Track market-moving stories before they get noisy

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[1/2]The Alibaba logo is seen in this illustration taken on January 29, 2025. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab

July 31 (Reuters) - Chinese AI firm Moonshot has a computing agreement with Alibaba Group (9988.HK), opens new tab for the use of about 20,000 ​Nvidia (NVDA.O), opens new tab chips, Bloomberg News reported on Friday, citing people familiar ‌with the matter.

Alibaba, one of Moonshot's largest investors, expects portfolio companies to use its cloud, the report said. The Nvidia chip cluster Alibaba provides accounts for a key portion of the ​computing power behind Moonshot's Kimi models, it added.

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Moonshot earlier this ​month unveiled Kimi K3, a 2.8-trillion-parameter model. It said Kimi K3 was the world's largest ⁠open-weight AI system and delivered performance approaching U.S. giant Anthropic's frontier Fable model.

U.S. ​export controls on advanced Nvidia chips have made access to computing ​power a key constraint for Chinese companies.

Moonshot can access Nvidia's newer Blackwell processors through Southeast Asia and is seeking additional chips to train its next AI model, Bloomberg ​reported.

Separately, the roughly 20,000 Nvidia chips Moonshot has access to are from the ​chip giant's earlier Hopper generation, the report said.

Before Nvidia rolled out its Blackwell lineup, ‌Hopper ⁠chips were used across the AI industry to train and deploy models.

An Alibaba spokesperson denied to Bloomberg that the company provides H200-powered computing services to Moonshot.

Moonshot's Kimi model surpassed Alibaba's Qwen on key performance measures ​despite access to ​similar training ⁠resources, disappointing some Alibaba employees, the report said.

Reuters could not independently confirm the report. Moonshot and Alibaba could ​not be reached for comment outside regular business hours.

The White ​House, the U.S. ⁠Commerce Department and Nvidia did not immediately respond to Reuters' requests for comment.

The report comes as Moonshot faces growing scrutiny from U.S. officials. The ⁠U.S. ​government had information indicating Moonshot distilled Anthropic's ​Claude Fable 5 model to develop Kimi K3, the White House's top tech adviser, Michael ​Kratsios, said last week.

Reporting by Anhata Rooprai in Bengaluru; Editing by Shreya Biswas

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Nvidia stock was rising after Amazon raised its capital expenditure forecast and played down competition between its custom AI chips and Nvidia's processors.

In case you missed it, at market close on July 28, Apple (AAPL -1.41%) passed Nvidia (NVDA +2.65%) as the world's largest company. Apple closed at a $4.95 trillion valuation, while Nvidia fell to $4.76 trillion. These are the two largest companies in the world, with third-place Alphabet (GOOG -0.62%) (GOOGL -0.91%) at about $4 trillion.

However, I don't expect this to last. Apple has an inflated valuation and the market isn't valuing Nvidia's stock correctly. A year from now, I'd bet that Nvidia is worth at least $1 trillion more than Apple, and I've got the math to back up that claim.

Image source: Getty Images.

Apple's stock is priced for perfection with relatively slow growth First, let's tackle Apple. Apple has been a noteworthy absentee from the AI arms race. Instead of spending hundreds of billions of dollars on AI data centers like its peers, Apple has spent a modest amount and chosen to partner with others that have spent the money to develop AI models. Time will tell if this was the right or wrong strategy, but it does save the company a ton of money in the short term.

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Although Apple isn't spending big, it does have some headwinds approaching, like soaring chip prices thanks to the AI build-out eating up all of the supply. This could cause Apple to raise prices on iPhones or have to deal with falling margins. Either way, it could be a problem for Apple.

However, the market isn't recognizing any of these potential issues. Instead, it's treating Apple as a haven from AI spending, which it is. The market has pushed the price of Apple's stock so high that it has reached unreasonable valuation levels for its growth rate.

AAPL PE Ratio (Forward) data by YCharts

The last time Apple was valued at this high a price-to-earnings (P/E) ratio was in the early days of the COVID-19 pandemic, when Apple's revenue soared thanks to consumers spending money on tech devices. Now, Apple is posting a 17% growth rate, which is solid, but nowhere near where it should be to justify valuing a stock at 41 times trailing earnings.

Apple is an incredibly expensive stock with moderate growth, and that won't last forever. Meanwhile, Nvidia looks incredibly undervalued.

Nvidia is dirt cheap comparatively With the market worried about AI overspending, it's selling off Nvidia's stock. This has pushed Nvidia down, despite incredible growth rates.

NVDA PE Ratio (Forward) data by YCharts

Nvidia's stock is much cheaper than Apple's and has a much faster growth rate. If these two were valued at the same price-to-earnings level, Nvidia would be the much larger company due to its higher profits. Furthermore, with Wall Street analysts expecting 82% growth for the rest of this year and 43% for 2027, it's going to continue growing far faster than Apple. By the end of next year, if Nvidia trades at a dirt cheap 20 times earnings, it would price the stock at $257 per share. That's 30% higher than today's levels, making it a no-brainer stock to buy.

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Apple will have a hard time justifying its current price tag, and if it falls to a more reasonable, but still expensive, 35 times earnings, with next year's projected earnings per share, the stock will trade at $340 per share -- the same price it's at today.

Apple has a lot of optimistic expectations priced into its stock; Nvidia has none. This reflects the market's current concerns about AI spending. I think that will fade during the next few months, allowing investors to value Nvidia's stock for the giant that it is.

Stocks soared on Thursday, led by a blockbuster earnings report by Microsoft, which finished the session up 15.5%. In fact, it was the single biggest one-day market-cap gain from a stock as Microsoft added more than $400 billion in market value.

But beneath that headline and the 2.8% gain in the Nasdaq Composite, there was arguably a bigger story in the market, driving a surge in AI stocks today.

Situational Awareness, the AI-focused hedge fund founded by 24-year-old Leopold Aschenbrenner, faced margin calls from its lenders yesterday and was forced to sell most of its public holdings to Ken Griffin’s Citadel, valued at more than $10 billion.

The news sent AI stocks soaring. The iShares Semiconductor ETF(SOXX +8.50%), which holds many of the top AI stocks, jumped a whopping 8.5%, retracing its losses from prior weeks after being down 29% from its peak at the end of June.

Citadel’s purchase marked something of an about-face for Griffin, who had not long ago dismissed AI technology, even calling some of it “garbage.”

However, after bailing out Situational Awareness at a deep discount, Griffin has become one of the biggest holders of AI stocks.

Let’s discuss what the blowup and Griffin’s move mean for investors, but first, a quick review.

What happened to Situational AwarenessLeopold Aschenbrenner’s Situational Awareness hedge fund had been one of the biggest winners in the AI boom, but the firm was highly leveraged, and the plunge in AI stocks in July put it in a tough spot. By Wednesday night, Situational Awareness was searching for another fund to buy its portfolio, and Griffin’s Citadel emerged as the winner of a bidding war.

On Thursday, as news broke of Citadel’s big move, investor confidence seemed to return to the AI sector as they interpreted the event as a bottom in the latest swing. Citadel’s move offloaded the risk in Situational Awareness, and sparked a relief rally on Wall Street as it removed a major seller, sending many of Situaional Awareness’s top holdings up more than 20%, including IREN, Sandisk, and CoreWeave.

Earlier reports that Situational Awareness had been under pressure had weighed on the AI sector. In fact, the SOXX ETF is still well below where it was at the start of the week. Through the first three sessions this week, the ETF had fallen 11.8%.

What it means for investorsThe AI rally sparked on Thursday could continue over the coming days, as these stocks traded higher after hours as well. But the volatility in the sector is a reminder that AI stocks have become dominated by short-term traders and sentiment, and price action has become divorced from fundamentals.

That’s not surprising given the massive gains in some AI stocks, the transformative power of the technology, and the attention it gets in the market and the media, but that means long-term investors should be prepared for more such volatility.

It’s impossible to predict when a fund like Situational Awareness will blow up or when a turnaround like Thursday’s will take place.

What investors can do is buy quality stocks, especially when they go on sale. One example right now is Nvidia (NVDA +2.65%), which is still growing rapidly and trades at a forward P/E of just 22.

Rather than getting caught up in the daily movements and market sentiment that push AI stocks back and forth, investors should focus on fundamentals and buy when prices are attractive.

Image source: Getty Images.

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Nvidia (NVDA +2.65%) has been around since 1993, but it came into the spotlight for its graphics processing units (GPUs), which are crucial for training and scaling artificial intelligence (AI). They provide much of the compute power that powers AI workloads.

At the beginning of the current AI boom, the goal for tech giants was simply acquiring as much compute power (i.e., GPUs) as possible. Now, the focus has shifted to memory chips, but as Nvidia's CEO, Jensen Huang, highlighted, those memory chips are now AI's biggest bottleneck.

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Why memory is important to AI and Nvidia AI training and application rely on trillions of data points, and it wouldn't be possible to store and quickly retrieve them without specialized memory chips. As AI is used for handling more complex tasks -- such as running autonomous agents or processing complicated context instead of providing recipes or travel recommendations -- the need for high bandwidth memory has become increasingly important.

Nvidia began its reign selling its GPUs and AI hardware, but now it's building systems with multiple working parts, including memory chips that are packed into its hardware. That means relying on memory chipmakers, such as Micron, SK Hynix, and Samsung, for a continuous, high-volume supply.

Unfortunately, making those specialized memory chips is far from simple, which is why only a handful of companies make the vast bulk of them.

Nvidia CEO Jensen Huang. Image source: Nvidia.

What does it mean for Nvidia? The downside to the shortage is that Nvidia is at the mercy of memory chip suppliers for its own supply chain. If the suppliers can't make memory chips fast enough, Nvidia will have to wait, potentially affecting its own business.

The positive is that Nvidia has the cash and purchasing scale to have priority on the memory chips being made. In its most recent quarter (ended April 26), it generated $48.6 billion in free cash flow and finished the quarter with $13.2 billion in cash and cash equivalents. It can easily pay a premium to buy them in bulk, shutting out smaller competitors and further cementing its stronghold on the industry.

Investors shouldn't hear Huang's message and become concerned; it's just the next chapter of the AI evolution. If anything, it should be encouraging that Nvidia can use its leadership position to be a long-term force, regardless of the current hiccup.

Nvidia's stock has been a disappointment this year, up only 0.60% year to date as of market close on July 29, but much of that has to do with overall sentiment surrounding big tech and the "Magnificent Seven" stocks as a whole, versus disappointing business performance from Nvidia.

NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) and Advanced Micro Devices (NASDAQ:AMD) both delivered post-earnings updates that reshape the AI chip narrative. NVIDIA posted $81.615 billion in Q1 FY2027 revenue, while AMD followed with $10.253 billion. One is the infrastructure utility. The other is finally the credible second source hyperscalers actually deploy at scale.

Data Center Carries Both. Only One Prints Utility Margins. NVIDIA’s Data Center segment reached $75.246 billion, up 92% YoY, with networking exploding 199% as InfiniBand, NVLink, and Spectrum-X locked customers into the full rack. Jensen Huang called the buildout “the largest infrastructure expansion in human history”, and the 75.0% non-GAAP gross margin backs that framing.

AMD’s Data Center revenue hit $5.775 billion, up 57% YoY, and became the primary earnings driver. Lisa Su told investors “customer forecasts exceeding our initial expectations” around MI450 and Helios. EPYC server revenue grew more than 50% year-over-year, its fourth straight record quarter. Gross margin sits at 55%, respectable but a full turn behind NVIDIA.

Driver NVIDIA AMD Data Center growth +92% YoY +57% YoY Non-GAAP gross margin 75.0% 55% Free cash flow $48.554B $2.566B Infrastructure Utility vs. Merchant Second Source NVIDIA owns the software, networking, and rack architecture. That is why 80%+ chip margins translate into predictable cash flow and support a $80 billion new buyback authorization plus a dividend hike to $0.25 per share.

AMD’s role has genuinely changed. Meta committed to 6 gigawatts of AMD Instinct GPUs including a custom MI450 chip, layered onto the earlier 6 gigawatt OpenAI commitment. Su even flagged a CPU-to-GPU ratio shifting from “1:4 or 1:8 configurations toward something closer to 1:1”, which quietly expands the EPYC opportunity as agentic workloads spread.

The Next Test Is Helios, Rubin, and China AMD’s MI450 volume ramp lands in Q3, with Helios rack-scale competing directly against NVIDIA’s Vera Rubin roadmap. NVIDIA guided Q2 revenue to $91.0 billion, excluding China Data Center compute entirely. AMD guided to roughly $11.2 billion. I will keep an eye on whether Helios deployments actually convert pilots into production, and whether NVIDIA’s networking growth holds once merchant fabrics mature.

Why I Split the Trade Between Them Personally, I lean toward NVIDIA as the core position. Free cash flow of $48.554 billion in a single quarter, a P/E near 32, and analyst buy ratings of 58 support the utility thesis. AMD is the higher-variance sleeve. Its stock is up 131.11% YTD but trades at a P/E of 175, leaving little room for stumbles. If you want durability, NVIDIA. If you want torque on every hyperscaler headline, AMD. I would hesitate to own only one.

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Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Let's take a look at what these Wall Street heavyweights have to say about Nvidia (NVDA - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Nvidia currently has an average brokerage recommendation (ABR) of 1.15, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 48 brokerage firms. An ABR of 1.15 approximates between Strong Buy and Buy.

Of the 48 recommendations that derive the current ABR, 44 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 91.7% and 6.3% of all recommendations.

Brokerage Recommendation Trends for NVDA

Check price target & stock forecast for Nvidia here>>>

The ABR suggests buying Nvidia, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.

Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.

Is NVDA Worth Investing In?In terms of earnings estimate revisions for Nvidia, the Zacks Consensus Estimate for the current year has increased 1.5% over the past month to $9.09.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Nvidia. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Therefore, the Buy-equivalent ABR for Nvidia may serve as a useful guide for investors.

NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) sits at a strange moment. The company posted Q1 FY27 revenue of $81.61 billion, up 85.2% year over year, with Data Center revenue of $75.25 billion (up 92%), and CEO Jensen Huang calling AI infrastructure “the largest infrastructure expansion in human history.”

Yet shares trade at $190.01, up just 2% year to date, with a market cap of $4.77 trillion. Can shares reclaim the $5 trillion mark, which implies roughly $210 per share, in 2026?

What’s Holding NVIDIA Back Right Now Shares are down 10.4% over the past week and 2.54% over the past month, giving back most of the year’s gains in days. Applied Materials, Arm, and Taiwan Semiconductor all sold off hard on July 29, with TradingKey flagging “concerns about immediate returns on AI infrastructure investment” and Fed signals of prolonged high rates.

With a beta of 2.211, NVIDIA moves roughly twice as hard as the market in either direction. Guidance assumes no H20 Data Center compute revenue from China, which caps upside for a segment that was once an $8 billion quarterly line.

Wall Street Sees 59% Upside. Our Model Sees 33% The Street is bullish. The consensus target sits at $302.83, with 10 Strong Buy, 48 Buy, 2 Hold, and 1 Sell rating, a 95% bullish distribution. Our model is more restrained.

The base case predicts $252.45 within a year (32.86% upside), with a bull case of $261.95 and a bear case of $220.95, at 90% confidence. Quarterly earnings growth of 214.5% YoY and a bullish consensus this concentrated usually gets multiple expansion.

The Path to $210 Per Share Reaching $210 from today’s price of $190.01 requires a gain of 10.5%. With forward EPS of $8.26, a price of $210 implies a forward P/E of 25x. Our base case at $252.45 already implies roughly 33x, meaning $210 needs only about 2x additional multiple expansion above current levels.

Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.

Catalysts are lined up. Huang was blunt on the last call: “Agentic AI has arrived, doing productive work, generating real value and scaling rapidly across companies and industries.” Q2 guidance of $91 billion in revenue and $119 billion in total supply commitments backs him up.

The OpenAI 10GW deal, Anthropic, Meta, and sovereign wins in the UK, Germany, and India keep demand intact. The primary risk is a China export-control shock that spooks hyperscaler capex.

Where NVIDIA Trades Today vs. Its Earnings Power At $190.01, NVIDIA trades at roughly 23x forward earnings for a business growing net income 210.6% year over year at 75% non-GAAP gross margins.

Shares sit 28% below the $236.26 52-week high and well above the $163.85 low. The 10-year return of 13,472% speaks for itself. On this earnings power, a 25x multiple to reclaim $5 trillion feels like a snapback.

Is $210 Realistic? My Verdict Reclaiming $5 trillion means shares need to move 10.5% to $210. Realistic, and squarely the base case.

Three things need to hold: Blackwell Ultra and Vera Rubin ramps stay on schedule, hyperscaler capex commitments do not slip, and Q2 revenue lands at or above the $91 billion guide when NVIDIA reports on August 26. A hard China escalation or broad AI capex reset would derail it. We’ve outlined the blueprint for how NVIDIA could reach $210 in 2026.

Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.

Contact [email protected] for any questions or corrections.

I keep clicking buy on NVIDIA (NASDAQ:NVDA | NVDA Price Prediction), and I am not going to pretend otherwise. Every time the market wobbles on “circular financing” chatter or CapEx fatigue headlines, I add to the position. The reason sits in plain view: the hyperscalers cannot stop spending, and NVIDIA is where that spending lands.

Call it the prisoner’s dilemma of AI infrastructure. Microsoft, Meta, Alphabet, and Amazon are locked in a race where under-investing costs far more than over-investing. Jensen Huang put it on the record: “I don’t know any company, industry, country who thinks that intelligence is optional. It’s essential infrastructure.” When agentic reasoning consumes a hundred to a thousand times the tokens of a one-shot query, the compute bill moves one direction.

The Three Pillars Q1 FY27 revenue landed at $81.61 billion, up 85.23% YoY, beating estimates by 3.16%. Data Center alone contributed $75.25 billion, up 92%, with networking inside that segment growing 199%. EPS came in at $1.87 against a $1.77 estimate. Management guided Q2 FY27 revenue to $91.0 billion. That is the fifth consecutive beat.

Second, the margin profile. Operating margin of 60.38%, net margin 55.60%, ROE of 101.49%, ROIC of 92.21%. Free cash flow of $48.55 billion in a single quarter, up 85.41%. Debt/equity of 0.0726, interest coverage of 503.42x. That balance sheet trades at a forward P/E of 24.

Third, capital return finally arrived in size. The quarterly dividend jumped from $0.01 to $0.25, a 25x lift. The board authorized an additional $80.0 billion in buybacks on top of $38.5 billion remaining. Roughly $20.0 billion came back to shareholders in Q1 alone.

Why Not AMD, Why Not Intel Readers reach for Advanced Micro Devices (NASDAQ:AMD) as the obvious accelerator alternative. I have looked. My problem is scale. NVIDIA’s Data Center segment printed $75.25 billion in one quarter growing 92%. On margins, NVIDIA’s 75.0% non-GAAP gross margin and 60.38% operating margin describe platform economics at scale.

Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.

Intel (NASDAQ:INTC) is the other reach. Per NVIDIA’s own filings, Intel is now a collaborator, jointly developing custom silicon with NVLink. When the incumbent CPU vendor decides to interface with your fabric, the moat argument writes itself.

The Risk I Will Not Wave Away China. Q2 FY27 guidance assumes no H20 shipments to China. Layer in $119.0 billion in supply commitments and hyperscaler concentration near 50% of Data Center revenue, and the downside is real. If AI CapEx cools sharply, that backlog becomes a headache.

Here is why it has not moved the thesis: the same $119.0 billion is demand visibility. Meta signed for millions of Blackwell and Rubin GPUs. OpenAI committed to at least 10 gigawatts. Anthropic took an initial gigawatt. CoreWeave is on the hook for 5-plus gigawatts by 2030. Cancelling means forfeiting a spot in line to whoever is standing behind them.

Forward Conviction Shares closed at $197.01, up 905.4% over five years and 13,972.71% over ten. Michael Burry has been short since November per the top wallstreetbets thread, which cleared 6,044 upvotes. He is wrong. Every industry now treats intelligence as infrastructure, and one company sells the picks and shovels at platform economics. My buy button stays warm.

Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.

Contact [email protected] for any questions or corrections.

Key Takeaways NVIDIA fell more than 10% in five days as investors weighed financing ties to customers like OpenAI.Alphabet, Meta, Microsoft and Amazon plan massive AI capex, supporting demand for NVIDIA's GPUs.NVIDIA posted 85% revenue growth and $48.6B in free cash flow in Q1. It trades below its peer-group P/E. NVIDIA (NVDA - Free Report) shares slid roughly 3.5% yesterday, extending a rough stretch that has now pulled the stock down more than 10% over the past five trading days. Much of the recent selling pressure could be tied to growing unease over NVIDIA’s financing arrangements with its own customers.

The company is reportedly in talks to backstop as much as $250 billion tied to a massive data-center project in Ohio that OpenAI would lease, on top of separate discussions to help finance up to $350 billion of OpenAI's chip purchases. The pattern could be worrisome for investors. It’s like NVIDIA funds a customer, and that customer spends the money on NVIDIA hardware. That ties NVIDIA’s fortunes increasingly to unprofitable customers like OpenAI.

Trading roughly 20% below the all-time peak it hit in mid-May, NVIDIA has cooled off considerably from the run that once made it the undisputed face of the AI trade— but the company’s growth engine is still very much intact.

Big Tech Not Pulling Back on AI CapexAlphabet (GOOGL - Free Report) just raised its 2026 capital expenditure guidance again, this time to a range of $195-$205 billion, up from $180-$190 billion, citing accelerated demand for AI infrastructure and cloud capacity— and management expects spending to climb further still in 2027.

Meta Platforms (META - Free Report) lifted the lower-end of its 2026 capex range to $130 billion, now expecting to spend $130-$145 billion. Microsoft (MSFT - Free Report) has held its spending plans steady, guiding about $50 billion in capex for its fiscal first quarter of 2027 and $175 billion for calendar 2026, with its finance chief pointing to strong "demand signals" across the business as reason for further growth ahead. Amazon (AMZN - Free Report) has earmarked $200 billion in capex for 2026. The company reports results today after the close, and we'll find out then whether it follows Alphabet and Meta's footsteps in raising its capex.

Hyperscalers' relentless AI spending fuels NVIDIA’s growth. CEO Jensen Huang expects that spending to keep climbing, with NVDA projecting AI infrastructure investment to reach $3-$4 trillion annually by 2030, driven partly by agentic AI. NVIDIA’s GPUs remain the backbone of this boom, meaning its revenue growth is closely linked to hyperscalers’ spending. For now, there's no sign of a slowdown. With AI data center investment booming, NVIDIA’s prospects look solid.

NVDA’s Numbers Look StrongThe company’s first-quarter revenues jumped 85% year over year to $81.6 billion, with data center sales alone climbing 92% to a record $75.2 billion. Non-GAAP earnings per share surged 140%. Blackwell adoption is ramping quickly, and demand is broadening across hyperscalers, enterprises and sovereign AI projects alike.

The moat is widening too. Beyond GPUs, NVIDIA’s CUDA software ecosystem remains the industry default, making it hard for customers to switch platforms, and the company is now pushing into data-center CPUs with its new Vera line— a potential long-term growth driver on top of its core chip business.

Financially, the company is in a strong position. It closed its last reported quarter with $80.6 billion in cash and marketable securities against just $7.5 billion in long-term debt, and it generated $48.6 billion in free cash flow in the quarter. Management has backed that up with a 25-fold dividend increase and an $80 billion buyback authorization.

The Zacks Consensus Estimate for NVIDIA’s fiscal 2027 and 2028 implies year-over-year growth of 90% and 38%, respectively. EPS estimates have moved north over the past 60 days.

Image Source: Zacks Investment Research

NVIDIA Is UndervaluedDespite those solid numbers and fundamentals, the stock has hardly moved on a year-to-date basis, significantly trailing chip peers like Advanced Micro Devices and Micron, which have more than doubled. That disconnect has compressed NVDA’s valuation even as its earnings base keeps expanding. NVIDIA currently trades at a forward 12-month P/E ratio of 17.59X, below its peer group.

Image Source: Zacks Investment Research

Our TakeYes, NVIDIA's circular financing deals are concerning, and Chinese trade restrictions remain an overhang. But the hyperscaler spending that actually drives NVDA's revenues shows no cracks— if anything, it's accelerating. The company's cutting-edge AI chips, strong earnings, fortress balance sheet, and attractive valuation make this recent pullback look like a screaming buy point for the stock.

NVIDIA stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

Wall Street’s average price target for NVDA stock implies over 60% upside from current levels.

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Audent Global Asset Management LLC cut its stake in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 25.6% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 40,845 shares of the computer hardware maker’s stock after selling 14,040 shares during the quarter. NVIDIA accounts for about 7.4% of Audent Global Asset Management LLC’s portfolio, making the stock its 2nd largest position. Audent Global Asset Management LLC’s holdings in NVIDIA were worth $7,124,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors have also added to or reduced their stakes in NVDA. Brighton Jones LLC grew its position in NVIDIA by 12.4% during the 4th quarter. Brighton Jones LLC now owns 324,901 shares of the computer hardware maker’s stock worth $43,631,000 after acquiring an additional 35,815 shares during the last quarter. Bank Pictet & Cie Europe AG raised its position in NVIDIA by 1.0% in the fourth quarter. Bank Pictet & Cie Europe AG now owns 2,346,417 shares of the computer hardware maker’s stock valued at $315,100,000 after purchasing an additional 22,929 shares during the last quarter. Highview Capital Management LLC DE raised its position in NVIDIA by 6.7% in the fourth quarter. Highview Capital Management LLC DE now owns 58,396 shares of the computer hardware maker’s stock valued at $7,842,000 after purchasing an additional 3,653 shares during the last quarter. Hudson Value Partners LLC boosted its stake in shares of NVIDIA by 30.7% during the fourth quarter. Hudson Value Partners LLC now owns 50,658 shares of the computer hardware maker’s stock valued at $6,805,000 after purchasing an additional 11,900 shares in the last quarter. Finally, Wealth Group Ltd. boosted its stake in shares of NVIDIA by 15.7% during the first quarter. Wealth Group Ltd. now owns 6,598 shares of the computer hardware maker’s stock valued at $715,000 after purchasing an additional 896 shares in the last quarter. 65.27% of the stock is currently owned by institutional investors and hedge funds.

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

Positive Sentiment: Strong AI demand remains evident across NVIDIA’s ecosystem. Partner SK Hynix reported a more than sixfold increase in quarterly operating profit, driven by advanced-memory demand from AI data centers, while its relationship with NVIDIA and HBM supply commitments support continued demand for NVIDIA systems. SK Hynix posts sixfold rise in Q2 profit on AI chip demand Positive Sentiment: Analysts continue to see substantial upside, with 26 recent price targets carrying a median of $308.50. Erste Group also modestly raised its fiscal 2027 and fiscal 2028 earnings estimates, reinforcing the case that long-term AI growth remains intact. Positive Sentiment: NVIDIA will report fiscal second-quarter 2027 results on August 26. The scheduled release gives investors a clear near-term catalyst and an opportunity to evaluate demand, margins and the impact of new products. NVIDIA Sets Conference Call for Second-Quarter Financial Results Neutral Sentiment: Reports that NVIDIA may be backing major OpenAI and Texas data-center projects highlight potential for additional chip demand, but the proposed financing arrangements also increase NVIDIA’s exposure to customers’ capital needs and execution risks. Nvidia behind $50 billion lease on Texas data center Negative Sentiment: Investors are concerned that circular financing and credit risks could make AI infrastructure spending less durable. Warnings about NVIDIA’s proposed OpenAI backstop, losses at leveraged AI-cloud companies and rising borrowing costs have pressured the broader AI trade. NVIDIA’s OpenAI Backstop Puts AI Financing Risk in Focus Negative Sentiment: Geopolitical and competitive risks remain a major overhang. Reports of a Taiwan detention involving an NVIDIA employee in a Super Micro China-export investigation, along with faster Chinese AI development, are renewing concerns about export controls and market access. Taiwan detains Nvidia employee in Super Micro probe Negative Sentiment: Market commentary also points to concentrated insider selling: reported NVIDIA insiders made no open-market purchases and 69 sales over the past six months. Although transactions may be scheduled, the imbalance can weigh on sentiment when valuation expectations are high. Negative Sentiment: Broad semiconductor selling and skepticism about AI spending have left NVIDIA below the psychologically important $200 level and below its 50-day moving average, signaling cautious short-term momentum despite strong underlying earnings growth. Insider Transactions at NVIDIA In other NVIDIA news, Director Stephen C. Neal sold 15,500 shares of the company’s stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the sale, the director owned 116,135 shares of the company’s stock, valued at approximately $25,053,803.55. This represents a 11.77% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Mark A. Stevens sold 885,000 shares of the company’s stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the sale, the director directly owned 5,207,271 shares in the company, valued at $1,094,412,146.07. This trade represents a 14.53% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 1,901,125 shares of company stock worth $410,583,015 over the last three months. 3.94% of the stock is owned by company insiders.

Analyst Ratings Changes Several research firms have recently issued reports on NVDA. Rothschild & Co Redburn upped their price objective on NVIDIA from $280.00 to $300.00 and gave the company a “buy” rating in a research note on Tuesday, May 26th. Morgan Stanley set a $288.00 target price on shares of NVIDIA and gave the stock an “overweight” rating in a research report on Thursday, May 21st. Rosenblatt Securities reissued a “buy” rating and set a $325.00 target price on shares of NVIDIA in a report on Thursday, May 21st. Sanford C. Bernstein restated a “buy” rating on shares of NVIDIA in a research report on Monday, June 29th. Finally, Tigress Financial reaffirmed a “strong-buy” rating and set a $425.00 price target (up from $360.00) on shares of NVIDIA in a research note on Wednesday, May 27th. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Buy” and an average price target of $304.26.

Check Out Our Latest Research Report on NVDA

NVIDIA Price Performance NVIDIA stock opened at $190.01 on Thursday. The stock’s 50 day moving average is $206.20 and its 200 day moving average is $196.01. NVIDIA Corporation has a one year low of $164.07 and a one year high of $236.54. The firm has a market cap of $4.60 trillion, a P/E ratio of 29.10, a P/E/G ratio of 0.38 and a beta of 2.21. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85.

NVIDIA (NASDAQ:NVDA – Get Free Report) last released its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, beating analysts’ consensus estimates of $1.76 by $0.11. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The business had revenue of $81.61 billion during the quarter, compared to the consensus estimate of $78.42 billion. During the same quarter in the prior year, the firm posted $0.81 EPS. The company’s revenue for the quarter was up 85.2% compared to the same quarter last year. As a group, research analysts expect that NVIDIA Corporation will post 8.79 EPS for the current year.

NVIDIA announced that its board has approved a stock repurchase program on Wednesday, May 20th that allows the company to buyback $80.00 billion in shares. This buyback authorization allows the computer hardware maker to reacquire up to 1.5% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s board of directors believes its stock is undervalued.

NVIDIA Increases Dividend The company also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Thursday, June 4th were given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. This is a boost from NVIDIA’s previous quarterly dividend of $0.01. The ex-dividend date was Thursday, June 4th. NVIDIA’s dividend payout ratio is currently 15.31%.

NVIDIA Profile (Free Report)

NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.

The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.

Further Reading Five stocks we like better than NVIDIA Why SK hynix Could Be the Best AI Chip Stock to Buy Now Seagate Technology Stock Surges as Earnings Beat Silences AI Doubters Alphabet Is Down 18% From Its High After a Stellar Quarter—Overdone, or More Downside Ahead? Why Bloom Energy May Be the Most Important AI Infrastructure Stock

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On CNBC’s Morning Call Sheet roundtable on July 29, Piper Sandler chief market technician Craig Johnson made a firm call against the Magnificent 7 and explained why he instead prefers the Health Care and Financial sectors today.

“The Mag-7 trade [has] been very long in the tooth for a while, and it’s likely over, and you’re seeing a reset happening,” Johnson said. “It’s just not about the Mag-7. It’s just not about the semiconductor stocks. And it’s a market that’s rotating into other parts of the market. We’re seeing clear pickups in Health Care. We’re seeing pickups in Financials.”

The Numbers Show Market Leadership Is Already Broadening The Invesco QQQ Trust (NASDAQ:QQQ), one of the easiest ways to get a read on the tech industry as well as the Mag-7, is up 9.96% year to date through July 28, 2026, but it has fallen 4.72% over the past week and 4.39% over the past month.

The Health Care Select Sector SPDR Fund has gone the other direction, rising 4.37% in the past week and 8.97% year to date, while the Financial Select Sector SPDR Fund has gained 7.52% over the past month and 6.07% year to date. For comparison, the broad S&P 500 is up 8.64% year to date.

Johnson said Piper Sandler has been acting on this thesis for months. “We continue here at Piper Sandler to cut back our technology weighting across the board. And we have been since February. It is time to take profits in tech.“

Microsoft Short Interest Is Flashing a Decade-High Warning Johnson zeroed in on Microsoft (NASDAQ:MSFT | MSFT Price Prediction) and the warning signal he’s seeing. “Short interest is the highest percentage of the float since 2015, and we’ve seen the largest increase in short interest in Microsoft of any of the Mag-7.”

That sentiment shift contrasts with Microsoft’s operating results. In Q3 FY2026, the company reported EPS of $4.27 on revenue of $82.89B, up 18.3% year over year, with Azure growing 40% and its AI business surpassing a $37 billion annual run rate, up 123% year over year. Yet the stock is down 18.3% year-to-date and 22.63% over the past year through July 28, 2026. Capex of $30.88B in the quarter, up 84% year over year, is testing investor patience on AI payback timelines.

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NVIDIA’s Explosive Growth Is No Longer Enough NVIDIA (NASDAQ:NVDA) shows the same tension. Q1 FY2027 revenue landed at $81.62B, up 85.2% year over year, with Data Center at $75.25B (+92%), and management guided Q2 to $91B plus or minus 2%. Yet the stock is up only 5.76% year-to-date and down 4.96% in the past week.

Even at a forward P/E of about 19, the multiple still leaves room for the stock to fall. Johnson noted that SK Hynix reported a sixfold increase in quarterly profits but still fell short of market expectations.

The Bullish Counterpoint: The AI Spending Boom Remains Intact Sylvia Jablonski pushed back against bearishness in the tech sector, citing the strength of overall AI demand. “The story is intact, right? We’re hearing that demand continues. We’re hearing that the bottleneck continues, AI infrastructure build-out continues, hundreds of billions of dollars by the AI hyperscalers going into this theme.“

Economist Veronica Clark added a macro caveat that cuts both ways. “So much of economic growth is coming from the AI investment, the wealth effect that consumers are feeling, that any kind of sentiment pullback does mean that the overall economy is pretty exposed to it.“

Health Care and Financials Are Emerging as New Market Leaders The question is whether Johnson is identifying a healthy correction within a durable AI cycle or the beginning of a change in market leadership. Solid economic conditions, a VIX of 18.67, and continued hyperscaler spending support the view that this is just a temporary correction, while rising Treasury yields and strengthening Health Care and Financial stocks support the idea that there’s a broader rotation going on.

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Contact [email protected] for any questions or corrections.

Nvidia investors were probably hoping for more AI spending from Meta and Microsoft but the shares were still rising Thursday.

Speaking on The Real Eisman Playbook, the veteran technology analyst pushed back against concerns that Chinese rivals are catching up, arguing Nvidia’s technological advantage remains measured in years rather than months.

His comments come as Huawei continues to position itself as China’s leading domestic AI chip alternative amid ongoing U.S. export restrictions.

Nvidia’s Lead Is Bigger Than Investors Think“I don’t even think there’s a debate,” Ives said. “A third-rate Nvidia chip is a year and a half to two years ahead of Huawei in China.”

According to Ives, conversations throughout the semiconductor supply chain continue to point in the same direction: if given the choice, major Chinese technology companies would still prefer Nvidia processors over Huawei’s offerings.

That, he argued, highlights just how difficult it will be for competitors to narrow Nvidia’s lead as demand expands beyond training large language models into newer applications such as physical AI and autonomous systems.

The AI Race Still Runs Through NvidiaRather than focusing solely on today’s AI workloads, Ives framed Nvidia’s advantage as a long-term competitive position built on years of software, hardware and ecosystem development.

He argued Nvidia remains the cornerstone of the AI infrastructure buildout, making it difficult for competitors to replicate the company’s position even as governments and enterprises seek alternative suppliers.

For investors, the comments reinforce a view that Nvidia’s moat extends beyond chip performance. As AI adoption spreads across cloud computing, robotics and enterprise applications, Ives believes Nvidia remains the benchmark against which every other AI hardware company is measured.

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SANTA CLARA, Calif., July 29, 2026 (GLOBE NEWSWIRE) -- NVIDIA will host a conference call on Wednesday, August 26, at 2 p.m. PT (5 p.m. ET) to discuss its financial results for the second quarter of fiscal year 2027, which ended July 26, 2026.

The call will be webcast live (in listen-only mode) on investor.nvidia.com. The company’s prepared remarks will be followed by a Q&A session, which will be limited to questions from financial analysts and institutional investors.

Ahead of the call, NVIDIA will provide written commentary on its second-quarter results from Colette Kress, the company’s executive vice president and chief financial officer. This material will be posted to investor.nvidia.com immediately after the company’s results are publicly announced at approximately 1:20 p.m. PT.

The webcast will be recorded and available for replay until the company’s conference call to discuss financial results for its third quarter of fiscal year 2027.

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

© 2026 NVIDIA Corporation. All rights reserved. NVIDIA and the NVIDIA logo are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and other countries.

Semiconductors are caught in a selloff UBS thinks is overblown.

The bank argues that fears over "circular financing" in AI infrastructure deals misread who's actually cashing in on the buildout, and it's the chip supply chain, not the hyperscalers, footing the bill.

The commentary follows a wave of investor inquiries about data center deals from Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) and Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD). Recent media reports indicated Nvidia is backing up to $50 billion in lease agreements for a Hut 8 site in Texas and is working on deals worth $750 billion in total, including a $250 billion arrangement with OpenAI, according to Bloomberg. AMD, together with an undisclosed neocloud partner, signed a deal with Core Scientific for up to 2.5 gigawatts of capacity, starting with 500 megawatts in 2027.

UBS identified four drivers behind the recent correction: concerns about open source models weighing on frontier model providers' growth, questions about the memory cycle's sustainability, perceived "circular" financing arrangements, and crowded investor positioning in semis.

The bank pushed back on the first three. It sees the rise of open source models as a net positive for Nvidia, pointing to Artificial Analysis data showing new open models sit between prior and current-generation frontier offerings. It also maintained its view that NAND pricing will roll over in late calendar 2027 and DRAM in mid-2028, with nothing so far to change that call.

On financing, UBS disputed Street estimates that free cash flow for Amazon, Google, Meta and Microsoft will fall below $100 billion in 2027. The bank's own hyperscaler capex projection of roughly $1.4 trillion for that year implies the four companies' combined free cash flow would instead be slightly negative, around negative $60 billion including Oracle. That gap is largely due to rising memory prices, which UBS said are set to require about $550 billion in incremental capex between 2026 and 2027, nearly the entire projected year-over-year increase for that period.

Against that backdrop, UBS estimates Nvidia will generate approximately $900 billion in free cash flow through the end of 2028, with Micron Technology Inc (NASDAQ:MU) generating about $450 billion and AMD about $90 billion, all within its US coverage universe. In UBS's view, the supply chain is generating all of the cash, which the bank says makes sense.

That dynamic, UBS argued, explains why cash-generating suppliers are helping underwrite the buildout, and suggested Nvidia may be shifting toward a more vertically integrated model.

The bank also said hyperscalers' capex increases largely reflect higher memory prices rather than added compute, meaning supply and demand for compute itself has tightened further.

As memory prices normalize, UBS expects hyperscaler spending to ease and free cash flow to improve, a trend it views as ultimately positive for the AI trade despite any near-term drag on semis.

NVIDIA NVDA , a U.S. designer of processors used for artificial-intelligence computing, fell approximately 2.3% in Wednesday's regular-session trading as of 11:18 a.m. ET as investors assessed SK Hynix's disappointing earnings and continuing pressure across semiconductor stocks. SK Hynix HXSCL , a South Korean memory-chip producer supplying NVIDIA, closed 9.6% lower after its record profit missed expectations. The Philadelphia Semiconductor Index declined 1.6% during morning trading.

SK Hynix's operating profit increased more than sixfold, supported by demand for advanced memory used in AI systems. However, shipment delays involving some advanced products limited price increases for its DRAM chips. The company disclosed approximately 10 long-term supply agreements, but analysts said the arrangements could restrict gains if memory prices continue rising. Investors were also disappointed by the absence of detailed plans for increasing shareholder returns.

NVIDIA's decline illustrates how investor attention has shifted from AI spending commitments toward evidence that infrastructure investment is producing sufficient financial returns. Reuters reported that investors were also concerned about intensifying competition from Chinese chipmakers and lower-cost AI models. Microsoft and Meta Platforms are scheduled to report after Wednesday's close, followed by Amazon and Apple later in the week. Their cloud growth, AI revenue and infrastructure-spending disclosures could influence whether pressure on NVIDIA and the broader semiconductor sector continues.

Instead, the data storage company argues that smarter storage architecture can help AI systems get more work out of the same expensive GPUs—a shift that could lower infrastructure costs while boosting productivity.

AI Needs More Than Faster Chips“Our recent white paper with SK hynix illustrates the importance of tiered storage for inference and agentic AI workloads, which show a direct benefit to hard drive storage,” CEO Dave Mosley said on the company’s fiscal fourth-quarter earnings call.

At the center of that approach is key-value, or KV, cache, which stores previously generated context so AI models can retrieve it instead of recreating it each time. “Key-value, or KV cache, is used to retain and reuse that context efficiently,” Mosley said.

How Storage Unlocks Nvidia GPUsAccording to Seagate, that seemingly simple change has an outsized impact on AI economics. By moving context across memory, solid-state drives and hard drives instead of forcing GPUs to recompute it, AI infrastructure can make better use of its most expensive hardware.

“This drives the need for increased hard drive storage and reduces GPU usage during the most compute-intensive phases of an agentic application. As a result, GPU resources are available for additional revenue-generating workloads,” Mosley said.

The message isn’t that GPUs become less important. Rather, Seagate argues that storage is becoming a bigger contributor to AI performance as inference workloads expand and models retain more context over time. That makes storage architecture an increasingly important part of the AI stack alongside compute and memory.

The Next Winner In AI InfrastructureThe comments also reinforce Seagate’s broader investment thesis that AI is creating structural demand for high-capacity storage. Management said cloud data centers now account for roughly 90% of the company’s exabyte shipments, while customers continue extending long-term supply commitments into 2029 and beyond as AI infrastructure scales.

For investors, the takeaway is that the next phase of the AI race may not be won solely by building bigger GPU clusters.

As companies look to squeeze more value out of every Nvidia accelerator they buy, the biggest upgrade could come from the storage systems working quietly behind the scenes.

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Nvidia NVDA shares fell around 2% on Wednesday, extending a recent selloff in semiconductor stocks as investors weighed rising geopolitical tensions, higher oil prices, and growing questions over the sustainability of artificial intelligence spending.

The stock traded around $192, remaining below the psychologically important $200 level.

The broader market also came under pressure as oil prices surged ahead of the Federal Reserve's latest interest rate decision.

The Dow Jones Industrial Average fell 853 points, or 1.6%, while the S&P 500 declined 0.9%. The Nasdaq Composite dropped 1.2%.

Chip stocks remain under pressureSemiconductor stocks extended their recent losses, with the iShares Semiconductor ETF falling more than 4%.

The sector has declined about 10% over the past four trading sessions as investors reassess the returns on heavy AI infrastructure spending and monitor increasing competition from China.

Micron Technology fell 5%, while Advanced Micro Devices also declined more than 5%.

The latest market weakness coincided with another sharp rise in oil prices after President Donald Trump told Fox News that the United States would hit Iran "hard" following surprise attacks.

West Texas Intermediate crude futures climbed 6.9% to $89.88 a barrel.

Investor attention has shifted to quarterly earnings from Microsoft, Meta Platforms, and Amazon, with the reports expected to provide fresh insight into the pace of artificial intelligence investment.

Capital expenditure guidance will be closely watched as a leading indicator of future demand for Nvidia's graphics processors.

Investors will also look for commentary on AI hardware procurement as major technology companies continue developing custom processors with partners such as Broadcom for specific workloads.

While custom chips are generally designed to complement rather than replace Nvidia's graphics processing units, investors continue to assess whether broader adoption could gradually reduce reliance on third-party suppliers.

The earnings reports are expected to help determine whether hyperscale technology companies intend to maintain their current pace of AI infrastructure investment.

Despite the recent selloff, Cathie Wood's ARK Invest added to its Nvidia position.

The firm's flagship ARK Innovation ETF purchased 78,965 Nvidia shares on Tuesday, valued at approximately $15.5 million.

The purchase came a day after Nvidia fell 5% amid investor concerns surrounding more than $750 billion of reported AI infrastructure financing initiatives involving OpenAI and other partners.

ARK also added shares of Tesla and Intuitive Machines during Tuesday's trading session.

The purchase reflects ARK's strategy of increasing positions following sharp share price declines, even as investors continue debating whether elevated AI infrastructure spending will generate sufficient long-term returns to justify current investment levels.

Posted by Defense World Staff on Jul 29th, 2026

Avalon Trust Co trimmed its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 1.0% in the first quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 726,959 shares of the computer hardware maker’s stock after selling 7,633 shares during the period. NVIDIA comprises approximately 8.7% of Avalon Trust Co’s investment portfolio, making the stock its biggest position. Avalon Trust Co’s holdings in NVIDIA were worth $126,782,000 as of its most recent SEC filing.

A number of other hedge funds have also modified their holdings of the stock. Lifetime Wealth Management P.C. purchased a new position in NVIDIA during the 4th quarter valued at about $26,000. Longview Financial Advisors Inc. bought a new stake in NVIDIA in the first quarter worth $27,000. Longfellow Investment Management Co. LLC increased its holdings in shares of NVIDIA by 47.9% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock valued at $33,000 after acquiring an additional 67 shares during the last quarter. Spurstone Advisory Services LLC bought a new position in shares of NVIDIA in the second quarter valued at approximately $40,000. Finally, Inspire Investing LLC bought a new position in NVIDIA in the 4th quarter worth $44,000. 65.27% of the stock is currently owned by institutional investors and hedge funds.

NVIDIA Price Performance NASDAQ:NVDA opened at $197.01 on Wednesday. NVIDIA Corporation has a 52-week low of $164.07 and a 52-week high of $236.54. The company has a market cap of $4.77 trillion, a P/E ratio of 30.17, a P/E/G ratio of 0.38 and a beta of 2.21. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44. The stock’s 50-day simple moving average is $206.86 and its 200 day simple moving average is $195.98.

NVIDIA (NASDAQ:NVDA – Get Free Report) last issued its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.76 by $0.11. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The business had revenue of $81.61 billion during the quarter, compared to the consensus estimate of $78.42 billion. During the same period last year, the business posted $0.81 EPS. NVIDIA’s revenue was up 85.2% on a year-over-year basis. As a group, sell-side analysts forecast that NVIDIA Corporation will post 8.79 EPS for the current fiscal year.

NVIDIA declared that its board has initiated a share buyback program on Wednesday, May 20th that authorizes the company to buyback $80.00 billion in outstanding shares. This buyback authorization authorizes the computer hardware maker to reacquire up to 1.5% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

NVIDIA Increases Dividend The business also recently announced a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Thursday, June 4th were issued a dividend of $0.25 per share. This is an increase from NVIDIA’s previous quarterly dividend of $0.01. The ex-dividend date of this dividend was Thursday, June 4th. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. NVIDIA’s payout ratio is currently 15.31%.

Insider Buying and Selling at NVIDIA In related news, Director Mark A. Stevens sold 885,000 shares of the business’s stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the sale, the director owned 5,207,271 shares in the company, valued at $1,094,412,146.07. The trade was a 14.53% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Stephen C. Neal sold 15,500 shares of the firm’s stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the transaction, the director directly owned 116,135 shares of the company’s stock, valued at $25,053,803.55. The trade was a 11.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 1,901,125 shares of company stock valued at $410,583,015 in the last ninety days. 3.94% of the stock is currently owned by company insiders.

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

Positive Sentiment: CEO Jensen Huang is emphasizing robotics and “physical AI” as the next major growth market, spanning autonomous machines, vehicles, factories and data centers. The company’s expanded Agent Toolkit, PhysicsNeMo and CUDA-X libraries are also being adopted by Cadence, Siemens, Synopsys, Samsung and Silvaco, supporting a broader software-and-platform ecosystem beyond GPU sales. NVIDIA robotics growth article Positive Sentiment: New strategic relationships with Safe Superintelligence, OpenAI, NAVER and other infrastructure partners could increase demand for NVIDIA’s Vera Rubin and Blackwell systems. Analysts remain broadly bullish, with reported price targets well above current trading levels. NVIDIA Safe Superintelligence investment article Neutral Sentiment: NVIDIA is reportedly discussing a potential backstop of up to $250 billion for OpenAI’s Ohio data-center project, alongside a much larger overall infrastructure plan. The arrangement could lock in substantial future chip demand, but it would also expand NVIDIA’s role from supplier to financier and expose it to OpenAI’s creditworthiness and project-execution risks. NVIDIA OpenAI financing article Negative Sentiment: Investors remain concerned that vendor-backed AI infrastructure spending represents circular financing rather than organic customer demand. Reports that NVIDIA could guarantee OpenAI-related obligations helped trigger a broad chip-stock selloff, while rising default-insurance costs have intensified balance-sheet concerns. NVIDIA default insurance costs article Negative Sentiment: Taiwanese authorities reportedly detained an NVIDIA employee in a probe involving alleged diversion of Super Micro AI servers to China. Although no wrongdoing by NVIDIA has been established, the investigation raises additional export-control, legal and reputational risks. Intensifying Chinese competition and weakness across Asian chip stocks are adding pressure to the sector. Taiwan NVIDIA employee investigation article Wall Street Analyst Weigh In A number of analysts have weighed in on the stock. Itau BBA Securities reduced their price target on shares of NVIDIA from $256.00 to $218.00 in a report on Wednesday, June 24th. Raymond James Financial restated a “strong-buy” rating and issued a $330.00 target price on shares of NVIDIA in a research note on Thursday, May 21st. Craig Hallum raised their price target on NVIDIA from $245.00 to $275.00 and gave the company a “buy” rating in a report on Thursday, May 21st. JPMorgan Chase & Co. upped their target price on shares of NVIDIA from $265.00 to $280.00 and gave the stock an “overweight” rating in a research report on Thursday, May 21st. Finally, Wells Fargo & Company reiterated an “overweight” rating and issued a $315.00 price target (up from $265.00) on shares of NVIDIA in a report on Tuesday, May 12th. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, NVIDIA currently has an average rating of “Buy” and an average target price of $304.26.

Read Our Latest Research Report on NVDA

NVIDIA Company Profile (Free Report)

NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.

The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.

Further Reading Five stocks we like better than NVIDIA These 3 Stocks Have Soared in 2026—Can They Keep Climbing? Hasbro’s Earnings Beat Shows Why This Is No Longer Just a Toy Story Rambus: Another AI Phoenix Ready to Rise From the Ashes of Correction Chips & Clips: Memory Tariffs Rewire Tech Supply Chains

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Barings LLC lifted its position in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 11.6% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 34,314 shares of the computer hardware maker’s stock after acquiring an additional 3,564 shares during the quarter. Barings LLC’s holdings in NVIDIA were worth $5,984,000 at the end of the most recent reporting period.

Other large investors have also recently made changes to their positions in the company. State Street Corp boosted its position in shares of NVIDIA by 1.2% during the fourth quarter. State Street Corp now owns 991,480,489 shares of the computer hardware maker’s stock valued at $184,911,111,000 after buying an additional 11,451,386 shares during the period. Geode Capital Management LLC raised its holdings in shares of NVIDIA by 0.6% in the fourth quarter. Geode Capital Management LLC now owns 588,803,093 shares of the computer hardware maker’s stock worth $109,446,217,000 after buying an additional 3,383,441 shares during the period. Norges Bank bought a new stake in shares of NVIDIA during the 4th quarter worth approximately $62,244,133,000. Bank of America Corp DE lifted its stake in shares of NVIDIA by 1.5% during the 4th quarter. Bank of America Corp DE now owns 187,181,484 shares of the computer hardware maker’s stock worth $34,909,347,000 after acquiring an additional 2,849,678 shares during the last quarter. Finally, Legal & General Group Plc boosted its holdings in NVIDIA by 1.5% during the 3rd quarter. Legal & General Group Plc now owns 181,203,035 shares of the computer hardware maker’s stock valued at $33,808,862,000 after acquiring an additional 2,609,560 shares during the period. 65.27% of the stock is owned by hedge funds and other institutional investors.

NVIDIA Price Performance Shares of NVDA stock opened at $197.01 on Wednesday. NVIDIA Corporation has a twelve month low of $164.07 and a twelve month high of $236.54. The company has a current ratio of 3.44, a quick ratio of 2.85 and a debt-to-equity ratio of 0.04. The stock has a fifty day simple moving average of $206.86 and a two-hundred day simple moving average of $195.98. The stock has a market capitalization of $4.77 trillion, a price-to-earnings ratio of 30.17, a P/E/G ratio of 0.38 and a beta of 2.21.

NVIDIA (NASDAQ:NVDA – Get Free Report) last announced its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, beating the consensus estimate of $1.76 by $0.11. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The firm had revenue of $81.61 billion for the quarter, compared to analyst estimates of $78.42 billion. During the same quarter last year, the firm posted $0.81 earnings per share. The business’s revenue for the quarter was up 85.2% on a year-over-year basis. On average, analysts predict that NVIDIA Corporation will post 8.79 EPS for the current fiscal year.

NVIDIA Increases Dividend The firm also recently announced a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Thursday, June 4th were given a dividend of $0.25 per share. This is a positive change from NVIDIA’s previous quarterly dividend of $0.01. The ex-dividend date of this dividend was Thursday, June 4th. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. NVIDIA’s payout ratio is 15.31%.

NVIDIA announced that its Board of Directors has authorized a share repurchase program on Wednesday, May 20th that authorizes the company to buyback $80.00 billion in shares. This buyback authorization authorizes the computer hardware maker to repurchase up to 1.5% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board of directors believes its stock is undervalued.

Analysts Set New Price Targets A number of analysts have weighed in on NVDA shares. UBS Group increased their target price on NVIDIA from $275.00 to $280.00 and gave the stock a “buy” rating in a research note on Thursday, May 21st. Bank of America reissued a “buy” rating and set a $350.00 target price (up from $320.00) on shares of NVIDIA in a research note on Thursday, May 21st. JPMorgan Chase & Co. upped their price target on shares of NVIDIA from $265.00 to $280.00 and gave the stock an “overweight” rating in a report on Thursday, May 21st. Itau BBA Securities reduced their price target on shares of NVIDIA from $256.00 to $218.00 in a research note on Wednesday, June 24th. Finally, Robert W. Baird set a $500.00 price objective on shares of NVIDIA and gave the company an “outperform” rating in a report on Thursday, May 21st. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of “Buy” and a consensus price target of $304.26.

View Our Latest Stock Analysis on NVDA

Insider Activity In other news, Director Mark A. Stevens sold 885,000 shares of the company’s stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $210.17, for a total value of $186,000,450.00. Following the completion of the sale, the director owned 5,207,271 shares of the company’s stock, valued at approximately $1,094,412,146.07. This represents a 14.53% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Stephen C. Neal sold 15,500 shares of the stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the transaction, the director owned 116,135 shares in the company, valued at approximately $25,053,803.55. This represents a 11.77% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 1,901,125 shares of company stock worth $410,583,015. 3.94% of the stock is currently owned by corporate insiders.

Trending Headlines about NVIDIA Here are the key news stories impacting NVIDIA this week:

Positive Sentiment: CEO Jensen Huang is emphasizing robotics and “physical AI” as the next major growth market, spanning autonomous machines, vehicles, factories and data centers. The company’s expanded Agent Toolkit, PhysicsNeMo and CUDA-X libraries are also being adopted by Cadence, Siemens, Synopsys, Samsung and Silvaco, supporting a broader software-and-platform ecosystem beyond GPU sales. NVIDIA robotics growth article Positive Sentiment: New strategic relationships with Safe Superintelligence, OpenAI, NAVER and other infrastructure partners could increase demand for NVIDIA’s Vera Rubin and Blackwell systems. Analysts remain broadly bullish, with reported price targets well above current trading levels. NVIDIA Safe Superintelligence investment article Neutral Sentiment: NVIDIA is reportedly discussing a potential backstop of up to $250 billion for OpenAI’s Ohio data-center project, alongside a much larger overall infrastructure plan. The arrangement could lock in substantial future chip demand, but it would also expand NVIDIA’s role from supplier to financier and expose it to OpenAI’s creditworthiness and project-execution risks. NVIDIA OpenAI financing article Negative Sentiment: Investors remain concerned that vendor-backed AI infrastructure spending represents circular financing rather than organic customer demand. Reports that NVIDIA could guarantee OpenAI-related obligations helped trigger a broad chip-stock selloff, while rising default-insurance costs have intensified balance-sheet concerns. NVIDIA default insurance costs article Negative Sentiment: Taiwanese authorities reportedly detained an NVIDIA employee in a probe involving alleged diversion of Super Micro AI servers to China. Although no wrongdoing by NVIDIA has been established, the investigation raises additional export-control, legal and reputational risks. Intensifying Chinese competition and weakness across Asian chip stocks are adding pressure to the sector. Taiwan NVIDIA employee investigation article About NVIDIA (Free Report)

NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.

The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.

Featured Stories Five stocks we like better than NVIDIA These 3 Stocks Have Soared in 2026—Can They Keep Climbing? Hasbro’s Earnings Beat Shows Why This Is No Longer Just a Toy Story Rambus: Another AI Phoenix Ready to Rise From the Ashes of Correction Chips & Clips: Memory Tariffs Rewire Tech Supply Chains

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.

Gerald Baker Financial Group LLC bought a new stake in NVIDIA Corporation (NASDAQ:NVDA – Free Report) during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor bought 31,372 shares of the computer hardware maker’s stock, valued at approximately $5,471,000. NVIDIA makes up approximately 1.8% of Gerald Baker Financial Group LLC’s holdings, making the stock its 17th biggest position.

A number of other large investors have also recently bought and sold shares of the stock. Norges Bank acquired a new stake in shares of NVIDIA during the fourth quarter valued at $62,244,133,000. J. Stern & Co. LLP increased its position 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 in the last quarter. Cardano Risk Management B.V. raised its stake in NVIDIA by 896.4% in the 4th quarter. Cardano Risk Management B.V. now owns 78,123,960 shares of the computer hardware maker’s stock valued at $14,570,119,000 after purchasing an additional 70,283,539 shares during the last quarter. Capital Research Global Investors lifted its holdings in NVIDIA by 16.1% in the 3rd quarter. Capital Research Global Investors now owns 165,377,852 shares of the computer hardware maker’s stock valued at $30,855,564,000 after purchasing an additional 22,896,705 shares in the last quarter. Finally, Laurel Wealth Advisors LLC lifted its holdings in NVIDIA by 15,496.1% in the 2nd quarter. Laurel Wealth Advisors LLC now owns 21,865,525 shares of the computer hardware maker’s stock valued at $3,454,534,000 after purchasing an additional 21,725,326 shares in the last quarter. Institutional investors and hedge funds own 65.27% of the company’s stock.

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

Positive Sentiment: CEO Jensen Huang is emphasizing robotics and “physical AI” as the next major growth market, spanning autonomous machines, vehicles, factories and data centers. The company’s expanded Agent Toolkit, PhysicsNeMo and CUDA-X libraries are also being adopted by Cadence, Siemens, Synopsys, Samsung and Silvaco, supporting a broader software-and-platform ecosystem beyond GPU sales. NVIDIA robotics growth article Positive Sentiment: New strategic relationships with Safe Superintelligence, OpenAI, NAVER and other infrastructure partners could increase demand for NVIDIA’s Vera Rubin and Blackwell systems. Analysts remain broadly bullish, with reported price targets well above current trading levels. NVIDIA Safe Superintelligence investment article Neutral Sentiment: NVIDIA is reportedly discussing a potential backstop of up to $250 billion for OpenAI’s Ohio data-center project, alongside a much larger overall infrastructure plan. The arrangement could lock in substantial future chip demand, but it would also expand NVIDIA’s role from supplier to financier and expose it to OpenAI’s creditworthiness and project-execution risks. NVIDIA OpenAI financing article Negative Sentiment: Investors remain concerned that vendor-backed AI infrastructure spending represents circular financing rather than organic customer demand. Reports that NVIDIA could guarantee OpenAI-related obligations helped trigger a broad chip-stock selloff, while rising default-insurance costs have intensified balance-sheet concerns. NVIDIA default insurance costs article Negative Sentiment: Taiwanese authorities reportedly detained an NVIDIA employee in a probe involving alleged diversion of Super Micro AI servers to China. Although no wrongdoing by NVIDIA has been established, the investigation raises additional export-control, legal and reputational risks. Intensifying Chinese competition and weakness across Asian chip stocks are adding pressure to the sector. Taiwan NVIDIA employee investigation article Wall Street Analyst Weigh In A number of equities research analysts have recently commented on NVDA shares. Argus lifted their price target on shares of NVIDIA from $220.00 to $270.00 and gave the stock a “buy” rating in a report on Thursday, May 21st. CICC Research upped their price objective on shares of NVIDIA from $240.60 to $268.30 and gave the company an “outperform” rating in a research note on Friday, May 22nd. Barclays restated an “overweight” rating on shares of NVIDIA in a research report on Thursday, May 21st. Bank of America reaffirmed a “buy” rating and issued a $350.00 target price (up from $320.00) on shares of NVIDIA in a research note on Thursday, May 21st. Finally, Wells Fargo & Company reiterated an “overweight” rating and issued a $315.00 price target (up from $265.00) on shares of NVIDIA in a report on Tuesday, May 12th. Three analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Buy” and a consensus target price of $304.26.

View Our Latest Stock Report on NVIDIA

Insider Buying and Selling at NVIDIA In other news, Director Mark A. Stevens sold 885,000 shares of the stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $210.17, for a total value of $186,000,450.00. Following the completion of the sale, the director owned 5,207,271 shares of the company’s stock, valued at $1,094,412,146.07. This represents a 14.53% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Stephen C. Neal sold 15,500 shares of NVIDIA stock in a transaction on Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the transaction, the director owned 116,135 shares in the company, valued at $25,053,803.55. The trade was a 11.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 1,901,125 shares of company stock valued at $410,583,015 over the last ninety days. Corporate insiders own 3.94% of the company’s stock.

NVIDIA Price Performance NVDA stock opened at $197.01 on Wednesday. The company has a market cap of $4.77 trillion, a PE ratio of 30.17, a price-to-earnings-growth ratio of 0.38 and a beta of 2.21. The company has a current ratio of 3.44, a quick ratio of 2.85 and a debt-to-equity ratio of 0.04. The stock has a 50-day moving average price of $206.86 and a two-hundred day moving average price of $195.98. NVIDIA Corporation has a 12-month low of $164.07 and a 12-month high of $236.54.

NVIDIA (NASDAQ:NVDA – Get Free Report) last released its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, topping analysts’ consensus estimates of $1.76 by $0.11. The company had revenue of $81.61 billion for the quarter, compared to the consensus estimate of $78.42 billion. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The company’s quarterly revenue was up 85.2% compared to the same quarter last year. During the same period last year, the business posted $0.81 EPS. As a group, research analysts predict that NVIDIA Corporation will post 8.79 EPS for the current year.

NVIDIA Increases Dividend The firm also recently declared a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Thursday, June 4th were issued a $0.25 dividend. The ex-dividend date was Thursday, June 4th. This is a positive change from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 annualized dividend and a yield of 0.5%. NVIDIA’s payout ratio is 15.31%.

NVIDIA declared that its Board of Directors has approved a share buyback program on Wednesday, May 20th that authorizes the company to buyback $80.00 billion in outstanding shares. This buyback authorization authorizes the computer hardware maker to buy up to 1.5% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s board of directors believes its stock is undervalued.

About NVIDIA (Free Report)

NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.

The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.

Read More Five stocks we like better than NVIDIA These 3 Stocks Have Soared in 2026—Can They Keep Climbing? Hasbro’s Earnings Beat Shows Why This Is No Longer Just a Toy Story Rambus: Another AI Phoenix Ready to Rise From the Ashes of Correction Chips & Clips: Memory Tariffs Rewire Tech Supply Chains 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.

Forty three Eighteen Advisors LLC lowered its position in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 62.2% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 8,843 shares of the computer hardware maker’s stock after selling 14,539 shares during the quarter. Forty three Eighteen Advisors LLC’s holdings in NVIDIA were worth $1,542,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the company. State Street Corp raised its position in NVIDIA by 1.2% in the fourth quarter. State Street Corp now owns 991,480,489 shares of the computer hardware maker’s stock valued at $184,911,111,000 after purchasing an additional 11,451,386 shares during the period. Geode Capital Management LLC increased its position in shares of NVIDIA by 0.6% during the 4th quarter. Geode Capital Management LLC now owns 588,803,093 shares of the computer hardware maker’s stock worth $109,446,217,000 after purchasing an additional 3,383,441 shares during the last quarter. Norges Bank acquired a new stake in shares of NVIDIA during the 4th quarter worth about $62,244,133,000. Bank of America Corp DE raised its holdings in NVIDIA by 1.5% in the 4th quarter. Bank of America Corp DE now owns 187,181,484 shares of the computer hardware maker’s stock valued at $34,909,347,000 after buying an additional 2,849,678 shares during the period. Finally, Legal & General Group Plc raised its holdings in NVIDIA by 1.5% in the 3rd quarter. Legal & General Group Plc now owns 181,203,035 shares of the computer hardware maker’s stock valued at $33,808,862,000 after buying an additional 2,609,560 shares during the period. 65.27% of the stock is currently owned by institutional investors and hedge funds.

NVIDIA Stock Performance Shares of NVDA opened at $197.01 on Wednesday. The company has a market capitalization of $4.77 trillion, a price-to-earnings ratio of 30.17, a price-to-earnings-growth ratio of 0.38 and a beta of 2.21. NVIDIA Corporation has a 52-week low of $164.07 and a 52-week high of $236.54. The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04. The stock has a 50 day moving average price of $206.86 and a 200 day moving average price of $195.98.

NVIDIA (NASDAQ:NVDA – Get Free Report) last released its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, topping analysts’ consensus estimates of $1.76 by $0.11. The company had revenue of $81.61 billion for the quarter, compared to analysts’ expectations of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The firm’s revenue for the quarter was up 85.2% on a year-over-year basis. During the same quarter last year, the company earned $0.81 earnings per share. Research analysts predict that NVIDIA Corporation will post 8.79 EPS for the current fiscal year.

NVIDIA announced that its Board of Directors has authorized a share buyback plan on Wednesday, May 20th that permits the company to repurchase $80.00 billion in shares. This repurchase authorization permits the computer hardware maker to buy up to 1.5% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s management believes its shares are undervalued.

NVIDIA Increases Dividend The business also recently declared a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Thursday, June 4th were paid a dividend of $0.25 per share. The ex-dividend date was Thursday, June 4th. This represents a $1.00 annualized dividend and a yield of 0.5%. This is an increase from NVIDIA’s previous quarterly dividend of $0.01. NVIDIA’s dividend payout ratio (DPR) is 15.31%.

Insider Activity at NVIDIA In other news, Director Stephen C. Neal sold 15,500 shares of NVIDIA stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the sale, the director owned 116,135 shares in the company, valued at approximately $25,053,803.55. The trade was a 11.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Mark A. Stevens sold 885,000 shares of the business’s stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $210.17, for a total value of $186,000,450.00. Following the completion of the sale, the director directly owned 5,207,271 shares of the company’s stock, valued at $1,094,412,146.07. The trade was a 14.53% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 1,901,125 shares of company stock valued at $410,583,015 over the last ninety days. Insiders own 3.94% of the company’s stock.

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

Positive Sentiment: CEO Jensen Huang is emphasizing robotics and “physical AI” as the next major growth market, spanning autonomous machines, vehicles, factories and data centers. The company’s expanded Agent Toolkit, PhysicsNeMo and CUDA-X libraries are also being adopted by Cadence, Siemens, Synopsys, Samsung and Silvaco, supporting a broader software-and-platform ecosystem beyond GPU sales. NVIDIA robotics growth article Positive Sentiment: New strategic relationships with Safe Superintelligence, OpenAI, NAVER and other infrastructure partners could increase demand for NVIDIA’s Vera Rubin and Blackwell systems. Analysts remain broadly bullish, with reported price targets well above current trading levels. NVIDIA Safe Superintelligence investment article Neutral Sentiment: NVIDIA is reportedly discussing a potential backstop of up to $250 billion for OpenAI’s Ohio data-center project, alongside a much larger overall infrastructure plan. The arrangement could lock in substantial future chip demand, but it would also expand NVIDIA’s role from supplier to financier and expose it to OpenAI’s creditworthiness and project-execution risks. NVIDIA OpenAI financing article Negative Sentiment: Investors remain concerned that vendor-backed AI infrastructure spending represents circular financing rather than organic customer demand. Reports that NVIDIA could guarantee OpenAI-related obligations helped trigger a broad chip-stock selloff, while rising default-insurance costs have intensified balance-sheet concerns. NVIDIA default insurance costs article Negative Sentiment: Taiwanese authorities reportedly detained an NVIDIA employee in a probe involving alleged diversion of Super Micro AI servers to China. Although no wrongdoing by NVIDIA has been established, the investigation raises additional export-control, legal and reputational risks. Intensifying Chinese competition and weakness across Asian chip stocks are adding pressure to the sector. Taiwan NVIDIA employee investigation article Analyst Ratings Changes Several research analysts have weighed in on the stock. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and set a $255.00 target price (up from $220.00) on shares of NVIDIA in a research note on Thursday, May 21st. Barclays reissued an “overweight” rating on shares of NVIDIA in a research note on Thursday, May 21st. Sanford C. Bernstein restated a “buy” rating on shares of NVIDIA in a report on Monday, June 29th. Itau BBA Securities lowered their price objective on shares of NVIDIA from $256.00 to $218.00 in a research report on Wednesday, June 24th. Finally, The Goldman Sachs Group reiterated a “buy” rating and issued a $285.00 target price (up from $250.00) on shares of NVIDIA in a report on Wednesday, May 20th. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Buy” and an average price target of $304.26.

Check Out Our Latest Report on NVIDIA

NVIDIA Profile (Free Report)

NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.

The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.

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Semiconductor maker Nvidia (NVDA, Financials) ticked higher in premarket trade after three straight sessions of losses as investors balanced increased buying ac

Investors allocating capital to the artificial intelligence sector are facing a complex transition in market mechanics. The early phase of the AI infrastructure boom relied heavily on organic hardware procurement, with hyperscalers purchasing silicon outright to build generative models.

Today, the physical economy underlying these digital networks is shifting toward a highly leveraged, vendor-financed credit cycle. Mega-cap semiconductor providers find themselves stepping in to guarantee immense counterparty debt to sustain client buildouts. Primary hyperscalers are actively maneuvering to capture infrastructure premiums, cannibalizing specialized cloud vendors in the process. Understanding how these capital expenditures impact balance sheets helps clarify where the structural integrity of peak demand might be fracturing.

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Co-Signing the Future: NVIDIA's $250B Credit WrapNVIDIA Today

$192.24 -4.78 (-2.42%)

As of 10:19 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$164.07▼

$236.54Dividend Yield0.52%

P/E Ratio29.42

Price Target$304.26

For years, chipmakers operated on a highly efficient business model. They designed advanced processors, contracted fabrication, and sold the hardware to top-tier technology firms. That dynamic is experiencing a structural evolution. NVIDIA NASDAQ: NVDA recently entered negotiations to provide a $250 billion credit wrap to backstop OpenAI's 10-gigawatt SoftBank data center lease in Ohio.

Because OpenAI lacks an investment-grade credit rating, the artificial intelligence (AI) research laboratory requires external balance sheets to secure physical data center leases at this unprecedented scale. Think of it like co-signing a mortgage for an entity that lacks the required credit score, except this entity wants to build a multi-billion-dollar AI factory.

Discussions also include an additional $350 billion in financing specifically for silicon, bringing the total project scope to over $500 billion. The market reacted sharply to the sheer scale of this contingent liability, sending NVIDIA shares down after the report surfaced.

Looking closely at Q1 fiscal year 2027 data, the picture reveals why the market is aggressively unwinding the equity. NVIDIA posted $58 billion in net income, yet $13.4 billion of that figure stems from unrealized equity gains rather than core operations. Revenue concentration remains a prevailing headwind, with 54% of top-line generation tied to just three hyperscaler clients.

By guaranteeing construction debt and leasing obligations for a privately held, loss-making entity, the hardware designer becomes a systemic infrastructure financier. This aggressive maneuver effectively locks in a captive deployment environment for its next-generation architecture, neutralizing the threat of OpenAI fully transitioning to custom silicon. This strategy relies heavily on perfect execution and uninterrupted compute utilization.

Institutional investors are actively pricing in the counterparty risk. Five-year credit default swap pricing, the cost to insure NVIDIA debt against default, rose by 0.14 percentage points, marking the highest margin expansion on record.

Buying the Customer: The Cost of Artificial DemandThe capital intensity required to secure regional hardware ecosystems extends beyond the region. NVIDIA recently invested $1 billion to secure a 4.5% equity stake in South Korean tech conglomerate Naver. Conducted alongside a $9 billion financing term sheet from Brookfield, this transaction aims to scale the GAK Sejong data center to 200 megawatts by 2028, utilizing proprietary platforms.

These sovereign investments in AI illustrate the immense upfront capital required to maintain market dominance. Acting as a financial backstop secures long-term revenue floors, but it also signals reliance on circular financing, in which NVIDIA absorbs contingent leasing debt to support future silicon demand. The model can work well if customers keep using the capacity and generating cash flow, but it becomes more fragile if end demand weakens.

Stranded Assets: The GPU Rental Market ImplodesOpenAI's push for a proprietary 10-gigawatt campus in Ohio threatens the established hierarchy of cloud computing. This aggressive expansion marks a strategic pivot from renting compute capacity to directly controlling physical infrastructure.

This maneuver directly affects Microsoft NASDAQ: MSFT. Microsoft faces early fractures in its legacy cloud alliances as OpenAI actively maneuvers to decentralize its infrastructure and reduce its reliance on Azure.

CoreWeave Today

$64.31 -2.99 (-4.45%)

As of 10:19 AM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$63.80▼

$153.20Price Target$136.25

While hyperscalers navigate shifting alliances, specialized AI infrastructure providers face severe operational distress. CoreWeave NASDAQ: CRWV is a primary example of rapid margin compression in the specialized GPU rental market. CoreWeave is trading well below its recent highs, with a negative earnings multiple and recen t price action that has included a sharp single-session drawdown.

The fundamental breakdown at CoreWeave accelerated following a major structural shift from its largest customer. Meta Platforms NASDAQ: META holds $35.2 billion in infrastructure contracts with CoreWeave. The launch of Meta Compute, a direct commercial cloud service designed to monetize excess capacity, transformed Meta Platforms from a primary buyer into a direct competitor. This introduction poses a structural threat to the independent GPU rental business model, sparking fears of stranded assets across the sector.

A review of CRWV's Q1 2026 fundamentals highlights the acute pressure. CoreWeave reported a widening net loss of $740 million, $536 million in interest expense, and negative free cash flow of $4.7 billion. Total liabilities have scaled to $50.8 billion. Insider action often foreshadows deeper fundamental issues. CoreWeave CEO Michael Intrator executed a series of recent stock sales totaling nearly $55 million, including his most recent sale of $24.07 million on July 21, 2026. This liquidation occurred alongside a pending securities fraud class action regarding data center construction delays, establishing an expanding multi-month pattern of executive selling inside of CoreWeave.

The Contagion Effect: Hedging the AI Supply ChainThe unconstrained AI spending cycle is showing structural fatigue, forcing a harsh repricing of systemic risk across the entire supply chain. Billions in data center asset-backed securities currently sit on the books of private equity-owned insurers. Data center asset-backed securities package leasing contracts into tradable debt. When yields rise, the cost to service this debt balloons, squeezing the underlying operator. If a tenant defaults, the guarantor absorbs the shock. Elevated long-term bond yields continuously threaten the stability of these circular financing loops.

When primary silicon vendors underwrite client infrastructure, it establishes a hard ceiling on unconstrained organic demand. Prominent institutional investors like Michael Burry have heavily increased short positions against the sector, targeting structural vulnerabilities in private credit linked to data center buildouts and semiconductor leases. The synchronized equity contraction across the processor ecosystem indicates a macroeconomic realization that peak data center capital expenditure relies increasingly on unsustainable vendor financing.

Surviving the Silicon Credit CrunchThe transition from hardware vendor to systemic infrastructure financier introduces unprecedented capital risk to balance sheets previously praised for pristine efficiency. The hardware ecosystem lock-in provides a tangible floor for long-term revenue, but the sheer scale of infrastructure financing forces the broader market to question the limits of peak capital expenditure.

Investors tracking the broader compute infrastructure buildout may want to evaluate institutional hedging metrics and insider liquidation patterns to identify structural shifts before they are fully priced into equity valuations.

Cautious market participants might consider waiting for stabilization in neocloud free cash flow metrics and clarity on hyperscaler insourcing before establishing long-term exposure to specialized infrastructure providers.

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