Track market-moving stories before they get noisy

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?

Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Nvidia (NVDA - Free Report) .

Nvidia currently has an average brokerage recommendation (ABR) of 1.18, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 51 brokerage firms. An ABR of 1.18 approximates between Strong Buy and Buy.

Of the 51 recommendations that derive the current ABR, 46 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 90.2% and 5.9% of all recommendations.

Brokerage Recommendation Trends for NVDA

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

While the ABR calls for buying Nvidia, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

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

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

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

Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.

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

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Should You Invest in NVDA?In terms of earnings estimate revisions for Nvidia, the Zacks Consensus Estimate for the current year has increased 3.7% over the past month to $9.22.

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

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

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

When Nvidia Corp (NASDAQ:NVDA) CEO Jensen Huang addressed world leaders at the G20, he didn’t spend much time talking about GPUs or the company’s latest chips.

Instead, he offered a simple framework for understanding the AI economy: a “five-layer cake” that starts with energy, ends with applications, and stretches far beyond Nvidia’s core business. For investors, it’s a useful reminder that the AI trade isn’t one theme—it’s an entire ecosystem.

AI Starts With Energy, Not Models“The first thing is to recognize what is AI,” Huang said before breaking it down into five layers. “At the lowest layer is energy. You can’t produce something without energy. It transforms electricity into mathematics.”

That first layer is easy to overlook in a market captivated by chatbots and foundation models. Yet Huang argued that electricity sits at the base of the AI economy, followed by chips, “that’s the world that I’m in,” and then infrastructure—the land, power and data centers that house AI systems.

Only after those three layers come AI models, which Huang noted are “what most people think AI is,” and finally data and applications, where businesses generate real economic value.

The sequence matters. Huang’s argument is that AI isn’t simply software running in the cloud. It’s a vertically integrated technology stack where every layer depends on the one below it.

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Nvidia Is One Slice. The Opportunity Is Much Bigger.Huang’s framework also broadens the list of potential AI beneficiaries.

The first layer—energy—could benefit companies involved in electricity generation, grid modernization and power equipment, including Constellation Energy Corp (NASDAQ:CEG), GE Vernova Inc. (NYSE:GEV) and Eaton Corporation, PLC (NYSE:ETN) as AI data centers place growing demands on power infrastructure.

The second layer is chips, where Nvidia remains the dominant player alongside companies such as Advanced Micro Devices, Inc (NASDAQ:AMD) and manufacturing partner Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM).

The third layer is infrastructure, covering the physical backbone of AI. That includes power and cooling specialist Vertiv Holdings, LLC (NYSE:VRT), networking companies like Arista Networks, Inc. (NYSE:ANET) and Broadcom Inc. (NASDAQ:AVGO), as well as data center operators Digital Realty Trust, Inc. (NYSE:DLR) and Equinix, Inc. (NASDAQ:EQIX).

Above that sit AI models, where companies including Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) and Meta Platforms Inc. (NASDAQ:META) are investing heavily in frontier AI systems.

Finally comes applications—the software businesses that embed AI into everyday workflows. Companies such as Microsoft Corp. (NASDAQ:MSFT), Salesforce Inc. (NYSE:CRM), ServiceNow, Inc. (NYSE:NOW) and Palantir Technologies Inc.(NASDAQ:PLTR) are among those building products that monetize AI for enterprise customers.

The Investment TakeawayHuang’s “five-layer cake” isn’t an investment recommendation—it’s a framework for thinking about where AI spending could flow. His central point was that countries and companies don’t have to dominate every layer, but they do need to decide where they want to compete.

For investors, the same logic applies. Nvidia may remain the flagship AI stock, but if Huang’s vision of AI as critical infrastructure plays out, the winners won’t be confined to chipmakers.

The next phase of the AI trade could increasingly be driven by the companies that generate the power, build the data centers, connect the networks and deliver AI into real-world applications.

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Photo Courtesy: glen photo on Shutterstock.com

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Shares of Nvidia (NVDA - Free Report) have gained 2.4% over the past four weeks to close the last trading session at $224.41, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $324.56 indicates a potential upside of 44.6%.

The mean estimate comprises 49 short-term price targets with a standard deviation of $66.07. While the lowest estimate of $180.00 indicates a 19.8% decline from the current price level, the most optimistic analyst expects the stock to surge 129.5% to reach $515.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.

But, for NVDA, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You May Not Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Here's Why There Could be Plenty of Upside Left in NVDAAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 3.7%, as 13 estimates have moved higher compared to no negative revision.

Moreover, NVDA currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much NVDA could gain, the direction of price movement it implies does appear to be a good guide.

One stubborn number buried in Nvidia's latest earnings report signals something that almost never survives at hardware scale, and it is the reason this investor keeps adding shares despite a valuation that looks stretched on the surface.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

I keep hitting the buy button on NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) because one number refuses to break, and that number tells me everything I need to know about pricing power in this cycle.

That number is gross margin. At the scale NVIDIA now operates, holding a 75% non-GAAP gross margin should be arithmetically difficult for a hardware company. The Q2 FY27 report landed exactly there: revenue of $96.22B, gross profit of $72.14B, non-GAAP gross margin at 75.0%. Management said the level was “largely unchanged from last quarter due to a similar product mix.” When a company sells $89 billion of data center gear in ninety days and still keeps three quarters of every dollar as gross profit, that is monopoly economics at hardware scale.

Pricing Power That Refuses to Compress Q2 FY27 revenue grew 105.85% YoY. Data center revenue reached $89.02B, up 117% YoY. Every one of those dollars was harder to earn than the one before it, because supply chain constraints hit foundry, memory, power, and yield simultaneously. Margins still held at 75%. Management guided Q3 gross margin to 74%, plus or minus 50 basis points, and fiscal 2028 to 72% to 73% once executed price increases work through memory costs. Even that compressed figure keeps NVIDIA well above any data center silicon peer. Vera Rubin, now in full production, expands the revenue opportunity to $40 billion per gigawatt, up from Blackwell’s $25 billion and Hopper’s $18 billion. Customers pay more because the platform delivers more.

Returns That Compound Faster Than the Multiple Return on invested capital is 92.2%. Return on equity is 101.5%. Debt-to-equity sits at 0.073, with interest coverage of 503.4x. Free cash flow in fiscal 2026 was $96.58B, up 58.7%. In Q2 alone NVIDIA returned $26 billion to shareholders, $20 billion in buybacks and $6 billion in dividends, with roughly $99B still authorized. Trailing P/E of 45 looks full, yet consensus already models fiscal 2028 EPS of $13.1277 against $4.77 in FY26. When earnings compound this way and capital returns scale with cash flow, the multiple resolves itself.

NVIDIA’s Edge Over Broadcom, AMD, and Amazon’s Trainium Broadcom (NASDAQ:AVGO) sells custom silicon into specific hyperscaler sockets. Advanced Micro Devices (NASDAQ:AMD) builds a credible accelerator. Amazon (NASDAQ:AMZN) has disclosed Trainium as a multibillion-dollar business. NVIDIA’s data center segment printed $89.02B in a single quarter. A multibillion-dollar Trainium line is a rounding item inside one NVIDIA reporting period. Intel (NASDAQ:INTC) competes on chips too, and now collaborates with NVIDIA on NVLink custom products. NVIDIA sells the CUDA software estate, NVLink fabric, Spectrum-X networking, and the Vera CPU on top of the accelerator. Networking grew 18% sequentially, with SpectrumX Ethernet up 2.6X year over year. That is the moat you cannot backfill by taping out one accelerator.

Risks on My Radar China data center compute revenue is fully excluded from forward guidance. Supply obligations sit at $279B, guarantee obligations reach $108.5B, and days sales outstanding stretched from 45 to 60 days as investment-grade customers took extended payment terms on multi-quarter shipments. If the AI capex cycle rolls over, those commitments become the headline. What keeps my capital active is that cloud-industry backlog exceeds $2 trillion, and top-five hyperscaler capex is guided at nearly $800 billion in 2026 and $1.3 trillion in 2027. All of that spend has to be powered, cooled, and networked by somebody, and we rounded up seven suppliers behind the buildout in a free report on the AI boom beyond the chipmakers. Demand is running well above what NVIDIA can supply at least through the end of fiscal year 28.

Why the Buy Button Stays Active Jensen Huang said it plainly on the call: “Now, compute is revenue.” Until the gross margin line breaks, my capital keeps landing on the same ticker.

Contact [email protected] for any questions or corrections.

Emise dluhopisů souvisejících s AI a technologiemi jsou pro úvěrové investory stále obtížnější ignorovat, a to vzhledem k objemu nové nabídky v poslední době a epizodám zvýšené volatility. To, co bylo zpočátku z velké části jen o americkém segmentu investičního stupně, se nyní rozšiřuje napříč regiony i napříč spektrem úvěrů různé kvality. Společnost Fidelity International se zabývá rozhodováním, které vzniká u strategií zaměřené na výnos bez omezení nějakým benchmarkem, a vysvětluje, proč v současnosti udržuje v tomto sektoru pouze omezenou expozici.

Argumenty ve prospěch dluhopisů souvisejících s AI

„Již dlouho jsme zastánci konceptu „bezpečného výnosu“ (safe yield) u investic s pevným výnosem. Zatímco otazníky ohledně rozvah vyspělých ekonomik a fiskální disciplíny přetrvávají, není pochyb o tom, že některé z největších a nejkvalitnějších úvěrových titulů na světě trpí tím, že musí své dluhopisy oceňovat s přirážkou vůči „bezrizikové“ sazbě, přestože mají výrazně lepší rozvahu než státy, vůči jejichž výnosům se oceňují. V tomto kontextu je získání přibližně 50–100 bazických bodů nad americké státní dluhopisy nebo německé státní dluhopisy například u nezadlužených emitentů s ratingem AA nebo A teoreticky atraktivní příležitostí pro investory zaměřené na celkový výnos.

Velký význam také přikládáme ukazateli „dluh v poměru k EV“ jako užitečnému indikátoru celkového úvěrového rizika. Tento ukazatel může často poskytnout mnohem více informací než tradičnější ukazatele, jako je dluh k EBITDA nebo volný Cash Flow ke dluhu. Dluh v poměru k EV jednoznačně ukazuje, jakou hodnotu trh přisuzuje cenným papírům, které jsou (alespoň teoreticky!) podřízené pohledávkám věřitelů vůči aktivům a peněžním tokům společnosti. Bez ohledu na to, kolik prostředků hyperskalární společnosti v příštích několika letech vloží do AI, jejich hodnota vlastního kapitálu ve výši pravděpodobně 13 bilionů dolarů znamená, že věřitelé se nemusí obávat znehodnocení svých pohledávek.

Dnešní valuace jsou atraktivní. Není pochyb o tom, že technologický sektor se z různých hledisek jeví jako „levný“, ať už jde o relativní ocenění sektoru, spread na jednotku zadlužení nebo spready upravené podle ratingu,“ hodnotí situaci James Durance.

Co nás drží zpátky?

Rychlost a rozsah rozvoje AI jsou tak obrovské, že převyšují jakékoli historické srovnání, které by za něco stálo. Kapitálové výdaje na datová centra, které v roce 2027 dosáhnou více než 3 % amerického HDP a během pouhých dvou let přidají 1,7procentního bodu k HDP, představují nejrychlejší investiční boom v historii (jak uvádí Apollo). To znamená, že financování tohoto rozvoje je také v rozsahu, který dosud nebyl otestován. Jelikož jde o tak významný příspěvek k růstu HDP, případné zpomalení nebo obrat tohoto trendu by mohl být významným negativním faktorem pro ekonomiku jako celek.

Výnos z AI – jak pro společnosti realizující kapitálové výdaje, tak pro zákazníky investující do této technologie – zůstává obtížně vyčíslitelný. Cirkulární financování pomáhá rozvoji pokračovat, avšak ziskové marže v ekonomice mimo technologický sektor, stejně jako marže samotných tvůrců této infrastruktury, zatím nezažily takový skok, jaký bychom potřebovali vidět, aby ospravedlnil obrovské množství investovaného kapitálu.

Historie není nakloněna nadvýkonnosti sektorů s rychlým růstem zadlužení. Sektory s nejrychlejším růstem dluhu obvykle v klíčových časových obdobích zaostávaly za trhem, často s dramaticky negativními důsledky – zejména technologie/ telekomunikace, média a technologie v roce 2001, finanční sektor a nemovitosti v roce 2007 a břidlice a energetika v roce 2014.

Zdá se, že úvěrový trh zatím zvolil kategorizovat většinu rizika v tomto prostoru spíše jako riziko související s nabídkou než jako riziko vyplývající z úvěrových fundamentů. Vyšší než očekávaná nabídka byla nepochybně hlavním faktorem nedávného zhoršení výkonnosti dluhopisů. Oznámení Googlu, že letos již nebude emitovat další dluh v dolarech, a jakékoli další známky toho, že by tempo emisí mohlo zpomalovat, by proto měly být významným pozitivním faktorem pro trh, který se letos potýká s nadměrným objemem technologických emisí.

Co to znamená pro nastavení pozic?

Jako investoři, kteří nejsou vázáni benchmarkem, můžeme na situaci nahlížet trochu jinak než manažeři, kteří se vůči benchmarku poměřují. Benchmarkoví investoři se musí zaměřovat na velikost jednotlivých sektorů ve svých indexech (viz obrázek 1 níže) a na související tracking error, aby měli co nejlepší šanci generovat alfa. Neomezený investor se naopak může věnovat tomu, zda si sektor jako celek a každý jednotlivý titul skutečně zaslouží jeho pozornost.

Zadruhé, na jiných částech globálního úvěrového trhu můžeme najít srovnatelné nebo dokonce vyšší výnosy než v technologickém sektoru, aniž by s sebou nesly stejné rizikové faktory. To může znamenat podstoupení rizik v jiných oblastech, jako je nižší úvěrová kvalita (BB), riziko podřízenosti (evropské finanční společnosti a podnikové hybridní dluhopisy), strukturální riziko (CLO) nebo cyklické riziko (například nemovitosti nebo automobilový sektor).

Zatřetí, tradičně jsme se zaměřovali na větší emitenty s dlouhou historií na kapitálových trzích a na známé společnosti, protože se domníváme, že to obecně vede k nižšímu riziku finančních potíží a selhání v průběhu času. Přestože je rozvoj AI skutečný a jeho potenciální ekonomické dopady jsou skutečně zásadní, domníváme se, že tato revoluce bude mít své vítěze i poražené. Za jinak stejných podmínek by to mohlo znamenat vyšší míru defaultů – zejména u některých novějších, menších a spekulativnějších struktur, které přicházejí na trh,“ vysvětluje James Durance.

Technologie a hyperskalární společnosti by mohly dosáhnout až 11 % amerického indexu podnikových dluhopisů investičního stupně

Zdroj: Fidelity International, Deutsche Bank, Bloomberg, ICE Indices. Mezi hyperscalery jsou zahrnuty společnosti MSFT, AMZN, META, GOOGL, ORCL, NVDA, SPCX.

ATLANTA--(BUSINESS WIRE)---- $QMLS #QumulusAI--QumulusAI (Nasdaq: QMLS), a neocloud infrastructure provider purpose-built for the AI computing era, today announced that it has completed deployment of 616 NVIDIA RTX PRO 6000 Blackwell GPUs for Runpod under two reserved-capacity agreements combining one- and two-year terms. All 77 GPU nodes under the agreements are now active. Full deployment was reached in August 2026, ahead of the agreements' original Sept. 1, 2026 target. The GPUs are being served from QumulusAI's.

Nvidia (NVDA.O) will buy popular developer platform Hugging Face for $12.93 billion, betting that support for open AI models will drive future demand even as its biggest customers develop ​their own chips to reduce reliance on the semiconductor giant.

Shares of the company were ‌slightly higher after the deal on Thursday, which ranks among its biggest.

The deal will cement Nvidia as a central player in the market for open models that users can freely download, run and customize, unlike the closed systems built by OpenAI ​and Anthropic.

Nvidia has already played an active role in backing the open AI industry with ​its widely used Nemotron model. Acquiring Hugging Face will give it direct access to ⁠a platform developers use to collaborate, test and share tools, potentially providing valuable insight and data ​that could help it narrow the technology gap with top American and Chinese labs.

Demand for open-weight models has ​surged from businesses balking at the steep bill of deploying the technology, with Chinese companies such as DeepSeek and Z.ai emerging as crucial players with models that can match the best from the U.S. in tasks, including generating computer ​code at a lower cost.

That surge has fueled fears that some American firms could become reliant on ​Beijing's models even as both countries race to dominate a technology they see as crucial to their future.

"Hugging Face will ‌remain ⁠an open platform for the entire AI ecosystem," Nvidia CEO Jensen Huang said, adding that his company's chips would not be required to build on or deploy through Hugging Face.

Under the deal, Nvidia will pay about $11.9 billion to Hugging Face investors, while offering an equity-based retention program of up to $1 billion for ​employees who join Nvidia.

The two ​companies already work together ⁠to help developers use Nvidia's computing services on the platform.

For Nvidia, building up open source may help it cushion a demand slowdown from customers such as ​Meta (META.O), OpenAI and Microsoft (MSFT.O), which are developing their own AI chips to ​cut reliance on ⁠its costly and supply-constrained processors.

Hugging Face has also been in the news recently after a hack by rogue AI agents that escaped OpenAI's testing environment. Beyond hosting AI models, it offers datasets, software libraries and cloud ⁠services ​used to build and deploy AI applications.

The New York-based startup, which ​is backed by Intel (INTC.O), Advanced Micro Devices (AMD.O) and Amazon (AMZN.O), was founded in 2016 by French entrepreneurs Clément Delangue, Julien Chaumond and ​Thomas Wolf.

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Jensen Huang said Nvidia would scale Hugging Face's platform. Philip FONG / AFP via Getty Images Nvidia has confirmed that it's buying Hugging Face for almost $13 billion, giving the chipmaker a foothold in the open-model ecosystem.

Nvidia CEO Jensen Huang wrote in a Thursday blog post that his company had agreed to acquire Hugging Face for $12,930,300,000, confirming Business Insider's previous report that the two were in talks for a deal.

"Together, we will scale Hugging Face's platform, strengthen its infrastructure and expand access to AI for developers and institutions worldwide," Huang wrote.

Hugging Face, a platform for sharing and building with open-source AI models, will benefit from more compute and support from Nvidia, Hugging Face CEO Clem Delangue said in an X post.

The acquisition is one of Nvidia's largest ever and could help propel the chip giant further into open-source AI, a type of software in which the underlying code or model weights are publicly available for others to inspect, modify, and build on.

As companies such as Anthropic and OpenAI continue to dominate the market for closed models, investing in an open-source ecosystem could prevent Nvidia from being squeezed out.

"As the opportunity for open models accelerates, Hugging Face can serve the global AI community at unprecedented scale," Huang wrote in the Thursday blog post.

The companies said Hugging Face would remain an open platform and compute-agnostic.

In July, OpenAI said its AI agents broke out of containment and hacked Hugging Face, raising concerns about the risks posed by rogue AI. Speaking on CNBC on Thursday, Delangue said that the moment was a "turning point" as the company turned to open models to defend itself.

In July, Nvidia joined a host of tech companies in signing a letter urging US policymakers to support open-source AI.

Hugging Face had been fielding wider M&A interest for a deal that could value it at $13 billion or more, Business Insider reported in August. When asked on CNBC who else was interested in acquiring Hugging Face, Huang said: "It doesn't matter who the other bidders were; it only matters who wins."

The deal includes a $11.9 billion purchase price payable to Hugging Face stockholders and an equity retention plan of up to about $1 billion for Hugging Face employees joining Nvidia, according to a filing with the Securities and Exchange Commission.

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

Hugh is a senior correspondent at Business Insider where he writes about Google, tech, and wealth. His work has been cited by The New York Times, Bloomberg, Reuters, The Wall Street Journal, and other outlets.Get an alert whenever I publish a story.Got a tip? You can reach him using the secure messaging app Signal (hughlangley.01) or email ([email protected]). We can keep sources anonymous.

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The number of stocks in the S&P 500 (SPX) falling below their 50-day SMA is growing, a warning sign Tom White sees for the market's momentum. It also complicates the Fed's interest rate outlook further as crude oil hits $93.

After weeks of swirling rumors, Nvidia confirmed today that it has acquired Hugging Face for $12.93 billion. Hugging Face’s platform hosts three million models, one million applications used by over 18 million developers, and half a million datasets.

In a blog post, Nvidia’s CEO Jensen Huang said that Hugging Face will continue to support open-source and open-weight models and will work on expanding developer access.

“Hugging Face will remain an open platform for the entire AI ecosystem. Developers will choose the models they want, the frameworks they want, the clouds and inference service providers they want and the computing platforms they want. Nvidia compute will not be required to build on or deploy through Hugging Face,” said Huang.

Huang touted Nvidia’s contributions and said that the chip company has released more than 500 models and 250 open datasets on Hugging Face. He argued that the company builds open models to get developers across the world to use them.

For a company like Nvidia, which is a dominant hardware platform for AI development and inference, an open ecosystem that it controls is beneficial as it can create a platform suited for its chips. Plus, as TechCrunch wrote earlier, Nvidia will be able to sell its unused capacity to enterprise customers packaged with Hugging Face’s offering.

Hugging Face was founded in 2016 and has raised over $395 million in funding to date, according to Crunchbase. The company’s last round was in 2023, when it raised $235 million led by Salesforce Ventures, with investments from Google, Amazon, IBM, and Nvidia.

In a post on X, Hugging Face CEO Clem Delangue thanked the community for showing the company could be an alternative to closed-source APIs.

“But for it to happen at [a] larger scale, it needs more compute, more support, more collaboration, and more visibility. That’s why we went to talk to Jensen, who offered to do exactly that with us,” said Delangue.

Hugging Face has risen in prominence, with more models being released every day. Last year, the company rejected a $500 million deal from Nvidia, according to the Financial Times. Last month, The Information reported that Hugging Face is clocking $150 million in annualized revenue.

In an interview with TechCrunch in July, Delangue said that its growth rate is helping the platform to get “close to profitability.”

Nvidia’s Huang has been a strong proponent of open models. He wrote a letter, co-signed by several other organizations, to advocate for open-weight models to strengthen the US’s position against rivals like China in the AI sector.

The company is heavily investing in model development. Last month, The Wall Street Journal reported that it struck a $6 billion deal with coding startup Poolside to develop open models. During its recent earnings call, the company said it has infused over $50 billion into AI frontier labs.

Huang pitched open models while answering one of the analysts and said that almost all open models run on Nvidia hardware. He also signaled the importance of these models in cybersecurity.

“One of the areas where frontier models are vital is cybersecurity. You see the number of cybersecurity companies that are enabled by frontier models so that they could have massively distributed, continuously running autonomous cybersecurity systems to defend. Those companies are emerging. There are some amazing companies. They couldn’t do it without open models. And so open models is both incredibly successful and have finally reached the frontier, but they’re also vital to the American economy. It’s vital to the world economy,” he said.

In July, Delangue said that Nvidia’s open model helped Hugging Face defend against cyberattacks after proprietary models failed to protect the platform. Days before that, OpenAI admitted that its unreleased model breached Hugging Face.

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Artificial intelligence (AI) spending shows no signs of slowing as tech companies compete to offer the best AI models and sell advanced computing services to their customers. The latest estimates put AI data center infrastructure spending at around $750 billion this year and more than $1 trillion next year.

Two of the undisputed winners in this market are chip companies Nvidia (NVDA +3.21%) and Advanced Micro Devices (AMD -0.56%). Over the past three years, their share prices have soared 341% and 334%, respectively.

But which company is the better AI infrastructure stock to own over the long term? Both stocks are worth owning, but Nvidia is likely the best. Here's why.

Image source: The Motley Fool.

AMD is on the rise, but its shares are expensive AMD designs both graphics processing units (GPUs) and central processing units (CPUs). GPUs have been the backbone of the AI data center infrastructure build-out, benefiting AMD and its rival Nvidia. AMD's data center revenue more than doubled in the most recent quarter to $6.7 billion.

And the company is beginning to tap into new demand for CPUs, too. As more tech companies focus on building out AI agents, demand for CPUs -- which are well-suited to processing agentic tasks -- will increase in the coming years.

Raymond James analyst Simon Leopold thinks the CPU market could reach $201 billion by 2030, and AMD's management recently said its total addressable market for CPUs will be $220 billion that year.

Whichever estimate is more accurate, AMD is already benefiting from the increased demand. AMD CEO Lisa Su said on the second-quarter earnings call that strong CPU growth will drive server revenue up 70% this year and help data center revenue "more than double" in 2027.

AMD is clearly well-positioned to benefit from growth in CPU and GPU demand in the coming years as tech companies continue to invest heavily in AI infrastructure.

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But one big negative for AMD is that its shares are expensive. AMD stock has a trailing price-to-earnings (P/E) ratio of 121 right now, which is much higher than the tech sector average of 33.

That doesn't mean AMD isn't worth owning, but it does mean that investors are paying a high premium if they buy the stock right now. And, as we're about to see, Nvidia is a cheaper way to play the AI infrastructure boom.

If there were any doubts among investors about whether Nvidia was still the king of the AI infrastructure boom, they were put to rest after the company released its second-quarter results.

Nvidia's total sales more than doubled in the quarter to $96.2 billion, easily outpacing Wall Street's consensus estimate of $92.1 billion. The growth was fueled by the Nvidia data center segment, with revenue rising 117% as tech giants continue clamoring for its GPUs.

The company also reported adjusted earnings of $2.22 per share -- a very impressive 120% increase from the year-ago quarter.

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And one of the most important indicators that Nvidia's growth isn't running out of steam yet came from Nvidia's management issuing revenue guidance for the third quarter of about $108 billion. That would represent an 89% increase from the year-ago quarter.

Nvidia still holds a very large lead in the AI data GPU market, with an estimated 86% market share. And as companies ramp up spending in the coming years on more AI data center capacity, it's likely the company will continue to benefit from this expansion.

And not only is Nvidia growing quickly and tapping into the expanding AI market, but its shares are still inexpensive. Nvidia's stock has a P/E ratio of about 29, making it far cheaper than AMD's stock and lower than the tech sector average.

While AMD is successfully tapping into an expanding GPU and CPU market, Nvidia's growth is even more impressive, and its shares are cheaper, giving the company the edge over its semiconductor peer.

Activest Wealth Management reduced its position in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 30.3% in the 2nd quarter, according to its most recent filing with the SEC. The firm owned 83,470 shares of the computer hardware maker’s stock after selling 36,321 shares during the period. NVIDIA accounts for approximately 3.2% of Activest Wealth Management’s investment portfolio, making the stock its 9th largest holding. Activest Wealth Management’s holdings in NVIDIA were worth $16,701,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Defender Capital LLC. lifted its position in NVIDIA by 0.7% during the 2nd quarter. Defender Capital LLC. now owns 7,534 shares of the computer hardware maker’s stock valued at $1,507,000 after purchasing an additional 50 shares during the period. Spectrum Financial Alliance Ltd LLC boosted its stake in shares of NVIDIA by 3.8% in the 1st quarter. Spectrum Financial Alliance Ltd LLC now owns 1,395 shares of the computer hardware maker’s stock valued at $243,000 after purchasing an additional 51 shares during the last quarter. LMG Wealth Partners LLC grew its position in shares of NVIDIA by 0.7% during the 4th quarter. LMG Wealth Partners LLC now owns 7,649 shares of the computer hardware maker’s stock worth $1,427,000 after buying an additional 53 shares during the period. Vision Financial Markets LLC raised its stake in shares of NVIDIA by 1.2% during the third quarter. Vision Financial Markets LLC now owns 4,640 shares of the computer hardware maker’s stock worth $866,000 after buying an additional 53 shares during the last quarter. Finally, JGP Global Gestao de Recursos Ltda. lifted its holdings in NVIDIA by 2.3% in 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 buying an additional 55 shares during the period. Institutional investors own 65.27% of the company’s stock.

Analysts Set New Price Targets A number of brokerages have issued reports on NVDA. TD Cowen reaffirmed a “buy” rating on shares of NVIDIA in a research note on Tuesday, August 18th. Wall Street Zen raised NVIDIA from a “buy” rating to a “strong-buy” rating in a research note on Saturday, August 29th. Craig Hallum raised their price target on NVIDIA from $245.00 to $275.00 and gave the stock a “buy” rating in a research report on Thursday, May 21st. DA Davidson reaffirmed a “buy” rating and set a $300.00 price objective on shares of NVIDIA in a research note on Thursday, August 27th. Finally, Robert W. Baird set a $500.00 price objective on NVIDIA and gave the company an “outperform” rating in a report on Thursday, May 21st. Two research analysts have rated the stock with a Strong Buy rating, fifty have issued a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $324.23.

Read Our Latest Analysis on NVDA Insider Activity at NVIDIA In other NVIDIA news, Director Mark A. Stevens sold 885,000 shares of the firm’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 transaction of $186,000,450.00. Following the sale, the director directly owned 5,207,271 shares in the company, valued at approximately $1,094,412,146.07. This trade represents a 14.53% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP Timothy S. Teter sold 30,000 shares of NVIDIA stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $217.88, for a total transaction of $6,536,400.00. Following the completion of the transaction, the executive vice president directly owned 2,687,660 shares in the company, valued at approximately $585,587,360.80. The trade was a 1.10% 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 1,563,501 shares of company stock valued at $335,380,530 over the last quarter. 3.94% of the stock is owned by insiders.

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

Positive Sentiment: Strong server demand supported by Dell: Dell Technologies’ stronger-than-expected results and raised guidance reinforced NVIDIA’s view that enterprise and hyperscaler spending on AI servers remains strong. NVIDIA’s stock is climbing as investors get more confidence in an expanding base of AI customers Positive Sentiment: Potential Hugging Face acquisition: Reports that NVIDIA is in advanced discussions to acquire AI platform Hugging Face for roughly $13 billion to $14 billion lifted expectations that the company could strengthen CUDA adoption, developer retention and recurring software revenue. The deal remains unconfirmed and could face integration and neutrality concerns. Why Nvidia’s $14 Billion Hugging Face Deal Would Make Total Sense Positive Sentiment: Expansion beyond GPUs: NVIDIA’s investments and partnerships with MediaTek, Equinix and optical-networking startup iPronics could extend its reach into custom AI chips, inference, automotive computing and data-center connectivity. An reported $35 billion Anthropic cloud commitment also highlighted continued demand for NVIDIA-powered compute. NVIDIA’s MediaTek Bet Shows How It Plans to Defend Its AI Moat Positive Sentiment: Analyst confidence remains high: J.P. Morgan reaffirmed a Buy rating and a $320 price target, citing strong AI-driven growth and expected demand for NVIDIA’s next-generation platforms. NVIDIA Buy Rating Reaffirmed NVIDIA Price Performance NVDA opened at $224.41 on Thursday. The stock has a market cap of $5.41 trillion, a P/E ratio of 28.37, a P/E/G ratio of 1.71 and a beta of 2.22. NVIDIA Corporation has a 12 month low of $164.07 and a 12 month high of $236.54. The company has a quick ratio of 3.85, a current ratio of 4.59 and a debt-to-equity ratio of 0.14. The company has a fifty day simple moving average of $209.20 and a 200 day simple moving average of $201.53.

NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, topping the consensus estimate of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%.The firm had revenue of $96.22 billion for the quarter, compared to analyst estimates of $92.27 billion. During the same period in the previous year, the company posted $1.05 earnings per share. The company’s revenue for the quarter was up 105.9% on a year-over-year basis. On average, research analysts expect that NVIDIA Corporation will post 9.1 EPS for the current year.

NVIDIA Dividend Announcement The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th will be issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 0.4%. The ex-dividend date is Thursday, September 10th. NVIDIA’s payout ratio is 12.64%.

NVIDIA announced that its Board of Directors has approved a share 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 purchase up to 1.5% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.

About NVIDIA (Free Report)

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

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

See Also Five stocks we like better than NVIDIA Striking Oil: How the U.S. Play for Venezuela Fuels Supermajors J.M. Smucker Stock’s Rally Has More Than Tariffs Behind It Wendy’s Rally Fades After Trian Steps Back: Was It Ever Real? GitLab’s Earnings Beat Just Gave Software Bulls a New SaaSpocalypse Test 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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BCS Wealth Management boosted its position in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 11.5% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 22,186 shares of the computer hardware maker’s stock after buying an additional 2,286 shares during the period. NVIDIA makes up 0.8% of BCS Wealth Management’s holdings, making the stock its 16th biggest holding. BCS Wealth Management’s holdings in NVIDIA were worth $4,439,000 at the end of the most recent quarter.

A number of other institutional investors have also bought and sold shares of the company. Lifetime Wealth Management P.C. bought a new stake in NVIDIA in the fourth quarter worth approximately $26,000. Longview Financial Advisors Inc. acquired a new position in NVIDIA in the first quarter valued at approximately $27,000. Longfellow Investment Management Co. LLC boosted 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 buying an additional 67 shares in the last quarter. Phillip James Consulting Co. bought a new position in shares of NVIDIA during the 1st quarter worth approximately $40,000. Finally, Spurstone Advisory Services LLC acquired a new stake in shares of NVIDIA during the 2nd quarter worth approximately $40,000. Institutional investors own 65.27% of the company’s stock.

Insider Activity at NVIDIA In other 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 transaction, the director owned 5,207,271 shares in the company, valued at $1,094,412,146.07. The trade was a 14.53% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Timothy S. Teter sold 30,000 shares of the company’s stock in a transaction that occurred on Monday, August 31st. The shares were sold at an average price of $217.88, for a total value of $6,536,400.00. Following the completion of the transaction, the executive vice president directly owned 2,687,660 shares of the company’s stock, valued at approximately $585,587,360.80. This represents a 1.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 1,563,501 shares of company stock worth $335,380,530. Insiders own 3.94% of the company’s stock.

Wall Street Analysts Forecast Growth A number of research firms recently issued reports on NVDA. Evercore set a $465.00 target price on shares of NVIDIA and gave the company an “outperform” rating in a research report on Thursday, August 27th. Wells Fargo & Company reiterated an “overweight” rating and set a $315.00 price objective on shares of NVIDIA in a report on Tuesday, August 11th. Mizuho set a $315.00 target price on shares of NVIDIA and gave the stock an “outperform” rating in a research report on Thursday, August 27th. Itau BBA Securities decreased their target price on shares of NVIDIA from $256.00 to $218.00 in a research report on Wednesday, June 24th. Finally, Raymond James Financial set a $515.00 target price on shares of NVIDIA and gave the stock a “strong-buy” rating in a report on Thursday, August 27th. Two equities research analysts have rated the stock with a Strong Buy rating, fifty have issued a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $324.23. Check Out Our Latest Stock Analysis on NVIDIA

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

Positive Sentiment: Strong server demand supported by Dell: Dell Technologies’ stronger-than-expected results and raised guidance reinforced NVIDIA’s view that enterprise and hyperscaler spending on AI servers remains strong. NVIDIA’s stock is climbing as investors get more confidence in an expanding base of AI customers Positive Sentiment: Potential Hugging Face acquisition: Reports that NVIDIA is in advanced discussions to acquire AI platform Hugging Face for roughly $13 billion to $14 billion lifted expectations that the company could strengthen CUDA adoption, developer retention and recurring software revenue. The deal remains unconfirmed and could face integration and neutrality concerns. Why Nvidia’s $14 Billion Hugging Face Deal Would Make Total Sense Positive Sentiment: Expansion beyond GPUs: NVIDIA’s investments and partnerships with MediaTek, Equinix and optical-networking startup iPronics could extend its reach into custom AI chips, inference, automotive computing and data-center connectivity. An reported $35 billion Anthropic cloud commitment also highlighted continued demand for NVIDIA-powered compute. NVIDIA’s MediaTek Bet Shows How It Plans to Defend Its AI Moat Positive Sentiment: Analyst confidence remains high: J.P. Morgan reaffirmed a Buy rating and a $320 price target, citing strong AI-driven growth and expected demand for NVIDIA’s next-generation platforms. NVIDIA Buy Rating Reaffirmed NVIDIA Price Performance NVDA opened at $224.41 on Thursday. The company has a debt-to-equity ratio of 0.14, a current ratio of 4.59 and a quick ratio of 3.85. The company has a market capitalization of $5.41 trillion, a price-to-earnings ratio of 28.37, a P/E/G ratio of 1.71 and a beta of 2.22. The firm’s fifty day moving average price is $209.20 and its two-hundred day moving average price is $201.53. 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 announced its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 EPS for the quarter, beating the consensus estimate of $2.09 by $0.13. NVIDIA had a net margin of 63.66% and a return on equity of 96.04%. The company had revenue of $96.22 billion during the quarter, compared to the consensus estimate of $92.27 billion. During the same quarter in the prior year, the company posted $1.05 earnings per share. The firm’s revenue for the quarter was up 105.9% on a year-over-year basis. As a group, analysts anticipate that NVIDIA Corporation will post 9.1 earnings per share for the current fiscal year.

NVIDIA declared that its Board of Directors has initiated a share repurchase plan on Wednesday, May 20th that allows the company to repurchase $80.00 billion in shares. This repurchase authorization allows the computer hardware maker to buy up to 1.5% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company’s board of directors believes its shares are undervalued.

NVIDIA Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Thursday, September 10th will be paid a $0.25 dividend. The ex-dividend date is Thursday, September 10th. This represents a $1.00 annualized dividend and a yield of 0.4%. NVIDIA’s dividend payout ratio (DPR) is 12.64%.

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 Stories Five stocks we like better than NVIDIA Striking Oil: How the U.S. Play for Venezuela Fuels Supermajors J.M. Smucker Stock’s Rally Has More Than Tariffs Behind It Wendy’s Rally Fades After Trian Steps Back: Was It Ever Real? GitLab’s Earnings Beat Just Gave Software Bulls a New SaaSpocalypse Test

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After a two-month pause, Nvidia (NASDAQ: NVDA) insiders not only started selling again on August 31, but also executed the largest trade of the decade on the day.

Specifically, a September 2 Securities and Exchange Commission (SEC) filing revealed that Director Mark Stevens, a billionaire investor and venture capitalist, dumped more than 1.8 million NVDA shares at an average price of $222.26.

Receive Signals on SEC-verified Insider Stock Trades

Stocks

This signal is triggered upon the reporting of the trade to the Securities and Exchange Commission (SEC).

The staggering insider trade raised a total of $410.8 million, dwarfing every Nvidia stock sale made by company executives and board members during the ongoing decade. 

Furthermore, though Stevens is, in general, one of the blue-chip chipmaker’s biggest sellers, his most recent dump was almost as large as the combined value of all of his market maneuvers related to the equity done in 2026.

Indeed, the Director raised $38.5 million on March 20, $221.1 million on June 2, and $186 million on June 18, for a total of approximately $445 million. Thus, the August 31 sale accounted for 47.97% of all the money Stevens raised in 2026 by offloading Nvidia stock.

Receive Signals on SEC-verified Insider Stock Trades

Stocks

This signal is triggered upon the reporting of the trade to the Securities and Exchange Commission (SEC).

Nvidia EVP joins vast August 31 insider selling Meanwhile, Mark Stevens was not the only company insider to trade the semiconductor giant’s equity on the day. 

Executive vice president, general counsel, and secretary, Tim Teter, sold 30,000 NVDA shares on August 31. The September 2 disclosure revealed that the average price stood at $217.88 and that the EVP made a total of $6.5 million on the Nvidia stock insider trade.

Notably, the Monday sale was Teter’s first in 2026.

Receive Signals on SEC-verified Insider Stock Trades

Stocks

This signal is triggered upon the reporting of the trade to the Securities and Exchange Commission (SEC).

Should investors sell Nvidia stock after flare-up in insider activity? Elsewhere, though corporate insider sales tend to be a poor gauge of a company’s health due to strict reporting rules, the latest NVDA activity could have a psychological impact on investors.

Indeed, the trading came amidst comparatively sluggish – though positive – year-to-date (YTD) stock market performance and was unprecedented in scale. It was also done approximately a month after Amazon (NASDAQ: AMZN) saw a sale of similar size – executed by Jeff Bezos himself – that marked a temporary top and saw AMZN enter a technical correction.

Nvidia and Amazon stock price six-month charts with trading since Bezos’ insider trade market for AMZN. Source: Google Lastly, the vast insider trade could also have an impact even if it was not driven by non-public information, due to the coalescing risk factors unveiled within the latest quarterly earnings, as well as in the surrounding weeks.

Nvidia’s debt has become more expensive to insure, the company saw increased customer concentration and continues to invest in its existing and potential customers – a fact that may or may not be concerning for the overall health of the sector – and is allowing some buyers to pay up to 12 months later.

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As Nvidia Corp. (NASDAQ: NVDA) stock rose nearly 6% over the past 30 days, driven by solid demand in the Artificial Intelligence (AI) space, Aksel Kibar, a popular chartist and a former fund manager, expects a rally towards its former all-time high (ATH). 

Kibar has set a price target for Nvidia stock at $235, according to an X post on September 3. With NVDA stock having closed Wednesday trading at $224.41, this analyst suggests a potential 4.72% upside.

NVDA’s 1D chart. Source: TradingView Kibar argued that NVDA’s daily chart could be forming an inverse head-and-shoulders (H&S), with a neckline around $235. As such, he highlighted that Nvidia stock may rally to a new ATH after it breaks out of its resistance level at $235. 

“After meeting its H&S top failure price target, it possibly formed a fresh H&S continuation. It can resume higher with a breakout above 235 levels,” Kibar noted.

This trading expert also based his bullish thesis for Nvidia stock on the fact that its 200-day Moving Average (MA) has acted as strong support. 

Is Nvidia a good stock to buy? Nvidia stock has received an average ‘Strong Buy’ from 30 Wall Street analysts surveyed by TipRanks over the past three months. As of press time, these surveyed analysts had set an average 12-month price target of $329.32, thus signaling a possible 46.76% uptrend.

NVDA stock 12-month forecast. Source: TipRanks On September 2, Vivek Arya, an analyst at Bank of America Corp. (NYSE: BAC), reiterated a ‘Buy’ rating for NVDA. Arya maintained the bank’s 12-month price target of $350, representing a 55.96% upside.

On the same day, Harlan Sur, an expert at JPMorgan Chase & Co. (NYSE: JPM), reaffirmed a ‘Buy’ rating, with a 12-month price target of $320. 

With Nvidia expected to benefit from the solid demand for its chips by enterprises seeking to capitalize on AI technology, these analysts’ targets could be achieved.

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When enterprise buyers build out their next AI accelerator evaluation list this cycle, they're more likely to put a non-Nvidia chip on it than Nvidia's own next-generation GPU. According to VentureBeat's July VB Pulse survey of 170 AI infrastructure respondents, 39.4% said they're likely to evaluate non-Nvidia accelerators — AWS Trainium, Google TPU, AMD Instinct, Intel Gaudi or in-house ASICs — over the next 12 months, compared with 25.3% for Nvidia Blackwell (GB300) or other next-generation Nvidia GPUs, a 14-point gap.

SummaryThe new disclosure is increasingly important because it proves that Nvidia Corporation can be more resilient than feared should more Big Tech CapEx be redirected to custom silicon.At the heart of every Nvidia’s earnings report is the question — how will the world’s most valuable company continue to grow?Another one of the more overlooked comments from Nvidia’s earnings call centered around how much revenue the company now expects to generate from every gigawatt of deployed AI infrastructure.Most importantly, NVDA raised guidance for FY28, stating revenue would grow 70%.Looking for more investing ideas like this one? Get them exclusively at Tech Insider Network. Learn More » panida wijitpanya/iStock via Getty Images

Nvidia Corporation (NVDA) reported another impeccable quarter, yet the more important story came from the earnings call. As the Tech Insider Network has covered in the past, Nvidia’s share of the AI

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Some days, the market has a plot. Today, it's a collective shrug.

The Dow Jones Industrial Average (^DJI +0.56%) was up 0.4% as of 12:55 p.m. ET, the S&P 500 (^GSPC +0.46%) added 0.5%, and the Nasdaq Composite (^IXIC +0.45%) rose 0.4%. All three indexes opened lower, and the Dow enjoyed a short-lived spike around 11 a.m. ET. But it's a pretty tight bundle of gains just below 0.5% as of this writing.

^DJI data by YCharts

Nvidia's 3.8% gain did nearly all of the index lifting There is one clear hero behind the morning's index gains. Nvidia (NVDA +3.21%) jumped 3.8% to $225.67, which by itself is worth a 0.38% boost of the Nasdaq Composite's total score. No other stock moved the index by 0.1% or more. Meta Platforms (META +2.47%) came close after a 2.9% jump, but it's hard to compete with a stock creating $206 billion of market value with a single-digit percentage bump.

Here's a fun fact. If you exclude Meta and Nvidia from the calculation, the Nasdaq Composite indexes would be down right now. The S&P 500 would still be up after this adjustment, but only by 0.12%.

I wish I had big news to share about Meta's and Nvidia's price gains, but their press rooms were pretty quiet, too. Overall, Wednesday's market moves were dictated by macroeconomic wrinkles.

Image source: Getty Images.

New York Fed President John Williams said that the surge in Treasury yields reflects a strong economy, driven by AI and data center investment. He's doing the homework to prepare for September's rate-setting meeting in two weeks, where he holds a vote. Williams hasn't nailed down a firm recommendation yet. Recent inflation data have been encouraging, but a month or two isn't enough. At this point, analysts see a 66% chance of a small rate hike in the Sept. 15-16 meeting.

I do see a couple of interesting oddities. Gold prices climbed 1% while the iShares Bitcoin Trust (IBIT +0.07%) slipped 0.1%, which breaks a safe-harbor linkage that's been reliable for weeks. The divergence is still small, but it's a clear break from recent correlation trends.

At the same time, oil prices inched 0.2% higher amid continued strikes in and around the Strait of Hormuz. President Trump wants to rename the strategic shipping channel after himself. Like the rest of the market, oil traders shrugged and moved on. Oil prices often move 2% or more on any given weekday recently, so today's blip looks quite flat in comparison.

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Section header Friday brings the August jobs report, the last big number before the Fed meets on Sept. 15. The major indexes have been fairly quiet over the last couple of days; I don't mean to jinx it, but there's little reason to expect much drama before Friday's jobs report.

Enjoy the silence.

Anders Bylund has positions in Nvidia and iShares Bitcoin Trust. The Motley Fool has positions in and recommends Meta Platforms, Nvidia, and iShares Bitcoin Trust. The Motley Fool has a disclosure policy.

Over the past year, Nvidia (NVDA +3.21%) shareholders have had to take the good with the bad. For the last five consecutive quarters, the company has reported blowout quarterly results. That's good. But Nvidia's stock price has dropped immediately following each announcement. That's bad.

Luckily, it hasn't kept shares from growing by 25% over the past year, handily beating the S&P 500 (up 18%). But it has been frustrating for investors to see the company's valuation metrics keep dropping as its revenue and profits keep climbing.

But I think that Nvidia's share price will continue to rise over the next four years.

Right now, a single share of Nvidia is trading at $220.70. That means you could buy five shares today for $1,104.

Here's what I think those five shares would be worth in 2030.

Image source: Nvidia Corporation.

How I made my prediction Nvidia's trailing price-to-sales (P/S) ratio of 17.8 is well below the five-year average of 25.4, and the company's forward P/S ratio is at an even lower 13 (lower is better).

If Nvidia's shares had a P/S ratio of 25.4 today, they'd be trading at $315.46/share. Just FYI, the company's P/E ratio experienced a huge spike in 2023 that skews the average, which is why I'm using the P/S ratio for these calculations.

I believe that once it becomes clear that the AI spending boom isn't fizzling out anytime soon, Nvidia's valuation will move closer to its historical average.

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Meanwhile, Nvidia CEO Jensen Huang believes that the company's revenue will jump 70% in fiscal 2028, with further gains in future years. If he's right, a 70% increase in sales at a P/S ratio of 25.4 would put the share price at $536.28 per share by 2028. That's about double its current price!

There could be further gains between 2028 and 2030. But to account for potential setbacks and continuing fears of an AI bubble, I'm going to use that price and predict that five Nvidia shares will be worth at least $2,681.41 by 2030.

John Bromels has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

Nvidia NVDA , the AI-chip powerhouse with data centers at 92.5% of revenue, took its regulatory fight to the G20 on Wednesday. According to Reuters, CEO Jensen Huang urged governments to tackle proven AI damage instead of writing sweeping rules for dangers that remain hypothetical.

The timing is no accident. Nvidia's second-quarter results delivered $96.2 billion in revenue, with data centers supplying $89 billion. Sales doubled year over year. Adjusted gross margin hit 75%. Management then guided for roughly $108 billion in third-quarter revenue. Nvidia's AI engine is running flat out.

The chart tells the same story: Nvidia's 95/100 GF Score reflects exceptional growth, profitability and financial strength, while GF Value remains its weakest category. Huang won no policy concessions, but he spotlighted the risk sitting beside Nvidia's extraordinary numbers. Faster AI adoption can send earnings sharply higher. Tougher deployment, security or model rules could squeeze nearly the entire revenue machine.

Jim Cramer and a top Wall Street analyst both see Nvidia as mispriced, but their prescriptions could not be further apart, and only one of them has the earnings to back it up.

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Two CNBC voices looked at the same stock inside the same 12-hour window and reached opposite conclusions about what it needs. Jim Cramer wants NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) to launch a buyback roughly equal to a tenth of its market value to fix what he sees as broken price discovery. New Street Research’s Pierre Ferragu says the earnings will do the work themselves.

Ferragu’s $400 Call, No Corporate Action Required Speaking Tuesday morning, Ferragu said a $400 stock price is “very, very, very likely” within 18 months, driven by earnings power alone. He cited Jensen Huang’s guidance for at least 70% business growth next year and framed NVIDIA as operating in “halcyon days” with no visible cycle top. His valuation argument leans on multiple compression: NVIDIA, he argues, is trading at “single digit earnings multiples” against a forward earnings base most investors have not fully repriced.

From the September 1 close of $217.44, a move to $400 implies roughly 84% upside and a market cap approaching $10 trillion. The stock traded at $226.67 on Wednesday morning.

Cramer’s Half-Trillion-Dollar Prescription Cramer’s remedy is louder. He wants NVIDIA to buy back roughly a tenth of itself, which against a $5.46 trillion market cap pencils out to more than $500 billion. NVIDIA’s board authorized $80 billion in additional repurchase capacity on May 18, 2026, leaving approximately $99 billion remaining at quarter end. That is a fraction of what Cramer is asking for.

Cramer recently disclosed his highest cash position in 25 years, then prescribed the largest corporate repurchase in history to lift a stock he says is mispriced. NVIDIA has been actively returning capital. Management said it returned “$26 billion to shareholders” in the latest quarter, comprising “$20 billion through share repurchases” and “$6 billion through our quarterly dividend of $0.25 per share.”

Why the Fundamentals Favor Ferragu Q2 FY27 revenue reached $96.22 billion, up 105.8% year over year, with Data Center revenue of $89.02 billion. Non-GAAP EPS came in at $2.22, the fifth consecutive beat. Huang told analysts that “AI is now doing productive and useful work” and “AI is generating profitable tokens.” Consensus already reflects the acceleration: analysts model FY2028 EPS of 13.1277 on revenue of $573.6 billion. At those earnings, a $400 share price requires a forward multiple in the low 30s, roughly where the stock trades now.

The full-chain put/call ratio of 0.48 shows options traders are positioned in Ferragu’s direction. Cramer’s buyback demand may make headlines. Ferragu’s math is the one that would compound.

Contact [email protected] for any questions or corrections.

Nvidia (NVDA +3.53%) sits at the center of two very different bets on artificial intelligence (AI) infrastructure. One side of the equation is loud and already consumes Wall Street's attention: a deepening commercial and financial partnership with OpenAI. The other side is quieter and much easier to miss: a reported agreement to acquire Hugging Face, a website where open-source AI models are published and shared.

The Nvidia-OpenAI relationship builds and fills AI factories. With Hugging Face, Nvidia can own something far more lucrative -- the marketplace where AI factories get their orders. Let's break down both deals and explore what's at stake for Nvidia investors.

Image source: Nvidia.

Nvidia's relationship with OpenAI bridges compute and credit In February, OpenAI conducted a funding round that raised $110 billion at a $730 billion pre-money valuation. During that round, SoftBank and Nvidia each invested $30 billion, while Amazon committed $50 billion. More recently, SoftBank's SB Energy announced that it plans to build a data center at PORTS-Pike Technology Campus in Pike County, Ohio, and lease the facility to OpenAI.

The initial build-out plan covers 4.25 gigawatts of capacity, with an option for an additional 3.75 gigawatts. Nvidia will be the exclusive compute supplier as capacity comes online in 2028. According to an 8-K filing in late August, Nvidia entered into a series of residual value guarantees for up to $105 billion to help finance this infrastructure.

On the surface, this deal might look like a home run for Nvidia. But think about this for a minute: OpenAI needs graphics processing units (GPUs) from Nvidia to train its models. At the same time, OpenAI is hemorrhaging cash. So now, Nvidia is stepping in as a financier to bankroll OpenAI's infrastructure roadmap so that OpenAI can, in turn, buy more chips from none other than Nvidia. Unsurprisingly, Wall Street is skeptical of the mechanics, with some calling this financing arrangement too circular.

Nvidia CEO Jensen Huang and CFO Colette Kress both addressed this concern during the recent fiscal 2027 second-quarter earnings call. Huang described the arrangement with OpenAI as a way to lock in demand for Nvidia compute so OpenAI can build productive AI factories that can be "upgraded repeatedly." Kress went even further, saying that the downside risk from the OpenAI financing is limited because demand from frontier labs is so strong that they create entirely new businesses and ecosystems for Nvidia. She stated that "equity returns on our invested capital will be excellent."

Nevertheless, Wall Street still sees a supplier helping one of its core customers finance the very buildings that will be packed with that same supplier's hardware -- a loop that undoubtedly makes credit desks skittish.

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A transformative acquisition smart investors won't overlook While the arguments around Nvidia's tie-up with OpenAI echo, recent reports suggest that Nvidia is acquiring Hugging Face for $12.9 billion. Despite its funny name, Hugging Face is not some sort of mysterious AI start-up. It's really just a public library and developer workshop unified under one roof.

Developers who train AI models don't keep them hidden on private laptops. Instead, they can upload them to Hugging Face in much the same way a programmer can upload code to GitHub. This makes it easier for other developers to find, download, improve, and publish their own versions of the same model -- making Hugging Face a natural resource for sharing AI development work instead of starting from scratch.

Why is the Hugging Face deal more important than the OpenAI partnership? With OpenAI, Nvidia gets a single enormous customer and years of exclusive capacity at one data center location. It also increases the chipmaker's customer concentration risk. OpenAI and many of Nvidia's largest customers are already exploring custom silicon designs. A guarantee on one campus in Ohio does not mitigate that risk entirely. It only ensures that those particular buildings will be full of Nvidia's hardware.

Hugging Face is a completely different kind of asset that strengthens Nvidia's entire ecosystem. CUDA is Nvidia's software layer, and includes an extensive library of tools that let programs use the full parallel-processing power of the company's GPUs. Nvidia's tight integration between its chip architectures and CUDA creates a legitimate lock-in with developers. This is more valuable than any single contract.

If Nvidia owns the domain where open-source models are most commonly posted, discovered, and turned into productive applications, it gains visibility into which models are actually winning. From there, Nvidia can fine-tune its hardware and software for the workloads that are shipping. While closed-system labs can try to switch to competing platforms, the open-source world is far more fragmented and already largely lives on Nvidia's architecture. Owning the sharing layer is how Nvidia can keep its competitive moat.

The OpenAI partnership comes with an enormous order for chips that have not been installed yet because the facility they're headed for hasn't been built. In contrast, acquiring Hugging Face provides Nvidia a faster path to own the marketplace that will determine which chips get ordered as new frontier labs join the current generation's leading platforms. In my view, this is why the Hugging Face deal provides a longer-runway opportunity for Nvidia.

Nvidia Corporation is continuing to grow at an unrelenting pace and it passed 3 of my 4 key metrics that I was looking for. delivered a double-beat quarter with 105.9% Y/Y revenue growth and record EPS, surpassing guidance for the 13th consecutive time. NVDA issued its first-ever FY28 revenue growth guidance of ~70%, described as supply-constrained and materially above consensus, signaling a major re-rating event. Gross margin guidance steps down structurally due to HBM4 pass-through, but forward multiples remain undemanding given >60% net margins and >110% ROE.

Nvidia could be closing in on its biggest AI acquisition yet, according to sources. The chipmaker is in advanced talks to buy Hugging Face in a deal that could be worth about $14 billion.