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Volvo is leveling up its automated driving system through an expansion of its nearly decade-long partnership with Nvidia. The companies announced on Thursday that Volvo will use three pieces of Nvidia hardware and software in its future vehicles to provide an automated driving system that can navigate urban streets and highways.

Under the expanded partnership, Volvo will combine its vehicle safety systems and engineering with Nvidia’s Hyperion sensor and compute architecture, Alpamayo driving software stack, and Halos safety evaluation layer.

The Alpamayo stack is redundant and diverse, according to Ali Kani, who heads up Nvidia’s automotive division. It combines Alpamayo, a family of AI models, datasets, and simulation and development tools used to build autonomous-driving software, with classical software that uses machine learning and camera and radar perception, he said.

“The point is we run these two stacks at the same time, and we have multimodal sensors in our philosophy because because it’s a safer product that way,” Kani said, adding that the open-source Alpamayo software has now been downloaded by more than 650,000 developers.

Volvo didn’t reveal the value of the partnership or which vehicle model would be the first to use this new Nvidia tech stack. But Alwin Bakkenes, Volvo’s head of software development, hinted at the scale of the deal and how it represents the automaker’s evolution toward developing a full-tech stack designed for its electric vehicles as well as its plug-in hybrids and gas-powered vehicles.

“Automakers used to be very much like car-line based development and working with various suppliers, etc. and we have completely changed and migrated into being a full tech stack company,” Bakkenes said, adding that Volvo will start this partnership with a brand new vehicle that “will come in the not-too-near future.”

He said the first vehicle with this new Nvidia tech stack will debut within the decade, and “then of course the technology can go beyond that.”

While Volvo’s relationship with Nvidia isn’t new, the expanded partnership represents the automaker’s effort to bring the latest automated driving software to all of its vehicles — not just its EVs.

All of Volvo’s battery-electric vehicles use Nvidia’s Orin computer chip, which processes information from cameras, radar, and other sensors to help a vehicle understand its surroundings and make driving decisions.

“What we’re going to do in the future is actually standardize more on Hyperion — also from a sensor set perspective — to really open up the stack for for the wider partnership with Nvidia,” Bakkenes said.

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Kirsten Korosec is a reporter and editor who has covered the future of transportation from EVs and autonomous vehicles to urban air mobility and in-car tech for more than a decade. She is currently the transportation editor at TechCrunch and co-host of TechCrunch’s Equity podcast. She is also co-founder and co-host of the podcast, “The Autonocast.” She previously wrote for Fortune, The Verge, Bloomberg, MIT Technology Review and CBS Interactive.

You can contact or verify outreach from Kirsten by emailing [email protected] or via encrypted message at kkorosec.07 on Signal.

Nvidia (NVDA -2.22%) is the leader in AI infrastructure, and it remains well positioned to be one of the biggest beneficiaries of the ongoing data center build-out over the next few years. As long as the tech sector's spending on new compute capacity continues to increase, Nvidia should turn in strong growth, and the stock should perform well. At today's price, a $5,000 investment would buy you about 22 shares.

Currently, all signs point to continued strong AI infrastructure capital expenditures over the next several years. JPMorgan Chase has projected that AI infrastructure capex will reach a whopping $1.4 trillion a year in 2030, while hyperscalers like Amazon, Alphabet, and SpaceX have all discussed the quick paybacks they are getting on their chip investments. Notably, graphics processing units (GPUs) have useful lifespans of about six years, so Nvidia should also benefit from a pretty predictable replacement cycle.

Let's explore where a $5,000 investment in the semiconductor stock could be in about four years.

NVDA Nvidia$216.40-$4.91 (-2.22%)

NASDAQ · As of 10:56 AM ET 10/15/26

A lot of potential upside ahead Analysts currently project that Nvidia's revenue will grow from $411.7 billion in its fiscal 2027 (which ends in January 2027) to nearly $1.2 trillion in its fiscal 2031 (which ends in January 2031). Its adjusted earnings per share (EPS), meanwhile, are forecast to rise from $9.31 this fiscal year to $28.79. If you expect that it will at that point be trading at a price-to-earnings (P/E) ratio in the range of 15 to 20 -- not an unreasonable level -- that would give it a stock price of between $432 and $575, representing roughly 90% to 150% upside. That would result in a 22-share position being worth between $9,500 and $12,650 by the end of 2029.

Image source: The Motley Fool.

However, Nvidia has consistently outpaced analysts' estimates by large margins over the past several years, and I think it has the potential to keep doing so.

To estimate how Nvidia could grow over the next four years, I have modeled its revenue growth to gradually slow from its current pace while its expenses rise 11% sequentially. I also project that its gross margins will gradually step down to approximately 70%, and I'm applying a 15% tax rate to its operating income. I also anticipate the company reducing its diluted outstanding share count by 2% a year through stock buybacks, which is a sensible capital return strategy given its strong free cash flow.

All this would lead to Nvidia generating over $1.9 trillion in revenue in its fiscal 2031 and adjusted earnings of around $979 billion, or almost $41.50 per share.

Below is a simple model of what its revenue and earnings growth could look like. All figures below are my own projections.

Metric Fiscal 2027

Fiscal 2028

Fiscal 2029

Fiscal 2030

Fiscal 2031

Revenue

$412 billion

$700 billion

$1.05 trillion

$1.47 trillion

$1.91 trillion

Revenue growth

90%

70%

50%

40%

30%

Gross profit

$309 billion

$518 billion

$767 billion

$1.06 trillion

$1.34 trillion

Adjusted operating expense

$35 billion

$53 billion

$81 billion

$123 billion

$186 billion

Operating income

$274 billion

$465 billion

$686 billion

$936 billion

$1.15 trillion

Net income

$233 billion

$395 billion

$583 billion

$796 billion

$979 billion

EPS

$9.66

$16.74

$24.69

$33.70

$41.47

Data source: Author's projections.

If we apply a P/E multiple in the 15 to 20 range to my projection for Nvidia's fiscal 2031 earnings, the stock would at that point trade between $620 and $830, representing approximately 175% to 270% potential upside. That would bring the value of 22 shares to between $13,640 and $18,260.

Nvidia has a lot of potential upside from both earnings-per-share growth and possible multiple expansion given its still-cheap valuation, which currently sits at a forward P/E of below 14.5, based on fiscal 2028 earnings expectations. While hyperscalers are likely to continue diversifying their AI chip supply chains and using more custom silicon, I think the biggest potential headwind to the stock hitting these levels would be an overall slowdown in AI infrastructure spending. That could be caused by things like supply chain bottlenecks, issues funding the build-out, or customers not seeing good returns on their investments, which so far hasn't been the case.

That said, given its potential upside, Nvidia is still a buy.

Financial Avengers Inc. lessened its stake in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 3.1% during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 159,859 shares of the computer hardware maker’s stock after selling 5,114 shares during the quarter. NVIDIA comprises 13.3% of Financial Avengers Inc.’s investment portfolio, making the stock its biggest holding. Financial Avengers Inc.’s holdings in NVIDIA were worth $31,986,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Bank of America Corp DE increased its holdings in shares of NVIDIA by 2.2% during the second quarter. Bank of America Corp DE now owns 195,366,864 shares of the computer hardware maker’s stock valued at $39,090,956,000 after acquiring an additional 4,165,875 shares in the last quarter. Invesco Ltd. lifted its holdings in shares of NVIDIA by 0.3% in the 4th quarter. Invesco Ltd. now owns 143,239,504 shares of the computer hardware maker’s stock worth $26,714,167,000 after purchasing an additional 446,178 shares in the last quarter. J. Stern & Co. LLP lifted its holdings in shares of NVIDIA by 13,709.1% in the 4th quarter. J. Stern & Co. LLP now owns 125,760,307 shares of the computer hardware maker’s stock worth $23,454,297,000 after purchasing an additional 124,849,603 shares in the last quarter. Amundi lifted its holdings in shares of NVIDIA by 10.4% in the 1st quarter. Amundi now owns 133,768,018 shares of the computer hardware maker’s stock worth $23,329,141,000 after purchasing an additional 12,575,177 shares in the last quarter. Finally, Deutsche Bank AG grew its position in NVIDIA by 2.3% in the 2nd quarter. Deutsche Bank AG now owns 91,954,159 shares of the computer hardware maker’s stock valued at $18,399,108,000 after purchasing an additional 2,045,101 shares during the period. 65.27% of the stock is owned by institutional investors.

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

Positive Sentiment: NVIDIA announced a five-year, $250 million compute commitment to support U.K. AI safety and security research. The initiative strengthens NVIDIA’s relationships with governments, universities and AI developers while promoting its hardware and software ecosystem. NVIDIA pledges $250 million to boost UK AI safety research Positive Sentiment: New ecosystem announcements highlighted continued demand for NVIDIA technology. LSEG is using NVIDIA GPUs to accelerate historical market-data processing, while NVIDIA introduced tools including cuPotential for molecular simulation and expanded collaborations in AI-defined chip manufacturing. LSEG teams up with NVIDIA for faster market data processing Positive Sentiment: State Street launched a sector ETF designed to give NVIDIA a 20.93% allocation, above the 15.41% weighting in its comparable fund, potentially creating incremental demand for NVDA shares. New State Street Sector ETFs Give Biggest Stocks Full Weight Neutral Sentiment: CEO Jensen Huang said NVIDIA would stop supplying chips to customers developing unsafe AI systems. The stance may improve regulatory and reputational positioning, although broader AI-safety concerns could increase scrutiny of the company and industry. Nvidia, Anthropic Weigh In On AI Safeguards Negative Sentiment: Investors are assessing competitive threats from Microsoft’s Maia 300 architecture and Intel’s lower-cost, air-cooled Crescent Island inference GPU. Custom accelerators and cheaper inference solutions could pressure NVIDIA’s pricing, growth assumptions and market share over time. Microsoft Just Unveiled a Brand-New AI Chip Negative Sentiment: IDC reportedly estimates NVIDIA’s China AI-chip market share has fallen to 34% as Huawei gains ground, underscoring export restrictions and rising local competition. Separately, investor Michael Burry is betting against chip stocks, reinforcing valuation and AI-spending concerns. NVIDIA’s China AI chip market share falls to 34% NVIDIA Stock Performance Shares of NVDA opened at $221.30 on Thursday. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14. The company has a market capitalization of $5.33 trillion, a price-to-earnings ratio of 27.98, a PEG ratio of 1.77 and a beta of 2.22. The stock has a 50 day moving average of $223.43 and a 200 day moving average of $210.73. NVIDIA Corporation has a 12 month low of $164.27 and a 12 month high of $243.37. NVIDIA (NASDAQ:NVDA – Get Free Report) last posted its quarterly earnings data 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 business had revenue of $96.22 billion for the quarter, compared to analysts’ expectations of $92.27 billion. During the same quarter in the previous year, the firm earned $1.05 earnings per share. The business’s revenue was up 105.9% on a year-over-year basis. As a group, sell-side analysts forecast that NVIDIA Corporation will post 9.25 earnings per share for the current year.

NVIDIA announced that its Board of Directors has initiated a stock buyback program on Monday, September 28th that authorizes the company to repurchase $150.00 billion in outstanding shares. This buyback authorization authorizes the computer hardware maker to reacquire up to 2.8% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s board of directors believes its stock is undervalued.

NVIDIA Announces Dividend The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were paid 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, September 10th. NVIDIA’s payout ratio is presently 12.64%.

Insider Transactions at NVIDIA In related news, EVP Timothy Teter sold 30,460 shares of the business’s stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $222.80, for a total value of $6,786,488.00. Following the transaction, the executive vice president directly owned 2,687,660 shares of the company’s stock, valued at approximately $598,810,648. The trade was a 1.12% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Colette Kress sold 34,918 shares of the stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the transaction, the chief financial officer owned 765,103 shares of the company’s stock, valued at approximately $167,595,812.15. The trade was a 4.36% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,766,118 shares of company stock worth $399,450,353 in the last ninety days. Company insiders own 3.94% of the company’s stock.

Wall Street Analyst Weigh In A number of brokerages have commented on NVDA. President Capital boosted their price target on shares of NVIDIA from $295.00 to $330.00 in a research note on Thursday, August 27th. KeyCorp restated an “overweight” rating and set a $330.00 price objective on shares of NVIDIA in a report on Monday, August 24th. UBS Group reaffirmed a “buy” rating on shares of NVIDIA in a research note on Friday, October 9th. Piper Sandler started coverage on shares of NVIDIA in a research report on Wednesday, September 9th. They issued an “overweight” rating and a $300.00 price target on the stock. Finally, JPMorgan Chase & Co. increased their price objective on NVIDIA from $280.00 to $320.00 and gave the stock an “overweight” rating in a research note on Thursday, August 27th. Five analysts have rated the stock with a Strong Buy rating, forty-nine have assigned a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Buy” and a consensus price target of $321.89.

Read Our Latest Report on NVDA

NVIDIA Company Profile (Free Report)

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company’s products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.

See Also Five stocks we like better than NVIDIA Tesla Wants to Make Its Own Chips—What Could Go Wrong? IREN Limited’s AI Pivot Gains Traction—But Can Its Data Centers Deliver? PBF Energy’s Stunning Rally Faces a Critical Test Citi Stock Falls Despite Earnings Beat: What Investors Need to Know

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Kingsview Wealth Management LLC lifted its stake in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 2.9% in the second quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 1,117,091 shares of the computer hardware maker’s stock after buying an additional 31,528 shares during the quarter. NVIDIA makes up approximately 2.7% of Kingsview Wealth Management LLC’s portfolio, making the stock its 7th biggest position. Kingsview Wealth Management LLC’s holdings in NVIDIA were worth $223,519,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also made changes to their positions in the stock. LightSquare Wealth Management LLC lifted its position in shares of NVIDIA by 0.3% during the 2nd quarter. LightSquare Wealth Management LLC now owns 18,695 shares of the computer hardware maker’s stock worth $3,741,000 after buying an additional 49 shares during the last quarter. Defender Capital LLC. grew its position in shares of NVIDIA by 0.7% in the 2nd quarter. Defender Capital LLC. now owns 7,534 shares of the computer hardware maker’s stock valued at $1,507,000 after buying an additional 50 shares during the last quarter. Kooman & Associates grew its position in shares of NVIDIA by 0.6% in the 2nd quarter. Kooman & Associates now owns 8,464 shares of the computer hardware maker’s stock valued at $1,694,000 after buying an additional 50 shares during the last quarter. Roof Eidam Maycock Peralta LLC grew its position in shares of NVIDIA by 0.3% in the 2nd quarter. Roof Eidam Maycock Peralta LLC now owns 18,827 shares of the computer hardware maker’s stock valued at $3,767,000 after buying an additional 50 shares during the last quarter. Finally, Persium Advisors LLC raised its stake in NVIDIA by 3.5% during the 2nd quarter. Persium Advisors LLC now owns 1,466 shares of the computer hardware maker’s stock worth $293,000 after acquiring an additional 50 shares in the last quarter. 65.27% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes Several research analysts have commented on the company. BNP Paribas Exane reaffirmed an “outperform” rating and set a $345.00 price target on shares of NVIDIA in a research report on Monday, October 5th. Rosenblatt Securities reissued a “buy” rating and issued a $390.00 price objective on shares of NVIDIA in a report on Tuesday, September 29th. Mizuho set a $315.00 price objective on NVIDIA and gave the company an “outperform” rating in a report on Thursday, August 27th. Zacks Research upgraded shares of NVIDIA from a “hold” rating to a “strong-buy” rating in a research report on Monday, September 21st. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating on shares of NVIDIA in a report on Monday, August 31st. Five analysts have rated the stock with a Strong Buy rating, forty-nine have assigned a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, NVIDIA presently has an average rating of “Buy” and a consensus target price of $321.89.

Get Our Latest Report on NVIDIA NVIDIA Price Performance NASDAQ:NVDA opened at $221.30 on Thursday. NVIDIA Corporation has a 12-month low of $164.27 and a 12-month high of $243.37. The firm has a market cap of $5.33 trillion, a price-to-earnings ratio of 27.98, a price-to-earnings-growth ratio of 1.77 and a beta of 2.22. The company’s 50-day moving average is $223.43 and its two-hundred day moving average is $210.73. The company has a current ratio of 4.59, a quick ratio of 3.85 and a debt-to-equity ratio of 0.14.

NVIDIA (NASDAQ:NVDA – Get Free Report) last announced its quarterly earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share for the quarter, beating analysts’ consensus estimates 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 for the quarter, compared to analyst estimates of $92.27 billion. During the same quarter last year, the business earned $1.05 EPS. NVIDIA’s revenue for the quarter was up 105.9% on a year-over-year basis. Research analysts expect that NVIDIA Corporation will post 9.25 EPS for the current year.

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

NVIDIA declared that its Board of Directors has approved a stock repurchase program on Monday, September 28th that permits the company to repurchase $150.00 billion in shares. This repurchase authorization permits the computer hardware maker to reacquire up to 2.8% of its shares through open market purchases. Stock repurchase programs are usually an indication that the company’s board believes its shares are undervalued.

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

Positive Sentiment: NVIDIA announced a five-year, $250 million compute commitment to support U.K. AI safety and security research. The initiative strengthens NVIDIA’s relationships with governments, universities and AI developers while promoting its hardware and software ecosystem. NVIDIA pledges $250 million to boost UK AI safety research Positive Sentiment: New ecosystem announcements highlighted continued demand for NVIDIA technology. LSEG is using NVIDIA GPUs to accelerate historical market-data processing, while NVIDIA introduced tools including cuPotential for molecular simulation and expanded collaborations in AI-defined chip manufacturing. LSEG teams up with NVIDIA for faster market data processing Positive Sentiment: State Street launched a sector ETF designed to give NVIDIA a 20.93% allocation, above the 15.41% weighting in its comparable fund, potentially creating incremental demand for NVDA shares. New State Street Sector ETFs Give Biggest Stocks Full Weight Neutral Sentiment: CEO Jensen Huang said NVIDIA would stop supplying chips to customers developing unsafe AI systems. The stance may improve regulatory and reputational positioning, although broader AI-safety concerns could increase scrutiny of the company and industry. Nvidia, Anthropic Weigh In On AI Safeguards Negative Sentiment: Investors are assessing competitive threats from Microsoft’s Maia 300 architecture and Intel’s lower-cost, air-cooled Crescent Island inference GPU. Custom accelerators and cheaper inference solutions could pressure NVIDIA’s pricing, growth assumptions and market share over time. Microsoft Just Unveiled a Brand-New AI Chip Negative Sentiment: IDC reportedly estimates NVIDIA’s China AI-chip market share has fallen to 34% as Huawei gains ground, underscoring export restrictions and rising local competition. Separately, investor Michael Burry is betting against chip stocks, reinforcing valuation and AI-spending concerns. NVIDIA’s China AI chip market share falls to 34% Insider Buying and Selling In other news, EVP Timothy S. Teter sold 30,460 shares of the business’s stock in a transaction on Monday, September 21st. The shares were sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the completion of the transaction, the executive vice president owned 2,687,660 shares of the company’s stock, valued at approximately $598,810,648. The trade was a 1.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 622,239 shares of the stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $231.62, for a total value of $144,122,997.18. Following the completion of the transaction, the director directly owned 2,336,531 shares of the company’s stock, valued at $541,187,310.22. This trade represents a 21.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 1,766,118 shares of company stock worth $399,450,353. Corporate insiders own 3.94% of the company’s stock.

About NVIDIA (Free Report)

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company’s products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.

Featured Stories Five stocks we like better than NVIDIA Tesla Wants to Make Its Own Chips—What Could Go Wrong? IREN Limited’s AI Pivot Gains Traction—But Can Its Data Centers Deliver? PBF Energy’s Stunning Rally Faces a Critical Test Citi Stock Falls Despite Earnings Beat: What Investors Need to Know 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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Lombard Odier Asset Management Europe Ltd increased its holdings in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 4.8% during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 465,030 shares of the computer hardware maker’s stock after purchasing an additional 21,277 shares during the period. NVIDIA accounts for 0.4% of Lombard Odier Asset Management Europe Ltd’s holdings, making the stock its 3rd biggest holding. Lombard Odier Asset Management Europe Ltd’s holdings in NVIDIA were worth $93,048,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also added to or reduced their stakes in 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. bought a new position in shares of NVIDIA during the 1st quarter valued at approximately $27,000. Langley Wealth Management LLC bought a new position in shares of NVIDIA during the 2nd quarter valued at approximately $34,000. Phillip James Consulting Co. bought a new position in shares of NVIDIA during the 1st quarter valued at approximately $40,000. Finally, Bard Associates Inc. grew its holdings in shares of NVIDIA by 8,866.7% in the second quarter. Bard Associates Inc. now owns 269 shares of the computer hardware maker’s stock valued at $54,000 after purchasing an additional 266 shares in the last quarter. 65.27% of the stock is currently owned by institutional investors.

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

Positive Sentiment: NVIDIA announced a five-year, $250 million compute commitment to support U.K. AI safety and security research. The initiative strengthens NVIDIA’s relationships with governments, universities and AI developers while promoting its hardware and software ecosystem. NVIDIA pledges $250 million to boost UK AI safety research Positive Sentiment: New ecosystem announcements highlighted continued demand for NVIDIA technology. LSEG is using NVIDIA GPUs to accelerate historical market-data processing, while NVIDIA introduced tools including cuPotential for molecular simulation and expanded collaborations in AI-defined chip manufacturing. LSEG teams up with NVIDIA for faster market data processing Positive Sentiment: State Street launched a sector ETF designed to give NVIDIA a 20.93% allocation, above the 15.41% weighting in its comparable fund, potentially creating incremental demand for NVDA shares. New State Street Sector ETFs Give Biggest Stocks Full Weight Neutral Sentiment: CEO Jensen Huang said NVIDIA would stop supplying chips to customers developing unsafe AI systems. The stance may improve regulatory and reputational positioning, although broader AI-safety concerns could increase scrutiny of the company and industry. Nvidia, Anthropic Weigh In On AI Safeguards Negative Sentiment: Investors are assessing competitive threats from Microsoft’s Maia 300 architecture and Intel’s lower-cost, air-cooled Crescent Island inference GPU. Custom accelerators and cheaper inference solutions could pressure NVIDIA’s pricing, growth assumptions and market share over time. Microsoft Just Unveiled a Brand-New AI Chip Negative Sentiment: IDC reportedly estimates NVIDIA’s China AI-chip market share has fallen to 34% as Huawei gains ground, underscoring export restrictions and rising local competition. Separately, investor Michael Burry is betting against chip stocks, reinforcing valuation and AI-spending concerns. NVIDIA’s China AI chip market share falls to 34% Analyst Upgrades and Downgrades NVDA has been the topic of several recent research reports. Wells Fargo & Company set a $210.00 target price on shares of NVIDIA in a research report on Friday, October 2nd. UBS Group restated a “buy” rating on shares of NVIDIA in a research report on Friday, October 9th. Piper Sandler started coverage on NVIDIA in a research note on Wednesday, September 9th. They set an “overweight” rating and a $300.00 target price on the stock. Benchmark reiterated a “buy” rating and issued a $335.00 price target on shares of NVIDIA in a report on Thursday, August 27th. Finally, Phillip Securities increased their price target on NVIDIA from $285.00 to $300.00 and gave the stock a “buy” rating in a report on Monday, August 31st. Five equities research analysts have rated the stock with a Strong Buy rating, forty-nine have assigned a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Buy” and a consensus target price of $321.89. View Our Latest Research Report on NVIDIA

NVIDIA Trading Down 3.2% NVIDIA stock opened at $221.30 on Thursday. The stock has a 50-day moving average of $223.43 and a two-hundred day moving average of $210.73. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. NVIDIA Corporation has a one year low of $164.27 and a one year high of $243.37. The stock has a market cap of $5.33 trillion, a PE ratio of 27.98, a price-to-earnings-growth ratio of 1.77 and a beta of 2.22.

NVIDIA (NASDAQ:NVDA – Get Free Report) last announced its quarterly earnings data 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 business had revenue of $96.22 billion during the quarter, compared to analysts’ expectations of $92.27 billion. During the same period in the previous year, the business posted $1.05 EPS. The business’s quarterly revenue was up 105.9% compared to the same quarter last year. On average, research analysts anticipate that NVIDIA Corporation will post 9.25 EPS for the current fiscal year.

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

NVIDIA declared that its board has authorized a share buyback program on Monday, September 28th that authorizes the company to buy back $150.00 billion in shares. This buyback authorization authorizes the computer hardware maker to reacquire up to 2.8% of its stock through open market purchases. Share buyback programs are typically an indication that the company’s board believes its shares are undervalued.

Insider Buying and Selling at NVIDIA In related news, EVP Timothy S. Teter sold 30,460 shares of the firm’s stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $222.80, for a total value of $6,786,488.00. Following the sale, the executive vice president owned 2,687,660 shares of the company’s stock, valued at $598,810,648. This trade represents a 1.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Colette Kress sold 34,918 shares of the company’s stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $219.05, for a total value of $7,648,787.90. Following the completion of the transaction, the chief financial officer directly owned 765,103 shares of the company’s stock, valued at $167,595,812.15. This trade represents a 4.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,766,118 shares of company stock worth $399,450,353 in the last ninety days. 3.94% of the stock is owned by insiders.

About NVIDIA (Free Report)

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company’s products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.

See Also Five stocks we like better than NVIDIA Tesla Wants to Make Its Own Chips—What Could Go Wrong? IREN Limited’s AI Pivot Gains Traction—But Can Its Data Centers Deliver? PBF Energy’s Stunning Rally Faces a Critical Test Citi Stock Falls Despite Earnings Beat: What Investors Need to Know 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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Nissay Asset Management Corp Japan decreased its holdings in shares of NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 1.8% during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 5,903,568 shares of the computer hardware maker’s stock after selling 105,419 shares during the quarter. NVIDIA comprises approximately 5.0% of Nissay Asset Management Corp Japan’s portfolio, making the stock its 3rd biggest holding. Nissay Asset Management Corp Japan’s holdings in NVIDIA were worth $1,181,245,000 as of its most recent SEC filing.

Several other institutional investors have also recently made changes to their positions in the stock. Boyd Wealth Management LLC lifted its stake in NVIDIA by 273.4% in the second quarter. Boyd Wealth Management LLC now owns 9,145 shares of the computer hardware maker’s stock worth $1,830,000 after purchasing an additional 6,696 shares during the last quarter. Ally Financial Inc. boosted its position in NVIDIA by 10.3% during the second quarter. Ally Financial Inc. now owns 172,000 shares of the computer hardware maker’s stock valued at $34,415,000 after buying an additional 16,000 shares during the period. Altshuler Shaham Ltd boosted its position in NVIDIA by 6,451.9% during the first quarter. Altshuler Shaham Ltd now owns 637,236 shares of the computer hardware maker’s stock valued at $111,134,000 after buying an additional 627,510 shares during the period. Storen Legacy Partners LLC purchased a new stake in NVIDIA during the fourth quarter valued at about $1,350,000. Finally, Baker Tilly Wealth Management LLC grew its stake in shares of NVIDIA by 7.4% during the second quarter. Baker Tilly Wealth Management LLC now owns 71,898 shares of the computer hardware maker’s stock valued at $14,386,000 after buying an additional 4,958 shares during the last quarter. Hedge funds and other institutional investors own 65.27% of the company’s stock.

Insider Transactions at NVIDIA In related news, CFO Colette Kress sold 34,918 shares of the company’s stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $219.05, for a total value of $7,648,787.90. Following the completion of the sale, the chief financial officer directly owned 765,103 shares of the company’s stock, valued at $167,595,812.15. This represents a 4.36% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Mark A. Stevens sold 622,239 shares of the stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $231.62, for a total transaction of $144,122,997.18. Following the transaction, the director owned 2,336,531 shares in the company, valued at approximately $541,187,310.22. This represents a 21.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 1,766,118 shares of company stock worth $399,450,353. 3.94% of the stock is currently owned by insiders.

NVIDIA Stock Performance Shares of NVDA stock opened at $221.30 on Thursday. 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 50 day moving average price of $223.43 and a 200-day moving average price of $210.73. NVIDIA Corporation has a 52 week low of $164.27 and a 52 week high of $243.37. The firm has a market capitalization of $5.33 trillion, a PE ratio of 27.98, a P/E/G ratio of 1.77 and a beta of 2.22. 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, topping analysts’ consensus estimates of $2.09 by $0.13. NVIDIA had a return on equity of 96.04% and a net margin of 63.66%. The company had revenue of $96.22 billion for the quarter, compared to analysts’ expectations of $92.27 billion. During the same period last year, the firm earned $1.05 EPS. NVIDIA’s revenue for the quarter was up 105.9% compared to the same quarter last year. As a group, equities research analysts expect that NVIDIA Corporation will post 9.25 earnings per share for the current year.

NVIDIA announced that its board has approved a stock buyback program on Monday, September 28th that authorizes the company to repurchase $150.00 billion in shares. This buyback authorization authorizes the computer hardware maker to purchase up to 2.8% of its shares through open market purchases. Stock buyback programs are often an indication that the company’s board believes its stock is undervalued.

NVIDIA Announces Dividend The company also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Thursday, September 10th were paid a $0.25 dividend. The ex-dividend date of this dividend was Thursday, September 10th. This represents a $1.00 annualized dividend and a dividend yield of 0.5%. NVIDIA’s dividend payout ratio is currently 12.64%.

Analyst Upgrades and Downgrades NVDA has been the topic of several recent analyst reports. Wells Fargo & Company set a $210.00 target price on shares of NVIDIA in a report on Friday, October 2nd. DZ Bank reiterated a “buy” rating on shares of NVIDIA in a report on Wednesday, August 26th. Truist Financial increased their price target on shares of NVIDIA from $307.00 to $346.00 and gave the company a “buy” rating in a research report on Thursday, August 27th. Benchmark reissued a “buy” rating and set a $335.00 price target on shares of NVIDIA in a research report on Thursday, August 27th. Finally, Itau BBA Securities cut their price target on shares of NVIDIA from $256.00 to $218.00 in a report on Wednesday, June 24th. Five research analysts have rated the stock with a Strong Buy rating, forty-nine have issued a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Buy” and an average target price of $321.89.

Read Our Latest Analysis on NVDA

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

Positive Sentiment: NVIDIA announced a five-year, $250 million compute commitment to support U.K. AI safety and security research. The initiative strengthens NVIDIA’s relationships with governments, universities and AI developers while promoting its hardware and software ecosystem. NVIDIA pledges $250 million to boost UK AI safety research Positive Sentiment: New ecosystem announcements highlighted continued demand for NVIDIA technology. LSEG is using NVIDIA GPUs to accelerate historical market-data processing, while NVIDIA introduced tools including cuPotential for molecular simulation and expanded collaborations in AI-defined chip manufacturing. LSEG teams up with NVIDIA for faster market data processing Positive Sentiment: State Street launched a sector ETF designed to give NVIDIA a 20.93% allocation, above the 15.41% weighting in its comparable fund, potentially creating incremental demand for NVDA shares. New State Street Sector ETFs Give Biggest Stocks Full Weight Neutral Sentiment: CEO Jensen Huang said NVIDIA would stop supplying chips to customers developing unsafe AI systems. The stance may improve regulatory and reputational positioning, although broader AI-safety concerns could increase scrutiny of the company and industry. Nvidia, Anthropic Weigh In On AI Safeguards Negative Sentiment: Investors are assessing competitive threats from Microsoft’s Maia 300 architecture and Intel’s lower-cost, air-cooled Crescent Island inference GPU. Custom accelerators and cheaper inference solutions could pressure NVIDIA’s pricing, growth assumptions and market share over time. Microsoft Just Unveiled a Brand-New AI Chip Negative Sentiment: IDC reportedly estimates NVIDIA’s China AI-chip market share has fallen to 34% as Huawei gains ground, underscoring export restrictions and rising local competition. Separately, investor Michael Burry is betting against chip stocks, reinforcing valuation and AI-spending concerns. NVIDIA’s China AI chip market share falls to 34% NVIDIA Company Profile (Free Report)

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company’s products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.

See Also Five stocks we like better than NVIDIA Tesla Wants to Make Its Own Chips—What Could Go Wrong? IREN Limited’s AI Pivot Gains Traction—But Can Its Data Centers Deliver? PBF Energy’s Stunning Rally Faces a Critical Test Citi Stock Falls Despite Earnings Beat: What Investors Need to Know Want to see what other hedge funds are holding NVDA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVIDIA Corporation (NASDAQ:NVDA – Free Report).

Receive News & Ratings for NVIDIA Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NVIDIA and related companies with MarketBeat.com's FREE daily email newsletter.

Navellier & Associates Inc. grew its holdings in NVIDIA Corporation (NASDAQ:NVDA – Free Report) by 1.5% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 606,399 shares of the computer hardware maker’s stock after buying an additional 9,245 shares during the period. NVIDIA accounts for about 9.6% of Navellier & Associates Inc.’s portfolio, making the stock its biggest holding. Navellier & Associates Inc.’s holdings in NVIDIA were worth $121,334,000 at the end of the most recent quarter.

A number of other hedge funds also recently made changes to their positions in the business. Lifetime Wealth Management P.C. acquired a new stake in NVIDIA during the 4th quarter valued at $26,000. Longview Financial Advisors Inc. bought a new position in NVIDIA during the first quarter worth $27,000. Phillip James Consulting Co. bought a new position in NVIDIA during the first quarter worth $40,000. Bard Associates Inc. increased its holdings in shares of NVIDIA by 8,866.7% in the second quarter. Bard Associates Inc. now owns 269 shares of the computer hardware maker’s stock valued at $54,000 after purchasing an additional 266 shares during the last quarter. Finally, Frankly Finances LLC acquired a new position in shares of NVIDIA in the second quarter valued at $60,000. 65.27% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes Several brokerages have recently weighed in on NVDA. Weiss Ratings reissued a “buy (b)” rating on shares of NVIDIA in a research report on Friday, October 2nd. Benchmark restated a “buy” rating and set a $335.00 target price on shares of NVIDIA in a research note on Thursday, August 27th. Daiwa Securities Group reduced their target price on shares of NVIDIA from $255.00 to $245.00 and set an “outperform” rating for the company in a report on Thursday, September 17th. Truist Financial upped their price target on shares of NVIDIA from $307.00 to $346.00 and gave the company a “buy” rating in a research note on Thursday, August 27th. Finally, Stifel Nicolaus set a $315.00 price target on shares of NVIDIA in a research note on Thursday, August 27th. Five equities research analysts have rated the stock with a Strong Buy rating, forty-nine have assigned a Buy rating and one has given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock has an average rating of “Buy” and an average price target of $321.89.

View Our Latest Research Report on NVDA Insiders Place Their Bets In other NVIDIA news, CFO Colette Kress sold 34,918 shares of the stock in a transaction that occurred on Thursday, September 17th. The shares were sold at an average price of $219.05, for a total transaction of $7,648,787.90. Following the transaction, the chief financial officer owned 765,103 shares in the company, valued at $167,595,812.15. This represents a 4.36% decrease in their position. The sale 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, EVP Timothy S. Teter sold 30,460 shares of the firm’s stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $222.80, for a total transaction of $6,786,488.00. Following the transaction, the executive vice president directly owned 2,687,660 shares in the company, valued at $598,810,648. This represents a 1.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 1,766,118 shares of company stock worth $399,450,353 in the last quarter. 3.94% of the stock is currently owned by corporate insiders.

NVIDIA Stock Down 3.2% NVDA opened at $221.30 on Thursday. NVIDIA Corporation has a fifty-two week low of $164.27 and a fifty-two week high of $243.37. The company has a debt-to-equity ratio of 0.14, a quick ratio of 3.85 and a current ratio of 4.59. The company has a market capitalization of $5.33 trillion, a P/E ratio of 27.98, a P/E/G ratio of 1.77 and a beta of 2.22. The stock has a fifty day moving average of $223.43 and a 200-day moving average of $210.73.

NVIDIA (NASDAQ:NVDA – Get Free Report) last announced its earnings results on Wednesday, August 26th. The computer hardware maker reported $2.22 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.09 by $0.13. NVIDIA had a 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 analysts’ expectations of $92.27 billion. During the same quarter in the previous year, the business posted $1.05 earnings per share. NVIDIA’s quarterly revenue was up 105.9% on a year-over-year basis. On average, equities analysts expect that NVIDIA Corporation will post 9.25 EPS for the current year.

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

NVIDIA announced that its Board of Directors has initiated a share buyback program on Monday, September 28th that authorizes the company to buy back $150.00 billion in outstanding shares. This buyback authorization authorizes the computer hardware maker to purchase up to 2.8% of its shares through open market purchases. Share buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

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

Positive Sentiment: NVIDIA announced a five-year, $250 million compute commitment to support U.K. AI safety and security research. The initiative strengthens NVIDIA’s relationships with governments, universities and AI developers while promoting its hardware and software ecosystem. NVIDIA pledges $250 million to boost UK AI safety research Positive Sentiment: New ecosystem announcements highlighted continued demand for NVIDIA technology. LSEG is using NVIDIA GPUs to accelerate historical market-data processing, while NVIDIA introduced tools including cuPotential for molecular simulation and expanded collaborations in AI-defined chip manufacturing. LSEG teams up with NVIDIA for faster market data processing Positive Sentiment: State Street launched a sector ETF designed to give NVIDIA a 20.93% allocation, above the 15.41% weighting in its comparable fund, potentially creating incremental demand for NVDA shares. New State Street Sector ETFs Give Biggest Stocks Full Weight Neutral Sentiment: CEO Jensen Huang said NVIDIA would stop supplying chips to customers developing unsafe AI systems. The stance may improve regulatory and reputational positioning, although broader AI-safety concerns could increase scrutiny of the company and industry. Nvidia, Anthropic Weigh In On AI Safeguards Negative Sentiment: Investors are assessing competitive threats from Microsoft’s Maia 300 architecture and Intel’s lower-cost, air-cooled Crescent Island inference GPU. Custom accelerators and cheaper inference solutions could pressure NVIDIA’s pricing, growth assumptions and market share over time. Microsoft Just Unveiled a Brand-New AI Chip Negative Sentiment: IDC reportedly estimates NVIDIA’s China AI-chip market share has fallen to 34% as Huawei gains ground, underscoring export restrictions and rising local competition. Separately, investor Michael Burry is betting against chip stocks, reinforcing valuation and AI-spending concerns. NVIDIA’s China AI chip market share falls to 34% About NVIDIA (Free Report)

NVIDIA Corporation is a technology company that designs accelerated computing platforms, graphics processing units (GPUs), central processing units (CPUs), networking products and related software. Its technologies are used in artificial intelligence, data centers, scientific and technical computing, gaming, professional visualization, automotive systems and robotics.

The company’s products include GeForce GPUs and gaming software, data center computing platforms, networking solutions, and enterprise software for AI development and deployment.

Featured Articles Five stocks we like better than NVIDIA Tesla Wants to Make Its Own Chips—What Could Go Wrong? IREN Limited’s AI Pivot Gains Traction—But Can Its Data Centers Deliver? PBF Energy’s Stunning Rally Faces a Critical Test Citi Stock Falls Despite Earnings Beat: What Investors Need to Know Want to see what other hedge funds are holding NVDA? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for NVIDIA Corporation (NASDAQ:NVDA – Free Report).

Receive News & Ratings for NVIDIA Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for NVIDIA and related companies with MarketBeat.com's FREE daily email newsletter.

Nvidia CEO Jensen Huang said the chipmaker "absolutely must" work with Chinese AI companies on monitoring risks around the "potentially dangerous" technology.

"We absolutely should work with each other so that we advance the technology safely," he told CNBC during a media briefing on Wednesday evening in London.

Discussions around AI safety have intensified in recent months, after researchers from AI labs including OpenAI and Anthropic called for a slowdown in developing the tech and warned of existential risks to humanity.

While OpenAI's Sam Altman and Anthropic's Dario Amodei have called for greater regulation, Huang has emerged as a prominent voice in opposition to that view.

Huang said that "dialogue" was the way to work with Chinese AI companies, adding that he has "dialogues with many of the researchers in China."

"We ought to enhance the dialogue," he added. "The United States should do it... I advocated that the U.K. do the same thing."

U.S.-China AI cooperationAI safety has become a key topic between the U.S. and Chinese governments, with both countries weighing how to address the risks posed by the rapidly advancing tech.

Prior to U.S. President Donald Trump's meeting with Chinese counterpart Xi Jinping, U.S. Treasury Secretary Scott Bessent discussed the prospect of a "U.S.-China AI dialogue" with his Chinese counterpart, He Lifeng, in September, including a channel for incidents "up to a national security level."

A Chinese readout of the meeting said President Xi pointed out that China and the U.S. "may have competition, but they may cooperate even more" in AI. "The two sides can continue their dialogue on AI, exchange views on its risks and benefits, and jointly prevent the misuse and abuse of AI," Xi said, per the readout.

Huang said that the U.K. is in a position "in the world to be able to be a convener of many of these dialogues" related to AI, because of the country's "intellectual capital."

Reported details about Anthropic's financial progress are adding to concerns about the health of the AI ecosystem.

If you're analyzing a stock, one of the first metrics that comes up is market cap. That's short for market capitalization, and it's the total value of all of a company's shares outstanding. Here's how it's calculated and why it's important.

When you hear about the largest companies in the world, it often refers to the most valuable companies in the world, and these phrases are often interchangeable. They both refer to the size of the company's market cap. Nvidia (NVDA -3.16%), for example, is the largest company in the world with a market cap of about $5.5 trillion.

Image source: Getty Images.

Market cap is determined by multiplying the price per share by the total shares outstanding. In Nvidia's case, for example, shares are trading at about $229, and there are 24.3 billion shares outstanding.

However, that market cap changes constantly as the price per share rises or falls, and it could change drastically if a stock makes a big movement in either direction. The status of the most valuable company in the world has shifted among Nvidia, Apple, and Microsoft during the past few years, as assessed by market cap and shown in the following chart.

NVDA Market Cap data by YCharts

That's due to their stock gains and losses. A few years ago, Nvidia was a relatively obscure chipmaker, but as an artificial intelligence (AI) giant, its stock and market cap have soared.

Market cap categories Market cap becomes important for investors when building a diversified portfolio. Stocks are typically categorized by size according to these groups: micro cap, small cap, mid cap, large cap, and mega cap. There are also nano-cap stocks, but they often trade over the counter (OTC) instead of on one of the main stock exchanges. Categories are usually defined by these numbers:

Micro cap: $50 million to $250 million Small cap: $250 million to $2 billion Mid cap: $2 billion to $10 billion Large cap: $10 billion to $200 billion Mega cap: $200 billion and above A great mix of stocks includes several categories. Micro-cap stocks are often in the development stage and may be risky, but may offer excellent growth. Small-cap stocks are often established enough to be stable and still offer excellent growth opportunities. Mid-cap stocks are typically past their initial growth phase and may be quite successful. Large-cap stocks have already demonstrated consistent growth, which is why they're so valuable, and mega-cap stocks are the industry giants. The mega-cap stocks generally get the most attention, and they often continue to grow rapidly. Many of them also pay a dividend, especially if they're past their high-growth stage.

The large tech stocks fall into the mega-cap category, but it also includes many other dominant companies like Walmart, Eli Lilly, and Visa.

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Stock splits Often, when a stock's price becomes very high, a company will choose to split its stock. That doesn't affect the market cap at all. It just means there are more shares outstanding, and each one is worth less. For example, CrowdStrike split its stock 4-for-1 in July, meaning a holder of one share now holds four shares of lesser value. The stock went from a price of $772.74 to $193.19 when the split took effect on July 2, but the market cap remained the same.

Indexes and ETFs Many indexes and exchange-traded funds (ETFs) are based on specific market-cap sizes. The S&P 500 has a minimum market cap requirement of $20.5 billion, which means it only includes large- and mega-cap stocks. It reviews its holdings quarterly and will remove stocks that fall below that threshold. That's one of the reasons the index is geared for growth: Slow-growing companies will be replaced with faster-growing ones as necessary. S&P Global also has separate mid-cap and small-cap indexes.

ETFs that track indexes reflect these categories as well, and you can get exposure to different classes by buying ETFs that specialize in them.

Jennifer Saibil has positions in Apple and Walmart. The Motley Fool has positions in and recommends Apple, CrowdStrike, Eli Lilly, Microsoft, Nvidia, S&P Global, Visa, and Walmart. The Motley Fool has a disclosure policy.

In Q3 2026, the Portfolio returned 4.46% (net of fees) compared to 0.92% for the Index. Top relative contributors to the Portfolio's performance included ServiceNow, Shopify and Microsoft. By contrast, the largest relative detractors in the quarter were Nvidia, Apple (not owned) and Lam Research.

Nvidia Corp. Chief Executive Officer Jensen Huang says his company would stop selling chips to a customer that was developing unsafe AI software. He talks extensively about AI safety and how the industry is growing with Bloomberg's Emily Chang in London.

On Nov. 16, 2022, Nvidia (NVDA -3.16%) reported results for the third quarter of fiscal 2023. It wasn't a great report. The chip designer missed Wall Street's average bottom-line target, even.

Revenue fell 17% year over year, and gaming sales were cut in half. New U.S. export rules blocked its top data center chips from China. Management took a $702 million inventory charge for products it no longer expected to sell in the Chinese market. If you skimmed the headlines that evening and went back to your couch, nobody could blame you.

Two weeks later, OpenAI released ChatGPT, and the tech world went bananas. Nvidia was already shipping chips to support the generative AI wonder. The stock was worth roughly $390 billion back then, and $5.5 trillion in October 2026. Things have changed, and November 2022 was a turning point.

So I went back and checked out that ho-hum earnings call. Hindsight is cheating, I know. It's also a pretty good way to learn what an early signal might look like before it becomes obvious.

Nvidia CEO Jensen Huang. Image source: Nvidia.

The ghost in the gaming numbersNvidia still had a gamer's reputation. The pandemic graphics card frenzy, further juiced by crypto miners, had ended with a whimper. Its ghost was haunting the sales channel in the form of unsold inventory and secondhand cards on eBay. When an analyst asked about leftover mining hardware, CEO Jensen Huang said he didn't expect blockchain to be an important part of the business anymore.

In 2022, it sounded like Huang dodging an uncomfortable question in the middle of a crypto winter. He was absolutely right, though. Ethereum switched from GPU-based mining to a proof-of-stake system in September that year, and specialized processors were already orders of magnitude better for mining Bitcoin. Even if the AI boom hadn't been around the corner, the crypto-mining surge was over.

Meanwhile, in the other corner of the income statement, data center revenue rose 31% to a record $3.8 billion. Gaming fell 51% to $1.6 billion. Just one year earlier, gaming had been the bigger segment. By this quarter, data center was about 2.4 times its size and made up nearly two-thirds of total revenue.

The new pillar of the business had been poured and set while most of the attention stayed on the gaming wreckage.

Nvidia named the trend before it had a mascotWhat gets me is that management wasn't hinting. CFO Colette Kress credited data center growth to workloads like "large language models, recommendation systems and generative AI." Huang called it "the beginning of the era of generative AI." The investor presentation flatly stated that LLMs "are widely viewed as the most important AI models today."

Many investors still had to look up what LLM meant. This was before ChatGPT turned the acronym into casual dinner-table material.

The deck also had a chart about the computing power needed to train transformer-based AI models. It was growing about 275 times every two years, versus 8 times for everything else. Squint at that chart as a sales forecast for an AI chip company, and it starts to look exciting.

Image source: The Motley Fool.

Then came the metaverse slideThe deck didn't stop at LLMs. The very next slide pitched Nvidia's Omniverse computing systems as a foundation for the metaverse. A later slide declared metaverse applications "the next wave." The company's $1 trillion market opportunity slide gave Omniverse software the same $150 billion estimate as AI enterprise software.

On paper, it was a coin flip. Facebook had renamed itself Meta Platforms (META -3.27%) about a year earlier. In an alternate universe, virtual reality worlds might have taken the spotlight that AI stole in 2022 and 2023.

To be fair to Nvidia, Omniverse was mostly aimed at industrial digital twins for factories and rail networks, not cartoon avatars, and the product is still around. It just isn't what turned Nvidia into a $5.5 trillion company.

The unglamorous plumbingHuang spent several answers on networking. He argued that high-performance interconnects pay for themselves in large AI data centers. The deck described the network and storage as part of "the computing fabric," not separate add-ons. Microsoft (MSFT -1.80%) was about to launch an AI infrastructure platform, running entirely on Nvidia's InfiniBand networking. That systems-level approach helps explain why Nvidia captured so much of the AI spending wave, not just the GPU slice.

Microsoft also happened to be OpenAI's biggest backer. Nobody on the call connected those dots.

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The H100 was already rollingNvidia started shipping its H100 data center GPU during the quarter. Huang said customers were "clamoring" for it. He expected large volumes by early 2023, a faster ramp than the prior generation. The slide deck said partners would roll out the first wave of H100 products and services in fiscal Q4. ChatGPT launched in that same quarter.

Timing like that is hard to plan. For investors, the signs were hiding in plain sight.

What I'd borrow from this callNone of this guaranteed what happened next. Nvidia guided for $6.0 billion in fourth-quarter revenue, barely above the third quarter. China export restrictions, inventory charges, and a gaming slump dominated the near-term picture.

Yet, data center revenue was growing while everything else shrank. Management was talking specifically about LLMs and generative AI. A new flagship chip was ramping into exactly those workloads.

Those three signals are worth watching for in any earnings call: which segment keeps growing through a downturn, and which topics management keeps returning to.

On Monday, Microsoft (MSFT -1.80%) unveiled its latest AI chip architecture, the Maia 300.

And the company went out of its way to point out the ways in which the Maia 300 was superior to graphics processing units (GPUs). "This is our biggest bet yet on our own silicon," said CEO Satya Nadella.

This was seen as a shot across the bow to the world's premier GPU maker, Nvidia (NVDA -3.16%).

So is the Maia 300 the "Nvidia killer" that everyone has been anticipating for years? It might be, but not in the way you might think. Here's what's really going on.

Image source: The Motley Fool.

Cutting the cost of AI The Maia 300 is an upgraded version of the Maia 200, which was released in January.

The Maia 200 is currently in production and has already been deployed at Microsoft facilities in Iowa and Arizona, where it's used instead of GPUs and other components from Nvidia, Intel (INTC -4.56%), and Advanced Micro Devices (AMD -5.73%).

Microsoft claims the new, upgraded Maia 300 chip is even more economical and can process 40% more tokens per megawatt when compared to GPUs. A higher token-per-megawatt ratio results in lower AI costs because the biggest expense for an AI data center is electricity.

But even if it's cheaper to operate, it's certainly not going to match the power of Nvidia's top-of-the-line systems. Won't that be an issue?

It's not always about being first Perhaps more than any other company, Microsoft has done very well by coming in second. Its Azure cloud platform is the second-largest, compared to Amazon's Amazon Web Services. Its Surface tablets have never outsold Apple's iPad. Its Xbox has always played second fiddle to the Sony PlayStation.

So it shouldn't surprise anyone that Microsoft isn't trying to beat Nvidia at its own game, but to compete on a more favorable playing field: cost. "Moving data efficiently, rather than raw compute power, is increasingly the bottleneck in large inference systems," Microsoft said in its blog post announcing the Maia 300 system. The company hopes to leverage this to its advantage.

Image source: Getty Images.

Austin Lyons, an analyst for Chipstrat, thinks there's an opportunity here in optimizing different AI processors for different tasks. "The advantage of custom silicon is that Microsoft can optimize for the latency its own workloads actually require," he wrote. "A meeting summary and a coding agent don't need the same response time. Maia targets more throughput at each of those latency points, translates to more useful tokens served per megawatt and lower cost passed for customers."

Pat Moorhead of Moor Insights & Strategy agrees, writing:

Microsoft is now moving toward deploying Maia at meaningful production scale. At that scale, custom silicon isn't just about performance. It can become an important margin driver by improving the economics of delivering Microsoft's own AI services.

The AI race is changing Lyons and Moorhead are echoing commentary from across the industry that suggests the AI race is evolving away from a zero-sum contest to create the fastest, most powerful processors. Hyperscalers and other major players are starting to think about the economics of AI and what customers will be willing to pay in an era where the tech giants start to monetize the new technology.

By running lower-difficulty, in-house AI queries on processors that operate more cheaply, Microsoft is taking another step in proactive cost management, which is one of the key reasons investors rewarded the stock earlier this year.

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So while the Maia 300 isn't an Nvidia killer on its own, it's evidence that the most powerful AI processors -- currently Nvidia's GPUs -- may not be everyone's universal first choice in the future for every application. Routing an AI query to the cheapest infrastructure possible for the difficulty of the problem presented may become the norm.

In other words, even if Nvidia continues to produce the best tech in the world for decades to come, its sales volume might suffer regardless.

Nvidia will still be in the mix The Maia 300 doesn't even begin production until sometime in 2027. And even then, Nvidia AI infrastructure is almost certain to remain a critical part of Microsoft's AI mix.

Just last week, Microsoft started taking preorders for a new Surface Laptop Ultra with a starting price of $2,599. That hefty price tag is thanks to its powerful processor that can run AI models without requiring cloud access.

The maker of that incredibly powerful chip? You guessed it: Nvidia.

Nvidia, the AI-computing and networking supplier (NVDA), opens more of its Vera Rubin infrastructure designs to industry partners, while shares traded at $222.2

NVIDIA Today

$222.39 -6.13 (-2.68%)

As of 01:08 PM Eastern

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$164.27▼

$243.370.45%

28.12

$321.89

Being AI-lab agnostic has long been a pillar of NVIDIA’s NASDAQ: NVDA strategy. Selling to all labs creates a deep moat, making the question of which one wins moot: NVIDIA always wins because it sells hardware, ecosystems, and services to the industry. As it stands, the moat is based largely on silicon, but it deepens with every advancement along the stack, entrenching its position as a comprehensive, universal AI developer ecosystem.

So, what happens when the company breaks out of its mold? Speculation is running rampant that this is becoming increasingly likely. NVIDIA is reportedly in early talks to buy Reflection AI or increase its investment in the startup. Reflection AI is a newer startup founded by former Alphabet NASDAQ: GOOGL DeepMind researchers.

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Reflection AI focuses on open-weight foundation models (which aren't necessarily fully open-source) and agentic software tools that democratize AI. Governments, enterprises, and AI labs can download the software, own it, customize it, and run AI models on their own hardware. Offerings include Beam, focused on coding, reasoning, and agentic tasks, and Asimov, an agentic tool that helps developers answer complex questions about software systems.

NVIDIA’s Moat Will Deepen If It Acquires Reflection AIInvestors should note that this move wouldn't necessarily alter NVIDIA's strategy; it could strengthen it. Owning a developer of open-weight AI tools helps NVIDIA deepen its moat. Making AI models more widely accessible keeps the focus on its hardware and ecosystem, not which model developer wins.

The likely outcome is that modelers and, more importantly, inference providers will keep investing in NVIDIA technology as demand for AI-enabled enterprise and consumer services grows. It's not about the models but the equipment you use to run them. Models are already a dime a dozen; the question for businesses and consumers is which ones to use and how to access them. This move could cement, secure, and strengthen NVIDIA’s revenue and earnings outlook as the AI industry expands.

And NVIDIA isn’t new to the business. NVIDIA previously an $800 million direct investment in Reflection AI, anchoring a $2 billion funding round, which valued the company at $8 billion. The partnership not only provides the company with money but also strengthens its ties to NVIDIA's GPU ecosystem, which Reflection AI uses to train its models. Nebius Group NASDAQ: NBIS is another critical player, having secured a $1 billion contract from Reflection AI for cloud capacity and services.

The question of whether owning a model maker gives NVIDIA a new revenue stream or strains its relationships with AI labs remains open. NVIDIA may be more interested in Reflection AI for its position in the AI ecosystem than for its revenue. If NVIDIA wants to keep low-cost, open-weight AI models in Western control, an acquisition could be strategically valuable. The risk is that China emerges as the leader in low-cost models, leading the industry toward its hardware and ecosystem rather than NVIDIA’s.

NVIDIA Will Control Reflection AI, the Only Question Is How?The most important question is: How might the deal be structured? Investors should consider the possibility of a non-standard workaround, such as a hire-to-acquire strategy, but even that is not assured. NVIDIA may simply hire Reflection AI’s staff and license its technology, potentially avoiding a lengthy merger review without necessarily escaping regulatory scrutiny.

Regulatory oversight also poses risks, as authorities have already expressed interest in other deals. NVIDIA licensed technology from Groq and hired several of its executives (also started by Alphabet engineers) in a similar manner, raising questions from lawmakers about whether it intentionally avoided regulatory oversight.

NVIDIA Stock Forecast Today12-Month Stock Price Forecast:
$321.89
44.30% Upside

Buy
Based on 55 Analyst Ratings

Current Price$223.08High Forecast$515.00Average Forecast$321.89Low Forecast$210.00NVIDIA Stock Forecast Details

Those raising concerns include Senators Elizabeth Warren and Richard Blumenthal, who argue that NVIDIA’s AI dominance may pose a threat to competition. In this environment, the company will have to be careful to address regulatory concerns.

Analysts remain bullish on NVIDIA, although the impact of the potential deal remains uncertain. The acquisition could represent an extension of NVIDIA's strategy rather than a strategic shift. The stock carries a consensus Buy rating from the 55 analysts tracked by MarketBeat, with a consensus price target suggesting over 40% upside from mid-October trading levels.

NVIDIA’s next visible catalyst is its upcoming earnings report. Expected around Nov. 18, analysts forecast a deceleration to about 90% year-over-year revenue and earnings growth. The company consistently outperforms estimates and could do so again this quarter. Global investment in AI infrastructure across industries continues to drive demand for its core products. Investors will be watching growth, as well as profitability, cash flow, and capital returns, which have been accelerating.

Should You Invest $1,000 in NVIDIA Right Now?Before you consider NVIDIA, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and NVIDIA wasn't on the list.

While NVIDIA currently has a Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

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Nvidia dominates the GPU market, and this has resulted in triple-digit earnings growth. This challenger operates in the same space as Nvidia and says its chips can outperform the GPU.

News Summary:

NVIDIA introduces cuPotential, a new NVIDIA CUDA-X library developers can use to build AI agents that simulate how atoms and molecules interact, accelerating already GPU-optimized workflows by an additional 2-3x in early-access testing.NanoVDB, an open source library for working with 3D data, accelerates chipmaking simulation for AI-defined fabs, helping Lam Research achieve 30x faster simulation.NVIDIA NPP, a library for processing images on GPUs, accelerates chipmaking inspection for AI-defined fabs, helping KLA accelerate inspection.Applied Materials, Cadence, KLA, Lam Research, Siemens, Synopsys and other semiconductor leaders are using NVIDIA’s accelerated computing and AI stack across chip design, manufacturing and testing, helping drive faster development, better yield and greater production capacity. SAN FRANCISCO, Oct. 14, 2026 (GLOBE NEWSWIRE) -- SEMICON West -- NVIDIA today announced semiconductor leaders are adopting NVIDIA CUDA-X™ libraries — including the new NVIDIA cuPotential library, which developers can use to build AI agents that simulate how atoms and molecules interact — to advance AI-defined fabs.

AI-defined fabs are semiconductor factories where AI helps engineers optimize processes, solve production issues and improve production efficiency. As demand for advanced chips rises, such fabs must expand production while managing increasingly complex manufacturing processes. Engineers need new ways to model materials, analyze inspection data and test process changes in digital twins before applying them in production.

The expanded CUDA-X portfolio gives AI agents and engineering applications accelerated tools for semiconductor simulation, 3D data processing and image analysis, helping automate more engineering work across chip design and manufacturing so fabs can predict process behavior and improve yield.

“The semiconductor industry made the AI revolution possible. Now, AI is transforming how chips are built,” said Tim Costa, vice president and general manager of industrial and computational engineering at NVIDIA. “As fabs race to meet demand for advanced chips, NVIDIA CUDA-X and Omniverse libraries give AI agents accelerated simulation and inspection tools to help engineers manage complexity, improve yield and advance AI-defined fabs.”

NVIDIA cuPotential Accelerates How Researchers Model Atomic Interactions
Understanding how atoms and molecules interact is critical to modeling semiconductor materials and manufacturing processes, but these calculations can take significant amounts of time, even in software already optimized for GPUs.

NVIDIA cuPotential accelerates atomic-scale simulation with specialized GPU-accelerated functions developers can add to existing software. It helps researchers model electrical forces and other interactions across large numbers of atoms to test and refine simulations faster. Synopsys is among the early adopters using cuPotential to accelerate materials simulations.

By making these modeling capabilities available to AI agents, cuPotential helps agents run, evaluate and iterate on advanced molecular simulations. In early-access testing, the library accelerated already GPU-optimized workflows by an additional 2-3x.

Semiconductor Leaders Advance AI-Defined Fabs With NVIDIA CUDA-X
AI-defined fabs require faster ways to model chip designs, materials behavior and manufacturing processes before changes reach production. NVIDIA CUDA-X libraries — including NVIDIA cuPotential for simulating atomic interactions, NVIDIA cuEST for modeling electronic behavior and NVIDIA cuDSS for solving complex engineering simulations — accelerate these workloads to help make fabs more autonomous.

Synopsys is using cuPotential, cuEST and cuDSS to accelerate semiconductor simulations, with early QuantumATK results showing a potential 30x speedup using cuEST, and S-Device benchmarks showing a 12x speedup using cuDSS. The company’s AgentEngineer solutions interoperate with NVIDIA Nemotron™ open models and NVIDIA NeMo™ to support AI agents for chip design and verification.

Cadence is using NVIDIA accelerated computing, NVIDIA Nemotron open models and CUDA-X libraries to bring agentic AI to the design and simulation of electromechanical systems — from semiconductors to advanced packaging and printed circuit boards. Examples include Cadence AuraStack AI Super Agent optimizing advanced packages for heat and stress 8x faster using cuDSS with Cadence Celsius, and Nemotron with ChipStack AI Super Agent for semiconductor design and verification.

COMSOL is accelerating semiconductor multiphysics simulations with NVIDIA cuDSS, delivering up to 10x faster simulations to help engineers optimize equipment and processes. Its upcoming COMSOL MCP Server will use the NVIDIA Nemotron Ultra open model to enable AI-assisted modeling and design exploration.

Voltai accelerates advanced chip packaging with Voltaire, its agentic multiphysics platform for 3D-IC design and simulation. Voltaire combines AI agents with GPU-accelerated solvers powered by NVIDIA cuDSS and CUDA-X libraries, compressing complex electro-thermal-mechanical simulation workflows from months to a day.

ChipAgents uses NVIDIA AI infrastructure and NVIDIA model-training and optimization software to develop specialized AI models for chip design. The company is also working with NVIDIA to develop Build-A-Chip Bench, a new AI benchmark that evaluates agents across end-to-end workflows from specification to graphic data system. The benchmark gives the industry a comprehensive measure of progress toward fully autonomous semiconductor engineering.

NVIDIA Open Libraries Help Prepare and Optimize Manufacturing Workflows
Fabs depend on thousands of process steps that must be modeled, refined and validated before production. The NVIDIA cuLitho library accelerates calculations for printing chip patterns; NanoVDB — an open source library for working with 3D data — accelerates chipmaking simulations; and the open NVIDIA PhysicsNeMo™ framework helps train physics AI models to predict how physical systems behave.

Siemens is using cuLitho to speed up Calibre software for chip-pattern refinement and mask preparation. Its Solido team is also developing agent-driven characterization workflows with Nemotron open models and NVIDIA NeMo open libraries.

Lam Research intends to integrate NanoVDB into its advanced semiconductor process modeling platform SEMulator3D, part of the company’s Semiverse Solutions family of virtual products. The addition of NanoVDB is expected to accelerate select wafer-etch modeling by up to 30x, while using NVIDIA PhysicsNeMo has been demonstrated to assist in reducing plasma-prediction simulation time to as little as milliseconds instead of days.

Luminary is applying NVIDIA PhysicsNeMo to semiconductor package design, training physics AI models to predict temperature, pressure drop and thermal stress across package configurations — enabling engineers to explore 100x more designs in the same schedule without running a new simulation for every option.

AI-Defined Fabs Inspect and Test Chips With NVIDIA CUDA-X Libraries
AI-defined fabs need to analyze inspection images and test data quickly enough to catch defects, maintain equipment and improve yield. NVIDIA NPP, a library for processing images on GPUs, and NVIDIA RAPIDS cuDF, a library for processing large datasets on GPUs, help accelerate test and quality-control workflows.

Using NVIDIA AI and accelerated computing, imec is removing noise from scanning electron microscope images used for sub-nanometer chip measurements and using NVIDIA cuLitho to enable computationally intensive process-window optical proximity correction — achieving a 30% improvement in the lithography process window.

KLA applied insights from its highly optimized production kernels to a new NPP NCC kernel that achieved performance levels 50x faster than earlier CPU versions, comparable with KLA’s hand-tuned implementations.

Teradyne is using NVIDIA NPP and accelerated computing to accelerate image-sensor testing, and RAPIDS cuDF and CuPy for GPU calculations, to deliver approximately 85x faster probe-maintenance inference, helping identify degrading probes before they affect yield.

Advantest has integrated NVIDIA Nemotron and NVIDIA Kumo-Anomaly into ACS RTDI to enable AI-driven semiconductor production analytics. Powered by NVIDIA Grace Blackwell systems, ACS delivers real-time diagnostics and inferencing that recommend corrective actions for test cells. Advantest is also using NVIDIA NeMo Switchyard AI agents to automate model selection, streamline semiconductor test workflows and reduce response times from hours to minutes.

NVIDIA Technologies Advance Fab Operations and Automation
In an AI-defined fab, equipment data must move from instruments into AI systems fast enough to support operational decisions.

Applied Materials is using NVIDIA Omniverse™ and NVIDIA CUDA-X libraries, including cuDSS, cuEST and PhysicsNeMo, across materials discovery, process development and fab optimization — enabling up to 35x faster chamber simulations and fab digital twins that help optimize layouts and material flow.

Analog Devices Inc. is combining Synopsys physics simulation with the NVIDIA Isaac Sim™ framework and Omniverse libraries to develop high-fidelity sensing simulations and robotic benchmarks, helping engineers evaluate how sensors behave within complete robotic systems.

FANUC and Foxconn are connecting their robot models to the Mega NVIDIA Omniverse Blueprint, enabling manufacturers to simulate and validate robotic operations in factory digital twins before physical deployment.

OMRON is using NVIDIA Cosmos™ open world models and the NVIDIA Metropolis Blueprint for video search and summarization in its inspection equipment to develop agents that combine visual data, equipment documentation and manufacturing knowledge. These agents help engineers analyze printed circuit board results, investigate potential defect causes, and support troubleshooting and quality control.

Availability
NVIDIA cuPotential is available in early access. NanoVDB is available as open source within OpenVDB, and NPP is available through NVIDIA CUDA Toolkit. Lam Research’s NanoVDB-accelerated SEMulator3D capability is targeted for release by the end of this year.

Learn more by joining NVIDIA at SEMICON West.

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

For further information, contact:
Pixie Bitner
Corporate Communications
NVIDIA Corporation
[email protected]

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

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

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/23aba54b-6557-4e7a-9dac-a12b429bde1f

NVIDIA and Semiconductor Leaders Advance AI-Defined Fabs NVIDIA today announced semiconductor leaders are adopting NVIDIA CUDA-X libraries — including the ne...

Jensen Huang says AI tokens are now productive and profitable, and NVIDIA keeps converting that claim into cash at a pace that makes its nearest rivals look like bystanders. Here is why one investor keeps clicking buy every time the…

My NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) position keeps growing, and the latest buyback expansion gave me one more reason to click buy again. When a company producing this much cash commits that much of it to reducing my share count, I want to own more of it.

Why the Buy Button Keeps Pulling Me Back NVIDIA offers the full AI stack: compute, networking, and the CUDA software that ties them together. The company turns that platform into cash and sends a growing share of it back to owners like me. The CEO, Jensen Huang, summed up the demand side: “AI has reached its inflection point. It’s doing useful work. Its tokens are productive and profitable. Now, compute is revenue.”

Buyback Firepower That Keeps Growing In May 2026, the board approved an additional $80.0 billion repurchase authorization with no expiration, on top of $38.5 billion left under the prior one. By the end of Q2 FY27, roughly $99.0 billion remained. In that quarter alone, NVIDIA returned a record $26 billion: $20 billion in buybacks and $6 billion in dividends after raising the quarterly payout from $0.01 to $0.25 per share. Management said, “Relative to our plan to return 50% or more of free cash flow, we have returned 60% on a year-to-date basis,” and added that it intends to “increase and return excess free cash flow net of strategic uses.”

Growth Pays for Every Dollar Returned Q2 FY27 revenue reached $96.22 billion, up 105.8% year over year. Non-GAAP EPS of $2.22 topped the $2.09 consensus, the fifth consecutive beat. Data Center revenue rose 117% to $89.02 billion. Guidance calls for $108.0 billion, plus or minus 2%, in Q3, and management expects roughly 70% revenue growth in fiscal 2028 while supply-constrained.

Valuation and Balance Sheet Back the Thesis I pay about 46 times earnings for a business with a 101.49% ROE, 92.21% ROIC, debt-to-equity of 0.0726, and interest coverage of 503.42x. That balance sheet lets buybacks continue through any soft patch.

Why My Money Skips AMD and Intel Advanced Micro Devices (NASDAQ:AMD) trades near 228 times earnings, posted a 56% non-GAAP gross margin against NVIDIA’s 75.0%, pays no dividend, and reported no repurchases in its first two quarters of fiscal 2026. Intel (NASDAQ:INTC) booked a $11.0 billion GAAP net loss in Q2, pays no dividend, and guided to roughly 42.0% non-GAAP gross margin. Intel now partners with NVIDIA on custom NVLink products, so I get that upside through my NVIDIA shares.

China and Capital Commitments: Risks I Track Closely Export restrictions keep China Data Center compute out of guidance, and NVIDIA carries $279 billion in supply commitments plus guarantees limited at $108.5 billion. Days sales outstanding rose to 60 days from 45 days, and gross margin should bottom at 71% to 72% in Q4 on memory costs. Those commitments could hurt should AI spending stall. The guidance already assumes zero China revenue and demand exceeds supply, which supports my thesis. Huang said, “Our demand is much higher than that.”

What Keeps My Buy Button Active Vera Rubin lifts NVIDIA’s opportunity to $40 billion per gigawatt from $25 billion with Blackwell. All of that compute still has to be powered, cooled, and networked by somebody, which is why we rounded up seven suppliers behind the AI expansion in a free report. Shares slipped 4.48% over the past week as new AI announcements failed to re-energize investors. I welcome that. Every decline lets my dollars and NVIDIA’s $99.0 billion authorization buy more of the same business, and I plan to keep buying alongside the company.

Contact [email protected] for any questions or corrections.

SummaryNvidia Corporation is rated a Strong Buy, with robust EPS growth, a next-gen Vera Rubin chip ramp, and an undemanding 14.5x FY28 forward P/E.Q2 FY27 saw 106% YoY revenue growth, and 120% EPS growth, and data center revenue now comprises 92.5% of total sales.CapEx spending by hyperscalers is accelerating, with Vera Rubin expected to reach 20% of data center revenue in Q3 and $1.3T in CapEx forecasted for 2027.Key risks include gross margin contraction, working capital build, and significant exposure to large AI customers and internal financing arrangements. Robert Way/iStock Editorial via Getty Images

Nvidia Corporation (NVDA) finally hit a new all-time high earlier last week, reaching $243/share. It then gave back ≈6%, and on Friday closed at $229/share, after news surfaced that OpenAI's (

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

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

Key Takeaways Physical AI spans robotics and autonomous vehicles, with rapid market growth projected through 2032.NVIDIA, Tesla and ABB are advancing physical AI through chips and autonomous systems.Physical AI ETFs offer diversified exposure to robotics and automation while mitigating single-stock risk.
Artificial intelligence (AI) is evolving at an extraordinary pace, moving beyond chatbots and content generation into something far more consequential: machines that can perceive, reason, and act autonomously in the physical world. Currently, physical AI represents the convergence of AI with robotics, autonomous vehicles, drones and smart manufacturing systems. 

The growth prospects for this market reflect this momentum, with the global physical AI market projected to grow from $1.50 billion in 2026 to $15.24 billion by 2032, representing a 47.2% CAGR (as predicted by Markets & Markets). 

For investors, this transformation is putting companies working on physical AI in the spotlight, and by extension, exchange-traded funds (ETFs) holding these stocks are emerging as compelling low-risk investment options to capture the trend.

Before examining these funds, it is important to understand the industry's key players and the extent to which physical AI is transforming the market. This broader perspective can help investors assess the growth opportunities and make informed investment decisions.

Key Players in the Transformation Physical AI marks a fundamental shift from AI as a digital tool to AI as a system capable of driving real-world outcomes. As NVIDIA’s CEO mentioned last year: “AI’s next stage is called physical AI, where AI interacts with the physical world, and it means robotics.”

Several companies are currently leading this charge, with NVIDIA (NVDA - Free Report) at the center of the physical AI ecosystem. The company provides full-stack AI computing for physical AI and robotics through its GPUs, Jetson edge platforms, and Isaac robotics framework. NVDA has partnered with companies like Unitree to release open humanoid robot reference designs to accelerate academic and industry research.

Beyond humanoids, NVIDIA's Jetson and Hyperion platforms power autonomous tractors, mowers, delivery bots (like Serve Robotics), and L4 autonomous mobility solutions. 

Tesla (TSLA - Free Report) is another key player in this space, which applies physical AI primarily through autonomous vehicles and mobility services, in addition to humanoid robotics. The company’s Cybercab is a purpose-built, driverless autonomous vehicle designed from the ground up without steering wheels or pedals, built specifically to run on Tesla’s physical AI driving models. 

On the other hand, ABB (ABBNY - Free Report) applies physical AI — what it calls Autonomous Versatile Robotics (AVR) — to transform how industrial robots learn, adapt and operate in the real world. The company has partnered with NVIDIA to integrate Omniverse libraries into its RobotStudio software to create photorealistic, physics-accurate digital twins that close the "sim-to-real gap" in industrial robotics, with up to 99% accuracy, making physical AI deployable at scale. 

Using AI-based learning models, including Vision-Language-Action models, the software enables robots to learn demonstrated tasks in simulation and validate their behavior across multiple virtual scenarios, reducing reliance on physical prototypes and on-site testing.

Regal Rexnord (RRX - Free Report) , another key player in this space, is expanding into physical AI and smart automation by supplying precision motion control, industrial powertrain components, and collaborative robotics that bridge digital software with physical machinery. The company joined forces with ABB Robotics to simplify integration of its GoFa cobots into 7th Axis Cobot Transfer Units (CTUs) from Thomson, one of Regal Rexnord’s leading linear motion brands. 

Extent of the Transformation and the ETF PlaybookThe transition to physical AI is not happening in isolation — it is an industry-wide overhaul spanning hardware components, software platforms and domain-specific robotics. According to a Markets and Markets projection, the industrial robotics segment within physical AI is projected to witness a staggering 56.7% CAGR through 2032, driven by widespread factory automation.

Because this physical AI transformation spans multiple industry players — from pure-play chipmakers like NVIDIA and EV/autonomy innovators like Tesla, to industrial automation leaders like ABB and motion control suppliers like Regal Rexnord — picking individual winners can be challenging in a rapidly evolving market. 

Exchange-Traded Funds (ETFs) provide diversified exposure across this entire value chain, capturing both the high-growth software and hardware enablers alongside traditional industrial manufacturers. This thematic approach should help mitigate single-stock volatility while allowing investors to participate in the broader, long-term physical AI megatrend.

Physical AI ETFs to GrabConsidering the aforementioned discussion, investors interested to capitalize on the growing trends of physical AI and robotics may add the following ETFs to their portfolios:

WisdomTree Physical AI, Humanoids, and Drones Fund (WDRN - Free Report)  

This fund, with net assets worth $17.3 million, offers exposure to companies enabling and deploying Physical AI across robotics, drones, and automation, capturing the transition from digital intelligence to real-world machine action and industrial transformation. NVDA holds the first spot in this fund, with 5.84% weight, while TSLA holds the second position with 5.64% weight. 

WDRN charges 45 basis points (bps) in fees. 

KraneShares Global Humanoid Robotics and Physical AI Index ETF (KOID - Free Report)  

This fund, with net assets worth $345.1 million, offers exposure to companies engaged in humanoid and embodied intelligence-related business. RRX holds the first spot in this fund, with 2.25% weight. 

KOID charges 69 bps in fees. 

Global X Robotics & Artificial Intelligence ETF (BOTZ - Free Report)

This fund, with net assets worth $3.29 billion, offers exposure to companies positioned to benefit from the growing adoption and utilization of robotics and artificial intelligence. NVDA holds the fourth spot in this fund, with 8.07% weight, while ABBNY holds the fifth position with 7.96% weight. 

BOTZ charges 68 bps in fees. 

The $5.5tn (£4.1tn) US chipmaker Nvidia is donating $250m worth of computing power to the UK to support AI safety research.

The donation from the world’s most valuable company comes as the UK government confirmed its AI Security Institute, which tests advance AI models, will be able to examine cutting-edge technology developed by companies such as OpenAI, Anthropic and Google before they are released.

Nvidia said the donation, which spans five years, would “support agentic safety and security research across the UK”.

Safety concerns about AI agents – highly capable computer programs that are able to design and perform sequences of tasks autonomously – have risen since the summer, when OpenAI confirmed that a “swarm” of agents had attacked Hugging Face, a tech startup.

Nvidia did not reference AISI in its statement but said most of the money would “support the wider UK AI safety and security research community”, with a proportion of the cash going to the -led British Open-Ended Learning and Discovery Lab, the Science of Fundamental AI Research Lab – run by the Edinburgh, Cambridge, Oxford and University College London universities – and Imperial College London.

“The UK brings world-class scientific rigour to this essential engineering challenge,” said Jensen Huang, Nvidia’s chief executive. “With this $250m commitment, Nvidia will put accelerated computing in the hands of UK researchers to develop, test and strengthen safeguards for increasingly powerful AI.”

Kanishka Narayan, the UK’s AI minister, said the announcement was a “vote of confidence in our world-leading strength and expertise in AI research”.

AMD just posted record Data Center revenue and claims its Helios racks deliver cheaper tokens than anything NVIDIA sells.

SAN FRANCISCO--(BUSINESS WIRE)--vCluster Labs, the platform operators use to build and run their own AI clouds, today announced managed NVIDIA Run:ai clusters built on the newly open-source NVIDIA Run:ai platform. NVIDIA Run:ai is the AI workload and GPU orchestration platform within NVIDIA DSX OS, the open, modular software portfolio of the NVIDIA DSX AI Factory Platform.The open-source release enables vCluster Labs to integrate NVIDIA Run:ai more directly into the vCluster platform, giving cus.

US-chipmaker Nvidia (NVDA.O) said ​on Wednesday it ‌would donate computing resources ​valued at $250 ​million over five years ⁠to ​support agentic AI ​safety and security research in the ​United ​Kingdom.

The commitment provides $50 million ‌in ⁠compute access annually, with a portion ​going ​to ⁠Oxford-led lab BOLD, ​UCL-led SOFAIR ​and ⁠Imperial College London.