Key Takeaways NVIDIA shares gained 11.2% in a month, outperforming the broader technology sector and chip peers.NVIDIA's fiscal Q1 revenues surged 85% to $81.62 billion, while non-GAAP EPS jumped 140% to $1.87.NVDA trades at 20.17 times forward earnings, below the technology sector average of 21.50 NVIDIA Corporation (NVDA - Free Report) shares have gained 11.2% over the past month, comfortably beating the broader Zacks Computer and Technology sector, which advanced only 1.6%.
The stock has also outperformed major semiconductor peers such as Intel Corporation (INTC - Free Report) , Marvell Technology, Inc. (MRVL - Free Report) and Advanced Micro Devices, Inc. (AMD - Free Report) , all of which posted declines during the same period. Over the past month, shares of Intel, Marvell Technology and Advanced Micro Devices have plunged 9.4%, 8.9% and 5.4%, respectively.
The recent rally reflects growing investor confidence in NVIDIA’s leadership in artificial intelligence (AI) despite ongoing geopolitical tensions and trade-related uncertainty. This strength is backed by solid business fundamentals rather than market hype. With AI spending continuing to accelerate worldwide, NVIDIA still appears well-positioned for long-term growth.
NVIDIA One-Month Price Return Performance
Image Source: Zacks Investment Research
NVDA’s Financial Results Reinforce the Investment CaseNVIDIA continues to deliver outstanding financial results. In the first quarter of fiscal 2027, revenues surged 85% year over year to $81.62 billion, while non-GAAP earnings per share jumped 140% to $1.87. These numbers demonstrate that demand for NVIDIA's AI products remains exceptionally strong.
Management expects this momentum to continue. For the second quarter of fiscal 2027, NVIDIA projects revenues of approximately $91 billion, representing nearly 95% year-over-year growth. The company also expects a non-GAAP gross margin of around 75%, up from 72.7% a year ago, highlighting its strong pricing power and operating efficiency.
Wall Street also remains optimistic. The Zacks Consensus Estimates point to healthy revenue and earnings growth in both fiscal 2027 and fiscal 2028, suggesting that AI infrastructure spending is still in its early stages.
Image Source: Zacks Investment Research
NVIDIA's cash generation further strengthens the investment story. During the first quarter, the company generated $50.3 billion in operating cash flow and $48.6 billion in free cash flow. Cash, cash equivalents and marketable securities rose to $80.6 billion, up from $62.6 billion in the previous quarter.
Such a massive cash reserve gives NVIDIA tremendous flexibility to expand manufacturing, invest in next-generation AI technologies and reward shareholders. During the quarter, the company repurchased $19.3 billion worth of shares while paying $243 million in dividends.
NVIDIA’s AI Leadership Continues to Drive GrowthThe company remains the clear leader in AI infrastructure. Cloud providers, enterprises and governments continue to invest billions of dollars in building AI data centers, and NVIDIA's GPUs remain the preferred choice for training and running advanced AI models.
The company's newest Blackwell and Vera Rubin AI platforms are seeing strong customer adoption due to their superior performance and energy efficiency. NVIDIA is also strengthening its position beyond GPUs through networking products like InfiniBand, Spectrum-X Ethernet and NVLink, allowing it to capture a larger portion of AI infrastructure spending.
The company's latest numbers highlight this leadership. During the first quarter of fiscal 2027, the data center business generated $75.25 billion in revenues, accounting for roughly 92% of total sales. Revenues from the segment climbed 92% year over year and 21% sequentially, driven by rapid deployment of Blackwell 300 systems and growing networking demand.
Another key advantage is NVIDIA's software ecosystem. CUDA, along with its expanding AI software portfolio, creates high switching costs for customers, making it difficult for competitors to take market share. This competitive advantage extends well beyond hardware and should continue supporting long-term growth.
As AI adoption expands from model training to large-scale inference and enterprise deployment, NVIDIA is positioned to benefit across every major phase of the AI investment cycle.
NVDA’s Valuation Still Looks ReasonableDespite its recent rally, NVIDIA's valuation remains attractive relative to its growth potential.
The stock currently trades at a forward 12-month price-to-earnings (P/E) ratio of 20.13, below the Zacks Computer and Technology sector average of 21.50.
NVIDIA Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
It also trades at a much lower valuation than several semiconductor peers. Intel carries a forward P/E of 57.33, Advanced Micro Devices trades at 45.19, while Marvell Technology is valued at 41.08.
Given NVIDIA's superior revenue growth, industry-leading margins, dominant AI position and exceptional cash generation, its current valuation appears far from excessive.
Conclusion: Buy NVIDIA StockNVIDIA continues to strengthen its leadership in the AI industry through rapid revenue growth, expanding profitability, unmatched cash generation and a growing ecosystem of hardware, networking and software products. Demand for AI infrastructure remains robust, and the company is well-positioned to benefit as enterprises and cloud providers continue increasing AI investments.
Even after its recent 11% rally, NVIDIA's valuation remains reasonable compared with both its growth prospects and many semiconductor peers. With strong execution, an expanding competitive moat and multiple long-term growth drivers, NVIDIA remains one of the best-positioned AI companies in the market. Investors should consider buying NVDA stock for now as the company appears well-equipped to deliver sustained long-term returns.
Currently, NVIDIA carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dai ichi Life Insurance Company Ltd. ve 1. čtvrtletí snížila podíl v NVIDIA o 4,4 % a prodala 51 958 akcií. Po prodeji držela 1 139 088 akcií v hodnotě 198,657 mil. USD.
Dai ichi Life Insurance Company Ltd lowered its position in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 4.4% in the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,139,088 shares of the computer hardware maker’s stock after selling 51,958 shares during the quarter. NVIDIA accounts for approximately 5.7% of Dai ichi Life Insurance Company Ltd’s holdings, making the stock its biggest holding. Dai ichi Life Insurance Company Ltd’s holdings in NVIDIA were worth $198,657,000 at the end of the most recent quarter.
Several other hedge funds and other institutional investors have also made changes to their positions in NVDA. Lifetime Wealth Management P.C. purchased a new stake in shares of NVIDIA in the fourth quarter valued at about $26,000. Longview Financial Advisors Inc. purchased a new position in shares of NVIDIA during the 1st quarter worth approximately $27,000. Longfellow Investment Management Co. LLC raised its position in shares of NVIDIA by 47.9% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock worth $33,000 after purchasing an additional 67 shares during the last quarter. Phillip James Consulting Co. acquired a new position in shares of NVIDIA during the 1st quarter worth approximately $40,000. Finally, Spurstone Advisory Services LLC purchased a new stake in NVIDIA in the 2nd quarter valued at approximately $40,000. Institutional investors and hedge funds own 65.27% of the company’s stock.
Key Stories Impacting NVIDIA Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: SpaceX CEO Elon Musk said the company will build its AI infrastructure exclusively with NVIDIA chips, including the Vera Rubin platform. Musk also discussed ambitious plans for space-based AI computing, prompting investors to anticipate a potentially significant new source of long-term demand. Nvidia Stock Is on the Rise After Elon Musk Says SpaceX Will Exclusively Buy Its Chips Positive Sentiment: Analysts and market commentators are raising their long-term forecasts, with one scenario suggesting NVIDIA could approach $1 trillion in annual revenue if SpaceX delivers even part of Musk’s planned computing buildout. These projections reinforce the bullish view that NVIDIA’s opportunity extends beyond traditional data-center GPUs. Analyst Forecasts NVIDIA Revenue Potential From SpaceX Compute Plans Positive Sentiment: Investor sentiment was also supported by reports that NVIDIA’s B200 systems remain sold out and that AI chip demand continues to substantially exceed available supply. A separate report highlighted a multiyear Blackwell infrastructure agreement with Corvex, adding to evidence of continuing deployment demand. NVIDIA B200 Systems Are Sold Out Positive Sentiment: Before its upcoming earnings release, bullish estimates call for approximately $91.85 billion in quarterly revenue and $2.08 in earnings per share, reflecting nearly 100% year-over-year growth. Recent coverage also points to networking, software, enterprise AI and sovereign AI as increasingly important growth drivers. NVIDIA Stock Ahead of Q2 Earnings Neutral Sentiment: Institutional activity included additions of 698,901 shares by DekaBank and 595,887 shares by Allen Investment Management, while analyst price targets remain well above recent trading levels. However, these 13F disclosures reflect holdings as of June 30 and may not represent current positioning. Negative Sentiment: Risks remain, including Michael Burry’s bearish NVIDIA position, concerns over potentially expensive circular investments in AI companies, U.S. restrictions affecting China-related supply chains, and competition from AMD, custom accelerators and AI companies developing their own chips. Michael Burry Maintains Bearish NVIDIA View Analyst Upgrades and Downgrades NVDA has been the subject of several recent research reports. Itau BBA Securities dropped their price target on NVIDIA from $256.00 to $218.00 in a research report on Wednesday, June 24th. Citigroup began coverage on NVIDIA in a research report on Wednesday, April 15th. They issued a “buy” rating on the stock. JPMorgan Chase & Co. increased their price objective on NVIDIA from $265.00 to $280.00 and gave the company an “overweight” rating in a research note on Thursday, May 21st. Barclays reiterated an “overweight” rating on shares of NVIDIA in a research report on Thursday, May 21st. Finally, CICC Research boosted their target price on shares of NVIDIA from $240.60 to $268.30 and gave the company an “outperform” rating in a research note on Friday, May 22nd. Three analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat, NVIDIA currently has an average rating of “Buy” and a consensus target price of $304.26.
Read Our Latest Stock Analysis on NVIDIA
NVIDIA Stock Up 3.4% Shares of NASDAQ:NVDA opened at $219.22 on Thursday. The company has a current ratio of 3.44, a quick ratio of 2.85 and a debt-to-equity ratio of 0.04. The firm has a market cap of $5.31 trillion, a price-to-earnings ratio of 33.57, a PEG ratio of 0.41 and a beta of 2.23. The stock’s 50-day moving average price is $205.31 and its two-hundred day moving average price is $196.77. NVIDIA Corporation has a 12-month low of $164.07 and a 12-month high of $236.54.
NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, beating analysts’ consensus estimates of $1.76 by $0.11. The company had revenue of $81.61 billion during the quarter, compared to the consensus estimate of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The company’s quarterly revenue was up 85.2% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.81 EPS. On average, research analysts forecast that NVIDIA Corporation will post 8.79 EPS for the current year.
NVIDIA Increases Dividend The business also recently declared a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Thursday, June 4th were given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 0.5%. 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. NVIDIA’s dividend payout ratio (DPR) is currently 15.31%.
NVIDIA announced that its Board of Directors has approved a stock buyback program on Wednesday, May 20th that permits the company to buyback $80.00 billion in shares. This buyback authorization permits the computer hardware maker to repurchase up to 1.5% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board of directors believes its stock is undervalued.
Insiders Place Their Bets In other NVIDIA news, Director Stephen C. Neal sold 15,500 shares of the stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the transaction, the director owned 116,135 shares of the company’s stock, valued at $25,053,803.55. This trade represents a 11.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Mark A. Stevens sold 885,000 shares of NVIDIA 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 completion of the transaction, the director owned 5,207,271 shares in the company, 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 over the last quarter. Company insiders own 3.94% of the company’s stock.
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.
Further Reading Five stocks we like better than NVIDIA SpaceX: Love the Company, But the Stock Is a Harder Call Ulta’s Growth Is Real, But So Are the Risks BWX Technologies Is Turning the AI Power Problem Into a Nuclear Growth Story Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth
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Entropy Technologies LP purchased a new position in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 38,511 shares of the computer hardware maker’s stock, valued at approximately $6,716,000.
A number of other large investors also recently bought and sold shares of NVDA. Diversified Enterprises LLC increased its holdings in NVIDIA by 44.2% during the 4th quarter. Diversified Enterprises LLC now owns 127,604 shares of the computer hardware maker’s stock valued at $23,798,000 after purchasing an additional 39,129 shares in the last quarter. ASR Vermogensbeheer N.V. boosted its stake in NVIDIA by 1.8% in the fourth quarter. ASR Vermogensbeheer N.V. now owns 3,169,377 shares of the computer hardware maker’s stock worth $591,086,000 after purchasing an additional 54,877 shares in the last quarter. Storen Legacy Partners LLC bought a new stake in shares of NVIDIA during the fourth quarter worth $1,350,000. Weaver Capital Management LLC grew its holdings in shares of NVIDIA by 5.5% during the fourth quarter. Weaver Capital Management LLC now owns 85,216 shares of the computer hardware maker’s stock worth $15,893,000 after purchasing an additional 4,439 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its stake in shares of NVIDIA by 3.6% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 26,652,420 shares of the computer hardware maker’s stock valued at $4,970,704,000 after buying an additional 936,506 shares in the last quarter. Hedge funds and other institutional investors own 65.27% of the company’s stock.
Wall Street Analyst Weigh In A number of research firms recently issued reports on NVDA. Craig Hallum lifted their price target on NVIDIA from $245.00 to $275.00 and gave the company a “buy” rating in a report on Thursday, May 21st. Rothschild & Co Redburn raised their price objective on shares of NVIDIA from $280.00 to $300.00 and gave the company a “buy” rating in a research report on Tuesday, May 26th. BNP Paribas Exane boosted their target price on shares of NVIDIA from $270.00 to $285.00 and gave the stock an “outperform” rating in a research note on Thursday, May 21st. Wedbush upped their target price on shares of NVIDIA from $300.00 to $330.00 and gave the stock an “outperform” rating in a research report on Thursday, May 21st. Finally, UBS Group increased their price target on shares of NVIDIA from $275.00 to $280.00 and gave the company a “buy” rating in a research note on Thursday, May 21st. Three research analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of “Buy” and a consensus target price of $304.26.
Check Out Our Latest Analysis on NVIDIA
More NVIDIA News Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: SpaceX CEO Elon Musk said the company will build its AI infrastructure exclusively with NVIDIA chips, including the Vera Rubin platform. Musk also discussed ambitious plans for space-based AI computing, prompting investors to anticipate a potentially significant new source of long-term demand. Nvidia Stock Is on the Rise After Elon Musk Says SpaceX Will Exclusively Buy Its Chips Positive Sentiment: Analysts and market commentators are raising their long-term forecasts, with one scenario suggesting NVIDIA could approach $1 trillion in annual revenue if SpaceX delivers even part of Musk’s planned computing buildout. These projections reinforce the bullish view that NVIDIA’s opportunity extends beyond traditional data-center GPUs. Analyst Forecasts NVIDIA Revenue Potential From SpaceX Compute Plans Positive Sentiment: Investor sentiment was also supported by reports that NVIDIA’s B200 systems remain sold out and that AI chip demand continues to substantially exceed available supply. A separate report highlighted a multiyear Blackwell infrastructure agreement with Corvex, adding to evidence of continuing deployment demand. NVIDIA B200 Systems Are Sold Out Positive Sentiment: Before its upcoming earnings release, bullish estimates call for approximately $91.85 billion in quarterly revenue and $2.08 in earnings per share, reflecting nearly 100% year-over-year growth. Recent coverage also points to networking, software, enterprise AI and sovereign AI as increasingly important growth drivers. NVIDIA Stock Ahead of Q2 Earnings Neutral Sentiment: Institutional activity included additions of 698,901 shares by DekaBank and 595,887 shares by Allen Investment Management, while analyst price targets remain well above recent trading levels. However, these 13F disclosures reflect holdings as of June 30 and may not represent current positioning. Negative Sentiment: Risks remain, including Michael Burry’s bearish NVIDIA position, concerns over potentially expensive circular investments in AI companies, U.S. restrictions affecting China-related supply chains, and competition from AMD, custom accelerators and AI companies developing their own chips. Michael Burry Maintains Bearish NVIDIA View NVIDIA Trading Up 3.4% Shares of NASDAQ NVDA opened at $219.22 on Thursday. The company’s 50 day simple moving average is $205.31 and its 200 day simple moving average is $196.77. NVIDIA Corporation has a fifty-two week low of $164.07 and a fifty-two week high of $236.54. The firm has a market capitalization of $5.31 trillion, a P/E ratio of 33.57, a P/E/G ratio of 0.41 and a beta of 2.23. The company has a debt-to-equity ratio of 0.04, a current ratio of 3.44 and a quick ratio of 2.85.
NVIDIA (NASDAQ:NVDA – Get Free Report) last released its earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, topping analysts’ consensus estimates of $1.76 by $0.11. The firm had revenue of $81.61 billion during 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%. The business’s quarterly revenue was up 85.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.81 EPS. On average, analysts predict that NVIDIA Corporation will post 8.79 EPS for the current year.
NVIDIA Increases Dividend The business also recently declared a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Thursday, June 4th were given a $0.25 dividend. The ex-dividend date was Thursday, June 4th. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. This is an increase from NVIDIA’s previous quarterly dividend of $0.01. NVIDIA’s dividend payout ratio is 15.31%.
NVIDIA declared that its Board of Directors has initiated a share buyback plan on Wednesday, May 20th that permits the company to buyback $80.00 billion in shares. This buyback authorization permits the computer hardware maker to reacquire up to 1.5% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s board believes its shares are undervalued.
Insider Buying and Selling In related news, Director Stephen C. Neal sold 15,500 shares of the company’s stock in a transaction dated Wednesday, June 3rd. The stock was 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 approximately $25,053,803.55. This represents a 11.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Mark A. Stevens sold 885,000 shares of the stock in a transaction dated Thursday, June 18th. The shares were sold at an average price of $210.17, for a total value of $186,000,450.00. Following the completion of the transaction, the director directly owned 5,207,271 shares in the company, valued at $1,094,412,146.07. The trade was a 14.53% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 1,901,125 shares of company stock valued at $410,583,015 over the last three months. Company insiders own 3.94% of the company’s stock.
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 SpaceX: Love the Company, But the Stock Is a Harder Call Ulta’s Growth Is Real, But So Are the Risks BWX Technologies Is Turning the AI Power Problem Into a Nuclear Growth Story Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth 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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Galaxy Digital Inc. purchased a new position in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 5,600 shares of the computer hardware maker’s stock, valued at approximately $977,000.
Other institutional investors and hedge funds have also recently bought and sold shares of the company. Spectrum Financial Alliance Ltd LLC increased its stake in NVIDIA by 3.8% in the first quarter. Spectrum Financial Alliance Ltd LLC now owns 1,395 shares of the computer hardware maker’s stock valued at $243,000 after acquiring an additional 51 shares during the period. Presidio Capital Management LLC lifted its stake in 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 purchasing an additional 53 shares during the period. LMG Wealth Partners LLC boosted its holdings in NVIDIA by 0.7% during 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 in the last quarter. Vision Financial Markets LLC grew its stake in shares of NVIDIA by 1.2% in the 3rd quarter. Vision Financial Markets LLC now owns 4,640 shares of the computer hardware maker’s stock valued at $866,000 after purchasing an additional 53 shares during the period. Finally, JGP Global Gestao de Recursos Ltda. raised its holdings in shares of NVIDIA by 2.3% in the 4th quarter. JGP Global Gestao de Recursos Ltda. now owns 2,402 shares of the computer hardware maker’s stock worth $448,000 after buying an additional 55 shares in the last quarter. Institutional investors own 65.27% of the company’s stock.
Analyst Upgrades and Downgrades NVDA has been the topic of several recent analyst reports. The Goldman Sachs Group reaffirmed a “buy” rating and issued a $285.00 price target (up from $250.00) on shares of NVIDIA in a research note on Wednesday, May 20th. Raymond James Financial reissued a “strong-buy” rating and set a $330.00 price objective on shares of NVIDIA in a report on Thursday, May 21st. Bank of America restated a “buy” rating and issued a $350.00 target price (up from $320.00) on shares of NVIDIA in a research note on Thursday, May 21st. HSBC reiterated a “buy” rating and set a $325.00 target price (up from $295.00) on shares of NVIDIA in a research report on Tuesday, May 19th. Finally, Citigroup initiated coverage on shares of NVIDIA in a report on Wednesday, April 15th. They set a “buy” rating for the company. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Buy” and an average price target of $304.26.
Check Out Our Latest Analysis on NVIDIA
Insiders Place Their Bets In other news, Director John Dabiri sold 625 shares of the firm’s stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $214.00, for a total transaction of $133,750.00. Following the sale, the director owned 14,163 shares of the company’s stock, valued at $3,030,882. This trade represents a 4.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen C. Neal sold 15,500 shares of the company’s stock in a transaction that occurred on Wednesday, June 3rd. The shares were sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the completion of the transaction, the director 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 SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 1,901,125 shares of company stock worth $410,583,015. Corporate insiders own 3.94% of the company’s stock.
More NVIDIA News Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: SpaceX CEO Elon Musk said the company will build its AI infrastructure exclusively with NVIDIA chips, including the Vera Rubin platform. Musk also discussed ambitious plans for space-based AI computing, prompting investors to anticipate a potentially significant new source of long-term demand. Nvidia Stock Is on the Rise After Elon Musk Says SpaceX Will Exclusively Buy Its Chips Positive Sentiment: Analysts and market commentators are raising their long-term forecasts, with one scenario suggesting NVIDIA could approach $1 trillion in annual revenue if SpaceX delivers even part of Musk’s planned computing buildout. These projections reinforce the bullish view that NVIDIA’s opportunity extends beyond traditional data-center GPUs. Analyst Forecasts NVIDIA Revenue Potential From SpaceX Compute Plans Positive Sentiment: Investor sentiment was also supported by reports that NVIDIA’s B200 systems remain sold out and that AI chip demand continues to substantially exceed available supply. A separate report highlighted a multiyear Blackwell infrastructure agreement with Corvex, adding to evidence of continuing deployment demand. NVIDIA B200 Systems Are Sold Out Positive Sentiment: Before its upcoming earnings release, bullish estimates call for approximately $91.85 billion in quarterly revenue and $2.08 in earnings per share, reflecting nearly 100% year-over-year growth. Recent coverage also points to networking, software, enterprise AI and sovereign AI as increasingly important growth drivers. NVIDIA Stock Ahead of Q2 Earnings Neutral Sentiment: Institutional activity included additions of 698,901 shares by DekaBank and 595,887 shares by Allen Investment Management, while analyst price targets remain well above recent trading levels. However, these 13F disclosures reflect holdings as of June 30 and may not represent current positioning. Negative Sentiment: Risks remain, including Michael Burry’s bearish NVIDIA position, concerns over potentially expensive circular investments in AI companies, U.S. restrictions affecting China-related supply chains, and competition from AMD, custom accelerators and AI companies developing their own chips. Michael Burry Maintains Bearish NVIDIA View NVIDIA Trading Up 3.4% Shares of NASDAQ NVDA opened at $219.22 on Thursday. NVIDIA Corporation has a fifty-two week low of $164.07 and a fifty-two week high of $236.54. The firm has a market capitalization of $5.31 trillion, a P/E ratio of 33.57, a P/E/G ratio of 0.41 and a beta of 2.23. 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 company’s 50 day simple moving average is $205.31 and its 200 day simple moving average is $196.77.
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, topping the consensus estimate of $1.76 by $0.11. The company had revenue of $81.61 billion during the quarter, compared to analyst estimates of $78.42 billion. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The company’s revenue for the quarter was up 85.2% compared to the same quarter last year. During the same period in the previous year, the company earned $0.81 EPS. On average, analysts predict that NVIDIA Corporation will post 8.79 EPS for the current year.
NVIDIA Increases Dividend The firm also recently announced a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Thursday, June 4th were issued a dividend of $0.25 per share. This is a boost from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 annualized dividend and a yield of 0.5%. The ex-dividend date was Thursday, June 4th. NVIDIA’s dividend payout ratio is presently 15.31%.
NVIDIA announced that its board has initiated a stock repurchase program on Wednesday, May 20th that authorizes the company to buyback $80.00 billion in outstanding shares. This buyback authorization authorizes the computer hardware maker to buy up to 1.5% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board believes its stock is undervalued.
NVIDIA Company Profile (Free Report)
NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.
The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.
Further Reading Five stocks we like better than NVIDIA SpaceX: Love the Company, But the Stock Is a Harder Call Ulta’s Growth Is Real, But So Are the Risks BWX Technologies Is Turning the AI Power Problem Into a Nuclear Growth Story Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Want to see what other hedge funds are holding NVDA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVIDIA Corporation (NASDAQ:NVDA – Free Report).
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Nvidia potichu buduje nový tým pro bezpečnost a zabezpečení AI, který bude před nasazením vyhodnocovat AI agenty a opravovat zranitelnosti softwaru. Tahle sázka zapadá do jejího důrazu na open-weight modely a AI agenty.
Nvidia CEO Jensen Huang. Bloomberg/Getty Images Nvidia is quietly assembling a new AI safety and security engineering team, according to a cluster of job listings posted late last month.
The company is hiring a distinguished engineer to serve as a "founding technical leader" for the "newly assembled team," as well as a security research engineer, an evaluation engineer, and a senior manager. The team will evaluate AI agents before they're deployed and build AI-powered tools to patch software vulnerabilities, according to the job listings.
The hiring suggests Nvidia is making AI safety a bigger priority as it bets on a future shaped by open-weight models and AI agents. Open-weight models make their trained "weights" — which determine how they behave — publicly available, even if their training data and source code stay private.
The team is described in one listing as "rooted in the firm belief that open-weight models, transparency, and broad scientific scrutiny are foundational to American AI leadership and cybersecurity defense."
Nvidia did not respond to a request for comment from Business Insider.
Nvidia's case for open modelsIn recent months, Nvidia has steadily elevated its public messaging around open-weight AI models, which stand in contrast to the closed systems built by companies like OpenAI and Anthropic.
In his first post on X last month, Nvidia CEO Jensen Huang shared a letter urging US policymakers to support open models, saying that they "strengthen safety and cybersecurity."
Days later, Nvidia announced it had become a founding member of the Open Secure AI Alliance — a group building open-source security tools for AI. The job listings for the chipmaker's AI safety team appeared prior to this announcement and describe many of the same responsibilities.
The alliance includes 120 companies, such as Microsoft, Palantir, SpaceX, and Hugging Face, which recently relied on an open model to respond to a high-profile security incident.
While critics say open models are more accessible to bad actors, proponents say they bolster innovation through competition and improve security through transparency and collective action.
AI safety sellsThe push toward open models and AI security isn't just philosophical; it reflects key business incentives for Nvidia.
Open models put AI into the hands of far more customers, in turn creating more demand for Nvidia's AI chips needed to power it.
Safety is also critical as Nvidia pushes for broader business adoption of AI, and companies weigh how best to deploy it.
As AI shifts from chatbots to agents that can access sensitive company data and take real-world actions, trust could become the linchpin for widespread adoption.
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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.
Nvidia za 12 měsíců zvýšila výnosy o 71 % na 253 miliard USD a zisk více než zdvojnásobila. Akcie se přesto obchodují asi za 21násobek forwardového zisku na akcii.
Over the past 12 months, Nvidia (NVDA +3.44%) grew revenue 71% to $253 billion and more than doubled its net income, to about $160 billion. The stock, meanwhile, trades at about 21 times forward earnings (the profits the company is expected to produce over the next year) as of this writing.
That's the kind of price tag the market usually puts on a mature business with ordinary prospects -- not on the largest company in the stock market, worth about $5.1 trillion, while its revenue climbs 71% a year. A price like this says the market expects the extraordinary part of Nvidia's growth to end, and to end fairly soon.
I think that bet overshoots. Here's a closer look at why.
Image source: The Motley Fool.
Growth is moving the wrong way for the skeptics In the quarter Nvidia reported a year ago, revenue grew 56% year over year. In the fiscal first quarter of 2027 (the period ended April 26), revenue grew 85% year over year to $81.6 billion. For perspective, that's more revenue in one quarter than Nvidia generated in its entire fiscal 2024. And management's guidance calls for revenue of about $91 billion in the fiscal second quarter, nearly double the $46.7 billion the company generated in the same period a year earlier.
Guidance is a forecast, not a result, and forecasts can miss. But it's management's most concrete signal about demand, and it points up.
In other words, growth isn't decelerating toward that mature-company price tag. It has been accelerating away from it.
The engine of all this is the data center business, which supplies the chips and networking gear behind artificial intelligence (AI) computing. Its revenue rose 92% year over year to $75.2 billion in the fiscal first quarter.
Profitability kept pace, too. Nvidia's gross margin came in near 75%, and non-GAAP (adjusted) earnings per share rose 140% year over year to $1.87.
Alongside the results, Nvidia raised its quarterly dividend from a penny per share to $0.25 and announced an $80 billion buyback authorization. That's a small dividend, but it says a lot about how much cash the business now generates.
"The buildout of AI factories -- the largest infrastructure expansion in human history -- is accelerating at extraordinary speed," CEO Jensen Huang said in the company's fiscal first-quarter earnings release.
Management's tone could prove too optimistic, of course. But the numbers, so far, keep agreeing with it.
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Priced as if the surge is already over Now look at the price. Shares trade around $210 as of this writing, below the $236.54 they reached within the past year, even as the results kept strengthening. At about 21 times forward earnings, the market expects Nvidia to earn about $10 per share over the next year -- up more than 50% from the $6.53 it earned over the trailing 12 months. So even the skeptical price concedes next year.
The skepticism is aimed at everything after that. When the market pays 21 times forward earnings for an average large company, it's paying for modest, dependable growth. Applied to Nvidia, the same price treats the years beyond the next one as ordinary, as if growth flattens out quickly once the current wave of AI spending passes.
Maybe it does. Semiconductors have always been cyclical, and some of Nvidia's biggest customers are designing chips of their own. If AI spending pauses, a stock valued on next year's earnings could still get hit hard.
Investors should take that possibility seriously. After all, it's the strongest argument for caution here, and it's probably the reason the shares don't command a premium price despite premium growth.
But there's a difference between growth slowing and growth stopping, and today's valuation sits closer to the second. Nvidia's own guidance implies the quarter it reports next nearly doubled year over year. And if growth a few years out lands anywhere near respectable (say, 20% or 30% instead of zero), then today's buyer paid an ordinary price for what could be an extraordinary stretch of compounding.
I think the market has the direction right and the timing wrong. Growth this fast will cool eventually -- it always does. But a price built for a company whose growth is cooling now doesn't match the evidence, which keeps pointing the other way. I like the stock here. I'd just keep the position sized for the swings that come with a cyclical business.
Sam Altman řekl, že AI vstoupila do „singularity“, což může dál zvýšit poptávku po hardwaru a softwarových produktech Nvidia a cloudových a softwarových produktech Microsoftu. Nvidia už těží z růstu datových center, zatímco Microsoft zrychluje růst Azure a Copilotu.
OpenAI CEO Sam Altman says artificial intelligence has entered the "singularity," a stage where AI progress could accelerate rapidly.
While that description can prove premature, increasingly capable models could still boost demand for Nvidia's (NVDA +3.44%) AI-optimized hardware and software offerings and Microsoft's (MSFT -1.09%) cloud and software products.
Image source: Getty Images.
On the Relentless podcast, Sam Altman said, "We're now, like, in the singularity." In its traditional sense, the singularity is the point in time when AI begins creating increasingly intelligent systems so quickly that progress becomes difficult for humans to predict or control.
Altman appears to be using "singularity" more broadly. Current AI can write code, find security flaws, and help researchers improve models. But there is no public evidence that it can independently design, train, and deploy increasingly capable successor systems.
OpenAI still treats AI self-improvement as an advanced capability that models must be tested for, rather than something they can already do reliably. Anthropic treats fully automated AI research and rapid acceleration in AI development as risks to monitor rather than established milestones.
Nvidia could win before the singularity arrives More capable AI models can increase the computing needed both to build them and to run them. This, in turn, drives demand for advanced processing and networking chips and high bandwidth memory.
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Nvidia is already benefiting from this trend. In the first quarter of fiscal 2027 (ending April 26, 2026), data center revenue rose 92% year over year to $75.2 billion. The company claimed that its new Dynamo software can help Blackwell chips process AI requests up to 7 times faster. The company's next-generation Vera Rubin systems are also moving into full production to run AI agents that handle longer and more complex tasks.
While increasing efficiency can limit Nvidia's growth by requiring fewer chips, lower costs could encourage much wider use of AI agents and reasoning models. Hence, Nvidia will benefit only if overall AI usage grows faster than the pace at which computing becomes more efficient. Custom chips from Microsoft, Alphabet, and Amazon add another competitive risk.
Microsoft can also turn stronger AI into revenue Microsoft can monetize stronger AI through Azure cloud infrastructure, its stake in OpenAI, and Microsoft 365 Copilot.
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The AI business is already gaining traction. In the fourth quarter of fiscal 2026 (ending June 30, 2026), Azure and other cloud services revenue rose 43% year over year. Microsoft 365 Copilot also surpassed 30 million paid users.
Microsoft does not own OpenAI, but is a primary cloud partner and a major shareholder. Microsoft will also receive a share of OpenAI's revenue through 2030 and can use its models and products under a nonexclusive license through 2032.
Microsoft, however, must balance the cost of supporting its AI growth. The company spent $35.8 billion on property, plant, and equipment expenses in the fourth quarter, more than double the amount in the same quarter of the prior year. Hence, the company needs to generate enough revenue to cover these rising infrastructure costs and deliver attractive returns.
Which stock benefits more? Nvidia and Microsoft are trading at 15.6 times and 20.3 times their forward earnings, respectively.
Nvidia looks more attractive today, provided overall AI usage continues to grow faster than improvements in computing efficiency and competition from custom chips.
Alcosta Capital Management Inc. trimmed its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 4.9% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 115,280 shares of the computer hardware maker’s stock after selling 5,968 shares during the period. NVIDIA comprises about 15.3% of Alcosta Capital Management Inc.’s portfolio, making the stock its largest position. Alcosta Capital Management Inc.’s holdings in NVIDIA were worth $20,105,000 at the end of the most recent quarter.
Other institutional investors have also added to or reduced their stakes in the company. State Street Corp boosted its holdings in NVIDIA by 1.2% in the fourth quarter. State Street Corp now owns 991,480,489 shares of the computer hardware maker’s stock worth $184,911,111,000 after acquiring an additional 11,451,386 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of NVIDIA by 0.6% during the fourth quarter. Geode Capital Management LLC now owns 588,803,093 shares of the computer hardware maker’s stock valued at $109,446,217,000 after acquiring an additional 3,383,441 shares in the last quarter. Norges Bank purchased a new position in shares of NVIDIA in the 4th quarter valued at approximately $62,244,133,000. Bank of America Corp DE raised its position in shares of NVIDIA by 1.5% in the 4th quarter. Bank of America Corp DE now owns 187,181,484 shares of the computer hardware maker’s stock valued at $34,909,347,000 after purchasing an additional 2,849,678 shares during the last quarter. Finally, Legal & General Group Plc boosted its stake in NVIDIA by 1.5% in the 3rd quarter. Legal & General Group Plc now owns 181,203,035 shares of the computer hardware maker’s stock worth $33,808,862,000 after purchasing an additional 2,609,560 shares in the last quarter. Hedge funds and other institutional investors own 65.27% of the company’s stock.
Insider Buying and Selling at NVIDIA In other NVIDIA news, Director Mark A. Stevens sold 885,000 shares of the business’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 value of $186,000,450.00. Following the completion of the transaction, the director directly owned 5,207,271 shares of the company’s stock, valued at approximately $1,094,412,146.07. The trade was a 14.53% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director John Dabiri sold 625 shares of the company’s stock in a transaction that occurred on Wednesday, May 27th. The stock was sold at an average price of $214.00, for a total value of $133,750.00. Following the completion of the sale, the director owned 14,163 shares in the company, valued at approximately $3,030,882. This represents a 4.23% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 1,901,125 shares of company stock valued at $410,583,015. 3.94% of the stock is owned by company insiders.
NVIDIA Trading Up 2.6% NASDAQ NVDA opened at $211.94 on Wednesday. NVIDIA Corporation has a 1 year low of $164.07 and a 1 year high of $236.54. 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 company has a market capitalization of $5.13 trillion, a PE ratio of 32.46, a P/E/G ratio of 0.40 and a beta of 2.23. The company has a fifty day moving average of $205.18 and a 200 day moving average of $196.55.
NVIDIA (NASDAQ:NVDA – Get Free Report) last announced its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share 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 the consensus estimate of $78.42 billion. During the same period last year, the firm earned $0.81 EPS. The firm’s revenue for the quarter was up 85.2% compared to the same quarter last year. Research analysts forecast that NVIDIA Corporation will post 8.79 earnings per share for the current year.
NVIDIA announced that its board has approved a stock buyback plan on Wednesday, May 20th that permits the company to buyback $80.00 billion in outstanding shares. This buyback authorization permits the computer hardware maker to buy up to 1.5% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s board believes its shares are undervalued.
NVIDIA Increases Dividend The business also recently declared a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Thursday, June 4th were given a dividend of $0.25 per share. This is an increase from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 annualized dividend and a yield of 0.5%. The ex-dividend date was Thursday, June 4th. NVIDIA’s dividend payout ratio (DPR) is 15.31%.
Key Headlines Impacting NVIDIA Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: Elon Musk said SpaceX will build “exclusively” on NVIDIA’s Vera Rubin platform, providing a potentially significant high-profile customer commitment and strengthening confidence in demand for NVIDIA’s next-generation systems. Musk Praises Vera Rubin Platform on SpaceX Earnings Call, Nvidia Stock Climbs Positive Sentiment: Corvex secured a multi-year agreement for Blackwell GPU infrastructure, including liquid-cooled clusters, Quantum-2 InfiniBand and high-speed storage. The deployment adds another large-scale Blackwell installation without issuing new shares. Nvidia Stock Surges as Corvex Secures Multi-Year Blackwell GPU Deal Positive Sentiment: Anthropic reportedly signed a six-year, $10 billion computing agreement with NVIDIA-backed Volta Infra. The arrangement could support demand for Vera Rubin systems and validates the growth of AI cloud infrastructure. Anthropic Inks $10B Computing Deal With Nvidia-Backed Volta Infra Positive Sentiment: Reports describing a roughly 12-to-1 demand-to-supply imbalance, scarce chips and strong chip resale values reinforced the view that NVIDIA retains pricing power amid the AI buildout. NVIDIA Facing 12-to-1 Demand to Supply Positive Sentiment: NVIDIA’s Open Secure AI Alliance has expanded to more than 120 companies and is developing shared security standards, potentially broadening NVIDIA’s influence across the AI software ecosystem. Nvidia’s Open Secure AI Alliance Shows Progress Neutral Sentiment: Export controls are creating a gray market in Southeast Asia, where buyers use proxy cloud access to obtain NVIDIA-based compute. This signals inelastic demand but also highlights continuing regulatory and geopolitical risks. The AI Chip Blockade Is Creating a Shadow Market Negative Sentiment: Investor Michael Burry reportedly increased put-option exposure to NVIDIA, Micron and semiconductor ETFs, renewing concerns that AI spending expectations and valuations may be vulnerable to a correction. Michael Burry’s Latest Bet Puts Nvidia’s AI Boom on Trial Negative Sentiment: Analysts continue to warn that custom chips, AI inference workloads and software capable of rewriting code could gradually weaken NVIDIA’s CUDA advantage and pressure future margins. Analysts Set New Price Targets Several analysts have weighed in on NVDA shares. BTIG Research started coverage on shares of NVIDIA in a research report on Wednesday, April 15th. They set a “buy” rating on the stock. BNP Paribas Exane lifted their price objective on shares of NVIDIA from $270.00 to $285.00 and gave the stock an “outperform” rating in a research note on Thursday, May 21st. Cantor Fitzgerald reissued an “overweight” rating and set a $350.00 price objective on shares of NVIDIA in a report on Thursday, May 21st. New Street Research cut their target price on NVIDIA from $343.00 to $340.00 in a research report on Thursday, May 21st. Finally, CICC Research upped their target price on NVIDIA from $240.60 to $268.30 and gave the company an “outperform” rating in a research report on Friday, May 22nd. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Buy” and an average price target 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.
Featured Articles Five stocks we like better than NVIDIA System Upgrade: First Internet Bancorp Options Surge AI Security Breaches Raise New Risks for Microsoft and Amazon’s Agent Push The AI Chip Blockade Is Creating a Shadow Market Grab Holdings Stock Forms Bottom After Strong Beat-and-Raise Quarter
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Bowen Hanes & Co. Inc. reduced its holdings in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 18.4% in the first quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 609,815 shares of the computer hardware maker’s stock after selling 137,730 shares during the period. NVIDIA makes up 2.6% of Bowen Hanes & Co. Inc.’s portfolio, making the stock its 6th largest holding. Bowen Hanes & Co. Inc.’s holdings in NVIDIA were worth $106,352,000 as of its most recent SEC filing.
A number of other hedge funds have also bought and sold shares of NVDA. Spectrum Financial Alliance Ltd LLC increased its stake in NVIDIA by 3.8% in the 1st quarter. Spectrum Financial Alliance Ltd LLC now owns 1,395 shares of the computer hardware maker’s stock worth $243,000 after buying an additional 51 shares during the period. Presidio Capital Management LLC grew its holdings in NVIDIA by 0.4% during the 4th 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 in the last quarter. LMG Wealth Partners LLC raised its holdings in shares of NVIDIA by 0.7% in the 4th quarter. LMG Wealth Partners LLC now owns 7,649 shares of the computer hardware maker’s stock valued at $1,427,000 after purchasing an additional 53 shares in the last quarter. Vision Financial Markets LLC lifted its position in shares of NVIDIA by 1.2% in the 3rd 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. Finally, JGP Global Gestao de Recursos Ltda. boosted 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 valued at $448,000 after purchasing an additional 55 shares in the last quarter. Institutional investors own 65.27% of the company’s stock.
NVIDIA Price Performance Shares of NASDAQ NVDA opened at $211.94 on Wednesday. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44. The company has a market cap of $5.13 trillion, a PE ratio of 32.46, a P/E/G ratio of 0.40 and a beta of 2.23. The business has a 50-day simple moving average of $205.18 and a two-hundred day simple moving average of $196.55. 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 posted its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.76 by $0.11. The firm had revenue of $81.61 billion for the quarter, compared to the consensus estimate of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The company’s revenue for the quarter was up 85.2% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.81 earnings per share. As a group, equities analysts expect that NVIDIA Corporation will post 8.79 EPS for the current fiscal year.
NVIDIA declared that its Board of Directors has initiated a stock repurchase program on Wednesday, May 20th that permits the company to repurchase $80.00 billion in shares. This repurchase authorization permits the computer hardware maker to repurchase up to 1.5% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.
NVIDIA Increases Dividend The business also recently declared a quarterly dividend, which was paid on Friday, June 26th. Shareholders of record on Thursday, June 4th were issued a $0.25 dividend. This is an increase from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend was Thursday, June 4th. NVIDIA’s dividend payout ratio is 15.31%.
Insiders Place Their Bets In other news, Director John Dabiri sold 625 shares of NVIDIA stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total transaction of $133,750.00. Following the completion of the sale, the director directly 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 transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 885,000 shares of the business’s stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the sale, the director directly owned 5,207,271 shares in the company, valued at $1,094,412,146.07. This trade represents a 14.53% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 1,901,125 shares of company stock valued at $410,583,015. Insiders own 3.94% of the company’s stock.
Analysts Set New Price Targets A number of brokerages recently commented on NVDA. Citigroup assumed coverage on shares of NVIDIA in a research note on Wednesday, April 15th. They issued a “buy” rating for the company. Melius Research set a $400.00 price target on NVIDIA in a report on Thursday, May 21st. CICC Research boosted their price target on NVIDIA from $240.60 to $268.30 and gave the stock an “outperform” rating in a research report on Friday, May 22nd. Argus upped their price objective on NVIDIA from $220.00 to $270.00 and gave the stock a “buy” rating in a research note on Thursday, May 21st. Finally, Wall Street Zen downgraded NVIDIA from a “strong-buy” rating to a “buy” rating in a research report on Saturday, July 4th. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, NVIDIA presently has a consensus rating of “Buy” and a consensus price target of $304.26.
View Our Latest Stock Report on NVIDIA
NVIDIA News Summary Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: Elon Musk said SpaceX will build “exclusively” on NVIDIA’s Vera Rubin platform, providing a potentially significant high-profile customer commitment and strengthening confidence in demand for NVIDIA’s next-generation systems. Musk Praises Vera Rubin Platform on SpaceX Earnings Call, Nvidia Stock Climbs Positive Sentiment: Corvex secured a multi-year agreement for Blackwell GPU infrastructure, including liquid-cooled clusters, Quantum-2 InfiniBand and high-speed storage. The deployment adds another large-scale Blackwell installation without issuing new shares. Nvidia Stock Surges as Corvex Secures Multi-Year Blackwell GPU Deal Positive Sentiment: Anthropic reportedly signed a six-year, $10 billion computing agreement with NVIDIA-backed Volta Infra. The arrangement could support demand for Vera Rubin systems and validates the growth of AI cloud infrastructure. Anthropic Inks $10B Computing Deal With Nvidia-Backed Volta Infra Positive Sentiment: Reports describing a roughly 12-to-1 demand-to-supply imbalance, scarce chips and strong chip resale values reinforced the view that NVIDIA retains pricing power amid the AI buildout. NVIDIA Facing 12-to-1 Demand to Supply Positive Sentiment: NVIDIA’s Open Secure AI Alliance has expanded to more than 120 companies and is developing shared security standards, potentially broadening NVIDIA’s influence across the AI software ecosystem. Nvidia’s Open Secure AI Alliance Shows Progress Neutral Sentiment: Export controls are creating a gray market in Southeast Asia, where buyers use proxy cloud access to obtain NVIDIA-based compute. This signals inelastic demand but also highlights continuing regulatory and geopolitical risks. The AI Chip Blockade Is Creating a Shadow Market Negative Sentiment: Investor Michael Burry reportedly increased put-option exposure to NVIDIA, Micron and semiconductor ETFs, renewing concerns that AI spending expectations and valuations may be vulnerable to a correction. Michael Burry’s Latest Bet Puts Nvidia’s AI Boom on Trial Negative Sentiment: Analysts continue to warn that custom chips, AI inference workloads and software capable of rewriting code could gradually weaken NVIDIA’s CUDA advantage and pressure future margins. NVIDIA Company Profile (Free Report)
NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.
The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.
Recommended Stories Five stocks we like better than NVIDIA System Upgrade: First Internet Bancorp Options Surge AI Security Breaches Raise New Risks for Microsoft and Amazon’s Agent Push The AI Chip Blockade Is Creating a Shadow Market Grab Holdings Stock Forms Bottom After Strong Beat-and-Raise Quarter
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AMD klesá o 6 % navzdory rekordním tržbám za 2. čtvrtletí 2026 a lepšímu výhledu na 3. čtvrtletí. NVIDIA přidává 4 % poté, co ji SpaceX vybrala jako exkluzivního dodavatele AI čipů pro program Starmind orbital compute.
Shares of Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction) are down 6% to $486.60 Wednesday morning despite a record Q2 2026 report after Tuesday’s close. Meanwhile, NVIDIA (NASDAQ:NVDA) stock is climbing 4% to $221.33 after SpaceX (NASDAQ:SPCX) named the chip giant its exclusive AI chip supplier for the new Starmind orbital compute program.
The split reaction is sorting the AI trade into clear winners and losers today. Intel (NASDAQ:INTC) stock is down 1% to $101.10 with no company-specific catalyst, Broadcom (NASDAQ:AVGO) shares are up 1% at $423.59, and the iShares Semiconductor ETF (NASDAQ:SOXX) is unchanged/flat at $540.91.
For context, SpaceX stock cratered 12% this morning after the company’s first public earnings report.
A Record Quarter That Wasn’t Enough AMD reported Q2 2026 revenue of $11.5 billion, up 50% year over year (YoY), with non-GAAP EPS of $1.66 topping the roughly $1.61 consensus. The company’s data center revenue more than doubled YoY to $6.7 billion and now represents 58% of total sales.
AMD CEO Lisa Su declared, “We delivered an excellent quarter, with record revenue and profitability as Data Center revenue more than doubled year-over-year.” Her tone stayed upbeat despite the after-hours selloff.
Furthermore, AMD’s Q3 guidance came in at about $13 billion (plus or minus $300 million), above the roughly $12.5 billion consensus but below whisper numbers near $14 billion. The company’s capex jumped to $808 million from $282 million a year earlier, and management flagged a softer second-half PC market.
AMD stock was already priced for perfection heading into the earnings print. Shares have more than doubled this year and trade at a rich 152.98x trailing P/E ratio, so a solid beat that wasn’t a blowout disappointed the bulls.
NVIDIA Gets the SpaceX Nod SpaceX founder Elon Musk called NVIDIA’s Vera Rubin the best architecture available and committed SpaceX to NVIDIA chips exclusively for its Starmind orbital compute program. That announcement is a competitive snub for AMD, which had been positioning its Instinct MI450 family as a hyperscaler alternative.
NVIDIA stock trades at a comparatively reasonable 33.86x trailing P/E ratio versus AMD’s 152.98x. The read-through from SpaceX’s massive AI compute spending reinforces the hyperscaler GPU demand narrative that has powered NVIDIA shares this year.
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The Sector Reaction Is Contained Intel stock only declining 1% with no company-specific catalyst today signals that AMD’s selloff isn’t spreading to the broader chip group. Broadcom shares are up 1% and trade at a 66.3x trailing P/E ratio, while the SOXX ETF is unchanged today and trades at a 38.04x P/E ratio.
The SOXX fund holds AMD, NVIDIA, Intel, and Broadcom in a single basket, and the ETF’s unchanged share price suggests that AMD’s issues aren’t sparking a sector-wide selloff. The fund isn’t leveraged, though investors should keep their exposure sized to reflect SOXX’s heavy concentration in the same handful of AI-exposed names.
Intel has no trailing P/E ratio because it isn’t profitable on a trailing 12-month basis, though the company’s AI inferencing pivot has helped Intel shares rally sharply this year. Broadcom’s custom AI accelerator momentum, meanwhile, keeps it a live competitor to both NVIDIA and AMD.
Analysts Stay Bullish as the Bar Stays High Even with today’s drop, sell-side analysts stuck with AMD stock. Wells Fargo raised its AMD price target to $700 from $615 (Overweight), Jefferies to $650 from $640 (Buy), and JPMorgan to $550 from $385 (Neutral). Citi kept AMD as a top Buy pick and KeyBanc stayed Overweight.
TD Cowen and Bernstein both flagged the very high bar heading into the report, which helps explain why a strong quarter still triggered profit-taking. The bull case for AMD stays intact, with the company guiding data-center revenue to more than double in 2027, AI GPUs growing well over 100%, and revenue growth above its 35%-plus target.
Investors can watch for whether AMD stock holds $492 into the close, and whether NVIDIA stock can extend its move as SpaceX’s AI capex figures filter through the sell side. Momentum traders may keep both names active through the afternoon.
The SOXX ETF can serve as a real-time gauge of how much of today’s story is company-specific versus a broader repricing of the AI hardware trade. Stay tuned for any late-day reversal in AMD, along with any sudden changes in Intel and Broadcom shares.
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NVIDIA oznámila tržby ve výši 81,615 miliardy USD, meziročně o 85,23 % více, a uvedla, že systémy B200 jsou vyprodané. CEO Jensen Huang řekl, že rozšiřování AI továren zrychluje mimořádným tempem.
NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) just posted the loudest quarter of the AI cycle. Revenue of $81.615 billion, up 85.23% year over year, and CEO Jensen Huang telling shareholders that “the buildout of AI factories, the largest infrastructure expansion in human history, is accelerating at extraordinary speed.”
Yet shares sit at $211.94, roughly 28% below the $236.26 52-week high. B200 systems are sold out. Can NVIDIA hit $300 by 2027?
What Is Holding NVIDIA Back Right Now The stock is flat over the past month, down 0.3% from mid-July, and up about 13% year to date. That price action lags what an 85% revenue growth story usually delivers.
Two headwinds: China, where management assumed no Data Center compute revenue from China in the Q2 guide with no H20 shipments in Q1 versus $4.6 billion a year ago. Second, sentiment cooled. The composite score fell 17.65 points in the last seven days to 47.51. With a beta of 2.215, NVIDIA amplifies every macro wobble. The fundamentals are strong. The market is digesting.
Wall Street Sees 43% Upside. Our Model Says 22%. Consensus target is $302.83, with 10 Strong Buy, 48 Buy, 2 Hold, and 1 Sell rating. Bullish sentiment sits at 95%. Our model is more measured. Base case of $259.34 implies 22.36% upside at 0.9 confidence, with an optimistic case of $269.94 and conservative $225.78.
Our earnings growth contribution of +0.03 anchors on 2.145 YoY EPS growth that could stay elevated longer than the model assumes, because inference demand is running hotter than any prior cycle. Analysts anchoring to visible orders may still be too conservative.
The Path to $300 Per Share Reaching $300 from today’s price of $211.94 would require a gain of 41.5%. With forward EPS of $8.26, a price of $300 implies a forward P/E of 36x. Our base case of $259.34 already implies 36x, meaning the bold target requires the same multiple applied to higher EPS delivery.
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That path is credible. Q2 guidance points to $91 billion in revenue with $119 billion in supply-related commitments locked in.
Catalysts include SpaceX committing to NVIDIA’s Vera Rubin NVL72 rackscale system both on Earth and in space, hyperscaler capex rising toward $1.2 trillion, and Huang describing an addressable opportunity of $3 to $4 trillion in AI infrastructure spend by the end of the decade. The primary risk is a China escalation that permanently strands the Data Center compute opportunity there.
Where NVIDIA Trades Today vs Its Earnings Power At $211.94 against forward EPS of $8.26, the stock trades near 26x forward earnings. That is cheap for a business compounding revenue at 85% and net income at 210.63% year over year. Shares sit between a 52-week low of $163.85 and high of $236.26.
The ecosystem tape confirms it. AMD (NASDAQ:AMD), Broadcom (NASDAQ:AVGO), Marvell (NASDAQ:MRVL), and Micron (NASDAQ:MU) are rallying alongside NVIDIA as inference demand pulls the entire semiconductor and memory stack higher.
Is $300 Realistic? Here’s My Take A move to $300 requires a 41.5% gain and a forward P/E of 36x. That is an ambitious but achievable stretch.
Three things need to break right: Q2 delivery at or above the $91 billion guide, continued Blackwell and Vera Rubin ramp with no supply hiccup, and any thaw in China policy that reopens even a partial H20 lane. A broader risk-off in mega-cap tech that compresses multiples across the sector would derail it. Returns at this level shouldn’t be expected every year, but we’ve outlined the blueprint for how NVIDIA could reach $300 in 2027.
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Bit Origin uvedla, že jejích prvních 16 serverů NVIDIA Blackwell B300 má dorazit ve 3. čtvrtletí 2026 do Malajsie. Firma se opírá o silnou poptávku po AI infrastruktuře a existující hostingové dohody.
International Data Corporation projects worldwide AI infrastructure spending to reach approximately US$497 billion in 2026, representing growth of approximately 53% as compared to 20251Worldwide AI infrastructure spending projected to exceed US$1 trillion by 2029, representing an average compound annual growth rate (“CAGR”) of approximately 31% for the years 2025-20292Bit Origin’s initial 16-server deployment remains on schedule for the third quarter of 2026 and remains supported by contracted customer demand and established hosting arrangements SINGAPORE, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Bit Origin Ltd (NASDAQ: BTOG) (the “Company”), a company focused on AI computing infrastructure, digital asset innovation, and blockchain-based strategies, today highlighted industry growth projections supporting their continued investment in accelerated computing infrastructure and provided additional context regarding the commercialization framework for its previously announced NVIDIA Blackwell B300 AI server transaction.
Rapidly Expanding AI Infrastructure Market
According to International Data Corporation (“IDC”), worldwide AI infrastructure spending is projected to reach approximately US$497 billion in 2026, representing growth of approximately 53% as compared to 2025.
IDC further projects that worldwide AI infrastructure spending will exceed US$1 trillion by 2029, representing an average CAGR of approximately 31% for the years 2025 through 2029. Within this market, accelerated servers, which are primarily GPU-based systems, are projected to grow at an average CAGR of approximately 42% and account for more than 95% of server AI infrastructure spending by the end of 2029.3
NVIDIA reported that its revenue growth during the first quarter of fiscal 2027 was driven by demand for data center products supporting accelerated computing and AI solutions. For the fiscal quarter ended April 26, 2026, NVIDIA reported record Data Center revenue of US$75.2 billion, representing an increase of approximately 21% from the immediately preceding fiscal quarter ended January 31, 2026.4 NVIDIA’s financial results are presented solely as an indicator of broader industry demand and are not indicative of the Company’s expected performance or financial condition.
The Company believes these developments may reflect growing infrastructure requirements associated with AI training, inference, reasoning, and other advanced computing workloads, although there can be no assurance that the Company will benefit from such developments.
Malaysia’s Expanding Digital Infrastructure Market
Malaysia, where the Company’s initial NVIDIA Blackwell B300 infrastructure is expected to be deployed, is emerging as an important regional destination for data center and cloud computing investment.
According to the Malaysian Investment Development Authority (“MIDA”), Malaysia approved approximately RM144.4 billion, or approximately US$35.3 billion, of data center and cloud computing investments between 2021 and mid-2025. 5
MIDA has also cited projections that Malaysia’s data center market could grow from approximately US$4.04 billion in 2024 to approximately US$13.57 billion by 2030, representing an estimated compound annual growth rate of approximately 22.38%.6
The Company believes Malaysia’s expanding digital infrastructure ecosystem provides a relevant operating environment for its planned deployment. Market-level investment and growth projections, however, do not necessarily indicate demand for the Company’s services or guarantee the successful deployment or commercial performance of its equipment.
Initial NVIDIA Blackwell B300 Deployment
As previously announced, the Company acquired sixteen NVIDIA Blackwell B300 AI servers, together with the benefit of previously executed customer deployment and data center hosting arrangements.
The servers have not yet been delivered or deployed and are currently expected to be delivered during the third quarter of 2026 for deployment at a data center facility in Malaysia.
In connection with the transaction, the Company entered into a five-year management agreement under which an experienced third-party manager is responsible for coordinating the deployment, management, and commercialization of the servers. These responsibilities include coordinating data center hosting, power, network connectivity, equipment maintenance, and commercial utilization.
This operating structure is intended to allow the Company to participate in AI computing infrastructure while relying on specialized third-party capabilities for day-to-day deployment and operation. The Company intends to evaluate the performance of this initial deployment before pursuing additional expansion opportunities.
“Global investment in accelerated computing infrastructure continues to grow as AI workloads become more complex and increasingly compute-intensive,” said Jinghai Jiang, Chairman and Chief Executive Officer of the Company.
“Our immediate focus is on the successful delivery, deployment, and commercialization of our initial NVIDIA Blackwell B300 servers in Malaysia. We believe disciplined execution of this transaction can establish an operating model that may support selective future expansion.”
The Company expects to provide additional updates as material delivery, deployment, and commercialization achievements are met.
About Bit Origin Ltd
Bit Origin Ltd (NASDAQ: BTOG) is a company focused on AI computing infrastructure, digital asset innovation and blockchain-based strategies. The Company is evaluating and pursuing opportunities involving GPU computing, server leasing, storage infrastructure and related digital infrastructure services.
For more information, please visit www.bitorigin.io.
Forward-Looking Statements
This press release contains forward-looking statements regarding, among other matters, the expected delivery, deployment and commercialization of the Company’s NVIDIA Blackwell B300 AI servers; anticipated timing of server delivery during the third quarter of 2026; the performance of customer, hosting, supplier and management arrangements; market demand for AI computing infrastructure; the development of Malaysia’s data center market; the performance of the Company’s third-party management arrangement; the Company’s ability to evaluate or pursue future expansion opportunities; and the Company’s broader strategic plans relating to AI computing infrastructure, digital asset innovation and blockchain-based strategies. Forward-looking statements can generally be identified by the use of words such as “may,” “will,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “project,” “intend,” “forecast,” “target,” “potential,” “continue” or the negative of such terms or other similar expressions, although not all forward-looking statements contain such identifying words.
These forward-looking statements are based on the Company’s current expectations, estimates, projections, beliefs and assumptions and are not guarantees of future performance. These statements involve known and unknown risks, uncertainties and other important factors that may cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Risks and uncertainties that could cause actual results to differ materially include, but are not limited to: the Company’s limited operating history in AI computing infrastructure; the Company’s reliance on a single third-party manager for deployment, management and commercialization of its servers; supplier performance, including the risk that NVIDIA or other suppliers may fail to deliver servers on the anticipated timeline or at all; delivery, installation or deployment delays at the data center facility in Malaysia; data center readiness, including the availability and reliability of power supply, cooling, network connectivity and physical infrastructure; equipment performance, including the risk that the servers may not operate at expected capacity or efficiency; customer demand and the risk that current customer arrangements may not be sustained, renewed or replaced on favorable terms; customer and counterparty credit risk and performance risk; risks related to operating in Malaysia, including regulatory, political, currency and legal risks; power and network availability and associated costs; operating costs that may exceed current estimates; the Company’s need for additional financing and the availability thereof on acceptable terms; general market conditions, including competitive dynamics in the AI infrastructure market; rapid technological developments that could render the Company’s equipment obsolete or less competitive; cybersecurity risks; potential environmental and regulatory compliance costs; and other risks described in the Company’s filings with the U.S. Securities and Exchange Commission, including the Company’s Annual Report on Form 20-F and subsequent filings.
Industry data and projections cited in this press release, including data attributed to International Data Corporation and the Malaysian Investment Development Authority, were prepared by third parties and have not been independently verified by the Company. Such data and projections. Such data and projections are subject to inherent to uncertainty, are based on assumptions that may prove incorrect, and do not necessarily reflect current or future demand for the Company’s services or indicate that the Company will achieve similar growth or operating results. The Company makes no representation or warranty as to the accuracy or completeness of such third-party data.
Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based, except as required by applicable law, including the securities laws of the United States. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements.
Company Contact
Bit Origin Ltd
Mr. Jinghai Jiang
Chairman and Chief Executive Officer
Email: [email protected]
1International Data Corporation, AI Infrastructure Spending Holds Near $90 Billion in Q1 2026 as ARM Overtakes x86 in Accelerated Servers; 2026 Forecast Raised to $497 Billion (July 21, 2026)
2 Id.
3 Id.
4 Nvidia Corporations Quarterly Report on Form 10-Q for the fiscal quarter ended April 26, 2026 – https://www.sec.gov/ix?doc=/Archives/edgar/data/1045810/000104581026000052/nvda-20260426.htm
5 MIDA Insights: Building Resilience Through Localisation: Malaysia’s Next Chapter – https://www.mida.gov.my/building-resilience-through-localisation-malaysias-next-chapter/
6 Malaysian Investment Development Authority, “MIDA Powers Up Malaysia’s Digital Future at Data Centre Nexus” (May 8, 2025) – https://www.mida.gov.my/media-release/mida-powers-up-malaysias-digital-future-at-data-centre-nexus/
Arrowstreet Capital Limited Partnership raised its position in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 19.2% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 31,781,583 shares of the computer hardware maker’s stock after buying an additional 5,129,163 shares during the period. NVIDIA comprises about 3.0% of Arrowstreet Capital Limited Partnership’s portfolio, making the stock its 4th largest holding. Arrowstreet Capital Limited Partnership owned approximately 0.13% of NVIDIA worth $5,542,639,000 at the end of the most recent reporting period.
Several other large investors also recently bought and sold shares of NVDA. Lifetime Wealth Management P.C. acquired a new stake in shares of NVIDIA in the fourth quarter valued at approximately $26,000. Longview Financial Advisors Inc. purchased a new position in shares of NVIDIA during the 1st quarter worth $27,000. Longfellow Investment Management Co. LLC raised its holdings in shares of NVIDIA by 47.9% during the 2nd quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock worth $33,000 after acquiring an additional 67 shares during the period. Phillip James Consulting Co. acquired a new position in shares of NVIDIA during the 1st quarter valued at about $40,000. Finally, Spurstone Advisory Services LLC acquired a new position in shares of NVIDIA during the 2nd quarter valued at about $40,000. 65.27% of the stock is currently owned by hedge funds and other institutional investors.
NVIDIA Stock Performance NASDAQ NVDA opened at $211.94 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 company has a market cap of $5.13 trillion, a P/E ratio of 32.46, a P/E/G ratio of 0.40 and a beta of 2.23. The stock has a 50-day moving average of $205.18 and a two-hundred day moving average of $196.55. NVIDIA Corporation has a 1-year low of $164.07 and a 1-year high of $236.54.
NVIDIA (NASDAQ:NVDA – Get Free Report) last issued its quarterly 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 net margin of 62.97% and a return on equity of 96.94%. The business had revenue of $81.61 billion for the quarter, compared to analysts’ expectations of $78.42 billion. During the same quarter in the prior year, the company earned $0.81 earnings per share. The business’s quarterly revenue was up 85.2% on a year-over-year basis. As a group, analysts anticipate that NVIDIA Corporation will post 8.79 EPS for the current year.
NVIDIA declared that its Board of Directors has initiated a share repurchase program on Wednesday, May 20th that permits the company to repurchase $80.00 billion in shares. This repurchase authorization permits the computer hardware maker to reacquire up to 1.5% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s leadership believes its shares are undervalued.
NVIDIA Increases Dividend The business also recently announced a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Thursday, June 4th were paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 0.5%. 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. NVIDIA’s payout ratio is presently 15.31%.
Insiders Place Their Bets In other NVIDIA news, Director John Dabiri sold 625 shares of the stock in a transaction dated Wednesday, May 27th. The stock was 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 of the company’s stock, valued at $3,030,882. This trade represents a 4.23% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen C. Neal sold 15,500 shares of NVIDIA 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 transaction, the director owned 116,135 shares of the company’s stock, valued at $25,053,803.55. The trade was a 11.77% decrease in their position. 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 in the last quarter. 3.94% of the stock is owned by company insiders.
Analyst Ratings Changes Several equities research analysts recently issued reports on the stock. Sanford C. Bernstein restated a “buy” rating on shares of NVIDIA in a research report on Monday, June 29th. Rosenblatt Securities reiterated a “buy” rating and issued a $325.00 target price on shares of NVIDIA in a report on Thursday, May 21st. CICC Research increased their price target on shares of NVIDIA from $240.60 to $268.30 and gave the company an “outperform” rating in a research note on Friday, May 22nd. Deutsche Bank Aktiengesellschaft restated a “hold” rating and set a $255.00 price target (up from $220.00) on shares of NVIDIA in a report on Thursday, May 21st. Finally, BTIG Research assumed coverage on shares of NVIDIA in a research report on Wednesday, April 15th. They set a “buy” rating on the stock. Three analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, NVIDIA presently has a consensus rating of “Buy” and a consensus target price of $304.26.
Check Out Our Latest Stock Report on NVIDIA
Key NVIDIA News Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: Elon Musk said SpaceX will build “exclusively” on NVIDIA’s Vera Rubin platform, providing a potentially significant high-profile customer commitment and strengthening confidence in demand for NVIDIA’s next-generation systems. Musk Praises Vera Rubin Platform on SpaceX Earnings Call, Nvidia Stock Climbs Positive Sentiment: Corvex secured a multi-year agreement for Blackwell GPU infrastructure, including liquid-cooled clusters, Quantum-2 InfiniBand and high-speed storage. The deployment adds another large-scale Blackwell installation without issuing new shares. Nvidia Stock Surges as Corvex Secures Multi-Year Blackwell GPU Deal Positive Sentiment: Anthropic reportedly signed a six-year, $10 billion computing agreement with NVIDIA-backed Volta Infra. The arrangement could support demand for Vera Rubin systems and validates the growth of AI cloud infrastructure. Anthropic Inks $10B Computing Deal With Nvidia-Backed Volta Infra Positive Sentiment: Reports describing a roughly 12-to-1 demand-to-supply imbalance, scarce chips and strong chip resale values reinforced the view that NVIDIA retains pricing power amid the AI buildout. NVIDIA Facing 12-to-1 Demand to Supply Positive Sentiment: NVIDIA’s Open Secure AI Alliance has expanded to more than 120 companies and is developing shared security standards, potentially broadening NVIDIA’s influence across the AI software ecosystem. Nvidia’s Open Secure AI Alliance Shows Progress Neutral Sentiment: Export controls are creating a gray market in Southeast Asia, where buyers use proxy cloud access to obtain NVIDIA-based compute. This signals inelastic demand but also highlights continuing regulatory and geopolitical risks. The AI Chip Blockade Is Creating a Shadow Market Negative Sentiment: Investor Michael Burry reportedly increased put-option exposure to NVIDIA, Micron and semiconductor ETFs, renewing concerns that AI spending expectations and valuations may be vulnerable to a correction. Michael Burry’s Latest Bet Puts Nvidia’s AI Boom on Trial Negative Sentiment: Analysts continue to warn that custom chips, AI inference workloads and software capable of rewriting code could gradually weaken NVIDIA’s CUDA advantage and pressure future margins. About NVIDIA (Free Report)
NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.
The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.
Read More Five stocks we like better than NVIDIA System Upgrade: First Internet Bancorp Options Surge AI Security Breaches Raise New Risks for Microsoft and Amazon’s Agent Push The AI Chip Blockade Is Creating a Shadow Market Grab Holdings Stock Forms Bottom After Strong Beat-and-Raise Quarter
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Elon Musk says SpaceX is going all in on Nvidia's GPUs. Bloomberg/Getty Images SpaceX says it's ready to be a one-chip supplier company.
On SpaceX's highly anticipated earnings call on Wednesday, CEO Elon Musk said his company was committed to buying graphics processing units from only one place.
"Going forward, we've decided to build exclusively on Nvidia because we think the Vera Rubin architecture is the best architecture," Musk said on the call, talking about his company's compute capacity. "We think it's the best AI computer, and we greatly value our close cooperation and partnership on many levels with Nvidia. So we're exclusive to Nvidia."
He added that SpaceX will receive a significant percentage of Nvidia's GPUs next year, indicating that the space company could make up a notable share of Nvidia's revenue.
Nvidia has been a key technology partner for both of Musk's public companies, Tesla and SpaceX, supplying GPU platforms that support AI model training, simulation, and advanced computing. Although Tesla has invested heavily in custom AI chips, it continues to use Nvidia GPUs for various AI and data center workloads.
Following the call, Musk reiterated his commitment to Nvidia, announcing it again on X.
In a post on Wednesday night, he wrote: "SpaceX has committed to using Nvidia GPUs exclusively because they are the best."
An exclusive contract with Nvidia cuts out rival chipmakers like Intel, AMD, and Broadcom. The exclusive announcement also runs counter to the diversification strategy that large tech companies often employ to reduce the risk of supply bottlenecks and other challenges stemming from dependence on a single company.
'World class' productsMusk and his companies have received similar compliments from Nvidia in return.
Nvidia CEO Jensen Huang has repeatedly praised Musk as an "extraordinary engineer," and said that Nvidia does significant business with Tesla and SpaceX's xAI. He has also called Musk's work on xAI's Grok and Tesla products "world-class."
On Wednesday, the space company reported its first quarterly earnings as a listed company, topping revenue expectations. It reported that second-quarter sales rose 92% year on year to $7.8 billion, driven by growth in AI infrastructure and Starlink, its satellite internet network.
On the call, Musk said the company aims to reach a $100 billion annual revenue run rate by year-end, but Wall Street remained cautious over the pace of spending and its impact on near-term profitability.
"I think it may be higher than that," Musk said, adding that the $100 billion ARR is "if we did nothing."
Despite revenue, investors focused on the company's high AI spending and a $541 million loss, sending shares down more than 7% after hours.
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NVIDIA oznámila „významnou“ investici do tajné AI laboratoře Safe Superintelligence Ilyi Sutskevera. Firma uvedla, že to pomůže zdesetinásobit výpočetní kapacitu během příštích 12 měsíců.
NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) shares have advanced 17.5% over the past year and 943.9% over five years, closing at $206.64 on August 3 before tacking on another 1.74% to $210.23 after recapturing headlines. If you watched that run from the sidelines, the question is unavoidable: with NVIDIA now investing directly in OpenAI alum Ilya Sutskever’s secretive AI lab Safe Superintelligence lab, is it too late to buy?
According to the announcement, NVIDIA is making a “substantial investment” that will let the lab “10x our compute in the next 12 months,” a commitment made after The Wall Street Journal reported NVIDIA received a “rare glimpse” into SSI’s research. Superintelligence, in this context, means AI systems that exceed human capability across essentially all cognitive tasks. Whether SSI gets there or not, the scaling-law logic points in the same direction: more frontier labs chasing that target translates to greater demand for compute, and NVIDIA still sells the picks and shovels.
Valuation: Reasonable, Not Cheap At $210.23, NVIDIA trades at a trailing P/E of 30.7 and a forward P/E of 22.8, with a PEG of 0.553. That forward multiple is lower than the S&P 500’s typical growth-stock band. It sits against Q1 FY2027 revenue of $81.615 billion, up 85.23% year over year, non-GAAP EPS of $1.87, the fourth consecutive beat, and free cash flow of $48.554 billion in one quarter.
Analyst consensus price target stands at $302.83, backed by 48 Buy ratings and 10 Strong Buys against just 2 Holds and 1 Sell.
Forward Catalyst: The Buildout Is Accelerating Nvidia’s Q2 FY27 guidance is just as bullish. Management calls for $91.0 billion in revenue at a 75.0% non-GAAP gross margin. Total supply commitments have swelled to $119.0 billion, a visibility figure that dwarfs the $50.3 billion two quarters earlier. CEO Jensen Huang famously called the AI-factory buildout “the largest infrastructure expansion in human history.”
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Blackwell 300 is ramping, Vera Rubin is announced, and the SSI deal adds another named frontier customer alongside OpenAI, Anthropic, Meta, and Google Cloud. Every dollar SSI spends chasing superintelligence ultimately routes through NVIDIA silicon fabricated by Taiwan Semiconductor Manufacturing (NYSE:TSM), whose Q2 2026 revenue grew 36% YoY on the same wave.
Downside: What You Are Underwriting Nvidia’s forward guidance excludes any Data Center compute revenue from China. The company’s $30.0 billion in multi-year cloud service commitments and the $119 billion supply book create real execution risk if hyperscaler capex softens. Insider direction across 26 recent transactions is net selling. Polymarket traders assign only a 51.5% probability that NVDA closes August above $210, and just a 21.5% shot above $230. The 52-week low below $165 defines the range of a garden-variety AI-capex scare.
Verdict The setup remains constructive. A forward multiple of roughly 23 on a business growing revenue 85% year over year in the latest quarter, with 75% gross margins, $48.5 billion in quarterly free cash flow, and an $80 billion buyback authorization, is a price a growth-oriented retirement investor can defensibly pay for the dominant supplier to the AI infrastructure cycle. The SSI investment adds one more data point to the same thesis: frontier labs will keep scaling compute, and NVIDIA sits at the toll booth.
The 200-day moving average near $193 is the level to watch for investors weighing a new entry against the announcement-driven pop. NVIDIA is not cheap in absolute terms, but the multiple still looks reasonable if the AI infrastructure cycle keeps converting into revenue, margin, and cash.
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Anthropic uzavřel šestiletou smlouvu na výpočetní kapacitu za 10 miliard USD s Volta Infra Holdings, aby posílil zdroje pro rostoucí poptávku po AI produktech.
Anthropic has signed a $10 billion, six-year deal for computing capacity with Volta Infra Holdings, a cloud infrastructure startup backed by Nvidia Corp (NASDAQ:NVDA, XETRA:NVD), according to media reports citing people familiar with the matter, as the Claude maker moves to secure additional computing resources amid growing demand for its AI products.
Volta announced earlier Tuesday that it had secured a six-year, $10 billion agreement with an unnamed artificial intelligence company. The deal will be delivered in partnership with Bitdeer Technologies Group, a bitcoin miner that operates data centers, using a site in Norway.
The managed data center is expected to feature Nvidia’s next-generation Vera Rubin AI chips, according to details of the agreement. Volta was recently valued at $2.4 billion following a $300 million funding round.
Volta CEO Ricard Boada declined to identify the customer. Representatives for Anthropic and Bitdeer declined to comment.
The agreement adds to Anthropic’s efforts to expand its computing capacity as businesses and consumers increasingly use its Claude chatbot and other AI tools, particularly for coding and related tasks.
Anthropic has also entered computing agreements with SpaceX, Advanced Micro Devices and Akamai Technologies, while the company is reportedly in discussions to lease computing capacity from data centers operated by Meta Platforms.
Nvidia v úterý vzrostla o 2,3 % na 211,48 USD, protože obnovený optimismus kolem AI infrastruktury podpořil čipy. Akcie navázaly na 2,9% růst v předchozí seanci.
Nvidia stock NVDA rose on Tuesday, extending a recent rebound as renewed optimism surrounding artificial intelligence infrastructure lifted semiconductor stocks and helped drive US equities to fresh record highs.
The stock gained 2.3% to $211.48 in early trading after climbing 2.9% in the previous session.
Other chipmakers also advanced sharply, with Advanced Micro Devices and Intel each rising around 9%.
The broader market rallied as easing oil prices and stronger-than-expected corporate earnings boosted investor sentiment.
The S&P 500 rose 1.8% to a record intraday high, its first since June, while the Nasdaq Composite gained 2.5%.
The Dow Jones Industrial Average climbed 1,035 points, or 2%, led by a 6% gain in Caterpillar.
The advance came as hopes grew that the Strait of Hormuz could reopen, contributing to another decline in oil prices.
Despite the recent recovery, Nvidia has lagged the broader semiconductor sector this year.
The shares have gained 11% in 2026 and are up 16% over the past 12 months.
By comparison, the PHLX Semiconductor Index had risen 61% this year through Monday's close and added another 6% in Tuesday trading.
Investors have increasingly broadened their exposure across the semiconductor industry as spending on AI infrastructure expands beyond graphics processing units.
While Nvidia remains the dominant supplier of AI accelerators, competition has intensified from AMD and custom chip developers, as well as companies focused on central processing units, including Intel.
The company's relative underperformance has left Nvidia trading at lower valuation multiples than many of its semiconductor peers.
According to FactSet, Nvidia trades at a forward price-to-earnings ratio of 18.9 times, below the S&P 500's forward multiple of about 20 times.
The PHLX Semiconductor Index trades at an average forward multiple of 20.6 times, while Intel trades at about 50.4 times forward earnings and AMD at approximately 43 times.
Investors use price-to-earnings multiples to assess a company's valuation relative to the earnings it is expected to generate.
With the growth of online trading apps, tracking such metrics has become significantly easier and more accessible to market participants.
The comparatively lower valuation has led some investors to view Nvidia as increasingly attractive following the recent selloff.
Financing concerns remain in focusTuesday's gains extended Nvidia's recovery after several weeks of pressure driven by concerns over artificial intelligence spending, financing arrangements, and rising competition in the semiconductor industry.
Investor sentiment had also weakened following reports that a Chinese company had begun mass-producing key chipmaking equipment, raising questions about future competitive dynamics.
Separately, The Wall Street Journal reported that Nvidia is discussing a roughly $250 billion financing guarantee to support OpenAI's lease of a large data centre project in Ohio.
The proposed arrangement would help OpenAI secure more favourable financing while supporting long-term demand for Nvidia's AI processors.
However, the report also raised concerns among some investors that financing agreements between Nvidia and its customers could resemble the circular financing structures seen during the dotcom era.
The latest rally suggests investors are once again focusing on the long-term outlook for AI infrastructure demand, even as competition broadens and questions remain over how future spending will be distributed across the semiconductor industry.
Fairbanks Capital Management v 1. čtvrtletí nakoupila nový podíl v NVIDIA za zhruba 5,32 milionu USD. Akcie tvoří 3,3 % portfolia fondu a jde o jeho 11. největší pozici.
Fairbanks Capital Management Inc. bought a new stake in NVIDIA Corporation (NASDAQ:NVDA – Free Report) in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund bought 30,496 shares of the computer hardware maker’s stock, valued at approximately $5,319,000. NVIDIA accounts for 3.3% of Fairbanks Capital Management Inc.’s portfolio, making the stock its 11th biggest position.
Several other institutional investors and hedge funds have also modified their holdings of NVDA. State Street Corp grew its holdings in shares of NVIDIA by 1.2% during the 4th quarter. State Street Corp now owns 991,480,489 shares of the computer hardware maker’s stock worth $184,911,111,000 after purchasing an additional 11,451,386 shares in the last quarter. Geode Capital Management LLC raised its stake in NVIDIA by 0.6% in the fourth quarter. Geode Capital Management LLC now owns 588,803,093 shares of the computer hardware maker’s stock valued at $109,446,217,000 after purchasing an additional 3,383,441 shares in the last quarter. Norges Bank acquired a new position in NVIDIA in the fourth quarter valued at about $62,244,133,000. Bank of America Corp DE lifted its position in NVIDIA by 1.5% during the fourth quarter. Bank of America Corp DE now owns 187,181,484 shares of the computer hardware maker’s stock worth $34,909,347,000 after purchasing an additional 2,849,678 shares during the period. Finally, Legal & General Group Plc lifted its position in NVIDIA by 1.5% during the third quarter. Legal & General Group Plc now owns 181,203,035 shares of the computer hardware maker’s stock worth $33,808,862,000 after purchasing an additional 2,609,560 shares during the period. 65.27% of the stock is currently owned by institutional investors and hedge funds.
NVIDIA News Summary Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: Cloud providers are accelerating spending on AI infrastructure, particularly NVIDIA’s liquid-cooled Blackwell systems. This reinforced expectations that demand for NVIDIA’s data-center GPUs remains well ahead of supply ahead of the company’s next earnings report. Nvidia stock climbs as AI infrastructure demand boosts investor sentiment Positive Sentiment: Analyst and earnings-preview coverage remains bullish. NVIDIA has a strong history of beating estimates, while reported first-quarter revenue of $81.6 billion and data-center revenue of $75.2 billion showed exceptional year-over-year growth. Forecasts also point to continued momentum from the Blackwell and upcoming Vera Rubin platforms. Will Nvidia beat estimates again Positive Sentiment: A strong Nasdaq and semiconductor-sector rebound lifted sentiment across chip stocks, providing an additional market-wide catalyst for NVDA. Some analysts argue that NVIDIA’s valuation remains reasonable relative to its growth and potential future sales. Nvidia beats stock market upswing Neutral Sentiment: NVIDIA is using financial guarantees, equity investments, and revenue-sharing arrangements to help customers build AI data centers and secure demand for Vera Rubin. The strategy could strengthen its ecosystem and market share, but it also increases exposure to customer defaults, cash outflows, and weaker AI-investment returns. Nvidia financial engineering and Vera Rubin Negative Sentiment: Risk-focused coverage highlights concerns about circular financing, rising AI infrastructure costs, and whether hyperscaler spending can remain economically justified. NVIDIA has also traded sideways for several months, suggesting investors may require stronger earnings or guidance to sustain a breakout. Nvidia stock remains in a $200 rut Negative Sentiment: Longer-term competitive risks are emerging as custom AI chips gain traction and AI-generated software could weaken CUDA’s traditional competitive moat, particularly as workloads shift from training toward inference. AI threats to Nvidia CUDA Wall Street Analyst Weigh In Several research firms have commented on NVDA. Evercore reissued an “outperform” rating and issued a $413.00 target price (up from $352.00) on shares of NVIDIA in a report on Thursday, May 21st. UBS Group boosted their target price on shares of NVIDIA from $275.00 to $280.00 and gave the stock a “buy” rating in a research note on Thursday, May 21st. Tigress Financial reissued a “strong-buy” rating and set a $425.00 price objective (up from $360.00) on shares of NVIDIA in a report on Wednesday, May 27th. Royal Bank Of Canada set a $280.00 price objective on NVIDIA in a research report on Thursday, May 21st. Finally, Morgan Stanley set a $288.00 target price on NVIDIA and gave the stock an “overweight” rating in a report on Thursday, May 21st. Three analysts have rated the stock with a Strong Buy rating, forty-eight have issued a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, NVIDIA has a consensus rating of “Buy” and a consensus price target of $304.26.
View Our Latest Report on NVDA
NVIDIA Trading Up 2.9% Shares of NVDA stock opened at $206.64 on Tuesday. The stock has a market cap of $5.00 trillion, a price-to-earnings ratio of 31.64, a PEG ratio of 0.39 and a beta of 2.23. The stock has a 50-day moving average of $205.24 and a 200-day moving average of $196.34. The company has a current ratio of 3.44, a quick ratio of 2.85 and a debt-to-equity ratio of 0.04. NVIDIA Corporation has a 1-year low of $164.07 and a 1-year high of $236.54.
NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, topping analysts’ consensus estimates of $1.76 by $0.11. 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 previous year, the firm earned $0.81 earnings per share. The firm’s quarterly revenue was up 85.2% on a year-over-year basis. On average, equities research analysts forecast that NVIDIA Corporation will post 8.79 earnings per share for the current year.
NVIDIA Increases Dividend The company also recently announced a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Thursday, June 4th were paid a dividend of $0.25 per share. 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 of this dividend was Thursday, June 4th. NVIDIA’s payout ratio is 15.31%.
NVIDIA declared that its board has initiated a share repurchase 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 repurchase up to 1.5% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board believes its shares are undervalued.
Insider Buying and Selling In other NVIDIA news, Director John Dabiri sold 625 shares of the stock in a transaction dated Wednesday, May 27th. The stock was sold at an average price of $214.00, for a total transaction of $133,750.00. Following the completion of the sale, the director directly owned 14,163 shares in the company, valued at approximately $3,030,882. This trade represents a 4.23% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 885,000 shares of the stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $210.17, for a total value of $186,000,450.00. Following the sale, the director owned 5,207,271 shares of the company’s stock, valued at approximately $1,094,412,146.07. The trade was a 14.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 1,901,125 shares of company stock valued at $410,583,015 over the last quarter. Insiders own 3.94% of the company’s stock.
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.
Further Reading Five stocks we like better than NVIDIA SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Why Rare Earth Processing Could Be the Real 2027 Opportunity The S&P 493 Are Staging a Comeback—This Value ETF Offers Broad Exposure TSMC Insiders Are Buying the Pullback—But Is the Signal as Bullish as It Looks? 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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Coronation Fund Managers Ltd. v prvním čtvrtletí koupil 26 149 akcií NVIDIA za zhruba 4,56 milionu USD. NVIDIA zároveň oznámila zpětný odkup akcií za 80 miliard USD.
Coronation Fund Managers Ltd. bought a new position in shares of 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 fund bought 26,149 shares of the computer hardware maker’s stock, valued at approximately $4,560,000.
Several other institutional investors and hedge funds also recently modified their holdings of NVDA. Lifetime Wealth Management P.C. purchased a new stake in NVIDIA in the 4th quarter valued at approximately $26,000. Longview Financial Advisors Inc. acquired a new stake in NVIDIA during the 1st quarter valued at $27,000. Longfellow Investment Management Co. LLC increased 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 worth $33,000 after buying an additional 67 shares in the last quarter. Phillip James Consulting Co. purchased a new position in NVIDIA during the first quarter worth $40,000. Finally, Spurstone Advisory Services LLC acquired a new position in shares of NVIDIA in the second quarter worth $40,000. Hedge funds and other institutional investors own 65.27% of the company’s stock.
Analyst Upgrades and Downgrades Several brokerages have recently issued reports on NVDA. Susquehanna restated a “positive” rating and issued a $275.00 price objective (up from $250.00) on shares of NVIDIA in a research report on Tuesday, May 12th. DZ Bank reiterated a “buy” rating on shares of NVIDIA in a research report on Thursday, May 21st. Raymond James Financial reissued a “strong-buy” rating and issued a $330.00 target price on shares of NVIDIA in a research note on Thursday, May 21st. Barclays restated an “overweight” rating on shares of NVIDIA in a report on Thursday, May 21st. Finally, Royal Bank Of Canada set a $280.00 price target on shares of NVIDIA in a research note on Thursday, May 21st. Three equities research analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Buy” and a consensus price target of $304.26.
Get Our Latest Analysis on NVDA
NVIDIA Trading Up 2.9% Shares of NVDA stock opened at $206.64 on Tuesday. The firm’s 50-day simple moving average is $205.24 and its 200-day simple moving average is $196.34. 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 1-year low of $164.07 and a 1-year high of $236.54. The firm has a market cap of $5.00 trillion, a P/E ratio of 31.64, a PEG ratio of 0.39 and a beta of 2.23.
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, beating analysts’ consensus estimates of $1.76 by $0.11. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The firm had revenue of $81.61 billion during the quarter, compared to the consensus estimate of $78.42 billion. During the same period in the previous year, the firm earned $0.81 earnings per share. NVIDIA’s revenue was up 85.2% compared to the same quarter last year. As a group, equities analysts forecast that NVIDIA Corporation will post 8.79 EPS for the current year.
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 represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date was Thursday, June 4th. This is a positive change from NVIDIA’s previous quarterly dividend of $0.01. NVIDIA’s payout ratio is currently 15.31%.
NVIDIA declared that its Board of Directors has authorized a share repurchase plan 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 purchase up to 1.5% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.
Insider Transactions at NVIDIA In related news, Director Stephen C. Neal sold 15,500 shares of NVIDIA stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total value of $3,343,815.00. Following the transaction, the director owned 116,135 shares in the company, valued at approximately $25,053,803.55. This trade represents a 11.77% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director John Dabiri sold 625 shares of the business’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 sale, the director directly owned 14,163 shares of the company’s stock, valued at approximately $3,030,882. This trade represents a 4.23% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 1,901,125 shares of company stock worth $410,583,015 in the last ninety days. Insiders own 3.94% of the company’s stock.
Trending Headlines about NVIDIA Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: Cloud providers are accelerating spending on AI infrastructure, particularly NVIDIA’s liquid-cooled Blackwell systems. This reinforced expectations that demand for NVIDIA’s data-center GPUs remains well ahead of supply ahead of the company’s next earnings report. Nvidia stock climbs as AI infrastructure demand boosts investor sentiment Positive Sentiment: Analyst and earnings-preview coverage remains bullish. NVIDIA has a strong history of beating estimates, while reported first-quarter revenue of $81.6 billion and data-center revenue of $75.2 billion showed exceptional year-over-year growth. Forecasts also point to continued momentum from the Blackwell and upcoming Vera Rubin platforms. Will Nvidia beat estimates again Positive Sentiment: A strong Nasdaq and semiconductor-sector rebound lifted sentiment across chip stocks, providing an additional market-wide catalyst for NVDA. Some analysts argue that NVIDIA’s valuation remains reasonable relative to its growth and potential future sales. Nvidia beats stock market upswing Neutral Sentiment: NVIDIA is using financial guarantees, equity investments, and revenue-sharing arrangements to help customers build AI data centers and secure demand for Vera Rubin. The strategy could strengthen its ecosystem and market share, but it also increases exposure to customer defaults, cash outflows, and weaker AI-investment returns. Nvidia financial engineering and Vera Rubin Negative Sentiment: Risk-focused coverage highlights concerns about circular financing, rising AI infrastructure costs, and whether hyperscaler spending can remain economically justified. NVIDIA has also traded sideways for several months, suggesting investors may require stronger earnings or guidance to sustain a breakout. Nvidia stock remains in a $200 rut Negative Sentiment: Longer-term competitive risks are emerging as custom AI chips gain traction and AI-generated software could weaken CUDA’s traditional competitive moat, particularly as workloads shift from training toward inference. AI threats to Nvidia CUDA 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.
Further Reading Five stocks we like better than NVIDIA SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Why Rare Earth Processing Could Be the Real 2027 Opportunity The S&P 493 Are Staging a Comeback—This Value ETF Offers Broad Exposure TSMC Insiders Are Buying the Pullback—But Is the Signal as Bullish as It Looks?
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« PREVIOUS HEADLINEClearwater Capital Advisors LLC Purchases 4,873 Shares of NVIDIA Corporation $NVDA
NVIDIA uvedla, že má plnou důvěru v 1 bilion USD v tržbách z Blackwell a Rubin v letech 2025 až 2027, což potvrzuje silnou poptávku po čipech. CFO zároveň řekla, že firma je omezená zásobami.
Jim Cramer keeps telling viewers that NVIDIA chips hold their value because they are scarce. Now NVIDIA management has put a number behind that argument, and it is one most retail investors have probably never seen quoted.
The Number: $1 Trillion On the May 20, 2026 earnings call, NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) CFO Colette Kress told investors the company has “full confidence in $1 trillion in Blackwell and Rubin revenue we foresee from 2025 through calendar 2027,” fueled by data center demand. That is forward revenue visibility, not booked sales, and it is the clearest quantification of chip scarcity NVIDIA has ever put in writing. To back that visibility with physical supply, the company disclosed it had $119.0 billion in total supply-related commitments as of the Q1 FY2027 filing, and Kress said on the call that the tally inclusive of inventory purchases and prepaids had climbed to $145 billion.
What It Means A trillion dollars of demand visibility across two product cycles is a backlog statement dressed up as a forecast. But it is also a scarcity statement. NVIDIA is telling suppliers, customers, and shareholders that it has more orders than it can build. CEO Jensen Huang made the constraint explicit: “My sense is that we’ll be supply constrained throughout the entire life of Vera Rubin.”
The pricing evidence supports it. H100 rental prices are up 20% year to date, and A100 cloud pricing is up nearly 15%. Prior-generation silicon is appreciating, which only happens when new supply cannot catch demand.
That backlog is already showing up in the P&L. Q1 FY2027 revenue landed at $81.61 billion, up 85.23% year over year, beating consensus by 3.16%. Data Center revenue reached $75.25 billion, growing 92% YoY, with networking alone at $14.8 billion, up 199%. Non-GAAP gross margin expanded to 75.0%, versus 60.8% a year earlier. Companies that lack pricing power do not print massive gross margins on $81.61 billion in a single quarter.
Market Reaction Shares closed at $206.64 on August 3, 2026, versus around $223 at the Q1 FY27 filing on May 20, 2026. The custom period from filing date through August 3 shows a 7.43% decline. Momentum has turned recently: the stock is up 7.4% over the past week and up 8.6% over the past month, with year-to-date performance at +13.4%.
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Bull Case The $1 trillion figure reframes the data center debate. Detractors have argued that hyperscaler capex will normalize and that AI infrastructure depreciates faster than the market assumes. NVIDIA’s counter is that analysts now forecast hyperscale capex to exceed $1 trillion by 2027 and that AI infrastructure spending is tracking toward $3 trillion to $4 trillion annually by the end of this decade. Against that, the Blackwell and Rubin visibility captures only two product generations and one platform vendor.
Customer breadth reinforces the backlog. Kress said the number of partner data centers exceeding 10MW has nearly doubled in a year, now surpassing 80 sites, and NVIDIA infrastructure is deployed across nearly 40 countries. Sovereign revenue is up more than 80% year over year. Vera CPU alone opens what Huang called a $200 billion TAM with nearly $20 billion in CPU revenue visibility this year.
Capital return signals confidence. The board authorized an additional $80.0 billion in share repurchases, and increased the quarterly dividend from $0.01 to $0.25. Free cash flow of $48.55 billion in a single quarter, compared with $26.1 billion in the year-ago period, bankrolls all of it without touching the balance sheet. And the stock trades at roughly 23 times forward earnings, a multiple that has to be reconciled with 210.63% year-over-year net income growth.
Bottom Line The $1 trillion Blackwell and Rubin revenue forecast is a forward-looking statement, not a reported figure, and long-term holders should treat it that way. It is also the cleanest number NVIDIA has ever offered to quantify what Cramer sees brewing on the surface: chips that hold their value because there are not enough of them. Q2 FY2027 guidance calls for revenue of $91.0 billion, plus or minus 2%, with gross margin held at 75.0%. If the company delivers, the trillion-dollar figure stops sounding like a slogan and starts looking like a roadmap.
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CNBC’s Jim Cramer distilled the current NVIDIA setup into one sentence on X: “you get a couple of reports that Nvidia chips are holding their value and are scarce and the stock soars.” The post landed as NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) closed up 2.93% at $206.64 on August 3, 2026, extending a 6.7% one-week gain and pushing the stock 12.8% higher year to date. For a name with a roughly $5.094 trillion market capitalization, that is a meaningful daily move, and it maps directly onto the two supply-side narratives Cramer is pointing at.
The Reports Behind Cramer’s Take Two theories circulating this week gave the scarcity thesis fresh ammunition. An analysis by Beth Kindig, aka the “Queen of Nvidia,” flagged that TSMC’s N3 process wafer capacity is severely constrained, with the biggest AI chip designers, NVIDIA and Google, both leaning on the same node and rising prices reflecting the bottleneck. Separately, Bank of America is now modeling hyperscaler capital expenditures to exceed $1.2 trillion over the next year, with the sector’s bottleneck shifting from demand to supply.
Value retention in the secondary GPU market is the second leg. Hyperscalers describe cloud GPUs as sold out, and rental economics for prior-generation Hopper silicon have stayed firm even as Blackwell ramps. That behavior signals a market where installed hardware is still earning its keep, which is the opposite of what you would expect if the AI capex cycle were peaking.
NVIDIA’s Numbers Confirm the Scarcity Thesis NVIDIA’s most recent report, filed May 20, 2026, reads like a scarcity case study. Q1 FY2027 revenue came in at $81.615 billion, up 85.23% YoY, beating the consensus by 3.16% and setting a new company record. Non-GAAP diluted EPS of $1.87 topped the $1.7738 estimate. Data Center revenue reached $75.246 billion, growing 92% year over year, with networking (InfiniBand, NVLink, Spectrum-X) up 199%.
The margin picture is the tell. Non-GAAP gross margin held at 75.0%, up from 60.8% a year earlier. Sustaining that gross margin while revenue nearly doubles is the fingerprint of pricing power created by supply that trails demand. Free cash flow of $48.55 billion in the quarter funded a $80 billion repurchase authorization and a dividend increase from $0.01 to $0.25 per share.
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The clearest scarcity signal sits in the balance sheet commentary. Total forward supply-related commitments jumped to $119.0 billion in Q1 FY2027, versus $95.2 billion in Q4 FY2026 and $50.3 billion in Q3 FY2026. NVIDIA is writing large checks to lock in wafer starts, HBM, and networking silicon well before customer purchase orders convert to revenue. Details are in the company’s Q1 FY2027 8-K filing.
What to Watch Next Nvidia management guided Q2 FY2027 revenue to $91.0 billion, give or take 2%, with 75.0% non-GAAP gross margin, and that figure excludes any China Data Center compute revenue. Named commitments underneath the guide include 10 gigawatts of systems for OpenAI, an initial 1 gigawatt for Anthropic, millions of Blackwell and Rubin GPUs for Meta over multiple years, and 5-plus gigawatts for CoreWeave by 2030.
Jensen Huang framed the backdrop in generational terms: “The buildout of AI factories, the largest infrastructure expansion in human history, is accelerating at extraordinary speed.”
Valuation is where the debate lives. NVIDIA trades at roughly 30.7 times trailing earnings and 22.8 times forward earnings, with an analyst consensus target of $302.83 and 58 buy or strong buy ratings against 2 holds and 1 sell. Reddit sentiment, meanwhile, has been predominantly bearish across r/wallstreetbets in early August, driven more by loss-focused posts than by any obvious crack in the fundamentals. Cramer’s read is that scarcity and value retention are the signals that matter most for the next leg. The Q2 report, due in late August, will test that thesis against the $91 billion guide and bring the scarcity debate full circle.
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Jensen Huang prosazuje otevřené AI modely, protože podle něj rozšíří jejich používání, a tím i poptávku po čipech Nvidia. Firma už sama vydává vlastní open modely Nemotron.
Jensen Huang has become a vocal champion of open-weight artificial intelligence (AI) models, the kind anyone can download, customize, and run themselves. He even organized a letter urging Washington not to restrict them, one that quickly gathered dozens of corporate signatories, including OpenAI and Alphabet.
It sounds like a principled stand for open technology. But for Nvidia (NVDA +2.93%), it is also a shrewd business move, one aimed squarely at expanding the company's total addressable market.
Nvidia CEO Jensen Huang. Image source: Nvidia.
Why open models mean more Nvidia chips Here is the logic. Closed AI models keep development bottled up inside a handful of well-funded labs. Open-weight models blow that open, letting millions of companies, start-ups, researchers, and even entire countries build and run their own AI. And every one of those deployments needs computing power, the vast majority of which runs on Nvidia's chips.
Huang has pointed out that roughly 1-in-4 AI tokens generated today already come from an open model, and he wants that share to keep climbing. The more places AI takes root, the more Nvidia hardware the world needs.
Nvidia is not just cheering from the sidelines, either. It builds its own open models, releasing its Nemotron family free to the public along with the training recipes and code. Giving away powerful models seeds demand for the one thing Nvidia actually sells: the silicon to run them.
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The strategic logic Step back, and the strategy is elegant. In my opinion, Nvidia does not care which AI model wins, as long as the world keeps building more of them. Closed models concentrate demand; open models democratize it across the entire economy. By pushing to make AI universal and freely available, Jensen Huang is quietly ensuring that the whole ecosystem, from a solo developer to a national government, runs on Nvidia's platform. His idealism and his order book point in the same direction.
The strategy is not without danger. Open models also let rivals, including China, build competitive AI cheaply, and the gap between the best American and Chinese open models is narrowing. That has stirred real concern about U.S. technological leadership. There is also a subtler risk: Hyper-efficient open models could, in theory, accomplish more with less computing power, softening the very demand Nvidia is counting on.
The takeaway for investors I read Huang's open-weight crusade as a smart strategy wrapped in principle. It is a bet that making AI universal grows the pie for Nvidia far faster than it feeds its rivals. For investors, it signals a company playing the long game to keep the entire AI economy running on its chips, even if the open-model genie cuts both ways.
NVIDIA spouští tři open source knihovny Omniverse na GitHubu, aby dostala simulaci a fyzickou AI přímo do nástrojů, které vývojáři už používají. Firma tím posiluje svůj softwarový ekosystém před výsledky za 2. čtvrtletí fiskálního roku 2027.
NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) just quietly reset how investors should think about its next decade. The chip story is well told. The software story now has a number.
The Number Three. That is how many open-source Omniverse libraries NVIDIA is releasing on GitHub as part of its Agent Toolkit expansion tied to SIGGRAPH 2026: ovrtx, ovphysx and CAD-to-SimReady. Three libraries sound modest. What they actually do is embed NVIDIA’s simulation stack directly inside the 3D and CAD tools engineers already use, letting AI agents handle sensor simulation, physics, and asset validation without leaving Houdini, Onshape, or Blender. That is the anchor: three open-source libraries designed to make NVIDIA the default runtime for physical AI development.
What It Means NVIDIA’s physical AI thesis has always needed a software layer to match the hardware. This is that layer. NVIDIA is meeting developers inside the tools they already run. SideFX is integrating the libraries into Houdini. PTC (NASDAQ:PTC) is integrating them into Onshape. Four Inception startups (ForgeCAD, Lightwheel, Moonlake AI, and Palatial) are building agent-driven workflows on top. Every one of those integrations is a lock-in point.
The financial scale behind this software push is already visible in the reported numbers. Q1 FY27 Data Center revenue reached $75.25 billion, up 92% year over year, with Data Center Networking revenue of $14.8 billion, up 199% year over year. Total revenue landed at $81.61 billion, up 85.2%, with non-GAAP EPS of $1.87 versus a $1.7738 estimate. The company is guiding Q2 FY27 revenue to $91.0 billion plus or minus 2% at a 75% non-GAAP gross margin. Those margins are the tell. Hardware alone rarely runs at that level for long. Software attach does.
Market Reaction The stock has cooled since the Q1 FY27 filing. Shares traded around $206.86 on Aug. 3, down nearly 12% from their year-to-date high. But over the past month, NVIDIA is up 5.78% with a one-year gain of nearly 15%. Longer horizons still tell the compounding story: 916% over five years. Market cap sits near $5.01 trillion against a P/E of 31 and a forward P/E of 23. NVIDIA reports Q2 FY27 financials on Aug. 26, and shares could rally into the company’s earnings call, especially with a renewed focus on the three-library release.
The Bull Case The three-library release matters because it converts NVIDIA’s hardware lead into a developer standard. Jensen Huang framed it directly: “The physical AI era will be built in simulation first.” If that is correct, the company that owns the simulation runtime owns the training ground for every robot, autonomous vehicle, and industrial system that follows.
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The rest of the R&D disclosure reads like an argument for the same thesis. NVIDIA announced NemoClaw for the OpenClaw agent platform, OpenShell with privacy and security controls, and an Agent Toolkit for building autonomous enterprise AI agents. It rolled out Alpamayo 1.5 and Omniverse NuRec for autonomous driving, new Cosmos and Isaac GR00T N models, and the Halos OS unified safety architecture. It expanded partnerships for autonomous driving with Hyundai, Kia, Uber, BYD, Geely, Isuzu, and Nissan. On the compute side, the Vera Rubin platform and BlueField-4 STX anchor the next generation, and NVIDIA Dynamo 1.0 boosts generative and agentic inference on Blackwell GPUs by up to 7x.
Huang’s own framing from the call: “Agentic AI has arrived, doing productive work, generating real value and scaling rapidly across companies and industries. NVIDIA is uniquely positioned at the center of this transformation as the only platform that runs in every cloud, powers every frontier and open source model, and scales everywhere AI is produced, from hyperscale data centers to the edge.”
Capital return backs the operating story. The board approved an additional $80 billion share repurchase authorization, raised the quarterly dividend from $0.01 to $0.25 per share, and returned approximately $20.0 billion to shareholders in Q1. Analyst positioning is lopsidedly constructive, with 48 Buy ratings, 10 Strong Buy ratings, two Hold ratings and one Sell ratings, and an analyst target price of $302.31.
Bottom Line Three libraries do not sound like a moat until you notice where they land: inside Houdini, inside Onshape, inside the tools engineers already trust. That is how software ecosystems compound. Long-term holders should track two catalysts from the input data. First, the RTX Spark systems arriving in fall 2026 from ASUS, Dell, HP, Lenovo, Microsoft Surface and MSI, which put local physical AI compute in developer hands. Second, the Q2 FY27 guidance of $91 billion plus or minus 2%, which is the next reported test of whether agentic and physical AI demand keeps compounding. Three libraries. One thesis. A company that keeps making its ecosystem harder to leave.
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Jensen Huang odhaduje, že polovodičový průmysl může během zhruba deseti let vyrůst na 7,9 bilionu USD díky agentní AI. Z toho by mohly těžit Nvidia i Micron Technology.
The artificial intelligence (AI) revolution has so far defied the bears' prophecies of doom, and there are reasons to believe it will continue to do so. We may be entering the age of AI agents, or self-directed systems that can autonomously execute tasks, work toward goals, and help corporations achieve significant productivity gains. The agentic AI boom could catapult the semiconductor industry to new heights. Nvidia's (NVDA +2.93%) CEO, Jensen Huang, has a lot to say on the topic. After predicting in a recent Bloomberg interview that we will eventually have billions of AI agents, here's what he said about how big the industry needs to be to support that agentic AI explosion:
My guess is the semiconductor industry will probably have to be 10 times larger than it is today over the next decade or so.
The industry was valued at roughly $791.7 billion last year, according to some estimates, so that means Huang believes it could be worth $7.9 trillion in a decade. As he said, that's a mere guess, but the general sentiment is that the industry will need to expand rapidly over the next 10 years as agentic AI takes over. Several companies could capitalize on this and deliver strong returns. Here are two stocks to consider to avoid getting left behind: Nvidia itself and Micron Technology (MU +0.79%).
Image source: Nvidia Corporation.
Nvidia remains the undisputed leader in the GPU (Graphics Processing Unit) market, and the company's financial results and guidance suggest sustained demand for its products. In the first quarter of its fiscal year 2027, ended April 26, Nvidia's revenue jumped by 85% year over year to $81.6 billion. Gross margins increased to 74.9%, up from 60.5% in the comparable period of the previous fiscal year. Nvidia's adjusted earnings per share (EPS) were $1.87, up 140% year over year.
The company famously projected $1 trillion in purchase orders for its Blackwell and Vera Rubin (which was released this year) through 2027. Nvidia's new Vera Rubin architecture is particularly important, since it includes the stand-alone Vera CPU (Central Processing Unit).
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Agentic AI systems run on CPUs, so there should be sustained demand in that corner of the industry as AI agents become increasingly popular. Nvidia projected $20 billion in stand-alone CPU revenue through the end of 2026, and sees a $200 billion addressable market in that niche alone. That highlights the fact that Nvidia is no longer just a GPU company. The semiconductor specialist builds not just the chips, but also the systems, software, and networking that power AI.
That grants Nvidia strong prospects as the industry marches forward, and the company doesn't seem too expensive at current levels. Nvidia is trading at 22.9x forward earnings, versus an average of 20x for information technology stocks. That valuation is fair, considering Nvidia's position in the industry.
2. Micron Technology Micron makes memory and storage chips used in everything from smartphones to data centers. The company's data center business has been its biggest growth driver in recent quarters, as the memory chip shortage has supported sustained demand for its hardware and given it significant pricing power. Micron's financial results have exploded as a result.
In the third quarter of its fiscal year 2026, ended on May 28, Micron's revenue was $41.46 billion, growing by almost 346% year over year. The company's margins improved significantly, as did the bottom line. Micron's adjusted EPS of $25.11 was about 1215% higher than the year-ago period.
Meanwhile, one of the company's biggest competitors, Samsung Electronics, expects the memory chip shortage to last at least until 2028. And beyond that, if Huang's predictions about the semiconductor industry's direction over the next decade are even remotely correct, demand for Micron's products should remain healthy over this period. The market isn't convinced, though.
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The stock is experiencing a pullback, with shares down 15% over the past month as many investors take some profits, fearing its amazing run won't last much longer. But as a counterpoint, Micron is trading at just 5.3x forward earnings, which seems like a bargain given how quickly revenue and earnings are growing. Further, the company has signed several long-term supply agreements that somewhat protect it against a sharp decline in revenue and earnings if demand for its products slows.
What does all this mean for investors? The tech stock could deliver outstanding returns over the long run if the AI industry maintains its momentum or the memory chip shortage persists. Investors who believe either outcome is likely should consider buying Micron's shares on the dip.
Akcie Nvidia v pondělí vzrostly o 3 %, protože investoři sází na silnou poptávku po AI infrastruktuře před výsledky 26. srpna. Podporují je i rostoucí investice do datacenter a pozitivní pohled analytiků.
Nvidia NVDA shares rose 3% on Monday as investors remained optimistic about the chipmaker's position at the center of the artificial intelligence infrastructure buildout, with expanding data center investments and favorable analyst views supporting sentiment ahead of its upcoming earnings report.
Recent industry reports suggest that large cloud service providers are accelerating spending on AI infrastructure, particularly on Nvidia's latest generation of liquid-cooled Blackwell systems.
The trend reflects continued demand for high-performance computing as enterprise generative AI applications move beyond pilot projects and into large-scale deployment.
Investors also assessed reports of manufacturing yield improvements that could help Nvidia ease previous supply constraints and deliver more products during the current fiscal period.
AI infrastructure spending remains the key growth driverNvidia continues to benefit from its dominant position in the AI accelerator market, with analysts pointing to sustained demand from hyperscale cloud providers and emerging enterprise workloads.
The company has also been supported by a broader improvement in the macroeconomic backdrop.
Cooling inflation data and expectations that the Federal Reserve could stabilize or eventually ease monetary policy have improved sentiment toward high-growth technology companies by making future earnings more valuable under lower discount rates.
Beyond traditional cloud customers, research firms have also highlighted growing opportunities from sovereign AI initiatives across Europe and Asia, with governments investing in domestic AI infrastructure that could expand demand for advanced computing hardware.
Despite geopolitical trade uncertainties affecting parts of the semiconductor industry, Nvidia's diversified supply chain and software ecosystem have helped insulate the company from some of the broader sector pressures.
While enthusiasm around AI spending remains strong, some market observers have cautioned that the industry's rapid infrastructure expansion is increasing financing requirements.
“Companies that were once huge cash generators are now spending so much on AI infrastructure that they have become large borrowers,” wrote Stephen Coltman, head of macro at 21shares, in a research note. “Even Nvidia, the mega cap with the largest profit margins, is seeing its credit spread widen as it is reported to be offering vendor financing and credit guarantees worth hundreds of billions to its customers.”
The comments underscore investor attention on how technology companies are funding the massive capital expenditures required to support AI infrastructure, even as demand for advanced chips remains robust.
Analysts remain bullish ahead of earningsInvestors are also looking ahead to Nvidia's earnings report scheduled for Aug. 26, which could provide another catalyst for the stock if results reinforce confidence in the company's AI-driven growth outlook.
According to FactSet, Wall Street's average price target for Nvidia stands at $314.29.
Bernstein reiterated its Buy rating on the stock with a price target of $315. Nvidia shares closed at $200.75 last Friday, implying a 56% upside from that level.
With AI infrastructure spending continuing to expand and new sources of demand emerging, investors remain focused on whether Nvidia can sustain its growth trajectory when it reports quarterly results later this month.
Nvidia dál dominuje AI infrastruktuře, ale investoři se přesouvají od růstu výdajů k monetizaci a návratnosti infrastruktury. Tržby datacentra v Q1 FY2027 dosáhly 75 miliard USD, meziročně +92 %.
SummaryNVIDIA remains dominant in AI infrastructure, with Q1 FY2027 data center revenue reaching $75 billion, up 92% year over year. Investor focus has shifted from AI spending growth toward monetization, infrastructure returns, and sustainability of elevated expectations. Leopold Aschenbrenner’s positioning highlights AI bottlenecks like power, memory, and infrastructure as potential higher-return opportunities. NVDA's valuation remains supported by growth and margins, but earnings execution, Blackwell and Rubin ramps must remain exceptional. your_photo/iStock via Getty Images
It is safe to say that Nvidia (NVDA) continues dominating in the construction of AI infrastructure, yet there has been a shift in perception of this trend from investors' side. Indeed, Nvidia still delivers
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Nvidia čeká 26. srpna klíčová výsledková aktualizace; analytici čekají, že tržby vzrostou o 96 % na 91,85 mld. USD a zisk na akcii bude 2,08 USD. Akcie letos přidaly 8 %.
Nvidia (NVDA +2.83%) is starting to get lost in the crowd. The artificial intelligence (AI) bellwether remains on top of the market cap list, but its performance lately has been underwhelming.
Nvidia ended July essentially where it started. The stock's 8% year-to-date gain and 13% increase over the past year trail the market on both counts. August offers the promise of something new: volatility. With a critical financial update now just three weeks away and a compelling valuation, Nvidia is ready to stand out from the crowd again.
Image source: Getty Images.
1. Earnings season is finally here Nvidia stock will be on the move after the market closes on Aug. 26. It isn't likely to march in place until then, as it did last month, but it will definitely move sharply higher or lower over the final few days of August.
Expectations are high. Analysts see revenue shooting 96% higher to $91.85 billion for the fiscal second quarter that ended last week. They see the bottom line following suit, with earnings per share nearly doubling to $2.08 after ringing up a profit of $1.05 per share a year earlier.
Recent history suggests that Nvidia will do slightly better than expected. It has landed 3% to 6% higher than Wall Street's profit target in each of the four previous quarterly updates. That might seem comforting at first glance, but recent history rears its ugly head again:
The four purple circles represent when Nvidia announced its quarterly results over the past year. In all four cases, the shares moved markedly lower in the aftermath. Stellar top-line growth and modest earnings beats weren't enough to impress the market. Nvidia will need more in its tank this time, and thankfully, it could make a difference that the stock conserved its energy this summer.
Take one final look at that chart. Have you noticed how each subsequent earnings report came with the stock at a higher price point than the previous update? The initial reaction was to sell, but a rally eventually bore fruit, weeks later, if not a month or two later. Things are different this time, with Nvidia trading substantially lower. A break from the pattern could be just the ticket for the stock to finally move higher -- for the first time in more than a year -- after an Nvidia earnings report.
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2. Stock chart aside, momentum is building Short-term price action can be cruel sometimes. If Nvidia comes even reasonably close to the 96% year-over-year revenue jump the market is expecting, it will be the fourth consecutive quarter of accelerating top-line growth.
Revenue has gone from a 56% step-up in last year's fiscal second quarter to increases of 63%, 73%, and 85% in its latest financial report. The cherry on top of this sundae of disconnected fundamentals is that Nvidia is doing this while it's not close to full strength. Trade restrictions remain in China, the world's second largest economy. Supply-chain constraints are keeping AI chip producers in the equivalent of an elementary school speed zone. Nvidia's competitors are bumping up against the same headwinds, but they're also gaining ground here.
Nvidia looks better than its stock chart. It's more than the sum of the earnings season slides, which it was able to claw its way out of to a higher level until this summer's sector rotation. Nvidia will be fine, and that's even more true if you have the luxury of patience to see this through.
3. Nvidia was cheap before, and it's even cheaper now Investors haven't lost money in Nvidia during the lull. There are fates worse than merely treating July like a staring contest and losing to the market over the past year despite posting double-digit returns.
The stock went on a round trip to nowhere last month, but the analysts continued to nudge their profit targets higher. Analysts now see Nvidia earning $9 a share in the current fiscal year and $12.89 a share in fiscal 2028, which starts in less than six months.
Those consensus estimates were lower a month ago and even lower the month before. Time-travel to three months ago, and Wall Street was modeling a consensus profit per share of $8.34 for fiscal 2027 and $11.23 for next year. Nvidia enters August trading at a reasonable 22 times this fiscal year's earnings and less than 16 times next year's target.
It's a good time to be a market contrarian when it comes to Nvidia. Now let's see what August has to say about things.
Barometer Capital Management Inc. grew its position in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 35.5% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 35,500 shares of the computer hardware maker’s stock after acquiring an additional 9,300 shares during the period. NVIDIA comprises 2.5% of Barometer Capital Management Inc.’s portfolio, making the stock its 13th largest holding. Barometer Capital Management Inc.’s holdings in NVIDIA were worth $6,191,000 at the end of the most recent quarter.
Other institutional investors and hedge funds have also made changes to their positions in the company. Lifetime Wealth Management P.C. purchased a new position in shares of NVIDIA during the 4th quarter worth approximately $26,000. Longview Financial Advisors Inc. acquired a new stake in shares of NVIDIA in the 1st quarter valued at approximately $27,000. Longfellow Investment Management Co. LLC boosted its stake in shares of NVIDIA by 47.9% in the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock valued at $33,000 after buying an additional 67 shares in the last quarter. Spurstone Advisory Services LLC purchased a new stake in shares of NVIDIA in the second quarter valued at approximately $40,000. Finally, Inspire Investing LLC acquired a new position in NVIDIA during the fourth quarter worth $44,000. 65.27% of the stock is currently owned by institutional investors and hedge funds.
Analyst Ratings Changes Several research analysts have issued reports on the company. Citigroup initiated coverage on NVIDIA in a research report on Wednesday, April 15th. They issued a “buy” rating for the company. Citic Securities boosted their target price on shares of NVIDIA from $242.00 to $315.00 and gave the stock a “buy” rating in a research report on Friday, May 22nd. Wells Fargo & Company reaffirmed an “overweight” rating and set a $315.00 price target (up from $265.00) on shares of NVIDIA in a research note on Tuesday, May 12th. Wolfe Research restated an “outperform” rating and set a $275.00 target price on shares of NVIDIA in a research report on Thursday, May 21st. Finally, Susquehanna reaffirmed a “positive” rating and issued a $275.00 target price (up from $250.00) on shares of NVIDIA in a report on Tuesday, May 12th. Three research analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus price target of $304.26.
Check Out Our Latest Stock Analysis on NVIDIA
NVIDIA Stock Performance NASDAQ:NVDA opened at $200.75 on Monday. The company has a current ratio of 3.44, a quick ratio of 2.85 and a debt-to-equity ratio of 0.04. The company has a market capitalization of $4.86 trillion, a P/E ratio of 30.74, a price-to-earnings-growth ratio of 0.39 and a beta of 2.23. The firm has a 50-day moving average price of $205.41 and a two-hundred day moving average price of $196.20. NVIDIA Corporation has a twelve month low of $164.07 and a twelve month high of $236.54.
NVIDIA (NASDAQ:NVDA – Get Free Report) last announced its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.76 by $0.11. The company had revenue of $81.61 billion for the quarter, compared to the consensus estimate of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The company’s revenue for the quarter was up 85.2% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.81 earnings per share. As a group, research analysts expect that NVIDIA Corporation will post 8.79 earnings per share for the current fiscal year.
NVIDIA Increases Dividend The business also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Thursday, June 4th were given a dividend of $0.25 per share. The ex-dividend date was Thursday, June 4th. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. This is an increase from NVIDIA’s previous quarterly dividend of $0.01. NVIDIA’s payout ratio is presently 15.31%.
NVIDIA declared that its Board of Directors has authorized a stock repurchase plan on Wednesday, May 20th that permits the company to repurchase $80.00 billion in shares. This repurchase authorization permits the computer hardware maker to buy up to 1.5% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s management believes its stock is undervalued.
Key Stories Impacting NVIDIA Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: Amazon supports demand outlook: Amazon raised its capital-expenditure forecast and downplayed competition between its custom AI chips and NVIDIA’s processors. The update reassured investors that hyperscaler spending remains a significant growth driver for NVIDIA. Nvidia Stock Rises. Thank Amazon. Positive Sentiment: Additional large-scale chip demand: Chinese AI company Moonshot reportedly has an Alibaba computing agreement involving approximately 20,000 NVIDIA chips. Although the arrangement is indirect, it highlights continued demand for NVIDIA’s accelerators across AI platforms. Moonshot has Nvidia chip cluster from Alibaba computing deal Positive Sentiment: Sector-wide investor support: Semiconductor ETFs attracted substantial new money as chip stocks rallied following strong technology earnings, providing a favorable backdrop for NVIDIA. Analysts also remain broadly bullish, with reported median price targets well above the current trading level and positive earnings-estimate revisions. Semiconductor ETFs Draw Cash This Week as Chip Stocks Rally Neutral Sentiment: Upcoming earnings catalyst: NVIDIA will report fiscal second-quarter 2027 results on August 26. Investors will focus on revenue growth, forward guidance and whether hyperscaler AI spending is translating into sustained orders. The company’s latest reported quarter showed $81.6 billion in revenue, up 85% year over year, and earnings above consensus. Negative Sentiment: Financing concerns remain: Investors continue to debate whether AI infrastructure expansion relies too heavily on leveraged or “circular” financing arrangements. Credit-market hedging activity and discussion of a potential financing backstop tied to an OpenAI data-center project could limit valuation expansion. NVIDIA Stock Is Still Up, But $250 Billion AI Risk Has Spooked The Debt Market Negative Sentiment: Bearish positioning and selling: Investor Michael Burry reportedly expanded bearish bets against NVIDIA, while recent insider and institutional selling adds a secondary source of caution. These transactions do not necessarily indicate deteriorating fundamentals but may contribute to volatility. Insider Activity at NVIDIA In other NVIDIA news, Director Mark A. Stevens sold 885,000 shares of the stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $210.17, for a total transaction of $186,000,450.00. Following the sale, the director owned 5,207,271 shares in the company, valued at approximately $1,094,412,146.07. This represents a 14.53% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Stephen C. Neal sold 15,500 shares of the firm’s stock in a transaction on Wednesday, June 3rd. The stock was 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. The trade was a 11.77% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 1,901,125 shares of company stock valued at $410,583,015. 3.94% of the stock is owned by corporate insiders.
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 3 Fixed-Income ETFs Show Why Yield Is Only Part of the Income Story AbbVie Quietly Solved Its Biggest Problem—Now What? Rio Tinto’s Results Make the Case for Looking Beyond Tech in the AI Trade Strategy’s Structural Strength: Hidden in a $8 Billion Illusion 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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Bellwether Advisors LLC lowered its stake in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 52.7% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 18,019 shares of the computer hardware maker’s stock after selling 20,057 shares during the period. Bellwether Advisors LLC’s holdings in NVIDIA were worth $3,143,000 as of its most recent filing with the Securities and Exchange Commission (SEC).
Other hedge funds have also recently modified their holdings of the company. Lifetime Wealth Management P.C. bought a new stake in NVIDIA in the 4th quarter worth approximately $26,000. Longview Financial Advisors Inc. purchased a new position in shares of NVIDIA in the first quarter valued at $27,000. Longfellow Investment Management Co. LLC grew its holdings in shares of NVIDIA by 47.9% in the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock valued at $33,000 after purchasing an additional 67 shares in the last quarter. Spurstone Advisory Services LLC bought a new stake in NVIDIA in the second quarter worth $40,000. Finally, Inspire Investing LLC purchased a new stake in NVIDIA during the fourth quarter valued at $44,000. Hedge funds and other institutional investors own 65.27% of the company’s stock.
Analyst Upgrades and Downgrades A number of equities analysts have commented on the stock. JPMorgan Chase & Co. lifted their price objective on shares of NVIDIA from $265.00 to $280.00 and gave the stock an “overweight” rating in a research note on Thursday, May 21st. Raymond James Financial restated a “strong-buy” rating and set a $330.00 target price on shares of NVIDIA in a research report on Thursday, May 21st. BNP Paribas Exane increased 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. Daiwa Securities Group boosted their price objective on NVIDIA from $215.00 to $255.00 and gave the stock an “outperform” rating in a research note on Friday, May 22nd. Finally, Seaport Research Partners upped their price objective on NVIDIA from $140.00 to $180.00 and gave the company a “sell” rating in a research report on Thursday, May 21st. Three investment analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, NVIDIA has a consensus rating of “Buy” and an average target price of $304.26.
View Our Latest Research Report on NVDA
NVIDIA Stock Performance Shares of NASDAQ NVDA opened at $200.75 on Monday. NVIDIA Corporation has a fifty-two week low of $164.07 and a fifty-two week high of $236.54. The company has a debt-to-equity ratio of 0.04, a quick ratio of 2.85 and a current ratio of 3.44. The company has a market cap of $4.86 trillion, a price-to-earnings ratio of 30.74, a PEG ratio of 0.39 and a beta of 2.23. The business’s 50 day moving average price is $205.41 and its 200-day moving average price is $196.20.
NVIDIA (NASDAQ:NVDA – Get Free Report) last announced its quarterly earnings data on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, beating the consensus estimate of $1.76 by $0.11. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The company had revenue of $81.61 billion for the quarter, compared to the consensus estimate of $78.42 billion. During the same quarter in the prior year, the company posted $0.81 EPS. NVIDIA’s quarterly revenue was up 85.2% on a year-over-year basis. On average, sell-side analysts expect that NVIDIA Corporation will post 8.79 earnings per share for the current year.
NVIDIA Increases Dividend The business also recently declared a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Thursday, June 4th were paid a $0.25 dividend. The ex-dividend date of this dividend was Thursday, June 4th. This represents a $1.00 annualized dividend and a yield of 0.5%. This is a boost from NVIDIA’s previous quarterly dividend of $0.01. NVIDIA’s payout ratio is 15.31%.
NVIDIA declared that its board has initiated a share repurchase program on Wednesday, May 20th that permits the company to buyback $80.00 billion in outstanding shares. This buyback authorization permits the computer hardware maker to reacquire up to 1.5% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s management believes its shares are undervalued.
Insider Buying and Selling In other news, Director John Dabiri sold 625 shares of the firm’s stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $214.00, for a total transaction of $133,750.00. Following the transaction, the director directly owned 14,163 shares of the company’s stock, valued at approximately $3,030,882. This trade represents a 4.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 885,000 shares of the business’s stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $210.17, for a total value of $186,000,450.00. Following the completion of the sale, the director owned 5,207,271 shares of the company’s stock, valued at $1,094,412,146.07. The trade was a 14.53% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,901,125 shares of company stock valued at $410,583,015 in the last 90 days. Company insiders own 3.94% of the company’s stock.
More NVIDIA News Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: Amazon supports demand outlook: Amazon raised its capital-expenditure forecast and downplayed competition between its custom AI chips and NVIDIA’s processors. The update reassured investors that hyperscaler spending remains a significant growth driver for NVIDIA. Nvidia Stock Rises. Thank Amazon. Positive Sentiment: Additional large-scale chip demand: Chinese AI company Moonshot reportedly has an Alibaba computing agreement involving approximately 20,000 NVIDIA chips. Although the arrangement is indirect, it highlights continued demand for NVIDIA’s accelerators across AI platforms. Moonshot has Nvidia chip cluster from Alibaba computing deal Positive Sentiment: Sector-wide investor support: Semiconductor ETFs attracted substantial new money as chip stocks rallied following strong technology earnings, providing a favorable backdrop for NVIDIA. Analysts also remain broadly bullish, with reported median price targets well above the current trading level and positive earnings-estimate revisions. Semiconductor ETFs Draw Cash This Week as Chip Stocks Rally Neutral Sentiment: Upcoming earnings catalyst: NVIDIA will report fiscal second-quarter 2027 results on August 26. Investors will focus on revenue growth, forward guidance and whether hyperscaler AI spending is translating into sustained orders. The company’s latest reported quarter showed $81.6 billion in revenue, up 85% year over year, and earnings above consensus. Negative Sentiment: Financing concerns remain: Investors continue to debate whether AI infrastructure expansion relies too heavily on leveraged or “circular” financing arrangements. Credit-market hedging activity and discussion of a potential financing backstop tied to an OpenAI data-center project could limit valuation expansion. NVIDIA Stock Is Still Up, But $250 Billion AI Risk Has Spooked The Debt Market Negative Sentiment: Bearish positioning and selling: Investor Michael Burry reportedly expanded bearish bets against NVIDIA, while recent insider and institutional selling adds a secondary source of caution. These transactions do not necessarily indicate deteriorating fundamentals but may contribute to volatility. About NVIDIA (Free Report)
NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.
The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.
Featured Articles Five stocks we like better than NVIDIA 3 Fixed-Income ETFs Show Why Yield Is Only Part of the Income Story AbbVie Quietly Solved Its Biggest Problem—Now What? Rio Tinto’s Results Make the Case for Looking Beyond Tech in the AI Trade Strategy’s Structural Strength: Hidden in a $8 Billion Illusion
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CacheTech Inc. boosted its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 10.7% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 51,649 shares of the computer hardware maker’s stock after purchasing an additional 5,009 shares during the quarter. NVIDIA comprises 1.7% of CacheTech Inc.’s portfolio, making the stock its 14th biggest holding. CacheTech Inc.’s holdings in NVIDIA were worth $9,008,000 as of its most recent SEC filing.
Other large investors also recently added to or reduced their stakes in the company. Lifetime Wealth Management P.C. bought a new position in shares of NVIDIA during the 4th quarter valued at about $26,000. Longview Financial Advisors Inc. purchased a new position in shares of NVIDIA during the first quarter valued at about $27,000. Longfellow Investment Management Co. LLC increased its holdings in shares of NVIDIA by 47.9% in the second quarter. Longfellow Investment Management Co. LLC now owns 207 shares of the computer hardware maker’s stock worth $33,000 after purchasing an additional 67 shares during the last quarter. Spurstone Advisory Services LLC purchased a new stake in shares of NVIDIA in the second quarter worth about $40,000. Finally, Inspire Investing LLC purchased a new stake in shares of NVIDIA in the fourth quarter worth about $44,000. 65.27% of the stock is owned by hedge funds and other institutional investors.
Wall Street Analyst Weigh In Several equities analysts have weighed in on NVDA shares. New Street Research cut their price target on NVIDIA from $343.00 to $340.00 in a report on Thursday, May 21st. Wells Fargo & Company reiterated an “overweight” rating and set a $315.00 target price (up from $265.00) on shares of NVIDIA in a research report on Tuesday, May 12th. Jefferies Financial Group reissued a “buy” rating and issued a $300.00 target price (up from $275.00) on shares of NVIDIA in a report on Thursday, May 21st. China Renaissance began coverage on shares of NVIDIA in a research report on Friday, June 5th. They issued a “buy” rating and a $319.00 price target on the stock. Finally, Rothschild & Co Redburn upped their price target on shares of NVIDIA from $280.00 to $300.00 and gave the company a “buy” rating in a research note on Tuesday, May 26th. Three analysts have rated the stock with a Strong Buy rating, forty-eight have given a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and a consensus target price of $304.26.
View Our Latest Stock Report on NVDA
NVIDIA Price Performance NVIDIA stock opened at $200.75 on Monday. NVIDIA Corporation has a 12-month low of $164.07 and a 12-month high of $236.54. The company has a current ratio of 3.44, a quick ratio of 2.85 and a debt-to-equity ratio of 0.04. The firm has a 50-day moving average price of $205.41 and a 200-day moving average price of $196.20. The firm has a market capitalization of $4.86 trillion, a PE ratio of 30.74, a price-to-earnings-growth ratio of 0.39 and a beta of 2.23.
NVIDIA (NASDAQ:NVDA – Get Free Report) last issued its quarterly earnings results on Wednesday, May 20th. The computer hardware maker reported $1.87 EPS for the quarter, beating the consensus estimate of $1.76 by $0.11. The company had revenue of $81.61 billion for the quarter, compared to the consensus estimate of $78.42 billion. NVIDIA had a net margin of 62.97% and a return on equity of 96.94%. The firm’s revenue was up 85.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.81 EPS. As a group, equities research analysts forecast that NVIDIA Corporation will post 8.79 EPS for the current year.
NVIDIA Increases Dividend The firm also recently declared a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Thursday, June 4th were issued a $0.25 dividend. The ex-dividend date was Thursday, June 4th. This is a positive change from NVIDIA’s previous quarterly dividend of $0.01. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. NVIDIA’s dividend payout ratio (DPR) is currently 15.31%.
NVIDIA announced that its board has initiated a stock repurchase plan on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in shares. This repurchase authorization authorizes the computer hardware maker to repurchase up to 1.5% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s board of directors believes its shares are undervalued.
Insider Transactions at NVIDIA In other NVIDIA news, Director John Dabiri sold 625 shares of the stock in a transaction on Wednesday, May 27th. The stock was 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 $3,030,882. This trade represents a 4.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephen C. Neal sold 15,500 shares of NVIDIA stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total value of $3,343,815.00. Following the sale, the director owned 116,135 shares of the company’s stock, valued at approximately $25,053,803.55. This trade represents a 11.77% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 1,901,125 shares of company stock worth $410,583,015. 3.94% of the stock is currently owned by company insiders.
Key NVIDIA News Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: Amazon supports demand outlook: Amazon raised its capital-expenditure forecast and downplayed competition between its custom AI chips and NVIDIA’s processors. The update reassured investors that hyperscaler spending remains a significant growth driver for NVIDIA. Nvidia Stock Rises. Thank Amazon. Positive Sentiment: Additional large-scale chip demand: Chinese AI company Moonshot reportedly has an Alibaba computing agreement involving approximately 20,000 NVIDIA chips. Although the arrangement is indirect, it highlights continued demand for NVIDIA’s accelerators across AI platforms. Moonshot has Nvidia chip cluster from Alibaba computing deal Positive Sentiment: Sector-wide investor support: Semiconductor ETFs attracted substantial new money as chip stocks rallied following strong technology earnings, providing a favorable backdrop for NVIDIA. Analysts also remain broadly bullish, with reported median price targets well above the current trading level and positive earnings-estimate revisions. Semiconductor ETFs Draw Cash This Week as Chip Stocks Rally Neutral Sentiment: Upcoming earnings catalyst: NVIDIA will report fiscal second-quarter 2027 results on August 26. Investors will focus on revenue growth, forward guidance and whether hyperscaler AI spending is translating into sustained orders. The company’s latest reported quarter showed $81.6 billion in revenue, up 85% year over year, and earnings above consensus. Negative Sentiment: Financing concerns remain: Investors continue to debate whether AI infrastructure expansion relies too heavily on leveraged or “circular” financing arrangements. Credit-market hedging activity and discussion of a potential financing backstop tied to an OpenAI data-center project could limit valuation expansion. NVIDIA Stock Is Still Up, But $250 Billion AI Risk Has Spooked The Debt Market Negative Sentiment: Bearish positioning and selling: Investor Michael Burry reportedly expanded bearish bets against NVIDIA, while recent insider and institutional selling adds a secondary source of caution. These transactions do not necessarily indicate deteriorating fundamentals but may contribute to volatility. About NVIDIA (Free Report)
NVIDIA Corporation, founded in 1993 and headquartered in Santa Clara, California, is a global technology company that designs and develops graphics processing units (GPUs) and system-on-chip (SoC) technologies. Co-founded by Jensen Huang, who serves as president and chief executive officer, along with Chris Malachowsky and Curtis Priem, NVIDIA has grown from a graphics-focused chipmaker into a broad provider of accelerated computing hardware and software for multiple industries.
The company’s product portfolio spans discrete GPUs for gaming and professional visualization (marketed under the GeForce and NVIDIA RTX lines), high-performance data center accelerators used for AI training and inference (including widely adopted platforms such as the A100 and H100 series), and Tegra SoCs for automotive and edge applications.
Featured Articles Five stocks we like better than NVIDIA 3 Fixed-Income ETFs Show Why Yield Is Only Part of the Income Story AbbVie Quietly Solved Its Biggest Problem—Now What? Rio Tinto’s Results Make the Case for Looking Beyond Tech in the AI Trade Strategy’s Structural Strength: Hidden in a $8 Billion Illusion
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Nvidia čelí rostoucímu tlaku na CUDA, protože AI nástroje a konkurence mohou její software snáze napodobit. Firma ale tvrdí, že její plně integrovaný hardware a software zůstává silnou výhodou.
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Nvidia founder and CEO Jensen Huang. Bloomberg/Getty Images Nvidia's biggest competitive advantage is no longer as untouchable as it once seemed.
For two decades, Nvidia's crown jewel wasn't just chips; it was the software that turned them into the building blocks of AI, known as CUDA.
Short for Compute Unified Device Architecture, CUDA is the brainchild of longtime Nvidia executive Ian Buck, who heads high-performance computing. It took years to build, with ready-made code for common AI tasks, tools to find bugs, and software that lets thousands of chips work together to train models.
Now, some believe AI could eventually automate one of the industry's hardest jobs: building the software that powers AI itself.
The industry is at an important threshold, says Jeremy Nixon, a former Google Brain researcher and the founder of AI software startup Infinity. He told Business Insider his startup used AI coding agents to recreate CUDA-like software for the chip startup D-Matrix in 10 hours — evidence, he said, that one of Nvidia's biggest moats is being crossed.
Infinity founder and CEO Jeremy Nixon. Infinity.inc The pressure doesn't only come from startups. Cloud giants like Google, Amazon, and Microsoft have spent years building software around their own AI chips, while OpenAI and Anthropic have recently demonstrated AI models capable of generating system software.
DeepSeek founder Liang Wenfeng recently said that coding agents, along with his startup's own programming language TileLang, have made AI software substantially easier to build.
Coding agents aren't just helping challengers.
Nvidia said developers increasingly use CUDA's code libraries to build AI applications, and that it also "uses AI coding agents to develop CUDA faster and validate at greater scale," said Ankit Patel, Nvidia's vice president of developer ecosystem.
Inference could change the CUDA equationIf CUDA's first advantage was software, the second is everything built on top of it. Millions of lines of code and internal workflows have been developed by companies, creating a powerful lock-in effect that makes switching to alternatives costly and cumbersome.
Internal documents at Amazon identified CUDA as a major roadblock to adoption of its Trainium and Inferentia AI chips, Business Insider previously reported.
CUDA's age is both an advantage and a constraint, said Chris Lattner, cofounder and CEO of Qualcomm-owned AI software startup Modular. Originally built for gaming long before the AI boom, CUDA carries layers of legacy technology, "like Microsoft Windows trying to fit onto a phone," he said.
Modular cofounder and CEO Chris Lattner. Modular Others say AI's shift from training toward inference — where models answer requests and draw conclusions — creates another threat.
With this evolution, companies care less about maximizing performance with the most powerful chips and more about running AI profitably, said Marshall Choy, chief business officer of Korean AI chip startup Rebellions.
This could result in greater demand not only for specialized hardware but for software that can run across different chips. If companies can switch between chips without rewriting software, that reduces one of CUDA's biggest lock-ins.
"That's where the CUDA moat from Nvidia gets broken because CUDA is no longer a factor in the inference side," Choy said. "It's an open source play."
Nvidia said that its tightly integrated hardware and software offerings have become more valuable as AI models get put to work.
"As AI shifts toward inference and agentic workloads, the need for deep, full-stack optimization only grows," Patel said.
A shift toward specialized chips and software has Wall Street increasingly questioning Nvidia's CUDA advantage, said Luke Lango, chief technology analyst at InvestorPlace. He said Nvidia's stagnant stock price over the past year reflects some of these concerns.
Nvidia's moat isn't disappearing — it's shiftingNot everyone agrees that coding agents are eroding CUDA's edge. Some believe they could ultimately strengthen it instead.
Though agents make it easier to generate software, AI-generated code still has to be verified and optimized, said Bing Xu, founder of AI software startup INT21. He believes CUDA has the deepest ecosystem of verification tools and other features that help coding agents work more efficiently.
As agents become more common, he said, that ecosystem will become CUDA's next moat.
"Agents can generate a lot of code in a short time, but verification is the biggest bottleneck," said Xu, whose last AI chip software startup, HippoML, was acquired by Nvidia. He left the chipmaker in April to build INT21.
INT21 founder and CEO Bing Xu. INT21 While coding agents do make it easier to build chip software, the improvement is incremental, Lattner said.
"The hype is not complete nonsense, but it is very overblown," he said, adding that writing code is only a small part of building software compared to more complex tasks like optimizing it for production — a critical task because software that maximizes a chip's performance reduces the cost of running AI at scale.
Chip software is also something of a niche field, often worked on by elite engineers, Lattner said, giving coding agents far fewer examples to learn from than, for instance, app development, where AI has been trained on vast amounts of public code.
And while AI may help rivals catch up, Nvidia benefits from the same technological shifts, Xu said. Whether coding agents weaken CUDA depends on whether competitors catch Nvidia faster than it can gain new ground.
The world's dominant chipmaker is "not sleeping or keeping still," Xu said.
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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.
Nvidia se připojila k nové AI Materials Foundry od CuspAI, která má urychlit objevování materiálů pro polovodiče a další technologie. Firma zatím neoznámila žádné očekávané tržby ani závazek k nákupu.
Nvidia stock NASDAQ:NVDA closed at $200.75 on Friday, rising 2.9% as strong cloud results from Microsoft and Amazon revived confidence in artificial-intelligence infrastructure spending.
Yet another, less visible part of the chipmaker’s growth strategy is emerging far from the data centres that dominate Wall Street’s attention.
Nvidia has joined CuspAI’s new AI Materials Foundry, a global network seeking to combine generative AI, accelerated simulations, scientific data and laboratory testing to discover materials for semiconductors, energy and advanced manufacturing.
The initiative is unlikely to change Nvidia’s earnings soon, but could extend the company’s reach into the scientific tools used to design the physical foundations of future technology.
CuspAI launched the foundry alongside a $450 million Series B fundraising that valued the Cambridge-based company at $2.6 billion.
More than 45 founding partners include Nvidia, Meta, Samsung Electronics, Applied Materials, Hyundai Motor Group, Tokyo Electron and Lam Research.
The group aims to shorten a materials-development process that can take years.
CuspAI’s approach covers generating candidate materials, simulating their properties, planning synthesis, validating results in laboratories and eventually preparing successful compounds for production.
Nvidia’s role is strategically important because those simulations demand substantial computing power.
Its ALCHEMI platform provides GPU-accelerated microservices and software tools for chemistry and materials research.
Nvidia says its batched geometry-relaxation technology can accelerate certain material-stability simulations by as much as 100 times.
The immediate stock argument is not that CuspAI will suddenly become a major customer. No expected revenue or purchase commitment from the partnership has been announced.
The opportunity is that materials discovery could become another specialised workload tied to Nvidia processors, CUDA-X software and cloud infrastructure.
Wall Street’s Nvidia thesis remains firmly elsewhereAnalysts’ bullish Nvidia calls still rest on established strengths rather than the materials alliance.
Bank of America analyst Vivek Arya said investors were overlooking an “enhanced” buying opportunity.
Arya argued that concerns about rising memory costs and competition from custom chips underestimated Nvidia’s pricing power, scale and supply-chain commitments.
KeyBanc analyst John Vinh raised his price target to $330 from $310 and maintained an Outperform rating. His confidence reflects the competitive barriers created by Nvidia’s hardware and CUDA software ecosystem.
ALCHEMI fits that broader logic as each specialist workload added to the platform may make Nvidia harder to replace.
Bernstein analyst Stacy Rasgon also maintained a Buy rating and $315 target despite concerns about Nvidia’s increasingly interconnected AI deals.
Also read: Nvidia, Alphabet among 5 stocks that fit Jim Cramer’s favourite dip-buying rule
AI-generated materials must still survive physical testing, regulatory reviews and mass-production requirements.
Moving from a promising simulation to a commercially useful semiconductor material could take years, and many candidates will fail.
There is also a broader risk as scientific computing will matter less to Nvidia shares if spending by its largest customers slows.
Jim Paulsen warned that flat or declining US core capital spending could force a “major readjustment” among investors committed to the AI-spending story, Business Insider reported.
Microsoft and Amazon offered a more encouraging signal as their latest cloud growth showed that heavy AI investment is producing revenue, supporting continued infrastructure demand.
NVIDIA vykázala tržby ve výši 81,615 miliardy USD, což představuje meziroční růst o 85,23 %, a datacentrový segment vzrostl o 92 % na 75,25 miliardy USD. Alphabet měl tržby 119,80 miliardy USD, o 24,2 % více, a Google Cloud vyskočil o 82 % na 24,77 miliardy USD.
NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) and Alphabet (NASDAQ:GOOG) both reported quarters that reshape how investors should think about AI leadership.
NVIDIA delivered $81.615 billion in revenue, up 85.23%. Alphabet pulled in $119.80 billion, up 24.2%. Same tailwind, very different business models, and the results expose the split.
Data Center Explodes for NVIDIA. Cloud Accelerates for Alphabet. NVIDIA’s Data Center segment hit $75.25 billion, up 92%, with networking alone growing 199% on InfiniBand, NVLink, and Spectrum-X demand.
Jensen Huang framed it plainly: “The buildout of AI factories, the largest infrastructure expansion in human history, is accelerating at extraordinary speed.” Guidance for Q2 lands at $91 billion, and notably excludes any China Data Center compute revenue.
Alphabet’s headline was Google Cloud reaching $24.77 billion, growing 82%. Sundar Pichai emphasized adoption: “Nearly 90% of the Fortune 100 using it” referring to Gemini Enterprise, while Gemini models process 22 billion API tokens per minute. Search advertising still funds the whole machine at $63.27 billion, up 17%.
Picks and Shovels vs. Full Vertical Stack NVIDIA sells the compute. Alphabet builds on it, and also buys it. Pichai even said Google Cloud will be “among the first to offer NVIDIA Vera Rubin NVL72”, which makes GOOG both a customer and a competitor thanks to its own TPUs. That vertical integration is the pitch: “We’re unique in the market because of our vertically optimized AI stack.”
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Business Driver NVIDIA Alphabet Main Growth Engine Data Center chips and networking Cloud plus AI-enhanced Search Operating Margin 60.4% 32.1% YoY Revenue Growth 85.23% 24.2% NVIDIA hiked its dividend from $0.01 to $0.25 and authorized $80 billion in buybacks. Alphabet went the other direction, suspending buybacks and raising roughly $70 billion in debt and equity to fund a capex plan now guided to $180-190 billion for 2026. Free cash flow at GOOG turned negative at -$5.86 billion. That is the cost of racing to own the stack.
What I’m Watching Into the Back Half of 2026 For NVIDIA, I want to see whether the Blackwell 300 ramp and Vera Rubin roadmap can offset a shut-out China market. Total supply commitments already sit at $119 billion, which signals confidence but locks in execution risk. Post-earnings price behavior has been mixed too. Shares closed at $200.75, up just 13.01% over a year, well below Alphabet’s 85.46% one-year gain.
For Alphabet, the question is whether cloud backlog and Gemini monetization scale fast enough to justify depreciation from that capex surge. Long-term debt already jumped from $46.5 billion to $98.2 billion. That is a lot of leverage on a bet that AI infrastructure returns hold up.
Why I’d Own Both, but for Different Reasons NVIDIA offers the purest exposure to the AI infrastructure cycle. The margins are extraordinary at 75% non-GAAP gross, and the P/E of 41x is defensible against 85% revenue growth. If China ever reopens, that becomes upside on top of the current thesis.
Alphabet fits me better as a compounder. A P/E near 15 for a business growing revenue in the mid-20s with an accelerating cloud engine feels like the more forgiving setup. If capex fatigue hits AI names later this year, GOOG’s ad cash flows offer a cushion NVIDIA does not have. Both names carry real risk, and position sizing should track how much AI capex volatility an investor can absorb.
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Investors have long been bullish on Nvidia (NVDA +2.93%) for many reasons, but one that may not get a lot of direct attention is its backlog. Amid the massive demand for its AI accelerators, it accumulated a backlog of $500 billion in combined bookings for 2025 and 2026. Also, when CEO Jensen Huang was in Seoul in June, he stated that we are at the beginning of the AI boom, even as Nvidia stock has made massive gains over the last four years.
However, semiconductor stocks, including the chip giant, have pulled back in recent trading sessions as concerns about high capital expenditures (capex) and circular financing have given investors pause. Despite those concerns, investors should consider using this pullback to add shares. Here's why.
Image source: The Motley Fool.
The state of Nvidia Admittedly, the uncertainty surrounding Nvidia is understandable. The estimated $725 billion in planned capex by hyperscalers could raise doubts about access to credit. Moreover, Nvidia is an investor in many of its customers, leading to questions about whether the $500 billion is a true reflection of the backlog.
Nonetheless, other factors cast doubt as to whether Nvidia is really in trouble. Huang added that investors should be "very happy" since they can "buy at a discount." He appears to have a point. Its stock sells at a P/E ratio of 30, barely above the S&P 500 average of 29.
Despite that valuation and Huang's assertion about the AI boom, Nvidia is not trading at a premium. In the first quarter of fiscal 2027 (ended April 26), its revenue of $81.6 billion rose by 85% from year-ago levels. That led to $58.3 billion in net income, a 211% annual increase. Also, since revenue surged 65% higher in fiscal 2026, its quarterly growth is more than a one-time event.
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Considering Nvidia's growth rate, it likely does not need to artificially inflate its growth. Additionally, the "circular financing" is a reflection of its AI needs.
For example, it is an investor in the neocloud company CoreWeave, which is also a customer. In a technical sense, Nvidia does not "need" CoreWeave to grow.
Still, CoreWeave gives Nvidia a platform where it can more quickly deploy and test its hardware. Also, since the neocloud industry is new, the leading companies do not have the backing to scale quickly on their own.
With Nvidia's support, they can build faster, facilitating faster adoption of its technology. This means that such investments could pay off for Nvidia longer-term and, ultimately, ease the concerns of investors.
Moving forward with Nvidia Despite doubts, Nvidia's backlog is a reason to buy its stock.
Indeed, concerns about credit accessibility could slow growth and discourage some investors from buying its stock. Also, its so-called "circular financing" makes it look like Nvidia has to buy its growth.
However, the stock's P/E ratio seems to confirm that it sells at a discount. Also, it appears investments like its position in CoreWeave contribute to the improvement and rapid deployment of its hardware.
Thus, despite the concerns, investors should continue to believe in Nvidia's growth. Considering its comparatively low P/E ratio, investors have good reason to look past the uncertainty and take a position in the chip stock.
Alphabet klesl po zvýšení výhledu kapitálových výdajů na rok 2026 na 195 až 205 miliard USD, i když tržby Google Cloud vyskočily o 82 % na 24,8 miliardy USD.
Jim Cramer’s favourite dip-buying rule starts with a margin decline, but it does not end there.
Investors must decide whether profits are temporarily compressed by investment or permanently damaged by weak demand and competition.
Meta Platforms, Alphabet and SoFi are the clearest tests after their shares were punished by spending increases or cautious guidance.
Intel illustrates how the market can reward a recovery, while Nvidia is a corrected leader rather than a beaten-down stock.
These five companies fit the framework based on Cramer’s framework, but he did not individually recommend them as a group.
Meta stock fell 9.5% after second-quarter results as investors focused on a 91% collapse in free cash flow to $784 million and capital expenditure approaching $145 billion this year.
Yet advertising revenue rose 27% to $59.36 billion, showing that the core business remains healthy.
Deutsche Bank analyst Benjamin Black maintained a Buy rating and an $800 target before the results.
Business Insider reported that Black believed Meta’s discount failed to reflect the durability of advertising and monetisation from AI, subscriptions, business agents and cloud infrastructure.
The opportunity fits Cramer’s rule, but only if Meta turns computing investment into measurable revenue.
Alphabet dropped after raising its 2026 capital-spending forecast to $195 billion-$205 billion, even as Google Cloud revenue surged 82% to $24.8 billion.
The company also recorded negative free cash flow of $5.9 billion.
Wedbush analyst Ygal Arounian wrote in a note cited by Barron’s that investment was scaling because “compute remains constrained” and demand remained strong.
That supports the argument that Alphabet is spending to serve customers rather than defend a shrinking business.
However, depreciation and infrastructure costs must eventually be matched by sustainable cloud profits, making the stock vulnerable if growth slows before spending peaks.
SoFi fell 9% despite beating earnings and revenue expectations, as investors concentrated on cautious second-half guidance and a 23% decline in technology-platform revenue.
William Blair analyst Andrew Jeffrey retained an Outperform rating and encouraged investors to buy the weakness.
He argued that expanding originations and retaining more loans could support stronger returns.
KBW analyst Tim Switzer offered the warning, calling the result a “lower-quality beat” because growth relied heavily on SoFi’s balance sheet.
SoFi is the most traditional dip candidate here, but its recovery requires better platform growth and disciplined credit performance.
Intel is not beaten down, with its shares having rallied in 2026. It instead demonstrates what can happen when a margin-recovery thesis gains credibility.
Morningstar analyst Brian Colello raised his fair-value estimate to $105 from $90 after what he called a “stunning rise in server CPU demand”.
AI data centres still require conventional processors alongside accelerators, supporting Intel’s server business.
The risks remain substantial as foundry investment, manufacturing execution and competition from AMD, Arm-based designs and Nvidia.
Investors applying Cramer’s rule today would need another pullback rather than chasing a recovery already reflected in the price.
Nvidia’s recent correction revived the argument that temporary fear can create an entry into a dominant company.
Concerns centre on hyperscaler cash flow, investments in customers and whether interconnected AI financing is supporting demand.
Bernstein analyst Stacy Rasgon maintained a Buy rating and a $315 target in July, implying upside from the price at the time.
Nvidia remains the highest-quality business in this framework but the least conventionally beaten down.
Its test is whether spending by cloud companies reflects durable end-user demand.
Cramer’s rule works only when weaker margins fund future growth, not when they reveal a business losing its competitive edge.
Nvidia stále míří na kumulované tržby z datových center kolem 1 bilionu USD do konce roku 2027. Finanční ředitel ale varuje před riziky v dodavatelském řetězci a konkurencí ze strany vlastních zákazníků.
During the company's GTC conference in March, Nvidia (NVDA +2.93%) CEO Jensen Huang expressed confidence in the company's opportunity in the artificial intelligence (AI) chip market.
"We saw $500 billion of very high confidence demand and purchase orders for Blackwell and Rubin through 2026," Huang said. "I'm here to tell you that right now where I stand ... I see through 2027 at least $1 trillion."
Recent results indicate that Nvidia is very much on pace to hit that target -- but some risks could derail its momentum.
Jensen Huang speaking at a conference. Image source: Nvidia.
Nvidia's growth path Over the past year, Nvidia's data center revenue made up roughly 90% of its total revenue, and its Blackwell chips have been the main engine behind that growth. In the fiscal first quarter of 2027 (which ends in January), data center revenue grew 92% year over year to $75 billion.
In fiscal 2026, which mostly aligns with calendar 2025, Nvidia generated $216 billion in total revenue, with nearly $194 billion from data centers. Wall Street's consensus estimate currently forecasts total revenue of $394 billion this year and $561 billion next year -- about $1.17 trillion in cumulative total revenue since last year.
If Nvidia's data center segment remains about 90% of total revenue, that implies cumulative data center sales from last year -- largely from Blackwell and the new Rubin chips -- will exceed $1 trillion by the end of next year.
Management has stuck with that forecast. During the company's fiscal first-quarter earnings call, CFO Colette Kress said, "We are continuing to work vigorously on our supply chain ecosystem to address the incredible demand we see ahead of us, giving us full confidence in the $1 trillion in Blackwell and Rubin revenue we foresee from 2025 through calendar 2027."
However, Kress' comment about working on its supply chain implies the risks that could prevent Nvidia from meeting its forecast.
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Risks to watch A key risk is execution. AI demand has created one huge bottleneck from data center construction to memory and other components needed to build advanced chips. Demand for Nvidia's hardware looks enormous, but the open question is whether Nvidia can ship enough to meet it.
Another risk is competition from Nvidia's own customers, such as Amazon and Alphabet's Google, which are designing custom AI chips for their cloud platforms. Top cloud companies have previously made up about half of Nvidia's data center revenue. If those customers shift more workloads to in-house silicon, Nvidia's growth could slow.
That's also why Nvidia has been striking partnerships with neocloud and sovereign customers, including IREN and leading Japanese manufacturers. Nvidia needs to reduce its dependence on sales to big tech companies that are increasingly focusing on their own chips.
The $1 trillion cumulative sales target is still in play -- but it isn't guaranteed. If the data center market slows or supply constraints limit Nvidia's ability to fulfill orders, it could pressure growth and the stock.
John Ballard has positions in Amazon, Iren, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, and Nvidia. The Motley Fool has a disclosure policy.
Nvidia (NVDA +2.93%) is only up by 4% year to date, but comments from tech analyst Dan Ives suggest that the sluggish returns won't last for long.
"Demand to supply today is 12 to 1 for their chips. Physical AI hasn't even started to play out," Ives said on CNBC. The long-established tech bull also believes the AI revolution is only in the third inning.
His comments suggest Nvidia can break out of its market underperformance, and there's some evidence pointing in that direction.
Image source: Getty Images.
Tech giants are committed to high capital expenditures Nvidia's biggest customers are rushing to spend as much money on AI as possible. While Nvidia's GPUs aren't the only part of capital expenditures, they are a large focus for tech giants.
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Alphabet raised its full-year capital expenditure guidance to $195 billion-$205 billion. That's a meaningful jump from the $180 billion-$190 billion in guided capital expenditures earlier in the year. Amazon also raised its projected capital expenditures to $220 billion, with higher memory costs playing a big role.
All of these AI expenditures are coming with revenue acceleration. Microsoft also set ambitious capital expenditure targets but told investors it would achieve positive free cash flow in fiscal 2027. That news eased investors' concerns about AI costs, as Microsoft confirmed it wouldn't need to rely on dilution or bonds to fund AI spending.
Nvidia's fundamentals continue to improve There is a meaningful mismatch between Nvidia's 4% year-to-date returns and its financial performance. The ongoing supply shortage suggests Nvidia can maintain its current momentum, putting it at further odds with its recent returns.
Revenue surged by 85% year over year in the company's fiscal 2027 first quarter (ended April 26, 2026). Net income more than tripled year over year, resulting in a 22 forward P/E ratio. Its P/E ratio is a similar value to the S&P 500's P/E ratio, even though Nvidia grows faster than almost every company on the index.
When companies like Nvidia deliver high revenue numbers, some investors wonder how long it will last. Ives' commentary suggests this is still early, which is a good sign for Nvidia investors. If the shortage is really 12:1, there are a lot more chips that tech companies need to buy. Physical AI like humanoid robots and self-driving vehicles can expand the shortage and give Nvidia more years of exceptional revenue growth.
As investors realize Nvidia's growth can last for multiple years, they will rerate the stock higher from current levels.
Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
Nvidia ještě tento měsíc zveřejní hospodářské výsledky za 2. čtvrtletí a investoři budou sledovat Blackwell, Vera Rubin i případné známky zpomalování prodejů. Firma zároveň čelí rostoucí konkurenci, protože zákazníci vyvíjejí vlastní AI čipy.
Nvidia (NVDA +2.93%), arguably the most popular artificial intelligence (AI) stock on the planet, is also the most valuable company on the planet. Its growth trajectory, however, could just be getting started.
According to research from Stanford University, today's AI models already meet or exceed human baselines on Ph.D.-level science questions, multimodal reasoning, and competition mathematics. But there's still a long way to go until these models control huge swaths of the economy. One model, for example, recently won a gold medal at an international math competition. Yet that same model was able to read analog clocks correctly just 50.1% of the time.
In short, we are still very much in the early innings of both AI adoption and AI capabilities. McKinsey & Company forecasts that more than $5 trillion will be spent globally through 2030 alone on building additional data center infrastructure. Through 2040, a staggering $19 trillion is projected to be deployed to fuel the AI revolution.
As the world's largest AI chip manufacturer, Nvidia sits at the center of this ongoing revolution. Later this month, the company reports second-quarter earnings after market close. Here are the two biggest factors investors should be monitoring.
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1. What is happening with Blackwell and Vera Rubin? Nvidia's Blackwell architecture was officially announced in early 2024. Shipments began later that year. These chips quickly sold out, and at one point, reports suggested that a backlog existed that could persist for 12 months or longer. If there was any doubt that Nvidia's graphics processing units (GPUs) were dominant, Blackwell's initial sales traction put those doubts to rest.
Nvidia's Vera Rubin architecture was also teased in 2024. Sales, however, only began earlier this year. While reports have suggested production issues, Nvidia CEO Jensen Huang recently confirmed that "Vera Rubin is already in production," adding that there are "giant amounts of production incoming."
While the two are designed for different purposes, Nvidia's next earnings report should shed light on whether Vera Rubin sales are competing with Blackwell sales. We'll also get a better idea of Vera Rubin's sales pace and potential backlog, as well as more firm updates on production. The specifics of these updates should have a big effect on the market's understanding of Nvidia's current competitiveness and future sales potential.
Image source: Getty Images.
2. Is management concerned with rising competition? While other experts will be keeping a close eye on margins, China exposure, and future product teasers, I'll be monitoring Nvidia management's comments on rising competition for GPU manufacturing.
Scores of companies, ranging from space stocks like SpaceX to electric vehicle makers like Rivian, are planning to design and build their own AI chips in-house. These companies will remain heavily reliant on Nvidia over the coming years until their internal manufacturing facilities are built and up to spec. How concerned is Nvidia regarding the long-term potential of key clients manufacturing their own chips?
"Company after company has lined up to challenge Nvidia's grip on AI chips," reports Quartz. "The big cloud providers building their own chips aren't walking away from Nvidia entirely," the publication stresses. But they are looking to reduce their reliance on Nvidia, which, by most estimates, holds 70% to 95% of the AI chip market.
The AI market is growing so quickly that Nvidia can afford to lose share and still grow in absolute size. This quarter -- and in future quarters -- I'll be closely monitoring how management is discussing rising competition, especially from key customers.
Nvidia rozšiřuje sázku na fyzickou AI a autonomní vozidla, kde už spolupracuje s Uberem, Toyota, Stellantis, Mercedes-Benz, BYD a Geely. Jensen Huang vidí tento byznys na 100 miliard USD ročních tržeb během příští dekády.
Before ChatGPT launched, Nvidia (NVDA +2.93%) was worth $386 billion.
Today, largely because of the generative AI boom unleashed by ChatGPT, the company is worth more than ten times that, currently valued at nearly $5 trillion.
Now, there's another technological revolution unfolding that Nvidia is also leading, and it could be a significant long-term driver for the stock. I'm talking about the autonomous vehicle and robotics market, or, more broadly, what CEO Jensen Huang calls physical AI.
Image source: Nvidia.
Nvidia and physical AI Nvidia is best known for its GPUs and the related components that power AI compute in the data center, but the company has also built a substantial advantage in physical AI components.
Its Jetson Thor supercomputer, for example, is widely considered the market leader for raw AI inference and robotics simulation. Nvidia sells Jetson Thor to a wide range of robotics companies, including Boston Dynamics, Amazon Robotics, Caterpillar, Deere, and others.
Those companies are using Jetson Thor for applications like computer vision to help operate robots and machines in Amazon's warehouses or agricultural fields for Deere.
Jetson Thor has also been adopted by tech companies like Meta and OpenAI, as well as healthcare companies like Medtronic.
While the robotics market is growing rapidly, the bigger prize here for Nvidia seems to be autonomous vehicles, an industry that could be approaching a tipping point. Alphabet's Waymo is now handling 500,000 weekly paid rides, more than doubling from a year ago, and it operates in 10 metro areas. Tesla's robotaxis are now available in seven cities, and other AV companies are expanding rapidly as well.
While Waymo and Tesla aren't direct AV partners of Nvidia, the chipmaker has signed up a number of key AV companies, including Uber, Toyota, Stellantis, Mercedes-Benz, and two Chinese EV makers, BYD and Geely.
Its most important automotive partnership is with Uber, as the ridesharing giant is working with Nvidia and OEMs like Stellantis to deliver at least 5,000 Level 4 autonomous vehicles for a robotaxi network. Nvidia's DRIVE AGX Hyperion AV platform will provide the brains for the AVs as it does for the other companies listed above.
What the numbers say Nvidia's automotive business is still small, reporting just $2.3 billion in revenue in fiscal 2026, which was up 39% from the year before. In fiscal 2027, which started earlier this year, Nvidia restructured its reporting segments to combine the three non-data-center segments (Gaming and AI PC; Professional Visualization; Automotive and Robotics) into one, Edge Computing.
As a result, investors won't get the same level of transparency on the automotive business, but Nvidia is providing updates on it.
Though it's small now, the physical AI business is likely to deliver returns over a longer time horizon, as Jensen Huang recently said it's now generating $10 billion in annual run rate revenue, and he sees it growing to $100 billion within the next decade.
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Nvidia is already valued at $5 trillion, and it trades at a forward P/E of just 22, less than the S&P 500, even though analysts expect revenue to grow 82% this year.
That mismatch seems to owe to the historical cyclicality of the semiconductor sector and the risk of an AI bubble. Investors are hedging their bets that Nvidia's bumper profits will eventually decline, or at least that its growth will slow significantly.
The physical AI business provides an antidote to this. It's a totally separate vertical from data centers and generative AI, and should be less cyclical, as transportation is a constant need. Additionally, the company uses a recurring software-as-a-service model for part of its AV business, including the Drive AV stack.
That could give the physical AI business a significantly higher multiple than Nvidia's hardware business, as software typically trades at a higher valuation than hardware. If it reaches $100 billion in revenue, the physical AI business could earn a market value of $2 trillion or more, depending on its growth rate and profitability.
By making Nvidia more resilient to an AI downturn, the business should also help lift its valuation. Combine those benefits with the continued growth in the core data center segment, and it's not hard to see the company reaching $10 trillion in a few years.
Item 1 of 2 The Alibaba logo is seen in this illustration taken on January 29, 2025. REUTERS/Dado Ruvic/Illustration
[1/2]The Alibaba logo is seen in this illustration taken on January 29, 2025. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
July 31 (Reuters) - Chinese AI firm Moonshot has a computing agreement with Alibaba Group (9988.HK), opens new tab for the use of about 20,000 Nvidia (NVDA.O), opens new tab chips, Bloomberg News reported on Friday, citing people familiar with the matter.
Alibaba, one of Moonshot's largest investors, expects portfolio companies to use its cloud, the report said. The Nvidia chip cluster Alibaba provides accounts for a key portion of the computing power behind Moonshot's Kimi models, it added.
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Moonshot earlier this month unveiled Kimi K3, a 2.8-trillion-parameter model. It said Kimi K3 was the world's largest open-weight AI system and delivered performance approaching U.S. giant Anthropic's frontier Fable model.
U.S. export controls on advanced Nvidia chips have made access to computing power a key constraint for Chinese companies.
Moonshot can access Nvidia's newer Blackwell processors through Southeast Asia and is seeking additional chips to train its next AI model, Bloomberg reported.
Separately, the roughly 20,000 Nvidia chips Moonshot has access to are from the chip giant's earlier Hopper generation, the report said.
Before Nvidia rolled out its Blackwell lineup, Hopper chips were used across the AI industry to train and deploy models.
An Alibaba spokesperson denied to Bloomberg that the company provides H200-powered computing services to Moonshot.
Moonshot's Kimi model surpassed Alibaba's Qwen on key performance measures despite access to similar training resources, disappointing some Alibaba employees, the report said.
Reuters could not independently confirm the report. Moonshot and Alibaba could not be reached for comment outside regular business hours.
The White House, the U.S. Commerce Department and Nvidia did not immediately respond to Reuters' requests for comment.
The report comes as Moonshot faces growing scrutiny from U.S. officials. The U.S. government had information indicating Moonshot distilled Anthropic's Claude Fable 5 model to develop Kimi K3, the White House's top tech adviser, Michael Kratsios, said last week.
Reporting by Anhata Rooprai in Bengaluru; Editing by Shreya Biswas
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Nvidia (NVDA +2.65%) has been around since 1993, but it came into the spotlight for its graphics processing units (GPUs), which are crucial for training and scaling artificial intelligence (AI). They provide much of the compute power that powers AI workloads.
At the beginning of the current AI boom, the goal for tech giants was simply acquiring as much compute power (i.e., GPUs) as possible. Now, the focus has shifted to memory chips, but as Nvidia's CEO, Jensen Huang, highlighted, those memory chips are now AI's biggest bottleneck.
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Why memory is important to AI and Nvidia AI training and application rely on trillions of data points, and it wouldn't be possible to store and quickly retrieve them without specialized memory chips. As AI is used for handling more complex tasks -- such as running autonomous agents or processing complicated context instead of providing recipes or travel recommendations -- the need for high bandwidth memory has become increasingly important.
Nvidia began its reign selling its GPUs and AI hardware, but now it's building systems with multiple working parts, including memory chips that are packed into its hardware. That means relying on memory chipmakers, such as Micron, SK Hynix, and Samsung, for a continuous, high-volume supply.
Unfortunately, making those specialized memory chips is far from simple, which is why only a handful of companies make the vast bulk of them.
Nvidia CEO Jensen Huang. Image source: Nvidia.
What does it mean for Nvidia? The downside to the shortage is that Nvidia is at the mercy of memory chip suppliers for its own supply chain. If the suppliers can't make memory chips fast enough, Nvidia will have to wait, potentially affecting its own business.
The positive is that Nvidia has the cash and purchasing scale to have priority on the memory chips being made. In its most recent quarter (ended April 26), it generated $48.6 billion in free cash flow and finished the quarter with $13.2 billion in cash and cash equivalents. It can easily pay a premium to buy them in bulk, shutting out smaller competitors and further cementing its stronghold on the industry.
Investors shouldn't hear Huang's message and become concerned; it's just the next chapter of the AI evolution. If anything, it should be encouraging that Nvidia can use its leadership position to be a long-term force, regardless of the current hiccup.
Nvidia's stock has been a disappointment this year, up only 0.60% year to date as of market close on July 29, but much of that has to do with overall sentiment surrounding big tech and the "Magnificent Seven" stocks as a whole, versus disappointing business performance from Nvidia.
NVIDIA i AMD po výsledcích za čtvrtletí znovu posunuly příběh AI čipů. NVIDIA zůstává infrastrukturním lídrem s tržbami 81,615 miliardy USD a datacentrovým segmentem 75,246 miliardy USD, zatímco AMD roste jako druhá alternativa pro hyperscalery. AMD následně vykázala tržby 10,253 miliardy USD.
NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) and Advanced Micro Devices (NASDAQ:AMD) both delivered post-earnings updates that reshape the AI chip narrative. NVIDIA posted $81.615 billion in Q1 FY2027 revenue, while AMD followed with $10.253 billion. One is the infrastructure utility. The other is finally the credible second source hyperscalers actually deploy at scale.
Data Center Carries Both. Only One Prints Utility Margins. NVIDIA’s Data Center segment reached $75.246 billion, up 92% YoY, with networking exploding 199% as InfiniBand, NVLink, and Spectrum-X locked customers into the full rack. Jensen Huang called the buildout “the largest infrastructure expansion in human history”, and the 75.0% non-GAAP gross margin backs that framing.
AMD’s Data Center revenue hit $5.775 billion, up 57% YoY, and became the primary earnings driver. Lisa Su told investors “customer forecasts exceeding our initial expectations” around MI450 and Helios. EPYC server revenue grew more than 50% year-over-year, its fourth straight record quarter. Gross margin sits at 55%, respectable but a full turn behind NVIDIA.
Driver NVIDIA AMD Data Center growth +92% YoY +57% YoY Non-GAAP gross margin 75.0% 55% Free cash flow $48.554B $2.566B Infrastructure Utility vs. Merchant Second Source NVIDIA owns the software, networking, and rack architecture. That is why 80%+ chip margins translate into predictable cash flow and support a $80 billion new buyback authorization plus a dividend hike to $0.25 per share.
AMD’s role has genuinely changed. Meta committed to 6 gigawatts of AMD Instinct GPUs including a custom MI450 chip, layered onto the earlier 6 gigawatt OpenAI commitment. Su even flagged a CPU-to-GPU ratio shifting from “1:4 or 1:8 configurations toward something closer to 1:1”, which quietly expands the EPYC opportunity as agentic workloads spread.
The Next Test Is Helios, Rubin, and China AMD’s MI450 volume ramp lands in Q3, with Helios rack-scale competing directly against NVIDIA’s Vera Rubin roadmap. NVIDIA guided Q2 revenue to $91.0 billion, excluding China Data Center compute entirely. AMD guided to roughly $11.2 billion. I will keep an eye on whether Helios deployments actually convert pilots into production, and whether NVIDIA’s networking growth holds once merchant fabrics mature.
Why I Split the Trade Between Them Personally, I lean toward NVIDIA as the core position. Free cash flow of $48.554 billion in a single quarter, a P/E near 32, and analyst buy ratings of 58 support the utility thesis. AMD is the higher-variance sleeve. Its stock is up 131.11% YTD but trades at a P/E of 175, leaving little room for stumbles. If you want durability, NVIDIA. If you want torque on every hyperscaler headline, AMD. I would hesitate to own only one.
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Nvidia ve čtvrtek vzrostla asi o 3 % po silných výsledcích Microsoftu, které obnovily optimismus kolem výdajů na AI infrastrukturu. Polovodičové akcie tím po týdnu výprodejů oživily.
Nvidia stock NVDA rebounded around 3% on Thursday as strong results from Microsoft reignited optimism around artificial intelligence infrastructure spending, lifting semiconductor stocks after a week of heavy selling.
The stock traded around $195.50 in early trading. Intel rose about 12%, while Advanced Micro Devices gained roughly 13%.
The broader market also advanced after Wednesday's selloff following the Federal Reserve's decision to leave interest rates unchanged.
The Nasdaq Composite rose 2%, the S&P 500 gained 1%, and the Dow Jones Industrial Average added 308 points, or 0.6%.
Semiconductor stocks rallied after Microsoft reported strong growth in its Azure cloud business, easing investor concerns that hyperscale technology companies could begin pulling back on artificial intelligence investment.
The iShares Semiconductor ETF climbed more than 7% in early trading, while the PHLX Semiconductor Index looked set to snap a five-session losing streak.
Microsoft also reassured investors by keeping its calendar 2026 capital expenditure plans unchanged, avoiding another sharp increase in spending after several quarters of aggressive AI investment.
Meta Platforms, by contrast, fell about 8% after issuing a softer-than-expected revenue forecast and reporting a 91% decline in second-quarter free cash flow.
The company modestly increased the lower end of its 2026 capital expenditure guidance to a range of $130 billion to $145 billion, compared with its previous outlook of $125 billion to $145 billion.
The mixed results highlighted a shift in investor focus from simply rewarding higher AI spending toward evaluating whether companies can balance investment with profitability and cash generation.
Thursday's gains followed several weeks of pressure on Nvidia shares.
The stock recently lost its position as the world's most valuable listed company to Apple after a sharp decline driven by concerns over AI spending, financing structures, and rising competition in the semiconductor industry.
Investor sentiment was also weighed down by reports that a Chinese company had begun mass-producing key chipmaking equipment, raising questions about future competitive dynamics.
In addition, The Wall Street Journal reported that Nvidia is discussing a roughly $250 billion financing guarantee to support OpenAI's lease of a large data centre project in Ohio.
The proposed arrangement would help OpenAI secure more favourable financing while supporting long-term demand for Nvidia's AI chips.
However, the report also prompted concerns among some investors that financing agreements between Nvidia and its customers could resemble the circular financing structures that emerged during the dotcom era.
Thursday's rally suggested investors were once again focusing on the underlying outlook for AI infrastructure demand, with Microsoft's cloud performance helping restore confidence that spending by the industry's largest customers remains resilient despite growing scrutiny over capital allocation.
Charles Payne tvrdí, že AI není dot-com bublina, protože NVIDIA vykazuje silný růst zisku i tržeb. V posledním čtvrtletí měla tržby 81,615 miliardy USD, meziročně o 85,23 % více, a EPS 1,87 USD při odhadu 1,77 USD.
Although Wall Street keeps rehearsing the dot-com script every time a semiconductor stock rips higher, Fox Business host Charles Payne argues on the Rich Habits Podcast that the comparison “wastes a lot of time” and “creates a lot of hesitation” for investors watching a generational buildout pass them by. The reflex is understandable. Cisco Systems (NASDAQ:CSCO | CSCO Price Prediction) was briefly the most valuable company on earth in March 2000, then collapsed roughly 89% by 2002, and the stock still has not recaptured that peak 26 years later. But the load-bearing question is not whether the chart looks similar. It is whether the earnings underneath match.
The Long Memory pattern Payne cites concerns the mechanism that caused the crash, not the crash itself. Cisco’s growth in the late 1990s came largely from acquisitions rather than organic expansion, and its customers were money-losing dot-coms burning venture capital that later imploded. That is what a bubble looks like from the inside: revenue growth that depends on other people’s speculation. What Payne asks investors to do is boring and useful. Check whether earnings per share are following the stock price higher. Check organic versus acquisition-driven growth. Check PE, forward PE, and PEG.
NVIDIA Broke the Mold Run that test on NVIDIA (NASDAQ:NVDA) and the parallel breaks. In its most recent quarter, filed May 20, NVIDIA posted revenue of $81.615 billion, up 85.23% year over year, non-GAAP EPS of $1.87 against a $1.77 estimate, and non-GAAP gross margin of 75.0%. Data Center revenue alone reached $75.246 billion, up 92% year over year, with networking up 199%. Net income climbed 210.63%. That is operating leverage, not acquisition accounting.
The valuation gut-check matters here. Cisco at its 2000 peak carried a price-to-earnings ratio in the 130x to 200x range with revenue growth in the 40s to 50s. NVIDIA today trades at a trailing P/E of 40 with 85% revenue growth and a return on equity of 101.49%. The tape looks like the dot-com era. The math does not. NVIDIA has beaten EPS estimates in every single quarter from FY2023 Q1 through FY2026 Q2, and the surprise magnitudes have compressed as analysts finally catch up to the run rate.
Payne’s second test is who is writing the checks. The customer base is where dot-com Cisco failed the audit. NVIDIA’s customers are the most profitable enterprises on the planet, and their AI revenue is contracted, not vaporware. Microsoft (NASDAQ:MSFT) told investors on its most recent call that its “AI business surpassed $37 billion ARR, up 123%”, with commercial remaining performance obligations, its committed backlog, at $627 billion. Microsoft added “another gigawatt of capacity this quarter” and is on track to double its footprint in just two years. Money that has already been signed for is not a bubble.
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A Historical Comparison Payne’s deeper historical mirror is the 1860s, well before 1999. Between 1860 and the early 1900s, America eclipsed the rest of the world, life expectancy grew and disposable income appeared for the first time, largely on the back of the railroads and the second industrial revolution. That buildout also produced spectacular busts and forgotten winners. Payne concedes the point directly: “Not all the AI winners today may be relevant 10 years from now.” The pattern is that the platform survives even when specific tickers do not. What is different this time, in his framing, is access. In the railroad era “maybe there were 1,000 investors, period,” where today “everyone’s got an opportunity to get involved and to ride this wave.”
The Cisco cautionary tale still deserves respect. Even now, with Cisco riding a real AI networking cycle of its own, revenue of $15.8 billion up 12% year over year and a raised FY26 hyperscaler AI order outlook of roughly $9 billion, the stock has returned only 171.25% cumulatively since March 1, 2000. That is the ceiling a broken multiple can impose on a good business for a quarter century. Jensen Huang’s read on the current cycle is a different order of magnitude. He told analysts NVIDIA sees “$1 trillion in Blackwell and Rubin revenue” through calendar 2027 and forecasts AI infrastructure spending on track to reach $3 trillion to $4 trillion annually by the end of this decade.
The pattern that repeats is the buildout, well beyond the crash. Railroads, electrification, the internet, and now AI factories all produced periods where the stock market ran ahead of proof, then waited for earnings to catch the tape. Payne’s argument, tested against the numbers, is that NVIDIA’s earnings are pulling the tape higher rather than chasing it. Long term, Wall Street tends to sort platform winners from tourists on the strength of free cash flow, and $48.554 billion of quarterly free cash flow is the sort of receipt that Cisco in 2000 could not produce. The window Payne describes is open. The homework he demands is what keeps investors on the right side of it.
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Jensen Huang věří, že AI revoluce teprve začíná, a očekává, že Nvidia do roku 2027 dosáhne tržeb 1 bilion USD z čipů. CFO Colette Kress navíc odhaduje roční investice do AI infrastruktury na 3 až 4 biliony USD do konce dekády.
Nvidia (NVDA -3.55%) recently gave up its seat as the world's most valuable company. That title now belongs to Apple, whose shares are up 25% in 2026 (as of July 28). This significantly exceeds the artificial intelligence (AI) stock's muted 6% gain this year.
But it wasn't long ago that Nvidia's market capitalization was firmly above $5 trillion, something that could happen again very soon. Investors worried about the shares' latest fall will take solace in CEO Jensen Huang's bullish call from several weeks ago on the prospects of the AI market.
Image source: Nvidia.
One of the most credible AI executives is telling investors to be optimistic When he was in Seoul, South Korea, in early June, Huang essentially told investors to act aggressively when there's market weakness. At the time, chip stocks were selling off, a rout that's continuing now. Anytime shares in these companies take a hit, it's time to be a buyer, Huang believes.
He thinks the AI revolution is just getting started. During Nvidia's GTC conference in March, Huang said that the business will collect $1 trillion in sales from its chips through 2027, double the previous $500 billion forecast through 2026.
And chief financial officer Colette Kress believes that spending on AI infrastructure will total $3 trillion to $4 trillion by the end of the decade. This isn't a cumulative figure; the colossal sum is an annual outlook. These numbers reveal management's firm belief that demand isn't going anywhere.
Nvidia sits at the center of the AI boom Of course, Nvidia's CEO has every reason to downplay any of the market's concerns regarding the mind-boggling AI build-out. His goal is to drive ongoing optimism among investors. After all, his business is at the heart of the infrastructure boom, providing powerful graphics processing units that data centers need to run AI models. However, given Nvidia's monster success, with revenue and net income up 85% and 211%, respectively, year over year during Q1 2027 (ended April 26), Huang's perspective is definitely credible.
Nvidia might have more skin in the AI game than any other company. For example, it invested $30 billion in OpenAI in March and has taken equity stakes in many other companies. And it's reportedly looking to guarantee $250 billion in financing for OpenAI so the leading AI lab can lease a new data center in Ohio. Nvidia also repurchased $19 billion of its own stock last quarter.
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Watch the hyperscalers Alphabet, a hyperscaler that's rapidly expanding its computing capacity, just raised its 2026 forecast for capital expenditures (capex) to $200 billion (at the midpoint). This shows that the spending isn't letting up. In fact, it's rising.
Based on recent trends, there's a high likelihood that the other hyperscalers will also bump up their capex plans when they report financial results later this week.
The biggest unknown, though, is whether the investment community believes in the durability of this AI revolution. That's the multitrillion-dollar question the market is facing. Jensen Huang will certainly do his best to drive investor bullishness.
Penguin Solutions uvedla, že „memory je nové compute“, a u agentické AI očekává další růst poptávky po pamětech. Tržby ve 3. fiskálním čtvrtletí vzrostly meziročně o 48 % na 478,71 milionu USD.
Penguin Solutions CEO Kash Shaikh appeared on CNBC on July 29 with his thesis for the current AI cycle: “Memory is the new compute, especially with agentic AI.” As autonomous AI agents evolve from short prompt-and-response interactions into workloads operating around the clock, he expects the primary bottleneck in an AI factory to increasingly shift toward memory bandwidth and capacity rather than GPU throughput alone.
Shaikh described his company plainly: “Penguin Solutions is an AI factory platform company. We sit at the intersection of two very high-demand markets, AI infrastructure and memory.” He added that “enterprises, governments around the world and the new cloud providers are racing to build the AI factories” and that backlogs now extend multiple quarters.
Revenue Soared 48% as AI and Memory Demand Exploded Penguin Solutions (NASDAQ:PENG) has become one of the most direct public-market vehicles for the memory-as-bottleneck thesis. Shares are up 123% since the start of 2026, with the company supporting a market cap of nearly $2.47 billion and analysts carrying a Buy consensus with a $74.29 price target, implying meaningful upside from the stock’s current price of $43.70.
The fundamentals back the CEO’s confidence. In fiscal Q3 2026, company-wide revenue grew 48% year over year, and the memory and AI infrastructure business grew over 104% year over year to represent over 75% of total net sales. Q3 saw revenue of $478.71 million, and non-GAAP diluted EPS of $0.84, beating consensus by 13.61% and 49.33%, respectively.
Management responded by raising fiscal 2026 net sales growth guidance to 22% ±2% and non-GAAP EPS guidance to $2.60 ±$0.05. Penguin was also recently named an NVIDIA AI Factory Specialized Partner and Dell’s Global Alliances Americas AI Partner of the Year.
Why Agentic AI Could Make Memory the Next Great Bottleneck CEO Shaikh’s argument turned to how agentic workloads behave. Where advisory AI answers a question and stops, agentic AI is “performing tasks, automating workflows, and it is working 24/7.” Continuous context windows, persistent KV caches, and long-running tool use all pile pressure onto memory subsystems. Penguin’s MemoryAI CXL-based KV cache server, already deployed at a Tier One financial institution, is designed for exactly that workload.
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On the earnings call, Shaikh reinforced the point, noting that “as inference and agentic AI workloads become more persistent and context-rich, memory is increasingly becoming one of the primary performance and scalability bottlenecks.”
Micron’s Historic Growth Validates the Memory Supercycle Micron Technology (NASDAQ:MU | MU Price Prediction) offers a readout of the same phenomenon. Fiscal Q3 2026 revenue reached $41.46 billion, up 345.7% year over year, with GAAP gross margin expanding to 84.6%. CEO Sanjay Mehrotra told investors the results “reflect the strategic value of memory in the AI era.” HBM4 is now in high-volume shipments, and Micron guided Q4 revenue to $50.0 billion ±$1.0 billion. Shares are up 187.67% year to date.
NVIDIA Remains the Engine Behind the AI Factory Buildout NVIDIA (NASDAQ:NVDA) remains the demand engine behind AI factory buildouts, with fiscal Q1 2027 revenue of $81.62 billion and Data Center revenue of $75.25 billion. Jensen Huang has called it “the largest infrastructure expansion in human history.” Penguin sits directly inside that ecosystem as an NVIDIA AI Factory Specialized Partner, and the two companies’ networking and memory roadmaps are increasingly coupled.
Penguin’s Biggest Risk Is Also Its Biggest Opportunity Penguin trades at a forward P/E near 12, but the stock’s beta of 2.83 and a recent 22.68% one-month drawdown make it clear that investors are weighing memory-pricing risk against secular demand. While 74% of revenue is AI-related, about 89% of operating profit comes from the memory segment, meaning that Penguin is tied to the same cycle Micron rides.
If Shaikh is right that agentic AI will make memory a primary infrastructure bottleneck, that concentration could become Penguin’s greatest advantage. The next signals to watch are how quickly its multi-quarter backlog converts into revenue and whether MemoryAI CXL deployments expand beyond the initial Tier One customer.
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UBS tvrdí, že výprodej polovodičů je přehnaný a obavy z „circular financing“ u AI projektů zkreslují realitu. Podle banky financování táhne dodavatelský řetězec čipů, ne hyperscaleři.
Semiconductors are caught in a selloff UBS thinks is overblown.
The bank argues that fears over "circular financing" in AI infrastructure deals misread who's actually cashing in on the buildout, and it's the chip supply chain, not the hyperscalers, footing the bill.
The commentary follows a wave of investor inquiries about data center deals from Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) and Advanced Micro Devices Inc (NASDAQ:AMD, XETRA:AMD). Recent media reports indicated Nvidia is backing up to $50 billion in lease agreements for a Hut 8 site in Texas and is working on deals worth $750 billion in total, including a $250 billion arrangement with OpenAI, according to Bloomberg. AMD, together with an undisclosed neocloud partner, signed a deal with Core Scientific for up to 2.5 gigawatts of capacity, starting with 500 megawatts in 2027.
UBS identified four drivers behind the recent correction: concerns about open source models weighing on frontier model providers' growth, questions about the memory cycle's sustainability, perceived "circular" financing arrangements, and crowded investor positioning in semis.
The bank pushed back on the first three. It sees the rise of open source models as a net positive for Nvidia, pointing to Artificial Analysis data showing new open models sit between prior and current-generation frontier offerings. It also maintained its view that NAND pricing will roll over in late calendar 2027 and DRAM in mid-2028, with nothing so far to change that call.
On financing, UBS disputed Street estimates that free cash flow for Amazon, Google, Meta and Microsoft will fall below $100 billion in 2027. The bank's own hyperscaler capex projection of roughly $1.4 trillion for that year implies the four companies' combined free cash flow would instead be slightly negative, around negative $60 billion including Oracle. That gap is largely due to rising memory prices, which UBS said are set to require about $550 billion in incremental capex between 2026 and 2027, nearly the entire projected year-over-year increase for that period.
Against that backdrop, UBS estimates Nvidia will generate approximately $900 billion in free cash flow through the end of 2028, with Micron Technology Inc (NASDAQ:MU) generating about $450 billion and AMD about $90 billion, all within its US coverage universe. In UBS's view, the supply chain is generating all of the cash, which the bank says makes sense.
That dynamic, UBS argued, explains why cash-generating suppliers are helping underwrite the buildout, and suggested Nvidia may be shifting toward a more vertically integrated model.
The bank also said hyperscalers' capex increases largely reflect higher memory prices rather than added compute, meaning supply and demand for compute itself has tightened further.
As memory prices normalize, UBS expects hyperscaler spending to ease and free cash flow to improve, a trend it views as ultimately positive for the AI trade despite any near-term drag on semis.
NVIDIA klesla ve středečním řádném obchodování o 2,3 % poté, co slabší výsledky SK Hynix prohloubily výprodej v čipech. Akcie tlumí i tlak na to, zda AI investice přinášejí dostatečnou finanční návratnost.
NVIDIA NVDA , a U.S. designer of processors used for artificial-intelligence computing, fell approximately 2.3% in Wednesday's regular-session trading as of 11:18 a.m. ET as investors assessed SK Hynix's disappointing earnings and continuing pressure across semiconductor stocks. SK Hynix HXSCL , a South Korean memory-chip producer supplying NVIDIA, closed 9.6% lower after its record profit missed expectations. The Philadelphia Semiconductor Index declined 1.6% during morning trading.
SK Hynix's operating profit increased more than sixfold, supported by demand for advanced memory used in AI systems. However, shipment delays involving some advanced products limited price increases for its DRAM chips. The company disclosed approximately 10 long-term supply agreements, but analysts said the arrangements could restrict gains if memory prices continue rising. Investors were also disappointed by the absence of detailed plans for increasing shareholder returns.
NVIDIA's decline illustrates how investor attention has shifted from AI spending commitments toward evidence that infrastructure investment is producing sufficient financial returns. Reuters reported that investors were also concerned about intensifying competition from Chinese chipmakers and lower-cost AI models. Microsoft and Meta Platforms are scheduled to report after Wednesday's close, followed by Amazon and Apple later in the week. Their cloud growth, AI revenue and infrastructure-spending disclosures could influence whether pressure on NVIDIA and the broader semiconductor sector continues.
Mark Cuban a Michael Burry varují, že AI boom je nebezpečně závislý na Nvidii. Burry navíc upozornil na rostoucí náklady na pojištění proti defaultu $NVDA.
Mark Cuban and Michal Burry warn the AI boom is dangerously reliant on Nvidia By You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Mark Cuban (left) and Michael Burry. Bloomberg/Getty Images; Astrid Stawiarz/Getty Images Mark Cuban and Michael Burry just sounded the alarm on Nvidia's sprawling web of AI deals.
Cuban struck a worried tone on X after another user wrote that Nvidia, by financing its customers' purchases of its graphics chips for their data center buildouts, is acting as a "backstop" and making itself vulnerable to an AI downturn.
"This is so analogous to the dot com burst," the tech billionaire and former "Shark Tank" investor wrote in a Tuesday post. "But instead of IPOs, Nvidia is the 'ipo,' funding everyone and anyone."
Cuban was referring to the popularity of going public during the internet bubble as a way for startups to raise cash and secure rich valuations — and saying that Nvidia has replaced the stock market in that role during this tech boom.
"One breakthrough in another chip provider, or a misstep, and it all could crumble," he wrote on X. "It's truly scary."
As far as Nvidia subsidizing everyone. You are right on. But that feeds the credit problem, far beyond oracle.
You never know where an exogenous change is going to come from. This is so analogous to the dot com burst. But instead of IPOs, Nvidia is the “ipo” , funding…
— Mark Cuban (@mcuban) July 28, 2026 Nvidia has struck deals worth hundreds of billions of dollars with numerous players in the AI ecosystem, including OpenAI, Microsoft, CoreWeave, and SK Hynix.
Cuban seems concerned that the chipmaker is so deeply intertwined with its customers that if it runs into problems, the damage could spread far and fast, creating painful and widespread fallout.
Nvidia CEO Jensen Huang himself, speaking during a company meeting in November, acknowledged Nvidia's linchpin role by pointing to online memes about the company propping up the AI boom, the stock market, and the global economy.
"We're basically holding the planet together — and it's not untrue," Huang said.
Shares of Nvidia were trading 2% lower on Wednesday, leaving them down 18% from their May peak. But they're still up around 13-fold since the start of 2023.
Nvidia didn't immediately respond to a request for comment from Business Insider.
"Biblical proportions"Burry, the investor of "The Big Short" fame, issued a similar warning to Cuban in a late Tuesday post on X.
"There is a reason $NVDA's 5 year credit default swaps are going parabolic," he wrote, attaching a chart showing the price of buying insurance against Nvidia defaulting on its debts has roughly doubled within the past two months.
"All this overreaching by #nvda to push the circular spending to biblical proportions," he added, suggesting that markets are pricing in a greater risk of Nvidia failing to meet its financial commitments because it's overextending itself with too many deals.
Michael Burry posted about Nvidia "circular spending" on X. @michaeljburry/X Burry's iconic "Big Short" centered on buying credit default swaps to bet against subprime mortgage bonds during the mid-2000s housing bubble. The instruments surged in value once mortgage defaults began spiking, resulting in a huge windfall for Burry and his clients.
Both Cuban and Burry have taken aim at aspects of the AI boom in recent weeks.
Cuban cautioned on a podcast that companies are overbuilding AI infrastructure that will become more efficient over time, resulting in excess capacity. He quipped that a lot of the buildings will be converted into pickleball courts.
Similarly, Burry has said that tech giants are overinvesting in microchips and data centers that will quickly become obsolete, dragging out depreciation to inflate their earnings, and signing "give-and-take" deals to keep fueling hype around AI.
Burry, who pivoted from running a hedge fund to writing about his personal portfolio last winter, wrote in January that he was short Nvidia because it was "entirely dependent on hyperscaler spending, and I do not see how that math works."
In a July 24 post, Burry wrote that he bolstered his Nvidia short and holds bearish puts on the stock "in good size." He believes that much of its demand doesn't stem from end customers, much of it is financed and kept off its balance sheet, and "future revenues are majority financed in a circular arrangement," he wrote.
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Theron Mohamed You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Theron Mohamed is a London-based correspondent on the Trending team at Business Insider. His coverage spans finance, investing, wealth, markets, and the economy.Theron joined BI in 2019 as a reporter at Markets Insider and rose to the rank of correspondent before moving to the Trending team in 2024. He previously covered tech, media, and telecom stocks for Investors Chronicle magazine and had a brief stint on the Financial Times' Data team. He interned at the Wall Street Journal in New York where he primarily wrote for Heard on the Street.Theron has freelanced for The Independent, The Telegraph, WIRED, and several smaller publications. He holds an undergraduate degree in geography from the London School of Economics, and a master's degree in journalism from Columbia University.Theron often covers Warren Buffett, Michael Burry, Jeremy Grantham and other top-flight investors. He also writes about the world's wealthiest people and shares financial advice from all manner of rich and successful people.Email Theron at [email protected] and follow him on X @theron_mohamed.Expertise
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AXS Investments LLC decreased its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 34.0% in the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 25,862 shares of the computer hardware maker’s stock after selling 13,308 shares during the period. NVIDIA comprises 1.8% of AXS Investments LLC’s portfolio, making the stock its 6th biggest holding. AXS Investments LLC’s holdings in NVIDIA were worth $4,510,000 as of its most recent SEC filing.
Several other large investors also recently modified their holdings of the stock. Norges Bank acquired a new stake in shares of NVIDIA in the 4th quarter valued at $62,244,133,000. J. Stern & Co. LLP lifted its holdings in NVIDIA by 13,709.1% during the 4th quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker’s stock valued at $23,454,297,000 after purchasing an additional 124,849,603 shares during the last quarter. Cardano Risk Management B.V. boosted its position in NVIDIA by 896.4% in the fourth quarter. Cardano Risk Management B.V. now owns 78,123,960 shares of the computer hardware maker’s stock valued at $14,570,119,000 after buying an additional 70,283,539 shares in the last quarter. Capital Research Global Investors boosted its position in NVIDIA by 16.1% in the third quarter. Capital Research Global Investors now owns 165,377,852 shares of the computer hardware maker’s stock valued at $30,855,564,000 after buying an additional 22,896,705 shares in the last quarter. Finally, Laurel Wealth Advisors LLC grew its stake in NVIDIA by 15,496.1% during the second quarter. Laurel Wealth Advisors LLC now owns 21,865,525 shares of the computer hardware maker’s stock worth $3,454,534,000 after buying an additional 21,725,326 shares during the last quarter. 65.27% of the stock is currently owned by institutional investors.
Wall Street Analyst Weigh In A number of research analysts have recently issued reports on NVDA shares. President Capital lifted their target price on shares of NVIDIA from $280.00 to $295.00 and gave the company a “buy” rating in a research note on Thursday, May 21st. Weiss Ratings reaffirmed a “buy (b)” rating on shares of NVIDIA in a report on Wednesday, July 8th. Wolfe Research reissued an “outperform” rating and issued a $275.00 price objective on shares of NVIDIA in a research note on Thursday, May 21st. Evercore restated an “outperform” rating and set a $413.00 target price (up from $352.00) on shares of NVIDIA in a report on Thursday, May 21st. Finally, Wall Street Zen lowered NVIDIA from a “strong-buy” rating to a “buy” rating in a research note on Saturday, July 4th. Three equities research analysts have rated the stock with a Strong Buy rating, forty-eight have assigned a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat.com, NVIDIA has an average rating of “Buy” and an average price target of $304.26.
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Insider Activity at NVIDIA In related news, Director Stephen C. Neal sold 15,500 shares of the firm’s stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $215.73, for a total transaction of $3,343,815.00. Following the sale, the director owned 116,135 shares of the company’s stock, valued at approximately $25,053,803.55. This trade represents a 11.77% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Mark A. Stevens sold 885,000 shares of NVIDIA stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $210.17, for a total value of $186,000,450.00. Following the transaction, the director owned 5,207,271 shares in the company, valued at approximately $1,094,412,146.07. This represents a 14.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 1,901,125 shares of company stock worth $410,583,015 in the last quarter. Corporate insiders own 3.94% of the company’s stock.
NVIDIA Stock Up 0.3% NASDAQ:NVDA opened at $197.01 on Wednesday. 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 12-month low of $164.07 and a 12-month high of $236.54. The stock’s fifty day simple moving average is $206.86 and its 200-day simple moving average is $195.98. The firm has a market capitalization of $4.77 trillion, a P/E ratio of 30.17, a P/E/G ratio of 0.38 and a beta of 2.21.
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 analysts’ consensus estimates of $1.76 by $0.11. The firm had revenue of $81.61 billion for the quarter, compared to analysts’ expectations of $78.42 billion. NVIDIA had a return on equity of 96.94% and a net margin of 62.97%.The company’s revenue was up 85.2% compared to the same quarter last year. During the same quarter last year, the business earned $0.81 earnings per share. Equities research analysts expect that NVIDIA Corporation will post 8.79 earnings per share for the current year.
NVIDIA Increases Dividend The company also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Thursday, June 4th were given a $0.25 dividend. The ex-dividend date was Thursday, June 4th. This represents a $1.00 dividend on an annualized basis and a dividend yield of 0.5%. This is an increase from NVIDIA’s previous quarterly dividend of $0.01. NVIDIA’s dividend payout ratio is currently 15.31%.
NVIDIA declared that its Board of Directors has authorized a share buyback plan on Wednesday, May 20th that authorizes the company to repurchase $80.00 billion in outstanding shares. This repurchase authorization authorizes the computer hardware maker to buy up to 1.5% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s board believes its stock is undervalued.
Trending Headlines about NVIDIA Here are the key news stories impacting NVIDIA this week:
Positive Sentiment: CEO Jensen Huang is emphasizing robotics and “physical AI” as the next major growth market, spanning autonomous machines, vehicles, factories and data centers. The company’s expanded Agent Toolkit, PhysicsNeMo and CUDA-X libraries are also being adopted by Cadence, Siemens, Synopsys, Samsung and Silvaco, supporting a broader software-and-platform ecosystem beyond GPU sales. NVIDIA robotics growth article Positive Sentiment: New strategic relationships with Safe Superintelligence, OpenAI, NAVER and other infrastructure partners could increase demand for NVIDIA’s Vera Rubin and Blackwell systems. Analysts remain broadly bullish, with reported price targets well above current trading levels. NVIDIA Safe Superintelligence investment article Neutral Sentiment: NVIDIA is reportedly discussing a potential backstop of up to $250 billion for OpenAI’s Ohio data-center project, alongside a much larger overall infrastructure plan. The arrangement could lock in substantial future chip demand, but it would also expand NVIDIA’s role from supplier to financier and expose it to OpenAI’s creditworthiness and project-execution risks. NVIDIA OpenAI financing article Negative Sentiment: Investors remain concerned that vendor-backed AI infrastructure spending represents circular financing rather than organic customer demand. Reports that NVIDIA could guarantee OpenAI-related obligations helped trigger a broad chip-stock selloff, while rising default-insurance costs have intensified balance-sheet concerns. NVIDIA default insurance costs article Negative Sentiment: Taiwanese authorities reportedly detained an NVIDIA employee in a probe involving alleged diversion of Super Micro AI servers to China. Although no wrongdoing by NVIDIA has been established, the investigation raises additional export-control, legal and reputational risks. Intensifying Chinese competition and weakness across Asian chip stocks are adding pressure to the sector. Taiwan NVIDIA employee investigation article 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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