Jim Cramer has said that the stock for the largest company globally by market capitalization, Nvidia Corp. (NASDAQ: NVDA), ‘is on fire’.
On July 22, Cramer told his mass social media following that Nvidia stock is heating up despite a lack of specific reason.
“Remember the largest stock in this market is on fire… and we don’t know why… NVDA,” Cramer noted.
Over the past 24 hours, Nvidia stock price surged nearly 4%, trading at about $213.66 at press time. As such, the company had a market capitalization of more than $5 trillion at the time of publication.
NVDA 24-hour chart. Source: Finbold After being trapped in a correction phase between mid May 2026 and late June, Nvidia stock has rallied over 9.6 % so far in July, up from $194.83 on July 2.
Why is Nvidia stock going up today? Nvidia stock surged today partly due to positive sentiment from Vivek Arya, an analyst at Bank of America Corp. (NYSE: BAC). On Wednesday, BofA said it sees the CPU (Central Processing Unit) market reaching $170 billion by 2030.
Consequently, Arya reiterated a Buy rating for NVDA stock, and set a 12-month price target of $350, signaling a potential upside of more than 63%. In the AI infrastructure news, Arya pointed to growing competition between Nvidia’s Vera CPU and Advanced Micro Devices Inc. (NASDAQ: AMD).
Meanwhile, Nvidia stock could have gained uptrend momentum today following bullish sentiment from Wall Street analysts. Specifically, 37 Wall Street analysts surveyed by TipRanks have issued a Strong Buy rating for Nvidia stock and set an average 12-month price target of $309.94.
NVDA analyst ratings. Source: TipRanks The company has also made notable investments to increase its revenue in the long haul. For instance, Nvidia disclosed an ownership of 22.2 million shares in Nebius Group N.V. (NASDAQ: NBIS).
As a result, Nvidia owns 10% of the full-stack AI cloud infrastructure. Earlier today, Nvidia launched the Medical Physics Simulation framework, a major healthcare AI news.
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HomeIndustriesThe two companies also strike a chip dealJuly 22, 2026, 11:04 a.m. ET
AMD CEO Lisa Su said the company’s partnership with Anthropic “will accelerate AI adoption at scale.” Photo: Caroline Brehman/Agence France-Presse/Getty ImagesAnthropic and Advanced Micro Devices have signed a major new deal tying the artificial-intelligence leaders closer together from both a business perspective and a financial perspective.
Anthropic will buy up to 2 gigawatts of AMD’s AMD latest graphic processing units, the Instinct MI450 series, and deploy its Helios racks. AMD will adopt Anthropic’s Claude models to boost its software development.
Jim Cramer’s most durable investing rule is a short one: some stocks you own, and some stocks you trade. For years he has planted Apple in the “own” column with the mantra to buy and hold it from here to eternity because the story pans out and the darn thing keeps going higher. In 2026 he has extended that same treatment to NVIDIA. This week the pairing got a fresh headline hook: Apple surpassed Nvidia in market value, reclaiming its spot as the world’s most valuable company, before both giants settled back into their usual jockeying at the top of the market cap table.
The “own it, don’t trade it” framework is built for compounders with three characteristics: a dominant platform, a mountain of capital return, and repeat earnings beats. Both names check every box.
NVIDIA: The AI Factory Compounder NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) sits at a ~$5.04 trillion market cap, and the fundamentals justify why Cramer treats it as a hold rather than a rental. In Q1 fiscal 2027, NVIDIA delivered revenue of $81.615 billion, up 85.23% year over year, with non-GAAP EPS of $1.87 against a $1.7738 consensus. Data center revenue reached $75.246 billion, with networking up 199% year over year. Non-GAAP gross margin held at 75.0%. That is four consecutive quarters of EPS beats.
Management is behaving like a company that agrees with the “never trade” thesis. NVIDIA authorized an additional $80.0 billion in share repurchases and raised the dividend from $0.01 to $0.25 per share. Total supply-related commitments now stand at $119.0 billion, which telegraphs multi-year visibility into demand. Jensen Huang framed it directly: “The buildout of AI factories, the largest infrastructure expansion in human history, is accelerating at extraordinary speed.”
The stock has been quieter recently. Shares are down 2.13% over the past week and up 11.28% year to date, with a 961.54% five-year return. Polymarket traders assign a 0.83 probability to NVDA closing above $200 by month-end and a 0.735 probability that $216 is the July peak: measured optimism rather than euphoria.
Apple: The Original “Own It” Stock Apple (NASDAQ:AAPL), at a ~$4.77 trillion market cap, is the name Cramer originally wrapped this thesis around. The Q2 fiscal 2026 report reinforced why. Revenue hit $111.184 billion, up 16.6% year over year, with EPS of $2.01 against a $1.94 consensus. iPhone revenue set a March quarter record at $56.994 billion, and Services notched an all-time record of $30.976 billion. That is eight straight EPS beats.
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Tim Cook attributed the strength to the product cycle: “iPhone achieved a March quarter revenue record, fueled by such extraordinary demand for the iPhone 17 lineup.” The installed base has crossed 2.5 billion active devices, which is the durable annuity powering the Services line. Capital return remains enormous: a $100 billion new buyback authorization and a 4% dividend hike this spring, on top of $90.711 billion in fiscal 2025 repurchases.
The stock has finally caught up to the fundamentals. AAPL is up 4.09% over the past week, up 20.78% year to date, and up 54.86% over the past year. Polymarket assigns a 91.5% probability Apple beats Q3 earnings expectations and a 96.6% probability that iPhone 18 launches in 2026.
What to Watch Next Both stocks trade at rich multiples. NVIDIA carries a P/E of 42 against Apple’s 43. Reddit sentiment for NVDA is genuinely mixed, with active debate about AI infrastructure depreciation and competitive threats from South Korean NPUs. Apple’s near-term watch item is the Q3 earnings report with iPhone revenue expectations clustered around $52 to $55 billion. NVIDIA’s is Q2 fiscal 2027 revenue guidance of $91.0 billion ± 2%.
Cramer’s framework rests on a simple observation. When a company keeps beating its own numbers, expanding margins at scale, and returning tens of billions per quarter, the trader trying to catch the next 4% dip usually forfeits the next 40% run. That is the case both AAPL and NVDA continue to make with every earnings report.
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Candriam S.C.A. grew its position in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 3.9% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 7,023,574 shares of the computer hardware maker’s stock after buying an additional 261,537 shares during the quarter. NVIDIA makes up approximately 6.4% of Candriam S.C.A.’s portfolio, making the stock its largest position. Candriam S.C.A.’s holdings in NVIDIA were worth $1,224,911,000 at the end of the most recent reporting period.
Other large investors have also made changes to their positions in the company. Lifetime Wealth Management P.C. purchased a new stake in shares of NVIDIA in the fourth quarter valued at $26,000. Longview Financial Advisors Inc. purchased a new position in shares of NVIDIA during the first quarter valued at $27,000. Longfellow Investment Management Co. LLC raised its position in NVIDIA by 47.9% during the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock valued at $33,000 after buying an additional 67 shares during the period. Spurstone Advisory Services LLC acquired a new position in NVIDIA during the second quarter valued at $40,000. Finally, Inspire Investing LLC purchased a new stake in NVIDIA in the 4th quarter worth about $44,000. Institutional investors and hedge funds own 65.27% of the company’s stock.
Wall Street Analysts Forecast Growth A number of brokerages have commented on NVDA. President Capital raised their price objective on NVIDIA from $280.00 to $295.00 and gave the stock a “buy” rating in a research report on Thursday, May 21st. DZ Bank restated a “buy” rating on shares of NVIDIA in a report on Thursday, May 21st. Truist Financial boosted their price objective on shares of NVIDIA from $287.00 to $307.00 and gave the company a “buy” rating in a research report on Thursday, May 21st. William Blair reiterated an “outperform” rating on shares of NVIDIA in a research report on Tuesday, June 2nd. Finally, BNP Paribas Exane boosted their price target on shares of NVIDIA from $270.00 to $285.00 and gave the company an “outperform” rating in a report on Thursday, May 21st. Two research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $304.26.
Check Out Our Latest Stock Analysis on NVIDIA
NVIDIA Trading Up 2.0% NASDAQ:NVDA opened at $207.29 on Wednesday. The company has a market capitalization of $5.02 trillion, a P/E ratio of 31.74, a P/E/G ratio of 0.45 and a beta of 2.21. The stock’s 50 day moving average price is $209.04 and its 200 day moving average price is $195.41. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44. NVIDIA Corporation has a 52 week low of $164.07 and a 52 week high of $236.54.
NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.76 by $0.11. The firm had revenue of $81.61 billion during the quarter, compared to analysts’ expectations of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The company’s revenue was up 85.2% compared to the same quarter last year. During the same period in the previous year, the company earned $0.81 earnings per share. On average, research analysts forecast that NVIDIA Corporation will post 8.79 EPS for the current fiscal year.
NVIDIA Increases Dividend The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Thursday, June 4th were issued a $0.25 dividend. This is a boost from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date was Thursday, June 4th. NVIDIA’s dividend payout ratio is currently 15.31%.
NVIDIA announced that its board has authorized a stock buyback program on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in shares. This repurchase authorization authorizes the computer hardware maker to purchase up to 1.5% of its stock through open market purchases. Stock repurchase programs are often an indication that the company’s board believes its shares are undervalued.
More NVIDIA News Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: NVIDIA disclosed that its next-generation Rubin AI chips are shipping to customers and that production is underway, reinforcing confidence that the company’s roadmap remains on schedule and competitive versus rivals like AMD and Broadcom. Nvidia Says Rubin AI Chips Are Shipping Positive Sentiment: The company also unveiled an expansion of its Agent Toolkit with Omniverse libraries, aimed at helping developers build simulation-ready “physical AI” applications for robotics, factories, and autonomous systems. That strengthens NVIDIA’s software ecosystem and could support longer-term demand for its hardware and platforms. NVIDIA Agent Toolkit Expands With New Omniverse Libraries Positive Sentiment: Investor sentiment was also helped by NVIDIA’s 9.3% stake in Nebius, which signals deeper involvement in AI cloud infrastructure and sparked a broad AI-infrastructure rally that reflects continued confidence in NVIDIA’s influence across the sector. Nebius stock surges as Nvidia discloses 9.3% stake in neocloud Neutral Sentiment: Wall Street commentary remains broadly constructive, with several pieces highlighting NVIDIA as a key AI growth name and a possible leader during earnings season, but these are mostly sentiment drivers rather than new fundamentals. Why Nvidia Stock Can ‘Lead the Charge’ This Earnings Season Neutral Sentiment: Some articles noted that other AI memory and infrastructure names have been outperforming NVIDIA lately, which is a reminder that the AI trade is broadening beyond NVDA even as it remains a core beneficiary. NVIDIA Isn’t Leading AI Stocks in 2026 – These 2 Are Up Over 180% Insider Buying and Selling In other NVIDIA news, Director Mark A. Stevens sold 885,000 shares of the stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the transaction, the director directly owned 5,207,271 shares of the company’s stock, valued at $1,094,412,146.07. This represents a 14.53% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director John Dabiri sold 625 shares of the firm’s stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total value of $133,750.00. Following the transaction, the director owned 14,163 shares in the company, valued at approximately $3,030,882. This trade represents a 4.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 1,901,125 shares of company stock worth $410,583,015. Corporate insiders own 3.94% of the company’s stock.
NVIDIA Profile (Free Report)
NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.
The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.
Featured Articles Five stocks we like better than NVIDIA Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible 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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Beacon Harbor Wealth Advisors Inc. grew its stake in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 966.4% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 43,700 shares of the computer hardware maker’s stock after purchasing an additional 39,602 shares during the quarter. Beacon Harbor Wealth Advisors Inc.’s holdings in NVIDIA were worth $7,621,000 as of its most recent filing with the Securities and Exchange Commission.
Several other institutional investors have also modified their holdings of the stock. Lifetime Wealth Management P.C. acquired a new stake in shares of NVIDIA during the fourth quarter worth about $26,000. Longview Financial Advisors Inc. acquired a new stake in shares of NVIDIA in the 1st quarter valued at about $27,000. Longfellow Investment Management Co. LLC boosted its position in shares of NVIDIA by 47.9% in the 2nd quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock valued at $33,000 after purchasing an additional 67 shares during the period. Inspire Investing LLC purchased a new position in NVIDIA during the 4th quarter worth approximately $44,000. Finally, AlphaCentric Advisors LLC purchased a new stake in NVIDIA in the fourth quarter valued at approximately $45,000. Hedge funds and other institutional investors own 65.27% of the company’s stock.
NVIDIA News Roundup Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: NVIDIA disclosed that its next-generation Rubin AI chips are shipping to customers and that production is underway, reinforcing confidence that the company’s roadmap remains on schedule and competitive versus rivals like AMD and Broadcom. Nvidia Says Rubin AI Chips Are Shipping Positive Sentiment: The company also unveiled an expansion of its Agent Toolkit with Omniverse libraries, aimed at helping developers build simulation-ready “physical AI” applications for robotics, factories, and autonomous systems. That strengthens NVIDIA’s software ecosystem and could support longer-term demand for its hardware and platforms. NVIDIA Agent Toolkit Expands With New Omniverse Libraries Positive Sentiment: Investor sentiment was also helped by NVIDIA’s 9.3% stake in Nebius, which signals deeper involvement in AI cloud infrastructure and sparked a broad AI-infrastructure rally that reflects continued confidence in NVIDIA’s influence across the sector. Nebius stock surges as Nvidia discloses 9.3% stake in neocloud Neutral Sentiment: Wall Street commentary remains broadly constructive, with several pieces highlighting NVIDIA as a key AI growth name and a possible leader during earnings season, but these are mostly sentiment drivers rather than new fundamentals. Why Nvidia Stock Can ‘Lead the Charge’ This Earnings Season Neutral Sentiment: Some articles noted that other AI memory and infrastructure names have been outperforming NVIDIA lately, which is a reminder that the AI trade is broadening beyond NVDA even as it remains a core beneficiary. NVIDIA Isn’t Leading AI Stocks in 2026 – These 2 Are Up Over 180% Insider Transactions at NVIDIA In related news, Director Stephen C. Neal sold 15,500 shares of the firm’s stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total value of $3,343,815.00. Following the completion of the sale, the director owned 116,135 shares in the company, valued at $25,053,803.55. This trade represents a 11.77% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Mark A. Stevens sold 885,000 shares of NVIDIA stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $210.17, for a total value of $186,000,450.00. Following the completion of the sale, the director directly owned 5,207,271 shares in the company, valued at $1,094,412,146.07. This represents a 14.53% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 1,901,125 shares of company stock worth $410,583,015 over the last ninety days. 3.94% of the stock is currently owned by company insiders.
Analysts Set New Price Targets A number of equities analysts have recently issued reports on the stock. BTIG Research assumed coverage on shares of NVIDIA in a research report on Wednesday, April 15th. They set a “buy” rating on the stock. DZ Bank reiterated a “buy” rating on shares of NVIDIA in a research report on Thursday, May 21st. Tigress Financial reiterated a “strong-buy” rating and set a $425.00 price target (up from $360.00) on shares of NVIDIA in a research note on Wednesday, May 27th. Needham & Company LLC reissued a “buy” rating and set a $270.00 price objective on shares of NVIDIA in a research report on Tuesday, June 2nd. Finally, Stifel Nicolaus set a $282.00 price objective on shares of NVIDIA and gave the company a “buy” rating in a research note on Thursday, May 21st. Two investment analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $304.26.
View Our Latest Stock Analysis on NVDA
NVIDIA Price Performance Shares of NASDAQ NVDA opened at $207.29 on Wednesday. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85. The stock has a fifty day moving average price of $209.04 and a 200 day moving average price of $195.41. NVIDIA Corporation has a 1-year low of $164.07 and a 1-year high of $236.54. The company has a market cap of $5.02 trillion, a PE ratio of 31.74, a P/E/G ratio of 0.45 and a beta of 2.21.
NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share for the quarter, beating analysts’ consensus estimates of $1.76 by $0.11. The firm had revenue of $81.61 billion for the quarter, compared to analyst estimates of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. NVIDIA’s quarterly revenue was up 85.2% on a year-over-year basis. During the same period last year, the firm posted $0.81 EPS. Sell-side analysts forecast that NVIDIA Corporation will post 8.79 EPS for the current year.
NVIDIA declared that its Board of Directors has authorized a share buyback program on Wednesday, May 20th that allows the company to buyback $80.00 billion in outstanding shares. This buyback authorization allows the computer hardware maker to buy up to 1.5% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s board of directors believes its stock is undervalued.
NVIDIA Increases Dividend The company also recently announced a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Thursday, June 4th were issued a $0.25 dividend. The ex-dividend date of this dividend was Thursday, June 4th. This is a positive change from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. NVIDIA’s payout ratio is presently 15.31%.
NVIDIA Profile (Free Report)
NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.
The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.
Recommended Stories Five stocks we like better than NVIDIA Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible 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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Brown University purchased a new position in NVIDIA Corporation (NASDAQ:NVDA – Free Report) in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 53,000 shares of the computer hardware maker’s stock, valued at approximately $9,243,000. NVIDIA makes up 9.1% of Brown University’s holdings, making the stock its 5th biggest position.
Several other institutional investors have also recently made changes to their positions in the stock. Brighton Jones LLC raised its stake in NVIDIA by 12.4% during the 4th quarter. Brighton Jones LLC now owns 324,901 shares of the computer hardware maker’s stock worth $43,631,000 after acquiring an additional 35,815 shares during the period. Bank Pictet & Cie Europe AG boosted its position in shares of NVIDIA by 1.0% in the fourth quarter. Bank Pictet & Cie Europe AG now owns 2,346,417 shares of the computer hardware maker’s stock worth $315,100,000 after purchasing an additional 22,929 shares during the period. Highview Capital Management LLC DE boosted its position in shares of NVIDIA by 6.7% in the fourth quarter. Highview Capital Management LLC DE now owns 58,396 shares of the computer hardware maker’s stock worth $7,842,000 after purchasing an additional 3,653 shares during the period. Hudson Value Partners LLC increased its stake in shares of NVIDIA by 30.7% in the fourth quarter. Hudson Value Partners LLC now owns 50,658 shares of the computer hardware maker’s stock worth $6,805,000 after purchasing an additional 11,900 shares in the last quarter. Finally, Wealth Group Ltd. increased its stake in shares of NVIDIA by 15.7% in the first quarter. Wealth Group Ltd. now owns 6,598 shares of the computer hardware maker’s stock worth $715,000 after purchasing an additional 896 shares in the last quarter. Institutional investors own 65.27% of the company’s stock.
NVIDIA Stock Up 2.0% NVDA opened at $207.29 on Wednesday. The company has a market capitalization of $5.02 trillion, a PE ratio of 31.74, a price-to-earnings-growth ratio of 0.45 and a beta of 2.21. The firm has a 50-day simple moving average of $209.04 and a two-hundred day simple moving average of $195.41. The company has a quick ratio of 2.85, a current ratio of 3.44 and a debt-to-equity ratio of 0.04. NVIDIA Corporation has a 52 week low of $164.07 and a 52 week high of $236.54.
NVIDIA (NASDAQ:NVDA – Get Free Report) last issued its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.76 by $0.11. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The firm had revenue of $81.61 billion for the quarter, compared to analysts’ expectations of $78.42 billion. During the same period in the previous year, the firm posted $0.81 earnings per share. The business’s revenue was up 85.2% compared to the same quarter last year. Analysts forecast that NVIDIA Corporation will post 8.79 earnings per share for the current fiscal year.
NVIDIA declared 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 generally an indication that the company’s management believes its shares are undervalued.
NVIDIA Increases Dividend The company also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Thursday, June 4th were issued a dividend of $0.25 per share. This is a positive change from NVIDIA’s previous quarterly dividend of $0.01. The ex-dividend date of this dividend was Thursday, June 4th. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. NVIDIA’s payout ratio is currently 15.31%.
Insider Transactions at NVIDIA In related news, Director John Dabiri sold 625 shares of the business’s stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total value of $133,750.00. Following the sale, the director owned 14,163 shares in the company, valued at approximately $3,030,882. The trade was a 4.23% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 885,000 shares of the company’s stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the sale, the director directly owned 5,207,271 shares in the company, valued at approximately $1,094,412,146.07. The trade was a 14.53% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 1,901,125 shares of company stock valued at $410,583,015 in the last ninety days. Corporate insiders own 3.94% of the company’s stock.
NVIDIA News Summary Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: NVIDIA disclosed that its next-generation Rubin AI chips are shipping to customers and that production is underway, reinforcing confidence that the company’s roadmap remains on schedule and competitive versus rivals like AMD and Broadcom. Nvidia Says Rubin AI Chips Are Shipping Positive Sentiment: The company also unveiled an expansion of its Agent Toolkit with Omniverse libraries, aimed at helping developers build simulation-ready “physical AI” applications for robotics, factories, and autonomous systems. That strengthens NVIDIA’s software ecosystem and could support longer-term demand for its hardware and platforms. NVIDIA Agent Toolkit Expands With New Omniverse Libraries Positive Sentiment: Investor sentiment was also helped by NVIDIA’s 9.3% stake in Nebius, which signals deeper involvement in AI cloud infrastructure and sparked a broad AI-infrastructure rally that reflects continued confidence in NVIDIA’s influence across the sector. Nebius stock surges as Nvidia discloses 9.3% stake in neocloud Neutral Sentiment: Wall Street commentary remains broadly constructive, with several pieces highlighting NVIDIA as a key AI growth name and a possible leader during earnings season, but these are mostly sentiment drivers rather than new fundamentals. Why Nvidia Stock Can ‘Lead the Charge’ This Earnings Season Neutral Sentiment: Some articles noted that other AI memory and infrastructure names have been outperforming NVIDIA lately, which is a reminder that the AI trade is broadening beyond NVDA even as it remains a core beneficiary. NVIDIA Isn’t Leading AI Stocks in 2026 – These 2 Are Up Over 180% Analyst Ratings Changes A number of research analysts recently weighed in on NVDA shares. Mizuho set a $300.00 target price on shares of NVIDIA in a research note on Thursday, May 21st. Evercore reissued an “outperform” rating and set a $413.00 price target (up from $352.00) on shares of NVIDIA in a report on Thursday, May 21st. HSBC restated a “buy” rating and issued a $325.00 price objective (up from $295.00) on shares of NVIDIA in a research report on Tuesday, May 19th. Itau BBA Securities cut their target price on NVIDIA from $256.00 to $218.00 in a research report on Wednesday, June 24th. Finally, Susquehanna reissued a “positive” rating and set a $275.00 target price (up from $250.00) on shares of NVIDIA in a research note on Tuesday, May 12th. Two analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, NVIDIA currently has an average rating of “Moderate Buy” and a consensus target price of $304.26.
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NVIDIA Profile (Free Report)
NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.
The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.
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Conning Inc. trimmed its stake in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 12.9% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 134,952 shares of the computer hardware maker’s stock after selling 20,024 shares during the quarter. Conning Inc.’s holdings in NVIDIA were worth $23,536,000 at the end of the most recent reporting period.
Several other institutional investors and hedge funds have also recently modified their holdings of the stock. Presidio Capital Management LLC boosted its holdings in shares of NVIDIA by 0.4% during the fourth quarter. Presidio Capital Management LLC now owns 15,137 shares of the computer hardware maker’s stock worth $2,823,000 after acquiring an additional 53 shares during the period. LMG Wealth Partners LLC grew its position in shares of NVIDIA by 0.7% in the fourth quarter. LMG Wealth Partners LLC now owns 7,649 shares of the computer hardware maker’s stock valued at $1,427,000 after purchasing an additional 53 shares during the last quarter. Vision Financial Markets LLC increased its stake in shares of NVIDIA by 1.2% during the third quarter. Vision Financial Markets LLC now owns 4,640 shares of the computer hardware maker’s stock worth $866,000 after purchasing an additional 53 shares during the period. JGP Global Gestao de Recursos Ltda. increased its stake in shares of NVIDIA by 2.3% during the fourth quarter. JGP Global Gestao de Recursos Ltda. now owns 2,402 shares of the computer hardware maker’s stock worth $448,000 after purchasing an additional 55 shares during the period. Finally, Penobscot Wealth Management lifted its holdings in NVIDIA by 0.7% during the 1st quarter. Penobscot Wealth Management now owns 7,930 shares of the computer hardware maker’s stock worth $1,383,000 after purchasing an additional 55 shares during the last quarter. 65.27% of the stock is currently owned by institutional investors and hedge funds.
Insider Buying and Selling at NVIDIA In other NVIDIA news, Director Stephen C. Neal sold 15,500 shares of the firm’s stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total value of $3,343,815.00. Following the transaction, the director directly owned 116,135 shares of the company’s stock, valued at $25,053,803.55. This trade represents a 11.77% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Mark A. Stevens sold 885,000 shares of the company’s stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the sale, the director directly owned 5,207,271 shares of the company’s stock, valued at approximately $1,094,412,146.07. This trade represents a 14.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 1,901,125 shares of company stock valued at $410,583,015 in the last ninety days. 3.94% of the stock is currently owned by company insiders.
Key Headlines Impacting NVIDIA Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: NVIDIA disclosed that its next-generation Rubin AI chips are shipping to customers and that production is underway, reinforcing confidence that the company’s roadmap remains on schedule and competitive versus rivals like AMD and Broadcom. Nvidia Says Rubin AI Chips Are Shipping Positive Sentiment: The company also unveiled an expansion of its Agent Toolkit with Omniverse libraries, aimed at helping developers build simulation-ready “physical AI” applications for robotics, factories, and autonomous systems. That strengthens NVIDIA’s software ecosystem and could support longer-term demand for its hardware and platforms. NVIDIA Agent Toolkit Expands With New Omniverse Libraries Positive Sentiment: Investor sentiment was also helped by NVIDIA’s 9.3% stake in Nebius, which signals deeper involvement in AI cloud infrastructure and sparked a broad AI-infrastructure rally that reflects continued confidence in NVIDIA’s influence across the sector. Nebius stock surges as Nvidia discloses 9.3% stake in neocloud Neutral Sentiment: Wall Street commentary remains broadly constructive, with several pieces highlighting NVIDIA as a key AI growth name and a possible leader during earnings season, but these are mostly sentiment drivers rather than new fundamentals. Why Nvidia Stock Can ‘Lead the Charge’ This Earnings Season Neutral Sentiment: Some articles noted that other AI memory and infrastructure names have been outperforming NVIDIA lately, which is a reminder that the AI trade is broadening beyond NVDA even as it remains a core beneficiary. NVIDIA Isn’t Leading AI Stocks in 2026 – These 2 Are Up Over 180% NVIDIA Price Performance Shares of NASDAQ NVDA opened at $207.29 on Wednesday. The business has a fifty day moving average price of $209.04 and a two-hundred day moving average price of $195.41. The stock has a market capitalization of $5.02 trillion, a PE ratio of 31.74, a P/E/G ratio of 0.45 and a beta of 2.21. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85. NVIDIA Corporation has a fifty-two week low of $164.07 and a fifty-two week high of $236.54.
NVIDIA (NASDAQ:NVDA – Get Free Report) last released its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.76 by $0.11. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The company had revenue of $81.61 billion for the quarter, compared to analyst estimates of $78.42 billion. During the same period in the prior year, the firm posted $0.81 EPS. NVIDIA’s quarterly revenue was up 85.2% on a year-over-year basis. As a group, equities analysts predict that NVIDIA Corporation will post 8.79 earnings per share for the current fiscal year.
NVIDIA declared that its Board of Directors has initiated a stock buyback plan on Wednesday, May 20th that allows the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization allows the computer hardware maker to buy up to 1.5% of its stock through open market purchases. Stock repurchase plans are often an indication that the company’s board believes its stock is undervalued.
NVIDIA Increases Dividend The company also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Thursday, June 4th were paid a dividend of $0.25 per share. The ex-dividend date was Thursday, June 4th. This is a positive change from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 dividend on an annualized basis and a yield of 0.5%. NVIDIA’s dividend payout ratio is currently 15.31%.
Analyst Ratings Changes Several analysts recently issued reports on the company. TD Cowen restated a “buy” rating and issued a $275.00 price target (up from $235.00) on shares of NVIDIA in a research note on Friday, May 15th. Cantor Fitzgerald reissued an “overweight” rating and set a $350.00 target price on shares of NVIDIA in a report on Thursday, May 21st. Truist Financial boosted their target price on shares of NVIDIA from $287.00 to $307.00 and gave the company a “buy” rating in a research report on Thursday, May 21st. Wall Street Zen downgraded shares of NVIDIA from a “strong-buy” rating to a “buy” rating in a research note on Saturday, July 4th. Finally, Argus raised their price target on shares of NVIDIA from $220.00 to $270.00 and gave the stock a “buy” rating in a research report on Thursday, May 21st. Two investment analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, NVIDIA currently has an average rating of “Moderate Buy” and a consensus target price of $304.26.
Check Out Our Latest Research Report on NVIDIA
About NVIDIA (Free Report)
NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.
The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.
Recommended Stories Five stocks we like better than NVIDIA Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible
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SummaryNvidia Corporation is positioned as a modern-day utility, dominating AI compute infrastructure with 80%+ data center hardware share and a robust CUDA software moat.NVDA trades at a forward P/E of 19.5, well below its 10- and 20-year averages, with a fair value estimate of $313 per share—implying a 35% discount.Massive capital returns are underway: $80B added to buybacks and a 25x dividend hike, with payout ratios below 10% and strong AA credit quality.Key risks include physical/data center buildout bottlenecks and uncertain AI demand sustainability, but NVDA offers compelling total return potential at current valuations.Looking for a portfolio of ideas like this one? Members of The Dividend Kings get exclusive access to our subscriber-only portfolios. Learn More » Ithiria Soler/iStock via Getty Images
Co-authored by Kody's Dividends.
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Investors have largely shifted their attention away from the Magnificent 7 companies as enthusiasm has moved toward semiconductor stocks and the broader artificial intelligence trade.
The Roundhill Magnificent 7 ETF (MAGS) has gained just 0.68% this year, significantly underperforming the S&P 500 and Nasdaq 100 indices.
With earnings from the biggest names in technology approaching, the key question is whether this pullback presents a golden opportunity to buy these market leaders before a potential rebound.
Magnificent 7 is a group made up of the biggest American companies, including popular names like Apple, Microsoft, Alphabet, Amazon, Meta Platforms, NVIDIA, and Tesla. Cumulatively, these companies are valued at over $22 trillion.
These companies have underperformed the broader market this year as investors have started to question their AI spending. At the same time, investors have turned to memory companies, with the popular DRAM ETF attracting over $20 billion in assets in less than four months.
Apple, which has plans to spend just $14.6 billion in capital expenditure this year, has jumped by 20% and is the best-performing Magnificent 7 company. Nvidia and Google have risen by 9%, while Amazon has risen by 7%. Meta has slipped by 2.8%, while Tesla is down by over 17%.
This performance has pushed investors to lose interest in these companies. The closely-watched Roundhill Magnificent 7 ETF (MAGS) has had over $167 million in outflows in the last six months. It has shed over $332 million in assets in the last three months.
MAGS ETF inflows and outflows | Source: ETF Db
Recently, however, there are signs that investors are buying the dip, with the net inflows rising by $400 million in the last 30 days.
The next few days will be crucial for Magnificent 7 companies as they publish their financial results. Tesla and Alphabet will be the first ones to publish their results today, with analysts expecting strong numbers.
Tesla recently announced strong second-quarter delivery numbers. It sold 480,000 vehicles in the second quarter after making 450k. A recent report suggested that the company is boosting its production in Germany as demand in Europe jumped.
Estimates are that its revenue rose by 17.2% in the second quarter to $23 billion as its deliveries jumped.
Alphabet is also expected to release strong numbers. The average estimate is that its revenue jumped by 21% to $113.62 billion, while its EPS moved from $2.31 to $3.04. These will be the first results since the company raised billions of dollars by selling shares and debt.
More Magnificent 7 companies will publish their numbers next week. Microsoft and Meta Platforms will release their results on Wednesday, while Apple and Amazon will do so a day later. Nvidia is always the last company to publish its numbers.
These results will be important because the big-tech companies will describe their strategies going forward. Most importantly, they will announce their capital expenditure plans as the cost of memory, servers, and chips keeps rising.
Most analysts believe that most of these companies will do well over time. In a recent Bloomberg interview, Morgan Stanley’s Mike Wilson said that big tech stocks will do well as investors rotate from semiconductor names.
Also, the average estimate for Nvidia stock is $304, much higher than the current $207. The consensus Microsoft target is $556, up from the current $397, while Google’s target is$386.
ATLANTA--(BUSINESS WIRE)---- $QMLS #QMLS--QumulusAI, a neocloud infrastructure provider purpose-built for the AI computing era, today announced a two-year, take-or-pay agreement to supply NVIDIA Blackwell B300 nodes to a GPU cloud marketplace used by AI teams across more than 100 regions worldwide. The contract, valued at more than $18 million, makes QumulusAI a core Blackwell supplier to the customer. Capacity under the agreement will be served from QumulusAI's active U.S. data center footprint, with initial.
Oklo Joins Federal Effort to Speed Up Nuclear Power for AIBloomberg reported that details of the $200 million effort may be announced Wednesday at an AI energy summit convened by the U.S. Department of Energy.
Oklo Shares Edge HigherOKLO Price Action: At the time of publication, Oklo Shares are trading 2.08% higher at $45.05, according to data from Benzinga Pro.
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Key Takeaways NVIDIA's AI leadership, Blackwell adoption and data center growth support its stronger outlook.AMD is gaining AI traction through Instinct GPUs, EPYC processors and major cloud partnerships.NVIDIA's 19.31X forward P/E trails AMD's 53.04X despite stronger growth and profitability. Artificial intelligence (AI) continues to reshape the semiconductor industry, and NVIDIA Corporation (NVDA - Free Report) and Advanced Micro Devices, Inc. (AMD - Free Report) remain at the center of this transformation. Both companies are expanding rapidly as cloud providers, enterprises and AI developers spend heavily on AI infrastructure. While NVDA still dominates the AI accelerator market, AMD is making meaningful progress with its Instinct GPUs (graphics processing units) and EPYC server processors.
The question for investors is whether Advanced Micro Devices' faster stock rally makes it the better opportunity, or if NVIDIA's unmatched leadership still makes it the stronger long-term investment.
NVIDIA: The Undisputed AI Computing Chip LeaderNVIDIA continues to dominate the AI computing space. The company’s last reported results for first-quarter fiscal 2027 were another exceptional financial performance. First-quarter revenues soared 85% year over year to $81.6 billion as data center sales jumped 92% to a record $75.2 billion. Non-GAAP earnings surged 140% to $1.87 per share.
The rapid adoption of its Blackwell platform, strong networking demand and growing deployment across hyperscalers, enterprises and sovereign AI projects continue to strengthen its competitive position. During the last earnings call, management highlighted expanding opportunities in AI infrastructure, forecasting industry spending could eventually reach trillions of dollars annually.
Beyond GPUs, NVIDIA is widening its moat through networking, software and AI systems. CUDA remains the industry's preferred AI software ecosystem, making it difficult for customers to switch platforms. The company is also entering the data center CPU (central processing unit) market with Vera, creating another long-term growth engine.
Its enormous free cash flow supports higher shareholder returns through dividends and share repurchases while funding aggressive research and development. During the first quarter of fiscal 2027, NVIDIA generated $50.3 billion in operating cash flow and $48.6 billion in free cash flow. The company returned $243 million to its shareholders through dividend payouts and repurchased stocks worth $19.3 billion in the first quarter.
However, NVIDIA is not without risks. The company faces export restrictions to China, an increasingly competitive AI market and the challenge of sustaining extraordinary growth after several years of explosive expansion.
AMD: A Strong Challenger With Growing AI MomentumAdvanced Micro Devices is steadily strengthening its position in AI infrastructure. The company’s first-quarter 2026 revenues climbed 38% year over year to $10.3 billion, driven by record data center revenues of $5.8 billion, which increased 57%. Non-GAAP earnings jumped 43% year over year to $1.37 per share.
Advanced Micro Devices is witnessing strong demand for its EPYC server processors. The company’s Instinct AI accelerators continue to gain traction as customers move from pilot projects to production deployments. During the first-quarter earnings call, management expressed confidence that AI accelerator revenues could reach tens of billions of dollars annually in 2027, supported by growing partnerships with Meta, OpenAI and major cloud providers.
Advanced Micro Devices' biggest strength is its broad portfolio. Along with AI GPUs, it continues to gain server CPU market share, expand its AI PC offerings and improve its ROCm software platform. These efforts are making AMD a more credible alternative to NVIDIA.
Strong revenue growth and improving profitability are helping Advanced Micro Devices generate huge cash flows. In the first quarter of 2026, AMD reported $3 billion of cash from continuing operations and free cash flow of $2.6 billion.
Nonetheless, challenges remain for the company. NVIDIA continues to dominate the AI accelerator market with a much stronger software ecosystem and a larger installed customer base. Advanced Micro Devices also expects higher memory and component costs to weigh on PC and gaming demand during the second half of 2026. AMD’s share buybacks are not massive as it continues to invest heavily to narrow the technology gap with NVDA. In the first quarter of 2026, it repurchased shares worth $221 million.
NVIDIA vs. AMD: Which Has a Better Growth Outlook?Both companies are benefiting from growing spending on AI infrastructure buildouts by hyperscalers and enterprises, but analysts appear more optimistic about NVIDIA's growth outlook.
The Zacks Consensus Estimate for NVIDIA’s fiscal 2027 revenues and earnings indicates year-over-year growth of 80% and 90.6%, respectively. The consensus mark for fiscal 2027 earnings has also been revised upward by 4.36% over the past 60 days. The meaningful upward earnings estimate revision reflects growing confidence that sustained AI investments will continue to support NVDA’s earnings growth.
On the other hand, the Zacks Consensus Estimate for Advanced Micro Devices’ 2026 revenues and earnings indicates year-over-year growth of 42.3% and 74.6%, respectively. AMD is also seeing positive estimate revisions, although the magnitude is relatively smaller. During the past 60 days, the consensus estimate for 2026 earnings has increased by 0.97%. While this remains encouraging, it suggests that analysts currently see stronger earnings momentum at NVIDIA.
Valuation: NVIDIA Offers Better Value Than AMDAt first glance, Advanced Micro Devices' 154.3% year-to-date rally far exceeds NVIDIA's 10.9% gain, reflecting growing investor confidence in its AI ambitions. However, the sharp rise has also pushed AMD's valuation significantly higher.
NVIDIA currently trades at a forward 12-month price-to-earnings (P/E) multiple of 19.31, well below Advanced Micro Devices' 53.04. That is notable because NVIDIA is delivering much faster revenue growth, stronger profitability, significantly higher free cash flow and remains the clear leader in AI accelerators. AMD remains an attractive long-term AI company, but much of its near-term optimism already appears reflected in its valuation.
NVIDIA vs. AMD: Which AI Stock Wins?Both NVIDIA and Advanced Micro Devices are well-positioned to benefit from the long-term AI investment cycle. AMD is executing well, gaining market share and building stronger customer relationships that should support years of growth.
However, NVIDIA continues to outperform on nearly every major metric, including revenue growth, profitability, software leadership, ecosystem strength, cash generation and shareholder returns. Combined with its lower valuation multiple, NVIDIA offers a more compelling balance of growth and value. For investors looking to capitalize on the AI boom today, NVIDIA remains the better investment bet.
Currently, NVIDIA sports a Zacks Rank #1 (Strong Buy), giving it a clear edge over Advanced Micro Devices, which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Key Takeaways NVIDIA posted record first-quarter fiscal 2027 revenues of $81.6 billion, up 85% year over year.Sovereign AI demand helped NVIDIA's ACIE revenues reach $37.4 billion, rising 74% year over year.Long-term projects may drive recurring demand for NVIDIA hardware, networking and software upgrades. NVIDIA Corporation (NVDA - Free Report) is expanding beyond traditional cloud customers by targeting sovereign artificial intelligence (AI) projects, a fast-growing market where governments build domestic AI infrastructure to strengthen national security, scientific research and digital economies. This strategy could open a significant new revenue stream as countries increasingly seek to develop AI capabilities using locally owned computing resources.
The opportunity is already contributing to NVIDIA’s strong growth. In the first quarter of fiscal 2027, the company generated record revenues of $81.6 billion, up 85% year over year, while Data Center revenues rose 92% to a record $75.2 billion. Management also highlighted that sovereign AI demand has become an important contributor to its AI Clouds, Industrial and Enterprise business, which generated $37.4 billion in revenues during the quarter, up 74% year over year.
NVIDIA’s advantage lies in offering a complete AI platform rather than standalone chips. Governments can deploy its Blackwell GPUs alongside Spectrum-X networking, NVLink technology and AI software to build large-scale AI factories. The company is also expanding partnerships with cloud providers and regional technology firms to accelerate sovereign AI deployments across multiple countries.
Sovereign AI projects typically involve long-term infrastructure investments, creating recurring demand for hardware upgrades, networking products and software platforms. This provides NVIDIA with revenue opportunities beyond initial system deployments.
While geopolitical tensions and export restrictions remain risks, the global race to build national AI capabilities is accelerating. As more governments invest in domestic AI infrastructure, NVIDIA’s leadership in AI computing and its integrated technology stack position the company to capture a growing share of this emerging multibillion-dollar market. The Zacks Consensus Estimate for fiscal 2027 revenues is currently pegged at $387.84 billion, indicating a year-over-year increase of 79.6%.
NVIDIA’s Rivals Also Target the Sovereign AI OpportunityWhile NVIDIA leads the sovereign AI market, Advanced Micro Devices, Inc. (AMD - Free Report) and Intel Corporation (INTC - Free Report) are positioning themselves to benefit from government-backed AI infrastructure investments.
Advanced Micro Devices is expanding its presence through its EPYC server processors and Instinct AI accelerators, which are increasingly being adopted by cloud providers, research institutions and public-sector organizations. In the first quarter of 2026, AMD's Data Center revenues rose 57% year over year to $5.8 billion, reflecting strong demand for AI and high-performance computing solutions.
Advanced Micro Devices is also strengthening its ROCm software platform and collaborating with national laboratories and enterprise customers, making its AI portfolio more attractive for sovereign AI deployments that require open and scalable computing platforms.
Intel remains an important player because of its broad enterprise footprint and manufacturing capabilities. The company generated more than $5 billion in data center and AI revenues during the first quarter of 2026 and continues to invest in Xeon processors, Gaudi AI accelerators and advanced foundry services. Intel's ability to manufacture chips in the United States and Europe aligns well with many governments' goal of building secure domestic technology supply chains.
While NVIDIA currently enjoys a clear lead in AI computing, Advanced Micro Devices and Intel have the technology, customer relationships and global presence to compete for a share of the growing sovereign AI infrastructure market as government investments continue to accelerate.
NVIDIA’s Price Performance, Valuation and EstimatesShares of NVIDIA have risen around 10.8% year to date, underperforming the Zacks Computer and Technology sector’s gain of 12.1%.
NVIDIA YTD Price Return Performance
Image Source: Zacks Investment Research
From a valuation standpoint, NVDA trades at a forward price-to-earnings ratio of 19.31, below the sector’s average of 23.55.
NVIDIA Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NVIDIA’s fiscal 2027 and 2028 earnings implies a year-over-year increase of approximately 91% and 38%, respectively. Estimates for fiscal 2027 have been revised upward over the past 30 days, while estimates for fiscal 2028 have been raised over the past seven days.
Image Source: Zacks Investment Research
NVIDIA currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Nvidia (NASDAQ:NVDA | NVDA Price Prediction) might be 12% off its all-time highs from around three months ago, but, all the while, the valuation recently has sunk to depths not seen in around seven years. Indeed, the value case for shares of the fast-rising GPU gainer is really nothing new. Whether you look at the 31.7 times trailing price-to-earnings (P/E) or the 23.2 times forward P/E multiple, it’s not hard to make an argument for accumulating shares while they’re in a relatively cool spot.
Of course, if the semiconductor names fold, don’t expect shares of Jensen Huang’s $5 trillion empire to be spared. In any case, there’s no shortage of believers in the name, even as the stock chart starts looking far less attractive than in recent years. Duan Yongping of H&H International Investment actually added a huge position in the firm back in the first quarter.
A Magnificent bargain in the Mag Seven While I understand concerns that the seemingly cheap (at least relative to the astronomical growth at gross margins that scream “too good to be true”) name might actually be a trap once hyperscalers finish their data center builds or start phasing out Nvidia hardware for their own custom silicon, there’s great uncertainty with the timeline. Until the hyperscalers spend less (it feels like they’ll spend more from here) and produce enough silicon to satisfy their own inference needs (chokepoints and demand will make this hard), Nvidia is bound to keep selling — and selling well.
Add Nvidia’s widening software moat into the equation, especially when it comes to the robotics platform it’s building up, and it’s hard to gauge how the transition will go as some piece of Nvidia finds itself in the robotic innovations of the future.
Is it an uncertain time for Nvidia as AI data center moves at a blistering pace while AI bubble fearers attempt to time a top? Most definitely. But, at the same time, there’s more than one way that Nvidia can continue knocking balls out of the park as the third or fourth innings of AI come along (some think we’re in even earlier innings in this AI ballgame).
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Nvidia’s wins might not be limited to the early days of the AI boom If the company can shift gears from a GPU vendor to an ecosystem platform for physical AI and agentics, maybe that 75% gross margin that’s more reminiscent of a software company isn’t going anywhere, at least not anytime soon. In any case, at close to 23 times forward P/E, shares of Nvidia already seem priced as a GPU vendor that’s already seen its best days. With the profound performance leaps to be had with Rubin and Vera, I’d say that’s far from the case.
The company has pulled the curtain on a number of breakthroughs in recent quarters. And while the market might not reward the stock accordingly, especially amid the latest upset in semis, I do think that it’s long-term investors who will ultimately be rewarded as Jensen Huang plays to his strengths. So, unless you’re an AI bubble believer, I do think that Nvidia shares stand out as one of the most undervalued large-cap names out there.
It’s hiding in plain sight at the very top of the market, but if the AI revolution goes as planned and firms start making serious money as they execute their AI game plans, perhaps envisioning Nvidia stock at $500 per share isn’t so much of a stretch. If Nvidia’s platform proves untouchable in the AI era, perhaps we could find ourselves paying a much higher multiple on shares, even once growth comes in.
The bottom line If you own the hyperscalers, which are scrambling to cut Nvidia out of their stacks with their own custom silicon, I think you also have to own Nvidia in case the pushback doesn’t go as intended. Add recent open-source innovations (look no further than the Cosmos 3 world model platform) into the equation, and I think it’s clear that Nvidia is set to become an AI enabler that very few can keep pace with.
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I keep buying NVIDIA, and the reason has almost nothing to do with the chips. It’s the software giveaway underneath them. Most investors file NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) under “hardware,” and that framing is exactly why I’m still adding at $207.29. What I actually own is a freemium platform that happens to sell the world’s most expensive accelerators on the back end.
The Free Tier Is the Trap CUDA is free. Triton is free. NIMs, Dynamo 1.0, Nemotron, BioNeMo, Isaac, Omniverse. All free. Every graduate student, startup, and hyperscaler research team writes code against these libraries. Then the code only runs at full speed on NVIDIA silicon. “NVIDIA has the largest suite of acceleration libraries in the world,” Jensen Huang told analysts on the May call, and that’s the moat in plain language.
The paywall shows up at scale. When a customer moves from prototype to production, they build an AI factory rather than purchasing a single GPU. CFO Colette Kress framed it plainly: “Customers do not buy GPUs; they build AI factories. The right economic metric is not the purchase price of the GPU; it is the lifetime cost of an AI factory producing intelligence.” Switching costs at that level are brutal. You’d rewrite years of CUDA-optimized code, retrain teams, and lose performance. Almost nobody does it.
The Receipts Three numbers keep the buy button warm. First, growth that shouldn’t be possible at this size. Q1 FY2027 revenue hit $81.615 billion, up 85.23% year over year, with Data Center alone at $75.246 billion (+92%). Networking inside that number grew 199% YoY. Management guided Q2 to $91.0 billion.
Second, the margin structure the software stack enables. Gross margin 71.07%, operating margin 60.38%, ROE 101.5%, ROIC 92.2%. Free cash flow of $48.554 billion in a single quarter. Those are software-company economics attached to a hardware volume business.
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Third, capital returns finally showing up. The board authorized an additional $80 billion buyback on top of $38.5 billion remaining, and lifted the quarterly dividend from $0.01 to $0.25. At a forward P/E of 23, I’m paying a market multiple for a compounder returning tens of billions to owners.
Why Not the Obvious Alternatives NVIDIA’s Data Center segment posted $75.25 billion in a single quarter, which is larger than AMD’s entire company revenue base, and AMD does not run CUDA. Broadcom is the other name people cite for AI silicon, but its custom ASIC business lacks the CUDA software ecosystem lock-in that keeps developers on NVIDIA year after year. I’m paying for a developer base that would need to be pried loose one library at a time.
The Risk I Actually Watch China. H20 shipments went to zero this quarter, and Q2 guidance excludes China Data Center compute revenue entirely. That’s real. What keeps the thesis intact is that demand outside China is absorbing every wafer TSMC can produce. The $91 billion Q2 guide assumes zero China contribution. Blackwell and Rubin combined carry $1 trillion in revenue visibility through calendar 2027. I don’t need China to make the math work.
What Keeps the Buy Button Active Reddit is skeptical, insiders are trimming, and the crowd on Polymarket sees limited near-term upside above $210. I’m buying for the long arc, because every free download of CUDA is a future paying customer, and there are roughly 250,000 enterprises that haven’t shown up yet. The freemium hook is set. I keep loading.
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Nvidia (NVDA +2.10%) was the market's go-to artificial intelligence (AI) stock for a time. Its data center products, including graphic processing units (GPUs), were in such high demand that it was hard to keep up with the company's soaring revenues.
Buyers piled into the stock, resulting in the price more than tripling in 2023 and nearly doing so again in 2024. But investors began diversifying into the sector last year, with names in memory chips and data center power suppliers attracting more attention.
Investors shouldn't count Nvidia out, though, especially now that the stock has flatlined over the past three months. I believe next month's earnings report from Nvidia will be a wake-up call. Here's why.
Image source: Nvidia.
Just do the math Nvidia stock has hardly moved over the last three months. Year to date, it is up 8.75%, but that trails the Nasdaq-100 by nearly five percentage points.
The stagnation of Nvidia stock is somewhat understandable. Memory chip companies have seen sales and earnings soar, attracting significant investment capital from the tech industry. Investors are also anticipating the public debuts of AI model leaders Anthropic and OpenAI, and Space Exploration Technologies (SpaceX) just completed the largest initial public offering (IPO) in history. There's only so much capital to go around.
But that spells opportunity, and investors might want to act before the next catalyst from Nvidia.
Data source: Nvidia. Chart by author.
Nvidia's revenue growth has not only been stellar but also accelerating, driven by its data center segment. Management predicts fiscal second-quarter revenue will jump approximately 12% over Q1. Simply meeting that guidance would represent a 95% year-over-year increase. That's phenomenal growth for any tech company in the markets.
Nvidia is a safer bet Nvidia isn't being valued as such a strong growth stock, though. Its forward price-to-earnings (P/E) ratio of about 22 is even lower than the Nasdaq-100 index's 25 P/E average. SpaceX isn't profitable yet, so P/E isn't a metric being used, but its price-to-sales (P/S) ratio is about four times that of Nvidia based on expected 2026 revenue.
While investors have been distracted by other growth and potential growth stories, Nvidia remains a known entity with promising prospects as far out as is reasonable to see. That's why it's not hard to predict that Nvidia's stock price will move higher after the company confirms its expected sales and earnings in August.
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That move higher might not happen right away. Or investors could push the stock up ahead of earnings. There's no way to know when, but it seems a good bet that Nvidia's share price will continue to rise as its financial results improve.
Shares of Nvidia (NVDA +2.10%) and most of the AI-related semiconductor sector sold off last week after Moonshot, a China-based AI start-up, released its Kimi 3 model.
Kimi made waves across the industry, as the open-weights model displayed impressive performance against even the latest frontier models by Anthropic and OpenAI.
But the knee-jerk reactions to Kimi 3 seem like an echo of the DeepSeek and TurboQuant sell-offs of early 2025 and 2026, respectively. In both cases, innovations that made AI much more efficient didn't derail the AI build-out; in fact, one could argue they accelerated it by lowering adoption costs.
While these past cases aren't perfect mirrors of Kimi 3, here's why Nvidia investors shouldn't panic over this new model.
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Why Kimi sent a shudder through U.S. AI stocks Although Moonshot and other Chinese AI labs may have smuggled in some Nvidia chips illegally, Moonshot likely doesn't have access to nearly as many Nvidia chips for model training as the leading U.S. labs. There is also some uncertainty about whether Moonshot merely "distilled" a leading LLM from either Anthropic or OpenAI, essentially copying the weights from the U.S. labs.
Either way, Kimi 3 appears to have been trained at a small fraction of the cost of leading U.S. models, leading to panic over whether the U.S. giants should and will keep spending on high-end, very expensive Nvidia GPUs.
Another reason why Kimi may have spurred a sell-off in Nvidia and AI memory stocks is that it displayed a novel innovation called Kimi Delta Attention (KDA). This architecture enables the model to selectively read prior tokens to process new ones, rather than reading all prior tokens. The result is a 75% decline in KV cache, essentially an AI's short-term memory required to run the model, and a sixfold increase in speed. That means the model requires less memory and processing power, all things being equal.
Kimi doesn't lower inference requirements as much as feared Regardless of how Kimi was trained, if consumers and enterprises want to use it, the model has to run. And while KDA certainly makes more efficient use of KV cache, other architectural features make it somewhat compute-intensive, requiring high-end hardware such as the latest Nvidia racks.
First, Kimi 3 is a massive 2.8 trillion-parameter model that requires 1.5 terabytes of high-bandwidth memory. Second, Kimi 3 uses 896 experts in a "mixture of experts" architecture. A mixture of experts means a query can go to a specific, specialized "subnetwork" of the entire model, so each query doesn't have to run the entire model.
While that theoretically frees up space and lowers speed and cost, Kimi 3's experts aren't loaded entirely onto a GPU but rather are split across 16 experts per GPU, requiring at least 56 chips to hold and inference the model. Spreading the experts over more chips is a technique called WideEP.
According to chip research firm SemiAnalysis, this means that to run the model efficiently, one will need high-end chip systems with the required number of chips and associated networking, such as the Nvidia GB300 NVL72 reference architecture. Moreover, SemiAnalysis says that the lower KV cache per chip requires a subsequent massive scale-up in bandwidth to coordinate the dozens of chips required. That means a greater focus on rack-level networking and, therefore, Nvidia's NVLink technology.
Image source: Nvidia.
Don't forget U.S. regulations or the Jevons paradox Finally, even if Kimi does deliver certain efficiencies, many workloads likely won't be able to run Chinese models, especially if they have been distilled -- a fancy word for "pirated" -- from leading U.S. labs. Regulations will likely still spur many U.S. enterprises to adopt U.S.-based models, or at least take security precautions that will also increase costs.
Meanwhile, even if Kimi 3 still provides much more efficient frontier-level AI usage, the Jevons paradox, an economic concept that states as technology makes resource use more efficient, overall resource consumption increases rather than decreases, indicates this will only unlock greater adoption and usage, offsetting any efficiencies regarding Nvidia chips or memory.
Just as the DeepSeek and TurboQuant scares of 2025 and early 2026 proved to be buying opportunities in AI names, it appears as though the Kimi 3-inspired sell-off looks to be another such opportunity for long-term investors.
A $1,000 investment in Nvidia (NASDAQ: NVDA) around the launch of DeepSeek-R1 in January 2025 would be worth approximately $1,480 today, representing a gain of about 48%.
DeepSeek-R1, unveiled on January 20, 2025, drew global attention by demonstrating advanced reasoning capabilities at a fraction of the computing cost of many leading AI models.
The development sparked concerns that more efficient AI systems could reduce demand for expensive AI hardware.
Those fears culminated on January 27, 2025, when Nvidia shares plunged nearly 17% in a single session, erasing roughly $600 billion in market value in the largest one-day market-cap loss ever recorded by a public company.
The downturn proved temporary as Nvidia recovered and continued climbing. An investor who bought about 7.14 shares at roughly $140 each shortly after the DeepSeek-R1 launch would now hold a position worth around $1,480, based on Nvidia’s current share price near $207.
NVDA one-year stock price chart. Source: Finbold Nvidia’s rebound after DeepSeek AI scare While DeepSeek-R1 raised concerns about AI infrastructure spending, the broader AI market continued expanding throughout 2025 and into 2026.
Nvidia benefited from sustained investment by hyperscalers, enterprises, and AI developers building large-scale training and inference systems.
The company also continued advancing its data center and AI chip offerings, helping maintain its leadership position.
Nvidia’s business has continued expanding at a rapid pace based on the financial figures. The company reported record fiscal 2026 revenue of $215.9 billion, including $68.1 billion in fourth-quarter revenue and $62.3 billion from its data center segment.
Investor attention is now turning to Nvidia’s August 4 earnings report. In this line, recent market expectations call for quarterly revenue of around $91 billion, reflecting continued demand for Blackwell AI systems.
Additional support has come from improving sentiment around international sales. Recent U.S. approvals allowing limited AI chip exports to China have eased some concerns about access to one of the world’s largest AI markets.
Despite periodic volatility, Wall Street continues to view Nvidia as one of the main beneficiaries of the global AI buildout. The upcoming earnings report is expected to provide a key test of whether massive AI infrastructure spending by major technology companies can continue at its current pace.
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On July 17, Apple (AAPL +0.33%) overtook Nvidia (NVDA +2.10%) to reclaim the title of the largest company in the world. However, after Apple's strong run, Nvidia may once again be the better stock to buy.
Let's take a closer look at each stock to decide.
Image source: The Motley Fool.
Apple has had a strong year, with its stock up more than 22%. The outperformance comes despite the company dealing with higher input costs from components like memory. However, in response, it has significantly raised prices for both hardware and some of its services that include cloud storage.
While the higher device prices could help lift revenue, there is a risk that it could also impact upgrade cycles. According to a poll by 9to5Mac, more than 90% of those surveyed said the higher prices would impact their buying habits, with nearly 40% saying they'd upgrade less often. That does add a potential risk at a time when the stock is sitting near all-time highs.
Apple's valuation has also risen. The stock now trades at a forward P/E of 34 times fiscal 2027 analyst estimates. It has frequently traded at a one-year forward P/E of around 24 times over the past several years, and this is its highest valuation during that stretch.
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That said, Apple does have one of the best compounding business models out there. Once a user buys one of its devices, they tend to get locked into its ecosystem and use more of its high-margin services, including cloud storage, Apple Pay, and subscriptions.
One of its biggest revenue and profit contributors, meanwhile, is its revenue-sharing deal with Alphabet, which makes Google the default search engine on Apple's devices. This brings in more than $20 billion in revenue that falls straight to operating profit.
Nvidia From purely a valuation standpoint, Nvidia now looks like the much more attractive stock than Apple. It trades at a forward P/E of only 16 times analyst estimates for fiscal year 2028 (ending January 2028), and it has continued to grow its revenue and profits at a breakneck pace.
The company is the dominant player in AI infrastructure with its graphics processing units (GPUs), especially when it comes to large language model (LLM) training. Nvidia has established a wide moat in this area due to its CUDA software platform, which it smartly gave away to universities and research labs that were doing early work on AI. As a result, most foundational AI code has been written on its software platform for its GPUs, which is why it is poised to remain the leader in AI model training.
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However, the company has not sat still. Nvidia has a premier networking portfolio that now makes up the plumbing for its complete end-to-end server offerings. It's also developed its own ARM-based central processing units (CPUs), which are increasingly in demand due to the rise of agentic AI.
Nvidia also wisely "acquired" Groq this year and has integrated its language processing units (LPUs) into its CUDA ecosystem. LPUs use on-chip SRAM (static random-access memory) and are particularly beneficial during the decode phase of inference, letting Nvidia offer servers specifically for this task. With the inference market eventually expected to surpass the market for LLM training, Nvidia is well positioned.
The biggest question surrounding the stock is how long the AI build-out will last. Given the commentary from hyperscalers (owners of large data centers) and foundry Taiwan Semiconductor Manufacturing, there appears to be no let-up in AI infrastructure spending anytime soon, with demand remaining insatiable.
The verdict Nvidia is the cheaper stock with the better growth outlook. While there is a risk that the AI infrastructure build-out will eventually lose steam, it still looks like it is in the earlier innings. As such, it is the megacap tech stock I'd prefer to buy.
GMI Cloud founder and CEO Alex Yeh. GMI Cloud Earlier this year, the AI startup Fireworks AI wanted to rent hundreds of millions of dollars' worth of AI compute.
Rather than buying massive clusters of Nvidia's AI chips, known as GPUs, or renting from cloud giants like Amazon or Microsoft, some startups like Fireworks turn to specialized AI cloud providers — called neoclouds — for faster access to GPUs, more competitive pricing, and infrastructure specifically tailored to AI. Fireworks chose the neocloud GMI Cloud.
There was a catch: To serve Fireworks, GMI first needed to buy the Nvidia GPU systems from a hardware manufacturer — and banks wouldn't provide the financing because Fireworks wasn't an investment-grade company.
GMI founder and CEO Alex Yeh said they brought the problem to Nvidia and began discussing a new financing model around the beginning of this year. Yeh described it as an "insurance product" in which Nvidia agrees to step in if one of GMI's customers stops paying. In exchange, GMI shares a portion of its revenue with Nvidia.
GMI told Business Insider it is committing $500 million to expand its AI infrastructure under this new financing model and said it's among the first neoclouds in Asia to employ it.
The arrangement helps neoclouds secure loans they might not otherwise receive, while enabling Nvidia to bring more of its GPUs to market. Yeh said that rising memory prices also factor into the model's economics.
Fireworks announced this month that it had raised $1.5 billion at a $17.5 billion valuation. Still, Yeh said banks have so far viewed frontier AI startups as non-investment-grade — though he added that the market is changing quickly.
Nvidia can expand its customer baseOther neoclouds, such as Firmus and Sharon AI, are among the first to work with Nvidia under the new business model the chipmaker announced in July.
Sharon cofounder and CEO James Manning said the arrangement marks an evolution in its relationship with Nvidia from a traditional supplier to a longer-term partner.
David Nicholson, chief technology advisor at The Futurum Group, said the strategy helps Nvidia broaden its customer base beyond top cloud providers — many of which are developing their own competing AI chips.
Brad Gastwirth, global head of research and market intelligence at Circular Technology, called the model smart, though he said it could be a "yellow flag" for investors, with the key question being how selectively Nvidia chooses which neoclouds to support to limit its financial risk.
Nvidia has previously been criticized for 'circular financing'The arrangement echoes Nvidia's intertwined relationships with companies like CoreWeave and OpenAI, in which it is both an investor and a supplier.
Arman Aleksanian, cofounder and CEO of the neocloud Eleveight AI — which is not in Nvidia's new financing program but is monitoring it — said critiques about "circular financing" were fair to consider, but only if the financing supports GPU purchases that aren't backed by actual demand.
"What I'd say is that circular financing is only dangerous when it manufactures demand that isn't actually there," he said. "If the capacity runs hot with real paying customers, then the financing did its job."
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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 writes about AI startups and Y Combinator, the intersection of AI and the media industry, and workplace dynamics within top AI labs and chip companies.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.Selected stories:Nvidia crushed its quarter — and CEO Jensen Huang said in a leaked all-hands that 'the market did not appreciate it'Nvidia will foot the bill for Trump's new visa fees. Here's what CEO Jensen Huang told staff.Massive AI salaries and RTO are fueling a real estate boom in San Francisco: 'It's going to rain money'The AI talent wars are ricocheting across startups. Here's how they're competing with Big Tech.
A general view of electronics manufacturer Wistron's new global operations headquarters in Hsinchu, Taiwan June 19, 2025. REUTERS/Wen-Yee Lee/File Photo Purchase Licensing Rights, opens new tab
TAIPEI, July 22 (Reuters) - Taiwan's Wistron (3231.TW), opens new tab, a supplier to Nvidia (NVDA.O), opens new tab, launched a $700 million manufacturing facility in Texas on Tuesday to produce the U.S. chipmaker's latest AI systems, as Taiwanese electronics makers expand U.S. production to meet soaring demand for AI infrastructure.
Here are a few details:
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The Fort Worth facility manufactures Nvidia's GB300 Grace Blackwell Ultra Superchip. Nvidia CEO Jensen Huang has described the AI system built around the product as "the most powerful AI supercomputer in the world."
Wistron said the site is where Nvidia's first GB300 Grace Blackwell Ultra Superchip was built and mass-produced in the United States.
The factory will also manufacture Nvidia's next-generation Vera Rubin Superchip, Wistron said.
The factory is expected to scale up production this year to manufacture tens of thousands of computing boards per month, according to Nvidia.
The factory has created more than 500 jobs, Nvidia said, adding that it is on track to expand its workforce to 1,000 employees by the end of the year.
Nvidia said Wistron's Fort Worth plant forms part of the $500 billion U.S. investment commitment it announced in 2025.
Reporting by Wen-Yee Lee; Editing by Sherry Jacob-Phillips
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Wistron Corporation shares jumped 9.7% on Wednesday after the Taiwan-based technology service provider announced the opening of its first U.S. facility to build AI servers for Nvidia.
Its D1 AI smart facility, a $700 million, 324,000-square-foot site in Fort Worth, Texas, currently produces Nvidia's GB300 Grace Blackwell Ultra Superchip, an advanced AI processing platform. It will later expand to produce Nvidia's Vera Rubin Superchip, which is critical to powering the next generation of AI computing.
"In the next couple of years, this location will be one of the most important, as we build AI infrastructure here in the United States," Wistron Chairman Simon Lin said in the press release.
The new footprint highlights a broader trend of Taiwanese tech giants expanding their footprint in the U.S., following TSMC's announcement last week that it is doubling down on its investment in Arizona.
Wistron's new facility will ramp up production of Nvidia AI servers, expanding domestic capacity to assemble and test the systems, which integrate into Nvidia's DSX infrastructure to deploy energy-efficient AI factories at scale.
Wistron said it is creating a new model for AI infrastructure production built on digital manufacturing, energy optimization and local operations.
"Demand for AI factories—the engine of this next industrial revolution—is incredible, and they must be produced everywhere," Jensen Huang, chief executive officer of Nvidia, said.
Wistron said the Fort Worth plant will serve as the core engine of its U.S. manufacturing operations, adding that the investment reflects the next phase of AI infrastructure development.
Nvidia's partner manufacturing facilities span 43 U.S. states, with partners including Wistron, TSMC and Foxconn, contributing an estimated $485 billion to the U.S. GDP in 2026.
Nvidia (NVDA - Free Report) closed the most recent trading day at $207.29, moving +1.97% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.89%. At the same time, the Dow added 0.74%, and the tech-heavy Nasdaq gained 1.29%.
Heading into today, shares of the maker of graphics chips for gaming and artificial intelligence had lost 2.57% over the past month, outpacing the Computer and Technology sector's loss of 6.6% and lagging the S&P 500's loss of 0.63%.
The investment community will be paying close attention to the earnings performance of Nvidia in its upcoming release. The company's earnings per share (EPS) are projected to be $2.09, reflecting a 99.05% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $91.71 billion, up 96.2% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $9.09 per share and revenue of $387.84 billion, which would represent changes of +90.57% and +79.61%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Nvidia. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.54% higher within the past month. At present, Nvidia boasts a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that Nvidia has a Forward P/E ratio of 22.37 right now. This indicates a discount in contrast to its industry's Forward P/E of 49.42.
We can also see that NVDA currently has a PEG ratio of 0.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NVDA's industry had an average PEG ratio of 0.93 as of yesterday's close.
The Semiconductor - General industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 5, putting it in the top 3% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Nvidia says its latest chip designs are making their way to customers and will help solidify the chipmaker's leadership in the industry. This as the company is under pressure to show that its latest products are on schedule and superior to rivals like AMD and Broadcom.
Bloomberg's Ed Ludlow breaks down Nvidia's latest AI chip rollout, as the company says its next-generation processors are now shipping to customers and entering full production. Plus, a judge hits pause on Paramount's merger with Warner Bros.
Key Takeaways NVIDIA could benefit as easing inflation supports AI spending and Blackwell platform deployments.Amazon reported strong retail and AWS growth, with management guiding for higher second-quarter sales.NVDA and AMZN are highlighted as growth stocks positioned to gain from a less restrictive rate environment. The cooler-than-expected June Consumer Price Index (CPI) report has increased expectations that inflationary pressures are gradually easing, improving the outlook for sectors that are highly sensitive to interest rates and consumer spending. U.S. headline CPI rose 3.5% year over year in June, down from 4.2% in May, while core CPI slowed to 2.6%, signaling continued moderation in underlying price pressures. The report also showed the first monthly decline in headline prices since 2020, reflecting softer energy costs and broad-based easing across several categories.
Fed Holds Rates Steady, Rate-Cut Hopes Gain MomentumWhile the Federal Reserve kept benchmark interest rates unchanged at its June policy meeting and reiterated that future decisions will remain data dependent, the latest inflation data has strengthened market expectations that the next policy move is more likely to be a rate cut than another hike if disinflation continues. Lower inflation also eases pressure on Treasury yields, improves financing conditions and supports equity valuations, particularly for sectors whose earnings and multiples are sensitive to borrowing costs.
Against this improving macro backdrop, two stocks that appear well positioned to benefit from easing inflation and the prospect of a less restrictive interest-rate environment are NVIDIA (NVDA - Free Report) from the technology sector and Amazon (AMZN - Free Report) from the consumer discretionary space.
Let’s get into more details.
Why Technology and Consumer Discretionary Stand to BenefitTechnology companies, particularly those tied to artificial intelligence, cloud computing and semiconductors, typically outperform when inflation moderates because lower interest-rate expectations increase the present value of future earnings and support premium valuations. At the same time, secular AI infrastructure spending by hyperscalers continues to provide a strong fundamental tailwind.
Consumer discretionary is another likely beneficiary. Cooling inflation improves consumers' purchasing power by reducing pressure on household budgets, while easing energy prices leave more disposable income available for discretionary purchases. Combined with a resilient labor market and steady wage growth, this environment could support higher spending across retail, travel, restaurants and leisure businesses.
Although policymakers continue to caution that inflation remains above the Federal Reserve's 2% target and additional data will determine the policy path, the June CPI report marks an important step toward a more favorable macro environment for growth- and consumption-oriented sectors.
Our PicksNVIDIA: Its momentum continues to be driven by unprecedented demand for its Blackwell AI platform from hyperscalers, enterprises and sovereign AI projects. NVIDIA's latest guidance points to another quarter of robust revenue growth, supported by continued AI infrastructure investments despite export-related headwinds. As financing conditions improve, sustained enterprise AI spending and accelerating Blackwell deployments should support NVIDIA's near-term growth trajectory.
This Zacks Rank #1 (Strong Buy) stock has seen the Zacks Consensus Estimate for fiscal 2027 earnings increase by 11% over the past 60 days, reflecting analysts' growing confidence in sustained AI demand and Blackwell deployments. The full-year estimate of $9.09 indicates 90.6% growth over the fiscal 2026 reported number. You can see the complete list of today’s Zacks #1 Rank stocks here.
Image Source: Zacks Investment Research
Amazon: Amazon too is well positioned to benefit from easing inflation through both its consumer-facing retail operations and Amazon Web Services (AWS). Cooling price pressures could strengthen discretionary spending, while lower borrowing costs encourage enterprise cloud and AI investments. In first-quarter 2026, Amazon reported a 17% year-over-year increase in net sales with AWS revenues rising 28% year over year. Management guided second-quarter net sales of $194-$199 billion, reflecting confidence in continued demand across both retail and cloud businesses.
This Zacks Rank #2 (Buy) stock has seen the Zacks Consensus Estimate for 2026 earnings increase by 15% over the past 90 days, supported by AWS growth, advertising strength and improving retail margins. The full-year estimate of $8.93 indicates 24.6% growth over the 2025 reported number.
Amplify CWP Growth & Income ETF remains, in my opinion, a strategic overweight for income-oriented portfolios, especially given its tech sector tilt and dynamic management. QDVO offers a 10.69% distribution rate, achieved through selective call writing and concentrated exposure to high-growth tech names like NVDA, AAPL, and GOOG. I rate QDVO a BUY, favoring it over DIVO due to potentially attractive forward valuations in tech and strong earnings momentum.
Key Takeaways Alphabet and Tesla are slated to report Q2 earnings Wednesday afternoon, kicking off what’s expected to be another round of strong reports for the Magnificent Seven.The Mag 7 stocks have underperformed the S&P 500 this year amid uncertainty about the return on their AI investments. Get personalized, AI-powered answers built on 27+ years of trusted expertise.
The Magnificent Seven stocks may be more “Lag 7” than “Mag 7” this year, but their profits are still pretty magnificent.
The Mag 7—Nvidia (NVDA), Alphabet (GOOG), Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Meta (META), and Tesla (TSLA)—have grown faster than the rest of the S&P 500—or the “Other 493”—in every quarter since the end of 2022, and estimates suggest that was likely the case last quarter, too. In the coming weeks, the Mag 7 are expected to report earnings grew about 31% in the second quarter, a slowdown from 63% in Q1 but still ahead of the Other 493’s 23% growth.1
Tesla and Google-parent Alphabet will be the first of the group to post Q2 results when they report after the bell Wednesday. Analysts expect the search and cloud computing giant had another strong quarter, with revenue projected to increase about 20%, driven by a 65% increase in cloud revenue. The report will set expectations for cloud computing competitors and fellow Mag 7 members Microsoft and Amazon, both of which are slated to report next week.
Why This Is Important to Investors The Magnificent Seven earned their nickname in 2023 when their earnings and stocks soared as the economy and the rest of the stock market struggled. The tables have turned in the stock market this year, but the tech giants have continued to grow faster than most of the S&P 500.
Mag 7 stocks accounted for the vast majority of the S&P 500’s rise in recent years, but the group has lagged the broader market in 2026 amid uncertainty about the return on their huge AI investments. The Roundhill Magnificent Seven ETF (MAGS) is up less than 2% since the start of the year, trailing the S&P 500’s nearly 10% return.
The combination of stock weakness and earnings strength has many of the Mag 7 stocks trading at relatively undemanding valuations. “I don’t think there’s a problem paying 24 times forward earnings for a company that can grow high-margin revenue at roughly 20%,” said David Miller, CIO at Catalyst Funds, of Alphabet on Tuesday. “From a price-to-earnings-growth perspective, those numbers work.”
But the Mag 7’s earnings growth may not be Wall Street’s focus when they report in the coming weeks. Revenue and earnings “are likely to not matter as much as the amount of capital spending completed in the quarter and the guide for the rest of the year,” wrote Wolfe Research analysts on Tuesday.2 The hyperscalers—Alphabet, Microsoft, Amazon, Meta, and Oracle (ORCL)—reported strong results across the board last quarter, but their stocks mostly languished as investors focused on capex increases.
Hyperscalers are expected to spend upwards of $700 billion on capital expenditures this year, and much of that total is earmarked for AI data centers. Those investments have caused their free cash flows to dwindle, and compelled several of them to tap debt and equity markets for fresh capital, increasing their exposure to fluctuating interest rates.
Wolfe Research expects the hyperscalers in aggregate to increase their capex guidance again in the coming weeks.3 While that may pressure their stocks, it could reinvigorate the shares of semiconductor, memory and data storage suppliers, whose sales and earnings growth have been turbocharged by the AI data center buildout. After a torrid rally throughout the second quarter, memory and chip stocks have cooled off in recent weeks. Some market watchers say that’s created opportunities to own stocks expected to benefit from AI spending for years to come.
“Nvidia is trading like a value stock,” said Nancy Tengler, CEO of Laffer Tengler Investments, on Tuesday. “You have to believe all the [AI] spending is going to stop tomorrow” to justify the stock’s forward price-to-earnings ratio of about 16x, said Tengler.
Nvidia (NVDA +1.93%) was founded in 1993 by Jensen Huang, Curtis Priem, and Chris Malachowsky. The trio of engineers and semiconductor designers had a vision to bring 3D video graphics to computers, and they quickly succeeded.
They took Nvidia public in January 1999, raising $42 million from investors to fund the production of its revolutionary GeForce 256, which was the world's first graphics processing unit (GPU) for computers. The company's modern GPUs have become the primary component in the artificial intelligence (AI) data center hardware stack, creating the biggest financial opportunity in the history of the semiconductor industry.
Nvidia is now the most valuable enterprise in the world, and had you parked $5,000 in its stock back in 1999 and never sold, you would be filthy rich today. Here's exactly how big your fortune would be.
Image source: Nvidia.
Nvidia's chips have changed the world Nvidia commercialized its first computer graphics chip in 1995, but its GeForce 256 GPU delivered a whopping 50% increase in processing power four years later. More importantly, it cemented GeForce as one of the graphics industry's most recognizable brands.
But Nvidia never stopped innovating. Not only does it continue to make some of the best GPUs for computer games and digital 3D simulations, but it has also adapted these chips for data centers, robots, and even cars. While a traditional central processing unit typically has a handful of cores, a single GPU can have thousands, so it's better suited for rapidly analyzing high volumes of data.
Therefore, GPUs are ideal for developing AI models, which are constantly ingesting new information, analyzing it, and then using it to generate outputs. Nvidia's Blackwell GB300 GPU is widely considered to be the best data center chip in the world for processing AI workloads, but it's about to be superseded by a more powerful replacement built on the company's new Vera Rubin architecture.
A single data center can house thousands of GPUs, resulting in explosive demand as tech giants battle for AI supremacy. According to Nvidia CEO Jensen Huang, every frontier model company plans to adopt the new Vera Rubin chips when they start shipping over the next few months. That wasn't the case when the previous Blackwell chips launched. In other words, GPU demand still hasn't peaked.
Nvidia has become a financial behemoth The semiconductor industry used to be very cyclical. Companies would build data centers and use them for several years before upgrading their components, resulting in lumpy revenue for chipmakers from year to year. The AI boom changed that, at least for now, because Nvidia is releasing faster chips on an annual basis, and data center operators are buying them hand over fist.
As a result, Nvidia's revenue is exploding higher. It topped $215 billion during the company's 2026 fiscal year (which ended on Jan. 25), representing a whopping 65% growth from the prior year.
Furthermore, it represents a 136,372% increase compared with Nvidia's fiscal 1999 revenue of $158 million.
NVDA Revenue (Annual) data by YCharts
According to Wall Street's average estimates (provided by Yahoo! Finance), Nvidia's revenue could grow to $393 billion during its current 2027 fiscal year, and then to $559 billion in fiscal 2028. If recent results are anything to go by, around 90% of that revenue will come from the data center business alone, thanks to red-hot demand for AI GPUs.
Here's how much a $5,000 investment in Nvidia's IPO would be worth today Nvidia completed its initial public offering (IPO) on Jan. 22, 1999, at $12 per share. The company has since created so much value that management executed six stock splits to ensure its shares remained affordable for small investors.
Had you invested $5,000 at its IPO, you would have acquired 416 shares at $12 each. Adjusting for the stock splits, you would have 199,680 shares today with a cost basis of $0.025 per share.
Considering Nvidia stock trades at $203.28 as I write this, that translates to a return of 813,020%. In dollar terms, that initial investment of $5,000 would be worth an eye-popping $40.6 million today. Plus, Nvidia has paid a total of $0.23365 per share in dividends (split-adjusted) since fiscal 2012, so you would have also earned $46,655 in cash payments.
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Investors who don't already own Nvidia stock might be wondering if it's still a good buy. In my opinion, the answer is yes, because it's still attractively valued despite its past gains. Plus, although the AI boom is well under way, Nvidia will also benefit from a multitude of other emerging industries, such as autonomous driving, robotics, and quantum computing, which will require high volumes of chips and components in the future.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Nvidia Corporation is rated Strong Buy, driven by its transition to a rack-scale AI utility model and aggressive CPU disintermediation via Vera. NVDA's Vera CPU and Rubin architecture enable 35X lower compute costs, accelerating agentic AI adoption and expanding total addressable market. Key risks include gross margin compression from HBM memory pricing and systemic credit contagion from circular-financed NeoClouds like Nebius.
Nvidia has held the position as the world's biggest company since about a year ago, when it became the first to reach $4 trillion in market value. It soared past former leaders Apple and Microsoft. But in recent days, Apple, which hasn't climbed as much as its peers during the artificial intelligence (AI) boom, has been making a comeback.
And on July 17, Apple even slipped ahead of Nvidia to become – at least for part of the trading session – the world's biggest company. By the end of the day, though, Nvidia returned to the lead with a value of $4.9 trillion. That's compared to $4.89 trillion for Apple.
As these tech giants vie for the position as the world's biggest company, which is the better buy now? Let's find out.
APPLE BRIEFLY OVERTAKES NVIDIA AS WORLD'S MOST VALUABLE COMPANY AMID AI INVESTMENT DOUBTS
Apple even slipped ahead of Nvidia on July 17 to become – at least for part of the trading session – the world's biggest company. (Adam Gray for Fox News Digital)
The case for NvidiaNvidia stock has soared more than 300% over the past three years amid excitement about its position in the AI market. The company is the No. 1 designer of graphic processing units (GPUs), the chips used to power AI development and use. This strength, along with Nvidia's full portfolio of related products and services, has generated double- and triple-digit earnings growth in recent years.
For example, in the recent quarter, Nvidia's revenue surged 85% to more than $81 billion, and this was at a high level of profitability on sales, as we can see through the company's gross margin – that figure has exceeded 70% quarter after quarter.
JENSEN HUANG SAYS NVIDIA'S NEW RTX SPARK CHIP WILL REINVENT THE PC
Nvidia stock has soared more than 300% over the past three years. (Patrick T. Fallon/AFP via Getty Images)
Nvidia focuses on innovation, pledging to update its GPUs on an annual basis, and this has helped it stay ahead. The company has also steadily expanded its reach in order to make it the key place to go for anything AI. In the latest quarter, Nvidia announced the upcoming release of its first stand-alone central processing unit (CPU), a move that opens the door to a $200 billion market.
Investors have piled into Nvidia's stock in recent years, understanding that an investment in this company should put them on track to benefit from the AI revolution.
The case for AppleApple shares have advanced – but not as much as those of Nvidia. Over the past three years, Apple has climbed about 70%. The company has been slower to invest in and apply AI than many of its peers – for example, it only began rolling out AI features across its devices in the fall of 2024, and the rollout continues. So, investors aiming to get in on potential AI leaders turned away from Apple and chose companies that were investing more aggressively in the space.
APPLE TO INVEST $30 BILLION IN US CHIP MANUFACTURING
This trend, however, hasn't hurt Apple's earnings growth. In fact, the company has proven itself to be a player investors can count on for progress in this area. Apple has a fantastic moat, or competitive advantage, and this is its brand – customers love the iPhone and won't easily switch to another. In the first quarter, the iPhone 17 was the world's top-selling smartphone, according to Counterpoint Research.
Apple shares have climbed about 70% over the past three years. (Apple Inc./Reuters)
Apple also is benefiting from its sales of services, with services revenue reaching records quarter after quarter. After building up more than 2.5 billion active devices over the years, Apple now can count on these devices for recurrent revenue. When customers sign up for digital entertainment or storage, for example, this represents a regular stream of income for the company.
Today, investors may be turning to Apple as they recognize these strengths and as they seek an alternative to companies heavily exposed to AI.
The better buy?Nvidia and Apple have proven their earnings strength and leadership over time. So either makes a solid long-term investment. But if you could only choose one to buy right now, which one should you go for?
Nvidia clearly beats Apple when it comes to valuation. At these levels, the chip giant looks dirt cheap, particularly considering the AI empire it's built and its long-term prospects in the field. It's important to note that even if AI stocks slump temporarily, the AI story remains strong, with the technology already put to use in many areas.
Ticker Security Last Change Change % AAPL APPLE INC. 326.59 -7.15 -2.14% NVDA NVIDIA CORP. 203.28 +0.47 +0.23% So now is a fantastic moment to get in on Nvidia at these levels. That said, cautious investors who aim to avoid any AI turbulence still may prefer picking up Apple shares, as even at today's level, the stock has room to run.
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Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
While both funds provide broad international equity access, State Street SPDR Portfolio MSCI Global Stock Market ETF (SPGM +1.19%) offers a lower expense ratio and broader diversification than iShares MSCI World ETF (URTH +1.00%).
Comparing URTH and SPGM reveals two distinct global strategies. URTH focuses exclusively on companies in developed economies, while SPGM provides all-cap exposure across both developed and emerging markets, potentially serving as a more comprehensive core holding for long-term investors seeking total market representation.
Snapshot (cost & size)MetricURTHSPGMIssueriSharesSPDRShare price$201.10 (as of 2026-07-20)$84.28 (as of 2026-07-20)Expense ratio0.24%0.09%1-yr return (as of 2026-07-20)19.50%23.10%Dividend yield1.40%1.80%Beta0.950.92AUM$8.0B$1.7BBeta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield as of the close of trading on July 20th.
SPGM is the more affordable option with a 0.09% expense ratio compared to 0.24% for URTH. Additionally, SPGM currently offers a higher payout, providing a 0.42 percentage point yield advantage over its competitor.
Performance & risk comparisonMetricURTHSPGMMax drawdown (5 yr)(26.10%)(25.90%)Growth of $1,000 over 5 years (total return)$1,703$1,688What's insideState Street SPDR Portfolio MSCI Global Stock Market ETF replicates the MSCI ACWI IMI Index, providing exposure to 2,927 holdings across developed and emerging markets. This all-cap strategy includes large, mid, and small-cap companies, which may help mitigate country-specific risks. Its largest positions include Nvidia (NVDA +1.85%) at 4.1%, Apple (AAPL +0.50%) at 3.7%, and Microsoft (MSFT 0.97%) at 2.3%. The portfolio is weighted toward technology at 31%, financial services at 17%, and industrials at 13%. It was launched in 2012. State Street SPDR Portfolio MSCI Global Stock Market ETF has paid $1.54 per share over the trailing 12 months, which on its recent ~$84.28 share price works out to a 1.80% yield.
iShares MSCI World ETF focuses on a narrower index of 1,309 companies located solely within developed global economies. This concentration results in a slightly different risk profile compared to more comprehensive global funds. Its largest positions include Nvidia at 5.2%, Apple at 4.8%, and Microsoft at 3%. The fund allocates 31% to technology, 16% to financial services, and 11% to industrials. It was launched in 2012. iShares MSCI World ETF has paid $2.84 per share over the trailing 12 months, which on its recent ~$201.10 share price works out to a 1.40% yield.
Which fund is the better buy?There’s a world of stocks to be had with both of these ETFs, but looking under the hood, there are key differences for investors to weigh.
URTH, the iShares MSCI World ETF, ignores a portion of the world, emerging markets, to focus on the developed world that generates the vast majority of stock market gains. Since the U.S. is such a significant part of the world economy, it accounts for 72% of the holdings of URTH, with the balance in markets like Europe and developed Asian countries, primarily Japan. That also means all its top 10 holdings are U.S. stocks (which is true of its competitor here as well).
SPGM, the State Street SPDR Portfolio MSCI Global Stock Market ETF, accounts for emerging markets, which make up 6% of its portfolio, while the U.S. is 63% of holdings, with the developed world at 31%. SPGM also has exposure to small caps, which URTH doesn’t. SPGM has 5% of its portfolio in small caps, which means weightings to large and mid caps are slightly less than URTH’s.
Given the slightly different approaches to representing global equity markets, it’s no surprise there is a difference in performance. The inclusion of small caps means SPGM has captured some of the rally small cap stocks have been enjoying. Small caps are having their best year since 1991, making up for years of underperformance.
Year-to-date SPGM is 12.3%, compared to 9.9% for URTH, continuing the 1-year besting of URTH noted in the table above. Similarly, over the past three years, SPGM edges URTH 20.2% to 19.4% annualized returns. Longer term, URTH nicks the lead from SPGM by virtue of the small cap sector’s past underperformance, but the differences are only slight. Both funds have returned about 11.5% and 13.25% to investors over the 5-year and 10-year time frames.
Given SPGM also has a small maximum drawdown compared to URTH and a better dividend yield, the best way to play the world of stocks is to add SPGM to your portfolio.
For more guidance on ETF investing, check out the full guide at this link.
For more than three years now, Nvidia (NVDA +1.85%) has been at the center of the most significant technology shift in decades. The company was a linchpin in the early 2023 advent of artificial intelligence (AI) and has been at the heart of the AI boom ever since. The chipmaker has been investing in ancillary products and adjacent industries, thereby expanding its reach. In the latest development, Nvidia significantly increased its position in one area of AI infrastructure: neoclouds.
According to a recent filing with the Securities and Exchange Commission (SEC), Nvidia now has 12% of its investment portfolio in Nebius (NBIS +16.41%), after increasing its stake by more than $3.8 billion. Nvidia previously owned roughly 1.1 million shares of Nebius stock, but boosted its stake by more than 21 million shares and now owns roughly 9.3% of the company.
Let's take a look at what prompted that move and why investors should be paying attention.
Image source: The Motley Fool.
Neocloud 101To understand why this is a big deal, it's worth taking a step back to review what Nebius does. The concept of cloud computing is well known to most investors. The cloud, as it's commonly called, allows internet users to access applications, data storage, data processing, and AI. Cloud use provides improved security, increased flexibility, and scalability, making it an attractive option for many companies. Furthermore, cloud access to AI models and processing has supercharged adoption.
Neocloud operators fill a special function in the AI boom. These companies have stockpiled the graphics processing units (GPUs) and other infrastructure needed to facilitate AI and other high-performance computing. The offering has been dubbed GPU-as-a-service (GPUaaS).
Nebius is one of the leading providers of these services, offering an "AI-centric cloud platform building large, cost-efficient GPU clusters to service the explosive growth of the global AI industry," according to its website.
The company's financial results are telling. In the first quarter, it generated revenue of $399 million, which soared 684% year over year, albeit from a small base. Perhaps more telling is the annualized run rate for its core AI services of $1.92 billion, an increase of 674%.
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Does Huang know something Wall Street doesn't?Nvidia CEO Jensen Huang is the architect of this investment, which includes the ownership of 1.19 million shares previously reported and the addition of 21 million shares from a warrant Nvidia acquired in Q1. In the regulatory filing, Nvidia revealed that it was prohibited from selling the newly acquired shares before Sept. 11, 2026.
This increased investment marks a huge vote of confidence from Nvidia. This shouldn't come as a surprise. At the keynote address at the Computex technology trade show in Taipei, Taiwan, last month, Huang lauded Nebius as one of a select group of "world-class AI clouds." He cited the neocloud's impressive customer list and Nvidia's own experience working with the company. "We worked with Nebius, and they are growing incredibly fast," Huang said.
Don't take his word for it. Neocloud revenues are expected to grow from $25 billion in 2025 to $400 billion by 2031, a compound annual growth rate of 58%, according to a report by Synergy Research Group. The report goes on to say, "Neocloud providers are capturing an increasing share of the fastest-growing segments of the cloud market, fundamentally reshaping the competitive dynamics of AI infrastructure."
Nebius isn't yet profitable, as the company scrambles to build out its infrastructure to meet its soaring customer demand. Wall Street expects revenue growth of 541% in 2026 and 238% in 2027, and 63% of analysts rate the stock a buy or strong buy.
At 64 times sales, the stock certainly doesn't look cheap. That said, Jensen Huang has his finger on the pulse of all things AI and just increased Nvidia's stake by more than 18x, which suggests he believes strongly in Nebius’s future.
That's why investors should be paying attention -- and why Nebius stock is a buy.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Amazon (NASDAQ:AMZN | AMZN Price Prediction) and NVIDIA (NASDAQ:NVDA) just closed earnings on opposite sides of the AI infrastructure trade. Amazon reported Q1 FY2026 on April 29, 2026, with AWS growing 28% and custom silicon crossing a $20 billion annual run rate. NVIDIA followed with Q1 FY2027 revenue of $81.62 billion, up 85.2%. Trainium is the reason to compare them right now.
AWS Sprints, Blackwell Still Roars AWS hit $37.59 billion in revenue, the fastest growth in fifteen quarters. CEO Andy Jassy told investors Amazon now has “over $225 billion in revenue commitments for Trainium”, anchored by Anthropic’s 5 GW deal and OpenAI’s 2 GW commitment starting 2027. Trainium2 is “largely sold out”, with 1.4 million chips already deployed powering most Bedrock inference.
NVIDIA’s Data Center revenue reached $75.25 billion, up 92%, with networking alone up 199%. Jensen Huang called this “the largest infrastructure expansion in human history”. Blackwell 300 is ramping and Vera Rubin is queued behind it. Non-GAAP gross margin held at 75.0%, roughly the mirror image of Amazon’s 50.3%.
The Three Ways Trainium Cracks NVIDIA’s Moat First, the mass volume ramp is happening now. The 3nm Trainium 3 moved from select early customers in early 2026 into mass production, and AWS hiked its Q3 2026 server shipment targets by 20% to 30% to support the ramp. Jassy said Trainium 3 is “30% to 40% more price performant than Trainium2” and nearly fully subscribed.
Second, distribution is changing. Reports emerged in June 2026 that Amazon is in active talks to sell physical Trainium server racks directly to external, sovereign, and co-location data centers. That breaks the AWS-only wall Trainium has lived behind and puts it in NVIDIA’s direct sales lane.
Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
Third, Trainium 4 lands next. The chip is designed to offer 3x the processing power of Trainium 3, is already heavily pre-ordered, and is scheduled for initial deployment in late 2026 to early 2027. Amazon frames the savings bluntly: “tens of billions of dollars of CapEx each year”.
Lens Amazon NVIDIA Core Bet Vertical AI stack GPU platform lock-in Gross Margin 50.3% 75.0% Anchor Commit $225B Trainium OpenAI 10 GW The Rubin Ramp Will Decide 2027 Watch whether Vera Rubin arrives with pricing power intact, or whether hyperscalers use Trainium 4 leverage to negotiate harder. Amazon still plans to deploy 1 million or more NVIDIA GPUs starting in 2026, so this is a share shift, not a replacement. The mix worth watching is inference workloads migrating from GPU to Trainium inside Bedrock’s 125,000 customer base.
Why I Lean Amazon for the Next Eighteen Months Amazon trades at a P/E of 30, the lowest in over a decade, while the chip business compounds at triple digits with anchor customers locked in. NVIDIA is the safer operating model at a 75.0% gross margin, but Polymarket traders see just a 5.8% chance NVDA closes above $220 today. For defensive AI exposure at a premium multiple, NVIDIA still works. For a re-rating catalyst tied to a specific product, Trainium 4 into early 2027 is the cleaner setup.
Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
There are high-yielding ETFs, and then there is the YieldMax Semiconductor Portfolio Options Income ETF (CHPY +5.27%). The fund currently offers a jaw-dropping 40% yield based on its latest weekly distribution payment and current share price, which has tumbled nearly 20% from its recent peak.
Here's a look at whether you'd be missing out by not scooping up this ultra-high-yielding ETF while it's cheaper.
Image source: Getty Images.
An introduction to CHPY The YieldMax Semiconductor Portfolio Options Income ETF is an actively managed fund with two mandates:
Generate current income: CHPY seeks to collect option premium income by selling call spreads on companies it holds. It aims to distribute this income weekly. Provide capital appreciation potential: The fund holds a focused portfolio of 15 to 30 semiconductor stocks to capture upside. The fund has achieved remarkable results with both objectives since its launch in April 2025. CHPY has made a distribution payment every week since its inception. It has grown its weekly payout from $0.362 to $0.5925 per share. However, its payout has been volatile, ranging from $0.3454 to $0.7743 per share.
Meanwhile, unlike many ultra-high-yielding ETFs, this fund has managed to grow its net asset value (NAV) per share. Despite the recent 20% drop, CHPY's share price is up over 57% since its inception. Add in the lucrative weekly options income stream, and this ETF's total return is a robust 165%.
NYSEMKT: CHPYTidal Trust II - YieldMax Semiconductor Portfolio Option Income ETF
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How CHPY delivers such robust returns The secret to CHPY's success lies in its portfolio. The ETF holds a concentrated portfolio of the largest semiconductor stocks. These companies are among the leaders in AI. For example, its top holding is Nvidia (NVDA +0.92%), which accounts for 5.9% of its net assets. Nvidia is growing briskly (85% revenue growth in its fiscal 2027 first quarter) due to robust demand for its AI chips by hyperscale data center operators. This robust growth is driving its share price up, which has surged nearly 19% over the past year. Meanwhile, other top holdings include Intel and Micron Technology, which have seen even bigger rallies of 325% and 680%, respectively. These monster gains are helping CHPY deliver meaningful NAV-per-share appreciation.
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Semiconductor stocks are also highly volatile (nearly five times more than the S&P 500). As a result, their options have high premiums. CHPY is harvesting these high options premiums by selling call spreads (selling a call option above the underlying's current price and buying another one at an even higher price).
For example, it currently holds nearly 310,000 shares of Nvidia. It wrote 3,099 calls that expire later this week at $207.50 per share, and bought the same number of calls at $212.50 per share. With the stock currently below the written call price, this trade is on track to expire at full profit. It makes similar, repeatable trades across all its holdings, generating regular income.
Buy the 20% dip? We've seen the volatility of semiconductor stocks firsthand in recent weeks. Nvidia is currently nearly 14% below its recent high, while Micron and Intel have tumbled 27% and 30%, respectively. This decline has driven the 20% dip in CHPY's share price.
Even with a lower price, CHPY isn't for everyone. The ETF is best for investors with a very high risk tolerance who seek to capitalize on the currently high volatility in semiconductor stocks. It won't last forever, meaning CHPY's monster yield will likely trend down in the future. However, this fund has the potential to turn a small investment into a big-time income stream while offering meaningful upside. Given the risks, investors who do buy CHPY should keep their allocation small and consider reinvesting the currently lucrative weekly income stream into a lower-risk position.
Matt DiLallo has positions in Intel and Tidal Trust II-YieldMax Semiconductor Portfolio Option Income ETF and has the following options: short August 2026 $150 calls on Intel. The Motley Fool has positions in and recommends Intel, Micron Technology, and Nvidia. The Motley Fool has a disclosure policy.
Nvidia shares have risen 22% over the past 12 months coming into Tuesday's session. (Marlena Sloss/Bloomberg)
Nvidia stock was rising early Tuesday amid a broader semiconductor-stock rally. The artificial-intelligence chip company could regain its luster this earnings season, according to analysts at Susquehanna.
IXUS offers broad, low-cost diversification across thousands of non-U.S. stocks with a higher dividend yield, while NZAC's climate-focused approach has delivered slightly better five-year returns.
Shares of Nebius Group NV (NASDAQ:NBIS) gained more than 13% in New York trading this morning after Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) disclosed a passive stake of 9.3% in the company, equivalent to 22.26 million shares.
The stake is not new capital deployment. It reflects Nvidia's existing position of 1.19 million shares combined with a $2 billion prefunded warrant covering roughly 21 million shares.
Nvidia and Nebius already work together on AI infrastructure deployment, fleet management, inference and the design and support of AI factories.
The disclosure formally establishes Nvidia as a major shareholder in a company that has become one of Europe's leading neoclouds.
Nebius has built its reputation providing AI compute infrastructure, striking multiple deals with major technology companies through 2026 as spending on AI infrastructure has surged across the industry.
The disclosure acts as a strategic endorsement from Nvidia, signaling that Nebius holds preferred status as an infrastructure partner within the GPU maker's broader ecosystem.
Silver Range Resources Ltd (TSX-V:SNG, OTC:SLRRF, FRA:8SR) has announced that exploration at its East Goldfield property in Nevada identified two gold-bearing feeder structures that the company believes warrant further investigation, as geological mapping and a new geophysical survey continue to refine drill targets.
The company completed a three-phase sampling program using portable gas-powered diamond drills to investigate several prospective high sulphidation feeder structures, or ledges.
The shallow drilling program, with holes ranging from one to 10 metres in depth, was designed to assess the extent and character of near-surface gold mineralization identified in earlier surface chip and grab samples.
Silver Range said two of the three ledges tested were auriferous. It added that historical exploration at East Goldfield suggests significant gold mineralization on the property is likely blind, with gold-bearing ledges at surface potentially indicating mineralization at depth.
The two auriferous ledges are located between 1,000 and 1,100 metres northwest of the Tom Keane Mine exploration target. The company said that target has been defined by 18 drill holes at an average depth of 100 metres, while previous surface samples from ledges cutting the target returned gold values ranging from trace amounts to 1.83 grams per tonne.
Property-scale geological mapping completed in May identified a zone of deformation that coincides with a strong quartz-alunite alteration anomaly. Silver Range said the deformation zone appears to be an asymmetric south-dipping flower structure that likely predates lithocap formation.
The company said the inferred south-dipping root fault may have served as a conduit for mineralizing fluids and could be the source of much of the known gold mineralization on the property. It also identified residual quartz lithocap in outcrop more than 900 metres west of the Tom Keane target, which it said suggests a large exploration fairway exists south of the exposed quartz-alunite alteration.
Silver Range also announced that Big Sky Geophysics has begun a 60-kilometre three-dimensional induced polarization and resistivity survey covering the full extent of the East Goldfield property. The survey is designed to detect targets to depths of at least 500 metres with sufficient detail to define future drill targets and is expected to be completed by the end of August.
Punters on the prediction platform Polymarket still expect Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) to end July as the world's most valuable company, even after a wobble that briefly cost it the crown.
Traders put the chipmaker's chances at 70%, well ahead of Apple Inc (NASDAQ:AAPL, XETRA:APC) on 29%, with Alphabet Inc (NASDAQ:GOOG), Tesla Inc (NASDAQ:TSLA) and the rest of big tech trailing at less than 2% each.
The market has swung sharply this month.
Nvidia's odds have slid 18 points in recent trading, with Apple gaining the same amount, as a sell-off in semiconductor and AI stocks reshuffled the rankings.
The shift followed a dramatic session late last week.
Apple, worth about $4.8 trillion, briefly overtook Nvidia on $4.92 trillion during Friday trading, reclaiming the top spot for the first time since April 2025.
Nvidia shares fell almost 4% at the open before paring losses, as investors questioned whether the vast sums poured into AI infrastructure will pay off.
Those doubts have intensified as OpenAI and Anthropic, two of the most valuable private companies ever, filed to go public.
Nvidia had led the global rankings since June 2025 and in October became the first company to cross $5 trillion.
Apple, by contrast, has been the standout performer of the so-called Magnificent Seven this year, up more than 22%, helped by a warm reception for its redesigned Siri voice assistant.
Its relatively light spending on AI has ironically become a strength as the chip trade unwinds.
The contest remains close, with barely $1 trillion separating the pair at times on Friday.
Volumes on the Polymarket contract have topped $3.1 million, underlining the interest in a rivalry that has come to symbolise the wider debate over AI valuations.
Both companies remain within touching distance of the $5 trillion mark.
AUSTIN, Texas--(BUSINESS WIRE)--Accelsius, the leader in two-phase, direct-to-chip liquid cooling technology for AI and high-performance computing, today announced results from independent third-party benchmark testing demonstrating that two-phase direct-to-chip liquid cooling better supports NVIDIA's goal of enabling global free cooling with warm facility-water temperatures. The results show that single-phase performance at 45°C facility water can be matched by Accelsius with 54°C inlet water.
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Straight Out Of A Soap Opera: Biotech Exec Arrested After 21 Years On The Run Nebius (NBIS) stock popped on Tuesday after Nvidia (NVDA) disclosed a 9% stake in the cloud computing specialist in a regulatory filing. Nebius shares had advanced 118% in 2026 as of Monday's market close, but have pulled back sharply since mid-June along with other artificial intelligence infrastructure stocks. Nvidia, a maker of artificial intelligence accelerator chips, also is an investor…
Earnings are arguably the most important single number on a company's quarterly financial report. Wall Street clearly dives into all of the other metrics and management's input, but the EPS figure helps cut through all the noise.
The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.
The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.
The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.
The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.
Bringing together a positive earnings ESP alongside a Zacks Rank #3 (Hold) or better has helped stocks report a positive earnings surprise 70% of the time. Furthermore, by using these parameters, investors have seen 28.3% annual returns on average, according to our 10 year backtest.
Stocks with a ranking of #3 (Hold), or 60% of all stocks covered by the Zacks Rank, are expected to perform in-line with the broader market. Stocks with rankings of #2 (Buy) and #1 (Strong Buy), or the top 15% and top 5% of stocks, respectively, should outperform the market; Strong Buy stocks should outperform more than any other rank.
Should You Consider Monolithic Power?Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Monolithic Power (MPWR - Free Report) earns a #2 (Buy) right now and its Most Accurate Estimate sits at $5.94 a share, just nine days from its upcoming earnings release on July 30, 2026.
MPWR has an Earnings ESP figure of +1.00%, which, as explained above, is calculated by taking the percentage difference between the $5.94 Most Accurate Estimate and the Zacks Consensus Estimate of $5.88. Monolithic Power is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
MPWR is part of a big group of Computer and Technology stocks that boast a positive ESP, and investors may want to take a look at Nvidia (NVDA - Free Report) as well.
Nvidia, which is readying to report earnings on August 26, 2026, sits at a Zacks Rank #1 (Strong Buy) right now. Its Most Accurate Estimate is currently $2.10 a share, and NVDA is 36 days out from its next earnings report.
For Nvidia, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $2.09 is +0.52%.
MPWR and NVDA's positive ESP metrics may signal that a positive earnings surprise for both stocks is on the horizon.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
