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E Fund Management Hong Kong Co. Ltd. grew its stake in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 17.9% during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 76,581 shares of the computer hardware maker’s stock after purchasing an additional 11,628 shares during the period. NVIDIA makes up approximately 5.1% of E Fund Management Hong Kong Co. Ltd.’s portfolio, making the stock its 3rd biggest holding. E Fund Management Hong Kong Co. Ltd.’s holdings in NVIDIA were worth $15,323,000 at the end of the most recent reporting period.

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

Wall Street Analysts Forecast Growth NVDA has been the subject of a number of analyst reports. CICC Research increased their target price on NVIDIA from $240.60 to $268.30 and gave the stock an “outperform” rating in a research note on Friday, May 22nd. Raymond James Financial set a $515.00 price target on NVIDIA and gave the company a “strong-buy” rating in a research note on Thursday, August 27th. DA Davidson reaffirmed a “buy” rating and set a $300.00 price objective on shares of NVIDIA in a report on Thursday, August 27th. Seaport Research Partners increased their price objective on NVIDIA from $140.00 to $180.00 and gave the stock a “sell” rating in a research report on Thursday, May 21st. Finally, Tigress Financial reissued a “strong-buy” rating and issued a $425.00 target price (up from $360.00) on shares of NVIDIA in a report on Wednesday, May 27th. Two analysts have rated the stock with a Strong Buy rating, fifty-one have given a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus price target of $324.34.

Check Out Our Latest Stock Report on NVDA NVIDIA Stock Performance NASDAQ NVDA opened at $218.36 on Friday. NVIDIA Corporation has a fifty-two week low of $164.27 and a fifty-two week high of $236.54. The stock has a market cap of $5.26 trillion, a price-to-earnings ratio of 27.61, a price-to-earnings-growth ratio of 1.75 and a beta of 2.22. The business has a fifty day moving average of $212.82 and a 200-day moving average of $203.23. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14.

NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its quarterly earnings data on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, beating 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 return on equity of 96.04% and a net margin of 63.66%.The business’s revenue for the quarter was up 105.9% compared to the same quarter last year. During the same quarter last year, the company earned $1.05 earnings per share. As a group, analysts predict that NVIDIA Corporation will post 9.1 earnings per share for the current fiscal year.

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

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

Insider Activity In other news, Director Mark Stevens sold 622,239 shares of the business’s stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $231.62, for a total value of $144,122,997.18. Following the completion of the transaction, the director owned 2,336,531 shares of the company’s stock, valued at $541,187,310.22. The trade was a 21.03% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Timothy Teter sold 30,000 shares of the company’s stock in a transaction that occurred on 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 transaction, the executive vice president directly owned 2,687,660 shares in the company, valued at $585,587,360.80. The trade was a 1.10% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 2,585,740 shares of company stock worth $571,015,527 over the last ninety days. 3.94% of the stock is owned by corporate insiders.

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

Positive Sentiment: NVIDIA’s AI growth outlook remains exceptionally strong. CEO Jensen Huang said revenue could grow roughly 70% next year, while the company’s next-generation Rubin platform is already shipping. Recent quarterly revenue reached $96.2 billion, up about 106% year over year, exceeding estimates and reinforcing expectations for continued data-center demand. Nvidia Has $96 Billion in Quarterly Revenue Positive Sentiment: Microsoft reportedly plans to more than triple its data-center capacity, a potentially significant demand catalyst for NVIDIA’s GPUs, networking products and full-stack systems. Strong August revenue growth at manufacturing partner TSMC also signals that AI-chip orders remain robust. Microsoft Data Center Expansion Positive Sentiment: NVIDIA is expanding its ecosystem through a planned Australian AI-infrastructure buildout of up to 2 gigawatts by 2027, partnerships with Palantir for sovereign supply-chain AI, and adoption of its chip-linking technology by d-Matrix. These initiatives broaden demand beyond traditional hyperscalers. Australian AI Infrastructure Expansion Neutral Sentiment: Competition and valuation remain investor concerns. Positron AI raised $875 million to develop memory-based inference technology that could challenge NVIDIA’s software and hardware advantage, while AMD and Broadcom are being promoted as alternative AI investments. High Treasury yields also make NVIDIA’s elevated valuation more difficult to justify. Negative Sentiment: The Justice Department is reportedly investigating whether NVIDIA’s licensing arrangement with AI-chip startup Groq was structured to avoid antitrust scrutiny. Any regulatory action could limit strategic flexibility or increase legal uncertainty. DOJ Groq Licensing Investigation Negative Sentiment: Insider selling is weighing on sentiment: director Mark Stevens reportedly sold hundreds of thousands of shares, and broader recent filings show substantial insider sales with no reported purchases. The transactions do not prove weakening fundamentals, but they can encourage profit-taking after the stock’s strong rally. Negative Sentiment: Higher oil prices, rising bond yields and a hotter inflation reading have pressured technology stocks broadly. These macro forces, combined with concerns about AI-capital-spending sustainability and fresh regulatory scrutiny, help explain why NVIDIA has decreased despite strong company-specific news. 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 AeroVironment’s Record Backlog and Earnings Beat Fuel Recovery Case Corning Just Locked In a Massive Verizon Fiber Deal as AI Infrastructure Expands 3 Under-$20 Stocks Tied to the Future of U.S. Energy and Materials Uncle Sam’s Quantum Leap: Feds Fund a $300M Quantum Supercycle Want to see what other hedge funds are holding NVDA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVIDIA Corporation (NASDAQ:NVDA – Free Report).

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Nvidia chief executive Jensen Huang has a simple answer for investors worried that the chipmaker is helping finance its own customers: put in $1 and get $100 back.

Huang used that shorthand at Goldman Sachs’ Communacopia + Technology Conference while defending Nvidia’s growing investments across the AI ecosystem.

Yet Nvidia stock NASDAQ:NVDA fell 2.37% to $218.36, its third consecutive decline.

The Nasdaq also dropped 0.65% as Treasury yields approached 5% and oil surged, so the sell-off was not simply a verdict on Huang.

Huang rejected suggestions that Nvidia’s investments amounted to circular financing.

“It’s not circular because we put a little bit of money in, and a lot of money comes back,” he told the Goldman conference. He later summarised the logic more bluntly, “I put in one, and a hundred comes back.”

The figure was rhetorical, not a disclosed 100-times investment return.

Nvidia has invested about $50 billion in AI labs. It has also agreed to provide guarantees of up to $105 billion linked to OpenAI’s Ohio data-centre project, where Nvidia is the exclusive chip supplier.

A financing platform aims to mobilise roughly $500 billion of third-party capital.

David Wagner of Aptus Capital Advisors told The Washington Post that he was “not worried about it at all”, noting that institutions including BlackRock, Blackstone, Apollo and Goldman Sachs are supplying much of that capital.

Nvidia is effectively helping accelerate the infrastructure that creates demand for its chips.

Supplier financing is hardly new. Aerospace, telecoms and industrial companies have supported customers buying expensive equipment for decades.

What makes Nvidia different is the scale and interconnectedness of the AI buildout.

Nvidia can invest in an AI company, support financing for its data centre, supply the GPUs inside it and benefit as that customer expands.

That can create a powerful commercial flywheel. It can also make the flow of capital and demand increasingly intertwined.

Gary Tan of Allspring Global Investments told the Los Angeles Times that “capital is increasingly being used to fund future AI customers and infrastructure deployments.”

The risk becomes clearer if AI spending slows. Highly leveraged cloud operators need strong utilisation and pricing to service debt and justify new capacity.

Nvidia’s outlook remains exceptional, as the company expects revenue to grow about 70% in its next fiscal year, while Goldman Sachs reiterated a Buy rating and $300 target, citing AI demand and supply dynamics.

Shortages can distort ordering behaviour.

Investor Dan Niles has warned that large customers facing scarce supply can request far more chips than they ultimately need.

“They all double order,” he said, explaining that hyperscalers may over-order because they expect only part of their requested supply to arrive.

Niles remains bullish on Nvidia, but the point complicates how investors interpret demand.

A retired Apple engineer sits on a $1.95 million gain and a tax bill that would make your eyes water, and her advisor has a perfectly legal way to dodge it entirely. The catch involves signing away access to your…

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A retired Apple engineer walks into her advisor’s office with $2 million in AAPL and a cost basis around $50,000. She wants to diversify. She does not want a $460,000 federal-plus-California tax bill for the privilege.

Her advisor writes down three words: exchange fund. Then he writes down one number: seven years.

Section 721 and the Concentrated-Winner Problem Silicon Valley is stuffed with concentrated positions. NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) is up 921.96% over five years and 15,352.72% over ten, trading around $225.91 on Tuesday. Apple (NASDAQ:AAPL) is up 1,241.49% over ten years, closing near $316.35. An engineer who took RSUs for a decade is often single-stock-rich and terrified of selling.

The federal tax on a long-term sale is 20% at the top bracket plus the 3.8% net investment income tax, and California layers on 13.3%. On a $1.95 million gain, the check to the IRS and Franchise Tax Board runs into the mid-six figures. That is the problem an exchange fund is engineered to defer.

The provision at work is IRC Section 721(a), the partnership contribution rule. It says a taxpayer who contributes property to a partnership in exchange for a partnership interest recognizes no gain. Section 721 is the corporate cousin of Section 351, with a key distinction: 721 governs partnerships, while 351 governs C-corps. Exchange funds are partnerships, so 721 controls.

How the Machine Works An exchange fund is a private limited partnership run by a sponsor. Twenty or more wealthy contributors show up, each carrying a different concentrated stock. One brings NVIDIA, another brings Apple, another Meta, another Eli Lilly. They all contribute in-kind and receive a pro-rata slice of the pooled portfolio.

No sale. No gain. The Apple engineer now owns a diversified basket instead of one ticker, and she has not written a check to the IRS.

Four features are non-negotiable:

Seven-year lockup. Redeem early and the sponsor hands back your original shares (or cash), and the tax deferral evaporates. The 20% qualifying-asset sleeve. To dodge the Investment Company rules under Section 721(b), the fund must hold at least 20% in illiquid assets. In practice that means a real-estate sleeve, often levered, financed inside the partnership. Carryover basis. Your $50,000 basis in AAPL follows you into the fund and out again after seven years. You have deferred the gain, not erased it. Accredited investor and qualified purchaser gates. Typical minimums start at $5 million in investable assets, with fees that run 1% or more per year plus expenses. Why the Rich Still Do It Anyway The endgame is estate planning. Hold the fund interest until death and heirs get a step-up in basis. Combined with the $15 million basic exclusion for 2026 estates, a couple can move an eight-figure concentrated position through an exchange fund, into diversification, and out to heirs having never paid the embedded capital gain (the paperwork side of that handoff, from beneficiary forms to titling, is the whole subject of our free estate checklist here: Die With a Plan). That is the “buy, borrow, die” playbook wearing a partnership hat.

Strategies You Can Actually Use Most readers will never clear the accredited-investor bar, and even those who do should ask whether a seven-year lockup, a leveraged real-estate sleeve, and 1%+ fees beat these alternatives:

Direct indexing with tax-loss harvesting in a taxable brokerage account. You get index-like diversification and a steady stream of losses to offset the gains from selling your concentrated stock in tranches. The 0% long-term capital gains bracket. In a low-income year (early retirement, a sabbatical), a married couple can realize gains stacked below roughly $96,700 in taxable income for 2026 [VERIFY: 2026 LTCG 0% ceiling, MFJ] at a federal rate of zero. Gifting appreciated shares to adult children or parents in lower brackets, using the $19,000 annual exclusion for 2026. Their sale, their (lower) rate. Donor-advised funds and charitable remainder trusts. Contribute appreciated NVDA or AAPL, take the deduction at fair market value, and let the charity sell tax-free. Do nothing, then die. Unromantic, but the step-up in basis at death is the biggest loophole in the code, and it costs zero in fees. Exchange funds are legal, mainstream, and mostly sold by the wirehouses. They are also expensive, illiquid, and, for many holders, redundant to strategies that do not require locking up seven-figure sums for seven years. This is the kind of decision worth running with a fiduciary CPA before signing subscription documents.

This article is for informational purposes only and is not tax, legal, or investment advice. Consult a qualified tax professional about your specific situation.

Contact [email protected] for any questions or corrections.

Post-Labor Day vol heats up, with Treasury yields, crude oil, and agricultural commodities steering the S&P 500 Apple’s iPhone 18 event takes center stage this week, while NVIDIA and other semiconductor heavyweights headline a packed Goldman Sachs tech conference The catalyst calendar is packed through September, with NVIDIA events, CRM Dreamforce and Meta Connect all on tap It’s time to stash away your summer gear. An active corporate event stretch is upon us. The post-Labor Day trade is often rife with volatility, and we’ve already seen some fireworks across asset classes.

To kick off the holiday-shortened week, the U.S. 10-year Treasury yield scaled 4.80%, potentially pacing for its highest weekly print since October 2023. Global crude oil, as measured by the prompt Brent contract, is within earshot of $100 for the first time since May. All the while, geopolitical strife and even Mother Nature (thanks to El Niño) upset supply-demand balances for agricultural commodities worldwide.

The Stage is Yours, John Big tech has its own slate of volatility sparks on tap. Following last week’s Tesla (TSLA) whimper of a stock price response to its Cybercab Austin, TX, rollout, eyes now turn to Apple (AAPL). It’s rookie CEO John Ternus’s big scene, as he and the team unveil the latest iPhone. Apple Event 2026 is expected to center on iPhone 18 Pro and Pro Max. The world’s second-most valuable company may also step into the foldable phone arena, with a rumored model called the iPhone Ultra. We’ll learn all the specifics starting at 1 p.m. ET Wednesday, and the “Surprise and Shine” keynote streams live from Cupertino. 

Should traders anticipate fireworks? Maybe not. According to data from Option Research & Technology Services, shares trade with a tame 26% implied volatility, which broadly equates to a 1.6% daily stock price change. What’s more, AAPL has just a 33% positive rate on Event Days, so says analytics firm Bluekurtic Market Insights. Whether this week’s event proves to be another ‘sell the news’ opportunity remains to be seen. 

A further decline off its July 29 record high of $344 would be understandable, given the rapid recovery from the $245 March nadir. AAPL is up almost 17% on the year, dividends included, so the bulls are satisfied, but Ternus has a lot to live up to after a 2700% total return over former CEO Tim Cook’s tenure. 

NVIDIA & Jensen Wait in the Wings “Surprise and Shine” will have analysts’ attention mid-week. Meanwhile, one of the biggest and potentially market-moving tech gatherings is ongoing just 42 miles north of the Apple shindig.  

The Goldman Sachs Communacopia Technology Conference 2026 features several high-profile hardware, software, and cybersecurity stalwarts, none more prominent than NVIDIA (NVDA). Its management team is slated to speak Thursday at 11:50 a.m. ET, according to Wall Street Horizon’s event data, though that is still pending confirmation. Global semiconductor names such as ASML (ASML), AMD (AMD), KLA Corp (KLAC), and Broadcom (AVGO), among others, are on hand. 

Also in attendance at Goldman’s gathering are Mag 7 members Alphabet (GOOGL) and Microsoft (MSFT). It’s not a one-sector show, either, as Walmart (WMT) and Mastercard (MA) may provide details on tech with respect to consumer impacts. Investors can expect to hear updates from the digital security industry as well, with CrowdStrike (CRWD) and Palo Alto Networks (PANW) on hand. 

NVIDIA’s 70% Question Once the Apple fanfare winds down, NVIDIA could grab the spotlight, depending on what’s said at the IBC 2026 Conference this Friday. The event spills over into Fed Week, and it’s possible that the company’s ambitious FY 2028 sales growth rate of 70% could receive more color. If not this week, the firm could provide details later in September at All In 2026 (the 16th) and its NVIDIA AI Day Singapore 2026 (the 22nd). 

Lastly, NVIDIA presents at the Experience POWER Conference 2026 the same day as Microsoft, on the final Monday of the third quarter. 

Earnings Season Is on the Horizon Gazing ahead to the Q3 reporting season, Tesla gets things going with its unconfirmed October 21 earnings date, followed a week later by Alphabet, Meta Platforms (META), and Microsoft. Apple and Amazon have unconfirmed reports on October 29, with nearly $2 trillion market cap SpaceX (SPCX) posting results likely on Election Day in the U.S. (Tuesday, November 3).  

Here’s a trick to help keep them straight: M&M Wednesday, A&A Thursday is usually how it goes (meaning, Meta & Microsoft come before Apple & Amazon). With such a busy corporate event calendar, we should take all the mnemonics we can get!

Software & AI Together at Last? Volatility might also be stirred as the Fed convenes next week. Salesforce (CRM) hosts its annual Dreamforce event, also in the City by the Bay. After CEO Marc Benioff locked arms with Anthropic CEO Dario Amodei last month following CRM’s earnings report, a new twist emerges in the AI story: maybe AI won’t be eating software, after all.

Always the showman, but also one of the best tech chiefs around, Benioff could unveil new partnerships. Perhaps a fresh autumnal catalyst is, in fact, needed, given CRM’s massive $146 to $268 summer rally. The Dow component has shed 6% between since last Thursday’s close, though.

Wrapping things up, Meta Connect happens September 23-24. This corporate confab is marketed to home in on the hyperscaler’s AI technologies, AI glasses, and VR. Mark Zuckerberg and team surely hope to direct media attention away from recent regulatory headlines and settlement figures.

Shares are down 6% on the year, even after a five-day winning streak through this past Tuesday afternoon. Investors are no doubt frustrated by a steady diet of lower highs on the chart, while $520 has attracted buyers on a pair of occasions in 2026.

The Bottom Line Portfolio managers and analysts are back from holiday, and we are hitting the ground running. Apple’s iPhone event hopes to buck bearish stock reaction trends, while the broader Goldman Sachs tech conference may offer clues on the latest hardware and AI breakthroughs. NVIDIA is on the road all month, and earnings season will be here before you know it. Through it all, keep up with Wall Street Horizon for all the macro and micro volatility catalysts.

Twitter: @ChristineLShort

The author may hold positions in mentioned securities.  Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

Key Takeaways NVIDIA's Data Center revenues jumped 117%, while total sales rose 106% in fiscal Q2 2027. AMD's Data Center sales doubled, with Q3 revenues projected to grow 41% year over year.NVIDIA's 63.7% net margin and 24.26 forward P/E compare with AMD's 15.6% and 69.59. NVIDIA Corporation (NVDA - Free Report) and Advanced Micro Devices, Inc. (AMD - Free Report) have both gained immensely from soaring demand for artificial intelligence (AI) infrastructure and recently posted strong quarterly results. However, NVIDIA remains the market leader, while AMD continues to gain ground. So, which AI stock offers the better investment opportunity right now? Let’s see in detail –  

NVIDIA’s AI Growth Surges as Data Center Demand Rises NVIDIA’s Data Center business has remained the primary growth engine. Data Center revenues were $89 billion in the fiscal second quarter of 2027, up 117% year over year and 18% quarter over quarter, according to the company’s Aug. 26 press release. Overall, NVIDIA generated $96.2 billion in revenues, up 106% year over year and 18% sequentially. 

Alongside rapid revenue growth, NVIDIA exhibited strong profitability. During the quarter, NVIDIA’s GAAP and non-GAAP gross margins both came in at 75% compared with roughly 72.5% a year ago. The company is also translating rapid revenue growth into even faster earnings growth, supported by continued gains in operating income. 

NVIDIA now projects revenues of around $108 billion, plus or minus 2%, for the fiscal third quarter of 2027, up 12% sequentially from the midpoint. Thus, NVIDIA’s growth trajectory remains robust, while its cutting-edge Vera Rubin platform is in full production, indicating that the company is well-poised to gain from the next phase of AI infrastructure spending. 

AMD’s Strong Data Center Growth Bolsters Its AI Ambitions The Data Center segment was the primary driver of AMD’s revenue growth, with sales doubling from the same period a year ago in the second quarter of 2026, according to the company’s Aug. 4 press release. Total revenues reached $11.5 billion, up 50% year over year and 13% from the previous quarter.  

Strong demand for AMD’s EPYC server processors boosted revenue growth. At the same time, the company’s Helios platform has entered its initial ramp-up phase, while its Instinct accelerators continue to scale rapidly. Consequently, AMD projects third-quarter 2026 revenues to reach $13 billion, plus or minus $300 million. At the midpoint, this would represent 41% year-over-year growth and a 13% sequential increase. 

AMD also expects Data Center revenues to improve further in the latter half of 2026, and profitability is projected to improve steadily. The company projects a 56% non-GAAP gross margin in the third quarter, indicating continued progress in margin expansion. 

NVIDIA vs. AMD: Why NVDA Is the Stronger AI Stock to Buy Now The rollout of NVIDIA’s advanced Vera Rubin platform, strong margins, and sheer dominance in AI infrastructure, driven largely by Data Center growth, are expected to support a positive movement in its shares. AMD, meanwhile, is closing the gap through strong Data Center growth, expanding AI accelerator sales, and improving profitability. 

Despite AMD’s growing momentum with its EPYC server processors and Instinct accelerators, NVIDIA’s full-stack platform gives the company a competitive edge as AI infrastructure spending increases. With a larger AI infrastructure footprint, NVIDIA remains the market leader.  

Moreover, NVIDIA’s net profit margin of 63.7% versus AMD’s 15.6% highlights NVIDIA’s greater efficiency in converting revenues into bottom-line earnings. Therefore, NVIDIA remains the stronger buy, backed by superior profitability, AI infrastructure leadership and full-stack platform advantage.

 

Image Source: Zacks Investment Research

Additionally, NVIDIA appears more attractively valued than AMD. By price-to-earnings ratio, NVDA trades at 24.26 forward earnings compared with AMD’s 69.59 forward earnings multiple.

 

Image Source: Zacks Investment Research

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

Nvidia (NVDA -2.27%) has seen revenue go parabolic during the artificial intelligence (AI) boom, climbing more than 11-fold since 2022 to $303 billion on a trailing-12-month basis. In fiscal Q2, which ended July 26, it posted $96 billion in revenue, up 106% year over year. That's rare growth at this scale -- but the bigger takeaway isn't what's already in the books. It's what management says comes next.

The company is guiding for roughly 70% revenue growth in fiscal 2028, and its next major chipset platform, Vera Rubin, is already shipping. Here's why this $5.4 trillion market-cap stock still looks like a no-brainer buy.

Image source: Nvidia.

Nvidia's opportunity goes well beyond the hyperscalers Demand from hyperscalers like Amazon, Alphabet, and Microsoft continues to drive a big portion of Nvidia's data center business. Last quarter, hyperscalers generated nearly $49 billion in revenue -- about half of Nvidia's total revenue. On top of that, Amazon Web Services said it plans to deploy an additional 2 million GPUs through fiscal 2029, which reinforces long-term demand visibility.

But Nvidia revealed even stronger growth outside these core customers. Revenue from neocloud (specialized AI clouds), industrial, and enterprise customers rose 138% year over year to $40 billion, outpacing hyperscaler growth. That matters because hyperscalers are increasingly touting the capabilities of their in-house chips, potentially presenting a risk to Nvidia over time.

Nvidia's push to diversify its customer base is working. The $40 billion in non-hyperscaler revenue includes sovereign government buyers, regional cloud providers, and AI start-ups. Many of these customers don't want to design chips themselves; they want a proven, end-to-end platform that includes compute, networking, and software, and it's clearly opening up a massive opportunity for Nvidia to extend its leadership.

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Wall Street is still underestimating Nvidia's growth Nvidia stock trades at about 15 times next year's earnings estimate, which is a bargain for the leading AI chip supplier growing this quickly.

A big driver of next year's growth will be Nvidia's new Vera Rubin computing platform, which began shipping in early August. It is ramping up quickly and is expected to total 20% of Nvidia's data center revenue in fiscal Q3.

Even with its gross margin under pressure from higher memory prices, the setup for investors looks very attractive. Analysts currently project $411 billion in revenue for fiscal 2027, followed by a 65% jump to $678 billion in fiscal 2028.

However, Nvidia's guidance implies about $700 billion in revenue next year. This means Nvidia's fiscal 2027 earnings may also come in ahead of Wall Street estimates, implying the stock is even cheaper than its 15x forward (one-year) earnings multiple.

The risk is that data center spending may not rise in a straight line, with constraints like power availability and potential regulation that could slow the build-out and demand for Nvidia's chips. But Nvidia still looks like a business that can be meaningfully larger years from now -- and that's why the stock remains compelling.

Founder, CEO, and tireless Nvidia hype man Jensen Huang told attendees at the Goldman Sachs Communacopia + Technology conference on Thursday why his company’s AI domination — and revenues — will continue its record-breaking growth streak through the end of next year.

He can see the future.

There’s been endless hand-wringing over whether Nvidia’s party will end as it faces increasing competition for GPUs and AI chips from all directions: the hyperscalers (Amazon, Microsoft, and Google, each building their own) and the AI labs (Anthropic and OpenAI, which are building their own) as well as from newly public competitor Cerebras and startups such as Etched.

“Most people think Nvidia builds a chip. I mean, you need airplanes to ship what we build,” Huang said, adding that the company continues to battle a perception from its early days. Nvidia invented the GPU, which back then were largely sold to consumers to improve PC gaming. “One GPU now is not $399. It’s $8.5 million dollars. That’s one GPU, all connected with NVLink, 2 million parts, right? 250,000 kilowatts. That’s a GPU, and we ship thousands of them.”

He added that orders for just one product, a computer system that combines 36 Grace CPUs with 72 Blackwell GPUs is currently experiencing 27% month-to-month sales growth.

Huang didn’t limit his bullish view to current sales though. He took the opportunity to reiterate Nvidia’s revenue outlook for next year — guidance the company provided last month when it reported yet another record-breaking revenue quarter. That’s when he first said revenue could grow by 70% next year.

“I think we could grow 70% year over year. We’re confident about that,” Huang said again on Thursday. Analysts expect the company to end its current fiscal year at about $400 billion in revenue. So 70% growth would mean around $680 billion next year.

Huang explained why he’s confident: his company is so embedded in every area of AI that he believes he can see the future.

“Nvidia runs every model. Every single lab can use us,” the CEO said, mentioning that this includes models from Anthropic, OpenAI, and Google, as well as open-weight offerings. “We are a foundational platform of the AI ecosystem, foundational platform of the AI industry.”

Nvidia’s fingers extend all the way from its suppliers, such as memory chip makers, to data center projects and startups.

“We’re tracking every single gigawatt of land, power, shell around the world. Literally everything on the planet,” he said. (“Shell” refers to the shell of a data center building before it is outfitted with computers).

“I mean, just think about all my partners. How many neoclouds are reporting back to us? How many OEMs are reporting back to us? How many clouds are reporting back to us? How many AI native companies are reporting back to us? We’re working with everybody, and so we kind of know where everything is,” he said.

That comment led to inevitable questions about Nvidia’s so-called circular deals, in which it invests in companies that turn around and buy its wares. Such schemes famously contributed to the downfall of a previous generation of internet build-out suppliers like Lucent Technologies.

Huang had a simple, albeit cheeky, response. “Well, it’s not circular because we put a little bit of money in, and a lot of money comes back.” He went on to joke, “I look at the spreadsheet, we put in $1 and $100 comes back in. Is that circular? If that is, let’s do more of that.”

Quips aside, he insisted that before any of these companies gets an investment, Nvidia makes sure it has real contracts generating revenue from customers. All told, he said he’s seen $100 billion worth of such contracts, “I’m not taking any risks. … I need a sure thing.”

Time will tell whether Nvidia’s stronghold on AI can really persist long term. If there’s one golden rule of the tech industry, it’s that all big things get disrupted. Right now, even Huang admits that much of AI’s growth is coming from AI native startups that are raising vast sums and spending most of that cash on their own AI use. As the AI industry matures, expect companies to become more efficient in how they use infrastructure and tokens.

But for now, Nvidia has its finger in every pie and sees another year of plenty in its future.

When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.

On June 8, Nvidia (NVDA -2.25%) CEO Jensen Huang called the sharp technology sector sell-off that occurred in early June a buying opportunity. Speaking to reporters in Seoul that day, Huang said the artificial intelligence (AI) infrastructure build-out was still in its early stages. So, investors should be "very happy because now you can buy at a discount."

His call seems to have been spot on so far. From its opening price on June 8 to the close of trading on Sept. 4, Nvidia's stock gained about 9.6%, compared with a roughly 3.7% gain for the S&P 500 (^GSPC -0.56%) over the same period.

However, investors should note that Nvidia's shares did not immediately move higher after Huang's comments.

Image source: Getty Images.

Huang was not identifying the bottom of the slump On June 29, Nvidia fell to an intraday low of $189.80, almost 10% below its June 8 opening price. A $10,000 investment made at the June 8 open would have at that point been worth about $9,030.

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The stock then spent several weeks recovering. However, its biggest move came after Nvidia reported results for its fiscal 2027 second quarter, which ended July 26. That report came out after the market closed on Aug. 26, and shares jumped 8.7% on Aug. 27. On Sept. 4, Nvidia closed at $230.36.

Hence, most of the gains made by the stock since Huang's June comments came only after Nvidia gave investors fresh evidence that its AI growth story remained strong.

Nvidia's results strengthened Huang's argument Nvidia's revenue surged 106% year over year to $96.2 billion in its fiscal second quarter, while data center revenue jumped 117% to $89 billion. Management also guided for third-quarter revenue of $108 billion, plus or minus 2%.

Management's preliminary expectation is for revenue to grow by about 70% in its fiscal 2028. Wall Street's previous consensus expectation was for revenue growth of roughly 44% for fiscal 2028. Management also said this outlook is based on its production being supply-constrained, suggesting that demand remains stronger than the company's ability to supply AI computing systems.

These results have strengthened Huang's June argument. Nvidia's fiscal Q2 results and outlook now provide significantly more evidence that AI infrastructure spending still has room to grow.

Is Nvidia still available at a discount? Nvidia's valuation still seems reasonable considering its expected growth. The stock is trading at roughly 24.7 times its expected fiscal 2027 earnings of $9.31 per share. The multiple falls to about 14.9 times based on the fiscal 2028 earnings estimate of $15.46 per share.

There are risks, however. Nvidia expects its gross margin to slip from the 75% it was last quarter to roughly 71% to 72% in the fourth quarter as the memory shortage and higher component prices raise its costs. The company's fiscal third-quarter guidance also assumes that it will sell no data center chips to customers in China.

Huang's June call has proven fairly accurate so far. While he did not identify the exact bottom of the dip in Nvidia's stock, it has since outperformed the broader market. The company's latest results provided much stronger support for the fundamental argument behind the CEO's call.

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Nvidia CEO Jensen Huang. Sean Rayford/Getty Images If coding was one of AI's first big blockbuster apps, Nvidia CEO Jensen Huang predicts cybersecurity will be the next.

Speaking at a Goldman Sachs conference on Thursday, Huang said that companies will increasingly use AI to find software vulnerabilities and defend against cyberattacks.

Huang's prediction comes as AI safety has become a hot debate in Silicon Valley. Researchers at companies like Anthropic have warned that increasingly powerful AI could pose existential threats if left unchecked — including by enabling more sophisticated cyberattacks.

Huang wasn't asked about the debate or weighing in on it. Instead, he said that increasingly capable AI will make cybersecurity one of the biggest business opportunities for the technology industry.

Huang said that cybersecurity is a natural extension of coding.

"A derivative of coding is, of course, bug finding," he said. "And a derivative of that, which is a very large market, is called cybersecurity."

Unlike coding assistants that respond to prompts, Huang said AI-powered cybersecurity systems run continuously — meaning companies will pay to keep them going around the clock.

The comments come as Nvidia has been pushing deeper into cybersecurity. The company has recently announced partnerships with CrowdStrike, Cisco, and Palantir to build AI-powered cybersecurity tools.

Other AI giants are also betting on cybersecurity. OpenAI chief financial officer Sarah Friar said Tuesday at the conference that the company sees cybersecurity as a major "commercial opportunity."

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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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INTC buy

Buy Intel (INTC). While it fell ~6% on the same macro tape, the news is more about regulation and financing pressure than a fundamental AI demand collapse. Intel is a cleaner “value + turnaround” expression that can rebound faster when rates stabilize and the market rotates away from the most scrutinized AI winners. Key risk: AI capex and customer demand keep shifting to Nvidia/others, and Intel’s execution misses (process/AI product delays) so the bounce never comes.

Key Risk: Intel keeps losing AI compute share because its product roadmap and execution disappoint.

NVDA sell

Sell Nvidia (NVDA). The stock is getting hit from three angles at once: oil-driven risk-off (WTI/Brent >$100/$105), 10Y yields >4.9% pressuring high-beta tech, and DOJ antitrust scrutiny around the Nvidia–Groq structure. This combo can keep multiple compression going even if AI demand stays intact. Key risk: DOJ escalates to a forced remedy (deal unwind, licensing restrictions, or major penalties) that directly impairs Nvidia’s AI platform growth and revenue visibility.

Key Risk: DOJ forces a remedy that blocks or materially limits Nvidia’s Groq-related technology access and AI expansion.

Nvidia NVDA stock fell more than 2% on Thursday, putting the shares on track to extend a two-day losing streak.

The move comes as higher oil prices and rising Treasury yields and fresh regulatory scrutiny weighed on the AI trade.

The broader market also moved lower. The Dow Jones Industrial Average fell 258 points, or 0.5%, while the S&P 500 declined 0.5% and the Nasdaq Composite slipped 0.4%.

US West Texas Intermediate crude futures for October delivery climbed above $100 a barrel, while Brent crude for November delivery jumped above $105 as the war between the US and Iran entered its seventh month.

The oil surge pushed the 10-year Treasury yield above 4.9%, its highest level since November 2023, adding further pressure to high-beta technology and semiconductor stocks.

Intel fell about 6%, while Micron Technology dropped roughly 4%.

Nvidia’s decline also comes as the US Justice Department examines whether the company structured its acquisition-related agreement with AI chip startup Groq to avoid antitrust scrutiny, according to Bloomberg.

The investigation centers on a deal announced in December under which Nvidia obtained rights to Groq’s technology.

Groq CEO Jonathan Ross and Chief Operating Officer Sunny Madra subsequently joined Nvidia, while Groq remained an independent company.

US lawmakers later characterized the arrangement as a takeover that limited competition.

The DOJ is examining licensing-and-hiring arrangements more broadly as regulators scrutinize how a small number of companies are consolidating influence over the AI industry.

Companies including Amazon, Microsoft and Alphabet’s Google have also faced scrutiny over arrangements that provide access to technology and engineering talent without necessarily triggering conventional merger review, according to the report.

Regulatory questioning of the Nvidia-Groq arrangement began earlier this year, as per the report.

The probe, previously reported by The New York Times, could ultimately end without enforcement action.

Groq did not submit its licensing agreement with Nvidia for antitrust review.

The regulatory scrutiny comes as Nvidia continues expanding beyond its core semiconductor business.

Nvidia and Palantir Technologies announced a new AI collaboration on Wednesday focused on what they describe as “sovereign AI” for critical supply chains.

The system will initially operate within Nvidia’s own manufacturing and logistics network before being extended to other industries.

The collaboration combines Nvidia’s Nemotron open models with Palantir’s Foundry and AIP platforms and uses Palantir’s Ontology system to provide real-time visibility into supply-chain constraints.

The companies said the system will also help codify operational knowledge and accelerate decision-making.

Companies using the system will retain control of their own data and will not need to route it through a shared commercial AI model.

The partnership highlights the broader strategy Nvidia is pursuing as it seeks to capture value from the expansion of AI infrastructure and applications.

Nvidia is embracing the rise of custom AI chips as demand shifts toward specialized systems built for inference. d-Matrix CEO Sid Sheth discusses the startup's new partnership with Nvidia, which will integrate its inference-focused XPUs with Nvidia GPUs using NVLink Fusion, and why inference is emerging as the next major battleground in AI compute.

Nvidia (NVDA -2.04%) has played a pioneering role in the field of artificial intelligence (AI) thanks to its graphics processing units (GPUs), whose massive parallel computing power has enabled the training of popular large language models (LLMs).

Importantly, Nvidia has maintained its dominance in the AI chip market, as evidenced by its recent results that showed a significant jump in revenue and earnings. The good news for Nvidia investors is that it is pulling the right strings to ensure that it continues to dominate this lucrative market. The company's entry into the server central processing unit (CPU) market is one such move, which has put this market's heavyweights -- Intel and Advanced Micro Devices -- on the defensive.

Image source: Nvidia.

AMD and Intel have a big reason to be worried right now Server CPUs are in high demand right now, primarily due to the shift toward agentic AI and inference workloads in data centers. AMD notes that the server CPU market's revenue could increase at an annual rate of 50% through 2030, creating a $220 billion revenue opportunity by the end of the decade.

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AMD and Intel have traditionally dominated the server CPU market. They manufacture chips based on the x86 architecture. However, the growing demand for agentic AI and inference workloads has triggered a shift toward Arm-based chips owing to their low power consumption and higher efficiency. Nvidia is capitalizing on this trend.

The AI bellwether's Vera server CPU is designed on Arm's architecture. The important thing to note is that Nvidia sees healthy demand for its stand-alone Vera server CPU. CFO Colette Kress remarked on Nvidia's August earnings call:

Today, we are in full production of our next-generation Vera CPU. As a stand-alone product, Vera expands our TAM even further. Vera completes agentic task, 1.8x faster on the spec benchmark and provides 5x the bandwidth per watt than any other data center CPU.

Kress added that the Vera CPU will be deployed by "every major hyperscaler, neocloud, AI lab, and system OEM." The company is already shipping this product to key customers and expects to sell $20 billion worth of Vera CPUs this year. What's more, Nvidia expects its Vera CPU revenue to double next year.

So, Nvidia's chip poses a clear threat to AMD and Intel, especially as the share of x86 server processors shrinks. Tom's Hardware noted in June that Arm-based servers account for 45% of the data center market's revenue share. Nvidia's prediction that its server CPU revenue will double next year suggests that Arm-based processors are on track to capture a larger share of this market, which doesn't bode well for Intel and AMD.

Nvidia's continued AI chip dominance and valuation should send the stock soaring Nvidia stock has jumped just 21% in 2026, while AMD and Intel have clocked solid triple-digit gains. However, that could change in the future due to Nvidia's stronger growth and improving prospects.

Data by YCharts

Also, Nvidia is the better AI stock to buy in this cohort owing to its significantly cheaper valuation. It has a price-to-earnings ratio of 29, lower than AMD's reading of 122 and Intel's earnings multiple of 88.

Nvidia's significantly lower valuation suggests it has greater upside potential than Intel and AMD. Moreover, Nvidia's move into the server CPU market could stifle AMD and Intel's growth, giving investors another terrific reason to buy Nvidia stock before it steps on the gas.

Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Arm Holdings, Intel, and Nvidia. The Motley Fool has a disclosure policy.

The planned buildout could exceed the country's entire existing computing capacity. Summary

Nvidia and Australian partners are targeting up to 2 GW of AI capacity

Nvidia Corp. (NVDA, Financials), the semiconductor company best known for its artificial intelligence chips, is planning an Australian expansion that could reshape the country's data center market.

The company is working with Firmus, CDC, NEXTDC and AirTrunk to build as much as 2 gigawatts of AI computing capacity by 2027. That number stands out.

Australia currently has about 1.6 GW of computing capacity, according to Data Centres Australia research cited by Reuters. Nvidia's proposed buildout could therefore exceed the country's entire existing load.

The facilities will use Nvidia's DSX platform and are intended to support growing demand for AI models, applications and autonomous agents.

NEXTDC Ltd. (NXT, Financials), the Australian data center operator, is among the public companies positioned to participate in the expansion.

But more computing also means more pressure on electricity grids and water supplies. Australia has been attracting large data center investments while regulators and communities increasingly question their environmental footprint.

For investors, the next test is whether Australia can add power infrastructure quickly enough to support Nvidia's ambitions. AI demand may be strong, but electricity availability could decide how much of the planned 2 GW actually gets built.

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

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Nvidia Stock Under Pressure as DOJ Probes Groq Deal Structure Summary

The DOJ probe adds fresh regulatory pressure around Nvidia’s deal for access to Groq’s AI-chip technology while the startup remains independent

Nvidia NVDA shares dipped about 1% early Thursday as a U.S. Justice Department review examined whether its $20 billion arrangement with AI chip startup Groq was designed to limit antitrust scrutiny, Bloomberg reported, citing people familiar with the matter.

The inquiry focuses on a transaction unveiled in December that gave Nvidia access to Groq's technology while allowing the startup to continue operating separately. Groq Chief Executive Jonathan Ross and Chief Operating Officer Sunny Madra subsequently moved to Nvidia.

The structure has attracted attention from U.S. lawmakers, who have questioned whether the arrangement amounts to an acquisition that could reduce competition in the artificial-intelligence chip industry.

The Justice Department began examining the transaction earlier this year as part of a broader antitrust review, according to the report. The licensing arrangement was also previously reported by The New York Times, and the investigation could conclude without any enforcement action.

Nvidia has defended the transaction, saying the agreement allows it to provide Groq technology across its ecosystem while leaving Groq's cloud operation independently funded and operating.

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

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Jim Cramer has spent years cheerleading AI infrastructure stocks, so when he goes on air demanding a kill switch and calling the industry's casual talk of mass casualties unacceptable, investors need to understand what changed and what he is still…

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One of the most reliably bullish AI voices on television spent a Mad Money segment asking the industry to slow itself down. That is the surprising part. Jim Cramer is still telling viewers to own the AI infrastructure trade. He is also now saying, on air and on social media, that the people building the technology are describing catastrophic outcomes in a way he finds unacceptable.

What Cramer Said on Air On the CNBC Sept. 9 broadcast, Cramer told viewers, “The people building AI earnestly believe that it could kill us all by the end of the decade. This is not a marketing stunt.” He then made a point of separating that warning from his own market posture, saying, “I’ve never been a doomsayer about AI. I think we’ll tame it.”

His problem is with the register of the conversation. Cramer said, “These days of ignoring this stuff, they’ve come and gone. The casual nature of this mass casualty discussion is way too bloodless.” He closed the editorial with an ask aimed at both labs and regulators: “We have to figure out a way to get our heads out of the cubby holes, even if it’s only to slow things down until we have more of an alignment,” according to CNBC.

Earlier that same day, Cramer had already posted the blunter version on X: “The world should be upset about these warnings. We need a kill switch of sorts.” The escalation from a morning social post to a full televised editorial is telling. He isn’t speaking off the cuff.

What Set Him Off The trigger, as 24/7 Wall St. reported on Sept. 9, was a pair of statements out of Anthropic. Safety researcher Evan Hubinger publicly attached double-digit odds to AI causing mass human casualties this decade, and researcher Jacob Coxon resigned with an accusation that the frontier labs are gambling with people’s lives. Anthropic itself remains private. As of Sept. 9, the company has no Form S-1 on file, so none of this is a tradable IPO event for retail investors.

What He Is Still Telling Viewers to Own Cramer’s regulatory ask is a separate conversation from his stock calls, and he was explicit about that. The infrastructure trade he has championed is anchored by two names, though the buildout also runs through the power, cooling, and networking suppliers (which we broke out in a free report on seven AI infrastructure stocks that aren’t chipmakers).

Nvidia (NASDAQ:NVDA | NVDA Price Prediction) carries a market capitalization of roughly $5.3 trillion and just posted fiscal Q2 revenue of $96.22 billion, up 105.8% year over year, with data center revenue of $89.02 billion. Guidance for Q3 came in at $108 billion, plus or minus 2%, per the company’s Aug. 26 8-K filing. The stock is up 15.5% year to date and 23.0% over the past year.

AMD (NASDAQ:AMD) has a market cap around $826.3 billion. Q2 2026 revenue hit $11.54 billion, up 50.1%, with data center revenue of $6.72 billion more than doubling year over year. Anthropic itself, the source of the researcher warnings that lit Cramer up, has committed to deploying up to 2 gigawatts of MI450 GPUs in AMD Helios racks. AMD shares are up 126.5% year to date and 217.3% over the past year.

Bottom Line for Investors Cramer’s position, taken together, is straightforward: he wants a kill switch and slower deployment at the policy level, yet he still wants investors long the picks-and-shovels vendors underneath the AI buildout. Readers should not confuse the safety editorial with a downgrade of the trade. Nvidia CEO Jensen Huang framed investing in frontier labs as “a once in a generation opportunity,” and AMD CEO Lisa Su told analysts customers are in “the early stages of a multi-year AI adoption cycle.” Cramer’s argument is that both things can be true at once.

Contact [email protected] for any questions or corrections.

Nvidia (NVDA -0.91%) had a sluggish start to the year, but its rally ahead of earnings gained momentum when the company reported solid results. It's felt long overdue, but the chipmaker is once again outpacing the S&P 500 with a 23% year-to-date return.

Investors should expect Nvidia to continue beating the S&P 500, as it has done for many years. Strong financial results and the continuation of the artificial intelligence supercycle are two major reasons why.

Image source: Getty Images.

Revenue growth continues to accelerate It's very hard to find a company that generates substantial revenue and can still deliver accelerating growth rates. The company earned $96.2 billion in its fiscal 2027 second quarter, representing a 106% year-over-year growth rate. Based on guidance, the chipmaker will soon bring in more than $100 billion per quarter.

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All of those earnings also come with impressive margins. Net income more than doubled year over year, reaching $59.7 billion in the process. Nvidia has consistently shown that the AI supercycle is gaining momentum. People have called it a bubble for a while, but with Nvidia anticipating 70% year-over-year revenue growth in its fiscal 2028, the bubble concerns have become quiet murmurs.

Even the company's valuation is solid. It trades at a 25.4 forward P/E ratio and has a PEG ratio below 0.60. Nvidia's fundamentals are improving at a faster rate than its stock price, suggesting its valuation could become even more attractive when it reports earnings again later in the year.

Nvidia is the clear leader Nvidia earns higher quarterly profits than most chipmakers generate in quarterly revenue. That gives investors an idea of how much market share Nvidia has over the competition, and as the AI boom accelerates, Nvidia is well-positioned to increase its lead.

Its Vera Rubin platform is about to show up in future results, and it's not just hyperscalers driving the demand.

"This time last year, one lab alone was driving the buildout; today, we have a golden age of new AI labs and start-ups, multiple frontier labs scaling in parallel," Jensen Huang said in the Q2 FY27 press release.

Huang also touted the arrival of physical AI when describing Nvidia's opportunity. While it's not an exclusive opportunity for Nvidia, the AI chipmaker is better positioned than any other company. Its GPUs are the technological bedrock, regardless of which companies figure out physical AI the fastest.

Nvidia's position, strengthening fundamentals, and reasonable valuation make it an easy pick that could outperform the S&P 500 over an extended period. Nvidia's sluggish start was a fluke that investors have rightly called out, as evidenced by the recent accumulation.

ATLANTA--(BUSINESS WIRE)---- $QMLS #QumulusAI--QumulusAI (Nasdaq: QMLS), a neocloud infrastructure provider purpose-built for the AI computing era, today announced it has completed deployment of NVIDIA Blackwell B300 GPU capacity at its Philadelphia colocation site, reaching full customer handoff and activating the $18 million, two-year take-or-pay agreement QumulusAI announced July 22, 2026, with a GPU cloud marketplace currently serving AI teams in more than 100 regions worldwide. The deployment represents the fu.

Nvidia (NVDA -0.91%) and Broadcom (AVGO -1.13%) reported very positive results in their most recent earnings statements. Not only are they seeing very strong demand for their artificial intelligence (AI) chips, but they both expect that growth to continue for the foreseeable future.

Indeed, demand for semiconductors appears to have a very long runway ahead, as a growing share of hyperscalers' budgets shifts toward buying more chips to outfit new data centers and replace old servers.

And while both of the biggest AI chipmakers have the potential to grow very quickly through the end of the decade, a smaller silicon slinger could grow even faster as its revenue accelerates during the next few years.

Image source: Getty Images.

The AI giants are getting even bigger As mentioned, both Nvidia and Broadcom expect to keep producing very strong revenue growth.

Nvidia more than doubled its top line last quarter, producing a whopping $96 billion in revenue. Chief Financial Officer Colette Kress said she expects the company's annual revenue to increase by 70% next year, noting that the outlook is the result of limited chip supply. Its biggest bottleneck is memory, for which it made a significant up-front purchase commitment last quarter to facilitate supply expansion.

Likewise, Broadcom reported revenue growth of 86% last quarter, and management expects that growth to accelerate to 93% next quarter. Its AI chips are driving the gains, with AI-related revenue up 221% last quarter. Growing demand for custom silicon solutions instead of Nvidia graphics processing units (GPUs) is helping Broadcom's XPU processor business. Of course, Nvidia doesn't seem to be suffering too much.

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But another custom artificial intelligence chipmaker could end up growing faster during the next few years. Marvell Technology (MRVL +4.26%) expects a significant ramp-up in its XPU business along with related AI chips. While management is currently forecasting revenue growth of 45% for the current year, it expects that to accelerate to 50% next year and grow even faster in fiscal 2029 (which falls primarily in the 2028 calendar year).

With just $12 billion in expected revenue for fiscal 2027, the company is significantly smaller than Nvidia ($411 billion in expected revenue) or Broadcom ($106 billion in expected revenue). That means a few new deals with big tech companies can have a huge impact on its growth. And it's showing excellent progress in doing just that. As a result, I expect it to produce better overall average revenue growth through the end of the decade than either Broadcom or Nvidia.

Some big new deals in the pipeline During Marvell's second-quarter earnings call, Chief Executive Officer Matt Murphy told analysts the custom AI chip business will accelerate in the back half of the year. "We remain confident that this business will more than double year over year in fiscal 2028 and accelerate significantly in fiscal 2029," he added.

The primary near-term driver is likely its deal with Microsoft (MSFT -0.47%), which includes designing the company's Maia line of chips. Microsoft is reportedly planning a big step up with Maia 300, using it for more of its internal AI workload. Microsoft is reportedly looking to fill an order of 300,000 chips in 2027.

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Alphabet (GOOG -2.09%) (GOOGL -2.28%) presents another big potential customer for Marvell. Marvell signed a deal with Google to expand its existing partnership to include a range of products, including "AI inference accelerators, storage controllers, network interface controllers, memory interface controllers, and near-memory compute." The deal also provides warrants to Alphabet to purchase shares of Marvell based on revenue targets totaling up to $120 billion through fiscal 2033.

The company is in active discussions with all the hyperscalers for custom chips, and what it calls XPU attach, chips that help make custom silicon chips even more efficient at scale (network interfaces, scale-up fabrics, and co-processors). With the expansive Alphabet deal and a growing relationship with Microsoft, it could find more of its chips in big data centers over the next few years.

The stock trades at a premium to both Nvidia and Broadcom. That reflects the expectations for revenue to accelerate and earnings to follow suit. Analysts on average expect earnings per share (EPS) to climb from $4.20 this year to $6.72 next year to $10.28 in 2029. The forward price-to-earnings (P/E) ratio of 53 for the stock reflects those expectations for accelerating earnings growth. And that EPS acceleration can continue through the end of the decade, making it an attractive opportunity for investors.

It would be an understatement to say that Wall Street is bullish on Nvidia (NVDA -0.91%).

The artificial intelligence (AI) chip manufacturer announced its second-quarter results on Aug. 26, and they were stunning. Revenue of $96.2 billion was more than double that of the same quarter a year ago. Diluted earnings per share of $2.46 rose 128% from last year and were $0.12 higher than the average analyst estimate.

So I just checked the latest data on price targets, which are Wall Street analysts' official predictions of where the stock will be in 12 to 18 months, based on historical and projected earnings. Suffice it to say that, on average, analysts see Nvidia's stock rising, and fast. 

Image source: Getty Images.

The average price target for Nvidia among Wall Street analysts is $327, which is about 42% above the current price of $230. Such an increase in the share price would not be unprecedented for this stock, of course. It's up 34% over the past 52 weeks and more than 900% over the past five years. That rapid rise has brought the company's market cap to a whopping $5.56 trillion, making it the largest publicly traded company in the world by market cap.

Analysts' price targets for Nvidia vary widely, ranging from $220 (Argus Research clearly believes the shares will lose value) to $515, the target set by Raymond James. Most analysts put the stock's forward price somewhere between $300 and $350.

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The vast majority of analysts recommend a buy or strong buy Of 60 analysts, 48 currently have a buy recommendation on the stock, and another nine have a strong buy. Deutsche Bank recommends a hold.

In recent days -- soon after the company's Q2 results came out -- J.P. Morgan analyst Harlan Sur raised his target for the stock from $280 to $320. If the average price target proves correct, the chipmaker's market cap would soar to nearly $8 trillion.

Can it go that high? Well, Nvidia's management sees revenue rising to $108 billion in the third quarter, and expects full-year revenue to soar 70% over last year, which is much higher than the 44% growth consensus projection from analysts.

And one last data point: Revenue from data centers came in at $89 million for the second quarter, up 117% from a year ago. That suggests the massive AI infrastructure build-out is already generating revenue and is not just a hopeful promise for the future. That might reassure investors that this stock has strong upside potential.

JPMorgan Chase is an advertising partner of Motley Fool Money. Matthew Benjamin has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase and Nvidia. The Motley Fool has a disclosure policy.

News Summary:

NVIDIA is collaborating with Australian NVIDIA Cloud Partners and AI infrastructure partners including Firmus, Sharon AI, IREN, ResetData, Megaport, CDC, NEXTDC and AirTrunk to expand land, power and shell capacity designed to host multiple generations of NVIDIA DSX compute infrastructure.Built on the NVIDIA DSX platform, these full-stack AI factories provide high-performance AI compute for Australian startups, universities, researchers, enterprises, developers and AI-native companies.Expanded access to NVIDIA accelerated computing and NVIDIA Nemotron open models will enable organizations including Heidi and Atlassian to build regional AI models, applications and agents for industries nationwide.
MELBOURNE, Australia, Sept. 09, 2026 (GLOBE NEWSWIRE) -- NVIDIA today announced that it is collaborating with a growing ecosystem of Australian NVIDIA Cloud Partners (NCPs) and AI infrastructure partners to expand land, power and shell capacity designed to host multiple generations of NVIDIA DSX™ AI factories, supporting the nation’s growing demand for AI compute — with up to a 2-gigawatt buildout by 2027.

The participating providers will operate the AI factories, with NVIDIA delivering the DSX platform, accelerated computing, networking, software and ecosystem support.

“AI factories turn energy into intelligence — the essential resource of the AI economy,” said Raj Mirpuri, vice president of global AI clouds and infrastructure ecosystem at NVIDIA. “NVIDIA DSX is a full-stack platform compatible with the CUDA ecosystem and enhanced through software over the life of the infrastructure, making AI factories more productive, fungible and durable — and a new investable asset class. Through our partnerships with Australian NCPs, this infrastructure can support multiple generations of NVIDIA compute and expand local access to accelerated computing and NVIDIA Nemotron open models, helping Australian innovators build AI at home.”

Growing AI adoption across industries is increasing demand for high-performance computing. Expanding capacity in Australia will enable local innovators to develop models, applications and agents while supporting additional power generation projects to support regional and global demand for AI compute.

NVIDIA DSX is a full-stack AI factory platform spanning facilities infrastructure, computing, networking, software and reference designs. Compatible with the NVIDIA CUDA® ecosystem and enhanced through software over the life of infrastructure, DSX helps operators serve a broad range of workloads and customers, improve performance and utilization, and extend the useful life of their assets — strengthening productivity, fungibility, durability, rentability and long-term economics.

This expanded capacity will give Australian innovators greater access to accelerated computing and NVIDIA Nemotron™ open models to develop locally relevant models, applications and agents, while supporting regional and global demand for AI compute.

Australia’s established sustainable energy and digital infrastructure, deep technology talent and reputation as a trusted global economic partner provide a strong foundation for startups, universities, researchers, enterprises, developers and AI-native companies to train, deploy and scale AI.

Building Australia’s AI Factory Infrastructure
Across Australia, NCPs and AI infrastructure partners Firmus, Sharon AI, IREN, Megaport, ResetData, CDC, NEXTDC and AirTrunk are already investing in NVIDIA DSX AI factories to deliver high-performance AI compute to organizations nationwide.

Firmus is expanding its Project Southgate initiative, developing NVIDIA-powered AI factories designed to support hyperscale and AI-native demand across Australia and Asia-Pacific.

“Project Southgate represents a tangible commitment to building Australia’s AI future,” said Oliver Curtis, cofounder and co-CEO of Firmus. “Together with NVIDIA, we are developing AI factories that will give Australian businesses, researchers and innovators access to world-class computing capacity at home, while positioning Australia to meet growing AI demand across Asia-Pacific.”

Sharon AI is deploying up to 68,000 NVIDIA GPUs connected with NVIDIA Quantum InfiniBand and NVIDIA Spectrum-X™ Ethernet networking, using the NVIDIA DSX platform to support startups, enterprises and research organizations.

“Australia has the energy, connectivity and ambition to lead in AI. That potential only becomes real capability when organizations can access world-class compute without compromising on security or sovereignty,” said James Manning, cofounder and CEO of Sharon AI. “By building on NVIDIA’s DSX platform, Sharon AI is equipped to bring gigawatt-scale AI factories to Australian enterprises, researchers, government and AI natives. With the trust and reliability needed to build, train and deploy AI at scale, Australia can turn its natural advantages into a genuine national AI capability.”

IREN is partnering with NVIDIA to accelerate deployment of large-scale AI factories by combining NVIDIA’s DSX AI factory architecture with IREN’s expertise across power, land, data centers, GPU deployment and infrastructure operations.

“Building AI infrastructure at scale requires integrating every layer: data centers, compute and software,” said Daniel Roberts, cofounder and co-CEO of IREN. “Combining IREN’s vertically integrated platform with the NVIDIA DSX AI factory reference architecture provides a repeatable blueprint to bring capacity online at scale. We are applying that blueprint across our development portfolio, bringing IREN’s proven international delivery and operating experience to our 800-megawatt Bundey campus in South Australia.”

Megaport is expanding access to NVIDIA accelerated computing through its wholly owned subsidiary, Latitude.sh, to support the inference needs of leading AI enterprises. Combined with Megaport’s global software-defined network, Latitude.sh compute platform brings AI processing closer to users, reducing latency and improving responsiveness.

“Megaport is proud to support Australia’s growing AI infrastructure ecosystem as an Australian-founded global infrastructure provider,” said Michael Reid, CEO of Megaport. “By investing in NVIDIA AI factories and expanding access to high-performance AI infrastructure, we help Australian organisations build and deploy AI locally, and scale globally through Megaport’s worldwide platform.”

ResetData is building AI infrastructure in Australia, providing NVIDIA accelerated computing through its AI cloud platform for enterprises, government and research customers that require high-performance compute and Australian data residency.

“At ResetData, we’ve proven that when Australian businesses and researchers like the team at ProCan at the Children’s Medical Research Institute have access to high-performance compute, they can deliver industry-leading results,” said Marcel Zalloua, joint CEO of ResetData. “That is why we are proud to partner with NVIDIA and develop the sovereign, purpose-built infrastructure solutions that will accelerate Australian expertise and empower local businesses with the tools needed to compete and innovate on the global stage.”

CDC has developed AI-ready data center infrastructure across Australia and New Zealand to support high-density AI and high-performance computing workloads. Its facilities feature advanced cooling technologies, including direct liquid-to-chip cooling, designed to support the deployment of NVIDIA accelerated computing infrastructure at scale.

“CDC operates more than 550 megawatts of capacity across Australia and New Zealand, with a further 800 megawatts under construction and additional growth planned to support world-leading, high-density workloads for critical infrastructure,” said Greg Boorer, founder and CEO of CDC. “Our facilities use 100% renewable electricity and incorporate pioneering zero water advanced cooling technologies certified for NVIDIA accelerated computing infrastructure.”

NEXTDC has developed AI-ready data center infrastructure designed to support high-density AI factories, providing the power, cooling, connectivity and physical infrastructure required to deploy increasingly compute-intensive AI systems.

“NEXTDC operates and continues to develop liquid-cooled, high-density infrastructure, including AI factories built on NVIDIA DSX and interconnected with the world’s leading cloud platforms,” said David Dzienciol, chief customer and commercial officer at NEXTDC.

AirTrunk is expanding AI-ready powered shells across the region, including direct-to-chip liquid-cooling infrastructure designed to support high-density AI workloads.

“AI is reshaping hyperscale infrastructure in Australia, driving new approaches to location, capacity, cooling, power and connectivity,” said Damien Spillane, chief customer and innovation officer of AirTrunk. “AirTrunk is innovating to meet this demand while creating skilled expertise, capability and economic value in Australia.”

From AI Infrastructure to AI Innovation
Greater access to accelerated computing is enabling Australia’s developers, AI-native companies and enterprises to build models, applications and agents tailored to local industries and communities.

Organizations including Heidi and Atlassian are using NVIDIA Nemotron open models, datasets and tools to build and customize AI across language, reasoning, speech and multimodal applications.

Heidi combines NVIDIA Nemotron models with Heidi’s specialized clinical knowledge to redefine voice-driven AI to establish a new benchmark for healthcare excellence.

“NVIDIA Nemotron 3 Ultra gives us the flexibility to build and post-train models for the real complexity of healthcare,” said Yu Liu, cofounder and chief technology officer of Heidi. “Combining Nemotron with Heidi’s clinical training and fine-tuning capabilities helps us reason across patient histories, clinical context and guidelines at scale, turning that information into actionable insights while preserving the trust and privacy patients expect.”

Atlassian is advancing Rovo’s semantic search with NVIDIA AI to make enterprise search more intelligent, context-aware and capable of surfacing more relevant insights across complex data and workflows.

“NVIDIA’s accelerated computing infrastructure and open model ecosystem are foundational to how Atlassian builds and delivers AI,” said Guihong Cao, head of engineering for Rovo + AI at Atlassian. “From supervised fine-tuning and reinforcement learning to powering intelligent experiences in Rovo, NVIDIA provides the performance, economics and flexibility we need to innovate responsibly at the scale our customers expect. As Australia’s AI infrastructure continues to grow, it will play an increasingly important role in that journey, and we’re excited to keep pushing the boundaries of what’s possible together.”

Together, these efforts connect AI infrastructure with the open models and software that turn computing capacity into applications. By expanding access across the full AI stack, NVIDIA and Australia’s AI ecosystem are enabling innovators across research, industry and the public sector to build and scale AI locally and bring Australian innovation to the world.

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

For further information, contact:
Randa Hinton
Corporate Communications
NVIDIA Corporation
[email protected]  

Certain statements in this press release including, but not limited to, statements as to: AI infrastructure being able to serve every industry and create lasting value, making it a new investable asset class; expectations with respect to demand for high-performance computing and related trends and drivers; expectations with respect to expanding capacity in Australia; 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, CUDA, NVIDIA DSX, NVIDIA Spectrum-X and NVIDIA Nemotron are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and/or other countries. Other company and product names may be trademarks of the respective companies with which they are associated.

DALLAS--(BUSINESS WIRE)--Verily Health Inc. today announced it has received investment support from NVIDIA, as Verily extends its March fundraising. Existing investor CU Healthcare Innovation Fund II, LP is also making an additional investment. Verily’s current investors include Alphabet, Series X Capital, UCHealth, and others.

"We are pleased to welcome NVIDIA as a new investor in Verily. These investments strengthen our ability to pursue the opportunity ahead. Together, these investments and the continued support of our current investors accelerate our vision to build a trusted foundation for healthcare, bringing together the information and intelligence needed to power better decisions and unlock the full potential of AI across the healthcare ecosystem,” said Stephen Gillett, Chairman and CEO of Verily.

The new backing arrives as Verily scales adoption of the Verily Pre Platform, the company's flagship data and AI platform, which helps healthcare organizations make their data AI-ready and deploy AI responsibly across research and care. It also supports the growth of Verily Me, the company's patient engagement offering, extending Verily’s capabilities to support individuals throughout their healthcare journey.

Verily and NVIDIA previously announced a collaboration in October 2025. Researchers using the Verily Pre Platform will be able to leverage NVIDIA AI libraries and frameworks, including NeMo, Parabricks, RAPIDS, and NVIDIA B200 GPUs. Verily developed Forecast 1.0™, a foundation model that integrates genomics and EHR data to deliver improvements in the accuracy of predicting long-term health risks, in collaboration with NVIDIA. Leveraging the NVIDIA AI stack, the model achieved improved predictive performance and computational efficiency.

About Verily Health Inc.

Verily is a data platform and technology company purpose-built to power AI-enabled precision health solutions that accelerate research and improve care for individuals and communities. Uniquely positioned at the intersection of technology, data science, and healthcare, Verily transforms multimodal health data into insights, models, and actions that make healthcare more personalized, predictive, and precise. For more information about Verily please visit: verily.com.

Michael Burry is no stranger to controversial market calls. The hedge fund manager and founder of Scion Capital cemented his place in Wall Street history by predicting the subprime lending market crash in 2008. His high-stakes bet earned him $100 million, while his investors banked $725 million. The events were immortalized in the movie The Big Short, and Burry still turns heads with his headline-making calls.

The legendary investor's most recent target has been artificial intelligence (AI) and, more specifically, Nvidia (NVDA -0.78%). Burry takes issue with the industry's estimates of the useful life of semiconductors used in AI, believing they are too long.

However, Nvidia CEO Jensen Huang just put a nail in Burry's bear case.

Image source: Nvidia.

A little backgroundA little context helps illustrate Burry's concerns. Many technology companies estimate the useful life of Nvidia's graphics processing units (GPUs) at six years. For accounting purposes, that means the price of these processors is divided by six, and one-sixth of the cost is expensed as depreciation each year. By spreading the cost of these chips over their useful life, the annual expense decreases, resulting in higher annual profits.

Burry believes the lifespan of these chips should be shorter, saying they should be expensed over two to three years. By extending the useful life to six years, Burry argues companies are inflating their profits.

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The proof is in the puddingNvidia launched its Ampere A100 Tensor Core GPU in mid-2020. The data center GPU soon became the workhorse of AI, providing 20 times the performance of the previous generation. Yet six years after their introduction, A100 chips are still being used. Just last month, neocloud CoreWeave inked a contract to rent these semiconductors for AI processing through 2029. Far from being obsolete, nine years after they were first released.

Perhaps more telling, the price to rent these older chips is actually increasing. Just this week, in a post on X, financial market platform Ornn Exchange shared details about the use of the slightly newer Hopper H100 chips, noting that the rental price for these processors is up 22% month over month.

Huang shared the post on Tuesday, adding his own .02 cents:

NVIDIA compute is fungible, durable and highly rentable. It is a productive, revenue-generating asset. https://t.co/cvmjaNoiK8

— Jensen Huang (@JensenHuang) September 8, 2026 The evidence clearly refutes Burry's contention that the useful life of Nvidia GPUs is being overstated. As these examples clearly show, these chips are lasting far longer than their estimated useful life.

What it means for Nvidia investorsThe biggest takeaway for investors is undeniable. Even as demand for Nvidia's latest generation Vera Rubin and Blackwell processors remains strong, so too does demand for its older Ampere and Hopper chips.

Moreover, this puts a nail in Burry's contention that the useful life of these chips is overstated. If anything, the estimates being used may be too short, and we don't yet know how long these AI powerhouse chips will last.

It's also worth mentioning that at 28 times earnings, Nvidia stock is a steal.

Ahead of Labor Day, you could buy 10 shares of Nvidia (NVDA -0.72%) for $2,304. I think those shares could be worth around $6,900 in five years, or about 3 times what the stock trades for today.

Making such a bold claim, of course, requires some proof for the skeptics. First, I'll get into what makes Nvidia special and why its momentum is likely to continue; then I'll get into the math showing how the stock could triple by 2030.

Image source: The Motley Fool.

The biggest AI winner Nvidia has established itself as the biggest artificial intelligence (AI) winner since the technology started to go mainstream. That's because its graphics processing units (GPUs) are the primary chips powering AI workloads. While there is much more increased competition coming from custom AI chips and the occasional better offerings from Advanced Micro Devices and newer chip upstarts, Nvidia still finds itself in the catbird seat.

The company is the absolute dominant player in the AI training market, and this is unlikely to change. Nvidia has created a wide moat in this area with its CUDA software platform. It developed CUDA to easily program its chips and smartly seeded it among universities and research facilities doing early work on AI. The result is a generation of developers trained on its software, with most early AI code written on its platform and optimized for its chips.

Training is just part of the story, though, as inference is now growing faster and expected to eventually become the larger of the two AI computing markets. CUDA's moat is not as formidable in this area, but the company has made some good moves to remain a top player in this arena as well. Nvidia smartly "acquired" Groq and its language processing units (LPUs) earlier this year and incorporated them into its CUDA ecosystem. Inference tends to be more memory-bound than compute-bound, and LPUs have lightning-fast SRAM (static random-access memory) directly embedded in them. This reduces latency and makes them ideal for the decode phase of inference. Meanwhile, its GPUs can handle the more compute-heavy pre-fill phase.

This also speaks to Nvidia's greater strategy. The company is no longer just a GPU maker; it's become a complete AI infrastructure player. With a world-class networking portfolio, its own central processing units (CPUs), and other chips, the company can now deliver end-to-end complete rack solutions for specific AI tasks, such as training, inference, and agentic AI. At the same time, it's also acquired AI ecosystem players like SchedMD and Hugging Face (pending) to support open-source AI models and ensure that the broader developer ecosystem relies on open standards that run best on its hardware.

This all positions Nvidia to be a long-term AI winner well into the future.

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The path to $690 a share The market for AI infrastructure remains insatiable, and Nvidia recently projected that its revenue would grow by 70% in fiscal 2028 (ending January 2028), even though this growth is supply-constrained. To get to a $690 target in five years, I am still going to have to do a little math.

If it can produce a revenue compound annual growth rate (CAGR) of a little over 40% through 2031 (essentially its fiscal year 2032 ending in January 2031), its revenue would be around $2.3 trillion. This would mean 70% revenue growth next year and 25% revenue growth in fiscal 2032.

If the company's adjusted operating expenses rose at an average of 11% quarter over quarter through 2031 (fiscal 2032) and gross margin gradually stepped down to approximately 70%, and we apply a 15% tax rate on its operating income, Nvidia could generate over $1.1 trillion in adjusted earnings by 2031, or about $46 per share at its current share count of 24.4 billion. Place a 15 forward price-to-earnings ratio on fiscal 2032 projections for the stock, and its share price would be $690 in five years.

Below is a simple model of what its revenue and earnings growth could look like.

Financial Metric

FY 2027

FY 2028

FY 2029

FY 2030

FY 2031

FY 2032

Revenue

$411 billion

$699 billion

$1.05 trillion

$1.47 trillion

$1.91 trillion

$2.29 trillion

Revenue growth

90%

70%

50%

40%

30%

25%

Gross profit

$308 billion

$517 billion

$765 billion

$1.06 trillion

$1.34 trillion

$1.6 trillion

Adjusted operating expenses

$35 billion

$53 billion

$81 billion

$123 billion

$186 billion

$283 billion

Operating income

$273 billion

$464 billion

$684 billion

$934 billion

$1.15 trillion

$1.32 trillion

Net income

$232 billion

$394 billion

$582 billion

$794 billion

$977 billion

$1.12 trillion

Earnings per share

$9.52

$16.16

$23.84

$32.53

$40.02

$45.96

Data source: Author's projections.

If these projections are even close to accurate, Nvidia becomes a top AI stock to own over the next five years.