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German Chancellor Friedrich Merz, left, and Nvidia CEO Jensen Huang attend the opening ceremony of the "Invest in Germany Summit" in Berlin, Monday, Oct. 19, 2026. Credit: Fabian Sommer/dpa via AP

Nvidia CEO Jensen Huang urged Germany's makers of cars and industrial machines to quickly adopt artificial intelligence to "reengineer" the country's struggling business model by tapping its wealth of manufacturing data and expertise.

Huang, whose company designs the powerful computer chips and software used by companies like Anthropic and OpenAI to develop AI applications, said that digital technology would never replace manufacturing and the engineering world of cars and robots where Germany has vast experience.

Or, as he put it, "electrons will never replace atoms." But he said industry would benefit by leaning into technology.

"The next wave of AI is physical. This is where AI interacts with the physical world: robotics, manufacturing, cars, heavy industry," Huang said Monday during a discussion with German Chancellor Friedrich Merz at an investment conference in Berlin.

"And so AI can only augment your capability. It will not replace your capability. So take advantage of the technology."

Huang said Germany's data and expertise on manufacturing "is your natural resource, it belongs to the nation" but it needs to take better advantage of AI. "This industrial revolution is so mighty, so powerful. You don't have another chance," he said.

German Chancellor Friedrich Merz, left, and Nvidia CEO Jensen Huang attend the opening ceremony of the "Invest in Germany Summit" in Berlin, Monday, Oct. 19, 2026. Credit: Fabian Sommer/dpa via AP

European leaders like Merz are looking to AI as a potential source of growth but are also concerned about the extent of European dependence on U.S. tech companies in the field. Europe's wealth of high-quality public-sector and machine-readable manufacturing data could serve as grist for AI, an opportunity cited by former European Central Bank head Mario Draghi as an area where Europe could compete with the U.S. and China in the AI field.

Huang and Merz said AI was an opportunity for Germany's so-called "mittelstand," the hundreds of small- and medium-sized companies in highly specialized industrial sectors.

Merz is struggling to revive growth in Germany after years of near-stagnation after the pandemic. Among the economy's headwinds are high energy prices after losing cheap Russian natural gas due to the invasion of Ukraine, competition from China in sectors like autos where Germany once dominated, and excessive red tape and permissions that hold up projects for years. All that has put a damper on an economy heavily oriented toward building complicated machines for export, including cars, trains, aircraft and factory equipment.

Europe lags the U.S. in building out the data centers that offer the massive computing capacity to train artificial intelligence applications and faces concerns over the security of European companies' sensitive data against subpoenas and criminal warrants on servers owned by U.S. companies and thus exposed to the U.S. legal system even if they're in Europe.

Huang appeared to address such concerns by urging Germany to import AI technology but adding that "you should not export your culture, export your values, export your knowledge."

Huang said Germany should "take advantage of artificial intelligence. Let them codify, let them program, let them teach this artificial intelligence and keep it here in Germany, and let's reengineer, the chancellor's words, Germany. This is your chance to do it."

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Nvidia is increasing its investments in Europe's artificial intelligence sector, unveiling plans to back four German startups as the country pushes to strengthen its position in industrial AI.

The investments are part of the U.S. chipmaker's nearly $10 billion commitment to invest in companies, universities and research institutions across Europe, as announced at the Invest in Germany Summit in Berlin on Monday.

The four startups are Agile Robots, Avelios Medical, Mirelo and Reflex Aerospace. However, Nvidia did not disclose the size of the planned investments.

Agile Robots develops AI-powered robots for manufacturing, logistics and healthcare, while Avelios Medical builds AI-powered hospital management software. Mirelo develops AI models that generate audio for videos, while Reflex Aerospace designs and builds satellites.

The announcement comes as Germany seeks to accelerate AI adoption across its industrial sector, with Chancellor Friedrich Merz saying the country aims to become a leader in integrating AI into key sectors.

Merz, who described the technology as a major opportunity for the country's economy, named manufacturing, machinery and the automotive industry for integrating AI. He also urged Germany's small- and medium-sized businesses to capitalize on the data they already hold.

"Please open your doors for AI to make use of your data," Merz said. "This is a real secret and a real advantage for Germany to make use of all the data which is already available in our companies."

Nvidia CEO Jensen Huang echoed Merz's remarks while highlighting Germany's expertise in manufacturing, mathematics and science, saying that AI would strengthen rather than replace the country's industrial capabilities.

"AI can only augment your capability, it will not replace your capability," Huang said, describing the technology as a new instrument for businesses.

Nvidia is also expanding its collaboration with the German federal government and its "Industry 4.0 Platform," bringing together representatives from government, industry, research and trade associations, to accelerate the adoption of industrial AI. On Monday, the government signed a joint declaration of intent with Nvidia to advance AI models for industrial applications.

Earlier in the day, Siemens had also announced new AI solutions developed with Nvidia at its factory in Erlangen, Germany. Siemens said the technologies could reduce engineering work involved in preparing production by up to 85%, while AI-powered production planning could cut costs by as much as 20%.

Huang had also visited France last week, where he announced investments in four French startups and met with French President Emmanuel Macron to discuss AI development. The Nvidia boss is scheduled to deliver a keynote address in Berlin on Wednesday.

A Pulitzer Prize-winning historian of financial crashes sees a familiar pattern forming in today's AI boom, and he says the same mechanism that buried railroads in 1873 and dot-coms in 2000 is already flashing in Treasury data right now.

The AI boom has pushed American stocks to valuations few living investors have seen. Meanwhile, one of Wall Street’s most respected financial historians argues that the money pouring in is itself the warning sign. Liaquat Ahamed, Pulitzer Prize-winning author of Lords of Finance, reportedly says “a trillion dollars has come into the US equity market from foreigners” over the past 12 months and that “the US equity market is 250% of GDP,” a figure that includes private equity. But the size of that number concerns him less than what tends to follow it. In his account, booms die when the rush of capital drives interest rates higher, and “the major ones all end badly.”

A Rate Signal Already Flashing in Treasury Data Ahamed traces the pattern throughout historic market cycles: the 1870s, 1880s, 1920s, 1999-2000, and 2008. In each case, a boom drew in capital until demand for money raised its price, and higher borrowing costs then sank projects that only worked with cheap financing. He says “real interest rates have gone up by 150 basis points in the last 12 months” and calls the move “a global phenomenon” as governments borrow heavily.

Treasury data supports his reading. The 10-year Treasury yield reached 5.19% on October 14, 2026, up 1.16 points year over year. That same day, the 10-year TIPS real yield stood at 2.84%, compared with 1.73% a year ago. Yields have eased a little since then, with the 10-year at 5.09% and the real yield at 2.74% on October 16. Long-term money is still expensive, with the 30-year real yield at 3.16%.

Railroads of 1873 Mirror Today’s Data Center Buildout For his historical comparison, Ahamed points to the railroad mania of the 1800s. In the US, 5% of GDP went into railroad construction, which he puts at “one and a half trillion dollars” in today’s terms, roughly what is now being spent on AI infrastructure. About 80% of that construction was financed with bonds, and “by 1872, only one in five railroads was paying a dividend,” he noted. Then a geopolitical shock shut capital markets in 1873, and the boom collapsed.

The modern version is larger and moving faster. On NVIDIA’s (NASDAQ:NVDA | NVDA Price Prediction) August earnings call, CFO Colette Kress said capital spending by the top five hyperscalers “is expected to reach nearly 800 billion in 2026 and 1.3 trillion in 2027.” She cautioned that the leading AI labs “are growing faster than what their balance sheets and credit profiles can support.” NVIDIA has invested “nearly 50 billion in the Frontier AI Labs,” and Kress addressed the criticism directly: “We know some will call this circular financing. We see it differently.” Ahamed describes that kind of arrangement as “a hidden form of borrowing” that is “great on the way up and it’s terrible on the way down.”

NVIDIA’s $5.17 Trillion Sits at the Center of the Risk No single company better represents the 250% figure than Nvidia, boasting a market cap of $5.2 trillion. Fiscal second-quarter revenue rose to $96.22 billion, up 105.8% year over year, and Data Center revenue reached $89.02 billion. The most telling figure is in the quarterly filing: supply obligations climbed to $279.00 billion, mostly for memory used in Vera Rubin production. Commitments that large assume demand stays strong even if borrowing costs keep rising.

Valuation focuses the rate argument. At about 43 times earnings and 53 times free cash flow, NVIDIA’s valuation works out to an earnings yield of 2.32%. A 10-year Treasury pays 5.09% with no business risk at all. That gap is the pressure Ahamed describes: as safe yields rise, investors need more conviction to own stocks priced well above their current earnings.

The stock has started to wobble. Shares fell 4.84% over the past week to $218.19, though they remain up 17.27% year to date. Ahamed admits that timing is “the giant challenge,” and he notes that earlier infrastructure booms lasted “two to four years.” Skeptics can be early for a long time before they are proven right, and that is why we wrote a free handbook on riding a mania while planning the exit.

Calm Volatility Can Change Quickly For now, fear is silent. The VIX, which measures expected volatility in the benchmark S&P 500, stands at 17.65, inside its normal range. That gauge was at 31.05 on March 27, 2026, a reminder of how fast sentiment can flip.

Jim Cramer has been preparing viewers for that kind of shift. On his July 20 broadcast, the CNBC commentator asked whether a “sudden AI stock sell off” was “just a blip or something you should seriously worry about.” He has told investors that only cash and diversification protect portfolios as AI data-center stocks sell off.

Ahamed’s warning gives investors something specific to track. I’m watching the 10-year yield and the TIPS real yield more closely than any AI headline, because history suggests rates are what end booms. His own advice is direct: “Don’t get caught up in the heat of the moment. Think for yourself.” Readers who have followed our earlier coverage of the Buffett Indicator will recognize the setup.

Contact [email protected] for any questions or corrections.

News Summary:

NVIDIA researchers are using JUPITER — the largest supercomputer in Europe, built at Jülich Supercomputing Centre — for a record-breaking fault-tolerant quantum computing simulation.The 104-qubit simulation is the largest comprehensive simulation of a fault-tolerant quantum computing system to date, with no prior simulations modeling quantum processors in such full detail.The simulation validates a quantum computing approach that uses 90% fewer physical qubits than previous methods, accelerating progress toward useful applications in drug discovery, financial modeling and materials science.JUPITER simulations are providing the quantum industry with actionable insight into the impact of noise on fault-tolerant quantum computing, enabling researchers to refine designs before building hardware — shortening the path to viable quantum computers by years. BERLIN, Oct. 19, 2026 (GLOBE NEWSWIRE) -- NVIDIA today announced a record-breaking quantum computing simulation on JUPITER, Europe’s first exascale supercomputer, allowing researchers to fully explore and validate magic state cultivation — a leading approach to fault-tolerant quantum computing that requires 90% fewer qubits than previous methods.

Running on a system of NVIDIA GH200 GPUs at Jülich Supercomputing Centre, the 104-qubit simulation is the largest comprehensive simulation of a fault-tolerant quantum processor to date, modeling how a realistic quantum processor performs fault-tolerant computation at record scale.

That level of fidelity gives researchers the data and tools needed to predict the performance of future designs before they are built — reducing reliance on hardware trial and error, and accelerating the path to useful quantum applications in fields like drug discovery, financial modeling and materials science.

“Useful quantum computing will require fantastically complex, fault-tolerant systems — and understanding how they behave at scale is essential to building them,” said Jensen Huang, founder and CEO of NVIDIA. “Our results from Jülich show how quantum processors and GPU supercomputers can work together to tackle research that would otherwise be out of reach — accelerating the discovery of transformative quantum applications.”

“Europe’s investment in JUPITER gives researchers the ability to investigate questions that were previously beyond reach,” said Kristel Michielsen, director of the Jülich Supercomputing Centre at the Forschungszentrum Jülich facility. “Working with NVIDIA, we’re bringing that capability to quantum computing — helping scientists make better-informed decisions about the designs most likely to deliver useful applications.”

Reducing the Resources Needed for Useful Quantum Computing
Because qubits operate at the limits of physics, the interactions needed to control them introduce unavoidable, error-inducing noise. Computing in the presence of such noise — known as fault-tolerant quantum computing — requires the use of magic states, a specific arrangement of qubits that is continually consumed during a fault-tolerant quantum computation.

Fault-tolerant quantum computers rely crucially on repeatedly producing magic states — meaning that any optimization in how they are made drastically reduces the difficulty of building a useful quantum computer.

By simulating this process under realistic noise, NVIDIA researchers validated a state-of-the art magic-state cultivation approach, giving researchers the tools needed to develop and test future improvements.

Earlier, groundbreaking research from Jülich simulated 50 qubits under ideal, noiseless conditions. This work simulates magic-state cultivation under realistic hardware noise, helping researchers understand the impact of errors.

From Research Development to Exascale Simulation
Simulating magic-state cultivation helps researchers evaluate and improve designs before building quantum hardware. But the memory required can grow exponentially with the number of qubits, putting large-scale simulations beyond the reach of conventional computing systems.

An NVIDIA GB200 NVL72 system at the NVIDIA Accelerated Quantum Research Center (NVAQC) served as the development platform for the JUPITER project, enabling researchers to scale tests from four GPUs to hundreds before moving to 8,192 GPUs on JUPITER.

Researchers used the center to accelerate the development and testing of their simulation methods, compare results with JUPITER and explore how accuracy scaled with additional computing resources. This work helped reduce a weekslong simulation effort to days while preparing the team to use JUPITER’s exascale computing capacity effectively.

The project demonstrates how simulation will grow increasingly important and complex as quantum computing systems grow in size. It also shows the utility of accelerated computing clusters, like at NVAQC, in allowing researchers to develop and validate simulation methods before tapping into world-class supercomputers for their most demanding calculations.

The simulations ran using NVIDIA cuQuantum software to achieve highly optimized performance and scale, along with the NVIDIA CUDA-Q™ platform’s fault-tolerant logical layer to express the magic-state circuit.

Read the GitHub blog on the JUPITER simulation.

Watch the GTC Berlin keynote from Huang and explore sessions.

About NVIDIA
NVIDIA (NASDAQ: NVDA) is the world leader in AI and accelerated computing.

For further information, contact:
Aaron Groff
Corporate Communications
NVIDIA Corporation
[email protected]

Certain statements in this press release including, but not limited to, statements as to: 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 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.

© 2026 NVIDIA Corporation. All rights reserved. NVIDIA, the NVIDIA logo, and other NVIDIA product and service names are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and other countries and regions. Other company, product, and service names may be trademarks of the respective companies with which they are associated.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/f89cad77-76b7-4c56-a133-3ec9e0441d34

JUPITER Supercomputer NVIDIA researchers are using JUPITER — the largest supercomputer in Europe, built at Jülich Supercom...

Jensen Huang says compute is now revenue, and NVIDIA's latest numbers back him up. But whether Wall Street's already-aggressive targets actually undershoot where this stock is headed depends on a few catalysts that could change the math entirely.

NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) chief executive Jensen Huang sums up the moment in one line: “AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue.”

The latest quarter at NVIDIA supports him. Second-quarter fiscal 2027 revenue reached $96.22 billion, up 105.8% year over year, and Data Center sales rose 117% to $89.02 billion.

Shares are up 20.15% year to date at $223.55 and have gained 932.51% over five years. Earnings are growing faster than the stock price, though, which leaves room for a revaluation. Here’s how NVIDIA could hit $400 in 2027.

Wall Street Already Sees 47% Upside The average analyst price target is $328.72, which means about 47% upside. Coverage has 10 Strong Buy and 49 Buy ratings against just one Sell.

Estimates keep rising. Consensus EPS for fiscal 2028 stands at $15.9146, compared with $12.7102 90 days ago. Over the past 30 days, analysts made 46 upward revisions and zero downward.

That works out to about 71% growth from the $9.3124 expected this fiscal year. NVIDIA has also exceeded EPS estimates for 6 consecutive quarters, most recently posting $2.22 against $2.0887 expected. A run like that suggests actual results could come in above forecasts.

Here’s the Math Behind $400 Per Share At today’s price, NVIDIA trades at 14x fiscal 2028 estimates. The S&P 500 trades at roughly 21-23x forward earnings, so NVIDIA is cheaper than the average stock despite growing much faster.

At $400, shares would trade at about 25x forward earnings. That is a modest premium for a business expected to grow EPS by roughly 71%.

What Could Push NVIDIA to $400? Vera Rubin: Purchase orders have arrived from “every major hyperscaler, AI cloud, and system OEM,” and management expects it to be “the fastest product ramp in NVIDIA’s history.” Each gigawatt of Vera Rubin represents a $40 billion revenue opportunity, compared with $25 billion for Blackwell. Demand above supply: Management guides to roughly 70% revenue growth in fiscal 2028 and says “customers’ forecasts point to our growth doubling next year.” Hyperscaler spending: Capital spending by the top five hyperscalers is expected to rise from nearly $800 billion in 2026 to $1.3 trillion in 2027. Key deals: AWS is deploying an additional 2 million GPUs, and OpenAI’s commitments total about 12 gigawatts of NVIDIA computing power. Buybacks: NVIDIA returned $26 billion to shareholders last quarter and has about $99 billion left under its buyback authorization. There are hurdles. Memory costs could push gross margin down to a 71% to 72% low, the outlook includes no China data center revenue, and supply stays tight through fiscal 2028.

NVIDIA Has Topped 79% in 10 Years Since 2000 Hitting $400 requires a gain of about 79%. Since 2000, NVIDIA has gained more than that in 10 calendar years.

Shares rose 239% in 2023, 171% in 2024, 227% in 2016 and 125% in 2021. At a market cap of about $5.395 trillion, repeating those gains is harder, but the record shows the stock can move this much.

$400 Is a Stretch, but Here’s Why It’s Possible A move to $400 would take a 79% gain in 2027. Analysts already expect 47% upside, estimates are rising quickly, and the stock trades below the market multiple.

If Vera Rubin ramps as planned, hyperscaler spending holds up and the beat run continues, a 25x multiple is a reasonable outcome. Such returns are rare, yet this is how NVIDIA could deliver outsized returns in 2027.

Contact [email protected] for any questions or corrections.

TD Waterhouse Canada Inc. increased its stake in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 11.0% during the second quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 5,196,841 shares of the computer hardware maker’s stock after purchasing an additional 512,917 shares during the quarter. NVIDIA makes up approximately 2.7% of TD Waterhouse Canada Inc.’s portfolio, making the stock its 5th biggest holding. TD Waterhouse Canada Inc.’s holdings in NVIDIA were worth $1,027,269,000 at the end of the most recent reporting period.

Several other institutional investors have also bought and sold shares of NVDA. Bank of America Corp DE raised its stake in shares of NVIDIA by 2.2% in the second quarter. Bank of America Corp DE now owns 195,366,864 shares of the computer hardware maker’s stock valued at $39,090,956,000 after buying an additional 4,165,875 shares during the period. Amundi lifted its position in shares of NVIDIA by 10.4% during the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock valued at $23,329,141,000 after buying an additional 12,575,177 shares during the last quarter. Deutsche Bank AG grew its stake in shares of NVIDIA by 2.3% during the 2nd quarter. Deutsche Bank AG now owns 91,954,159 shares of the computer hardware maker’s stock worth $18,399,108,000 after acquiring an additional 2,045,101 shares during the period. Dimensional Fund Advisors LP grew its stake in shares of NVIDIA by 0.6% during the 1st quarter. Dimensional Fund Advisors LP now owns 94,521,253 shares of the computer hardware maker’s stock worth $16,479,126,000 after acquiring an additional 555,221 shares during the period. Finally, Jupiter Topco LLC bought a new position in shares of NVIDIA during the 2nd quarter worth $16,156,076,000. Hedge funds and other institutional investors own 65.27% of the company’s stock.

Analysts Set New Price Targets NVDA has been the topic of a number of research reports. Morgan Stanley set a $230.00 price objective on NVIDIA in a research note on Friday, October 2nd. JPMorgan Chase & Co. upped their price objective on shares of NVIDIA from $280.00 to $320.00 and gave the company an “overweight” rating in a report on Thursday, August 27th. Rothschild & Co Redburn increased their target price on shares of NVIDIA from $300.00 to $325.00 in a research report on Thursday, August 27th. Sanford C. Bernstein reiterated a “buy” rating on shares of NVIDIA in a research note on Monday, September 21st. Finally, Stifel Nicolaus set a $315.00 price target on shares of NVIDIA in a research report on Thursday, August 27th. Five research analysts have rated the stock with a Strong Buy rating, forty-nine have given a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Buy” and an average price target of $321.89.

Get Our Latest Stock Analysis on NVIDIA Insider Buying and Selling In related news, Director Mark Stevens sold 622,239 shares of the company’s stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the sale, the director owned 2,336,531 shares of the company’s stock, valued at approximately $541,187,310.22. This represents a 21.03% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CFO Colette Kress sold 34,918 shares of the stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the completion of the sale, the chief financial officer owned 765,103 shares in the company, valued at $167,595,812.15. This represents a 4.36% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 1,766,118 shares of company stock valued at $399,450,353. Company insiders own 3.94% of the company’s stock.

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

Positive Sentiment: New RTX Spark laptops expand NVIDIA’s addressable market. Systems from ASUS, Dell, HP, Lenovo, Microsoft and MSI are now available starting at $2,599, combining Blackwell graphics, up to 128GB of memory and local AI capabilities. The launch could create a new consumer and developer revenue stream beyond data centers. NVIDIA RTX Spark PCs Available Today Positive Sentiment: Automotive and enterprise adoption continues. Volvo expanded its partnership with NVIDIA for automated-driving systems, while Adobe is integrating NVIDIA technology across Photoshop, Premiere and other creative tools. These agreements support longer-term demand for NVIDIA hardware and software. Volvo Cars expands automated driving partnership Positive Sentiment: Supply-chain investment and customer deployments remain strong. Taiwan is reportedly considering as much as $4 billion for Texas industrial parks serving NVIDIA suppliers, and customers continue deploying Blackwell systems. The developments reinforce demand, although they may take time to affect revenue. Taiwan Texas industrial parks Neutral Sentiment: NVIDIA is broadening its software and AI-model ecosystem. Paid offerings such as AI Enterprise and Mission Control, along with Nemotron open models and partnerships with AI startups, could make earnings less dependent on hardware. However, the articles provide no near-term financial contribution. Negative Sentiment: AI financing concerns are the main pressure. CoreWeave’s debt has reportedly traded at distressed yields, raising questions about whether highly leveraged customers can continue funding data-center expansion. Higher Treasury yields and inflation concerns are also making large AI projects more expensive. CoreWeave financing worries Negative Sentiment: Investors are questioning AI growth expectations. OpenAI’s reported $50 billion revenue run rate was below the roughly $68 billion previously anticipated, prompting concern that AI demand may mature more slowly. Microsoft’s development of custom Maia chips also highlights the risk of customers developing alternatives to NVIDIA GPUs. OpenAI revenue expectations Negative Sentiment: Reported insider selling adds a sentiment overhang. Recent data showed NVIDIA insiders made numerous sales and no open-market purchases over the past six months, though such transactions may reflect planned diversification rather than a change in business outlook. NVIDIA Price Performance NVDA stock opened at $214.13 on Monday. The stock has a 50-day simple moving average of $223.20 and a two-hundred day simple moving average of $211.42. NVIDIA Corporation has a twelve month low of $164.27 and a twelve month high of $243.37. The firm has a market capitalization of $5.16 trillion, a PE ratio of 27.07, a PEG ratio of 1.65 and a beta of 2.22. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14.

NVIDIA (NASDAQ:NVDA – Get Free Report) last announced its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The firm had revenue of $96.22 billion for the quarter, compared to the consensus estimate of $92.27 billion. During the same period in the prior year, the firm posted $1.05 earnings per share. The company’s revenue for the quarter was up 105.9% on a year-over-year basis. On average, equities analysts predict that NVIDIA Corporation will post 9.30 EPS for the current fiscal year.

NVIDIA Announces Dividend The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were paid a dividend of $0.25 per share. The ex-dividend date of this dividend was Thursday, September 10th. This represents a $1.00 annualized dividend and a yield of 0.5%. NVIDIA’s payout ratio is currently 12.64%.

NVIDIA announced that its Board of Directors has initiated a share buyback program on Monday, September 28th that allows the company to buy back $150.00 billion in outstanding shares. This repurchase authorization allows the computer hardware maker to purchase up to 2.8% of its shares through open market purchases. Stock repurchase programs are generally an indication that the company’s leadership believes its stock is undervalued.

About NVIDIA (Free Report)

NVIDIA Corporation (NASDAQ: NVDA) is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.

The company’s products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.

Further Reading Five stocks we like better than NVIDIA These 3 Green Stocks Have a Growth Story That Goes Far Beyond Washington Meta Claims Frontier-Class AI Status With New Muse Wonder Models Berkshire Just Backed This Little-Known Stock—Should You Chase It? Broadcom’s CEO Sees Years of AI Demand But Warns of a Bigger Threat to the Boom 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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Kampmann Melissa S. increased its stake in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 409.2% in the 2nd quarter, according to the company in its most recent filing with the SEC. The fund owned 8,020 shares of the computer hardware maker’s stock after purchasing an additional 6,445 shares during the quarter. NVIDIA makes up 1.2% of Kampmann Melissa S.’s investment portfolio, making the stock its 29th largest holding. Kampmann Melissa S.’s holdings in NVIDIA were worth $1,605,000 as of its most recent filing with the SEC.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the stock. LightSquare Wealth Management LLC raised its position in NVIDIA by 0.3% in the 2nd quarter. LightSquare Wealth Management LLC now owns 18,695 shares of the computer hardware maker’s stock valued at $3,741,000 after purchasing an additional 49 shares during the last quarter. Defender Capital LLC. grew its holdings in shares of NVIDIA by 0.7% during the second quarter. Defender Capital LLC. now owns 7,534 shares of the computer hardware maker’s stock worth $1,507,000 after purchasing an additional 50 shares during the last quarter. Kooman & Associates increased its stake in shares of NVIDIA by 0.6% in the second quarter. Kooman & Associates now owns 8,464 shares of the computer hardware maker’s stock valued at $1,694,000 after buying an additional 50 shares in the last quarter. Roof Eidam Maycock Peralta LLC raised its holdings in shares of NVIDIA by 0.3% in the second quarter. Roof Eidam Maycock Peralta LLC now owns 18,827 shares of the computer hardware maker’s stock valued at $3,767,000 after buying an additional 50 shares during the last quarter. Finally, Persium Advisors LLC raised its holdings in shares of NVIDIA by 3.5% in the second quarter. Persium Advisors LLC now owns 1,466 shares of the computer hardware maker’s stock valued at $293,000 after buying an additional 50 shares during the last quarter. 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: New RTX Spark laptops expand NVIDIA’s addressable market. Systems from ASUS, Dell, HP, Lenovo, Microsoft and MSI are now available starting at $2,599, combining Blackwell graphics, up to 128GB of memory and local AI capabilities. The launch could create a new consumer and developer revenue stream beyond data centers. NVIDIA RTX Spark PCs Available Today Positive Sentiment: Automotive and enterprise adoption continues. Volvo expanded its partnership with NVIDIA for automated-driving systems, while Adobe is integrating NVIDIA technology across Photoshop, Premiere and other creative tools. These agreements support longer-term demand for NVIDIA hardware and software. Volvo Cars expands automated driving partnership Positive Sentiment: Supply-chain investment and customer deployments remain strong. Taiwan is reportedly considering as much as $4 billion for Texas industrial parks serving NVIDIA suppliers, and customers continue deploying Blackwell systems. The developments reinforce demand, although they may take time to affect revenue. Taiwan Texas industrial parks Neutral Sentiment: NVIDIA is broadening its software and AI-model ecosystem. Paid offerings such as AI Enterprise and Mission Control, along with Nemotron open models and partnerships with AI startups, could make earnings less dependent on hardware. However, the articles provide no near-term financial contribution. Negative Sentiment: AI financing concerns are the main pressure. CoreWeave’s debt has reportedly traded at distressed yields, raising questions about whether highly leveraged customers can continue funding data-center expansion. Higher Treasury yields and inflation concerns are also making large AI projects more expensive. CoreWeave financing worries Negative Sentiment: Investors are questioning AI growth expectations. OpenAI’s reported $50 billion revenue run rate was below the roughly $68 billion previously anticipated, prompting concern that AI demand may mature more slowly. Microsoft’s development of custom Maia chips also highlights the risk of customers developing alternatives to NVIDIA GPUs. OpenAI revenue expectations Negative Sentiment: Reported insider selling adds a sentiment overhang. Recent data showed NVIDIA insiders made numerous sales and no open-market purchases over the past six months, though such transactions may reflect planned diversification rather than a change in business outlook. Insiders Place Their Bets In other NVIDIA news, CFO Colette Kress sold 34,918 shares of the stock in a transaction dated Thursday, September 17th. The stock was sold at an average price of $219.05, for a total value of $7,648,787.90. Following the completion of the sale, the chief financial officer directly owned 765,103 shares in the company, valued at $167,595,812.15. This represents a 4.36% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Timothy S. Teter sold 30,460 shares of the stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $222.80, for a total value of $6,786,488.00. Following the completion of the sale, the executive vice president owned 2,687,660 shares of the company’s stock, valued at $598,810,648. This trade represents a 1.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 1,766,118 shares of company stock worth $399,450,353. Corporate insiders own 3.94% of the company’s stock. NVIDIA Price Performance Shares of NASDAQ:NVDA opened at $214.13 on Monday. The company has a 50 day moving average price of $223.20 and a two-hundred day moving average price of $211.42. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. The company has a market capitalization of $5.16 trillion, a PE ratio of 27.07, a PEG ratio of 1.65 and a beta of 2.22. NVIDIA Corporation has a 52 week low of $164.27 and a 52 week high of $243.37.

NVIDIA (NASDAQ:NVDA – Get Free Report) last announced its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, topping analysts’ consensus estimates of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The company had revenue of $96.22 billion for the quarter, compared to analysts’ expectations of $92.27 billion. During the same period last year, the firm posted $1.05 earnings per share. The business’s quarterly revenue was up 105.9% compared to the same quarter last year. Analysts forecast that NVIDIA Corporation will post 9.30 earnings per share for the current year.

NVIDIA declared that its Board of Directors has initiated a stock buyback plan on Monday, September 28th that allows the company to repurchase $150.00 billion in shares. This repurchase authorization allows the computer hardware maker to repurchase up to 2.8% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board of directors believes its shares are undervalued.

NVIDIA Announces Dividend The firm also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend was Thursday, September 10th. NVIDIA’s dividend payout ratio (DPR) is presently 12.64%.

Wall Street Analysts Forecast Growth NVDA has been the topic of several research reports. Wedbush upped their price target on shares of NVIDIA from $330.00 to $345.00 and gave the stock an “outperform” rating in a research report on Thursday, August 27th. Needham & Company LLC restated a “buy” rating and issued a $300.00 price objective on shares of NVIDIA in a research report on Friday, September 4th. Daiwa Securities Group dropped their target price on shares of NVIDIA from $255.00 to $245.00 and set an “outperform” rating for the company in a research note on Thursday, September 17th. DZ Bank reiterated a “buy” rating on shares of NVIDIA in a research report on Wednesday, August 26th. Finally, Melius Research set a $420.00 target price on shares of NVIDIA in a research report on Thursday, August 27th. Five analysts have rated the stock with a Strong Buy rating, forty-nine have assigned a Buy rating and one has assigned a Hold rating to the company’s stock. According to MarketBeat, NVIDIA presently has a consensus rating of “Buy” and an average target price of $321.89.

View Our Latest Analysis on NVIDIA

NVIDIA Company Profile (Free Report)

NVIDIA Corporation (NASDAQ: NVDA) is a technology company that designs graphics processing units (GPUs), accelerated computing platforms, networking products and related software. Its technologies support artificial intelligence, machine learning, scientific computing, data analytics, professional visualization and computer graphics.

The company’s products include GeForce GPUs for gaming and personal computing, data center GPUs and systems for AI and high-performance computing, and networking solutions used to connect and manage large-scale computing infrastructure.

Further Reading Five stocks we like better than NVIDIA These 3 Green Stocks Have a Growth Story That Goes Far Beyond Washington Meta Claims Frontier-Class AI Status With New Muse Wonder Models Berkshire Just Backed This Little-Known Stock—Should You Chase It? Broadcom’s CEO Sees Years of AI Demand But Warns of a Bigger Threat to the Boom

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Amazon.com (AMZN.O) is introducing a new tool that allows its custom AI chips to run ​code written in the most popular AI coding language ‌without modification, seeking to erode the advantage that underpins Nvidia's (NVDA.O) dominance in the AI computing market.

TorchNeuron lets developers run code written in a ​language called PyTorch on Amazon's Trainium AI chips ​with a single configuration change and no rewriting needed, ⁠according to Amazon's Annapurna Labs chip unit.

Amazon, which plans to ​announce the software at a developer conference in Silicon Valley ​on Monday, said the software will be publicly released as a free and open-source offering.

PyTorch, the open-source framework stewarded by Meta (META.O), is used ​by most AI developers. Nvidia has spent more than a ​decade on its software tool called Cuda that makes PyTorch code run ‌well ⁠on Nvidia chips.

Other cloud computing players such as Google (GOOGL.O), which also has its own custom AI chips, are also working to lure away developers from Nvidia with better PyTorch tools.

Colin Brace, ​vice president of ​software for ⁠Annapurna Labs, said the move was aimed at reducing the number of steps AI developers must ​take to try Amazon's in-house chips.

"This has been ​about ⁠meeting customers where they're at," he told Reuters in an interview.

Brace said more than 30 early customers — spanning robotics, world models ⁠and ​voice AI — are using the new software, ​and that the switch to Amazon's chips can result in steep cost ​savings.

Artificial intelligence (AI) stocks have taken a tremendous hit in October, as a toxic combination of higher interest rates and skepticism over the returns on AI spending has led to a steep sell-off.

Higher interest rates make it more costly to build AI data centers, all else being equal. Meanwhile, while leading AI labs Anthropic and OpenAI are still private, recent media leaks about their third-quarter revenue figures have suggested a potential slowdown.

If these two labs' revenues don't grow as much as some people anticipate, investors may cast doubt on the entire AI build-out, since Anthropic and OpenAI wouldn't be able to fund their commitments.

Are the fears real, or overblown? This week, Nvidia (NVDA -1.43%) CEO Jensen Huang weighed in on this very issue on a popular tech podcast.

NVDA Nvidia$214.13-$3.10 (-1.43%)

NASDAQ · As of 4:00 PM ET 10/16/26

The controversy
On Oct. 8, The Financial Times reported that in an investor presentation, OpenAI revealed it had reached $50 billion in annualized recurring revenue (ARR). That is well short of the $70 billion revenue figure leaked in September. While the difference was later addressed as a discrepancy in accounting methods, the headline still caused anxiety.

Then last week, Anthropic held its own investor presentations, revealing that it had made roughly $16.8 billion in revenue in Q3. Considering Anthropic generated only $4.6 billion in revenue in all of 2025, that's a remarkable achievement. Yet investors may still have been disappointed. In August, it was leaked that Anthropic was already at a $65 billion ARR at the end of July. So, the $67.2 billion Q3 annualized revenue figure would indicate a pretty sharp slowdown from July through September.

The back-to-back "leaks," along with rising inflation, were enough to send AI-related stocks, especially in the semiconductor sector, into a tailspin. After all, if Anthropic and OpenAI are slowing down, or not making as much as they thought, who is going to buy all of these chips and build all these expensive data centers?

Image source: Getty Images.

Jensen: AI is bigger than Anthropic and OpenAI
Last Thursday, Nvidia (NVDA -1.43%) CEO Jensen Huang appeared on a podcast with venture capitalist Brad Gerstner. In that interview, Gerstner put the big question to Huang: Would Anthropic and OpenAI generate enough revenue to continue growing the AI build-out?

Huang remained confident for the following reasons.

1. There's more than just two frontier labs
The first point Huang made was that Anthropic and OpenAI aren't the only two frontier labs. During the interview, Huang pointed not only to OpenAI and Anthropic but also Grok, the chatbot and agent from xAI, which is owned by Space Exploration Technologies (SPCX -1.74%), Meta Platforms' (META -3.72%) new Muse agent, and Alphabet's (GOOG -2.32%) (GOOGL -2.47%) Gemini, as all "doing great" and growing.

Of note, Grok Bot, xAI's new personal and business agent, launched in August. Meta Platform's much-lauded Muse personal agent debuted in September. An impressive open-weight model from China's Moonshot AI, called Kimi, debuted in July. Not to be outdone, OpenAI released its latest Codex model in July as well, meant to compete more strongly with Anthropic's leading coding capabilities.

That's a deluge of competitive agents substantively entering the fray during Q3. As such, it's perhaps inevitable that Anthropic's slowdown was due to competition and market-share loss rather than an overall slowdown in AI usage or spending.

While we don't have exact figures, Axios reported that OpenAI's revenue run rate grew by roughly 70% in Q3, well above Anthropic's 46% quarter-over-quarter growth. That seems to price in the share-loss story, not a general AI slowdown story. We also don't know how much SpaceX, Alphabet, or Meta's AI-related revenue grew, as they haven't reported earnings yet. None of these companies breaks down AI agent revenue specifically, either. So, it may be difficult to even understand how fast AI agentic revenue is growing inside these companies when they do report.

2. Frontier Labs are only 25% to 33% of Nvidia revenue right now
Another point Huang made was that frontier labs account for only a quarter to one-third of Nvidia's chip demand. Another third, according to Huang, is general computing, while the final third involves new and emerging AI-related companies. These companies, for instance, may use an open-weights model and then add proprietary data and industry knowledge to create new AI products.

On general computing growth, one point Huang has stressed over the past couple of years is that Moore's Law is "over." Moore's Law says that the amount of computing power roughly doubles every year at the same price, as chips pack more and more transistors onto a piece of silicon. However, Huang claims that semiconductor manufacturing is running up against the laws of physics and that, as a result, compute efficiency gains are slowing. Therefore, if someone wants to double their compute next year, the cost will increase rather than remain the same.

Given that there are more than just two labs, and that frontier labs account for only 25% to 35% of demand, Huang thinks people are putting way too much emphasis on OpenAI and Anthropic. Meanwhile, those labs still appear to be doing quite well even as they face more competition.

There should still be a shortage
Almost all commentary from leading AI chip companies says there is still a huge shortage of compute relative to demand. So even if leading frontier labs are under competitive pressure, semiconductors seem likely to find a buyer somewhere.

It appears from early Q3 earnings reports, especially from Taiwan Semiconductor Manufacturing, that chip demand remains strong. However, AI investors would do well to listen to other companies downstream from the chip giants to see whether they are generating AI-related revenue growth and efficiency gains.

Ultimately, AI will have to generate revenue and/or cost efficiencies for the end customer to justify this spending. So, commentary from AI users -- not necessarily the chipmakers themselves -- may be more important to chip stock performance than the chip companies' earnings during this upcoming earnings season.

Even if you don't hold any bonds in your portfolio, paying attention to the market can offer some very valuable insights about your stock portfolio. Some investors may have found that out the hard way recently.

CoreWeave (CRWV -11.91%), the leading neocloud company backed by Nvidia (NVDA -1.43%), saw its stock pummeled after venture capitalist Chamath Palihapitiya shared a chart on social media showing its recently issued bonds set to expire in 2032 touched a 15% yield. CoreWeave issued the bonds with a 9.625% coupon in June. Reuters later reported that the 9.75% notes CoreWeave issued in April due in 2031 topped a yield of 16%.

The rising yields on CoreWeave's debt indicate the market believes CoreWeave's risk of default is increasing. Doubts are starting to creep in about whether the neocloud company can generate returns on its invested capital that exceed the cost of capital, especially amid a rising interest rate environment. Other neocloud companies such as Nebius (NBIS -12.18%) face similar pressures.

That's bad news for Nvidia and its investors.

Image source: Nvidia.

Nvidia's future is tied to CoreWeave and the neoclouds Nvidia's biggest customers may be the big investment-grade tech companies building out robust platforms and their own AI stacks, but the neoclouds present one of its biggest sources of growth going forward. Nvidia made efforts to ensure that when it made strategic investments in CoreWeave and Nebius earlier this year. The chipmaker invested $2 billion in each of the neoclouds. As such, any decline in their stock prices has an immediate impact on Nvidia's balance sheet.

Nvidia also signed an agreement with CoreWeave last year to buy any unused capacity from CoreWeave through 2032. While Nvidia CEO Jensen Huang says he doesn't think the company will have to step in, it's still a liability that hangs over the company. CoreWeave cites its $104 billion backlog of contracted revenue as a defense against the need for a backstop. Management says that's more than enough to cover its debt obligations.

CRWV CoreWeave$61.39-$8.30 (-11.91%)

NASDAQ · As of 4:00 PM ET 10/16/26

Most importantly for Nvidia, the neocloud companies are dedicated to building with Nvidia. Nvidia's strategic investments and willingness to help finance purchases are key reasons. But if the rising cost of capital catches up with the neoclouds before they can deliver returns, a key driver of Nvidia's sales growth could become a massive drag.

While the hyperscalers have much deeper pockets, they're all looking to add more of their own custom-designed AI accelerators, or XPUs, to their data centers instead of Nvidia GPUs. Amazon CEO Andy Jassy has said that using its Trainium chips saves it tens of billions in capital expenditures every year. Alphabet's Google Cloud CEO noted that the payback period for its custom TPUs is less than half that of its average server. Microsoft recently indicated plans to expand the use of its Maia chips for inference starting next year. In short, Nvidia can't rely on its largest customers to drive sales growth, even as they spend more on building AI data centers.

What it means for Nvidia investors Nvidia is unlikely to let CoreWeave or its other neocloud partners fail. But any signs of failure for the businesses will put pressure on its finances and growth.

Nvidia could end up lending CoreWeave more money through its financing arm. However, Nvidia's plans to finance up to $500 billion in AI build-outs have faced objections from its banking partners over the residual value of its GPUs. The chips Nvidia sells to its partners are used as collateral for the debt, so if they retain less value than Nvidia claims, Nvidia will have to cover more of the default risk itself.

NVDA Nvidia$214.13-$3.10 (-1.43%)

NASDAQ · As of 4:00 PM ET 10/16/26

The chipmaker is reportedly in talks with insurance companies about offloading some of the liability. Either way, it's a drag on Nvidia's finances in order to keep growing its sales. What's more, the bond market is saying those loans may be riskier than Nvidia originally thought.

That risk will fall to Nvidia by extension. The good news for investors is that the market already appears to be pricing in the risk of such financial pressure. Investors currently pay just 23 times forward earnings expectations for the stock, which is a low price for a company that just grew its bottom line by 126% year over year. The bond market just showed exactly why investors probably shouldn't be willing to pay more than that, though.

Adam Levy has positions in Alphabet, Amazon, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.

Nvidia's (NVDA -1.43%) rapid ascent to the world's most valuable enterprise might be unlike anything the market has ever seen. In the past five years, its share price has produced an incredible 899% gain (as of Oct. 15). With that return, a $10,000 investment would be worth $100,000 today.

The driver of this has been, unsurprisingly, artificial intelligence (AI). Nvidia's graphics processing units are the leading chips for training and running AI models. And these hardware devices are a hot commodity among the company's customers. Nvidia's data center revenue soared 117% year over year to $89 billion last fiscal quarter (Q2 2027 ended July 26).

A burgeoning industry position in the middle of a generational technology shift is an easy sell to investors right now. History says this AI stock tends to perform well in November, so maybe now is a good time to buy shares. But there's one thing that could break that pattern of positive returns.

Image source: The Motley Fool.

November 2025 was the only negative return This decade, Nvidia has been a compelling portfolio addition in November. In November 2020, shares were up 7%. In November 2021 and 2022, they jumped more than 25%. November 2023 saw a 15% increase, followed by a more muted 4% gain in November 2024.

The bears finally cheered last year. During the 11th month of 2025, Nvidia stock dipped 13%.

Nvidia optimists will take the average return of 13% and conclude that the share price will rise by that much this November. On the other hand, the naysayers will point to the clear deterioration in the stock's monthly performance in recent years. They'll assume shares are set to fall in November.

Investors shouldn't jump to any conclusions, however. The macroeconomic backdrop, as well as industry conditions, seem to have been anything but stable. Then there's market sentiment, which is constantly shifting based on how the investment community is feeling at any particular moment. November could bring anything.

NVDA Nvidia$214.13-$3.10 (-1.43%)

NASDAQ · As of 4:00 PM ET 10/16/26

Hyperscalers are Nvidia's key demand driver Let's still assume that there's a higher probability that Nvidia posts a positive return compared to a loss in November. Instead of taking a victory lap, consider what could break that pattern of upbeat results. In my view, it comes down to one thing.

Nvidia's most important customer cohort contains the five big hyperscalers. Combined, Alphabet, Microsoft, Amazon, Meta Platforms, and Oracle, as well as other hyperscalers, contributed $49 billion to data center segment sales, which as mentioned, totaled $89 billion in the most recent fiscal quarter. These customers are spending tremendous sums of capital to build AI-related technical infrastructure.

The amount of money they allocate to Nvidia products and services depends on how much momentum their businesses have. Specifically, we've seen cloud revenue accelerate for Amazon Web Services, Microsoft Azure, Google Cloud, and Oracle Cloud Infrastructure in recent quarters. Hyperscaler backlogs have exploded, measured cumulatively at more than $2 trillion.

That's an immediate demand signal that helps to alleviate investor concerns about Nvidia's own business strength. Four of the top five hyperscalers will report their third-quarter financial results in the next two weeks. Investors should continue to pay close attention to numbers and commentary related to how their cloud segments perform.

The logic is straightforward. Slower cloud growth gives hyperscalers less reason to keep expanding capital expenditures (capex) at the current pace. And any cuts to forecast capex will negatively impact Nvidia's data center business. Furthermore, market sentiment might plummet.

If the growth decelerates in Q3, it's not exactly a reason to panic. That doesn't automatically start a trend. And the view is that AI is still in the early innings. However, a slowdown could drive fears that the AI boom is starting to cool. That could pressure Nvidia shares.

Covington Investment Advisors Inc. boosted its position in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 2.1% during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 163,112 shares of the computer hardware maker’s stock after purchasing an additional 3,413 shares during the quarter. NVIDIA makes up 4.2% of Covington Investment Advisors Inc.’s portfolio, making the stock its 4th biggest holding. Covington Investment Advisors Inc.’s holdings in NVIDIA were worth $32,637,000 at the end of the most recent quarter.

Several other large investors also recently bought and sold shares of NVDA. Jupiter Topco LLC acquired a new stake in shares of NVIDIA in the second quarter valued at approximately $16,156,076,000. Van ECK Associates Corp raised its position in shares of NVIDIA by 34.7% in the 2nd quarter. Van ECK Associates Corp now owns 75,849,721 shares of the computer hardware maker’s stock worth $15,176,771,000 after buying an additional 19,522,304 shares during the period. Amundi raised its position in shares of NVIDIA by 10.4% in the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock worth $23,329,141,000 after buying an additional 12,575,177 shares during the period. SEB Asset Management AB purchased a new position in shares of NVIDIA in the 1st quarter worth $1,692,807,000. Finally, Employees Provident Fund Board acquired a new position in NVIDIA in the fourth quarter valued at $1,243,336,000. Institutional investors and hedge funds own 65.27% of the company’s stock.

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

Positive Sentiment: New RTX Spark laptops expand NVIDIA’s addressable market. Systems from ASUS, Dell, HP, Lenovo, Microsoft and MSI are now available starting at $2,599, combining Blackwell graphics, up to 128GB of memory and local AI capabilities. The launch could create a new consumer and developer revenue stream beyond data centers. NVIDIA RTX Spark PCs Available Today Positive Sentiment: Automotive and enterprise adoption continues. Volvo expanded its partnership with NVIDIA for automated-driving systems, while Adobe is integrating NVIDIA technology across Photoshop, Premiere and other creative tools. These agreements support longer-term demand for NVIDIA hardware and software. Volvo Cars expands automated driving partnership Positive Sentiment: Supply-chain investment and customer deployments remain strong. Taiwan is reportedly considering as much as $4 billion for Texas industrial parks serving NVIDIA suppliers, and customers continue deploying Blackwell systems. The developments reinforce demand, although they may take time to affect revenue. Taiwan Texas industrial parks Neutral Sentiment: NVIDIA is broadening its software and AI-model ecosystem. Paid offerings such as AI Enterprise and Mission Control, along with Nemotron open models and partnerships with AI startups, could make earnings less dependent on hardware. However, the articles provide no near-term financial contribution. Negative Sentiment: AI financing concerns are the main pressure. CoreWeave’s debt has reportedly traded at distressed yields, raising questions about whether highly leveraged customers can continue funding data-center expansion. Higher Treasury yields and inflation concerns are also making large AI projects more expensive. CoreWeave financing worries Negative Sentiment: Investors are questioning AI growth expectations. OpenAI’s reported $50 billion revenue run rate was below the roughly $68 billion previously anticipated, prompting concern that AI demand may mature more slowly. Microsoft’s development of custom Maia chips also highlights the risk of customers developing alternatives to NVIDIA GPUs. OpenAI revenue expectations Negative Sentiment: Reported insider selling adds a sentiment overhang. Recent data showed NVIDIA insiders made numerous sales and no open-market purchases over the past six months, though such transactions may reflect planned diversification rather than a change in business outlook. Insider Activity at NVIDIA In other news, Director Mark A. Stevens sold 622,239 shares of NVIDIA stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $231.62, for a total value of $144,122,997.18. Following the transaction, the director owned 2,336,531 shares of the company’s stock, valued at $541,187,310.22. This trade represents a 21.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Timothy S. Teter sold 30,460 shares of the firm’s stock in a transaction on Monday, September 21st. The stock was sold at an average price of $222.80, for a total value of $6,786,488.00. Following the completion of the transaction, the executive vice president directly owned 2,687,660 shares of the company’s stock, valued at approximately $598,810,648. This trade represents a 1.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,766,118 shares of company stock valued at $399,450,353 over the last ninety days. Insiders own 3.94% of the company’s stock. NVIDIA Stock Down 1.4% Shares of NVIDIA stock opened at $214.13 on Friday. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14. NVIDIA Corporation has a fifty-two week low of $164.27 and a fifty-two week high of $243.37. The business has a 50-day moving average price of $223.20 and a 200 day moving average price of $211.10. The firm has a market cap of $5.16 trillion, a P/E ratio of 31.48, a P/E/G ratio of 1.67 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA – Get Free Report) last released its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, topping analysts’ consensus estimates of $2.09 by $0.13. The business had revenue of $96.22 billion for the quarter, compared to analysts’ expectations of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The company’s revenue for the quarter was up 105.9% compared to the same quarter last year. During the same quarter last year, the company earned $1.05 EPS. On average, sell-side analysts forecast that NVIDIA Corporation will post 9.27 earnings per share for the current fiscal year.

NVIDIA declared that its board has approved a stock repurchase plan on Monday, September 28th that permits the company to buy back $150.00 billion in outstanding shares. This repurchase authorization permits the computer hardware maker to purchase up to 2.8% of its shares through open market purchases. Share repurchase plans are often a sign that the company’s leadership believes its shares are undervalued.

NVIDIA Announces Dividend The firm also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were given a $0.25 dividend. The ex-dividend date was Thursday, September 10th. This represents a $1.00 annualized dividend and a yield of 0.5%. NVIDIA’s payout ratio is 12.64%.

Wall Street Analyst Weigh In A number of equities research analysts have issued reports on the company. China Renaissance boosted their price target on NVIDIA from $319.00 to $330.00 and gave the company a “buy” rating in a research report on Monday, August 31st. HSBC raised their price objective on NVIDIA from $360.00 to $365.00 in a report on Thursday, August 27th. Rothschild & Co Redburn raised their price objective on NVIDIA from $300.00 to $325.00 in a report on Thursday, August 27th. Phillip Securities lifted their price objective on NVIDIA from $285.00 to $300.00 and gave the company a “buy” rating in a research note on Monday, August 31st. Finally, Rosenblatt Securities reiterated a “buy” rating and set a $390.00 target price on shares of NVIDIA in a report on Tuesday, September 29th. Five investment analysts have rated the stock with a Strong Buy rating, forty-nine have assigned a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat.com, NVIDIA currently has a consensus rating of “Buy” and a consensus target price of $321.89.

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NVIDIA Profile (Free Report)

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

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

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The "Magnificent Seven" stocks have powered the S&P 500 higher over the past several years, thanks to their leadership in the technology space and, in many cases, their prominence in the high-potential area of artificial intelligence (AI). These companies operate across a range of specialty areas, from smartphones to social media, and each dominates its field -- and has established a strong track record of revenue growth over time.

You would expect such stocks to be particularly expensive after their gains in recent years. But that isn't the case. In fact, one stands out as a once-in-a-decade buying opportunity, as the cheapest of the "Magnificent Seven," and it's also close to its own valuation low. This AI stock has soared more than 900% over the past five years and is well-positioned for further gains as the AI story continues to unfold. Let's check out this surprisingly cheap stock to buy now, before the price goes up.

Image source: Getty Images.

Seven well-known tech giantsSo, first, let's take a quick look at the "Magnificent Seven." Most of us are probably familiar with these names, as they have built their reputations and businesses over time, and in most cases, their products are in the public eye. These companies are: Apple, Amazon, Alphabet, Meta Platforms, Microsoft, Nvidia (NVDA -1.43%), and Tesla.

Investors have rushed to get in on these stocks in recent years to bet on the AI story and technology in general. At times, valuations reached high levels, but today, many of them, in spite of the positive stock performance, are trading at reasonable prices. This is as earnings have also taken off.

And the best bargain of the bunch just so happens to be the biggest AI winner of all, at least so far, and that's Nvidia. The company trades for 23x forward earnings estimates, making it even cheaper than Meta, a stock that's been among the cheapest of the "Magnificent Seven" in recent years.

META PE Ratio (Forward) data by YCharts

Now, here's why I think such levels won't last and that this is a once-in-a-decade buying opportunity. We'll start by talking about the business Nvidia has built. The company is known for its graphics processing units (GPUs), the chips needed for essential AI tasks like the training of models. The GPU and Nvidia's related products and services have generated enormous earnings growth, with revenue and profit each climbing in the double and triple digits quarter after quarter. In the latest period, they reached $96 billion and $59 billion, respectively.

Why customers like the fastest GPUsCustomers rush to Nvidia because its GPUs are the fastest, and this is a major plus -- speed equals efficiency and over time may lower costs. Nvidia has expanded its repertoire as the AI boom has evolved, positioning itself to win in the upcoming phases of growth, and, with this in mind, it recently made a key move.

NVDA Nvidia$214.13-$3.10 (-1.43%)

NASDAQ · As of 4:00 PM ET 10/16/26

Nvidia has entered the stand-alone central processing unit (CPU) market as CPUs are seen as the key chips powering agentic AI. This involves AI handling real problems and taking multi-step actions, and it's viewed as a big growth driver in the coming years. Nvidia says the stand-alone CPU market is worth $200 billion, and the company aims to become a leader.

So, Nvidia's explosive growth in the early stages of the AI boom may not be the end of the story. The company could be heading for another big wave of growth as agentic AI use gathers momentum. Nvidia is in the process of rolling out its first CPUs and expects $20 billion in revenue from them this year alone. This offers us reason to be optimistic about what's ahead.

While Nvidia's explosive growth may keep its valuation somewhat in check, I still see today's level as exceptionally cheap -- and possibly a once-in-a-decade opportunity for growth investors looking for a long-term AI victory.

OpenAI changed the world four years ago when it launched its artificial intelligence (AI) model, ChatGPT, sparking an AI revolution that led to the emergence of multiple competing models. It recently postponed its plans to go public, which means investors don't have access to its financial data beyond what it chooses to disclose. Since it's not a public company, its growth rates aren't directly relevant to investors, but many still track them to gauge the pace of AI development more broadly.

For example, if companies like OpenAI and rival Anthropic, the maker of the Claude AI model, are growing rapidly, they'll likely need more data center processing power. That would be great news for Nvidia (NVDA -1.43%), which supplies a large fraction of the processors that power data centers.

Nvidia CEO Jensen Huang. Image source: Getty Images.

Conversely, if it looks like demand for AI accelerator chips is waning, the market sours on Nvidia, and that's what happened last week. OpenAI said it had a $50 billion revenue run rate, $18 billion less than the figure that was previously circulating.

Several AI stocks tanked on the news, including Nvidia, which is down 4% since the news came out. That might not sound like a lot, but for a $5 trillion company, it translates into $200 billion. Should retail investors view this as a buying opportunity?

Nvidia isn't the only AI chipmaker around, but its chips are critical providers of power for the high-level inference and reasoning that support AI functions. That means all large models require Nvidia chips and, increasingly, full Nvidia compute systems. It recently launched its latest platform, Vera Rubin, which combines Rubin graphics processing units (GPUs), Vera central processing units (CPUs), large quantities of high bandwidth memory, and other hardware to deliver high processing power.

NVDA Nvidia$214.13-$3.10 (-1.43%)

NASDAQ · As of 4:00 PM ET 10/16/26

The company's revenue growth has recently accelerated, with the top line more than doubling year over year in its fiscal 2027 second quarter (which ended July 26). Management already provided fiscal 2028 guidance for 70% growth, which would be a serious feat given how large the company already is.

Is Nvidia a bargain right now?
That 4% drop doesn't on its own create an incredible buying opportunity. However, it might be a good time to buy the stock if you've been planning to anyway.

The more pressing concern is what the market is actually worried about: whether OpenAI's news is actually bad news for Nvidia. There's some risk there that investors should keep in mind.

Nvidia stock is well-priced right now, trading at less than 14 times forward one-year earnings. I wouldn't make it the central component of your portfolio, but Nvidia looks like a buy right now.

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Fine-tuned NVIDIA Nemotron 3.5 Super VL delivered strongest overall performance based on Navan’s internal evaluation with lowest latency and significant efficiency

PALO ALTO, Calif.--(BUSINESS WIRE)--Navan (NASDAQ: NAVN), the global AI-powered business travel and expense platform, today announced that NVIDIA Nemotron 3.5 Super VL is now powering several of its AI travel agents in production. Just three weeks after receiving early access and beginning its work with NVIDIA, Navan trained and deployed the model.

The deployment is the latest example of Navan’s open-model strategy: evaluating models for specific travel tasks, adapting them with Navan’s travel expertise, and self-hosting them to maintain control over performance, cost, and reliability.

Before deployment, Navan internally evaluated Nemotron 3.5 Super VL against its self-hosted production baseline and other models using consistent prompts, tools, travel scenarios and criteria. After fine-tuning with NVIDIA NeMo AutoModel VLM LoRA training recipe, Nemotron 3.5 Super VL delivered the strongest overall performance, beating or tying every competing model on six of seven measures, including having the lowest latency. The model is now in production and powering customer conversations at a lower cost while delivering greater value to Navan users.

“Building reliable agentic travel systems involves much more than choosing a model, but continuously iterating to improve and solve real-world problems,” said Ilan Twig, co-founder and CTO of Navan. “We’re grateful to NVIDIA for early access to Nemotron 3.5 Super VL, which shows how open models can help us move faster, maintain control, and deliver meaningful value without compromising quality.”

Navan combines open and closed models to build AI travel agents that understand what travelers want, follow policies, and use the right tools to get the job done.

About Navan

Navan (NASDAQ: NAVN) is the global AI-powered business travel and expense platform that makes travel easy for travelers. From finding flights and hotels, to automating expense reconciliation, with 24/7 support along the way, Navan delivers an intuitive experience travelers love and finance teams rely on. See how Navan customers benefit and learn more at navan.com.

Forward-Looking Statements

All statements in this press release other than statements of historical fact could be deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are often identified by words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “project,” “will,” or similar expressions. Such statements are subject to risks, uncertainties and other factors that may cause actual results to be materially different from any future results expressed or implied by the forward-looking statements. These risks and other factors include the risks described under the caption “Risk Factors” in Navan’s Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) on September 10, 2026, as they may be updated by Navan’s subsequent filings with the SEC. Except as required by law, Navan undertakes no obligation, and does not intend, to update these forward-looking statements.

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Jensen Huang admits Nvidia can only fill about 70% of current demand, and Taiwan's government just backed a multibillion-dollar bet that moving suppliers to Texas soil changes that equation for both Nvidia and TSMC.

Supply is the tightest constraint on Nvidia (NASDAQ:NVDA | NVDA Price Prediction). On its August 26, 2026 earnings call, CEO Jensen Huang said, “our entire supply chain is challenged,” and Taiwan now wants to move part of that chain to Texas.

In remarks reported October 16, 2026, Taiwan’s economics minister, Kung Ming-hsin, spoke. He said the government supports a plan for U.S. industrial parks, starting in Texas, with the first complex costing up to $4 billion. The parks target smaller suppliers that serve Taiwan Semiconductor Manufacturing (NYSE:TSM) and AI server assemblers such as Foxconn, placing them near Nvidia and other data center hardware makers.

The two names dropped on October 15, 2026, during a wider tech selloff over AI funding worries. Nvidia closed at $217.23, down 1.84%, and TSMC’s U.S. shares closed at $422.25, down 1.80%.

If you own either stock, the question is whether a supplier park matters to companies this large. It matters more to TSMC’s U.S. ecosystem than to Nvidia’s earnings.

What Taiwan Has Committed The plan is a statement of intent, backed by government support. The Taiwan Electrical and Electronic Manufacturers’ Association, an industry group, is expected to raise the money, and the government will offer loan guarantees, visas, and land access.

Kung Ming-hsin put each site’s estimated cost at $2 billion to $4 billion, and the government wants more than one U.S. location but has not set a number. Nvidia, TSMC and Foxconn have made no commitment to the parks, and no participating suppliers, schedule or customer contracts were named.

What Nvidia Gains From Local Suppliers AI servers rely on smaller makers of power supplies, cooling systems, circuit boards, connectors and chassis. Placing them near U.S. assembly cuts shipping time and tariff exposure, which also helps Nvidia’s standing in Washington (we profiled seven of these non-chip AI infrastructure suppliers, from power to cooling, in a free report you can grab here).

One site is small, with $96.22 billion in quarterly revenue and $279 billion in supply commitments. U.S. production usually costs more, although forecast gross margin of about 74% suggests Nvidia has room to pass those costs to customers.

Taiwan also addressed AI hardware policy. Shipping restricted AI hardware to mainland China will become “a criminal offense under the Foreign Trade Act.” That lowers the risk of leakage, and Nvidia’s guidance already excludes Data Center compute revenue from China.

Why TSMC Sits Closer to the Buildout TSMC’s planned U.S. investment reached $265 billion after it added $100 billion for Arizona in July. A Texas supplier park is small beside that, but it puts parts makers between the Arizona fabs and the server assemblers.

TSMC is also studying Texas. Describing capacity options outside Arizona on its October 15, 2026 call, management said, “And Texas is one,” and added that teams are evaluating options, with no investment announced.

Permitting, U.S. labor costs, and whether enough suppliers sign up are all unresolved. Larger Taiwanese firms are already moving on their own. Quanta Computer won approval to spend $973 million on server assembly in Tennessee, and Wistron won approval for $146 million to upgrade a Texas plant.

Taiwan’s semiconductor exports hit a record $87.22 billion in September, up 60.9% from a year earlier, so the demand exists now. The parks assume it holds up long enough to cover higher U.S. costs.

How Texas Supplier Parks Could Shape the Outlook for Nvidia and TSMC Supply remains the main limit on Nvidia’s growth. Huang said the company has supply for about 70% of demand, so added U.S. capacity helps marginally.

TSMC has more direct exposure to the reshoring theme, because it runs the fabs a Texas cluster would serve. Its $1.95 trillion market value, against Nvidia’s $5.25 trillion, also gives local suppliers more weight in its story.

The signal to check is an announcement naming the first suppliers in a Texas park, along with a confirmed site and schedule. Until then, Kung Ming-hsin’s $4 billion figure is only an upper estimate for one site.

Contact [email protected] for any questions or corrections.

News Summary:

NVIDIA RTX Spark laptops are available today from ASUS, Dell, HP, Lenovo, Microsoft and MSI — with additional systems to follow — bringing RTX acceleration and NVIDIA’s full-stack AI platform to slim, premium Windows PCs for creation, gaming and local AI.RTX Spark delivers up to 1 petaflop of AI compute and up to 128GB of unified memory — enabling AI developers, creators and gamers to run frontier AI models locally, render 90GB+ 3D scenes and play AAA games at 1440p at over 100 frames per second, all on a slim, portable device.Day-one support across local AI agents, creative apps and major games helps users put RTX Spark to work immediately — from editing with Adobe Photoshop and Premiere to running Hermes and OpenClaw agents and playing titles including Gears of War: E-Day and NBA 2K27 with NVIDIA DLSS 5.
SANTA CLARA, Calif., Oct. 16, 2026 (GLOBE NEWSWIRE) -- NVIDIA today announced the availability of NVIDIA RTX Spark™ laptops, bringing together RTX graphics and NVIDIA’s full-stack AI platform in slim, premium Windows PCs for accelerated creation, immersive gaming and powerful local AI — rolling out from ASUS, Dell, HP, Lenovo, Microsoft and MSI.

Combining decades of NVIDIA innovation into a single superchip, RTX Spark delivers up to 128GB of unified memory and 1 petaflop of FP4 AI performance to run large language models and AI agents locally. On a single device, creators, developers and gamers can move seamlessly between their everyday workflows and emerging AI agents on the familiar Windows platform.

“RTX Spark brings the power of NVIDIA AI, RTX graphics and CUDA together with Microsoft Windows in one PC for creating, gaming and running personal AI agents,” said Jensen Huang, founder and CEO of NVIDIA. “Together with Microsoft and our PC industry partners, we’re bringing creators, developers and gamers a new generation of Windows PC, built for the work they do today and the personal AI agents they’ll work with next.”

“We’re building Windows to be the platform for hybrid intelligence, where AI can run locally when it makes sense and reach the cloud when needed,” said Yusuf Mehdi, executive vice president at Microsoft. “Windows PCs powered by RTX Spark unlock powerful new local compute for creators and developers, expanding what they can create, build and run on Windows.”

A New Beginning for Windows PCs
RTX Spark brings NVIDIA’s accelerated computing platform to a new generation of portable Windows PCs.

At its foundation is a single superchip combining an NVIDIA Blackwell RTX GPU and an NVIDIA Grace CPU with up to 128GB of unified memory and up to 1 petaflop of FP4 AI performance. That shared memory allows demanding creative projects and local AI models to run simultaneously and efficiently. MediaTek collaborated with NVIDIA on the custom CPU design, contributing to its best-in-class power efficiency, performance and connectivity.

All of NVIDIA’s platform innovation comes together in RTX Spark — NVIDIA CUDA®, DLSS, OptiX™, Reflex, G-SYNC®, TensorRT™ and hardware-accelerated video — in a device that fits in a messenger bag. Slim, efficient designs and all-day battery life bring these capabilities wherever users create, develop and play.

From Tool to Teammate
RTX Spark gives users the capabilities to deploy local AI agents that turn the PC from a tool into an everyday teammate that can complete tasks, generate assets and write code.

Users can put agents to work immediately. Guided setup and easy installers help users get started with agents, including GitHub Copilot, Hermes, OpenClaw, Perplexity, Pi and WorkBuddy, without requiring a command line.

“Personal AI becomes more useful when it can work with your tools and help get things done,” said Dillon Rolnick, CEO at Nous Research, creators of Hermes Agent. “We brought Hermes to RTX Spark so people can put open AI models and agents to work locally on a Windows laptop, with greater control over their data and the freedom to shape AI around their own workflows.”

NVIDIA’s models and tools build on that ecosystem. Nemotron 3.5 Bolt 74B-A9B 24GB, a 74-billion-parameter model optimized for tool calling and multistep tasks, brings more capable local AI to supported RTX Spark configurations.

The NVIDIA OpenShell™ secure runtime and Microsoft Execution Containers help users control agent permissions, while NVIDIA agent skills let compatible agents work with tools including NVIDIA Broadcast, RTX Remix and Omniverse™ libraries. For example, compatible agents can adjust Broadcast effects during a stream or batch-process recorded clips, all on a local PC.

That experience extends across devices with NVIDIA PAIR, letting RTX Spark serve AI inference to compatible Windows, Linux and macOS computers on a home network while keeping other PCs free for creating and gaming.

Create, Innovate, Play
RTX Spark helps creators move from an idea to finished content wherever they work, with the ability to edit 8K 4:2:2 video and render large 3D scenes up to 90GB, even when unplugged.

With the arrival of RTX Spark, Adobe is enhancing its industry-leading creative applications, including Photoshop, Premiere and Substance 3D, with NVIDIA TensorRT acceleration in AI-editing features. In Premiere, creators can work faster across some of the most intensive parts of post-production, from playback and rendering to effects, color grading and more. Photoshop and Premiere offer native RTX Spark support through beta releases available at launch, with Substance coming soon.

“Creatives are pushing the boundaries of what’s possible across image, video, audio and 3D, and they need tools that can keep up with their ambitions,” said Deepa Subramaniam, vice president of product marketing for creative professionals at Adobe. “By combining NVIDIA’s advanced computing technology with Adobe’s industry-leading creative applications, we’re delivering enhanced experiences that empower creatives to bring their ideas to life with greater power and speed.”

For enhancing recorded content, NVIDIA Broadcast 2.3 lets creators remove background noise from existing recordings and shape their voice with Studio Voice Mic Profiles. Beta RTX Video features enable up to 4K super resolution and 4x frame generation.

In ComfyUI, new RTX Video nodes can turn 15 frames-per-second (fps) AI-generated video into smoother 60 fps footage and convert it to high dynamic range without requiring per-use cloud inference charges.

Code, Test and Deploy With One Machine
As AI shifts software development from writing code to directing agents, work often spans a laptop, a cloud AI model and a cloud virtual machine for testing.

RTX Spark brings coding, testing and prototyping onto one machine. Native CUDA support lets developers run models and agents locally, keeping locally processed code and context on their device with a path to deploy across more than 150 million NVIDIA RTX™ AI PCs and NVIDIA GPUs in the cloud. Windows Developer Config streamlines setup, while Windows Subsystem for Linux provides familiar Linux tools used in cloud development.

NVIDIA Skills, an open source GitHub repository, teaches agents to use NVIDIA CUDA-X™ tools and libraries, helping developers build NVIDIA-accelerated apps without CUDA expertise.

NVIDIA and Microsoft have readied developer tools for RTX Spark, including the first PyTorch-CUDA build for Windows on Arm, the first Python build that is native by default, the first native Conda installer, support for 97% of the top 15,000 Python packages, and coding agents such as GitHub Copilot and Pi.

Game Ready With Hundreds of Games
RTX Spark brings immersive gaming to the same portable Windows PC used for creating and developing, with NVIDIA Blackwell RTX graphics enhancing image quality and accelerating performance in supported titles.

Launch support spans single-player adventure and online multiplayer games including Cyberpunk 2077, Fortnite, Gears of War: E-Day, Marvel Rivals, World of Warcraft and NBA 2K27.

NBA 2K27 showcases that immersive experience, using NVIDIA DLSS 5 technology with the 3D-Guided Neural Rendering feature to enhance lighting and material details for greater realism. A new 2x faster AI model, available today, boosts DLSS 5 frame rates by up to 1.4x. NVIDIA’s suite of RTX gaming technologies — DLSS, ray tracing, G-SYNC and Reflex — bring sharper visuals, smoother gameplay and greater responsiveness.

“Bringing the energy of NBA basketball to life means making every detail feel authentic,” said Peter Kavic, senior producer for visual concepts at 2K. “We worked with NVIDIA to bring ‘NBA 2K27’ to RTX Spark, using DLSS 5 with 3D-Guided Neural Rendering to deliver richer lighting and boost the visual quality of materials to deliver a jump in photorealism on a new generation of slim laptops and compact desktops.”

Availability
RTX Spark laptops are available globally today from ASUS, Dell, HP, Lenovo, Microsoft and MSI through their websites and major retailers, starting at $2,599, with a limited-time promotion for new Perplexity users. Pricing and configurations vary by region.

The lineup of RTX Spark laptops includes ASUS ProArt P14 and P16, Dell XPS 16, HP OmniBook Ultra and OmniBook X 14, Lenovo Yoga Pro 9n, Microsoft Surface Laptop Ultra, and MSI Prestige N16 Flip AI+ and Prestige N16.

About NVIDIA
NVIDIA (NASDAQ: NVDA) is the world leader in AI and accelerated computing.

For further information, contact:
Stephenie Ngo
Consumer PR
NVIDIA Corporation
[email protected]  

Certain statements in this press release including, but not limited to, statements as to: 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 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.

© 2026 NVIDIA Corporation. All rights reserved. NVIDIA, the NVIDIA logo, and other NVIDIA product and service names are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and other countries and regions. Other company, product, and service names may be trademarks of the respective companies with which they are associated.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/69194cf4-c124-4040-b96b-1db2655172fd

Lenders are getting nervous about CoreWeave (CRWV +5.94%), a cloud company that rents out artificial intelligence (AI) chips made by Nvidia (NVDA -1.84%). In June, CoreWeave sold $1.25 billion in unsecured notes due 2032 at face value, with a 9.625% coupon. On Tuesday, Oct. 13, the yield on these notes reportedly reached almost 15% before ending at a record of around 14.5%.

A bond's yield climbs when the price drops. Put another way, bond buyers now want much more to lend to CoreWeave than they did four months ago.

The stock followed on Wednesday. CoreWeave shares dropped about 15% as of this writing, and Nvidia, which is both CoreWeave's chip supplier and one of its shareholders, fell about 3% to roughly $221.

Should Nvidia investors worry? I don't think so -- at least not about CoreWeave itself. What Nvidia directly has riding on CoreWeave turns out to be small next to what the chipmaker earns.

Image source: Nvidia.

CoreWeave's borrowing problemCoreWeave's trouble doesn't seem to be demand. Showing how quickly the business is still growing, CoreWeave's second-quarter revenue more than doubled year over year to around $2.6 billion. But the company lost $49 million on an operating basis, and its net interest expense of $640 million was more than twice what it was in the year-ago quarter. Its total debt was around $35.6 billion at midyear.

Simply put, CoreWeave is still borrowing to buy its chips, and it doesn't yet make enough from operations to pay its interest costs.

CRWV CoreWeave$69.69+$3.91 (+5.94%)

NASDAQ · As of 4:00 PM ET 10/15/26

How much does Nvidia have riding on CoreWeave?The most direct link is Nvidia's stake. Nvidia owned about 47.2 million CoreWeave shares on June 30, according to its latest holdings report. That position was worth about $4.7 billion then.

At Wednesday's price of around $66, it's worth more like $3.1 billion. And the roughly 23 million shares Nvidia bought in January, for $87.20 each, are off about 24%.

Nvidia also has a capacity deal with CoreWeave. In September 2025, the two companies signed an order with an initial value of $6.3 billion. Under it, Nvidia must buy any CoreWeave cloud capacity that CoreWeave's own customers don't use, through April 2032, subject to some conditions.

Of course, this backstop might cost Nvidia the most if CoreWeave's customers leave, which arguably isn't happening while revenue is doubling.

Nvidia's latest quarterly filing doesn't name CoreWeave at all. But it does show $36 billion in commitments under deals with AI cloud partners, usually six years long, and up to $3.5 billion in guarantees on some of those partners' data center leases. It also lists a maximum possible loss of $4.7 billion from certain stakes in infrastructure financiers (companies that help fund AI infrastructure).

Together, those items come to about $44 billion spread across several years -- and the filing doesn't say how much involves CoreWeave. (The filing's far bigger guarantee, up to $105 billion on data center leases linked to an OpenAI affiliate, is another matter.)

For context, Nvidia made $63.7 billion in operating income in its second quarter of fiscal 2027 alone (the three months ended July 26, 2026).

Nvidia can absorb a CoreWeave problemCoreWeave's purchases might be a small part of Nvidia's sales, too. CoreWeave spent around $14.1 billion on property and equipment in the first half of 2026, and not all of it went to Nvidia. In roughly the same period, Nvidia's revenue was around $178 billion.

Even if every dollar of CoreWeave's spending had gone to Nvidia, it'd be under 8% of Nvidia's sales.

Meanwhile, Nvidia's profits are still climbing quickly. Its operating income grew 124% year over year in fiscal Q2, and it was up around 19% from $53.5 billion in fiscal Q1.

NVDA Nvidia$217.23-$4.07 (-1.84%)

NASDAQ · As of 4:00 PM ET 10/15/26

Yes, the bigger risk isn't CoreWeave alone. If lenders pull back from every debt-funded AI cloud company at once, orders for Nvidia's chips might slow.

Yet the stock arguably already assumes some slowdown. Nvidia's price-to-earnings ratio is only around 14, using analysts' average earnings estimate for fiscal 2028 (Nvidia's next fiscal year). I think that's a low price for a company whose operating income just more than doubled.

In the end, CoreWeave's bond prices are a fair warning of how much of the AI build-out runs on debt. But Nvidia's own exposure to CoreWeave is small next to what the chipmaker earns in one quarter. I'd still buy Nvidia stock at this price, albeit in a size appropriate to the high-risk nature of a growth stock like this.

Germany plans a wide-ranging cooperation agreement with US chip maker Nvidia (NVDA.O) to ​boost the take-up of artificial intelligence ‌in German industry, business daily Handelsblatt said on Thursday, citing people familiar with the issue.

It said the ​deal would be announced next week ​at the Invest in Germany conference in ⁠Berlin, where Nvidia Chief Executive Jensen ​Huang will be a guest.

The aim of the ​deal would be two-fold, the newspaper said. Firstly, it would create the basis for physical AI tools, ​used in training robots or self-driving vehicles. ​Secondly, it would help to create high-performance AI models ‌for ⁠industry.

The newspaper said the agreement would involve investments in the hundreds of millions of euros.

It said the agreement would be formed ​around the SOOFI ​project - ⁠Sovereign Open Source Foundation Models - launched in Germany last year to ​develop large AI models in collaboration ​with ⁠research institutions, universities, and AI companies.

No comment was immediately available from the German government, which ⁠said ​last month it remained committed ​to further development of AI capacity to strengthen Europe's digital ​sovereignty.

Nvidia (NVDA -2.22%) is the leader in AI infrastructure, and it remains well positioned to be one of the biggest beneficiaries of the ongoing data center build-out over the next few years. As long as the tech sector's spending on new compute capacity continues to increase, Nvidia should turn in strong growth, and the stock should perform well. At today's price, a $5,000 investment would buy you about 22 shares.

Currently, all signs point to continued strong AI infrastructure capital expenditures over the next several years. JPMorgan Chase has projected that AI infrastructure capex will reach a whopping $1.4 trillion a year in 2030, while hyperscalers like Amazon, Alphabet, and SpaceX have all discussed the quick paybacks they are getting on their chip investments. Notably, graphics processing units (GPUs) have useful lifespans of about six years, so Nvidia should also benefit from a pretty predictable replacement cycle.

Let's explore where a $5,000 investment in the semiconductor stock could be in about four years.

NVDA Nvidia$216.40-$4.91 (-2.22%)

NASDAQ · As of 10:56 AM ET 10/15/26

A lot of potential upside ahead Analysts currently project that Nvidia's revenue will grow from $411.7 billion in its fiscal 2027 (which ends in January 2027) to nearly $1.2 trillion in its fiscal 2031 (which ends in January 2031). Its adjusted earnings per share (EPS), meanwhile, are forecast to rise from $9.31 this fiscal year to $28.79. If you expect that it will at that point be trading at a price-to-earnings (P/E) ratio in the range of 15 to 20 -- not an unreasonable level -- that would give it a stock price of between $432 and $575, representing roughly 90% to 150% upside. That would result in a 22-share position being worth between $9,500 and $12,650 by the end of 2029.

Image source: The Motley Fool.

However, Nvidia has consistently outpaced analysts' estimates by large margins over the past several years, and I think it has the potential to keep doing so.

To estimate how Nvidia could grow over the next four years, I have modeled its revenue growth to gradually slow from its current pace while its expenses rise 11% sequentially. I also project that its gross margins will gradually step down to approximately 70%, and I'm applying a 15% tax rate to its operating income. I also anticipate the company reducing its diluted outstanding share count by 2% a year through stock buybacks, which is a sensible capital return strategy given its strong free cash flow.

All this would lead to Nvidia generating over $1.9 trillion in revenue in its fiscal 2031 and adjusted earnings of around $979 billion, or almost $41.50 per share.

Below is a simple model of what its revenue and earnings growth could look like. All figures below are my own projections.

Metric Fiscal 2027

Fiscal 2028

Fiscal 2029

Fiscal 2030

Fiscal 2031

Revenue

$412 billion

$700 billion

$1.05 trillion

$1.47 trillion

$1.91 trillion

Revenue growth

90%

70%

50%

40%

30%

Gross profit

$309 billion

$518 billion

$767 billion

$1.06 trillion

$1.34 trillion

Adjusted operating expense

$35 billion

$53 billion

$81 billion

$123 billion

$186 billion

Operating income

$274 billion

$465 billion

$686 billion

$936 billion

$1.15 trillion

Net income

$233 billion

$395 billion

$583 billion

$796 billion

$979 billion

EPS

$9.66

$16.74

$24.69

$33.70

$41.47

Data source: Author's projections.

If we apply a P/E multiple in the 15 to 20 range to my projection for Nvidia's fiscal 2031 earnings, the stock would at that point trade between $620 and $830, representing approximately 175% to 270% potential upside. That would bring the value of 22 shares to between $13,640 and $18,260.

Nvidia has a lot of potential upside from both earnings-per-share growth and possible multiple expansion given its still-cheap valuation, which currently sits at a forward P/E of below 14.5, based on fiscal 2028 earnings expectations. While hyperscalers are likely to continue diversifying their AI chip supply chains and using more custom silicon, I think the biggest potential headwind to the stock hitting these levels would be an overall slowdown in AI infrastructure spending. That could be caused by things like supply chain bottlenecks, issues funding the build-out, or customers not seeing good returns on their investments, which so far hasn't been the case.

That said, given its potential upside, Nvidia is still a buy.

Livforsakringsbolaget Skandia Omsesidigt lifted its stake in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 0.7% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 1,347,275 shares of the computer hardware maker’s stock after purchasing an additional 9,900 shares during the period. NVIDIA makes up about 8.7% of Livforsakringsbolaget Skandia Omsesidigt’s investment portfolio, making the stock its biggest position. Livforsakringsbolaget Skandia Omsesidigt’s holdings in NVIDIA were worth $269,132,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors also recently modified their holdings of NVDA. J. Stern & Co. LLP raised its holdings in NVIDIA by 13,709.1% during the 4th quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker’s stock worth $23,454,297,000 after purchasing an additional 124,849,603 shares during the last quarter. Jupiter Topco LLC acquired a new position in NVIDIA during the 2nd quarter valued at about $16,156,076,000. Amundi boosted its stake in shares of NVIDIA by 10.4% in the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock valued at $23,329,141,000 after purchasing an additional 12,575,177 shares during the last quarter. SEB Asset Management AB bought a new position in shares of NVIDIA in the 1st quarter valued at about $1,692,807,000. Finally, Employees Provident Fund Board bought a new position in shares of NVIDIA in the 4th quarter valued at about $1,243,336,000. 65.27% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes A number of equities analysts have issued reports on the stock. BMO Capital Markets set a $340.00 price objective on shares of NVIDIA and gave the company an “outperform” rating in a research note on Thursday, August 20th. KGI Securities lifted their target price on shares of NVIDIA from $335.00 to $345.00 in a report on Thursday, August 27th. Itau BBA Securities dropped their target price on shares of NVIDIA from $256.00 to $218.00 in a research report on Wednesday, June 24th. Truist Financial increased their price target on NVIDIA from $307.00 to $346.00 and gave the company a “buy” rating in a research note on Thursday, August 27th. Finally, TD Cowen reissued a “buy” rating on shares of NVIDIA in a research note on Tuesday, August 18th. Five analysts have rated the stock with a Strong Buy rating, forty-nine have issued a Buy rating and one has given a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Buy” and an average target price of $321.89.

View Our Latest Report on NVDA Insiders Place Their Bets In other NVIDIA news, Director Mark Stevens sold 622,239 shares of NVIDIA stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $231.62, for a total value of $144,122,997.18. Following the transaction, the director owned 2,336,531 shares in the company, valued at $541,187,310.22. The trade was a 21.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Colette Kress sold 34,918 shares of the company’s stock in a transaction on Thursday, September 17th. The stock was sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the transaction, the chief financial officer owned 765,103 shares of the company’s stock, valued at $167,595,812.15. This trade represents a 4.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,766,118 shares of company stock worth $399,450,353 over the last three months. Insiders own 3.94% of the company’s stock.

NVIDIA Stock Down 3.2% Shares of NVDA stock opened at $221.30 on Thursday. NVIDIA Corporation has a 52-week low of $164.27 and a 52-week high of $243.37. The stock has a market cap of $5.33 trillion, a price-to-earnings ratio of 27.98, a PEG ratio of 1.77 and a beta of 2.22. The firm’s 50-day moving average is $223.43 and its 200-day moving average is $210.73. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59.

NVIDIA (NASDAQ:NVDA – Get Free Report) last announced its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping the consensus estimate of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The business had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. During the same quarter in the previous year, the firm posted $1.05 EPS. NVIDIA’s revenue was up 105.9% compared to the same quarter last year. Sell-side analysts predict that NVIDIA Corporation will post 9.25 EPS for the current year.

NVIDIA Dividend Announcement The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th were paid a dividend of $0.25 per share. The ex-dividend date was Thursday, September 10th. This represents a $1.00 annualized dividend and a yield of 0.5%. NVIDIA’s dividend payout ratio is presently 12.64%.

NVIDIA declared that its board has initiated a share repurchase program on Monday, September 28th that allows the company to buy back $150.00 billion in shares. This buyback authorization allows the computer hardware maker to repurchase up to 2.8% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s management believes its stock is undervalued.

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

Positive Sentiment: NVIDIA announced a five-year, $250 million compute commitment to support U.K. AI safety and security research. The initiative strengthens NVIDIA’s relationships with governments, universities and AI developers while promoting its hardware and software ecosystem. NVIDIA pledges $250 million to boost UK AI safety research Positive Sentiment: New ecosystem announcements highlighted continued demand for NVIDIA technology. LSEG is using NVIDIA GPUs to accelerate historical market-data processing, while NVIDIA introduced tools including cuPotential for molecular simulation and expanded collaborations in AI-defined chip manufacturing. LSEG teams up with NVIDIA for faster market data processing Positive Sentiment: State Street launched a sector ETF designed to give NVIDIA a 20.93% allocation, above the 15.41% weighting in its comparable fund, potentially creating incremental demand for NVDA shares. New State Street Sector ETFs Give Biggest Stocks Full Weight Neutral Sentiment: CEO Jensen Huang said NVIDIA would stop supplying chips to customers developing unsafe AI systems. The stance may improve regulatory and reputational positioning, although broader AI-safety concerns could increase scrutiny of the company and industry. Nvidia, Anthropic Weigh In On AI Safeguards Negative Sentiment: Investors are assessing competitive threats from Microsoft’s Maia 300 architecture and Intel’s lower-cost, air-cooled Crescent Island inference GPU. Custom accelerators and cheaper inference solutions could pressure NVIDIA’s pricing, growth assumptions and market share over time. Microsoft Just Unveiled a Brand-New AI Chip Negative Sentiment: IDC reportedly estimates NVIDIA’s China AI-chip market share has fallen to 34% as Huawei gains ground, underscoring export restrictions and rising local competition. Separately, investor Michael Burry is betting against chip stocks, reinforcing valuation and AI-spending concerns. NVIDIA’s China AI chip market share falls to 34% About NVIDIA (Free Report)

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

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

Read More Five stocks we like better than NVIDIA Tesla Wants to Make Its Own Chips—What Could Go Wrong? IREN Limited’s AI Pivot Gains Traction—But Can Its Data Centers Deliver? PBF Energy’s Stunning Rally Faces a Critical Test Citi Stock Falls Despite Earnings Beat: What Investors Need to Know 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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Rakuten Investment Management Inc. lifted its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 12.4% during the second quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 4,767,757 shares of the computer hardware maker’s stock after purchasing an additional 527,365 shares during the period. NVIDIA accounts for 2.7% of Rakuten Investment Management Inc.’s holdings, making the stock its 5th biggest holding. Rakuten Investment Management Inc.’s holdings in NVIDIA were worth $929,570,000 as of its most recent SEC filing.

Several other institutional investors also recently modified their holdings of NVDA. Boyd Wealth Management LLC increased its holdings in shares of NVIDIA by 273.4% during the second quarter. Boyd Wealth Management LLC now owns 9,145 shares of the computer hardware maker’s stock valued at $1,830,000 after acquiring an additional 6,696 shares in the last quarter. Ally Financial Inc. lifted its holdings in shares of NVIDIA by 10.3% in the 2nd quarter. Ally Financial Inc. now owns 172,000 shares of the computer hardware maker’s stock worth $34,415,000 after purchasing an additional 16,000 shares in the last quarter. Altshuler Shaham Ltd grew its position in NVIDIA by 6,451.9% in 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. Storen Legacy Partners LLC acquired a new stake in NVIDIA in the 4th quarter valued at $1,350,000. Finally, Baker Tilly Wealth Management LLC grew its position in NVIDIA by 7.4% in the 2nd quarter. Baker Tilly Wealth Management LLC now owns 71,898 shares of the computer hardware maker’s stock valued at $14,386,000 after purchasing an additional 4,958 shares during the period. Institutional investors own 65.27% of the company’s stock.

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

Positive Sentiment: NVIDIA announced a five-year, $250 million compute commitment to support U.K. AI safety and security research. The initiative strengthens NVIDIA’s relationships with governments, universities and AI developers while promoting its hardware and software ecosystem. NVIDIA pledges $250 million to boost UK AI safety research Positive Sentiment: New ecosystem announcements highlighted continued demand for NVIDIA technology. LSEG is using NVIDIA GPUs to accelerate historical market-data processing, while NVIDIA introduced tools including cuPotential for molecular simulation and expanded collaborations in AI-defined chip manufacturing. LSEG teams up with NVIDIA for faster market data processing Positive Sentiment: State Street launched a sector ETF designed to give NVIDIA a 20.93% allocation, above the 15.41% weighting in its comparable fund, potentially creating incremental demand for NVDA shares. New State Street Sector ETFs Give Biggest Stocks Full Weight Neutral Sentiment: CEO Jensen Huang said NVIDIA would stop supplying chips to customers developing unsafe AI systems. The stance may improve regulatory and reputational positioning, although broader AI-safety concerns could increase scrutiny of the company and industry. Nvidia, Anthropic Weigh In On AI Safeguards Negative Sentiment: Investors are assessing competitive threats from Microsoft’s Maia 300 architecture and Intel’s lower-cost, air-cooled Crescent Island inference GPU. Custom accelerators and cheaper inference solutions could pressure NVIDIA’s pricing, growth assumptions and market share over time. Microsoft Just Unveiled a Brand-New AI Chip Negative Sentiment: IDC reportedly estimates NVIDIA’s China AI-chip market share has fallen to 34% as Huawei gains ground, underscoring export restrictions and rising local competition. Separately, investor Michael Burry is betting against chip stocks, reinforcing valuation and AI-spending concerns. NVIDIA’s China AI chip market share falls to 34% NVIDIA Trading Down 3.2% NVIDIA stock opened at $221.30 on Thursday. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. NVIDIA Corporation has a fifty-two week low of $164.27 and a fifty-two week high of $243.37. The stock has a market cap of $5.33 trillion, a P/E ratio of 27.98, a PEG ratio of 1.77 and a beta of 2.22. The firm’s fifty day moving average price is $223.43 and its 200-day moving average price is $210.73. NVIDIA (NASDAQ:NVDA – Get Free Report) last announced its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, beating the consensus estimate of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The firm had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. During the same period in the prior year, the company earned $1.05 EPS. The company’s revenue was up 105.9% on a year-over-year basis. Equities research analysts forecast that NVIDIA Corporation will post 9.25 earnings per share for the current fiscal year.

NVIDIA declared that its board has authorized a share buyback program on Monday, September 28th that permits the company to repurchase $150.00 billion in shares. This repurchase authorization permits the computer hardware maker to buy up to 2.8% of its shares through open market purchases. Stock repurchase programs are usually an indication that the company’s management believes its shares are undervalued.

NVIDIA Dividend Announcement The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were issued a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date was Thursday, September 10th. NVIDIA’s dividend payout ratio is currently 12.64%.

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

Analysts Set New Price Targets Several brokerages recently issued reports on NVDA. DA Davidson reaffirmed a “buy” rating and set a $300.00 target price on shares of NVIDIA in a research report on Thursday, August 27th. Rosenblatt Securities reissued a “buy” rating and issued a $390.00 price target on shares of NVIDIA in a report on Tuesday, September 29th. Wedbush increased their price target on shares of NVIDIA from $330.00 to $345.00 and gave the company an “outperform” rating in a research report on Thursday, August 27th. Benchmark restated a “buy” rating and set a $335.00 price objective on shares of NVIDIA in a report on Thursday, August 27th. Finally, UBS Group reaffirmed a “buy” rating on shares of NVIDIA in a research report on Friday, October 9th. Five research analysts have rated the stock with a Strong Buy rating, forty-nine have issued a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of “Buy” and a consensus price target of $321.89.

Get Our Latest Stock Report on NVDA

About NVIDIA (Free Report)

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

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

Featured Articles Five stocks we like better than NVIDIA Tesla Wants to Make Its Own Chips—What Could Go Wrong? IREN Limited’s AI Pivot Gains Traction—But Can Its Data Centers Deliver? PBF Energy’s Stunning Rally Faces a Critical Test Citi Stock Falls Despite Earnings Beat: What Investors Need to Know 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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RIHO Partners LLC raised its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 32.3% in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 86,461 shares of the computer hardware maker’s stock after buying an additional 21,127 shares during the period. NVIDIA comprises approximately 9.7% of RIHO Partners LLC’s investment portfolio, making the stock its 5th biggest position. RIHO Partners LLC’s holdings in NVIDIA were worth $17,300,000 at the end of the most recent quarter.

A number of other hedge funds have also recently modified their holdings of NVDA. Lifetime Wealth Management P.C. bought a new stake in shares of NVIDIA during the fourth quarter worth $26,000. Longview Financial Advisors Inc. purchased a new stake in shares of NVIDIA during the first quarter valued at $27,000. Langley Wealth Management LLC bought a new position in shares of NVIDIA in the second quarter worth about $34,000. Phillip James Consulting Co. bought a new position in shares of NVIDIA in the first quarter worth about $40,000. Finally, Bard Associates Inc. grew its holdings in shares of NVIDIA by 8,866.7% in the second quarter. Bard Associates Inc. now owns 269 shares of the computer hardware maker’s stock worth $54,000 after purchasing an additional 266 shares during the last quarter. Institutional investors own 65.27% of the company’s stock.

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

Positive Sentiment: NVIDIA announced a five-year, $250 million compute commitment to support U.K. AI safety and security research. The initiative strengthens NVIDIA’s relationships with governments, universities and AI developers while promoting its hardware and software ecosystem. NVIDIA pledges $250 million to boost UK AI safety research Positive Sentiment: New ecosystem announcements highlighted continued demand for NVIDIA technology. LSEG is using NVIDIA GPUs to accelerate historical market-data processing, while NVIDIA introduced tools including cuPotential for molecular simulation and expanded collaborations in AI-defined chip manufacturing. LSEG teams up with NVIDIA for faster market data processing Positive Sentiment: State Street launched a sector ETF designed to give NVIDIA a 20.93% allocation, above the 15.41% weighting in its comparable fund, potentially creating incremental demand for NVDA shares. New State Street Sector ETFs Give Biggest Stocks Full Weight Neutral Sentiment: CEO Jensen Huang said NVIDIA would stop supplying chips to customers developing unsafe AI systems. The stance may improve regulatory and reputational positioning, although broader AI-safety concerns could increase scrutiny of the company and industry. Nvidia, Anthropic Weigh In On AI Safeguards Negative Sentiment: Investors are assessing competitive threats from Microsoft’s Maia 300 architecture and Intel’s lower-cost, air-cooled Crescent Island inference GPU. Custom accelerators and cheaper inference solutions could pressure NVIDIA’s pricing, growth assumptions and market share over time. Microsoft Just Unveiled a Brand-New AI Chip Negative Sentiment: IDC reportedly estimates NVIDIA’s China AI-chip market share has fallen to 34% as Huawei gains ground, underscoring export restrictions and rising local competition. Separately, investor Michael Burry is betting against chip stocks, reinforcing valuation and AI-spending concerns. NVIDIA’s China AI chip market share falls to 34% Insider Buying and Selling at NVIDIA In other news, CFO Colette Kress sold 34,918 shares of the firm’s stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $219.05, for a total value of $7,648,787.90. Following the transaction, the chief financial officer directly owned 765,103 shares of the company’s stock, valued at approximately $167,595,812.15. This trade represents a 4.36% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Timothy S. Teter sold 30,460 shares of the company’s stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $222.80, for a total value of $6,786,488.00. Following the completion of the sale, the executive vice president owned 2,687,660 shares of the company’s stock, valued at $598,810,648. This trade represents a 1.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 1,766,118 shares of company stock worth $399,450,353. Corporate insiders own 3.94% of the company’s stock. NVIDIA Stock Performance Shares of NVDA stock opened at $221.30 on Thursday. The firm has a market capitalization of $5.33 trillion, a price-to-earnings ratio of 27.98, a price-to-earnings-growth ratio of 1.77 and a beta of 2.22. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. The business has a fifty day moving average of $223.43 and a 200 day moving average of $210.73. NVIDIA Corporation has a 1 year low of $164.27 and a 1 year high of $243.37.

NVIDIA (NASDAQ:NVDA – Get Free Report) last issued its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The business had revenue of $96.22 billion during the quarter, compared to analysts’ expectations of $92.27 billion. During the same quarter in the previous year, the firm posted $1.05 EPS. The company’s revenue for the quarter was up 105.9% on a year-over-year basis. As a group, research analysts expect that NVIDIA Corporation will post 9.25 earnings per share for the current year.

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

NVIDIA Announces Dividend The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Investors of record on Thursday, September 10th were paid a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend was Thursday, September 10th. NVIDIA’s dividend payout ratio is currently 12.64%.

Wall Street Analyst Weigh In A number of brokerages recently issued reports on NVDA. Oppenheimer set a $315.00 price target on NVIDIA and gave the company an “outperform” rating in a report on Thursday, August 27th. Cantor Fitzgerald reissued an “overweight” rating and issued a $350.00 price objective on shares of NVIDIA in a research note on Thursday, October 1st. TD Cowen restated a “buy” rating on shares of NVIDIA in a report on Tuesday, August 18th. BNP Paribas Exane reaffirmed an “outperform” rating and set a $345.00 target price on shares of NVIDIA in a research report on Monday, October 5th. Finally, UBS Group reaffirmed a “buy” rating on shares of NVIDIA in a research report on Friday, October 9th. Five investment analysts have rated the stock with a Strong Buy rating, forty-nine have given a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of “Buy” and an average price target of $321.89.

Check Out Our Latest Research Report on NVIDIA

About NVIDIA (Free Report)

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

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

Featured Articles Five stocks we like better than NVIDIA Tesla Wants to Make Its Own Chips—What Could Go Wrong? IREN Limited’s AI Pivot Gains Traction—But Can Its Data Centers Deliver? PBF Energy’s Stunning Rally Faces a Critical Test Citi Stock Falls Despite Earnings Beat: What Investors Need to Know Want to see what other hedge funds are holding NVDA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVIDIA Corporation (NASDAQ:NVDA – Free Report).

Receive News & Ratings for NVIDIA Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NVIDIA and related companies with MarketBeat.com's FREE daily email newsletter.

On Nov. 16, 2022, Nvidia (NVDA -3.16%) reported results for the third quarter of fiscal 2023. It wasn't a great report. The chip designer missed Wall Street's average bottom-line target, even.

Revenue fell 17% year over year, and gaming sales were cut in half. New U.S. export rules blocked its top data center chips from China. Management took a $702 million inventory charge for products it no longer expected to sell in the Chinese market. If you skimmed the headlines that evening and went back to your couch, nobody could blame you.

Two weeks later, OpenAI released ChatGPT, and the tech world went bananas. Nvidia was already shipping chips to support the generative AI wonder. The stock was worth roughly $390 billion back then, and $5.5 trillion in October 2026. Things have changed, and November 2022 was a turning point.

So I went back and checked out that ho-hum earnings call. Hindsight is cheating, I know. It's also a pretty good way to learn what an early signal might look like before it becomes obvious.

Nvidia CEO Jensen Huang. Image source: Nvidia.

The ghost in the gaming numbersNvidia still had a gamer's reputation. The pandemic graphics card frenzy, further juiced by crypto miners, had ended with a whimper. Its ghost was haunting the sales channel in the form of unsold inventory and secondhand cards on eBay. When an analyst asked about leftover mining hardware, CEO Jensen Huang said he didn't expect blockchain to be an important part of the business anymore.

In 2022, it sounded like Huang dodging an uncomfortable question in the middle of a crypto winter. He was absolutely right, though. Ethereum switched from GPU-based mining to a proof-of-stake system in September that year, and specialized processors were already orders of magnitude better for mining Bitcoin. Even if the AI boom hadn't been around the corner, the crypto-mining surge was over.

Meanwhile, in the other corner of the income statement, data center revenue rose 31% to a record $3.8 billion. Gaming fell 51% to $1.6 billion. Just one year earlier, gaming had been the bigger segment. By this quarter, data center was about 2.4 times its size and made up nearly two-thirds of total revenue.

The new pillar of the business had been poured and set while most of the attention stayed on the gaming wreckage.

Nvidia named the trend before it had a mascotWhat gets me is that management wasn't hinting. CFO Colette Kress credited data center growth to workloads like "large language models, recommendation systems and generative AI." Huang called it "the beginning of the era of generative AI." The investor presentation flatly stated that LLMs "are widely viewed as the most important AI models today."

Many investors still had to look up what LLM meant. This was before ChatGPT turned the acronym into casual dinner-table material.

The deck also had a chart about the computing power needed to train transformer-based AI models. It was growing about 275 times every two years, versus 8 times for everything else. Squint at that chart as a sales forecast for an AI chip company, and it starts to look exciting.

Image source: The Motley Fool.

Then came the metaverse slideThe deck didn't stop at LLMs. The very next slide pitched Nvidia's Omniverse computing systems as a foundation for the metaverse. A later slide declared metaverse applications "the next wave." The company's $1 trillion market opportunity slide gave Omniverse software the same $150 billion estimate as AI enterprise software.

On paper, it was a coin flip. Facebook had renamed itself Meta Platforms (META -3.27%) about a year earlier. In an alternate universe, virtual reality worlds might have taken the spotlight that AI stole in 2022 and 2023.

To be fair to Nvidia, Omniverse was mostly aimed at industrial digital twins for factories and rail networks, not cartoon avatars, and the product is still around. It just isn't what turned Nvidia into a $5.5 trillion company.

The unglamorous plumbingHuang spent several answers on networking. He argued that high-performance interconnects pay for themselves in large AI data centers. The deck described the network and storage as part of "the computing fabric," not separate add-ons. Microsoft (MSFT -1.80%) was about to launch an AI infrastructure platform, running entirely on Nvidia's InfiniBand networking. That systems-level approach helps explain why Nvidia captured so much of the AI spending wave, not just the GPU slice.

Microsoft also happened to be OpenAI's biggest backer. Nobody on the call connected those dots.

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The H100 was already rollingNvidia started shipping its H100 data center GPU during the quarter. Huang said customers were "clamoring" for it. He expected large volumes by early 2023, a faster ramp than the prior generation. The slide deck said partners would roll out the first wave of H100 products and services in fiscal Q4. ChatGPT launched in that same quarter.

Timing like that is hard to plan. For investors, the signs were hiding in plain sight.

What I'd borrow from this callNone of this guaranteed what happened next. Nvidia guided for $6.0 billion in fourth-quarter revenue, barely above the third quarter. China export restrictions, inventory charges, and a gaming slump dominated the near-term picture.

Yet, data center revenue was growing while everything else shrank. Management was talking specifically about LLMs and generative AI. A new flagship chip was ramping into exactly those workloads.

Those three signals are worth watching for in any earnings call: which segment keeps growing through a downturn, and which topics management keeps returning to.

NVIDIA Today

$222.39 -6.13 (-2.68%)

As of 01:08 PM Eastern

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$164.27▼

$243.370.45%

28.12

$321.89

Being AI-lab agnostic has long been a pillar of NVIDIA’s NASDAQ: NVDA strategy. Selling to all labs creates a deep moat, making the question of which one wins moot: NVIDIA always wins because it sells hardware, ecosystems, and services to the industry. As it stands, the moat is based largely on silicon, but it deepens with every advancement along the stack, entrenching its position as a comprehensive, universal AI developer ecosystem.

So, what happens when the company breaks out of its mold? Speculation is running rampant that this is becoming increasingly likely. NVIDIA is reportedly in early talks to buy Reflection AI or increase its investment in the startup. Reflection AI is a newer startup founded by former Alphabet NASDAQ: GOOGL DeepMind researchers.

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Reflection AI focuses on open-weight foundation models (which aren't necessarily fully open-source) and agentic software tools that democratize AI. Governments, enterprises, and AI labs can download the software, own it, customize it, and run AI models on their own hardware. Offerings include Beam, focused on coding, reasoning, and agentic tasks, and Asimov, an agentic tool that helps developers answer complex questions about software systems.

NVIDIA’s Moat Will Deepen If It Acquires Reflection AIInvestors should note that this move wouldn't necessarily alter NVIDIA's strategy; it could strengthen it. Owning a developer of open-weight AI tools helps NVIDIA deepen its moat. Making AI models more widely accessible keeps the focus on its hardware and ecosystem, not which model developer wins.

The likely outcome is that modelers and, more importantly, inference providers will keep investing in NVIDIA technology as demand for AI-enabled enterprise and consumer services grows. It's not about the models but the equipment you use to run them. Models are already a dime a dozen; the question for businesses and consumers is which ones to use and how to access them. This move could cement, secure, and strengthen NVIDIA’s revenue and earnings outlook as the AI industry expands.

And NVIDIA isn’t new to the business. NVIDIA previously an $800 million direct investment in Reflection AI, anchoring a $2 billion funding round, which valued the company at $8 billion. The partnership not only provides the company with money but also strengthens its ties to NVIDIA's GPU ecosystem, which Reflection AI uses to train its models. Nebius Group NASDAQ: NBIS is another critical player, having secured a $1 billion contract from Reflection AI for cloud capacity and services.

The question of whether owning a model maker gives NVIDIA a new revenue stream or strains its relationships with AI labs remains open. NVIDIA may be more interested in Reflection AI for its position in the AI ecosystem than for its revenue. If NVIDIA wants to keep low-cost, open-weight AI models in Western control, an acquisition could be strategically valuable. The risk is that China emerges as the leader in low-cost models, leading the industry toward its hardware and ecosystem rather than NVIDIA’s.

NVIDIA Will Control Reflection AI, the Only Question Is How?The most important question is: How might the deal be structured? Investors should consider the possibility of a non-standard workaround, such as a hire-to-acquire strategy, but even that is not assured. NVIDIA may simply hire Reflection AI’s staff and license its technology, potentially avoiding a lengthy merger review without necessarily escaping regulatory scrutiny.

Regulatory oversight also poses risks, as authorities have already expressed interest in other deals. NVIDIA licensed technology from Groq and hired several of its executives (also started by Alphabet engineers) in a similar manner, raising questions from lawmakers about whether it intentionally avoided regulatory oversight.

NVIDIA Stock Forecast Today12-Month Stock Price Forecast:
$321.89
44.30% Upside

Buy
Based on 55 Analyst Ratings

Current Price$223.08High Forecast$515.00Average Forecast$321.89Low Forecast$210.00NVIDIA Stock Forecast Details

Those raising concerns include Senators Elizabeth Warren and Richard Blumenthal, who argue that NVIDIA’s AI dominance may pose a threat to competition. In this environment, the company will have to be careful to address regulatory concerns.

Analysts remain bullish on NVIDIA, although the impact of the potential deal remains uncertain. The acquisition could represent an extension of NVIDIA's strategy rather than a strategic shift. The stock carries a consensus Buy rating from the 55 analysts tracked by MarketBeat, with a consensus price target suggesting over 40% upside from mid-October trading levels.

NVIDIA’s next visible catalyst is its upcoming earnings report. Expected around Nov. 18, analysts forecast a deceleration to about 90% year-over-year revenue and earnings growth. The company consistently outperforms estimates and could do so again this quarter. Global investment in AI infrastructure across industries continues to drive demand for its core products. Investors will be watching growth, as well as profitability, cash flow, and capital returns, which have been accelerating.

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