Track market-moving stories before they get noisy

Key Takeaways CBRS' core cloud and services revenues surged 287% y/y to $127.7M in Q2'26.Cerebras expects throughput to rise more than 20-fold in 18 months while doubling system speed annually.CBRS expects manufacturing capacity to rise over tenfold in 2026, supported by secured TSMC wafer supply. Cerebras Systems (CBRS - Free Report) is expanding its technology roadmap and customer base to strengthen its position in the fast-growing artificial intelligence (AI) inference market. The company is improving speed, throughput and power efficiency while expanding into coding, agentic AI, security and enterprise workloads. These initiatives broaden CBRS’ market opportunity and strengthen its competitive positioning against NVIDIA (NVDA - Free Report) and Alphabet (GOOGL - Free Report) . CBRS’ core cloud and other services revenues surged 287% year over year to $127.7 million in the second quarter of 2026, highlighting rising demand for its fast-inference capabilities.

CBRS expects to double system speed annually over the next several years and increase throughput by more than 20 times over the next 18 months. Its disaggregated inference architecture with AMD combines Cerebras systems with AMD Helios racks, retaining CBRS’ inference speed while increasing throughput by up to five times. This can increase tokens generated per system while reducing costs and power consumption per token, supporting better inference economics and data-center profitability.

Strategic partnerships are also expanding CBRS’ reach. Its collaboration with Amazon Web Services ("AWS") is expected to bring disaggregated inference to Amazon Bedrock in the first quarter of 2027. CBRS supports OpenAI’s GPT-5.6 Sol at a speed that is 10 times faster. Discussions with other hyperscalers are progressing, with first revenues expected around mid-2027 and a broader ramp thereafter. Notably, the company’s $25.4 billion in remaining performance obligations excludes backlog from AWS and other hyperscalers, leaving scope for incremental growth.

Customer expansion further broadens the opportunity. CBRS signed six deals worth more than $30 million each in the second quarter and added customers such as Cognition, Lovable and Figma in AI coding, while Block, AlphaSense and GSK are using its fast inference for agentic workflows. CrowdStrike represents a move into AI-powered cybersecurity. Cerebras’ customer base spans hyperscalers, foundation-model labs, AI-native companies, enterprises and sovereign AI initiatives.

Capacity investments should help support this growth. CBRS has more than 600 MW of data-center capacity live or contracted through the end of 2027, while its pipeline is measured in gigawatts. Manufacturing capacity is expected to rise more than tenfold in 2026, supported by secured TSMC wafer supply. Its wafer-scale architecture avoids HBM, CoWoS packaging and 3-nanometer fabrication, reducing exposure to several industry supply constraints.

CBRS Faces Tough CompetitionNVIDIA remains a major competitive threat to Cerebras Systems. NVIDIA highlighted its Vera Rubin platform, which integrates central processing units, graphics processing units, NVLink, networking and software. Vera Rubin is designed to deliver 30 times higher throughput per megawatt and 35 times lower token costs than Grace Blackwell Ultra. NVIDIA has secured Vera Rubin purchase orders from every major hyperscaler, AI cloud provider and system original equipment manufacturer. Its Groq 3 LPX rack-scale language processing unit further targets high-speed inference.

Alphabet is increasing pressure on CBRS. Google Cloud offers Tensor Processing Units (TPUs), including TPU 8t and 8i, alongside NVIDIA accelerators, while its Virgo Network can connect up to 1 million AI accelerators across multiple data centers. Alphabet is expanding Gemini and agentic AI capabilities, with nearly 90% of Fortune 100 companies using Gemini Enterprise. Google has begun delivering TPU systems directly to customer data centers, marking an expansion of its AI infrastructure business beyond its cloud environment.

CBRS’ Share Price Performance, Valuation & EstimatesShares of Cerebras have lost 38.3% over the past three months, underperforming the broader Zacks Business Services sector’s 11.1% decline.

CBRS Stock’s Price Performance
Image Source: Zacks Investment Research

Cerebras currently has a Value Score of D, reflecting an outstretched valuation.

Wall Street’s consensus price target implies a 50.47% upside from the current levels.

Price Target chart
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Cerebras’ loss is pegged at 13 cents per share, an improvement from a loss of 22 cents over the past 30 days.

Cerebras currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Nvidia stock NVDA fell nearly 3% on Monday as concerns over the pace of artificial intelligence development triggered a selloff in AI-related equities.

The decline came after executives at major AI companies called for a slower approach to advancing increasingly capable models.

The broader market also weakened, with the S&P 500 falling 0.33%, the Nasdaq Composite declining 0.38% and the Dow Jones Industrial Average losing 0.12%.

The selloff has raised questions over whether investors should buy the dip in Nvidia, wait for further clarity or reduce their exposure to the chipmaker.

Anthropic CEO Dario Amodei called for AI companies to slow the rate at which they advance model capabilities in a lengthy essay published on X on Saturday.

He cited growing concerns about the potential misuse of artificial intelligence.

OpenAI CEO Sam Altman and xAI chief Elon Musk said they agreed with Amodei's proposal.

Altman also said OpenAI would not proceed with an initial public offering this year, citing safety concerns.

The comments have prompted investors to reassess the rapid expansion of AI development and the substantial spending that has supported demand for advanced computing infrastructure.

A slower pace of AI development could potentially reduce the need for heavy investment in the technology.

That would create a risk for chipmakers such as Nvidia, whose business has benefited from the expansion of AI infrastructure.

Bernstein analysts led by Stacy Rasgon said the developments could further depress sentiment across the semiconductor sector, which had already been recovering after falling roughly 19% from its June peak.

Despite the recent pressure, Bernstein reiterated its Outperform ratings on Nvidia and Broadcom and recommended buying weakness in both stocks.

The analysts argued that a slowdown in the pace of AI development does not necessarily mean a slowdown in spending.

They noted that Amodei had not called for a halt to AI training, but rather a shift from an extremely fast pace to a somewhat slower one.

Bernstein said such a pace could still represent significant growth for the industry. The firm also pointed to rising demand from AI inference and agentic applications.

The analysts noted that there is already insufficient computing capacity to meet demand for even existing AI models, suggesting that infrastructure requirements could remain substantial despite concerns over the pace of model development.

Anthropic's own spending also provides context for the debate.

According to The Information, the company agreed to 14.8 gigawatts of computing capacity involving approximately $517 billion in commitments over the 11 months through August.

The Financial Times also reported that Anthropic expects a second consecutive quarter of adjusted operating profit, with inference gross margins exceeding 80% before distribution costs.

Nvidia has been seeking to reduce its dependence on a small number of major customers by supporting a wider AI ecosystem.

The company has invested in startups and backed open-source AI models, which users can download and modify.

Earlier this month, Nvidia agreed to acquire open-source AI development platform Hugging Face in a $12.9 billion deal, according to the report.

The chipmaker also has customers whose AI ambitions may continue regardless of calls for slower development.

Musk, for example, has said SpaceX is highly confident it will launch Nvidia-powered AI servers in space next year.

SpaceX has previously indicated that it plans to use Nvidia hardware for orbital data centres, potentially addressing some of the land and power constraints facing conventional facilities.

However, the economic viability of orbital data centres remains subject to skepticism.

Capstone Wealth Management LLC increased its stake in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 209.3% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 13,892 shares of the computer hardware maker’s stock after purchasing an additional 9,401 shares during the quarter. NVIDIA accounts for 1.3% of Capstone Wealth Management LLC’s holdings, making the stock its 7th largest holding. Capstone Wealth Management LLC’s holdings in NVIDIA were worth $2,780,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Lifetime Wealth Management P.C. acquired a new stake in NVIDIA during the fourth quarter worth approximately $26,000. Longview Financial Advisors Inc. acquired a new stake in shares of NVIDIA during the first quarter worth about $27,000. Longfellow Investment Management Co. LLC lifted its holdings in shares of NVIDIA by 47.9% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock valued at $33,000 after purchasing an additional 67 shares during the last quarter. Phillip James Consulting Co. purchased a new stake in shares of NVIDIA in the 1st quarter valued at about $40,000. Finally, Spurstone Advisory Services LLC acquired a new stake in shares of NVIDIA in the 2nd quarter valued at about $40,000. Institutional investors and hedge funds own 65.27% of the company’s stock.

Insider Buying and Selling In other news, EVP Timothy Teter sold 30,000 shares of the company’s stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $217.88, for a total value of $6,536,400.00. Following the completion of the sale, the executive vice president owned 2,687,660 shares of the company’s stock, valued at $585,587,360.80. This represents a 1.10% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Stevens sold 885,000 shares of NVIDIA stock in a transaction that occurred 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 owned 5,207,271 shares in the company, valued at $1,094,412,146.07. This represents a 14.53% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 2,585,740 shares of company stock worth $571,015,527. 3.94% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes A number of analysts recently weighed in on the stock. Phillip Securities increased their price target on shares of NVIDIA from $285.00 to $300.00 and gave the stock a “buy” rating in a research note on Monday, August 31st. Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of NVIDIA in a research report on Monday, August 31st. Wedbush upped their price objective on NVIDIA from $330.00 to $345.00 and gave the company an “outperform” rating in a research note on Thursday, August 27th. UBS Group set a $300.00 price objective on NVIDIA and gave the stock a “buy” rating in a research report on Thursday, August 27th. Finally, Citic Securities lifted their target price on NVIDIA from $242.00 to $315.00 and gave the company a “buy” rating in a research note on Friday, May 22nd. Three investment analysts have rated the stock with a Strong Buy rating, fifty have given a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Buy” and an average price target of $324.34. Read Our Latest Report on NVDA

NVIDIA Price Performance Shares of NASDAQ:NVDA opened at $218.29 on Monday. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14. The company has a market capitalization of $5.26 trillion, a P/E ratio of 27.60, a P/E/G ratio of 1.71 and a beta of 2.22. NVIDIA Corporation has a 52-week low of $164.27 and a 52-week high of $236.54. The stock’s fifty day simple moving average is $213.29 and its 200-day simple moving average is $203.41.

NVIDIA (NASDAQ:NVDA – Get Free Report) last issued its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, beating the consensus estimate of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%.The company had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. During the same period in the previous year, the firm posted $1.05 EPS. NVIDIA’s revenue was up 105.9% on a year-over-year basis. As a group, equities research analysts forecast that NVIDIA Corporation will post 9.12 earnings per share for the current fiscal year.

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

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

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

Positive Sentiment: Analyst upgrade and growth outlook: Piper Sandler upgraded NVIDIA to “strong buy,” while CEO Jensen Huang reiterated expectations for roughly 70% revenue growth next year and a potential $3 trillion–$4 trillion AI market by 2030. Erste Group also raised its FY2027 EPS estimate to $9.23 from $9.00. NVIDIA analyst upgrade Jensen Huang growth outlook Positive Sentiment: Evidence of sustained chip demand: TSMC reported August revenue growth of 53.3% year over year, signaling continued orders for AI accelerators and advanced packaging. The data supports NVIDIA’s view that hyperscaler and enterprise AI infrastructure spending remains strong. TSMC August revenue Positive Sentiment: Infrastructure expansion and partnerships: NVIDIA is working with Australian cloud and data-center companies on up to 2 gigawatts of AI-factory capacity by 2027. Its collaborations with Palantir on sovereign AI supply chains and d-Matrix on chip-linking technology further expand the CUDA-based ecosystem and potential future demand. NVIDIA Australia AI infrastructure d-Matrix partnership Neutral Sentiment: Valuation remains the central debate: Investors are weighing NVIDIA’s exceptional growth, profitability and AI leadership against a very high market capitalization and the possibility that optimistic forecasts are already reflected in the stock. Analysts continue to compare NVIDIA with Broadcom and AMD as custom silicon competition develops. NVIDIA valuation debate Negative Sentiment: Regulatory and sentiment risks: The Justice Department is reportedly examining NVIDIA’s licensing arrangement with Groq for possible antitrust concerns. In addition, insiders have reported substantial selling with no purchases in the past six months, while higher oil prices and Treasury yields have pressured high-growth technology shares. DOJ Groq investigation NVIDIA insider sales About NVIDIA (Free Report)

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processors and related software. Its products are used for artificial intelligence, machine learning, high-performance computing, computer graphics, data-center applications and other workloads that benefit from parallel processing.

The company’s offerings include GeForce graphics processing units (GPUs) and software for gaming and personal computers; data-center GPUs, systems and networking products; and professional visualization solutions for design, engineering, media and scientific applications.

See Also Five stocks we like better than NVIDIA Why Bitcoin ETFs May Be Worth Another Look as Inflows Rebound 3 Small-Cap Biotechs With Binary Catalysts on the Calendar Planet Labs Has Fallen Back to Earth, But Wall Street Still Sees a Rebound As Homeowners’ Premiums Surge, This Insurer Is Posting Record Profits

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Alecta Tjanstepension Omsesidigt grew its stake in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 1.4% in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 9,841,100 shares of the computer hardware maker’s stock after purchasing an additional 133,200 shares during the quarter. NVIDIA makes up approximately 8.3% of Alecta Tjanstepension Omsesidigt’s investment portfolio, making the stock its largest position. Alecta Tjanstepension Omsesidigt’s holdings in NVIDIA were worth $1,965,858,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds have also recently made changes to their positions in the stock. Lifetime Wealth Management P.C. purchased a new position in NVIDIA during the 4th quarter worth $26,000. Longview Financial Advisors Inc. purchased a new stake in shares of NVIDIA in the 1st quarter worth $27,000. Longfellow Investment Management Co. LLC lifted its holdings in shares of NVIDIA by 47.9% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock worth $33,000 after buying an additional 67 shares during the period. Phillip James Consulting Co. bought a new position in shares of NVIDIA during the 1st quarter worth $40,000. Finally, Inspire Investing LLC bought a new position in shares of NVIDIA during the 4th quarter worth $44,000. 65.27% of the stock is currently owned by institutional investors.

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

Positive Sentiment: Analyst upgrade and growth outlook: Piper Sandler upgraded NVIDIA to “strong buy,” while CEO Jensen Huang reiterated expectations for roughly 70% revenue growth next year and a potential $3 trillion–$4 trillion AI market by 2030. Erste Group also raised its FY2027 EPS estimate to $9.23 from $9.00. NVIDIA analyst upgrade Jensen Huang growth outlook Positive Sentiment: Evidence of sustained chip demand: TSMC reported August revenue growth of 53.3% year over year, signaling continued orders for AI accelerators and advanced packaging. The data supports NVIDIA’s view that hyperscaler and enterprise AI infrastructure spending remains strong. TSMC August revenue Positive Sentiment: Infrastructure expansion and partnerships: NVIDIA is working with Australian cloud and data-center companies on up to 2 gigawatts of AI-factory capacity by 2027. Its collaborations with Palantir on sovereign AI supply chains and d-Matrix on chip-linking technology further expand the CUDA-based ecosystem and potential future demand. NVIDIA Australia AI infrastructure d-Matrix partnership Neutral Sentiment: Valuation remains the central debate: Investors are weighing NVIDIA’s exceptional growth, profitability and AI leadership against a very high market capitalization and the possibility that optimistic forecasts are already reflected in the stock. Analysts continue to compare NVIDIA with Broadcom and AMD as custom silicon competition develops. NVIDIA valuation debate Negative Sentiment: Regulatory and sentiment risks: The Justice Department is reportedly examining NVIDIA’s licensing arrangement with Groq for possible antitrust concerns. In addition, insiders have reported substantial selling with no purchases in the past six months, while higher oil prices and Treasury yields have pressured high-growth technology shares. DOJ Groq investigation NVIDIA insider sales NVIDIA Stock Performance Shares of NVIDIA stock opened at $218.29 on Monday. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. The firm has a fifty day moving average price of $213.29 and a 200 day moving average price of $203.41. NVIDIA Corporation has a 1 year low of $164.27 and a 1 year high of $236.54. The stock has a market cap of $5.26 trillion, a PE ratio of 27.60, a price-to-earnings-growth ratio of 1.71 and a beta of 2.22. NVIDIA (NASDAQ:NVDA – Get Free Report) last announced its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, beating the consensus estimate of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%.The firm had revenue of $96.22 billion during the quarter, compared to analyst estimates of $92.27 billion. During the same quarter in the previous year, the business earned $1.05 EPS. NVIDIA’s revenue for the quarter was up 105.9% compared to the same quarter last year. Equities research analysts predict that NVIDIA Corporation will post 9.12 earnings per share for the current year.

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

NVIDIA announced that its Board of Directors has authorized a stock buyback 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 shares through open market purchases. Shares buyback programs are typically an indication that the company’s board of directors believes its shares are undervalued.

Wall Street Analyst Weigh In Several brokerages have recently weighed in on NVDA. Benchmark reaffirmed a “buy” rating and issued a $335.00 price target on shares of NVIDIA in a research report on Thursday, August 27th. New Street Research cut their price objective on shares of NVIDIA from $343.00 to $340.00 in a report on Thursday, May 21st. KeyCorp reissued an “overweight” rating and issued a $330.00 price objective on shares of NVIDIA in a research note on Monday, August 24th. Zacks Research lowered NVIDIA from a “strong-buy” rating to a “hold” rating in a report on Friday, August 21st. Finally, Piper Sandler initiated coverage on NVIDIA in a research report on Wednesday. They set an “overweight” rating and a $300.00 target price on the stock. Three analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat, NVIDIA currently has an average rating of “Buy” and a consensus price target of $324.34.

Get Our Latest Stock Report on NVDA

Insider Activity In other news, Director Mark Stevens sold 622,239 shares of NVIDIA stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the sale, the director owned 2,336,531 shares of the company’s stock, valued at approximately $541,187,310.22. The trade was a 21.03% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Timothy Teter sold 30,000 shares of NVIDIA stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $217.88, for a total transaction of $6,536,400.00. Following the sale, the executive vice president owned 2,687,660 shares of the company’s stock, valued at approximately $585,587,360.80. This represents a 1.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 2,585,740 shares of company stock valued at $571,015,527. 3.94% of the stock is owned by company insiders.

NVIDIA Company Profile (Free Report)

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processors and related software. Its products are used for artificial intelligence, machine learning, high-performance computing, computer graphics, data-center applications and other workloads that benefit from parallel processing.

The company’s offerings include GeForce graphics processing units (GPUs) and software for gaming and personal computers; data-center GPUs, systems and networking products; and professional visualization solutions for design, engineering, media and scientific applications.

See Also Five stocks we like better than NVIDIA Why Bitcoin ETFs May Be Worth Another Look as Inflows Rebound 3 Small-Cap Biotechs With Binary Catalysts on the Calendar Planet Labs Has Fallen Back to Earth, But Wall Street Still Sees a Rebound As Homeowners’ Premiums Surge, This Insurer Is Posting Record Profits Want to see what other hedge funds are holding NVDA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVIDIA Corporation (NASDAQ:NVDA – Free Report).

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Sun Group Wealth Partners raised its position in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 5.3% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 47,298 shares of the computer hardware maker’s stock after purchasing an additional 2,387 shares during the period. NVIDIA makes up approximately 6.5% of Sun Group Wealth Partners’ investment portfolio, making the stock its 2nd biggest position. Sun Group Wealth Partners’ holdings in NVIDIA were worth $9,464,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in the business. Boyd Wealth Management LLC lifted its stake in NVIDIA by 273.4% in the second quarter. Boyd Wealth Management LLC now owns 9,145 shares of the computer hardware maker’s stock valued at $1,830,000 after buying an additional 6,696 shares during the period. Diversified Enterprises LLC grew its position in shares of NVIDIA by 44.2% during the 4th quarter. Diversified Enterprises LLC now owns 127,604 shares of the computer hardware maker’s stock worth $23,798,000 after buying an additional 39,129 shares during the period. Altshuler Shaham Ltd increased its stake in shares of NVIDIA by 6,451.9% in the 1st quarter. Altshuler Shaham Ltd now owns 637,236 shares of the computer hardware maker’s stock valued at $111,134,000 after acquiring an additional 627,510 shares in the last quarter. ASR Vermogensbeheer N.V. increased its stake in shares of NVIDIA by 1.8% in the 4th quarter. ASR Vermogensbeheer N.V. now owns 3,169,377 shares of the computer hardware maker’s stock valued at $591,086,000 after acquiring an additional 54,877 shares in the last quarter. Finally, Storen Legacy Partners LLC bought a new stake in shares of NVIDIA in the 4th quarter valued at $1,350,000. 65.27% of the stock is currently owned by institutional investors.

NVIDIA Stock Performance NVDA opened at $218.29 on Monday. NVIDIA Corporation has a 1-year low of $164.27 and a 1-year high of $236.54. The company has a market cap of $5.26 trillion, a price-to-earnings ratio of 27.60, a PEG ratio of 1.71 and a beta of 2.22. The company’s fifty day moving average price is $213.29 and its two-hundred day moving average price is $203.41. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14.

NVIDIA (NASDAQ:NVDA – Get Free Report) last issued its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.09 by $0.13. The firm had revenue of $96.22 billion during the quarter, compared to analysts’ expectations of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The business’s revenue was up 105.9% on a year-over-year basis. During the same period last year, the company earned $1.05 earnings per share. On average, analysts expect that NVIDIA Corporation will post 9.12 EPS for the current fiscal year. NVIDIA Dividend Announcement The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Thursday, September 10th will be given a $0.25 dividend. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $1.00 annualized dividend and a yield of 0.5%. NVIDIA’s dividend payout ratio (DPR) is presently 12.64%.

NVIDIA declared that its board has initiated a share buyback program on Wednesday, May 20th that permits the company to buyback $80.00 billion in outstanding shares. This buyback authorization permits the computer hardware maker to repurchase 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.

Wall Street Analysts Forecast Growth NVDA has been the topic of several research analyst reports. Craig Hallum increased their target price on shares of NVIDIA from $245.00 to $275.00 and gave the stock a “buy” rating in a research note on Thursday, May 21st. Barclays reaffirmed an “overweight” rating on shares of NVIDIA in a research note on Thursday, May 21st. Mizuho set a $315.00 price objective on shares of NVIDIA and gave the company an “outperform” rating in a report on Thursday, August 27th. Tigress Financial reissued a “strong-buy” rating and set a $425.00 price objective (up from $360.00) on shares of NVIDIA in a research report on Wednesday, May 27th. Finally, Wolfe Research restated an “outperform” rating and issued a $275.00 target price on shares of NVIDIA in a research note on Thursday, May 21st. Three investment analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and two have issued a Hold rating to the stock. Based on data from MarketBeat.com, NVIDIA currently has a consensus rating of “Buy” and an average price target of $324.34.

Get Our Latest Stock Report on NVIDIA

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

Positive Sentiment: Analyst upgrade and growth outlook: Piper Sandler upgraded NVIDIA to “strong buy,” while CEO Jensen Huang reiterated expectations for roughly 70% revenue growth next year and a potential $3 trillion–$4 trillion AI market by 2030. Erste Group also raised its FY2027 EPS estimate to $9.23 from $9.00. NVIDIA analyst upgrade Jensen Huang growth outlook Positive Sentiment: Evidence of sustained chip demand: TSMC reported August revenue growth of 53.3% year over year, signaling continued orders for AI accelerators and advanced packaging. The data supports NVIDIA’s view that hyperscaler and enterprise AI infrastructure spending remains strong. TSMC August revenue Positive Sentiment: Infrastructure expansion and partnerships: NVIDIA is working with Australian cloud and data-center companies on up to 2 gigawatts of AI-factory capacity by 2027. Its collaborations with Palantir on sovereign AI supply chains and d-Matrix on chip-linking technology further expand the CUDA-based ecosystem and potential future demand. NVIDIA Australia AI infrastructure d-Matrix partnership Neutral Sentiment: Valuation remains the central debate: Investors are weighing NVIDIA’s exceptional growth, profitability and AI leadership against a very high market capitalization and the possibility that optimistic forecasts are already reflected in the stock. Analysts continue to compare NVIDIA with Broadcom and AMD as custom silicon competition develops. NVIDIA valuation debate Negative Sentiment: Regulatory and sentiment risks: The Justice Department is reportedly examining NVIDIA’s licensing arrangement with Groq for possible antitrust concerns. In addition, insiders have reported substantial selling with no purchases in the past six months, while higher oil prices and Treasury yields have pressured high-growth technology shares. DOJ Groq investigation NVIDIA insider sales Insider Transactions at NVIDIA In other NVIDIA news, EVP Timothy Teter sold 30,000 shares of the business’s stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $217.88, for a total transaction of $6,536,400.00. Following the completion of the sale, the executive vice president directly owned 2,687,660 shares of the company’s stock, valued at approximately $585,587,360.80. The trade was a 1.10% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Stevens sold 885,000 shares of the stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $210.17, for a total value of $186,000,450.00. Following the completion of the sale, the director directly owned 5,207,271 shares of the company’s stock, valued at approximately $1,094,412,146.07. This trade represents a 14.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 2,585,740 shares of company stock valued at $571,015,527 in the last quarter. Company insiders own 3.94% of the company’s stock.

About NVIDIA (Free Report)

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processors and related software. Its products are used for artificial intelligence, machine learning, high-performance computing, computer graphics, data-center applications and other workloads that benefit from parallel processing.

The company’s offerings include GeForce graphics processing units (GPUs) and software for gaming and personal computers; data-center GPUs, systems and networking products; and professional visualization solutions for design, engineering, media and scientific applications.

Further Reading Five stocks we like better than NVIDIA Why Bitcoin ETFs May Be Worth Another Look as Inflows Rebound 3 Small-Cap Biotechs With Binary Catalysts on the Calendar Planet Labs Has Fallen Back to Earth, But Wall Street Still Sees a Rebound As Homeowners’ Premiums Surge, This Insurer Is Posting Record Profits Want to see what other hedge funds are holding NVDA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVIDIA Corporation (NASDAQ:NVDA – Free Report).

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Symmetry Partners LLC increased its stake in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 215.8% during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 72,985 shares of the computer hardware maker’s stock after acquiring an additional 49,874 shares during the quarter. NVIDIA makes up about 0.7% of Symmetry Partners LLC’s portfolio, making the stock its 12th largest position. Symmetry Partners LLC’s holdings in NVIDIA were worth $14,603,000 as of its most recent filing with the Securities & Exchange Commission.

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

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

Positive Sentiment: Analyst upgrade and growth outlook: Piper Sandler upgraded NVIDIA to “strong buy,” while CEO Jensen Huang reiterated expectations for roughly 70% revenue growth next year and a potential $3 trillion–$4 trillion AI market by 2030. Erste Group also raised its FY2027 EPS estimate to $9.23 from $9.00. NVIDIA analyst upgrade Jensen Huang growth outlook Positive Sentiment: Evidence of sustained chip demand: TSMC reported August revenue growth of 53.3% year over year, signaling continued orders for AI accelerators and advanced packaging. The data supports NVIDIA’s view that hyperscaler and enterprise AI infrastructure spending remains strong. TSMC August revenue Positive Sentiment: Infrastructure expansion and partnerships: NVIDIA is working with Australian cloud and data-center companies on up to 2 gigawatts of AI-factory capacity by 2027. Its collaborations with Palantir on sovereign AI supply chains and d-Matrix on chip-linking technology further expand the CUDA-based ecosystem and potential future demand. NVIDIA Australia AI infrastructure d-Matrix partnership Neutral Sentiment: Valuation remains the central debate: Investors are weighing NVIDIA’s exceptional growth, profitability and AI leadership against a very high market capitalization and the possibility that optimistic forecasts are already reflected in the stock. Analysts continue to compare NVIDIA with Broadcom and AMD as custom silicon competition develops. NVIDIA valuation debate Negative Sentiment: Regulatory and sentiment risks: The Justice Department is reportedly examining NVIDIA’s licensing arrangement with Groq for possible antitrust concerns. In addition, insiders have reported substantial selling with no purchases in the past six months, while higher oil prices and Treasury yields have pressured high-growth technology shares. DOJ Groq investigation NVIDIA insider sales Insiders Place Their Bets In related news, EVP Timothy S. Teter sold 30,000 shares of the firm’s stock in a transaction dated Monday, August 31st. The shares were sold at an average price of $217.88, for a total transaction of $6,536,400.00. Following the completion of the sale, the executive vice president owned 2,687,660 shares in the company, valued at approximately $585,587,360.80. This trade represents a 1.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 622,239 shares of NVIDIA stock in a transaction dated Friday, September 4th. The stock was sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the completion of the sale, the director directly owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. This represents a 21.03% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 2,585,740 shares of company stock worth $571,015,527 over the last quarter. Company insiders own 3.94% of the company’s stock. Analysts Set New Price Targets NVDA has been the subject of several recent research reports. Morgan Stanley set a $300.00 price objective on NVIDIA and gave the company an “overweight” rating in a report on Thursday, August 27th. Seaport Research Partners lifted their price target on shares of NVIDIA from $140.00 to $180.00 and gave the company a “sell” rating in a research report on Thursday, May 21st. Zacks Research lowered shares of NVIDIA from a “strong-buy” rating to a “hold” rating in a research note on Friday, August 21st. Cantor Fitzgerald restated an “overweight” rating and set a $350.00 price target on shares of NVIDIA in a research note on Monday, August 24th. Finally, Benchmark restated a “buy” rating and set a $335.00 price objective on shares of NVIDIA in a report on Thursday, August 27th. Three analysts have rated the stock with a Strong Buy rating, fifty have issued a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Buy” and a consensus price target of $324.34.

Check Out Our Latest Stock Report on NVDA

NVIDIA Stock Performance NVDA stock opened at $218.29 on Monday. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14. The firm has a market cap of $5.26 trillion, a PE ratio of 27.60, a P/E/G ratio of 1.71 and a beta of 2.22. The business has a 50 day moving average of $213.29 and a 200-day moving average of $203.41. NVIDIA Corporation has a 12-month low of $164.27 and a 12-month high of $236.54.

NVIDIA (NASDAQ:NVDA – Get Free Report) last issued its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, topping analysts’ consensus estimates of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%.The business had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. During the same period last year, the company posted $1.05 earnings per share. NVIDIA’s quarterly revenue was up 105.9% compared to the same quarter last year. As a group, sell-side analysts expect that NVIDIA Corporation will post 9.12 earnings per share for the current year.

NVIDIA declared that its board has approved a stock repurchase plan on Wednesday, May 20th that permits the company to repurchase $80.00 billion in outstanding 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 typically an indication that the company’s management believes its shares are undervalued.

NVIDIA Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th will be given a dividend of $0.25 per share. The ex-dividend date of this dividend is Thursday, September 10th. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. NVIDIA’s dividend payout ratio (DPR) is currently 12.64%.

About NVIDIA (Free Report)

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processors and related software. Its products are used for artificial intelligence, machine learning, high-performance computing, computer graphics, data-center applications and other workloads that benefit from parallel processing.

The company’s offerings include GeForce graphics processing units (GPUs) and software for gaming and personal computers; data-center GPUs, systems and networking products; and professional visualization solutions for design, engineering, media and scientific applications.

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News Summary:

The NVIDIA CUDA-Q platform now includes the CUDA-Q Logical orchestration layer, giving the quantum industry an open, programmable way to design and test fault-tolerant quantum computing applications in areas such as drug discovery, financial modeling and materials development.Fermilab used CUDA-Q Logical to accelerate fault-tolerant architecture development from five months to three weeks — a 7x speedup.QUOPS is a benchmark for the future of quantum computing, measuring the readiness of fault-tolerant quantum hardware for practical applications. Developed by Sandia National Laboratories, QUOPS is now available in NVIDIA CUDA-Q.
TORONTO, Sept. 14, 2026 (GLOBE NEWSWIRE) -- NVIDIA today announced an expansion of the NVIDIA CUDA-Q™ open source platform with CUDA-Q Logical, an orchestration layer that provides a programmable, verifiable approach to developing useful applications for fault-tolerant quantum computers.

Fault-tolerant quantum processors with logical qubits are essential for useful quantum computing, allowing systems to overcome the errors inherent in physical qubits so they can execute the larger computations needed for practical applications such as drug discovery, financial modeling and materials development.

However, developing applications for such systems is a tedious, time-consuming codesign challenge: A change to an algorithm, error-correction code, hardware architecture or other QPU component can significantly change the resources needed to run any given application.

With CUDA-Q Logical, researchers can now design and orchestrate the many components required for fault-tolerant quantum computing applications, easily switching between options to identify optimal system configurations for performance with logical qubits.

“Quantum computing is maturing into an era of logical qubits, and researchers need an open, customizable platform capable of representing all aspects of a fault-tolerant system,” said Timothy Costa, vice president and general manager of quantum at NVIDIA. “The addition of CUDA-Q Logical provides power and flexibility to explore fully integrated, co-optimized systems regardless of qubit type and architecture — drastically shortening the timeline to useful quantum-GPU supercomputing.”

CUDA-Q Logical is already being used by QPU makers and labs including Fermi National Accelerator Laboratory, Infleqtion, IQM Quantum Computers, QCDesign Quantum Motion and Sandia National Laboratories.

Using CUDA-Q Logical, Iceberg Quantum modeled its fault-tolerant architecture for Diraq’s qubits, showing how 1,000 logical qubits can be created with just 150,000 physical qubits, roughly 10x fewer than Diraq’s previous estimates. CUDA-Q Logical gave an unprecedented way to rapidly assess potential implementations of Iceberg’s architecture, helping dramatically reduce the hardware needed for useful, fault-tolerant quantum computing.

Fermilab Uses CUDA-Q Logical to Explore Fault-Tolerant Applications
In early work, Fermilab researchers used CUDA-Q Logical to validate prior results and evaluate physical qubits, runtimes and other resource requirements across different error-correction approaches and quantum hardware.

Fermilab transformed complicated fault-tolerant system designs into a repeatable and verifiable computational workflow, accelerating fault-tolerant algorithm development from five months to three weeks, a 7x speedup.

“Fault-tolerant quantum computing is the path to unlocking new scientific discovery, but getting there will require researchers to codesign algorithm, error correction, architectures and hardware together,” said Anna Grassellino, chief technology officer at Fermilab and director of the Superconducting Quantum Materials and Systems Center. “Using CUDA-Q Logical, our team explored combinations of these resources in just three weeks, compared with what would have typically taken about five months of building specialized infrastructure.”

Sandia Creates Benchmark for Future of Quantum Computing
QUOPS is a new, independent cross-platform benchmark developed by Sandia National Laboratories that measures the progress quantum computing systems are making toward utility-scale applications.

With Sandia’s QUOPS, the industry now has access to a hardware-agnostic, open method to benchmark progress toward shared goals for fault-tolerant quantum computers. Historically, progress in quantum computing has been measured primarily through advances in physical qubits — increasing qubit counts, improving fidelity and extending coherence.

“At Sandia, we can’t wait to see fault-tolerant quantum computers helping to solve problems of national importance for the Department of Energy and the United States,” said Timothy Proctor, co-director of Sandia National Laboratories’ Quantum Performance Laboratory. “Our mission right now is to bring that about sooner, by accelerating our industry partners’ progress. To do that, we, and other quantum computing stakeholders, have to be able to track and forecast the growth of quantum computer abilities. We created QUOPS to do exactly that, and we’re excited to see it used by quantum computing vendors and customers.”

Sandia shared early results in a preprint posted ahead of IEEE Quantum Week, reporting initial QUOPS benchmarks for QPUs from Google, IBM and Quantinuum. A QUOPS reference implementation is available in NVIDIA CUDA-Q.

Expanding the Quantum-GPU Supercomputing Platform
The ecosystem is also adopting NVIDIA’s larger lineup of quantum computing technologies for turning qubits into useful quantum-GPU supercomputers.

Diraq used NVIDIA Ising, the world’s first family of open models for building and deploying AI for useful quantum computing, to calibrate its silicon-based qubit processor.

Companies are integrating their quantum processors with GPU supercomputing using NVIDIA NVQLink™, the open system architecture for tightly coupling quantum processors with GPU supercomputers. With NVQLink:

Anyon Computing developed a new quantum control system.Quandela developed a QPU-GPU architecture.Quantum Machines ran a demo of integrating state-of-the-art supercomputing resources with qubits at the Israeli Quantum Computing Center.
The NVIDIA CUDA-Q open development platform continues to be adopted across the quantum computing ecosystem:

BlueQubit launched the Quantum Flywheel grant program for researchers, to give them access to NVIDIA accelerated computing through CUDA-Q.Qedma Quantum Computing and QCentroid each integrated their technology with CUDA-Q to support quantum error correction and mitigation, as well as the deployment of quantum applications. The quantum ecosystem is also working with NVIDIA to develop new and improved quantum applications:

IonQ announced progress on DQAOA-GPT, a quantum generative AI framework, using NVIDIA accelerated computing.MITRE published work on building GPU-accelerated digital twins of quantum sensors.Phasecraft is using NVIDIA cuQuantum to generate the largest-known variational quantum eigensolver emulated molecular database.UCLA and Caltech are advancing the design of control sequences needed to run quantum applications. Availability
CUDA-Q Logical is now available through GitHub. Explore the QUOPS repository.

Learn more by reading these papers on CUDA-Q Logical and QUOPS.

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

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

Certain statements in this press release including, but not limited to, statements as to: expectations with respect to quantum computing; expectations with respect to growth, performance, availability, and benefits of NVIDIA’s products, services and technologies, and related trends and drivers; expectations with respect to NVIDIA’s third party arrangements, including with its collaborators and partners; expectations with respect to technology developments, and related trends and drivers; projected market growth and trends; expectations with respect to AI and related industries; and other statements that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections based on management’s beliefs and assumptions and on information currently available to management and are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: global economic and political conditions; NVIDIA’s reliance on third parties to manufacture, assemble, package and test NVIDIA’s products; the impact of technological development and competition; development of new products and technologies or enhancements to NVIDIA’s existing products and technologies; market acceptance of NVIDIA’s products or NVIDIA’s partners’ products; design, manufacturing or software defects; changes in consumer preferences or demands; changes in industry standards and interfaces; unexpected loss of performance of NVIDIA’s products or technologies when integrated into systems; NVIDIA’s ability to realize the potential benefits of business investments or acquisitions; and changes in applicable laws and regulations, as well as other factors detailed from time to time in the most recent reports NVIDIA files with the Securities and Exchange Commission, or SEC, including, but not limited to, its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Copies of reports filed with the SEC are posted on NVIDIA’s website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.

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

A photo accompanying this announcement is available at:
https://www.globenewswire.com/NewsRoom/AttachmentNg/0f02bc26-1063-45ff-85fe-7d84a32d9392

NVIDIA CUDA-Q The NVIDIA CUDA-Q open source platform now includes CUDA-Q Logical, an orchestration layer that prov...

Nvidia (NASDAQ: NVDA) could trade at an average price of $219.28 by September 30, 2026, according to a forecast generated by the Finbold AI Agent.

The prediction, based on models including DeepSeek Chat, Gemini 3.5 Flash, and GPT-5.7 Luna, suggests a modest 0.49% upside from Nvidia’s current price of $218.22.

NVDA stock price prediction. Source: Finbold The forecast was generated using technical indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD).

The projection comes as Nvidia stock continues to consolidate near record highs following a powerful rally fueled by artificial intelligence demand.

While Wall Street remains broadly bullish on the semiconductor giant, the AI models point to limited short-term movement over the next 17 days.

Among the three models used in the analysis, GPT-5.7 Luna delivered the most optimistic outlook, projecting Nvidia stock at $224.50, representing a gain of 2.88% from current levels.

Gemini 3.5 Flash forecast a price of $223.50, implying upside of 2.42%.

DeepSeek Chat was the most bearish model, predicting Nvidia would decline to $209.85, a drop of 3.83%.

NVDA stock price prediction. Source: Finbold Nvidia stock fundamentals  The NVDA stock prediction comes shortly after Nvidia reported another quarter of triple-digit revenue growth, underscoring continued demand for AI infrastructure.

For the second quarter of fiscal 2027, the company posted revenue of $96.2 billion, up 106% year-over-year, while non-GAAP earnings per share came in at $2.22, exceeding analyst expectations.

Nvidia’s data center division generated $89 billion in revenue, supported by strong adoption of its Blackwell Ultra platform and rising spending from hyperscale cloud providers.

Management also guided for third-quarter revenue of approximately $108 billion, reinforcing expectations that AI-related demand remains robust despite growing concerns about valuation levels across the technology sector.

Although Nvidia shares have experienced some volatility in recent weeks amid broader caution toward AI-related stocks, analyst sentiment remains overwhelmingly positive.

Consensus Wall Street price targets continue to point to substantial upside from current levels, with many analysts expecting AI infrastructure spending to remain a key growth driver in the years ahead.

Featured image via Shutterstock

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Arm sits underneath nearly every hyperscaler custom CPU program, collecting royalty checks as AI infrastructure spending accelerates, but its 120x forward multiple means a single stumble could trigger violent downside for a stock already swinging between $223 and $420.

Few semiconductor names capture the AI infrastructure story like Arm. The company sits underneath nearly every hyperscaler custom CPU program, and the royalty checks are getting bigger every quarter.

Our 24/7 Wall St. price target says the market has already priced in most of the good news, but there is still moderate upside from here.

Arm (NASDAQ:ARM | ARM Price Prediction) currently trades at $264.79. Our 24/7 Wall St. price target for Arm is $280.16, implying 5.81% upside over the next 12 months. We rate the stock a buy with high conviction, carrying a model confidence of 0.9.

Metric Value Current Price $264.79 24/7 Wall St. Price Target $280.16 Upside 5.81% Recommendation BUY Confidence Level 90% Recent Action: A Wild Ride Back to $265 ARM has been one of the year’s most volatile large caps. Shares are up 142.24% year to date and 71.16% over the trailing year, but the ride included a spike to a 52-week high of $452.70 and a subsequent pullback. The stock gained 5.04% in the past week alone.

Q1 FY2027 delivered revenue of $1.29 billion, up 22% year over year, with non-GAAP EPS of 45 cents and data center royalty revenue that “continues to more than double year-on-year.” CEO Rene Haas told investors that “AI is changing where and how compute happens, and ARM is at the center of it.”

Why Bulls See a Breakout to $420 The bull case is anchored in Arm’s own AGI CPU. Management said customer demand “now exceeds $2 billion” across FY27 and FY28, double the original opportunity.

Meta was named lead co-developer on the multi-generation roadmap, and NVIDIA’s Vera CPU is now in production, delivering “up to 50% higher CPU performance and two times greater energy efficiency than comparable x86 systems.”

Neoverse shipments crossed 1.5 billion cores, with the most recent 500 million shipped in just nine months. Management cited a CPU TAM estimate as high as $220 billion. Our bull-case one-year path targets $420.18, and 64 of 84 covering analysts sit in the bullish camp with a Street-high target near $289.

What Could Go Wrong Valuation is the obvious risk. ARM trades at a forward P/E of 120, a level that leaves no margin for a royalty stumble. Q1 GAAP operating income actually fell 15% as R&D and stock-based comp climbed. Smartphone royalty growth is drifting toward low teens, and the Qualcomm litigation trial is expected in Q4 calendar 2026.

A beta of 3.89 means downside can be violent. Bulls counter that the operating margin compression reflects deliberate investment in the AGI CPU silicon program, which management still expects to reach 50% gross margins within a couple of years. Our bear-case path lands at $223.12.

How Arm Stacks Up Against NVIDIA, Qualcomm, and Synopsys NVIDIA (NASDAQ:NVDA) is the essential comp because it pays Arm royalties on Grace and Vera CPUs. NVIDIA trades at a forward P/E of just 24 with a 66.2% operating margin. That makes Arm’s 120 forward multiple look aggressive on a growth-per-dollar basis.

Qualcomm (NASDAQ:QCOM) is Arm’s largest licensee and current litigation counterparty. Qualcomm trades at a forward P/E of 18 with quarterly revenue growth of -4%. The valuation gap reflects Arm’s royalty-model economics, but a courtroom loss would narrow it fast.

Synopsys (NASDAQ:SNPS) is the cleanest picks-and-shovels comp, sitting in EDA and silicon IP. Synopsys trades at a forward P/E of 23 with quarterly earnings growth of 89.3%. Against this peer group, our 24/7 Wall St. price target looks reasonable: it credits Arm’s premium royalty economics without demanding perfection.

Bull Thesis Intact, With Position-Sizing Caveats The setup here looks constructive for the AGI CPU ramp, consistent with the 24/7 Wall St. price target of $280.16 and a buy rating at 90% confidence. The tipping factor is the doubling of data center royalties and the $2 billion-plus AGI CPU pipeline.

The thesis weakens if royalty growth slips below the mid-teens or if the Qualcomm verdict lands against Arm. Otherwise, Arm remains a core royalty layer on AI compute.

Year 24/7 Wall St. Price Target 2026 $280.16 2027 $277.91 2028 $298.75 2029 $306.10 2030 $325.00 These projections assume Arm continues executing on the AGI CPU roadmap and holds Neoverse share among hyperscalers.

All of that buildout still has to be powered, cooled, and networked by somebody, and we pulled together seven suppliers doing exactly that in a free AI infrastructure report. Significant upside or downside could come from the pace of agentic AI adoption or a material shift in China export policy.

Contact [email protected] for any questions or corrections.

Dvě výrazné tváře AI revoluce – OpenAI a Anthropic – tahají za brzdu a do popředí staví bezpečnost, neboť se obávají, že schopnosti moderních AI modelů rostou tak rychle, že odvětví nemusí dostatečně rozumět všem rizikům, která s sebou tato technologie přináší. Reakce finančních trhů či administrativy amerického prezidenta Donalda Trumpa ale není příliš pozitivní…

Generální ředitel Anthropicu Dario Amodei v rozsáhlém textu o 3 800 slovech zveřejněném během víkendu argumentoval, že odvětví potřebuje větší důraz na bezpečnostní testování a nezávislou kontrolu nových modelů ještě před jejich uvedením do provozu. Jeho stanovisko podpořili také šéf konkurenční OpenAI Sam Altman a Elon Musk, který dlouhodobě patří mezi hlasité zastánce diskuse o rizicích spojených s vysoce pokročilou AI.

Myšlenka opatrnějšího postupu však přichází v době, kdy finanční trhy počítají s dalším masivním růstem investic do umělé inteligence. AI se stala hlavním motorem technologického investičního cyklu a očekávání ohledně budoucích výnosů stojí mimo jiné na přesvědčení, že vývoj nových modelů bude pokračovat vysokým tempem.

Prvotní reakce trhu je proto negativní. Akcie klíčových hráčů v oblasti infrastruktury pro umělou inteligenci – Samsung Electronics a SK Hynix – se v pondělí v Soulu propadly o více než čtyři procenta a akcie společnosti SoftBank Group, jež masivně investovala do OpenAI, klesly dokonce o 13 procent, informuje agentura Bloomberg.

Výprodej je patrný i v Evropě, kde třeba akcie ASML, výrobce litografických strojů pro výrobu čipů, po 10. hodině odepisovaly bezmála pět procent. Výrazně padaly i cenné papíry Nokie (-7,8 %) či Infineonu (-7 %).

A propad se očekává i odpoledne na Wall Street. Zpomalení ve vývoji by mohlo například negativně ovlivnit výrobce čipů, jako jsou Nvidia či AMD, kteří dosud ze zvýšených výdajů na GPU a CPU určeným k trénování a provozu nových generací modelů nejvíce těžili. Dopady by mohly pocítit ale také další velké společnosti jako Amazon či Microsoft, které poskytují cloudové služby pro AI právě Anthropicu a OpenAI.

„Tyto dvě společnosti (OpenAI a Anthropic) a jejich plány mají značný dopad na celý technologický sektor,“ sdělil Bloombergu Mark Mahaney, analytik společnosti Evercore ISI. „Pokud by tyto dvě firmy výrazně omezily výdaje na výzkum a vývoj, nábor zaměstnanců či kapitálové investice, mohlo by to mít zásadní vliv na finanční trhy,“ dodal.

Trump: Amerika musí zůstat před Čínou

„Když mluvíme o ‚zpomalení tempa‘, nemáme na mysli ‚zastavení‘. Pomoc vlády budeme potřebovat v oblasti mezinárodní koordinace. Nejdříve bychom však měli udělat to, co je v našich vlastních silách,“ vysvětlil Altman ve svém příspěvku na sociální síti X.

Komplikaci v tomto záměru ale představuje aktuální politická situace ve Spojených státech. Prezident Donald Trump opakovaně zdůrazňuje, že umělá inteligence představuje klíčový nástroj ekonomického růstu i otázku národní bezpečnosti. Během víkendu pak šéf Bílého domu znovu zdůraznil, že USA musí udržet náskok před Čínou. Podle něj nelze dopustit, aby přílišná regulace oslabila konkurenceschopnost amerických technologických firem.

„Upřímně řečeno, chci, aby to tak zůstalo, protože kdo ovládne umělou inteligenci, ten zvítězí,“ řekl Trump novinářům a dodal: „Můžeme sice zavést určitá pravidla či omezení, ale myslím, že se touto otázkou zabývá řada velmi negativních sil, které ji vnášejí do veřejné debaty, ačkoliv by neměly.“

Obavy z existenčních rizik sílí

Debata o bezpečnosti AI minulý týden zesílila také kvůli odchodu výzkumníka Jacoba Coxona z Anthropicu. Ten veřejně varoval, že technologické firmy v rámci závodu o superinteligenci podceňují možná rizika a "hazardují s našimi životy".

Jeho stanovisko podpořila skupina dalších odborníků zabývajících se umělou inteligencí, kteří vyzvali k větší opatrnosti. Podle nich se schopnosti modelů vyvíjejí rychleji, než jakým tempem vznikají kontrolní mechanismy.

Otázkou se začínají zabývat také američtí zákonodárci. V Kongresu zaznívají návrhy od přísnější regulace až po krajní varianty, které by některé formy vysoce pokročilé AI přímo zakazovaly. Vzhledem k politické polarizaci ve Washingtonu však analytici neočekávají rychlé přijetí zásadní legislativy.

Amodei navrhuje, aby nejpokročilejší modely podléhaly nezávislému hodnocení ještě před uvedením na trh. Externí hodnotitelé by měli získat přístup srovnatelný se zaměstnanci firmy a mohli by ověřovat bezpečnost i potenciální rizika nových systémů.

Podobný přístup podporuje také OpenAI. Altman uvedl, že myšlenka externího přezkumu dává smysl a že by mohla být zavedena i v jeho společnosti. Musk označil vzájemné hodnocení mezi předními AI laboratořemi za krok, který stojí za zvážení.

Anthropic i OpenAI plánují vstup na burzu, avšak Altman v sobotním rozhovoru pro časopis Fortune uvedl, že nové obavy o bezpečnost jsou důvodem pro odklad letošního IPO.

Anthropic zatím nesdělil, zda budou mít Amodeiovy obavy na firemní IPO vliv. Společnost investory jen nově informovala, že v tomto čtvrtletí dosáhne zisku, napsal Financial Times.

Kdo však nejeví žádné známky zpomalení, je Čína. Řada nově uvedených AI modelů od tamních firem letos snížila náskok USA a společnosti jako DeepSeek či Z.AI získávají nový kapitál, aby urychlily svůj rozvoj, upozorňuje Bloomberg.

Podle analytiků by každopádně Anthropic a OpenAI – jakožto lídři na trhu – mohli těžit z případného zavedení plošných opatření zpomalujících vývoj. „Čím více regulace v této fázi vznikne, tím obtížnější bude pro kohokoliv jim konkurovat,“ řekl Bloombergu Gil Luria z D.A. Davidson. Zároveň však očekává konkrétní kroky, které by Amodeiho slova podložily. „Pokud Anthropic odloží vstup na burzu nebo oznámí, že po dobu následujících šesti měsíců nebude provádět předtrénink modelů, pak to možná začnu brát vážněji,“ dodal.

Most investors may not realize it, but venture capital funds, private equity firms, and investment banks are not the only institutions that buy stocks or support start-ups. Corporations can also buy stocks on the open market, and, from time to time, they make strategic investments in private companies.

At the close of Nvidia's (NVDA -0.03%) fiscal second quarter, which ended July 26, the company boasted an investment portfolio totaling roughly $99 billion. Nvidia's investment book looks less like one of a stock-picker and more like a detailed map of the artificial intelligence (AI) supply chain.

The question is not whether Jensen Huang can pick winners. Spoiler alert: He can. The better questions to ask are which pockets of the AI ecosystem is Nvidia funding, and which of those opportunities are available to retail investors?

Let's break down Nvidia's investment strategy and assess what stocks and businesses the company owns that may be a fit for your portfolio, too.

Image source: Getty Images.

Where Nvidia is investing across the AI stack The $99 billion in capital is spread across three buckets: publicly held stocks worth $47.7 billion, non-marketable securities worth $47.9 billion, and equity-method investments totaling $3.3 billion.

Public equities are split between listed common stock and a smaller layer of convertible preferred stock in public companies. According to Nvidia's 13F filing, the biggest names in this category are Intel, Space Exploration Technologies, and CoreWeave (CRWV -0.15%).

Nvidia invested $5 billion in Intel last September, while its SpaceX stock actually came from a check written for xAI after the two companies merged and then converted into a public holding. Meanwhile, Nvidia has invested in CoreWeave though multiple tranches over the last year.

During the second quarter earnings call, Nvidia CFO Colette Kress said the company has "invested nearly $50 billion in the frontier AI labs." The three names that matter most are OpenAI at $30 billion, Anthropic at up to $10 billion, and Safe Superintelligence at $5 billion.

The last bucket of investments revolves around stakes in infrastructure financiers as opposed to start-ups, frontier labs, and listed stocks. The one public name attached to this bucket is SB Energy, the SoftBank vehicle behind OpenAI's Ohio campus.

Of note, Nvidia's acquisition of Hugging Face for $12.9 billion is not included in this particular set of investments as the deal was announced after the quarter closed. Nvidia's capital is not sprinkled randomly; rather, it clusters in four core places.

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First is the frontier labs. These companies are burning cash on compute faster than they can raise alternative financing like debt. So in this sense, Nvidia is becoming both a components supplier and a banker.

Second is the neocloud layer. CoreWeave and Nebius both build racks on Nvidia hardware and subsequently rent the capacity to developers who cannot get enough supply from the traditional hyperscalers -- Amazon Web Services, Microsoft Azure, and Google Cloud Platform.

Third is the physical plumbing layer of the AI infrastructure stack. This is where photonics and optics sit, including Nvidia partners such as Coherent (COHR +4.16%), Lumentum, Marvell Technology (MRVL +4.03%), and Nokia.

Of note, Coherent shows up explicitly on Nvidia's 13F because the company's $2 billion investment went directly into common stock. Lumentum and Marvell do not follow the same structure. Each of these companies took $2 billion of convertible preferred, which is still public-company paper but is not listed common, so a 13F will not break it out until the preferred converts.

The fourth layer is a thin slice of applications and adjacent bets across biotech, robotics, and mobility through Nvidia's venture arm, NVentures. For now, these are moonshots, not the core of Nvidia's AI stack.

What Nvidia portfolio companies can retail investors buy? Unfortunately, retail investors cannot directly buy OpenAI or the rest of Nvidia's private book. What they can buy are the public names Nvidia already owns: Intel, SpaceX, CoreWeave, Coherent, Nokia, Nebius, Lumentum, and Marvell.

In my eyes, the best of that bunch are CoreWeave, Coherent, and Marvell. CoreWeave is a direct proxy for the buildout of AI factories. The company owns GPUs and rents capacity to both hyperscalers and smaller developers, making it a direct beneficiary of the ongoing capital expenditure (capex) cycle. Coherent specializes in the optics bottleneck where dense chip clusters sit. Meanwhile, Marvell is the networking and silicon-photonics name Nvidia collaborated with to help integrate custom silicon into its fabric.

While buying Intel stock is tempting, shares have rallied hard since Nvidia's initial investment nearly a year ago. Meanwhile, SpaceX is still trying to prove its launch, satellite, and a broader AI ambitions can scale enough to justify its trillion-dollar valuation. Lastly, Nokia is more niche -- specializing in an AI-RAN for edge devices as opposed to core infrastructure across multiple platforms.

Ultimately, Coherent, CoreWeave, and Marvell line up nicely with the themes of rented compute, optical interconnects, and scale-up networking. These are established, usable applications within Nvidia's investment book that should fuel demand for more chips throughout the AI infrastructure era.

True North Advisors LLC grew its holdings in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 4.7% in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 138,090 shares of the computer hardware maker’s stock after buying an additional 6,165 shares during the quarter. NVIDIA accounts for 2.6% of True North Advisors LLC’s investment portfolio, making the stock its 12th largest position. True North Advisors LLC’s holdings in NVIDIA were worth $27,630,000 as of its most recent SEC filing.

Other large investors have also made changes to their positions in the company. Norges Bank acquired a new position in NVIDIA during the fourth quarter worth $62,244,133,000. J. Stern & Co. LLP grew its position in shares of NVIDIA by 13,709.1% in the fourth quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker’s stock valued at $23,454,297,000 after purchasing an additional 124,849,603 shares during the period. Cardano Risk Management B.V. grew its position in shares of NVIDIA by 896.4% in the fourth quarter. Cardano Risk Management B.V. now owns 78,123,960 shares of the computer hardware maker’s stock valued at $14,570,119,000 after purchasing an additional 70,283,539 shares during the period. Capital Research Global Investors increased its stake in shares of NVIDIA by 16.1% during the third quarter. Capital Research Global Investors now owns 165,377,852 shares of the computer hardware maker’s stock worth $30,855,564,000 after purchasing an additional 22,896,705 shares in the last quarter. Finally, Laurel Wealth Advisors LLC increased its stake in shares of NVIDIA by 15,496.1% during the second quarter. Laurel Wealth Advisors LLC now owns 21,865,525 shares of the computer hardware maker’s stock worth $3,454,534,000 after purchasing an additional 21,725,326 shares in the last quarter. 65.27% of the stock is owned by institutional investors and hedge funds.

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

Positive Sentiment: Analyst upgrade and growth outlook: Piper Sandler upgraded NVIDIA to “strong buy,” while CEO Jensen Huang reiterated expectations for roughly 70% revenue growth next year and a potential $3 trillion–$4 trillion AI market by 2030. Erste Group also raised its FY2027 EPS estimate to $9.23 from $9.00. NVIDIA analyst upgrade Jensen Huang growth outlook Positive Sentiment: Evidence of sustained chip demand: TSMC reported August revenue growth of 53.3% year over year, signaling continued orders for AI accelerators and advanced packaging. The data supports NVIDIA’s view that hyperscaler and enterprise AI infrastructure spending remains strong. TSMC August revenue Positive Sentiment: Infrastructure expansion and partnerships: NVIDIA is working with Australian cloud and data-center companies on up to 2 gigawatts of AI-factory capacity by 2027. Its collaborations with Palantir on sovereign AI supply chains and d-Matrix on chip-linking technology further expand the CUDA-based ecosystem and potential future demand. NVIDIA Australia AI infrastructure d-Matrix partnership Neutral Sentiment: Valuation remains the central debate: Investors are weighing NVIDIA’s exceptional growth, profitability and AI leadership against a very high market capitalization and the possibility that optimistic forecasts are already reflected in the stock. Analysts continue to compare NVIDIA with Broadcom and AMD as custom silicon competition develops. NVIDIA valuation debate Negative Sentiment: Regulatory and sentiment risks: The Justice Department is reportedly examining NVIDIA’s licensing arrangement with Groq for possible antitrust concerns. In addition, insiders have reported substantial selling with no purchases in the past six months, while higher oil prices and Treasury yields have pressured high-growth technology shares. DOJ Groq investigation NVIDIA insider sales Wall Street Analyst Weigh In A number of research analysts recently weighed in on NVDA shares. Itau BBA Securities decreased their price target on shares of NVIDIA from $256.00 to $218.00 in a research note on Wednesday, June 24th. JPMorgan Chase & Co. boosted their price objective on NVIDIA from $280.00 to $320.00 and gave the stock an “overweight” rating in a research note on Thursday, August 27th. Mizuho set a $315.00 target price on NVIDIA and gave the company an “outperform” rating in a report on Thursday, August 27th. Truist Financial raised their target price on NVIDIA from $307.00 to $346.00 and gave the company a “buy” rating in a research report on Thursday, August 27th. Finally, China Renaissance lifted their price target on NVIDIA from $319.00 to $330.00 and gave the stock a “buy” rating in a research note on Monday, August 31st. Three investment analysts have rated the stock with a Strong Buy rating, fifty have given a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Buy” and a consensus price target of $324.34. Get Our Latest Stock Report on NVIDIA

NVIDIA Trading Down 0.0% NVDA opened at $218.29 on Friday. The firm has a market capitalization of $5.26 trillion, a price-to-earnings ratio of 27.60, a price-to-earnings-growth ratio of 1.71 and a beta of 2.22. The company’s 50 day simple moving average is $213.29 and its two-hundred day simple moving average is $203.33. NVIDIA Corporation has a 1-year low of $164.27 and a 1-year high of $236.54. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85.

NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%.The business had revenue of $96.22 billion during the quarter, compared to analyst estimates of $92.27 billion. During the same period in the prior year, the business earned $1.05 earnings per share. The business’s revenue was up 105.9% compared to the same quarter last year. Analysts expect that NVIDIA Corporation will post 9.12 EPS for the current fiscal year.

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

NVIDIA announced that its board has authorized a stock repurchase 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 reacquire up to 1.5% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s board of directors believes its stock is undervalued.

Insider Buying and Selling at NVIDIA In other NVIDIA news, EVP Timothy Teter sold 30,000 shares of the firm’s stock in a transaction on Monday, August 31st. The stock was sold at an average price of $217.88, for a total value of $6,536,400.00. Following the completion of the sale, the executive vice president directly owned 2,687,660 shares of the company’s stock, valued at $585,587,360.80. This trade represents a 1.10% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark Stevens sold 622,239 shares of NVIDIA stock in a transaction on Friday, September 4th. The stock was sold at an average price of $231.62, for a total value of $144,122,997.18. Following the transaction, the director owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. This represents a 21.03% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 2,585,740 shares of company stock valued at $571,015,527. 3.94% of the stock is owned by company insiders.

NVIDIA Profile (Free Report)

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processors and related software. Its products are used for artificial intelligence, machine learning, high-performance computing, computer graphics, data-center applications and other workloads that benefit from parallel processing.

The company’s offerings include GeForce graphics processing units (GPUs) and software for gaming and personal computers; data-center GPUs, systems and networking products; and professional visualization solutions for design, engineering, media and scientific applications.

Further Reading Five stocks we like better than NVIDIA Rocket Lab Tackles a Supply Chain Bottleneck as the Stock Hunts for a Bottom. Time to Buy? Optical Cable Corporation Is Starting to Get the Market’s Attention Oil Above $100 Is Creating a New Opportunity Beyond the Major Producers Is Nike’s Index Demotion a Warning or a Buying Opportunity? Want to see what other hedge funds are holding NVDA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVIDIA Corporation (NASDAQ:NVDA – Free Report).

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Meridian Investment Counsel Inc. cut its position in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 29.9% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 9,132 shares of the computer hardware maker’s stock after selling 3,900 shares during the quarter. Meridian Investment Counsel Inc.’s holdings in NVIDIA were worth $1,827,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors have also recently bought and sold shares of NVDA. Defender Capital LLC. boosted its stake in NVIDIA by 0.7% during the second quarter. Defender Capital LLC. now owns 7,534 shares of the computer hardware maker’s stock valued at $1,507,000 after buying an additional 50 shares during the period. Kooman & Associates increased its stake in NVIDIA by 0.6% in the 2nd quarter. Kooman & Associates now owns 8,464 shares of the computer hardware maker’s stock worth $1,694,000 after acquiring an additional 50 shares during the last quarter. Spectrum Financial Alliance Ltd LLC raised its holdings in shares of NVIDIA by 3.8% in the 1st quarter. Spectrum Financial Alliance Ltd LLC now owns 1,395 shares of the computer hardware maker’s stock valued at $243,000 after acquiring an additional 51 shares in the last quarter. PFS Partners LLC raised its holdings in shares of NVIDIA by 1.2% in the 2nd quarter. PFS Partners LLC now owns 4,375 shares of the computer hardware maker’s stock valued at $875,000 after acquiring an additional 51 shares in the last quarter. Finally, LMG Wealth Partners LLC boosted its position in shares of NVIDIA by 0.7% during the 4th quarter. LMG Wealth Partners LLC now owns 7,649 shares of the computer hardware maker’s stock valued at $1,427,000 after acquiring an additional 53 shares during the last quarter. 65.27% of the stock is owned by institutional investors.

NVIDIA Stock Down 0.0% Shares of NVIDIA stock opened at $218.29 on Friday. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. NVIDIA Corporation has a 52-week low of $164.27 and a 52-week high of $236.54. The stock has a market capitalization of $5.26 trillion, a price-to-earnings ratio of 27.60, a P/E/G ratio of 1.71 and a beta of 2.22. The company’s 50 day moving average price is $213.29 and its 200-day moving average price is $203.33.

NVIDIA (NASDAQ:NVDA – Get Free Report) last announced its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.09 by $0.13. The business had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The company’s revenue was up 105.9% on a year-over-year basis. During the same quarter last year, the firm earned $1.05 EPS. Equities research analysts forecast that NVIDIA Corporation will post 9.12 EPS for the current year. NVIDIA announced that its Board of Directors has approved a stock buyback program on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in shares. This repurchase authorization authorizes the computer hardware maker to repurchase up to 1.5% of its stock through open market purchases. Stock repurchase programs are typically a sign that the company’s board of directors believes its stock is undervalued.

NVIDIA Announces Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th will be given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date is Thursday, September 10th. NVIDIA’s dividend payout ratio (DPR) is currently 12.64%.

Insider Activity at NVIDIA In other news, EVP Timothy Teter sold 30,000 shares of the business’s stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $217.88, for a total transaction of $6,536,400.00. Following the transaction, the executive vice president directly owned 2,687,660 shares of the company’s stock, valued at approximately $585,587,360.80. The trade was a 1.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark 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 transaction, 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 SEC filing for this sale provides additional information. Insiders have sold 2,585,740 shares of company stock worth $571,015,527 over the last three months. Insiders own 3.94% of the company’s stock.

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

Positive Sentiment: Analyst upgrade and growth outlook: Piper Sandler upgraded NVIDIA to “strong buy,” while CEO Jensen Huang reiterated expectations for roughly 70% revenue growth next year and a potential $3 trillion–$4 trillion AI market by 2030. Erste Group also raised its FY2027 EPS estimate to $9.23 from $9.00. NVIDIA analyst upgrade Jensen Huang growth outlook Positive Sentiment: Evidence of sustained chip demand: TSMC reported August revenue growth of 53.3% year over year, signaling continued orders for AI accelerators and advanced packaging. The data supports NVIDIA’s view that hyperscaler and enterprise AI infrastructure spending remains strong. TSMC August revenue Positive Sentiment: Infrastructure expansion and partnerships: NVIDIA is working with Australian cloud and data-center companies on up to 2 gigawatts of AI-factory capacity by 2027. Its collaborations with Palantir on sovereign AI supply chains and d-Matrix on chip-linking technology further expand the CUDA-based ecosystem and potential future demand. NVIDIA Australia AI infrastructure d-Matrix partnership Neutral Sentiment: Valuation remains the central debate: Investors are weighing NVIDIA’s exceptional growth, profitability and AI leadership against a very high market capitalization and the possibility that optimistic forecasts are already reflected in the stock. Analysts continue to compare NVIDIA with Broadcom and AMD as custom silicon competition develops. NVIDIA valuation debate Negative Sentiment: Regulatory and sentiment risks: The Justice Department is reportedly examining NVIDIA’s licensing arrangement with Groq for possible antitrust concerns. In addition, insiders have reported substantial selling with no purchases in the past six months, while higher oil prices and Treasury yields have pressured high-growth technology shares. DOJ Groq investigation NVIDIA insider sales Analyst Upgrades and Downgrades Several research analysts have recently commented on the company. Tigress Financial reissued a “strong-buy” rating and set a $425.00 price objective (up from $360.00) on shares of NVIDIA in a report on Wednesday, May 27th. Craig Hallum raised their target price on shares of NVIDIA from $245.00 to $275.00 and gave the company a “buy” rating in a research note on Thursday, May 21st. Oppenheimer set a $315.00 target price on shares of NVIDIA and gave the company an “outperform” rating in a research report on Thursday, August 27th. The Goldman Sachs Group reissued a “buy” rating on shares of NVIDIA in a research note on Thursday. Finally, Rosenblatt Securities reissued a “buy” rating and issued a $390.00 price target on shares of NVIDIA in a report on Friday, September 4th. Three investment analysts have rated the stock with a Strong Buy rating, fifty have assigned a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, NVIDIA has an average rating of “Buy” and an average price target of $324.34.

Get Our Latest Report on NVDA

NVIDIA Company Profile (Free Report)

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processors and related software. Its products are used for artificial intelligence, machine learning, high-performance computing, computer graphics, data-center applications and other workloads that benefit from parallel processing.

The company’s offerings include GeForce graphics processing units (GPUs) and software for gaming and personal computers; data-center GPUs, systems and networking products; and professional visualization solutions for design, engineering, media and scientific applications.

Recommended Stories Five stocks we like better than NVIDIA Rocket Lab Tackles a Supply Chain Bottleneck as the Stock Hunts for a Bottom. Time to Buy? Optical Cable Corporation Is Starting to Get the Market’s Attention Oil Above $100 Is Creating a New Opportunity Beyond the Major Producers Is Nike’s Index Demotion a Warning or a Buying Opportunity? 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.

Confluence Wealth Services Inc. raised its position in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 80.9% in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 214,544 shares of the computer hardware maker’s stock after acquiring an additional 95,953 shares during the period. NVIDIA makes up approximately 1.2% of Confluence Wealth Services Inc.’s holdings, making the stock its 18th biggest holding. Confluence Wealth Services Inc.’s holdings in NVIDIA were worth $42,928,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also bought and sold shares of the company. State Street Corp grew its stake in NVIDIA by 1.2% during the 4th quarter. State Street Corp now owns 991,480,489 shares of the computer hardware maker’s stock worth $184,911,111,000 after buying an additional 11,451,386 shares during the last quarter. Geode Capital Management LLC raised its stake in 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 valued at $109,446,217,000 after buying an additional 3,383,441 shares during the last quarter. Norges Bank purchased a new stake in NVIDIA in the fourth quarter valued at about $62,244,133,000. Bank of America Corp DE boosted its holdings in NVIDIA by 2.1% in the first quarter. Bank of America Corp DE now owns 191,200,989 shares of the computer hardware maker’s stock worth $33,345,453,000 after acquiring an additional 4,019,505 shares in the last quarter. Finally, Legal & General Group Plc boosted its holdings in NVIDIA by 1.5% in the third quarter. Legal & General Group Plc now owns 181,203,035 shares of the computer hardware maker’s stock worth $33,808,862,000 after acquiring an additional 2,609,560 shares in the last quarter. 65.27% of the stock is owned by hedge funds and other institutional investors.

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

Positive Sentiment: Analyst upgrade and growth outlook: Piper Sandler upgraded NVIDIA to “strong buy,” while CEO Jensen Huang reiterated expectations for roughly 70% revenue growth next year and a potential $3 trillion–$4 trillion AI market by 2030. Erste Group also raised its FY2027 EPS estimate to $9.23 from $9.00. NVIDIA analyst upgrade Jensen Huang growth outlook Positive Sentiment: Evidence of sustained chip demand: TSMC reported August revenue growth of 53.3% year over year, signaling continued orders for AI accelerators and advanced packaging. The data supports NVIDIA’s view that hyperscaler and enterprise AI infrastructure spending remains strong. TSMC August revenue Positive Sentiment: Infrastructure expansion and partnerships: NVIDIA is working with Australian cloud and data-center companies on up to 2 gigawatts of AI-factory capacity by 2027. Its collaborations with Palantir on sovereign AI supply chains and d-Matrix on chip-linking technology further expand the CUDA-based ecosystem and potential future demand. NVIDIA Australia AI infrastructure d-Matrix partnership Neutral Sentiment: Valuation remains the central debate: Investors are weighing NVIDIA’s exceptional growth, profitability and AI leadership against a very high market capitalization and the possibility that optimistic forecasts are already reflected in the stock. Analysts continue to compare NVIDIA with Broadcom and AMD as custom silicon competition develops. NVIDIA valuation debate Negative Sentiment: Regulatory and sentiment risks: The Justice Department is reportedly examining NVIDIA’s licensing arrangement with Groq for possible antitrust concerns. In addition, insiders have reported substantial selling with no purchases in the past six months, while higher oil prices and Treasury yields have pressured high-growth technology shares. DOJ Groq investigation NVIDIA insider sales Insider Transactions at NVIDIA In related news, EVP Timothy S. Teter sold 30,000 shares of NVIDIA stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $217.88, for a total transaction of $6,536,400.00. Following the completion of the transaction, the executive vice president directly owned 2,687,660 shares in the company, valued at approximately $585,587,360.80. This trade represents a 1.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 885,000 shares of the business’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 transaction, 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. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 2,585,740 shares of company stock valued at $571,015,527 in the last quarter. Company insiders own 3.94% of the company’s stock. Analysts Set New Price Targets Several equities analysts have recently issued reports on NVDA shares. BMO Capital Markets set a $340.00 price objective on shares of NVIDIA and gave the company an “outperform” rating in a report on Thursday, August 20th. Sanford C. Bernstein reiterated an “outperform” rating and issued a $400.00 target price (up from $315.00) on shares of NVIDIA in a research note on Thursday, August 27th. President Capital boosted their target price on shares of NVIDIA from $295.00 to $330.00 in a research report on Thursday, August 27th. Phillip Securities upped their price target on shares of NVIDIA from $285.00 to $300.00 and gave the company a “buy” rating in a research note on Monday, August 31st. Finally, Wells Fargo & Company reaffirmed an “overweight” rating and issued a $315.00 price target on shares of NVIDIA in a report on Tuesday, August 11th. Three analysts have rated the stock with a Strong Buy rating, fifty have given a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Buy” and an average price target of $324.34.

Read Our Latest Analysis on NVDA

NVIDIA Stock Down 0.0% NVDA stock opened at $218.29 on Friday. The firm’s fifty day simple moving average is $213.29 and its 200-day simple moving average is $203.33. The company has a market capitalization of $5.26 trillion, a P/E ratio of 27.60, a price-to-earnings-growth ratio of 1.71 and a beta of 2.22. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. NVIDIA Corporation has a 12 month low of $164.27 and a 12 month high of $236.54.

NVIDIA (NASDAQ:NVDA – Get Free Report) last issued its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The firm had revenue of $96.22 billion during the quarter, compared to analysts’ expectations of $92.27 billion. During the same quarter last year, the company posted $1.05 earnings per share. The firm’s revenue was up 105.9% compared to the same quarter last year. As a group, equities research analysts forecast that NVIDIA Corporation will post 9.12 earnings per share for the current year.

NVIDIA declared that its board has initiated a stock repurchase 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 repurchase up to 1.5% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board of directors believes its stock is undervalued.

NVIDIA Dividend Announcement The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th will be paid a dividend of $0.25 per share. The ex-dividend date is Thursday, September 10th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. NVIDIA’s dividend payout ratio (DPR) is presently 12.64%.

NVIDIA Profile (Free Report)

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processors and related software. Its products are used for artificial intelligence, machine learning, high-performance computing, computer graphics, data-center applications and other workloads that benefit from parallel processing.

The company’s offerings include GeForce graphics processing units (GPUs) and software for gaming and personal computers; data-center GPUs, systems and networking products; and professional visualization solutions for design, engineering, media and scientific applications.

Featured Articles Five stocks we like better than NVIDIA Rocket Lab Tackles a Supply Chain Bottleneck as the Stock Hunts for a Bottom. Time to Buy? Optical Cable Corporation Is Starting to Get the Market’s Attention Oil Above $100 Is Creating a New Opportunity Beyond the Major Producers Is Nike’s Index Demotion a Warning or a Buying Opportunity? Want to see what other hedge funds are holding NVDA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVIDIA Corporation (NASDAQ:NVDA – Free Report).

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Semiconductor giant Nvidia (NASDAQ: NVDA) is set to distribute its next quarterly dividend on October 1, 2026, less than three weeks from now.

In this vein, investors who owned the stock before the September 10 ex-dividend date will qualify for the payment.

Notably, the upcoming Nvidia dividend payment stands at $0.25 per share. As a result, an investor holding 100 NVDA shares would receive $25 in cash from the distribution.

According to the latest dividend data, Nvidia’s next estimated dividend amount remains unchanged at $0.25 per share. The company has maintained quarterly dividend payments and increased its dividend for three consecutive years.

At the current annualized rate of $1 per share, Nvidia offers a dividend yield of about 0.46%. The company’s forward payout ratio stands at 6.37%, highlighting that only a small portion of earnings is being returned to shareholders through dividends.

Nvidia dividend details. Source: Dividend.com While the yield remains modest compared to traditional income stocks, Nvidia’s dividend growth accelerated significantly over the past year following its increase from the previous $0.01 quarterly payout.

The dividend comes as Nvidia remains one of the biggest beneficiaries of the artificial intelligence boom.

Nvidia stock fundamentals  The technology company has expanded beyond graphics processors into full-scale AI infrastructure, supplying integrated systems that combine GPUs, CPUs, networking technology, and software for large-scale AI deployments.

Its latest Vera Rubin platform is being rolled out across major cloud providers, including Google Cloud, Microsoft Azure, Oracle, and CoreWeave.

Demand for AI computing capacity continues to exceed supply, with the technology giant projecting roughly 70% revenue growth for fiscal 2028. 

Management has indicated that production constraints, particularly around memory availability, remain the primary limiting factor rather than demand.

The firm’s financial performance reflects that strength, having generated about $303 billion in trailing revenue and nearly $193 billion in net income. Gross margins remain around 75%, while free cash flow continues to support both dividend payments and large-scale share repurchases.

In its latest quarter, Nvidia returned approximately $26 billion to shareholders through dividends and buybacks. The low payout ratio also leaves room for future dividend increases if earnings and cash generation continue to expand.

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Nvidia (NVDA -0.03%) trades around $224 as of this writing, within about 5% of its 52-week high of $236.54 and up about 37% from its 52-week low. The company is worth more than $5.4 trillion.

And anyone who has watched the artificial intelligence (AI) chip giant's stock climb for the past few years without buying it has probably wondered some version of the same thing: Is it too late?

The chart can't answer that. The company's latest results and guidance can, though, because they show what today's price assumes about the next three years of earnings. Let's take a look.

Image source: The Motley Fool.

Accelerating growthUnderscoring how strong demand remains, Nvidia's revenue rose 106% year over year to $96.2 billion in the fiscal second quarter of 2027, a period that ended July 26. It was the company's fourth quarter in a row of accelerating growth, with the rate stepping up from 62% to 73% to 85% over the three quarters before it. Data center revenue grew even faster, climbing 117% to $89 billion -- 93% of Nvidia's total revenue. And profits kept pace. Net income more than doubled year over year to about $60 billion, helped by a 75% gross margin.

The outlook is strong, too. Management guided for fiscal third-quarter revenue of $108 billion, about 12% more than the fiscal second quarter's total.

For perspective, that one quarter of guided revenue is more than the nearly $61 billion Nvidia generated in all of fiscal 2024.

What is today's price counting on?Over the past four reported quarters, Nvidia earned $7.91 per share. At about $224, that comes to about 28 times earnings.

For a company growing this fast, though, that figure ages quickly. What matters more is where earnings go from here.

"We expect to grow revenue by approximately 70% in fiscal 2028. This is a supply constrained outlook," chief financial officer Colette Kress told analysts on the company's earnings call in late August.

In other words, what caps next fiscal year's growth is how many chips Nvidia can make, not how many its customers want.

Margins are the one piece of the outlook moving the other way. Memory prices have climbed more than the company anticipated, and management now expects gross margin to slip to 74% in the fiscal third quarter, bottom at 71% to 72% in the fiscal fourth quarter, and settle at 72% to 73% in fiscal 2028.

Even on those lower margins, 70% revenue growth should leave earnings per share somewhere close to double the trailing figure. Analysts' fiscal 2028 estimates sit in the same neighborhood. That prices shares at about 14.5 times what the company is forecast to earn in fiscal 2028, roughly half of what they cost on the past year's profits.

A price-to-earnings multiple of about 14.5 on a forecast one year out is what a mature, slow-growing business might command, not one management expects to grow 70%. I'd argue the market has already priced in the year of growth Nvidia's supply chain is lined up to deliver, while giving the company little credit for anything after that.

Nvidia doesn't need three great yearsFor a purchase at today's price to work out over the next three years, then, Nvidia doesn't need to keep doubling. It needs fiscal 2028 to land somewhere near the growth management says supply already supports.

And it needs to hold onto those earnings afterward, rather than giving them back in a downturn.

Holding on is the harder half. Not only does data center revenue account for 93% of the total, but much of that comes from a short list of enormous cloud companies whose spending plans can change.

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Chips have been a cyclical business for decades, too, and Nvidia's own history includes some painful downturns. If AI spending stalls in fiscal 2029 or 2030, earnings could fall outright -- and take the stock down with them.

So, is it too late to buy Nvidia stock? I don't think so. Today's price, I think, already treats fiscal 2028 as the end of the big growth, and the business enters that year with demand still outrunning supply.

Of course, a severe downturn in AI spending can't be ruled out. But if fiscal 2028 lands anywhere close to the 70% management expects and earnings simply hold from there, buyers at this level should do fine.

Ultimately, I'd buy shares at today's price. If the next couple of quarterly reports show growth rolling over, or the fiscal 2028 outlook comes down, I'd revisit that.

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Nvidia CEO Jensen Huang. Chris Jung/NurPhoto via Getty Images As they were preparing to leave Nvidia, David Hoeller and Nikita Rudin anxiously hopped on a late-night call with their CEO.

The two had spent years working on robotics at the chip giant, pushing the boundaries of simulation and helping pull off a demo in which CEO Jensen Huang took the stage with a coterie of humanoids.

The pair wanted more freedom to bring that technology into the real world and left in 2024 to found Flexion Robotics, a startup building robot intelligence.

As they dialed in from a conference in Munich, Huang didn't try to talk them out of leaving, though he did have one problem with their startup: its intended name, Checkpoint.

"He told us that the name was bad, and that we had to change it," Rudin said, adding that they'd heard from others that the name sounded like it belonged in a different industry. "I don't want to give him all the credit, but we probably changed it because of his comment."

LinkedIn marketing leader Jessica Jensen said flexibility will help companies attract and retain top talent

Huang also warned them about the long road ahead.

"His message was, 'We don't realize how tough a journey it's going to be,'" Rudin said.

Flexion's experience offers a glimpse into how Huang counsels some departing founders: with encouragement and little sugarcoating. That directness extends through Nvidia's culture, where Huang is known for cutting through management layers and personally weighing in on everything from employee output to customer complaints.

Flexion Robotics' David Hoeller and Nikita Rudin.  Courtesy of Flexion Robotics Flexion's relationship with Nvidia didn't end there. Nvidia later invested in the Zurich-based company, which is now expanding into the US, having recently opened a San Francisco office and hired researchers from companies like Meta. In total, it has raised more than $57 million.

Nvidia did not respond to a request for comment.

Founders say Jensen Huang gives 'honest feedback'For Bing Xu, Huang's parting advice was more personal.

Xu joined Nvidia after it acquired his first startup in 2024. He left earlier this year — walking away from a potentially life-changing sum of Nvidia equity, he said — to build another startup called INT21, which uses AI to improve chip software.

After Xu shared his plans, Huang spent two hours with him and other Nvidia executives discussing his work and trying to convince him to stay.

INT21 founder and CEO Bing Xu.  INT21 Huang also offered a pointed critique. He said communication was Xu's biggest weakness and that it could limit his achievements. Xu had a tendency to assume others shared his technical knowledge, making his explanations difficult to follow — and Huang suggested that staying at Nvidia would be a better path, he recalled.

"This is the most honest feedback I had in the past 10 years about myself," said Xu, who now works with a public relations firm. "I didn't think my communication would be such a big problem, but when Jensen told me, I decided I could take this opportunity to become a better version of myself."

The conversation wasn't all tough love. Xu said he was dealing with high blood pressure and other health issues at the time, and Huang encouraged him to take time off and rest.

He viewed both the concern and criticism as evidence that Huang wanted him to succeed.

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Geoff Weiss You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Geoff Weiss is a senior reporter on Business Insider’s tech team, where he covers Nvidia and AI infrastructure. His reporting focuses on the business of AI compute, emerging startups, and the people and strategies shaping the industry.Previously, Geoff was on the media desk, covering YouTube and Netflix, and themes like the intersection of Hollywood and the creator economy. His work on Netflix’s video podcasting ambitions and Mr Beast’s lessons for Hollywood won second and first prize, respectively, at the 2025 LA Press Club Awards.Prior to joining Business Insider, Geoff was the senior editor of Tubefilter and a staff writer at Entrepreneur. He graduated from New York University with a degree in English Literature.He can be reached at [email protected], on Signal @geoffweiss.25, and on LinkedIn. Have a tip? Use a personal email address and a nonwork device; here's our guide to sharing information securely.

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NVIDIA (NASDAQ:NVDA) Chief Executive Officer Jensen Huang said the expansion of generative artificial intelligence, combined with the end of Moore’s law, is driving a major increase in demand for computing infrastructure and semiconductors.

Speaking at the Goldman Sachs Communacopia + Technology Conference, Huang reiterated his view that AI infrastructure spending could reach $3 trillion to $4 trillion by 2030. He described AI as a new computing layer designed to let users “ask anything” and receive generated answers, rather than simply retrieve pre-recorded information from storage systems.

“In this new world, where it is the end of Moore’s law and we need a lot more transistors,” Huang said, companies must pursue extensive hardware and software co-design to continue delivering substantial performance gains. Huang said NVIDIA’s approach includes connecting chips through NVLink technology and designing systems that extend beyond individual processors. He contrasted the company’s current AI systems with its earlier graphics-chip products, saying the company now ships large-scale systems that integrate GPUs, networking and other components.

AI use cases beyond coding Huang said coding has been an early and important AI use case, though he framed coding broadly to include recipes, business processes, supply-chain workflows and other repeatable instructions. He said cybersecurity could become the next major application area because AI systems capable of writing code should also be able to identify and patch software vulnerabilities.

He pointed to NVIDIA’s partnerships with CrowdStrike, Cisco and Palantir, describing efforts involving NVIDIA’s open Nemotron models for cybersecurity “red teaming” and “blue teaming.” Huang said Cisco would offer an NVIDIA AI factory platform, while Palantir would build on top of it for deployments to companies and countries.

Huang also argued that NVIDIA benefits from both closed and open AI models. He said the company’s computing platform runs models including Google’s Gemini, xAI’s Grok, Meta’s models, Anthropic’s models and OpenAI’s models.

Supply chain, data centers and neoclouds On AI infrastructure constraints, Huang cited challenges involving packaging, DRAM, connectors, voltage regulators and wafers. But he said NVIDIA’s scale, longstanding supplier relationships and broad route to market provide advantages in managing the supply chain.

The company is also focused on downstream limitations involving land, electrical power and data-center buildings, which Huang called “land, power, and shell.” He said NVIDIA tracks available capacity globally through its relationships with cloud providers, original equipment manufacturers, AI-native companies and regional cloud providers.

Huang said NVIDIA remained confident it could grow revenue 70% year over year, while describing demand growth as exceeding 100% on an unconstrained basis. He said the company has a year to expand supply.

Regional cloud providers, or “neoclouds,” are an important part of the company’s strategy, according to Huang. He named CoreWeave, Nebius and Nscale, as well as Lambda and Firmus, as examples of companies helping secure infrastructure capacity outside of the largest cloud service providers.

Huang said NVIDIA’s market includes cloud service providers, enterprises, regional clouds and sovereign AI deployments. He cited quantitative trading firms, including Jane Street and Hudson River, as enterprises adopting AI for prediction workloads. He also named Eli Lilly, Merck and Bristol Myers Squibb as companies using AI systems in drug-discovery workflows. Huang said NVIDIA announced work in Australia involving 2 gigawatts of capacity for 2027, which he characterized as representing approximately $80 billion in infrastructure. He said Australia has excess energy but needs technology, ecosystem demand and capital to build AI infrastructure.

Compute as an investable asset Huang said NVIDIA is working with the financial industry to position NVIDIA computing systems as “investable” and potentially asset-backed. He argued that the systems have durable value because older NVIDIA platforms, including Volta and Ampere, are still rented in the market.

Addressing concerns about circular financing, Huang said NVIDIA makes relatively small investments in some partners while seeing larger contracted demand through their customer pipelines. He said financing for these projects depends on contracted offtake and cited $100 billion in lined-up contracts, without specifying the companies or period covered.

“The returns are too great,” Huang said when asked why he does not view the approach as circular financing.

Physical AI opportunity Huang said self-driving vehicles represent the first major “physical AI” application. He highlighted NVIDIA’s Alpamayo technology, which he described as a reasoning system for autonomous vehicles that can interpret unfamiliar environments.

He said meaningful progress in self-driving technology could occur over the next two to three years, citing Waymo, Tesla, NVIDIA’s partnership with Mercedes and its partnership with Uber. He also pointed to autonomous mobile robots, warehouse-navigation vehicles and logistics systems, including a partnership with Amazon.

More advanced robotic manipulation systems that can reason rather than follow pre-programmed instructions are likely a couple of years away, Huang said. Over a longer period, he said physical AI could extend to telecommunications, including AI-RAN systems being developed with Nokia for future 6G networks.

About NVIDIA (NASDAQ:NVDA) NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processors and related software. Its products are used for artificial intelligence, machine learning, high-performance computing, computer graphics, data-center applications and other workloads that benefit from parallel processing.

The company’s offerings include GeForce graphics processing units (GPUs) and software for gaming and personal computers; data-center GPUs, systems and networking products; and professional visualization solutions for design, engineering, media and scientific applications.

NVIDIA is reportedly in talks to anchor what could become the largest IPO in market history, and the logic behind the check reveals exactly how the chipmaker plans to dominate AI for the next decade.

Reuters reports that NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) is in talks to commit up to $10 billion as an anchor investor in Anthropic’s initial public offering, a deal that could price the AI lab at as much as $2.3 trillion and rank as the largest listing in market history. For a chipmaker whose data center engine already runs on Anthropic demand, the check is less a bet than a lock.

A $10 Billion Anchor Check The figure is up to $10 billion, still in talks, and not yet finalized, tied to an Anthropic IPO that Reuters says is targeted to price before the U.S. midterm elections in November 2026. Anthropic is reportedly seeking to raise as much as $100 billion, with a valuation that could be as high as $2.3 trillion.

What Anthropic Access Buys NVIDIA NVIDIA has the balance sheet to write this check without straining. CFO Colette Kress told analysts on the Q2 FY2027 call that NVIDIA has already “invested nearly 50 billion in the Frontier AI Labs” and framed that outlay as “a small fraction of our expected free cash flow over the same period.” Free cash flow in the quarter alone was $21.34 billion, up 58.43%, and the company returned roughly $26.0 billion to shareholders via buybacks and dividends with about $99.0 billion remaining under its repurchase authorization.

Anthropic’s fundamentals back the check. Its annualized revenue run rate climbed above $65 billion by the end of July 2026, up from about $9 billion at the end of 2025, with projections calling for roughly $190 billion to $200 billion in revenue in 2028. NVIDIA has already disclosed that Anthropic is initially adopting 1 gigawatt of compute capacity on Grace Blackwell and Vera Rubin systems. Anchoring the IPO deepens that commercial rope.

Market Reaction Shares closed at $218.29 on September 11, 2026, essentially flat on the day at -0.03%. Over the past week the stock is down 5.13% and off 2.48% over the past month, though it remains up 17.32% year to date and 23.5% over one year. Retail response to the Anthropic headline turned bullish to very bullish on wallstreetbets, with a composite Reddit sentiment score of 78 in the most recent Saturday reading.

Bull Case The $10 billion check tightens the loop between compute supply and compute demand at exactly the moment NVIDIA is telling investors that supply is the ceiling. CEO Jensen Huang said “At this moment, we have supply for 70%. We have more supply than 70%, but about 70%. Our demand is much higher than that.” NVIDIA guided Q3 FY2027 revenue to $108.0 billion plus or minus 2%, coming off a quarter that delivered $96.22 billion in revenue, up 105.8% YoY, and Data Center revenue of $89.02 billion, up 117% YoY. Kress said management expects fiscal 2028 revenue to grow approximately 70% year over year.

Backing Anthropic converts a customer into an equity stake in a company already generating multi-billion-dollar run-rate revenue on NVIDIA silicon. Kress framed the logic plainly: NVIDIA’s compute is “fungible and durable and can be redeployed to support other customers,” and the AI-lab commitments are expected to drive “roughly a quarter of our business next year.” Profitability underwrites the strategy: gross margin was 75.0% non-GAAP, operating margin 60.38%, and return on equity 101.49%. Analyst coverage skews the same direction, with 57 Buy ratings versus 2 Hold and 1 Sell and an average target of $327.65.

Bottom Line For long-term holders, the $10 billion figure matters because it signals how NVIDIA plans to spend the cash it generates: on ecosystem equity that reinforces GPU consumption for a decade. Anthropic joins OpenAI’s roughly 12 gigawatts of NVIDIA compute commitments and financing partnerships with Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to mobilize over $500 billion for AI infrastructure. The near-term catalyst is management’s own guide: $108 billion in Q3 FY2027 revenue, a number that will show whether Huang’s line that “compute is revenue” holds through year-end. If Anthropic prints at $2.3 trillion, NVIDIA will have written the smallest large check in AI history.

Contact [email protected] for any questions or corrections.

Artificial intelligence (AI) has come on fast and furious.

Just four years ago, it felt like people were trying their first large language model (LLM). Now, AI is everywhere, and it still feels like the world hasn't come close to fully tapping its potential.

Few are more bullish on artificial intelligence than Nvidia (NVDA -0.03%) CEO Jensen Huang, who regularly talks about the future of AI. One aspect of AI that Huang has been discussing in particular is agentic AI, or autonomous systems capable of performing human-like digital tasks.

AI agents have soared in popularity. Huang thinks they will soon be quite common in the workplace.

Nvidia CEO Jensen Huang. Image source: Nvidia.

Agentic AI will soon be our sidekicks On Nvidia's latest earnings call, Huang said he has seen an inflection point rapidly approaching, in which the bulk of AI will shift from being prompted by people to being prompted by AI agents. People are already using agentic AI to automate workflows.

Today, the vast majority of AI is prompted by people. I believe that this last month, it has crossed. Most AI are now agentic. But in the future, every company will have a whole bunch of agents. We have 40,000 employees, roughly. In the future, we'll have 400,000 agents, 4 million agents. And those agents are running continuously. They're running in the background.

Just as the internet transformed how we work today, AI can take it a step further. Workers can already use agents to summarize their emails or Slack threads, organize folders, generate automated responses to frequent questions, conduct deep research, and much more.

Now, in light of what recently happened with OpenAI and the open-source AI community Hugging Face, in which a bunch of rogue agents escaped a confined testing space and launched a cyberattack on Hugging Face, I am sure (or at least I hope) companies will be cautious about how much access they give agents, because there are cybersecurity risks.

But companies will inevitably be tempted to automate as much as possible, which could lower expenses by making people more efficient.

It's also likely to enable people to get more done in less time, so there's going to be a push and pull between the desire to use agents and the need to maintain proper security measures.

Huang is backing up his words with action Huang is not just discussing agentic AI to drum up more excitement about AI.

Nvidia is making a big investment in agentic AI through its recently released Vera central processing unit (CPU), designed specifically for running agents. CPUs, the chips that power legacy devices such as laptops and phones, have come back into fashion thanks to agentic AI.

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Graphics processing units (GPUs) are the main general-purpose chips that power the reasoning component of AI and allow AI models to explore many solutions simultaneously.

While GPUs are still responsible for this component of agentic AI, CPUs are critical to carrying out the tasks the AI triggers, whether that involves accessing files, browsing the web, or managing workflow orchestration.

Nvidia surprisingly launched its Vera CPUs last quarter, boasting that they were 1.8x faster than industry standards and had 5 times the bandwidth per watt of any other data center CPU.

Management also reiterated that it still sees $20 billion in potential revenue from Vera CPUs in its current fiscal year, with the potential to more than double that number in fiscal year 2028. This instantly makes the company one of the leading suppliers of CPUs.

Analysts at Bank of America also released a research report in June, saying they believe the CPU market will grow fivefold between this year and 2030, from $35 billion to $170 billion.

It's never clear what the future holds, but everything Huang has said and the actions Nvidia has taken show they are extremely bullish on agentic AI.

Michael Burry, famous for his depiction in The Big Short, has set his eyes on artificial intelligence (AI) stocks. He's short Nvidia (NVDA -0.03%), Palantir (PLTR +0.83%), and Tesla (TSLA +0.52%) and sees the AI bubble leading to a "1987-type fall."

Writing in his Substack newsletter, Burry recently brought up a valid point about leverage, but his concerns about an AI bubble are vastly overblown. Here's what investors should know.

Image source: Getty Images.

Leverage is a concern for people who need money soon Burry noted that a rising stock market forces certain funds to go deeper into leverage. For instance, the GraniteShares 2x Long NVDA Daily ETF (NVDL -0.18%) is forced to buy more shares of Nvidia as the chipmaker rallies.

It's not just these funds, either. Margin investing is hot, and the total margin debt increased by 50% year over year in June. That type of leverage accelerates rallies but can lead to harsh, sudden crashes.

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The risk of that level of margin was put on full display when Leopold Aschenbrenner's highly leveraged Situation Awareness hedge fund was liquidated due to declining stock prices. The fund had high-leverage bets on hot AI stocks. While most investors with long-term horizons can recover from a 20% dip, those same dips are devastating for investors like Aschenbrenner.

In the end, his $45 billion hedge fund liquidated almost overnight, catching the entire world by surprise and explaining why AI stocks had been slumping for weeks.

Even if you do not use leverage on AI stocks, you may still be affected by other people's leverage, since margin calls can force people to sell out of positions and turn small corrections into big ones.

Long-term investors shouldn't be worried The AI boom is fueled by real demand, revenue, and profits. People are adopting AI models like ChatGPT and Gemini. Chatbots are becoming more common, and physical AI, such as humanoid robots and autonomous vehicles, is gaining traction.

It's not like the dot-com bubble, where companies had sketchy fundamentals and questionable long-term growth prospects. Furthermore, the margin unwind connected to Situational Awareness suggests there won't be a dramatic 1987-style event. There may be a good buying opportunity for patient investors.

Although Burry made a great call leading up to the recession that catapulted him to fame, he has repeatedly warned investors about stock market crashes that have never materialized.

Burry may have profited in the short run with some of his positions since he often uses puts. However, staying out of the market and avoiding growth stocks has hurt people in the long run.

Burry isn't right all the time, and when he makes bold bets, he's often thinking in months rather than years, since put options have expiration dates. It may also be the case that a broken clock is right twice a day. Burry disclosed a short position in Nebius Group (NBIS -1.56%) on Aug. 6. The neocloud then delivered superb earnings and is up roughly 20% since that disclosure.

The market's love of leverage is a risk that can affect the entire market, with an outsized impact on growth stocks. However, the fundamental story for AI is solid and strengthening.

Anthropic is in talks to ​bring Nvidia (NVDA.O) as an anchor investor into what could be the largest IPO in history, two people familiar with the ‌matter told Reuters.

Anthropic is seeking to raise as much as $100 billion that could value the artificial intelligence startup at around $2 trillion, the people said. Nvidia is considering investing up to $10 billion in the IPO, one of the sources added. The plans remain under discussion and could change, they cautioned, requesting anonymity because the discussions are confidential.

Nvidia’s potential involvement ​in the IPO, which has not previously been reported, would give Anthropic an early strategic backer for the outsized offering, while further deepening ties ​between the chipmaker and one of its major customers. Bringing a deep-pocketed anchor investor like Nvidia onboard could boost ⁠investor confidence in the listing, which is shaping up to be a major test of public-market appetite for the enormous valuations and capital requirements ​of frontier AI labs.

Anthropic declined to comment. Nvidia did not immediately respond to a request for comment.

Anchor investors are typically institutional investors that commit to ​buy a set portion of an IPO before it is marketed more broadly, providing an early vote of confidence in the shares. It is increasingly common for mega IPOs to line up early institutional commitments, given the large amounts they seek to raise. Chip designer Arm’s anchor investors included Nvidia and Amazon, while Saudi Arabia’s PIF was among ​SpaceX’s anchor investors.

The deepened relationship highlights the complex ties between AI model developers and the companies supplying the enormous amounts of computing power they ​require. Anthropic relies heavily on Nvidia GPUs, while also seeking to diversify its chip suppliers as demand for Claude has strained its available computing capacity.

In November 2025, Nvidia said ‌it would invest ⁠up to $10 billion in the AI startup as part of a broader partnership under which Anthropic committed to buy $30 billion of Microsoft Azure computing capacity powered by Nvidia chips.

Anthropic already counts the biggest tech companies in the world as backers. These include Amazon and Google, who are also its major compute suppliers. In April, Anthropic said it would commit more than $100 billion over a decade to Amazon’s AWS, while using more than 1 million of Amazon’s ​Trainium2 chips. It has also agreed ​with Google and Broadcom to ⁠add multiple gigawatts of TPU capacity.

The company has been trying to access more compute as its revenue has surged. It is also working to gain greater control over its hardware costs by forming an in-house team to design custom ​chips tailored to Claude.

The listing, which is expected to complete before the U.S. midterm elections in November, would mark ​another jump in ⁠Anthropic’s valuation. The Claude maker raised $65 billion in May at a post-money valuation of $965 billion. Its annualized revenue run rate had climbed above $65 billion by the end of July, from about $9 billion at the end of 2025, according to the company. The potential valuation also hinges in part on company projections of roughly $190 ⁠billion to $200 ​billion in revenue in 2028, Reuters previously reported.

The expected Anthropic IPO added to a string of ​blockbuster listings that has propelled the U.S. IPO market toward a record year, following Elon Musk's SpaceX's debut in June.

U.S. IPOs, excluding special-purpose acquisition companies, have raised a record $137 billion through the ​end of August, according to Dealogic.

Characteristics and Risks of Standardized Options: https://bit.ly/2v9tH6D. Does Nvidia's (NVDA) valuation match its projected growth?

China's homegrown AI chips were supposed to make NVIDIA irrelevant in the world's second-largest market, but a supply crisis is quietly dismantling that argument and reshaping the competitive math in ways Beijing did not anticipate.

China’s push to swap out NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) silicon for homegrown accelerators just got noticeably more expensive. Huawei’s forthcoming Ascend part and Cambricon’s next-generation processor have been repriced upward by as much as 50% against quotes given only two months earlier, with the culprit being a shortage of high-bandwidth memory that Chinese fabricators can only obtain through grey-market resellers who mark it up several times over the prices paid in the United States and Korea.

NVIDIA is locked out of Chinese data center compute revenue by export rules, so none of that flows to its top line. But the pricing signal matters. When the cheap alternative stops being cheap, the argument that Jensen Huang’s platform is optional gets weaker.

Memory Bottleneck Squeezing the Substitutes High-bandwidth memory, or HBM, is the stacked DRAM that sits next to a GPU and feeds it training data at extreme speed. Without enough of it, a modern AI accelerator stalls on its own bandwidth ceiling and delivers a fraction of its rated throughput.

Export controls have cut Chinese buyers off from direct HBM supply, so Huawei and Cambricon reach the parts through third-country intermediaries who charge multiples of the sticker price. That cost lands inside the finished accelerator, which is why two vendors raised prices at roughly the same time.

NVIDIA is fighting the same shortage from the other side. On the August 26 call, the company described “extreme pricing conditions in memory” and said the increases had “exceeded our prior expectations and are headed even higher into next year.”

The difference is scale and access. NVIDIA has direct relationships with all three HBM suppliers and a multiyear partnership with SK hynix (NASDAQ:SKHY); Chinese buyers pay a grey-market premium on top of an already tight market.

What NVIDIA’s Numbers Say About Pricing Power Second-quarter revenue reached $96.22 billion, up 105.8% year over year, with Data Center at $89.02 billion. Guidance for the October quarter is $108 billion, plus or minus 2%, explicitly excluding any China data center compute revenue.

China Hopper shipments came in at less than 1% of Data Center revenue last quarter. The company is growing at this pace without the second-largest AI market on Earth contributing meaningfully.

Huang framed the moment plainly: “AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue.”

Management said fiscal 2028 revenue should grow roughly 70% year over year, and even that is a “supply-constrained outlook” against demand growing near 100%.

Does This Hand NVIDIA the China Market Back? Some observers argue that expensive domestic silicon builds political pressure inside China for a negotiated reopening of NVIDIA sales. The more likely outcome is the opposite.

Beijing has been consistent: pay more now, build the domestic stack later. Rising Ascend and Cambricon prices are far more likely to accelerate Chinese investment in domestic HBM production than to trigger a policy reversal in Washington.

Over a three-year horizon, that is the real risk to the moat. Chinese memory fabs will eventually close some of the gap, and when they do, the substitution math changes.

For now, the takeaway is narrower and cleaner. The cheap alternative to NVIDIA is disappearing, which validates the pricing power NVIDIA already commands everywhere it can sell. All of that compute still has to be powered, cooled, and networked by somebody, which is why we pulled seven suppliers behind the AI buildout into a free report you can grab here.

Is NVDA Stock a Buy? At $218.36, NVIDIA trades at a P/E near 44x with 57 buy ratings against 2 holds and 1 sell. Against custom-silicon competition from hyperscalers and a Chinese substitute pool that just got more expensive, the platform advantage is intact, and the demand backlog is real. NVDA remains a buy, since the forward PE ratio is still cheap and the company keeps growing at hypergrowth levels.

Contact [email protected] for any questions or corrections.

The question of which AI hardware company is best seems to always circle around Advanced Micro Devices (AMD +2.04%) and Nvidia (NVDA +0.77%). However, I don't think that's who Nvidia shareholders need to be concerned about.

Instead, I think investors need to look outside the GPU realm and start looking at custom AI chips that could steal market share. The biggest name in this space is Broadcom (AVGO +0.96%), and I think it is actually Nvidia's No. 1 competitor right now.

This shifts the narrative completely, and once you see the growth Broadcom is projecting, it's easy to understand why Nvidia has cause for concern.

Image source: Getty Images.

AMD's results aren't as impressive as Nvidia's First, let's figure out why AMD isn't a threat. At the start of the AI arms race, Nvidia captured a lot of the data center computing market share because its products were flat-out better than AMD's. The biggest advantage Nvidia had was its CUDA software, which controls how its GPUs process calculations. AMD didn't have a great counterpart to this software, so every company naturally gravitated toward Nvidia's GPUs. While there could be some arguments made for whether AMD's or Nvidia's hardware is better today, the reality is that a vast majority of existing infrastructure is already set up for Nvidia GPUs, so a wholesale switch is highly unlikely due to switching costs.

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Additionally, Nvidia is still growing faster despite AMD's smaller size (which should ideally make it easier to grow faster). During Nvidia's Q2, ended July, its data center division grew at a 117% pace to $89 billion. AMD's data center division generated a mere $6.7 billion and grew at a 107% pace. That clearly indicates Nvidia is still growing faster and has a huge size advantage as well.

However, another competitor is rising.

Broadcom forecasts monster growth over the next few years GPU-based computing is great for all sorts of workloads, and the flexibility it provides is unparalleled. However, GPUs aren't always used for their full capabilities, and sometimes end up running one workload over their entire lifespan. That wastes many features, making it not optimized for the task.

As the AI build-out progresses, the AI hyperscalers are looking to optimize computing costs, and that means developing custom AI hardware specifically built for workloads they will see. There will always be a place for GPUs in AI, as there may be odd data sets or other workloads that aren't suited for custom AI chips, but a healthy amount of workloads can be run for cheaper on optimized hardware.

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None of the AI hyperscalers has the expertise to design and build its own computing chip, so they bring on a partner like Broadcom to handle this. This creates a great relationship, as Broadcom brings the manufacturing capabilities and design knowledge, while the AI hyperscalers bring massive computing demand.

Broadcom has four major clients: Alphabet, Meta Platforms, OpenAI, and Anthropic. Currently, Alphabet's Tensor Processing Unit (TPU) is the only computing unit being used in large numbers. Still, the other three are ramping up their orders, which is causing Broadcom's revenue to grow rapidly. During the fiscal third quarter (ended Aug. 2), Broadcom's AI semiconductor revenue totaled $16.7 billion, up 221% year over year.

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While that's smaller than Nvidia by a long shot, it's growing far faster than either Nvidia or AMD. Furthermore, Broadcom expects its AI semiconductor revenue to double in 2027 to $115 billion and again in 2028 to $230 billion. That makes it a force to be reckoned with in the computing space, and I think Nvidia has more to worry about with Broadcom than it does with AMD.

I think the best way to invest in AI computing is to take positions in both Nvidia and Broadcom, as I have done. That way, you can benefit from whichever one ends up being the winner. While I think both of these companies will end up sharing a large portion of market share, Broadcom is certainly growing faster right now and is well-positioned to continue capturing additional market share.