company's continued momentum and leadership in artificial intelligence, while maintaining its view that Nvidia will continue to deliver strong performance.
Cantor Fitzgerald also reiterated an Overweight rating on Nvidia on Monday and maintained a $350 price target.
The firm said investors remain underweight the stock and expects Nvidia shares to move rapidly once the stock begins to rise. Nvidia remains one of Cantor Fitzgerald's top picks.
The firm identified several potential catalysts that could support the shares.
One is a formal update on Nvidia's data center revenue outlook for 2027.
Cantor noted that other companies have already provided specific targets for that period, while Nvidia has not.
The firm also pointed to potential developments involving Anthropic ahead of its expected fourth-quarter 2026 initial public offering.
Greater visibility into hyperscale and other capital expenditure plans for 2027 and 2028 could also provide support for Nvidia, according to the firm.
Cantor additionally cited continued strong growth among neocloud companies and increasing confidence in graphics processing units becoming a standardized asset class through new financing agreements.
Nvidia's results will arrive after a period of increased scrutiny around the sustainability of AI infrastructure spending, competition and financing arrangements across the industry.
The company remains central to the AI infrastructure trade, making its quarterly results an important indicator for investors assessing whether current levels of spending can continue.
The earnings report will provide a key test of Nvidia's ability to convert continued AI infrastructure investment into revenue growth while addressing investor concerns around financing, competition and the sustainability of spending across the sector.
NVIDIA vykázala v 1. čtvrtletí fiskálního roku 2027 tržby ve výši 82 miliard USD, meziročně o 85 % více, a oznámila výhled na 91 miliard USD plus minus 2 % pro 2. čtvrtletí.
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The AI trade in August 2026 has cooled meaningfully from a year ago. Insider filings, options flow, and analyst targets point in different directions across the biggest names in the theme. Nowhere is that more visible than in NVIDIA (NASDAQ:NVDA | NVDA Price Prediction), the poster child for the buildout. Our proprietary model reads through that noise and lands on a constructive stance.
Our 24/7 Wall St. price target for NVIDIA is $268.36, implying roughly 25% upside from a current price of $214.72. The recommendation is buy at high confidence.
24/7 Wall St. Price Target Summary Metric Value Current Price $214.72 24/7 Wall St. Price Target $268.36 Upside +24.98% Recommendation BUY Confidence Level 90% NVIDIA remains the cleanest way to own the AI infrastructure buildout, but momentum has cooled. Shares are down 4.64% over the past week, up 15.27% year to date, and up 935% over five years. That deceleration creates the setup where smart-money signals get murky, yet our model sees more upside than downside.
Mixed Signals Under the Hood NVIDIA delivered $82 billion in Q1 FY27 revenue, up 85% year over year, with data center revenue of $75 billion and $49 billion in free cash flow. Q2 guidance sits at $91 billion plus or minus 2%. CEO Jensen Huang said “demand has gone parabolic” and that AI infrastructure spending is on track to reach $3 to $4 trillion annually by the end of this decade.
The mixed signal comes from positioning. NVDA’s put/call ratio sits at 0.60 across the full chain, with December 2026 pushing to 1.29. Retail sentiment on Reddit is neutral at 51, and Director Tench Coxe filed a disposal of 500,000 shares on August 5.
Bull Case: $310 and Higher Our bull case takes NVIDIA to $310.25, or roughly 44.5% upside. Vera Rubin production begins in Q3 with claimed 35x higher inference throughput versus Blackwell.
NVIDIA claims $1 trillion in Blackwell and Rubin revenue from 2025 through calendar 2027, and the Vera CPU opens a $200 billion TAM. China H20 shipments would sit above current outlook.
What Could Go Wrong The bear case pins NVIDIA at $232.09, or about 8% upside, reflecting hyperscale capex normalization and gross margin compression from the current 75% level.
Bulls counter that $145 billion in supply commitments plus $20 billion returned to shareholders last quarter argue against demand collapse. Regulatory risk on China compute remains the wildcard.
How NVIDIA Compares to Alphabet, Tesla, and Cognex Alphabet (NASDAQ:GOOGL) is a major buyer of NVIDIA silicon. Google Cloud grew 82% in Q2 FY26, and our 24/7 Wall St. price target for GOOGL is $439.86, or 27.6% upside. GOOGL trades at an implied forward P/E of 17 versus NVDA’s 37, making NVDA expensive but justified given 2x the growth.
Tesla (NASDAQ:TSLA) shows mixed signals. Our model shifted to hold with a target of $377.78, only 4.1% upside. Tesla’s Q2 non-GAAP EPS missed by 38.5%, and analyst sentiment is only 49% bullish. If your AI thesis needs FSD monetization, smart money is skeptical.
Cognex (NASDAQ:CGNX) is a picks-and-shovels play: machine-vision inspection for data-center racks. Data-center revenue is growing about 30%, and our target of $74.90 implies 23.7% upside. That is tighter upside than NVDA at higher execution risk, making our NVDA target reasonable (we profiled seven more of these non-chip AI infrastructure suppliers, from power to cooling to networking, in a free report you can grab here).
Intuitive Surgical (NASDAQ:ISRG) is down 33.1% year to date despite 16% Q2 procedure growth. That signals that even “AI-adjacent” stories bleed hard when confidence wobbles.
NVIDIA Price Prediction 2026-2030 Our 24/7 Wall St. price target of $268.36 reflects a buy at 90% confidence. The tipping factor is unit economics: 2.7x throughput and 60% lower cost per token on GB300 versus six months earlier.
The setup strengthens if Vera Rubin ramps on schedule in Q3. The thesis weakens if hyperscale capex growth decelerates below 30% for two consecutive quarters. The mixed signals are real, and NVIDIA is still the highest quality expression of the AI theme.
Year 24/7 Wall St. Price Target 2026 $229.93 2027 $256.80 2028 $317.58 2029 $346.95 2030 $399.20 These projections assume NVIDIA continues executing on Blackwell, Rubin, and Vera. Meaningful upside or downside could result from China compute policy changes, custom-silicon share losses at hyperscalers, or a step-change in agentic AI adoption.
Contact [email protected] for any questions or corrections.
SpaceXAI nasadí NVIDIA Vera CPUs pro své aplikace agentní umělé inteligence a rozšíří infrastrukturu pro Grok na platformě Vera Rubin. První satelit Starmind má využít optimalizovaný systém Vera Rubin NVL72.
SpaceXAI will deploy NVIDIA Vera CPUs to accelerate the work behind its next generation of agentic AI workloads.SpaceXAI is expanding its AI infrastructure for Grok with the NVIDIA Vera Rubin platform as it scales toward gigawatts of computing capacity.SpaceXAI plans to extend its use of NVIDIA accelerated computing into space, with the first-generation Starmind AI satellite based on an optimized NVIDIA Vera Rubin NVL72 system.
SANTA CLARA, Calif., Aug. 24, 2026 (GLOBE NEWSWIRE) -- NVIDIA today announced that SpaceXAI will deploy NVIDIA Vera CPUs to accelerate its next generation of agentic AI applications, bringing the first CPU built for AI agents to one of the world’s most ambitious AI deployments.
Agentic AI applications increasingly rely on CPUs to orchestrate tools, execute code, process data and run simulations between model calls. SpaceXAI will use Vera to accelerate these application workloads, helping AI agents act faster while keeping GPUs fed and fully utilized.
SpaceXAI plans to expand its AI infrastructure behind Grok on NVIDIA Vera Rubin, while extending an optimized Vera Rubin NVL72 into space with its first-generation Starmind satellite.
“Agentic AI requires a new kind of computing system — one built not only to generate answers, but to take action,” said Ian Buck, vice president of hyperscale and high-performance computing at NVIDIA. “Vera gives AI agents the CPU performance to act in real time — executing code, processing data and coordinating complex tasks. SpaceXAI is taking this architecture from massive AI factories to the next frontier of computing in orbit.”
“Vera gives us the CPU performance and memory bandwidth to run enormous amounts of orchestration, code and data processing while keeping GPUs doing what they do best,” said Mike Nicolls, president of SpaceXAI. “That means higher-performance AI agents and more useful work from every watt of compute.”
NVIDIA Vera — The CPU for Agents
NVIDIA Vera is the first CPU built for AI agents, designed to accelerate the CPU-intensive work that surrounds model inference — from tool use and code execution to data processing, orchestration and simulation.
Vera features 88 NVIDIA-designed Olympus cores, NVIDIA Spatial Multithreading technology and high-bandwidth LPDDR5X memory, delivering up to 1.2TB/s of bandwidth. Vera enables up to 1.8x faster task completion compared with x86 CPUs across workloads including agentic AI, reinforcement learning and data processing.
SpaceXAI Scales AI Infrastructure With NVIDIA Vera Rubin
At massive scale, AI infrastructure must support demanding training, reasoning and inference workloads while maximizing performance, power efficiency and utilization. NVIDIA Vera Rubin is codesigned across compute, networking and software to optimize the AI factory as a whole.
The platform brings together NVIDIA accelerated computing, NVIDIA NVLink™ interconnect technology, NVIDIA Spectrum-X™ Ethernet networking, NVIDIA BlueField® data processing and NVIDIA software in an integrated architecture designed to deliver high performance and energy efficiency at scale while driving down cost per token.
As SpaceXAI expands toward gigawatts of computing capacity, Vera Rubin provides a common architecture to efficiently scale its next generation of AI factories — a foundation SpaceXAI plans to take beyond terrestrial data centers and into orbital computing.
NVIDIA Accelerated Computing, From Earth to Orbit
SpaceXAI’s work with NVIDIA is moving beyond AI factories on Earth.
SpaceXAI is developing AI computing infrastructure for orbit, where power, thermal management, bandwidth, reliability and physical integration impose dramatically different constraints from conventional data centers.
SpaceXAI’s planned first-generation Starmind AI satellite will be based on the optimized NVIDIA Vera Rubin NVL72 rack-scale system, extending the same accelerated computing architecture powering next-generation AI factories on Earth into space.
NVIDIA and SpaceXAI are working to adapt that foundation to the requirements of orbital computing while preserving a common NVIDIA architecture and software ecosystem.
This delivers one computing foundation across a wide range of environments: Vera CPUs accelerating increasingly sophisticated AI agents, Vera Rubin powering the AI infrastructure behind Grok and gigawatt-scale AI factories on Earth, and NVIDIA accelerated computing extending into orbital AI infrastructure.
Learn more about the NVIDIA Vera Rubin platform and NVIDIA Vera CPU.
About NVIDIA
NVIDIA (NASDAQ: NVDA) is the world leader in AI and accelerated computing.
For further information, contact:
Kacie Thomas
Corporate Communications
NVIDIA Corporation [email protected]
Certain statements in this press release including, but not limited to, statements as to: SpaceXAI deploying Vera for these new application workloads while building its AI infrastructure on Vera Rubin — from AI factories on Earth to computing in orbit; expectations with respect to growth, performance, availability, and benefits of NVIDIA’s products, services and technologies, and related trends and drivers; expectations with respect to NVIDIA’s third party arrangements, including with its collaborators and partners; expectations with respect to third parties’ business plans and third parties’ adoption of NVIDIA technology; expectations with respect to technology developments, and related trends and drivers; projected market growth and trends; expectations with respect to AI and related industries; and other statements that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections based on management’s beliefs and assumptions and on information currently available to management and are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: global economic and political conditions; NVIDIA’s reliance on third parties to manufacture, assemble, package and test NVIDIA’s products; the impact of technological development and competition; development of new products and technologies or enhancements to NVIDIA’s existing products and technologies; market acceptance of NVIDIA’s products or NVIDIA’s partners’ products; design, manufacturing or software defects; changes in consumer preferences or demands; changes in industry standards and interfaces; unexpected loss of performance of NVIDIA’s products or technologies when integrated into systems; NVIDIA’s ability to realize the potential benefits of business investments or acquisitions; and changes in applicable laws and regulations, as well as other factors detailed from time to time in the most recent reports NVIDIA files with the Securities and Exchange Commission, or SEC, including, but not limited to, its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Copies of reports filed with the SEC are posted on NVIDIA’s website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.
Many of the products and features described herein remain in various stages and will be offered on a when-and-if-available basis. The statements above are not intended to be, and should not be interpreted as a commitment, promise, or legal obligation, and the development, release, and timing of any features or functionalities described for our products is subject to change and remains at the sole discretion of NVIDIA. NVIDIA will have no liability for failure to deliver or delay in the delivery of any of the products, features or functions set forth herein.
Nvidia ve středu po uzavření trhu zveřejní výsledky za fiskální 2. čtvrtletí. Analytici čekají výnosy +97 % na 92,1 miliardy USD, ale růst má pak zpomalit.
If you think Nvidia (NVDA -0.98%) has been a volatile stock in recent weeks, you might want to buckle your seat belts. The artificial intelligence (AI) bellwether will report its fiscal second-quarter results after the market close on Wednesday afternoon.
Nvidia shares will be on the move. It's not as simple as the shares moving higher if it's a good report or lower if it's not. Like many market relationships with battleground stocks, it's complicated. Let's go over the three things that Nvidia needs to get right this week.
Image source: Getty Images.
1. Accelerating revenue growth is just the first step Expectations are high for Nvidia stock heading into this week's big financial reveal. Analysts see revenue soaring 97% to $92.1 billion for its second quarter of what is now fiscal 2027, its biggest jump in two years. Momentum has been kind on the top line. This would be Nvidia's fourth consecutive quarter of accelerating year-over-year revenue growth.
Q2 FY 2026: 56% Q3 FY 2026: 63% Q4 FY 2026: 73% Q1 FY 2027: 85% Q2 FY 2027: 97% (est.) You would think that Wall Street pros are targeting triple-digit revenue gains for the current quarter, but that's not the case. Analysts see top-line growth decelerating to 82% for the current quarter (and 44% for all of fiscal 2028). Most companies would love to be growing at that clip, but after a year of stepping on the gas, the market's bracing for a slowdown. This is the first opportunity for Nvidia to deliver a positive surprise, coming through with a rosier outlook for its near-term performance.
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2. Snapping the earnings season curse Let's turn to the bottom line. Nvidia has been good at managing the market's earnings expectations. It's four for four in beating Wall Street's profit targets over the past year. The beats haven't been much, clocking in between 3% and 6% in the last four quarters. The victories may be small, but keep in mind that analysts have perpetually raised their income projections for Nvidia. In just the past month, five of them have raised their expectations for the quarter that will be announced this week.
I guess you're ready for the head-scratching chart I was waiting to spring on you. Here is Nvidia's stock performance over the past year. I've also added the dates when each of the four previous earnings reports came out. There are two unusual things I want to highlight for you.
The most jarring revelation is that the Nvidia shares have fallen in the days following each of its last four earnings reports. The downticks have continued for about a week or longer. The market has reacted this way despite the bottom-line beats, accelerating top-line growth, and increased guidance. This should give my fellow Nvidia investors pause heading into Wednesday afternoon's report, but I'm not worried.
The second revelation is that the stock has clawed its way back every time, trading higher by its next quarterly update. Unfortunately, that won't be the case this time around. Barring a rally through the first three trading days of this week, Nvidia will be lower this time than it was for its previous financial update. This might not be a bad thing. It could be the tempering of expectations that finally leads Nvidia to move initially higher on earnings news for the first time in more than a year.
3. Looking beyond financial results Nvidia investors have been treated to a 23% gain over the past year, barely ahead of the market. Smaller Nvidia competitors, memory plays, and other AI-related businesses have largely fared better. There is no denying that demand is booming, and that Nvidia is the leader. There are just supply chain constraints and other risks to the business that are outside of Nvidia's control.
Will the shortage of storage manufacturing or the growing resentment of data center build-outs slow Nvidia's ability to meet the spike in demand? Will investors turn on the surging capital expenditures that companies are budgeting for AI? Are circular financing deals to bankroll the growth a house of cards? The headwinds are there for the bearish picking, and every word that Nvidia CEO Jensen Huang doles out on Wednesday will be weighed.
I take comfort in knowing that Nvidia enters this week trading at a reasonable 24 times this fiscal year's earnings and 16 times next year's target. It's a good price for a great company that is growing substantially faster. The risks of the business slowing and margins contracting are real, but so is a future where Nvidia continues to climb the wall of worry to deliver a well-received financial performance for a change.
NVIDIA uvedla, že tržby datových center v 1. čtvrtletí fiskálního roku 2027 vzrostly meziročně o 92 % na 75,246 miliardy USD a celkové tržby o 85,23 % na 81,61 miliardy USD. Vedení navíc očekává ve 2. čtvrtletí tržby 91,0 miliardy USD.
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I keep hitting the buy button on NVIDIA (NASDAQ:NVDA | NVDA Price Prediction), and the loudest bear argument I hear against it is exactly what pulled me back in this month. The claim goes like this: cheaper models and smarter agents will shrink the compute bill. My read of the data lands somewhere else entirely. Agents multiply compute demand across every workload they touch.
A one-shot chatbot answer burns tokens once. An agent that plans, calls APIs, verifies code, and runs self-correction loops burns 10x to 100x more tokens per task. Jensen Huang put it plainly on the last call: “Demand has gone parabolic. The reason is simple. Agentic AI has arrived.” That is my thesis in one sentence, and NVIDIA’s Q1 FY27 numbers back it up.
Numbers That Keep Me Adding Data Center revenue reached $75.246 billion, up 92% year over year, and Networking alone climbed 199% as InfiniBand and Spectrum-X shipped with every rack. Total revenue hit $81.61 billion, up 85.23%, and management guided Q2 to $91.0 billion at a 75.0% non-GAAP gross margin. That was the fourth consecutive quarter of beating expectations.
Free cash flow of $48.554 billion in a single quarter is what a retirement-focused investor should care about. The board raised the dividend from $0.01 to $0.25 per share and authorized an additional $80.0 billion in buybacks. The balance sheet carries debt-to-equity of 0.073 and interest coverage of 503x, with return on equity of 101.5%. This is a compounder in the classic sense.
Why Not AMD or Broadcom Most readers reach first for Advanced Micro Devices (NASDAQ:AMD) or Broadcom (NASDAQ:AVGO). I pass on both. NVIDIA’s Data Center Compute line by itself was $60.400 billion in a single quarter, dwarfing AMD’s data center run rate. Broadcom’s custom ASIC pitch is real, and I respect it, but Jensen described NVIDIA as “the only platform that runs in every cloud, powers every frontier and open source model, and scales everywhere AI is produced”. Software rentability across every hyperscaler and every sovereign is a moat custom silicon does not match. Forward P/E of 25 with a PEG of 0.591 looks reasonable for a business growing revenue 85% year over year.
Risk I Refuse to Wave Away The number that could actually bite is $119.0 billion in supply-related commitments. If demand softens, that becomes inventory risk. China is the second overhang: NVIDIA shipped no H20 compute products to China in Q1 and excluded China Data Center compute from the outlook. I hold anyway because the visibility is there. Management pointed to $1 trillion in Blackwell and Rubin revenue from 2025 through calendar 2027, and hyperscale capex is forecast to exceed $1 trillion in 2027. Vera Rubin production begins in Q3, and Huang expects NVIDIA to be “supply constrained throughout the entire life of Vera Rubin”.
Why the Buy Button Stays Active The stock is up 22.87% over the last year and 935.04% over five years. It sits below its 52-week high of $236.26, and it just gave back 4.64% last week. Every agent spun up by every enterprise on the planet routes back to a GPU, and Jensen framed the arithmetic of the decade in one sentence: “In the AI era, compute capacity is revenue and profits.” That is the sentence that keeps me buying.
Contact [email protected] for any questions or corrections.
While Nvidia (NASDAQ: NVDA) stock has been suffering from a stubborn losing streak through the previous week and has only seen a moderate 0.093% upward move in the Monday pre-market, it is set for a major catalyst on August 26.
Nvidia stock price one-week chart. Source: Google Specifically, the world’s largest semiconductor company is set to report its quarterly earnings on Wednesday in an event that is all but guaranteed to drive volatility.
Analyst and investor expectations for the day are, arguably, sky-high, with experts calling for $92 billion in sales – nearly 13% higher than in the previous quarter – and earnings per share (EPS) of $2.01.
Nvidia stock recent and forthcoming quarterly EPS. Source: Nasdaq Notably, while Nvidia outperformed forecasts in the previous fourteen reports, NVDA stock fell sharply in the subsequent sessions.
Nvidia stock dropped after each 2026 quarterly earnings report Indeed, the blue-chip chipmaker’s equity suffered a 9.39% two-day drop after the February filing before regaining bullish momentum, and the May disclosure led to a 5.52% drop across nine days.
The short-term uncertainty is exacerbated by the fact that Nvidia equity suffered downward corrections following both 2026 reports, despite rallying ahead of the event in February and dropping three months later.
Furthermore, though the NVDA stock price performance since the first filing of the year – overall a 9.80% rally by press time – indicates the semiconductor giant remains an overall ‘Buy,’ the 3.92% fall since May highlights that strong returns are not guaranteed, unlike in the previous years of the artificial intelligence (AI) ‘boom’.
Wall Street analysts remain confident Nvidia stock is a top long-term ‘Buy’ Elsewhere, even if performance has been somewhat underwhelming since Nvidia reached a $5 trillion valuation in late 2025 and the previous two quarterly earnings offer little certainty, Wall Street appears adamant that investing in the company remains a winning idea.
On average, institutional experts estimate that an investment made in NVDA shares in August 2026 will rise 40.56% in the next 12 months as the equity soars to $301.82.
Additionally, analyst confidence is reinforced by the fact that all twenty-six ratings represented on the stock analysis platform TipRanks position Nvidia as a ‘Buy’ at press time on August 24.
Wall Street sets Nvidia stock price target for the next 12 months. Source: TipRanks Why Nvidia stock is not a great ‘Buy’ ahead of Wednesday earnings Simultaneously, there are multiple signs that the semiconductor giant is not a safe buy ahead of Wednesday’s earnings. To begin with, performance from earlier in 2026 indicates that waiting for the post-filing dip is likely to lead to better overall results.
Meanwhile, the very high forecasts for both sales and EPS increase the risk that the chipmaker will break its beating streak – an outcome that could prove catastrophic for both Nvidia stock and the wider market.
Finally, there have been multiple signs recently that the AI ‘boom’ – a cycle that has been pivotal for the semiconductor giant’s rise from a $360 billion to $5.2 trillion valuation – is weakening.
Not only has the technology failed to produce unambiguous financial benefits, but Nvidia has increasingly been making attempts to address the circular financial concerns while engaging in what appears to be circular financing.
The most recent examples of the trend came in the form of a $500 billion infrastructure funding memorandum of understanding (MoU) – which is, judging by the company’s 2025 MoU with OpenAI, more likely to lead nowhere than not – and a possible investment in Perplexity at a $30 billion valuation reported first on August 23.
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Nvidia jedná o investici do Perplexity v rámci kola, které by ocenilo AI startup na více než 30 miliard USD. Oproti předchozímu financování by to znamenalo růst valuace o více než 50 %.
Nvidia (NVDA.O) is in talks to invest in Perplexity as part of an equity funding round that would value the AI startup at more than $30 billion, The Information reported on Sunday, citing people with knowledge of the discussion.
The funding round would increase Perplexity's valuation by more than 50% from its previous financing a year ago, according to the report.
Perplexity's annualized revenue has risen to more than $750 million from less than $250 million at the start of the year, the report said. Part of the revenue growth has been driven by Perplexity Computer, a cloud-based AI agent used by professionals to automate computer-based tasks, the report added, citing people familiar with the matter.
Perplexity declined to comment on the Information report, while Nvidia did not immediately respond to a request for comment.
The Information reported in September last year that Perplexity had finalized a $20 billion valuation.
Earlier this year, Perplexity signed a $750 million agreement with Microsoft (MSFT.O) to use its Azure cloud service, according to a Bloomberg News report.
Perplexity is planning to go public in 2028 regardless of how the market receives the listings of Anthropic and OpenAI, CEO Aravind Srinivas told CNBC in an interview in June.
The startup's high-profile backers, along with Nvidia, include Amazon founder Jeff Bezos and Japan's SoftBank Group (9984.T).
Nvidia, stále v centru AI boomu, má ve středu zveřejnit výsledky. Analytici čekají, že její zisky letos budou tvořit větší podíl celkových zisků indexu S&P 500.
Earnings WatchNvidia is due to report earnings on Wednesday, and ‘a very broad universe of companies’ is tied to the themes that the chip giant represents
Nvidia was once nearly synonymous with the artificial-intelligence build-out. Now, there are a handful of other AI companies capturing investor attention as they rake in hefty profits.
But earnings results from the chip maker NVDA, which remains at the heart of the AI boom and has a market value of around $5 trillion, are still a closely watched macro event every three months. Even amid concerns about about circular dealmaking within the AI industry and the sustainability of high data-center spending, analysts expect the company’s profits to make up an ever-greater share of the S&P 500 index’s SPX overall earnings this year.
About the Author
Bill Peters is a Los Angeles–based MarketWatch reporter.
Britney Nguyen is a tech reporter covering Nvidia, chips and AI. You can find her on X at @britneycath.
Family Wealth Partners LLC trimmed its holdings in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 62.6% in the 2nd quarter, according to its most recent filing with the SEC. The institutional investor owned 1,859 shares of the computer hardware maker’s stock after selling 3,110 shares during the quarter. Family Wealth Partners LLC’s holdings in NVIDIA were worth $372,000 at the end of the most recent reporting period.
Other hedge funds have also bought and sold shares of the company. Lifetime Wealth Management P.C. bought a new position in shares of NVIDIA during the 4th quarter valued at $26,000. Longview Financial Advisors Inc. bought a new position in NVIDIA in the first quarter valued at about $27,000. Longfellow Investment Management Co. LLC boosted its position in NVIDIA by 47.9% in the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock worth $33,000 after purchasing an additional 67 shares during the last quarter. Phillip James Consulting Co. purchased a new position in NVIDIA in the first quarter worth about $40,000. Finally, Spurstone Advisory Services LLC bought a new stake in shares of NVIDIA during the 2nd quarter valued at about $40,000. Hedge funds and other institutional investors own 65.27% of the company’s stock.
Insider Activity In other news, Director Mark A. Stevens sold 885,000 shares of NVIDIA stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $210.17, for a total value of $186,000,450.00. Following the completion of the transaction, the director owned 5,207,271 shares in the company, valued at approximately $1,094,412,146.07. The trade was a 14.53% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director John Dabiri sold 625 shares of the business’s stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total transaction of $133,750.00. Following the transaction, the director owned 14,163 shares in the company, valued at $3,030,882. This trade represents a 4.23% 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 1,901,125 shares of company stock valued at $410,583,015 in the last ninety days. Insiders own 3.94% of the company’s stock.
Key Headlines Impacting NVIDIA Here are the key news stories impacting NVIDIA this week: Positive Sentiment: NVIDIA is reportedly in advanced talks to invest several hundred million dollars in Cloverleaf Infrastructure, a developer of U.S. data-center power and infrastructure. The move could help address the electricity bottleneck limiting AI capacity while strengthening NVIDIA’s role in projects that use its systems. Nvidia in Talks to Invest in Data-Center Power Developer Cloverleaf Infrastructure Positive Sentiment: Analyst support remains strong before earnings. BMO named NVIDIA its top semiconductor pick with a $340 price target, while Jefferies reportedly expects revenue to exceed consensus by roughly $3 billion. Consensus forecasts call for approximately $91 billion of quarterly revenue, supported by Blackwell and broader AI infrastructure demand. Nvidia stock dubbed top pick ahead of Q2 earnings Positive Sentiment: Reports that SpaceX is standardizing its AI infrastructure on NVIDIA chips reinforce the company’s competitive position and could support demand for its next-generation Vera Rubin platform. NVIDIA is also exploring a potential partnership or acquisition involving South Korean AI-chip designer Rebellions, indicating continued investment in its AI ecosystem. NVIDIA Could Snap up Korean AI Chip Startup Rebellions Neutral Sentiment: NVIDIA’s proposed investment in Cloverleaf follows other efforts to finance AI infrastructure and convert future GPU capacity into a financeable asset. The strategy could accelerate deployments, but it also exposes NVIDIA to capital-allocation and customer-financing risks. Nvidia Makes Another Bet on the AI Power Bottleneck Negative Sentiment: Investors are weighing possible competitive and product risks. NVIDIA is reportedly testing Rubin Ultra configurations with less high-bandwidth memory than originally planned, while Microsoft is preparing its own Maia 300 AI chip. These developments could raise questions about performance, supply availability and long-term customer diversification. NVIDIA and AMD: Rubin Ultra memory reports Negative Sentiment: NVIDIA denied a report that it plans small-batch shipments of a China-specific AI chip by year-end, removing a potential near-term catalyst. Analysts also say any renewed China H200 sales may have only a limited effect on revenue. Nvidia to ship AI chip for China by year-end Negative Sentiment: Higher Treasury yields and warnings from investors such as Michael Burry that AI data-center financing may be excessive are adding valuation pressure ahead of a high-expectation earnings event. Analyst Upgrades and Downgrades Several analysts recently issued reports on the stock. Craig Hallum boosted their target price on shares of NVIDIA from $245.00 to $275.00 and gave the company a “buy” rating in a research report on Thursday, May 21st. Seaport Research Partners increased their price target on shares of NVIDIA from $140.00 to $180.00 and gave the stock a “sell” rating in a research report on Thursday, May 21st. Mizuho set a $300.00 price target on shares of NVIDIA in a research note on Thursday, May 21st. Itau BBA Securities cut their price objective on shares of NVIDIA from $256.00 to $218.00 in a research report on Wednesday, June 24th. Finally, Argus upped their price objective on NVIDIA from $220.00 to $270.00 and gave the stock a “buy” rating in a research note on Thursday, May 21st. Three investment analysts have rated the stock with a Strong Buy rating, forty-nine have issued a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Buy” and a consensus target price of $308.01.
Read Our Latest Report on NVIDIA
NVIDIA Stock Performance Shares of NASDAQ NVDA opened at $214.75 on Friday. NVIDIA Corporation has a 52-week low of $164.07 and a 52-week high of $236.54. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44. The firm’s fifty day moving average is $207.47 and its two-hundred day moving average is $199.52. The company has a market cap of $5.20 trillion, a P/E ratio of 32.89, a P/E/G ratio of 0.43 and a beta of 2.23.
NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, beating analysts’ consensus estimates of $1.76 by $0.11. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The firm had revenue of $81.61 billion during the quarter, compared to the consensus estimate of $78.42 billion. During the same period in the prior year, the company earned $0.81 EPS. The company’s quarterly revenue was up 85.2% compared to the same quarter last year. As a group, analysts anticipate that NVIDIA Corporation will post 8.8 EPS for the current fiscal year.
NVIDIA announced that its Board of Directors has authorized a share buyback plan on Wednesday, May 20th that permits the company to buyback $80.00 billion in shares. This buyback authorization permits the computer hardware maker to purchase up to 1.5% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s leadership believes its stock is undervalued.
NVIDIA Company Profile (Free Report)
NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.
The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.
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Bloomberg uvedl, že některým velkým zákazníkům Nvidie bylo oznámeno zdražení serverů s AI čipy o více než 15 % kvůli rostoucím cenám paměťových čipů. Nové ceny mají platit pro systémy dodané začátkem příštího roku.
Some of Nvidia's (NVDA.O) largest customers have been told prices of servers containing its AI chips will rise by more than 15% in many cases with memory chip costs soaring, Bloomberg News reported on Saturday.
The price hikes will go into effect on systems shipped early next year and will impact systems including those with the flagship Vera Rubin and Grace Blackwell chips, the report added, citing people familiar with the process. The increases will depend on Nvidia's chip generation and memory configurations, they said.
Reuters couldn't immediately verify the report. Nvidia did not immediately respond to a request for comments outside regular business hours.
Companies that build servers under contract for large data center operators such as Microsoft (MSFT.O), Alphabet Inc.’s Google (GOOGL.O) and Oracle (ORCL.N) have recently informed their customers of the upcoming increases, the report added.
Nvidia, whose chips underpin much of the AI infrastructure buildout, is set to report second-quarter results on August 26.
The company has become a proxy for the broader AI ecosystem spanning chip makers and companies financing the rapid expansion of data center capacity.
Nvidia investuje do Cloverleaf Infrastructure, startupu zaměřeného na energetickou infrastrukturu pro obří datová centra. Firma tím míří na další úzké hrdlo AI boomu: dostupnost elektřiny.
Nvidia Corp. (NVDA, Financials), the dominant supplier of AI processors, is putting money into another part of the artificial intelligence boom: the infrastructure needed to power it.
That helps explain why Nvidia has put money into Cloverleaf Infrastructure, a startup that is focused on building power projects for massive data centers. This is a good step because Nvidia is no longer only selling more GPUs as its growth story.
Those chips need large quantities of electricity and the businesses developing the AI data centers are already bumping into restrictions regarding grid access, power availability and how rapidly more capacity can be added. Nvidia obviously sees that problem getting bigger.
Backing Cloverleaf gives the company a means to get closer to the infrastructure side of the AI buildout and potentially help take one of the constraints off its clients. It also tells you something about where the AI boom is headed. The chips were the shortage everyone feared in the last few years. The next scarcity it may be megawatts.
That's important for Nvidia because customers can't put their systems to use, even if demand is great, if they don't have enough power to run them. So this might not be a big issue for Nvidia financially, but it fits into a much wider story. The corporation is beginning to spend not just in the AI boom itself, but in the things that need to happen to keep the boom going.
Nvidia příští středu po uzavření trhu zveřejní výsledky za fiskální 2. čtvrtletí. Investoři už ale po třech po sobě jdoucích reportech s překonáním odhadů a zvýšením výhledu čekají víc než jen další překonání odhadů.
NVIDIA Corp. (NASDAQ:NVDA) reports fiscal second-quarter results next Wednesday after the market close, and the print arrives as the chipmaker’s remarkable AI-driven rally faces a stagnant stretch.
NVDA stock is trending. See the chart and price action here. Nvidia shares have surged from roughly $11 in late 2022, split-adjusted, to about $216 today, a gain near 1,700% since ChatGPT’s November 2022 launch kicked off the AI boom, according to Bespoke Investment Group.
The move ranks among the most powerful multi-year runs by any large-cap stock in recent market history, and the long-term chart remains firmly in an uptrend despite a sluggish past year.
Bespoke highlights just how dramatic the shift in fundamentals has been. Quarterly revenue has exploded since late 2022, blowing past Wall Street’s consensus estimates by wide margins nearly every period. Few companies have seen fundamentals catch up to a stock’s rally quite like this one.
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The Triple-Play KingNvidia has become what Bespoke calls a “triple-play king,” a company that consistently beats both earnings and revenue estimates while also raising guidance.
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Over the past 20 quarterly reports spanning five years, the chipmaker has delivered 14 triple plays, including three straight heading into Wednesday’s release.
The catch: Nvidia’s triple plays no longer guarantee a stock pop. Shares finished lower on each of the last three beat-and-raise reports, suggesting investors have priced in near-flawless execution and now demand something more.
Sky-High ExpectationsExpectations have grown too large for good news alone to move the needle. A beat-and-raise quarter, once cause for celebration, now reads as the baseline.
Nvidia investors increasingly want confirmation that AI demand extends well beyond the current cycle, plus clarity on margins as competition intensifies from custom silicon and rival chipmakers.
Wednesday’s report will test whether Nvidia can finally snap the pattern. A fourth consecutive triple play met with another sell-off would reinforce the idea that the stock has entered a “prove it” phase, one where even flawless numbers cannot overcome heightened investor demands.
NVDA Stock Price Activity: Nvidia stock was down 0.47% at $215.89 at the time of publication on Friday, according to data from Benzinga Pro.
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BMO Capital Markets označila Nvidia za „top pick“ před zveřejněním výsledků za fiskální 2. čtvrtletí, které mají být zveřejněny 26. srpna po uzavření trhu, a stanovila cílovou cenu na 340 USD. Firma má AI systémy na příštích 12 měsíců plně vyprodané.
Buy Nvidia (NVDA). The article says systems are “fully booked for the next 12 months” and the Vera Rubin NVL72 ramps in the back half, so earnings should confirm demand/supply tightness rather than hype. Valuation is framed as a “discount” at ~18x forward P/E versus very high growth (84% revenue growth in fiscal 2027).
Key Risk: Customers suddenly slow AI capex or cancel/defers orders, breaking the “fully booked” visibility.
AI infrastructure beneficiaries
Buy Broadcom (AVGO). If NVDA demand stays strong, hyperscalers keep building AI clusters, which pulls through networking/ASIC spend. AVGO is a direct second-order beneficiary of more AI rack deployments and higher switch/accelerator demand tied to NVDA-led buildouts.
Key Risk: AI infrastructure spending shifts away from networking/ASICs or AVGO’s AI-related revenue growth disappoints despite NVDA strength.
Nvidia NVDA stock is in focus on Friday after BMO Capital Markets said the chipmaker remains a “top pick” for those seeking exposure to the global artificial intelligence (AI) buildouts.
Analyst Harsh Kumar announced an Outperform rating and $340 price target on the semiconductor behemoth heading into its fiscal Q2 earnings set to be released on August 26th (after market close).
Ahead of the earnings event, Nvidia stock is up over 30% versus its year-to-date low.
BMO’s bullish thesis starts with Nvidia’s unusually strong position across the AI computing stack.
Kumar said the giant’s AI systems are “fully booked for the next 12 months as demand exceeds supply,” a striking assessment heading into its earnings report.
That level of visibility matters because it suggests NVDA shares’ growth story is being supported by actual customer demand rather than simply elevated expectations around AI spending.
BMO also expects Nvidia’s next-gen Vera Rubin NVL72 system to begin ramping in the back half of the year.
The new platform could provide another leg of growth as hyperscalers and other large customers continue expanding AI infrastructure.
Kumar’s broader view is that AI remains in “the early innings,” with capital expenditures expected to rise for years as demand for AI tokens and computing capacity expands.
Crucially, BMO does not believe Nvidia’s valuation has become excessive relative to its expected growth.
Kumar pointed to the stock’s 18x forward price-to-earnings (P/E) multiple – calling that valuation “a discount” when measured against the firm’s expected revenue growth.
According to him, NVDA could grow revenue by 84% in fiscal 2027 and another 50% in the year after.
His argument goes directly against one of the biggest concerns surrounding Nvidia shares: whether the stock already prices in too much of the AI boom.
At roughly $216, Nvidia remains below its $236 high and has recently struggled to regain its May peak.
The combination of a still-elevated growth rate, massive AI infrastructure demand and a valuation BMO considers compelling gives the bull case more substance than simply betting on another AI-driven rally.
Wall Street’s expectations for Nvidia Corp’s fiscal Q2 results are already enormous.
Consensus estimates call for about $92.16 billion in revenue and $2.09 in adjusted earnings per share, representing year-over-year growth of about 96% and 99%, respectively.
The underlying strength in Nvidia’s financials reflects sustained demand for its AI chips – as cloud providers and other major tech firms continue committing enormous sums to AI infrastructure.
Note that NVDA stock also currently pays a small dividend yield of 0.46%, which makes it even more attractive as a long-term holding.
NVIDIA má 26. srpna po uzavření trhu oznámit výsledky za 2. fiskální čtvrtletí, přičemž tržby se očekávají na 91,8 miliardy USD a EPS na 2,09 USD. Očekává se růst tržeb o 96,4 % a zisku na akcii o 99,1 % meziročně.
Key Takeaways Consensus estimates for NVIDIA's Q2 revenue and EPS suggest y/y increases of 96.4% and 99.1%, respectively.NVIDIA's Data Center results may benefit from hyperscale demand, inference adoption and generative AI.NVIDIA's Edge Computing momentum is supported by demand across gaming, robotics and automotive markets. NVIDIA Corporation (NVDA - Free Report) is scheduled to report second-quarter fiscal 2027 results on Aug. 26, after market close.
The company expects revenues of $91 billion (+/-2%) for the quarter. The Zacks Consensus Estimate is pegged at $91.8 billion, which indicates a whopping 96.4% increase from the year-ago reported figure.
The Zacks Consensus Estimate for quarterly earnings has been revised upward by 2 cents over the past 60 days to $2.09. This suggests growth of 99.1% from the year-ago quarter’s earnings of $1.05 per share.
Image Source: Zacks Investment Research
Earnings of the graphics chip maker surpassed the Zacks Consensus Estimate in the trailing four quarters, delivering an average surprise of 5.52%.
Q2 Earnings Whispers for NVIDIA TechnologyOur proven model does not conclusively predict an earnings beat for NVDA this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that is not the case here.
Earnings ESP: NVIDIA has an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: NVIDIA currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Influence NVIDIA’s Q2 ResultsNVIDIA’s fiscal second-quarter top line is likely to have benefited from the continued strength in its Data Center business. The increasing adoption of cloud-based solutions amid the growing hybrid working trend is anticipated to have boosted the demand for its chips across the Data Center business. An increase in hyperscale demand and growing adoption in the inference market are likely to have acted as tailwinds in the to-be-reported quarter.
The Data Center business should have benefited from the growing demand for generative AI and large language models using GPUs based on NVIDIA Blackwell architectures. The strong demand for its chips from large cloud service and consumer Internet companies is anticipated to have aided the segment’s top-line growth in the to-be-reported quarter.
NVIDIA is also strengthening its position beyond GPUs through networking products such as InfiniBand, Spectrum-X Ethernet and NVLink. This is likely to have enabled the company to capture a larger portion of AI infrastructure spending during the fiscal second quarter.
NVIDIA’s fiscal second-quarter performance is also likely to have benefited from the continued momentum in its Edge Computing segment, fueled by strong demand across the gaming, robotics and automotive end markets.
NVIDIA’s Stock Price Performance & ValuationShares of NVIDIA have been highly volatile over the past year. The stock has gained 21.9% over the past year, underperforming the Zacks Semiconductor – General industry’s rise of 27.3%. The stock has also underperformed major semiconductor shares, including Intel Corporation (INTC - Free Report) , Advanced Micro Devices, Inc. (AMD - Free Report) and Broadcom Inc. (AVGO - Free Report) . Shares of Intel, Advanced Micro Devices and Broadcom have grown 271.5%, 179.3% and 24.2%, respectively.
NVIDIA 1-Year Price Return Performance
Image Source: Zacks Investment Research
Now, let us look at the value NVIDIA offers investors at the current levels. NVIDIA is trading at a discount with a forward 12-month price-to-earnings (P/E) of 19.69X compared with the industry’s 22.14X, reflecting an attractive valuation.
Forward 12-Month P/E Multiple
Image Source: Zacks Investment Research
Compared with other chip giants, NVDA trades at a lower multiple against Intel, Advanced Micro Devices and Broadcom. Currently, Intel, Advanced Micro Devices and Broadcom trade at a forward P/E of 51.77X, 39.08X and 20.60X, respectively.
Investment Consideration for NVIDIAThe company remains the clear leader in AI infrastructure. Cloud providers, enterprises and governments continue to invest billions of dollars in building AI data centers, and NVIDIA's GPUs remain the preferred choice for training and running advanced AI models. The company's newest Blackwell and Vera Rubin AI platforms are seeing strong customer adoption due to their superior performance and energy efficiency.
Another key advantage is NVIDIA's software ecosystem. CUDA, along with its expanding AI software portfolio, creates high switching costs for customers, making it difficult for competitors to take market share. This competitive advantage extends well beyond hardware and should continue supporting long-term growth.
As AI adoption expands from model training to large-scale inference and enterprise deployment, NVIDIA is positioned to benefit across every major phase of the AI investment cycle.
Final Thoughts: Buy NVDA Stock NowAs a leading player in the semiconductor industry, NVIDIA has benefited from its dominance in GPUs and strategic expansion into AI and data centers. The company's strong product portfolio, leadership in AI and relentless innovation present a compelling investment opportunity. A lower valuation multiple than the industry also suggests that NVIDIA is a good investment option right now.
Microsoft schválil Horizon 1, první ze čtyř datových center IREN v rámci pětileté smlouvy za 9,7 miliardy USD. IREN tak může začít fakturovat a proměňuje AI projekty v provozní infrastrukturu a tržby.
Data-center operator IREN Ltd. (IREN, Financials) has built its business on Bitcoin mining and is beginning to demonstrate that AI drive is more than a promise.
Microsoft Corp. (MSFT, Financials) has officially approved Horizon 1, the first of four data centers IREN is developing under a five-year, $9.7 billion deal.
That's important because IREN may now begin to send Microsoft a bill every month. One of the major uncertainties around the company until now has been whether it can really execute an AI buildout that dwarfs its existing business. The first real proof point is Horizon 1.
Also operating the site were Nvidia Corp. (NVDA, Financials) computers with GB300, which gave the site Exemplar Cloud status, offering IREN another vote of confidence in performance and reliability.
The corporation has already put together a $3.65 billion loan package connected to the Microsoft contract that should pay much of the GPU spending. It also has a separate five-year $3.4 billion cloud deal with Nvidia.
There's still a lot to prove. While IREN's AI business remains small in comparison to Bitcoin mining, the growth comes with substantial cash needs.
But that story is changing. Investors are no longer merely waiting for IREN to announce huge AI acquisitions. They are beginning to see those deals turn into operational infrastructure and now revenue.
AMD ztratila SpaceX ve prospěch NVIDIA, která získala přístup k AI infrastruktuře na platformě Vera Rubin. Přesto AMD ve 2. čtvrtletí zvýšila výnosy o 50,1 % na 11,54 miliardy USD a výnosy datacentra o 107 % na 6,72 miliardy USD.
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Elon Musk’s decision to build SpaceX’s (NASDAQ:SPCX | SPCX Price Prediction) AI infrastructure around NVIDIA’s (NASDAQ:NVDA) Vera Rubin platform, reportedly claiming 20% of NVIDIA’s next-platform capacity, is the kind of headline that makes AMD bulls nervous. It denies Advanced Micro Devices (NASDAQ:AMD) a flagship logo at exactly the moment Lisa Su is trying to convince Wall Street her Instinct roadmap can rival Jensen Huang’s.
The stock has felt it. Shares closed at $469.46 on Thursday, down 13.77% over the past month even after a blowout quarter.
The question is whether SpaceX is a symptom of something structural or a single lost deal in a market AMD believes will approach $2 trillion by 2030. The answer sits closer to the second interpretation than the first.
What the SpaceX Loss Actually Signals Musk’s rationale centers on allocation guarantees. SpaceX wants guaranteed allocation on a platform NVIDIA controls, and NVIDIA chooses who gets capacity.
That gives NVIDIA a lever AMD cannot yet match: the ability to convert scarcity into exclusivity with the largest AI spenders on earth.
SpaceX also fits a very specific customer profile. It is a single-tenant buyer aligned philosophically with Musk’s xAI, and Grok training runs benefit from staying within a single hardware stack.
Losing that customer stings, but reading it as evidence that AMD is falling apart overlooks the fact that AMD actually won this cycle.
Counter-Evidence Is Loud AMD reported Q2 revenue of $11.54 billion, up 50.1% year over year, with Data Center revenue of $6.72 billion, up 107%.
That segment now generates $2.1 billion in operating income, a swing from a loss a year ago tied to China export charges.
The customer list backing the forward story runs deep. AMD has committed deployments with OpenAI, Meta (NASDAQ:META), and Anthropic, whom Lisa Su called “strategic anchor customers,” plus a 2-gigawatt Anthropic deal on MI450 in Helios and Microsoft (NASDAQ:MSFT) Azure at scale.
Su told analysts, “We enter the second half with strong momentum as EPYC demand accelerates, Instinct deployments scale and Helios begins to ramp.”
Verdict: Contested, Not Collapsing NVIDIA still commands preferential access to hyperscale capital and can still lock in customers like SpaceX through allocation politics rather than benchmarks. That advantage is real, and AMD’s forward P/E of 65 assumes it narrows.
But AMD’s challenge remains intact. Data Center is expected to more than double year over year in 2027, and management raised its long-term targets rather than trimming them. (We reverse-engineered what the biggest chip winners looked like early on and put the pattern in a free playbook, here.)
Reddit sentiment scored a neutral 48 this week, with the most upvoted thread titled “Looking for different perspectives, sell or reduce my position in AMD.” That caution is fair given the recent drawdown.
SpaceX is a loss worth acknowledging, although it is one customer inside a market where AMD has already secured multi-gigawatt commitments from the companies actually building frontier models. The AI challenge is being contested, which is a different thing entirely.
Contact [email protected] for any questions or corrections.
AMD oznámila rekordní tržby ve výši 11,54 miliardy USD a tržby v datových centrech vzrostly meziročně o 107 % na 6,72 miliardy USD. NVIDIA mezitím vykázala tržby v datových centrech ve výši 75 miliard USD, což je meziročně o 92 % více.
AMD (NASDAQ: AMD | AMD Price Prediction) and NVIDIA (NASDAQ: NVDA) both just delivered post-earnings reports that reframe the AI hardware race. AMD posted record revenue of $11.54 billion with Data Center more than doubling. NVIDIA answered with an $82 billion quarter and Blackwell shipping into every major hyperscaler.
The question is whether AMD is finally catching up, or whether Jensen Huang just widened the moat again.
Helios Lands. Blackwell Scales. Two Different Zip Codes. AMD’s quarter was carried by Data Center revenue of $6.72 billion, up 107% year over year and now 58% of total revenue. EPYC server chips grew greater than 70% year over year, and Instinct more than doubled.
Lisa Su called out Helios, the new rack combining EPYC Venice, MI450 GPUs and Pensando networking, saying customer pull is “very strong and tracking ahead of our initial forecasts.” Anthropic committed to up to two gigawatts of MI450 series GPUs in Helios, with the first gigawatt starting in 2027.
NVIDIA operates at a different altitude. Data center revenue hit $75 billion, up 92%, with networking alone nearly tripling year over year.
Huang told investors the company sees $1 trillion in Blackwell and Rubin revenue from 2025 through calendar 2027, and that “we are growing share in inference very, very quickly.” Buybacks got an $80 billion refresh. The dividend jumped to 25 cents per share.
Business Driver AMD NVIDIA Data Center Revenue $6.72B (+107%) $75B (+92%) Non-GAAP Gross Margin 56% 75% Next-Quarter Guide ~$13B (+41%) $91B (+/-2%) Challenger Rack vs. Full-Stack Monopoly AMD is betting that a credible second source of gigawatt-scale AI compute is worth many billions to hyperscalers who dislike sole-vendor risk. Rackham software now runs more than 3 million models out of the box, with open-source contributions up more than tenfold over the past year. That is real progress against CUDA, though not parity.
NVIDIA’s pitch is vertical integration. Vera Rubin production begins in Q3, and Huang says it can deliver up to 35x higher inference throughput than Blackwell. Standalone Vera CPUs open a claimed $200 billion TAM on top of GPUs. The competitive gap extends well beyond silicon into NVLink, Spectrum-X, InfiniBand and CUDA glued together.
All that gigawatt-scale compute still has to be powered, cooled, and networked by somebody, which is the whole thesis behind our free report on seven AI infrastructure suppliers that aren’t chipmakers.
What I Want to See in Q3 and Q4 I will be watching Helios yields and how quickly Anthropic’s first gigawatt actually turns into revenue. AMD guided Q3 to roughly $13 billion, and management expects Data Center to more than double year-over-year in 2027.
You should also watch NVIDIA’s ability to defend gross margin at 75% while China compute stays excluded from guidance.
How the Setup Favors Each Name On the fundamentals, NVIDIA still screens as the higher-quality name. A P/E of 34 paired with 65.6% operating margins is rare at this scale, and Rubin looks like another generational lead.
AMD screens as the higher-beta way to play the theme. Shares are already up 180.05% over the past year, and the stock trades at a forward P/E of 68, which prices in a lot of Helios success. If MI450 ramps cleanly through 2027, AMD has room to run.
If yields slip or China policy tightens further, the platform that “runs every frontier AI model” looks like the more defensive exposure. Reddit’s neutral, hesitant tone on AMD, with sentiment scores of 45, 47, 48, 48, and 50, tells me I am not alone in that caution.
Contact [email protected] for any questions or corrections.
Alliance Private Wealth LLC ve 2. čtvrtletí snížila svůj podíl v NVIDIA o 27,1 % a prodala 8 829 akcií. Po prodeji držela 23 734 akcií v hodnotě 4,749 milionu USD.
Alliance Private Wealth LLC reduced its stake in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 27.1% in the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 23,734 shares of the computer hardware maker’s stock after selling 8,829 shares during the period. NVIDIA makes up about 1.6% of Alliance Private Wealth LLC’s holdings, making the stock its 18th largest holding. Alliance Private Wealth LLC’s holdings in NVIDIA were worth $4,749,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Other hedge funds also recently made changes to their positions in the company. Brighton Jones LLC boosted its stake in NVIDIA by 12.4% in the 4th quarter. Brighton Jones LLC now owns 324,901 shares of the computer hardware maker’s stock worth $43,631,000 after purchasing an additional 35,815 shares during the period. Bank Pictet & Cie Europe AG increased its position in shares of NVIDIA by 1.0% during the fourth quarter. Bank Pictet & Cie Europe AG now owns 2,346,417 shares of the computer hardware maker’s stock valued at $315,100,000 after buying an additional 22,929 shares during the period. Highview Capital Management LLC DE increased its position in shares of NVIDIA by 6.7% during the fourth quarter. Highview Capital Management LLC DE now owns 58,396 shares of the computer hardware maker’s stock valued at $7,842,000 after buying an additional 3,653 shares during the period. Hudson Value Partners LLC lifted its holdings in shares of NVIDIA by 30.7% in the fourth quarter. Hudson Value Partners LLC now owns 50,658 shares of the computer hardware maker’s stock worth $6,805,000 after buying an additional 11,900 shares in the last quarter. Finally, Wealth Group Ltd. boosted its position in shares of NVIDIA by 15.7% in the first quarter. Wealth Group Ltd. now owns 6,598 shares of the computer hardware maker’s stock valued at $715,000 after acquiring an additional 896 shares during the period. 65.27% of the stock is currently owned by hedge funds and other institutional investors.
NVIDIA Stock Performance NASDAQ NVDA opened at $216.85 on Friday. NVIDIA Corporation has a 52-week low of $164.07 and a 52-week high of $236.54. The company has a fifty day moving average of $207.28 and a 200-day moving average of $199.41. The company has a market capitalization of $5.25 trillion, a P/E ratio of 33.21, a P/E/G ratio of 0.43 and a beta of 2.23. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44.
NVIDIA (NASDAQ:NVDA – Get Free Report) last released its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, beating analysts’ consensus estimates of $1.76 by $0.11. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The business had revenue of $81.61 billion for the quarter, compared to analysts’ expectations of $78.42 billion. During the same quarter in the prior year, the firm earned $0.81 earnings per share. The firm’s revenue was up 85.2% on a year-over-year basis. As a group, equities research analysts predict that NVIDIA Corporation will post 8.6 EPS for the current fiscal year. NVIDIA announced that its board has authorized a stock repurchase program on Wednesday, May 20th that allows the company to repurchase $80.00 billion in shares. This repurchase authorization allows the computer hardware maker to repurchase up to 1.5% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s leadership believes its stock is undervalued.
Analysts Set New Price Targets Several brokerages recently commented on NVDA. Craig Hallum boosted their price objective on shares of NVIDIA from $245.00 to $275.00 and gave the company a “buy” rating in a research note on Thursday, May 21st. Susquehanna reiterated a “positive” rating and issued a $275.00 target price (up from $250.00) on shares of NVIDIA in a research note on Tuesday, May 12th. Wells Fargo & Company reissued an “overweight” rating and issued a $315.00 price target on shares of NVIDIA in a report on Tuesday, August 11th. Robert W. Baird set a $500.00 price target on shares of NVIDIA and gave the company an “outperform” rating in a research report on Thursday, May 21st. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and issued a $255.00 price target (up from $220.00) on shares of NVIDIA in a report on Thursday, May 21st. Three research analysts have rated the stock with a Strong Buy rating, forty-nine have issued a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, NVIDIA has an average rating of “Buy” and a consensus target price of $307.28.
Read Our Latest Stock Analysis on NVDA
Trending Headlines about NVIDIA Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: China shipments could reopen a portion of NVIDIA’s market. NVIDIA reportedly plans to begin small-batch shipments of a China-specific AI chip by year-end, while limited H200 shipments have already reached Chinese customers. Although the near-term revenue contribution may be modest, the developments could reduce the impact of export restrictions and preserve relationships with major customers such as Alibaba, ByteDance, and Tencent. Nvidia to ship AI chip for China by year-end Positive Sentiment: Analysts remain optimistic ahead of the August 26 earnings release. Jefferies expects fiscal second-quarter revenue to exceed consensus by roughly $3 billion, while RBC reaffirmed its Outperform rating with a $300 price target. Stifel also maintained a Buy rating, citing supply-chain evidence from Foxconn and Super Micro and continued strength in the GPU cycle. RBC rating and price target Foxconn and Super Micro supply-chain analysis Positive Sentiment: Enterprise and infrastructure demand continues to expand. IBM signed a multiyear $240 million agreement with Together AI to deploy NVIDIA HGX B300 systems on IBM Cloud, using NVIDIA’s Spectrum-X networking. CoreWeave also signed a multibillion-dollar deal giving Hudson River Trading access to NVIDIA’s newest systems, supporting the company’s data-center demand outlook. IBM and Together AI agreement Neutral Sentiment: Investors are focused on whether NVIDIA can clear elevated expectations. The company’s earnings report is the major near-term catalyst, with attention on revenue guidance, demand for the Rubin platform, gross margins amid higher memory costs, and visibility into future spending by hyperscalers and AI developers. Negative Sentiment: China’s opportunity remains constrained. Analysts estimate that returning H200 products to China may provide only limited near-term revenue, while Beijing may restrict domestic use and U.S. regulators are examining loopholes that allow Chinese firms to access NVIDIA computing capacity through overseas data centers. China AI access and export-control loopholes Negative Sentiment: Valuation and competitive risks are limiting enthusiasm. Commentary highlights concentrated AI spending, potential competition from custom chips and rivals, and the possibility that exceptionally strong results are already reflected in the share price. NVIDIA has also underperformed the broader semiconductor index this year, increasing investor sensitivity to any earnings or guidance shortfall. Insiders Place Their Bets In other NVIDIA news, Director John Dabiri sold 625 shares of NVIDIA stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total transaction of $133,750.00. Following the transaction, the director directly owned 14,163 shares of the company’s stock, valued at approximately $3,030,882. This trade represents a 4.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen C. Neal sold 15,500 shares of the business’s stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the completion of the sale, the director owned 116,135 shares of the company’s stock, valued at approximately $25,053,803.55. The trade was a 11.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 1,901,125 shares of company stock valued at $410,583,015 over the last 90 days. Insiders own 3.94% of the company’s stock.
About NVIDIA (Free Report)
NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.
The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.
Featured Stories Five stocks we like better than NVIDIA 3 Energy Stocks Raising Dividends as the Sector Surges 5 Reasons the S&P 500 Could Keep Rallying Through Year-End Walmart’s Post-Earnings Drop Could Be a Buying Opportunity The Trade Desk’s Earnings Miss Raises a Bigger Question About Its AI Future Want to see what other hedge funds are holding NVDA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVIDIA Corporation (NASDAQ:NVDA – Free Report).
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Nvidia oznámí výsledky za fiskální 2. čtvrtletí 26. srpna; analytici čekají výnosy téměř 92 miliard USD a zisk na akcii 2,08 USD. Bank of America uvádí backlog 2,3 bilionu USD u čtyř největších cloudových firem v USA.
Nvidia (NVDA -0.33%) is all set to release its fiscal 2027 second-quarter results (for the three months ended July 26) after the market closes on Aug. 26.
The market will be eagerly awaiting the artificial intelligence (AI) bellwether's numbers and outlook, as they will provide clarity about the state of the AI market. It is worth noting that Nvidia stock has underperformed the broader semiconductor sector this year. The PHLX Semiconductor Sector index's 63% gains in 2026 are way ahead of the 21% jump in Nvidia's stock price this year.
However, a closer look at the earnings reports of the major U.S. hyperscalers suggests that this semiconductor stock could get a huge shot in the arm when it releases its quarterly report on Aug. 26.
Image source: Nvidia.
A $2.3 trillion revenue backlog points toward greater demand for Nvidia's chipsThere is incredible demand for AI services, and that's evident from the massive revenue backlogs that major hyperscalers in the U.S. are sitting on. Bank of America notes that the top four cloud service providers in the U.S. ended the second quarter with an enormous backlog of $2.3 trillion. Analyst Vivek Arya points out that companies such as Microsoft, Oracle, Amazon, and Alphabet's Google need to invest aggressively in cloud computing capacity to meet their backlogs.
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Oracle, for instance, estimates that it can convert only 12% of its backlog into revenue over the next year, while Microsoft expects to recognize 30% of the backlog as revenue over the same period. As a result, Arya expects that hyperscalers will continue investing more money in computing capacity. Moreover, neocloud companies, such as CoreWeave and Nebius, along with pure-play AI service providers, are on track to significantly expand their capacities.
Not surprisingly, Nvidia's peer, Advanced Micro Devices, noted on its recent earnings call that the total addressable market (TAM) for AI compute is poised to grow at a 40% compound annual growth rate (CAGR) over the long run, generating nearly $2 trillion in revenue by 2030. What's more, AMD now expects to clock faster growth than its earlier long-term revenue growth estimate of 35%.
Given that Nvidia is a much bigger player than AMD, with an estimated 80% to 90% share of the AI accelerator market, it is poised to win big from the lucrative opportunity over here. The increased backlogs of hyperscalers should ideally boost the demand for Nvidia's AI chips, paving the way for the company to deliver stronger-than-expected numbers and guidance.
Also, AMD noted on the earnings call that it now expects the server CPU market to grow by more than 50% annually through 2030, generating $220 billion in annual revenue.
That's well above the $60 billion estimate for the server CPU market that AMD delivered in November 2025. Nvidia has already set its sights on this massive market, noting that it can sell $20 billion worth of stand-alone server CPUs this year. Nvidia previously sold its server CPUs as part of rack-scale systems, and its decision to sell these chips on a stand-alone basis has unlocked a solid growth opportunity.
Nvidia will reportedly start selling its Vera server CPUs this month. This product could play a central role in helping the company deliver better-than-expected results and guidance, as server CPUs are now finding traction in AI data centers to support agentic AI and inference workloads.
Stronger-than-expected results and guidance should give the stock a big boostAnalysts are expecting a 97% year-over-year increase in Nvidia's revenue in fiscal Q2 to almost $92 billion, along with a similar increase in earnings per share to $2.08. The top-line estimate is slightly higher than the midpoint of Nvidia's guidance of $91 billion. It is also worth noting that Nvidia anticipates its non-GAAP gross margin to increase to 75% for fiscal Q2 from 72.7% in the year-ago period.
The margin increase that Nvidia has guided for suggests that its bottom-line growth could exceed Wall Street's expectations. Also, analysts are expecting Nvidia to guide for $2.35 in earnings per share for the current quarter, which would be an 80% increase from the year-ago quarter. There is a solid probability that Nvidia will call for a stronger earnings increase, as it is poised to start shipping its Vera Rubin processors in the second half of 2026.
The company has already noted that it has an order book worth a whopping $1 trillion for 2026 and 2027. For comparison, the company has generated $253 billion in revenue for the trailing twelve months. So, there is a chance that analysts could be underestimating Nvidia's growth potential, which is why a positive earnings surprise on Aug. 26 could send the stock soaring.
Moreover, Nvidia is trading at an attractive 25 times forward earnings, which is slightly lower than the tech-laden Nasdaq-100 index's forward earnings multiple of 26. So, investors are getting a solid deal on this AI stock right now when its outstanding earnings growth is considered. That's why it seems like a good idea to buy shares of Nvidia before its upcoming earnings report, as solid results and guidance could send the stock on a parabolic run.
Jefferies čeká, že Nvidia příští týden oznámí rekordní překvapení ve výnosech: 95 miliard USD proti konsenzu 92,07 miliardy USD. Pro fiskální třetí čtvrtletí odhaduje výnosy 108 miliard USD.
could be heading toward a record quarterly revenue surprise, with Jefferies forecasting a wider-than-expected beat when the chipmaker reports fiscal second-quarter 2027 results next week.
Jefferies estimates Nvidia will post $95 billion in revenue, compared with the $92.07 billion consensus forecast. The firm also sees fiscal third-quarter revenue reaching $108 billion, about $4.3 billion above expectations.
The outlook comes as Nvidia prepares to increase production of its next-generation Vera Rubin platform. Jefferies expects Rubin-related products to become a larger portion of GPU revenue later this year, with the platform potentially overtaking Blackwell as Nvidia's main revenue contributor in fiscal 2028.
The firm also expects Rubin deployments to scale rapidly, forecasting more than 13,000 racks by the end of 2026 and over 120,000 during 2027. Nvidia's participation in an OpenAI-related AI infrastructure project with SB Energy could further support demand, although Jefferies cautioned that the investment may raise questions about customer financing.
For NVDA stock, the projections point to another strong growth phase, but financing concerns could remain a factor for investors.
Nvidia se obchoduje za méně než 33,3násobek zisku za posledních 12 měsíců, tedy blízko pětiletého minima. Výsledky za fiskální 2027 druhé čtvrtletí oznámí 26. srpna.
Nvidia (NVDA -0.33%) has become one of the most important companies in the world, driving artificial intelligence (AI) development and creating loads of shareholder wealth in the process. However, there are signs the stock may be slowing down. It's beating the market this year, up 16.8% vs. 12.2% for the S&P 500, but that's nowhere near the gains it's delivered in the past.
At the current price, it trades at under 33.3 times trailing 12-month earnings, just off a 5-year low. Nvidia reports fiscal 2027 second-quarter (ended July 27) earnings on Wednesday, Aug. 26. Is now the time to buy?
Image source: Nvidia.
Why Nvidia is still on top The results speak for themselves. Nvidia continues to dominate AI chips and infrastructure, and its growing revenue at a pace more akin to a young upstart. Revenue rose 85% year over year in the first quarter, topping guidance and expectations. The company is highly profitable, and it tends to beat on earnings.
Nvidia sits at the center of AI development, which is growing by leaps and bounds, and it's one of the main beneficiaries of AI spending from hyperscalers like Amazon, Alphabet, and Microsoft. These companies are expected to invest about $1 trillion globally in 2026 alone, according to Goldman Sachs.
Nvidia has done a fantastic job of constructing a long-term moat for its products, keeping the heavy hitters in its ecosystem. It's a lot more than chips these days, with complete AI development systems, including its CUDA programming platform and AI supercomputers that bundle chips into powerful compute units. This creates high barriers to entry for competitors.
It's constantly upping its game, launching ever-more powerful chips and platforms, such as the new Vera Rubin architecture, which is starting to ship. Most recently, Nvidia announced a deal with several financiers, including Goldman Sachs and Blackstone, to build fully functional data factories to rent out to clients, and it's providing funding for OpenAI to lease a data center in Ohio for 20 years.
Why is Nvidia stock cheap? While a P/E ratio of 33.3 isn't objectively cheap, it's cheap comparatively for Nvidia stock, and it's cheap for a company reporting such high growth. However, on a price-to-sales basis, it's fairly expensive, trading at 21 times trailing 12-month sales.
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The stakes for Nvidia are also higher right now, which is what the market is concerned about. AI is growing rapidly, but it's also changing rapidly. While AI spend is expected to grow, dozens of disruptors are rolling out new and improved platforms that may be cheaper to run. What seems like a sure bet right now could look different a year from now.
Nvidia has been able to anticipate trends and pivot thus far, and it's still a great stock to own. However, it may not jump after earnings, and investors should only buy with an eye on the long term. I also wouldn't take a huge position at this point.
Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Blackstone, Goldman Sachs Group, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
NVIDIA čeká na výsledky hospodaření po uzavření trhu 26. srpna s konzervativním výhledem na výnosy 91 miliard USD plus minus 2 % a silnou poptávkou po AI čipech. Firma zároveň oznámila zpětný odkup za dalších 80 miliard USD a zvýšila čtvrtletní dividendu z 1 centu na 25 centů.
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NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) heads into its Aug. 26 FY Q2 2027 report with fundamentals, capital return and a demand backdrop that make it one of the cleanest large-cap AI setups in the market. This is a compounder with a catalyst.
Three Reasons The Setup Is Clean 1. Guidance is conservative, and the beat streak is intact: Management guided Q2 revenue to $91 billion plus or minus 2% with non-GAAP gross margin of 75%, and that guide excludes any Data Center compute revenue from China. NVIDIA has beaten EPS estimates by 5.42%, 6.58%, 4.84%, and 3.96% across the last four quarters. Polymarket implies a 0.953 probability of another beat on Aug. 26.
2. Demand visibility is unprecedented: Jensen Huang said “demand has gone parabolic” and NVIDIA reiterated “full confidence in the $1 trillion in Blackwell and Rubin revenue we foresee from 2025 through calendar 2027.” Supply-related commitments now sit at $119 billion. That is booked backlog.
3. Capital return has become material: The board authorized an additional $80 billion buyback on top of $38.5 billion remaining, and NVIDIA raised the quarterly dividend from 1 cent to 25 cents. Q1 free cash flow was $48.5 billion. Retirement accounts want that combination.
Head-To-Head Beat The obvious alternatives are Advanced Micro Devices (NASDAQ:AMD) and Broadcom (NASDAQ:AVGO). NVIDIA’s Data Center segment alone printed $75.2 billion in a single quarter, up 92% year over year, with Data Center Networking up 199%. AMD’s data center franchise is a fraction of that scale. Broadcom is a real AI ASIC winner, but it trades at a higher earnings multiple than NVIDIA’s P/E of 44 while growing slower than NVIDIA’s 85.2% Q1 revenue growth. You are paying up for less growth.
One Risk, Dismissed China. NVIDIA shipped zero H20 units to China in Q1, still beat, and still guided to $91 billion for Q2 with China excluded. If export restrictions were a thesis breaker, the numbers would already show it. They do not. Still, the setup into the Aug. 26 after-close report favors continued execution against a conservative guide.
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Alibaba uvedla, že její starší GPU Nvidia, včetně A100 z roku 2020 a V100 z roku 2018, stále běží na plnou kapacitu v AI infrastruktuře. CFO Toby Xu řekl, že AI aktiva mají po zhruba tříleté návratnosti generovat velmi pozitivní a robustní peněžní tok.
One of the most revealing comments from Alibaba Group Holding Ltd.’s (NYSE:BABA) (OTC:BABAF) fiscal first quarter earnings call wasn’t about revenue or artificial intelligence demand.
Instead, it was about the staying power of Nvidia Corp.‘s (NASDAQ:NVDA) older AI chips, with management saying GPUs purchased as far back as 2018 are still operating at full capacity across its AI infrastructure.
Alibaba: Older Nvidia GPUs Are Still Fully UtilizedDiscussing the economics of the company’s AI investments, Chief Financial Officer Toby Xu said Alibaba expects its AI assets to generate “very positive and robust cash flow” after a three-year payback period.
To illustrate the point, Xu cited the company’s existing GPU fleet, saying “an A100 purchased in 2020 or a V100 purchased in 2018 even today are still running at full capacity.”
The comment offers a rare glimpse into the useful life of AI accelerators inside one of the world’s largest cloud providers. While much of the industry’s attention has centered on the rapid rollout of newer chips, Alibaba indicated that older hardware continues to play a meaningful role in serving AI workloads.
AI Boom Fuels ConcernsRapid GPU turnover has fueled fears that today’s cutting-edge accelerators could become obsolete within just a few years.
Alibaba’s experience suggests otherwise. Rather than retiring older GPUs as newer chips arrive, the company says its existing hardware remains fully utilized years after deployment — and, per Xu, continues to generate cash flow well past its roughly three-year payback period.
Alibaba didn’t disclose what share of its AI workload still runs on V100s or A100s. But continued full utilization of both generations suggests demand has been strong enough to absorb legacy and new hardware alike.
What Investors Should Watch NextAlibaba’s remarks may carry implications beyond its own cloud business. If sustained utilization of older accelerators holds up across other large-scale deployments, it would ease concerns that rapid chip advances are quickly eroding the value of existing GPU fleets.
Investors tracking Nvidia and the broader AI infrastructure trade should watch upcoming hyperscaler earnings for similar disclosures. Confirmation from other cloud providers would reinforce the case that AI demand is strong enough to extend hardware’s economic life rather than render it obsolete overnight.
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Nvidia plánuje do konce roku začít dodávat malé objemy čipu pro AI pro čínské zákazníky. Čip má splňovat americká exportní omezení, ale schválení Pekingu je nejisté.
Nvidia (NVDA.O) plans to start shipping small volumes of an AI chip designed for Chinese customers by year-end, The Information reported on Thursday, citing two employees.
Several Chinese customers have already ordered the chip, a version of Nvidia's language processing unit, which uses technology licensed from Groq and works alongside Nvidia's graphics processors to speed up AI chatbot responses, the report said.
The chip complies with U.S. export controls, The Information reported, though it remains unclear whether Beijing will approve sales.
Nvidia did not immediately respond to a Reuters request for comment. Reuters could not independently verify the report.
While the chip giant dominates the market for training AI systems, it faces much more competition in the inference market. Several major Chinese firms, including AI heavyweights such as Baidu (9888.HK), already produce their own inference chips.
Reuters reported in March that Nvidia was preparing a China-compatible version of AI chips, as it sought to compete in the fast-growing market for AI inference.
Nvidia má ve středu 26. srpna zveřejnit výsledky hospodaření za fiskální 2. čtvrtletí a obchodníci sledují hlavně býčí NVDU i medvědí NVDD. Morningstar čeká další beat-and-raise a aktualizaci k prodejům do Číny.
Traders aren’t wrong in feeling as though second-quarter earnings season is over. However, there’s at least one big report left to absorb. Nvidia (NVDA) is slated to deliver its fiscal second-quarter update on Wednesday, August 26.
Earnings reports are often the ideal times for tactical traders to consider leveraged and inverse ETFs, indicating that the Direxion Daily NVDA Bull 2X Shares (NVDU) and the Direxion Daily NVDA Bear 1X Shares (NVDD) could soon have their moments in the sun. The two Direxion ETFs turn three years old next month.
NVDU attempts to deliver 200% of the daily performance of the bellwether semiconductor stock while the bearish NVDD seeks returns corresponding with the daily inverse performance of Nvidia. Given Nvidia’s knack for beating estimates and raising guidance, it’s not a stretch to assume traders will be focusing on the bullish NVDU.
“We’re looking for another beat-and-raise quarter, given the strong capex trends among hyperscalers and enterprises,” noted Morningstar analyst Brian Colello. “Nvidia should generate well over $300 billion of data center revenue in calendar 2026, which is effectively fiscal 2027, and perhaps over $500 billion in fiscal 2028. We expect to hear an update regarding sales (or non-sales) into China.”
Both ETFs Could Be in Focus
Some traders and investors have bullish biases, but that shouldn’t get in the way of acknowledging the bearish NVDD as a post-earnings play on Nvidia. In fact, the case for that inverse ETF may be heightened at a time when more market participants express concern about artificial intelligence (AI) financing plans.
“Perhaps the most polarizing issue has been Nvidia’s financing and backstopping of certain partners, including its recently announced $500 billion mobilization of large financial asset managers to invest in artificial intelligence,” added Colello. “We trust that Nvidia will lay out its case for why it is arranging such partnerships and/or financing certain firms.”
If Nvidia successfully allays those concerns, that could be a catalyst for the stock and the bullish NVDU, potentially providing icing on the cake for what some experts view as an undervalued stock.
“With its 4-star rating, we believe Nvidia stock is moderately undervalued compared with our long-term fair value estimate of $280 per share,” concluded Colello. “Our fair value estimate and Nvidia’s stock price will be driven by its prospects in the data center and AI GPUs, for better or worse. Nvidia’s DC business has achieved exponential growth already, rising from $3 billion in fiscal 2020 to $194 billion in fiscal 2026, and we estimate it will be $361 billion in fiscal 2027, representing 86% annual growth.”
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Nvidia před výsledky zaostává za širším polovodičovým indexem, ale analytici dál čekají silné překonání odhadů a zlepšení výhledu. Stifel má cíl 282 USD, Oppenheimer 265 USD.
Nvidia NVDA shares were down 0.3% at $216.74 in early Thursday trading, extending a period of relative underperformance.
The stock has risen 17% this year through Wednesday's close, well behind the 66% gain in the PHLX Semiconductor Index over the same period.
Nvidia's earnings report next Wednesday could help narrow that gap, with several analysts expecting the chipmaker to beat market expectations for the July quarter and raise its outlook for the current quarter.
Stifel analyst Ruben Roy reiterated a $282 price target on Nvidia in a research note this week.
Roy expects Nvidia to beat consensus expectations of adjusted earnings of $2.09 a share on revenue of $91.96 billion.
His price target is based on a price-to-earnings multiple of 22 times his forecast for Nvidia's fiscal 2028 earnings.
Oppenheimer also reiterated an Outperform rating and $265 price target ahead of next week's earnings report.
The firm expects upside to Nvidia's second-quarter results and third-quarter outlook, driven by Blackwell Ultra.
Its next-generation VR200 is expected to ramp during the current quarter, supporting momentum in the second half of the year.
Oppenheimer projects more than $1 trillion in revenue from GB200, GB300 and VR200 between 2025 and 2027.
The firm said Nvidia continues to maintain a performance-per-watt lead through an annual cadence of AI accelerator introductions.
Oppenheimer also highlighted tokens per minute and cost per token as important measures of AI performance, saying Nvidia remains best in class in training and inference token generation and cost.
The firm's bullish view also rests on Nvidia's full-stack AI platform, which includes GPUs, networking switches, NICs, InfiniBand, Ethernet, NVLink and CUDA.
Analysts at Morningstar also said they are looking for another "beat-and-raise" quarter from Nvidia, pointing to strong capital expenditure trends among hyperscalers and enterprises.
Morningstar has a $280 fair value estimate on Nvidia.
Financing concerns remain in focusNvidia's relative underperformance this year has been driven in part by concerns surrounding AI spending, the company's financing arrangements and increasing competition across the semiconductor industry.
Analysts at Cantor pushed back against concerns that Nvidia is effectively buying revenue through its financial arrangements.
The firm reiterated its Buy rating and said Nvidia's latest agreement is a "clear signal that the current AI investment cycle will be elongated and durable."
"We view this less as circular and more facilitating the coming AI buildout while at the same time creating additional competitive moats that will continue to enable NVDA to remain THE AI leader," the analysts wrote.
Nvidia's substantial cash generation has also allowed it to invest across the AI ecosystem while returning capital to shareholders.
The company said in May that it was increasing its quarterly dividend to 25 cents a share from a penny and announced a new $80 billion stock buyback plan.
Nvidia also pledged "to return roughly 50% of free cash flow to shareholders this year."
Next week's earnings report will provide a key test of Nvidia's ability to convert continued AI infrastructure investment into revenue growth while addressing investor concerns over financing, competition and the sustainability of spending across the sector.
Allied Private Wealth LLC ve druhém čtvrtletí nově nakoupila 22 476 akcií NVIDIA za zhruba 4,588 mil. USD. Podíl tvoří 2,9 % portfolia a je šestou největší pozicí fondu.
Allied Private Wealth LLC acquired a new stake in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 22,476 shares of the computer hardware maker’s stock, valued at approximately $4,588,000. NVIDIA comprises approximately 2.9% of Allied Private Wealth LLC’s holdings, making the stock its 6th biggest holding.
Several other hedge funds have also recently made changes to their positions in the company. Lifetime Wealth Management P.C. acquired a new position in shares of NVIDIA in the fourth quarter valued at about $26,000. Longview Financial Advisors Inc. acquired a new stake in shares of NVIDIA during the first quarter worth about $27,000. Longfellow Investment Management Co. LLC lifted its holdings in shares of NVIDIA by 47.9% during the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock worth $33,000 after purchasing an additional 67 shares during the period. Phillip James Consulting Co. purchased a new stake in NVIDIA in the first quarter valued at approximately $40,000. Finally, Spurstone Advisory Services LLC purchased a new stake in NVIDIA in the second quarter valued at approximately $40,000. 65.27% of the stock is owned by institutional investors and hedge funds.
Wall Street Analyst Weigh In
A number of equities analysts have issued reports on the stock. Jefferies Financial Group reissued a “buy” rating and set a $300.00 price target (up from $275.00) on shares of NVIDIA in a research report on Thursday, May 21st. Bank of America reaffirmed a “buy” rating and issued a $350.00 price objective (up from $320.00) on shares of NVIDIA in a report on Thursday, May 21st. Craig Hallum increased their price objective on shares of NVIDIA from $245.00 to $275.00 and gave the stock a “buy” rating in a research note on Thursday, May 21st. Tigress Financial reissued a “strong-buy” rating and set a $425.00 target price (up from $360.00) on shares of NVIDIA in a report on Wednesday, May 27th. Finally, Itau BBA Securities decreased their target price on shares of NVIDIA from $256.00 to $218.00 in a research report on Wednesday, June 24th. Three equities research analysts have rated the stock with a Strong Buy rating, forty-nine have given a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Buy” and a consensus price target of $305.94.
View Our Latest Research Report on NVDA
Insider Buying and Selling at NVIDIA
In other NVIDIA news, Director Mark A. Stevens sold 885,000 shares of NVIDIA stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $210.17, for a total value of $186,000,450.00. Following the completion of the transaction, the director owned 5,207,271 shares of the company’s stock, valued at approximately $1,094,412,146.07. The trade was a 14.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Stephen C. Neal sold 15,500 shares of the company’s stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the completion of the transaction, the director owned 116,135 shares of the company’s stock, valued at approximately $25,053,803.55. This trade represents a 11.77% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 1,901,125 shares of company stock valued at $410,583,015. Corporate insiders own 3.94% of the company’s stock.
Key Headlines Impacting NVIDIA
Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: Potential China revenue boost: Reports indicate small shipments of NVIDIA’s H200 processors have reached mainland China, with ByteDance and Tencent reportedly receiving units. However, Beijing may restrict how the chips are used. Nvidia H200 chips reach China in small shipments
Positive Sentiment: Analyst support remains strong: Stifel reaffirmed a Buy rating and a $282 target ahead of NVIDIA’s August 26 earnings report, while Bank of America reportedly sees substantial upside based on the company’s valuation and free-cash-flow potential. Analyst updates Nvidia stock price ahead of earnings
Positive Sentiment: Supply-chain checks support the AI buildout: Stifel pointed to signals from Foxconn and Super Micro as evidence that demand for NVIDIA systems remains healthy heading into the company’s results. NVIDIA is also expanding its role by connecting Nordic GPU customers with available data-center capacity. What Foxconn and Super Micro are telling us about the AI boom
Neutral Sentiment: Mercor investment under consideration: NVIDIA is reportedly discussing an investment in AI data-labeling provider Mercor at a valuation of about $20 billion. The deal could strengthen NVIDIA’s broader AI ecosystem, but its size and terms remain unknown. Nvidia weighs investment in Mercor
Negative Sentiment: China uncertainty remains a key overhang: U.S. efforts to close loopholes allowing Chinese firms to access NVIDIA computing power through overseas data centers could limit sales, while any H200 shipments appear restricted and relatively small. U.S. export controls and Nvidia chips
Negative Sentiment: The earnings bar is high: Investors are looking beyond a routine quarterly beat and want higher forward guidance, sustained data-center growth, strong Blackwell demand, and healthy margins. This creates volatility ahead of the August 26 report. NVIDIA earnings expectations and AI demand
Negative Sentiment: Competition and concentration risks are intensifying: Investors are questioning whether custom chips, rivals such as AMD and Broadcom, and newer AI-chip startups could eventually pressure NVIDIA’s dominant position. Michael Burry discusses competition for Nvidia
NVIDIA Price Performance
Shares of NASDAQ NVDA opened at $217.56 on Thursday. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85. The stock has a market capitalization of $5.26 trillion, a price-to-earnings ratio of 33.32, a PEG ratio of 0.44 and a beta of 2.23. The firm’s 50 day simple moving average is $207.04 and its 200-day simple moving average is $199.23. NVIDIA Corporation has a 12 month low of $164.07 and a 12 month high of $236.54.
NVIDIA (NASDAQ:NVDA – Get Free Report) last announced its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.76 by $0.11. The firm had revenue of $81.61 billion for the quarter, compared to the consensus estimate of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The firm’s quarterly revenue was up 85.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.81 earnings per share. Analysts expect that NVIDIA Corporation will post 8.59 EPS for the current year.
NVIDIA announced that its Board of Directors has approved a stock repurchase plan on Wednesday, May 20th that allows the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization allows the computer hardware maker to repurchase up to 1.5% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s management believes its shares are undervalued.
NVIDIA Company Profile
(Free Report)
NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.
The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.
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Nvidia investuje 105 miliard USD do datového centra v Ohiu pro OpenAI, což vyvolává obavy z kruhového financování. Kritici říkají, že tím podporuje poptávku po vlastních čipech.
Nvidia (NVDA -0.99%) has been making some interesting investments lately, a few of which should be concerning for investors, if not outright red flags.
The AI chip giant just announced it was making a $105 billion investment to support the development of an enormous data center in Ohio that will be leased by OpenAI, the company behind ChatGPT.
OpenAI is a major customer of Nvidia, so the deal will presumably help it continue to purchase Nvidia's expensive graphics processing units and systems.
Image source: Getty Images.
Previously, Nvidia invested billions of dollars in Anthropic, which owns the Claude chatbot, and in the cloud-computing firm CoreWeave. It has also partnered with investment firms Apollo and Blackstone to arrange hundreds of billions in financing for new data centers.
Some observers say Nvidia is engaging in what's known as circular financing. That is, it is investing in AI firms and data centers so that those companies will build more AI infrastructure that requires Nvidia's powerful chips. So, in a way, Nvidia is providing financing for other companies to buy its products, and its own revenue is boosted by capital it has deployed.
Circular financing deals took a toll on hardware firms during the dot-com crash The practice is reminiscent of what occurred during the dot-com boom of the late 1990s, when Cisco Systems, which made the networking hardware that was the backbone for much of the internet, arranged similar deals for its customers. That inflated the company's revenue. Other internet firms made similar deals.
When the internet bubble burst, Cisco's share price fell precipitously from a 2000 peak of around $77 to around just $12 in late 2001. Cisco shares didn't recover fully from that loss until 2025.
Of course, the internet infrastructure built during the dot-com bubble proved highly productive for the U.S. economy, and it's likely that the data centers financed by Nvidia will too. But that will be of little consolation to Nvidia's shareholders should the market decide that the company's revenue and profits are not organic, but self-financed.
Also, if Nvidia invests in customers that later fail or can no longer pay for its products, it will lose both those revenue streams and its investments, which would damage its finances.
All that said, Nvidia is an enormously successful company by almost every metric. In its fiscal 2027 first quarter, which ended April 26, its revenue climbed 85% year over year. It more than doubled its annual revenue in fiscal 2025 and fiscal 2024, and grew its top line by 65% in fiscal 2026. Earnings per share soared 215% last quarter and 147% last year.
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The company's chips are so powerful that the U.S. government restricts their sales to companies in certain nations.
So Nvidia looks strong at the moment, but the vendor financing it's increasingly engaging in is something for investors to watch closely.
SpaceX ve 2. čtvrtletí investovala 18,37 miliardy USD do capex, z toho 15,8 miliardy USD šlo na rozšiřování podnikání v oblasti AI. Nejvíc peněz mířilo do GPU Nvidia a nových datových center.
In the second quarter of 2026, SpaceX's (SPCX -2.57%) revenue surged 92% year over year to $7.8 billion, and it narrowed its net loss from $1.01 billion to $541 million. However, its total capex surged more than sixfold year over year, from $2.83 billion to $18.37 billion. It allocated $15.8 billion of that capex to expanding its AI business. Let's see where all that money went.
Image source: Getty Images.
What AI investments did SpaceX make? SpaceX originally operated two main businesses: its Starlink satellite internet services and its rocket launch services. But in Feb. 2026, it acquired xAI -- which owns Grok, X, and its other AI assets -- in an all-stock transaction to form its new AI business. It also acquired the AI start-up Cursor earlier this month. Elon Musk believes its AI revenue will jump from $3.5 billion in 2025 to $700-$750 billion in 2030.
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To sow the seeds for that expansion, SpaceX spent most of its second-quarter capex on Nvidia's (NVDA -0.99%) data center GPUs and other AI accelerators. The rest was used to deploy, acquire, and build more high-power data centers to increase its active capacity from 1.4 GW today to its target of 10 GW by next year.
That would give it a lot more bandwidth to handle its multi-billion-dollar compute hosting contracts with external enterprise clients. However, the expansion of that unprofitable AI business could offset Starlink's profits and keep its bottom line in the red.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
Nvidia podle zdrojů propojuje firmy s GPU a provozovatele datových center v severských zemích, aby urychlila výstavbu AI infrastruktury. V regionu už vznikají gigawatty kapacity a uzavírají se nové dohody.
Nvidia is playing matchmaker, trying to connect companies with its graphics processing units to data-center operators that have the capacity to deploy them in the Nordics, sources have told CNBC.
While Nvidia has established an effective monopoly over the most powerful AI chips, it has worked to exert greater influence across the AI ecosystem as the race to build infrastructure accelerates. That reach extends through its software stack, relationships with governments and direct investments in other companies.
The chip giant has also sought a role in AI infrastructure deals. Two sources familiar with the matter have told CNBC that Nvidia has offered to introduce companies with data centers in the Nordics, an increasingly sought-after AI infrastructure region, to firms with its GPUs that are in the market for capacity.
The sources asked to remain anonymous when discussing private information.
How Nvidia is playing matchmaker for AI infrastructureTheir accounts add context to remarks by Nvidia Chief Financial Officer Colette Kress, who said in June that Nvidia had "certainly engaged" in "matchmaking" with companies. "How can we help them obtain land, power, shell?" she added. "How do we help them in terms of standing up the compute as fast as possible for what they need to do?"
Gigawatts of data-center capacity are due to be built in the Nordics in the coming years, thanks to access to power and abundant land. Neoclouds and hyperscalers including Nebius and Microsoft have inked deals in the region in 2026.
One source said that Nvidia had reached out to a data-center company, sounding out potential offtakers: customers that commit to buying or leasing computing capacity.
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This is part of what Nvidia sees as its "value proposition to GPU customers," the source said, adding that the chip giant "often" didn't name the companies on whose behalf it was reaching out.
The other source told CNBC that Nvidia had also made introductions between a company building AI infrastructure and those with GPUs in the U.S. and Asia. Nvidia is "helping make sure people who have money and demand for GPUs also have data center space," they added.
Nvidia did not respond to a request for comment from CNBC.
The company typically sells its chips to original equipment manufacturers, or OEMs, which then build them into racks and servers before selling them on. But it often has relationships with the companies buying the end product.
Why the Nordics are attracting AI data centersAccess to power and land attracts builders to the Nordics, while the cooler climate is appealing as data centers need to keep chips from overheating.
Numerous multi-hundred-megawatt facilities have been announced in Finland and Norway in recent months.
Pure DC said in July it would invest 1.5 billion euros ($1.74 billion) to build a 110 MW campus in Finland, with the potential to scale beyond 550 MW. Arcem has plans for a site with up to 500 MW of capacity. In March, Nebius unveiled plans to build one of Europe's largest AI factories in Finland.
In April, Microsoft announced it would take up extra computing capacity at an Nscale site in Norway.
There is currently 2.3 GW of data center capacity queuing for future connections to the power grid, according to Statnett, the Norwegian grid operator.
Oslo, Stockholm and Helsinki are among the top six locations worldwide for future data-center development potential, according to a report this month from real estate company Savills.
"For AI-driven data centre growth, the Nordics offer one of the clearest delivery propositions globally," Rupert Duckworth, associate director, EMEA Data Centre Advisory at Savills, said in the report.
"The region has increasingly become a focus for large-scale, AI-oriented development – with significant new campuses now progressing."
Levnější AI může být pro Nvidia nakonec pozitivní: s rostoucím využitím by mohla dál růst poptávka po GPU a další infrastruktuře. OpenAI snížila ceny některých svých frontier modelů až o 80 %.
For much of the AI boom, investors believed one thing: expensive AI meant booming demand for Nvidia Corp‘s (NASDAQ:NVDA) chips. Now the opposite may be becoming true.
As OpenAI cuts prices, Chinese challengers like DeepSeek and Kimi introduce lower-cost models, and enterprises gain access to cheaper AI than ever before, the economics of artificial intelligence are changing rapidly. While that may sound like bad news for companies building AI models, it could ultimately strengthen the investment case for Nvidia.
The AI Price War Is Driving Costs LowerAI usage has become dramatically cheaper over the past few months.
SoFi Technologies, Inc. (NASDAQ:SOFI) Chief Market Strategist Liz Thomas noted on X that average AI token costs have fallen from $2.07 per million tokens in late May to $1.02, citing OpenAI’s price reductions and the growing availability of lower-cost open-source models from companies including Kimi and DeepSeek.
The broader trend is becoming increasingly difficult to ignore.
OpenAI recently reduced prices for some of its frontier models by as much as 80%, while Anthropic has also introduced lower-cost offerings as competition intensifies. Chinese AI companies, including DeepSeek and Moonshot AI, have further accelerated the industry’s shift toward cheaper inference.
The competition is no longer just about building the smartest model. It’s increasingly about building the most affordable one.
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Cheaper AI Could Mean More Demand for NvidiaAt first glance, falling prices might appear negative for the AI ecosystem. Lower prices usually imply lower revenue per transaction. But technology markets often behave differently.
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Economists call it the Jevons Paradox—the idea that making a resource cheaper and more efficient often increases total consumption rather than reducing it.
Early evidence suggests AI may already be following that pattern. After OpenAI reduced prices for some of its models, usage surged sharply. Business Insider reported that usage of GPT-5.6 Luna increased roughly fourteenfold, while Terra usage rose fivefold, with revenue also increasing despite the lower prices.
For Nvidia, that’s an important distinction.
The company doesn’t earn money from the price customers pay per token. It benefits when AI developers, hyperscalers and enterprises deploy more computing infrastructure to serve growing demand.
If cheaper AI encourages businesses to automate more workflows, launch more AI agents and process more inference requests, the total amount of computing required could continue rising—even if each individual AI query costs less.
The AI Winners May Shift, but Nvidia Still Stands to BenefitThe AI price war is undoubtedly putting pressure on model developers.
OpenAI, Anthropic and others must balance lower pricing with the enormous cost of building and operating frontier AI models. At the same time, open-source alternatives are forcing proprietary model providers to compete more aggressively on both performance and economics.
Hardware companies occupy a different position in that ecosystem.
As long as total AI workloads continue expanding, demand for GPUs, networking equipment and AI infrastructure can grow even if software becomes increasingly commoditized. The Wall Street Journal recently argued that the rise of cheaper open-weight AI models is unlikely to reduce demand for the industry’s “picks and shovels,” because broader adoption ultimately requires more computing capacity.
That doesn’t mean Nvidia is insulated from every competitive threat. Efficiency gains, custom AI chips and evolving model architectures remain important variables.
But falling AI prices alone are not necessarily bearish.
What Nvidia Investors Should Watch NextThe more important metric may no longer be the price of AI, but its usage. If lower costs encourage enterprises to embed AI into more products, automate more workflows and serve millions of additional users, infrastructure demand could continue climbing even as token prices fall.
For Nvidia investors, the next phase of the AI boom may be driven less by increasingly expensive models—and more by making AI affordable enough to be used almost everywhere.
Japonsko vytváří 44členné konsorcium Noetra, které má s podporou Nvidie přenést AI do továren. Vláda na AI pro výrobu a průmysl vyčlenila 6,1 miliardy USD.
Artificial intelligence (AI) is moving beyond just cloud computing for software. It is moving into the real world and onto the factory floor.
One example of this is Nvidia's (NVDA -0.16%) recent partnership in Japan. The country is a leader in advanced manufacturing techniques and wants to maintain its lead in the age of AI and robotics. Japan is creating a 44-company consortium of industrial giants, called Noetra, to bring AI onto the factory floor, powered by Nvidia.
Here's the skinny on Nvidia's deal with Japan, and what it could mean for the stock going forward.
Image source: Nvidia.
Robotics as the next stage of AI development The collection of companies operating under the Noetra umbrella is part of the Japanese government's drive to remain relevant in the age of AI. Specifically, it aims to dominate advanced manufacturing techniques while remaining relatively independent of Chinese- and United States-based AI models.
To spark this growth, the Japanese government is providing $6.1 billion in subsidies for AI across manufacturing and industrial use cases. Nvidia was chosen as the compute backbone for the investment and is providing its advanced GPU clusters to power these innovations.
It is unclear exactly how much the Japanese government and Noetra group will spend on Nvidia chips, but it could be in the tens of billions over many years. Sovereign AI investments are a growing theme in places like Japan, South Korea, and the Middle East, as a way to diversify away from the leading private companies from the U.S. and China. Nvidia has positioned itself to benefit from both use cases.
What does this mean for Nvidia? Japan and its industrial giants are poised to invest billions in AI infrastructure in the years ahead, with Nvidia powering it. While this will not be a negative for the company, it is actually small compared to the overall revenue.
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In the last 12 months, Nvidia's revenue was $253 billion. It had $37.4 billion in revenue from AI cloud and industrial use cases last quarter alone, excluding the traditional hyperscaler cloud computing business. This is up from $21.5 billion in revenue from the same quarter a year prior.
Noetra is a part of this growth segment for Nvidia, but still a small part of it. The big question for Nvidia and its price-to-earnings ratio (P/E) of 35 is whether it can maintain its aggressive growth rate at such a massive scale, not whether Japan decides to subsidize less than $10 billion in AI compute capacity for factories.
Čínští výrobci robotů na konferenci v Pekingu ukázali humanoidy pro třídění zásilek, balení telefonů i domácí práce, aby zdůraznili přechod k reálnému komerčnímu využití. Unitree při burzovním debutu v Šanghaji vyskočila téměř šestinásobně.
Chinese robot makers showed off humanoids sorting parcels, packing mobile phones and helping with household chores at a Beijing conference on Wednesday, seeking to demonstrate a shift from crowd-pleasing displays to broader commercial use.
More than 300 mostly domestic companies are attending the World Robot Conference, which runs through Sunday, displaying over 2,000 exhibits and launching more than 150 products, according to organizers.
The event comes amid a surge of investor interest in humanoids, a potential new source of industrial growth for China and an arena of technological competition with the United States.
Humanoid robots produced by UB Tech sort small parcels at during the 2026 World Robot Conference in Beijing on Wednesday. AFP via Getty Images Shares in Unitree, China’s best-known humanoid robot maker, soared nearly sixfold in their Shanghai trading debut on Wednesday, after Unitree’s initial public offering was more than 8,000 times oversubscribed by retail investors.
Following Unitree’s IPO, startup Lumos Robotics and the robotics division of China’s largest auto exporter Chery Automobile told Reuters they were also considering stock market listings.
Nvidia executive visits Madison Huang, a senior Nvidia executive and daughter of the US chipmaker’s CEO Jensen Huang, made an unannounced visit to the event, watching robots perform flying kicks and dance routines before stopping at a companion-robot booth to ask about its sensors.
Huang, who drew onlookers much as her father has on past visits to Beijing, oversees marketing for Nvidia’s Omniverse and robotics platforms, software used to simulate and test physical AI — systems that can perceive and act in the real world.
Despite geopolitical tensions and US restrictions on exports of Nvidia’s most advanced AI chips to China, her visit highlighted foreign suppliers’ role in China’s push to develop intelligent and autonomous robots for its factories, warehouses and homes.
Madison Huang, a senior Nvidia executive and daughter of CEO Jensen Huang, made an unannounced visit to the event. REUTERS RealSense, a US-based maker of vision systems for robots and one of the few foreign exhibitors at the conference, said it was expanding manufacturing capacity and building sales partnerships in China as the sector develops.
“We see China as a very strategic market for us,” said Mike Nielsen, the company’s chief marketing officer.
“It is becoming the center of humanoid technology.”
A staff member dressed up in a costume poses with VBot robots on a dog leash. REUTERS Robotics an ‘important force’ At the opening ceremony, Xin Guobin, vice minister of industry and information technology, pledged support, saying robotics had become “an important force” in China’s economic and social development, state-backed financial outlet Cailianshe reported.
Robots are increasingly being tested in logistics, manufacturing and service settings, though many deployments remain at the pilot or early commercial stage.
“Our most common application scenarios are in logistics,” said Zhang Dapeng, assistant vice president at industrial humanoid robot firm Leju, as his company showed robots moving and sorting crates and small objects.
Exhibitors watch a robot play table tennis at a booth of Unitree. Shares soared in Unitree’s trading debut. AP Photo/Andy Wong
A robot demonstrates jumping ability. ZUMAPRESS.com Zhang said European factories and Chinese auto plants were using Leju robots to move boxes and load components.
At Robotera’s booth, a humanoid torso on a wheeled tripod base sorted parcels. A company official said the robot had been deployed at China Post logistics sites since last year using Robotera’s AI software.
A sales representative said Robotera had more than 100 parcel-sorting robots in 15 warehouses nationwide.
From demonstrations to deployment Nearby, DexForce demonstrated humanoid robots packing mobile phones into boxes on an assembly line.
The robots have been deployed since early this year at a Lens Technology factory, a Chinese supplier of touchscreens and other components to Apple and Huawei, said DexForce official Nicole Yang.
Yang said the machines had millimeter-level operating accuracy and could detect and correct errors, such as a phone being placed at an angle.
A robot demonstrates its ability to do chores. Xinhua/Shutterstock
People take pictures of Casbot humanoid robots playing the guitar. AFP via Getty Images “In theory, human beings are the most dexterous,” Yang said. “But many workers in factories are unwilling to do this kind of boring work.”
Lumos Robotics is already using robots to automate the assembly of key modules at its factory and plans to introduce them into final assembly, founder and Chief Executive Yu Chao said.
“This year, everyone is more focused on how robots can work in real-world scenarios,” he said.
China is beomcing the “center of humanoid technology,” said one attendee. ZUMAPRESS.com X Square Robot, known for its focus on household chores, is looking to move beyond short home-service trials.
Its longest deployment has lasted one month, and it is testing robots in hundreds of homes this year before gradual commercialisation next year, said co-founder and Chief Executive Yang Qian.
Commercial test Global humanoid shipments rose 272% in the first half of 2026 to about 19,000 units, with Chinese companies accounting for 97% of the total, according to Morgan Stanley, citing Smart Analytics Global data.
But about 65% of shipments still went to entertainment, education, research and data collection rather than productive commercial work, Morgan Stanley said.
A hyper-realistic silicon face for robots is displayed at the Magic Cube Robot booth. REUTERS
Humanoid robots from Unitree fight each other as they perform kickboxing. Getty Images RealSense’s Nielsen said the companies most likely to succeed would be those able to put robots into active production environments, adding that China’s rapid development cycle was pushing suppliers to move more quickly.
“The product cycles for robots are more like six to eight months, not three to four years,” he said.
Gradient Investments LLC raised its position in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 29.5% in the 2nd quarter, according to its most recent filing with the SEC. The firm owned 960,223 shares of the computer hardware maker’s stock after acquiring an additional 218,677 shares during the period. NVIDIA makes up 2.7% of Gradient Investments LLC’s investment portfolio, making the stock its 2nd largest holding. Gradient Investments LLC’s holdings in NVIDIA were worth $192,131,000 at the end of the most recent quarter.
A number of other institutional investors and hedge funds have also made changes to their positions in the company. Diversified Enterprises LLC increased its holdings in shares of NVIDIA by 44.2% in the 4th quarter. Diversified Enterprises LLC now owns 127,604 shares of the computer hardware maker’s stock worth $23,798,000 after acquiring an additional 39,129 shares during the period. Altshuler Shaham Ltd boosted its stake in NVIDIA by 6,451.9% during the 1st quarter. Altshuler Shaham Ltd now owns 637,236 shares of the computer hardware maker’s stock valued at $111,134,000 after purchasing an additional 627,510 shares during the period. ASR Vermogensbeheer N.V. boosted its stake in NVIDIA by 1.8% during the 4th quarter. ASR Vermogensbeheer N.V. now owns 3,169,377 shares of the computer hardware maker’s stock valued at $591,086,000 after purchasing an additional 54,877 shares during the period. Storen Legacy Partners LLC bought a new position in NVIDIA in the 4th quarter worth about $1,350,000. Finally, Weaver Capital Management LLC increased its stake in shares of NVIDIA by 5.5% in the fourth quarter. Weaver Capital Management LLC now owns 85,216 shares of the computer hardware maker’s stock valued at $15,893,000 after purchasing an additional 4,439 shares during the period. 65.27% of the stock is currently owned by institutional investors and hedge funds.
Key Stories Impacting NVIDIA Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: Bank of America argued that NVIDIA’s shares offer a compelling valuation relative to free cash flow and could have as much as 55% upside, partly because expanded buybacks may improve shareholder returns. Here’s the case for Nvidia’s stock to climb 55% from here, according to BofA Positive Sentiment: NVIDIA’s agreement to support financing for OpenAI’s Ohio data center could help secure up to 8 gigawatts of future AI-compute capacity. The company is also investing $1.5 billion in SB Energy and is expected to be the campus’s exclusive AI-compute provider, potentially expanding long-term demand for its systems. Nvidia backs financing for OpenAI data center in Ohio Positive Sentiment: Analysts and investors continue to describe NVIDIA as a central “chokepoint” in AI infrastructure. Wall Street’s average price target implies substantial potential upside, while demand for GPUs remains strong even as custom AI chips gain traction. Wall Street Analysts Think Nvidia Could Surge Neutral Sentiment: Investors are focused on NVIDIA’s upcoming earnings and, more importantly, its forward guidance. Strong data-center growth, Blackwell demand, gross margins near 75%, and commentary on next-generation Rubin products will determine whether estimates move higher. Nvidia’s Q2 Preview Negative Sentiment: The Ohio project and NVIDIA’s broader plan to help arrange as much as $500 billion in AI infrastructure financing are raising concerns about circular financing, credit exposure, and whether customers can support the resulting spending. Higher Treasury yields further pressured high-growth technology valuations. Nvidia’s AI moat is shifting from chips to capital Negative Sentiment: Some investors favor Micron because of surging high-bandwidth-memory demand and a lower valuation, while comparisons with AMD and Broadcom highlight intensifying competition from custom AI silicon. NVIDIA’s large Intel investment and divided hedge-fund positioning also add to uncertainty. NVIDIA vs. Micron Insider Activity In other NVIDIA news, Director Stephen C. Neal sold 15,500 shares of the firm’s stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the completion of the sale, the director directly owned 116,135 shares in the company, valued at approximately $25,053,803.55. This trade represents a 11.77% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Mark A. Stevens sold 885,000 shares of NVIDIA stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $210.17, for a total value of $186,000,450.00. Following the transaction, the director directly owned 5,207,271 shares in the company, valued at approximately $1,094,412,146.07. This trade represents a 14.53% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 1,901,125 shares of company stock worth $410,583,015. 3.94% of the stock is owned by corporate insiders. Analysts Set New Price Targets Several brokerages have recently issued reports on NVDA. Royal Bank Of Canada set a $280.00 price objective on NVIDIA in a research report on Thursday, May 21st. Wall Street Zen downgraded NVIDIA from a “strong-buy” rating to a “buy” rating in a research note on Saturday, July 4th. Weiss Ratings reiterated a “buy (b)” rating on shares of NVIDIA in a research report on Wednesday, July 8th. Daiwa Securities Group increased their price target on NVIDIA from $215.00 to $255.00 and gave the stock an “outperform” rating in a research note on Friday, May 22nd. Finally, DA Davidson reissued a “buy” rating and issued a $300.00 price target on shares of NVIDIA in a research note on Monday, June 1st. Three investment analysts have rated the stock with a Strong Buy rating, forty-nine have given a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, NVIDIA presently has a consensus rating of “Buy” and an average price target of $305.94.
Check Out Our Latest Research Report on NVIDIA
NVIDIA Trading Down 2.3% NVIDIA stock opened at $219.74 on Wednesday. NVIDIA Corporation has a 52 week low of $164.07 and a 52 week high of $236.54. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44. The firm has a market capitalization of $5.32 trillion, a price-to-earnings ratio of 33.65, a P/E/G ratio of 0.44 and a beta of 2.23. The company has a 50 day moving average price of $206.70 and a 200 day moving average price of $199.05.
NVIDIA (NASDAQ:NVDA – Get Free Report) last released its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.76 by $0.11. The company had revenue of $81.61 billion during the quarter, compared to analyst estimates of $78.42 billion. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The company’s revenue for the quarter was up 85.2% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.81 earnings per share. Research analysts forecast that NVIDIA Corporation will post 8.79 EPS for the current year.
NVIDIA declared that its Board of Directors has approved a share buyback plan on Wednesday, May 20th that authorizes the company to buyback $80.00 billion in outstanding shares. This buyback authorization authorizes the computer hardware maker to repurchase up to 1.5% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s board believes its stock is undervalued.
About NVIDIA (Free Report)
NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.
The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.
Read More Five stocks we like better than NVIDIA The AI Boom Is Turning This Cable Maker Into a Stock to Watch A Star Investor Just Trimmed Amazon—Here’s What It means Wendy’s Deal Buzz May Give Fast-Food Investors a New Reason to Look Home Depot Analysts See a Path to $375 and Beyond Want to see what other hedge funds are holding NVDA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVIDIA Corporation (NASDAQ:NVDA – Free Report).
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Cardano Risk Management B.V. cut its position in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 4.5% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 7,715,089 shares of the computer hardware maker’s stock after selling 359,349 shares during the period. NVIDIA makes up about 11.9% of Cardano Risk Management B.V.’s portfolio, making the stock its biggest holding. Cardano Risk Management B.V.’s holdings in NVIDIA were worth $1,543,712,000 at the end of the most recent reporting period.
Several other institutional investors have also added to or reduced their stakes in NVDA. Lifetime Wealth Management P.C. bought a new stake in NVIDIA in the fourth quarter worth $26,000. Longview Financial Advisors Inc. purchased a new position in shares of NVIDIA in the 1st quarter worth $27,000. Longfellow Investment Management Co. LLC grew its stake in shares of NVIDIA by 47.9% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock worth $33,000 after buying an additional 67 shares in the last quarter. Phillip James Consulting Co. bought a new stake in shares of NVIDIA in the 1st quarter worth about $40,000. Finally, Spurstone Advisory Services LLC bought a new stake in shares of NVIDIA in the 2nd quarter worth about $40,000. Hedge funds and other institutional investors own 65.27% of the company’s stock.
Insider Transactions at NVIDIA In other NVIDIA news, Director Stephen C. Neal sold 15,500 shares of the business’s stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total value of $3,343,815.00. Following the completion of the sale, the director directly owned 116,135 shares of the company’s stock, valued at $25,053,803.55. The trade was a 11.77% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director John Dabiri sold 625 shares of the company’s stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $214.00, for a total transaction of $133,750.00. Following the completion of the transaction, the director owned 14,163 shares in the company, valued at $3,030,882. This represents a 4.23% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 1,901,125 shares of company stock worth $410,583,015. Insiders own 3.94% of the company’s stock.
NVIDIA News Summary Here are the key news stories impacting NVIDIA this week: Positive Sentiment: Bank of America argued that NVIDIA’s shares offer a compelling valuation relative to free cash flow and could have as much as 55% upside, partly because expanded buybacks may improve shareholder returns. Here’s the case for Nvidia’s stock to climb 55% from here, according to BofA Positive Sentiment: NVIDIA’s agreement to support financing for OpenAI’s Ohio data center could help secure up to 8 gigawatts of future AI-compute capacity. The company is also investing $1.5 billion in SB Energy and is expected to be the campus’s exclusive AI-compute provider, potentially expanding long-term demand for its systems. Nvidia backs financing for OpenAI data center in Ohio Positive Sentiment: Analysts and investors continue to describe NVIDIA as a central “chokepoint” in AI infrastructure. Wall Street’s average price target implies substantial potential upside, while demand for GPUs remains strong even as custom AI chips gain traction. Wall Street Analysts Think Nvidia Could Surge Neutral Sentiment: Investors are focused on NVIDIA’s upcoming earnings and, more importantly, its forward guidance. Strong data-center growth, Blackwell demand, gross margins near 75%, and commentary on next-generation Rubin products will determine whether estimates move higher. Nvidia’s Q2 Preview Negative Sentiment: The Ohio project and NVIDIA’s broader plan to help arrange as much as $500 billion in AI infrastructure financing are raising concerns about circular financing, credit exposure, and whether customers can support the resulting spending. Higher Treasury yields further pressured high-growth technology valuations. Nvidia’s AI moat is shifting from chips to capital Negative Sentiment: Some investors favor Micron because of surging high-bandwidth-memory demand and a lower valuation, while comparisons with AMD and Broadcom highlight intensifying competition from custom AI silicon. NVIDIA’s large Intel investment and divided hedge-fund positioning also add to uncertainty. NVIDIA vs. Micron Wall Street Analyst Weigh In A number of research analysts recently commented on NVDA shares. William Blair reaffirmed an “outperform” rating on shares of NVIDIA in a report on Tuesday, June 2nd. Morgan Stanley restated an “overweight” rating on shares of NVIDIA in a research report on Tuesday, August 11th. Sanford C. Bernstein reaffirmed a “buy” rating on shares of NVIDIA in a research note on Monday, June 29th. Argus lifted their target price on NVIDIA from $220.00 to $270.00 and gave the stock a “buy” rating in a report on Thursday, May 21st. Finally, Robert W. Baird set a $500.00 target price on NVIDIA and gave the company an “outperform” rating in a research report on Thursday, May 21st. Three research analysts have rated the stock with a Strong Buy rating, forty-nine have given a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, NVIDIA presently has an average rating of “Buy” and a consensus price target of $305.94.
View Our Latest Report on NVDA
NVIDIA Price Performance Shares of NVDA stock opened at $219.74 on Wednesday. The stock has a 50 day moving average price of $206.70 and a 200 day moving average price of $199.05. NVIDIA Corporation has a 52-week low of $164.07 and a 52-week high of $236.54. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44. The firm has a market capitalization of $5.32 trillion, a P/E ratio of 33.65, a P/E/G ratio of 0.44 and a beta of 2.23.
NVIDIA (NASDAQ:NVDA – Get Free Report) last announced its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, beating the consensus estimate of $1.76 by $0.11. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The company had revenue of $81.61 billion for the quarter, compared to the consensus estimate of $78.42 billion. During the same quarter in the prior year, the company posted $0.81 EPS. NVIDIA’s quarterly revenue was up 85.2% on a year-over-year basis. As a group, sell-side analysts predict that NVIDIA Corporation will post 8.79 earnings per share for the current year.
NVIDIA announced that its board has authorized a share buyback program on Wednesday, May 20th that allows the company to repurchase $80.00 billion in shares. This repurchase authorization allows the computer hardware maker to repurchase up to 1.5% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s board of directors believes its shares are undervalued.
NVIDIA Profile (Free Report)
NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.
The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.
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USA chtějí zacelit mezeru, která čínským firmám umožňuje vzdáleně využívat výpočetní výkon nejpokročilejších čipů Nvidia prostřednictvím datových center v Asii. Navrhovaný zákon RASA by rozšířil exportní kontroly i na vzdálený cloudový přístup.
Nvidia's effective monopoly over the most powerful chips has made U.S. export controls a key tool in Washington's effort to preserve its advantage over China in the AI race.
But despite U.S. restrictions on exporting the company's most advanced semiconductors, including GB300s, several Chinese firms have reportedly been able to access the chips' compute power via data centers in Southeast Asia.
Less than a week after Moonshot AI released a new model in July, White House official Michael Kratsios accused the company of using Nvidia's GB300 chips via a facility in Thailand.
Moonshot's Kimi K3 is one of a wave of new Chinese AI models that have made leaps in performance in recent months, as the race for AI supremacy between Washington and Beijing intensifies. DeepSeek and Alibaba have also recently released new AI systems that have scored well on performance benchmarks.
Industry watchers say access to advanced compute via overseas cloud providers is a key factor in Chinese AI models gaining capability. U.S. legislation is being discussed to plug this loophole, but hurdles remain before it can have an impact.
How Chinese firms access Nvidia computing power overseasNvidia's most advanced AI chips are under export restrictions to China, though some less capable semiconductors are allowed to be shipped to the country.
Cassia King, senior researcher on the Compute Policy team at the Institute for AI Policy and Strategy, told CNBC that Moonshot's reported access to compute through a Thai facility was legal "so long as Moonshot isn't actually buying and owning the physical hardware directly."
She said the U.S. export control regime "controls physical AI chips. It does not cover remote access to those chips."
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When asked about Chinese firms accessing Nvidia compute overseas to train AI models, a White House official told CNBC: "The Trump administration has implemented the most rigorous export control regime in modern history, and remains committed to safeguarding America's national and economic security."
The U.S. Department of Commerce and Bureau of Industry and Security (BIS) did not respond to a request for comment.
Chinese hyperscalers including ByteDance, Alibaba and Tencent have reportedly accessed compute power from Nvidia chips remotely via other Asian nations, including Thailand, Malaysia and Japan. ByteDance and Tencent did not respond to a request for comment. Alibaba declined to comment.
ByteDance was working with Singapore-headquartered Aolani, a cloud provider with Nvidia chips, to access compute in Malaysia, according to a source familiar with the matter, who asked to remain anonymous when discussing private information. The Wall Street Journal first reported the arrangement in March.
Aolani told CNBC it worked "with a global and diversified customer base spanning customers from North America and Asia."
"The companies we service do not have ownership, potential future claim or physical access to the chips that power our solutions," the spokesperson added. "Any permitted access to our services, infrastructure or technology is fully compliant with all applicable regulations."
AI infrastructure buildouts in Southeast Asia are booming as companies look to tap the growing market for advanced compute.
Real estate company JLL estimates that global data center capacity could roughly double to 200GW by 2030.
There are 31 planned 100MW+ data centers across Malaysia, Indonesia and Thailand, compared to just two today, according to data compiled by DC Byte.
What the Remote Access Security Act would changeMichelle Nie, a visiting fellow in technology and national security at think tank Center for a New American Security, told CNBC that loophole was "threatening U.S. national security."
"The point of chip export controls is to deny China the ability to train frontier AI using advanced U.S. chips," she added.
A proposed piece of legislation, the Remote Access Security Act (RASA), seeks to expand U.S. export controls to include the remote cloud-based access of critical hardware and software. It passed the House of Representatives in January but has yet to pass the Senate.
It faces potential industry pushback, Nie said, adding: "Cloud providers would bear the compliance burden of any KYC and customer verification requirements mandated by the bill."
The passing of RASA alone wouldn't solve the problem, Nie added, saying it would give the U.S. government "the authority to regulate remote access," but it "would still need to create a rule to export-control remote access to advanced chips."
The Bureau of Industry and Security (BIS) could push through a rule quickly, possibly in a "matter of days" with White House support, said King.
"The challenge will be in making a rule that's effective and enforceable," she added. "Policymakers will need to decide what compute is covered, who should be prohibited from remotely accessing the compute, and how to implement a robust know-your-customer scheme."
Philippe Laffont z Coatue Management prodal akcie společnosti Nvidia už ve 12 z posledních 13 čtvrtletí. Podíl fondu ve společnosti Nvidia od 31. března 2023 snížil zhruba o 88 %.
August is home to two of the most important data releases of the quarter: Nvidia's (NVDA -2.34%) operating results (scheduled for Aug. 26) and Form 13F filings by institutional investors with at least $100 million in assets under management. A 13F offers a snapshot of the stocks that Wall Street's leading money managers purchased and sold in the latest quarter.
Friday, Aug. 14, marked the deadline for fund managers to file Form 13Fs detailing their second-quarter trading activity. It also gives investors a firsthand look at the trends captivating the attention of billionaire investors, such as Coatue Management's Philippe Laffont.
The second quarter was a busy one for Laffont, with nine new holdings, eight existing stakes added to, five positions exited, and 22 holdings reduced. But among these more than three dozen chess moves, one consistency stands out: Laffont was, yet again, a seller of Nvidia stock.
Image source: Getty Images.
Coatue Management's billionaire boss has been a persistent seller of Nvidia stock Despite Nvidia's graphics processing units (GPUs) absolutely dominating in artificial intelligence (AI)-accelerated data centers, Laffont has been reducing his exposure to the face of the AI revolution in all but one of the last 13 quarters (share counts adjusted for Nvidia's 10-for-1 forward split in June 2024):
Q1 2023: 49,802,020 shares held Q2 2023: 46,449,700 shares (-3,352,320) Q3 2023: 45,410,400 shares (-1,039,300) Q4 2023: 43,222,010 shares (-2,188,390) Q1 2024: 13,851,410 shares (-29,370,600) Q2 2024: 13,754,447 shares (-96,963) Q3 2024: 10,138,161 shares (-3,616,286) Q4 2024: 10,006,488 shares (-131,673) Q1 2025: 8,545,835 shares (-1,460,653) Q2 2025: 11,488,529 shares (+2,942,694) Q3 2025: 9,870,743 shares (-1.617,786) Q4 2025: 9,203,337 shares (-667,405) Q1 2026: 6,331,620 shares (-2,871,718) Q2 2026: 6,055,197 shares (-276,423) Collectively, Coatue Management's billionaire boss has slashed his fund's stake in Nvidia by roughly 88% since March 31, 2023. It begs the question: What does Philippe Laffont know that Wall Street doesn't?
Image source: Nvidia.
There's likely more than just profit-taking behind this selling One of the more obvious reasons for this ongoing selling activity is profit-taking. Since Laffont's Nvidia stake peaked in the first quarter of 2023, shares of the company have jumped tenfold. But there's likely more to this selling than just ringing the register.
For example, competition is expected to ramp up. Although Nvidia's GPUs are superior on a compute basis, the company's biggest threat may come from within.
Several of Nvidia's top customers by net sales are developing AI chips for their own data centers. While these in-house AI chips aren't an external threat to Nvidia, they're notably cheaper and more readily accessible than Nvidia's hardware. In other words, they can take up valuable data center real estate and minimize the GPU shortage that's helped fuel Nvidia's pricing power.
-- Geiger Capital (@Geiger_Capital) May 8, 2026 Furthermore, history shows that every game-changing technology dating back more than 30 years has navigated an early stage bubble-bursting event. Investors consistently overestimate the pace of adoption and optimization of hyped technologies, and nothing suggests that AI will be the exception to this unwritten rule.
Things need to go perfectly for Nvidia to maintain its $5.45 trillion valuation. However, the ramp-up of every game-changing technology has been filled with proverbial speed bumps and potholes.
Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
Small batches of Nvidia's (NVDA.O) H200 chips, one of the company's most powerful AI chips, have been allowed to enter mainland China, the Financial Times reported on Tuesday, citing two people with knowledge of the matter.
ByteDance and Tencent (0700.HK) have each received about 10,000 H200 processors in recent weeks, while a few other Chinese technology firms could soon secure similar shipments, the report said.
Although the U.S. has cleared the companies to purchase up to 100,000 H200 chips each, Beijing wants them to keep the hardware outside mainland China to support the growth of domestic chipmakers, according to the FT report.
The report added that Chinese regulators have told companies they can ship the processors to Hong Kong, which operates outside mainland China's customs border, and use them there.
Last month, a top U.S. official told Congress that a small number of Nvidia H200 chips had been shipped to China.
Reuters could not immediately verify the report. Nvidia did not immediately respond to a Reuters request for comment.
Michael Burry označil Etched za „vážnou konkurenci“ pro NVDA. Startup přitom získává bývalé inženýry Nvidie a jeho čip Sohu je určen pro transformerové AI modely.
Nvidia Corp.’s (NASDAQ:NVDA) most famous skeptic just handed the chip giant a new rival to worry about.
Michael Burry declared on Tuesday that “This is serious competition for NVDA,” pointing to a Wall Street Journal report on Etched — a startup that has spent the past two years quietly stocking its engineering ranks with Nvidia’s own talent.
NVDA stock is moving. See the chart and price action here. According to the report, Etched said it took just 44 days after getting test chips back from Taiwan Semiconductor Manufacturing to have them running inference workloads. The process typically takes six months or longer, the report said.
Central to that speed is Brian Loiler, who spent 22 years at Nvidia building its HGX and DGX server systems before Etched recruited him in 2024 as VP of Platform, according to the company.
Since joining, Loiler has helped pull roughly a dozen more engineers away from Nvidia — some of whom turned down richer counteroffers to stay, the Journal reported. Nvidia alumni now make up about 15% of Etched’s roughly 400-person workforce, per the report.
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A Chip Built for One JobEtched’s flagship product, a chip called Sohu, is designed exclusively to run transformer-based AI models — the architecture behind large language models like ChatGPT — rather than functioning as a general-purpose GPU the way Nvidia’s chips do, CNBC reported when the company first emerged.
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The startup raised a $120 million Series A in 2024 with backing from Peter Thiel and Replit CEO Amjad Masad, Reuters reported at the time. Etched closed a $300 million Series C in July that pushed its valuation to $10.3 billion, led by Sequoia with participation from Andreessen Horowitz, Jane Street, Diffusion and SK Hynix (NASDAQ:SKHY).
The Bottom LineBurry’s been hammering the same point for months: Nvidia’s grip on AI chips isn’t as unshakable as Wall Street thinks. Etched just gave him a fresh talking point — a two-year-old startup that built its bench almost entirely out of Nvidia’s own engineers.
NVDA Stock Price Activity: Nvidia stock was down 2.24% at $219.97 at the time of publication Tuesday, according to Benzinga Pro.
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